    [United States Statutes at Large, Volume 128, 113th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 113-295
    113th Congress

    An Act

    To amend the Internal Revenue Code of 1986 to extend certain expiring
    provisions and make technical corrections, to amend the Internal Revenue
    Code of 1986 to provide for the tax treatment of ABLE accounts
    established under State programs for the care of family members with
    disabilities, and for other purposes. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,

    DIVISION A-- <> TAX INCREASE
    PREVENTION ACT OF 2014
    SECTION 1. SHORT TITLE, ETC.

    (a) <>  Short Title.--This division may be
    cited as the ``Tax Increase Prevention Act of 2014''.

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

    DIVISION A--TAX INCREASE PREVENTION ACT OF 2014

    Sec. 1. Short title, etc.

    TITLE I--CERTAIN EXPIRING PROVISIONS

    Subtitle A--Individual Tax Extenders

    Sec. 101. Extension of deduction for certain expenses of elementary and
    secondary school teachers.
    Sec. 102. Extension of exclusion from gross income of discharge of
    qualified principal residence indebtedness.
    Sec. 103. Extension of parity for employer-provided mass transit and
    parking benefits.
    Sec. 104. Extension of mortgage insurance premiums treated as qualified
    residence interest.
    Sec. 105. Extension of deduction of State and local general sales taxes.
    Sec. 106. Extension of special rule for contributions of capital gain
    real property made for conservation purposes.
    Sec. 107. Extension of above-the-line deduction for qualified tuition
    and related expenses.
    Sec. 108. Extension of tax-free distributions from individual retirement
    plans for charitable purposes.

    Subtitle B--Business Tax Extenders

    Sec. 111. Extension of research credit.
    Sec. 112. Extension of temporary minimum low-income housing tax credit
    rate for non-federally subsidized buildings.
    Sec. 113. Extension of military housing allowance exclusion for
    determining whether a tenant in certain counties is low-
    income.

    [[Page 4011]]

    Sec. 114. Extension of Indian employment tax credit.
    Sec. 115. Extension of new markets tax credit.
    Sec. 116. Extension of railroad track maintenance credit.
    Sec. 117. Extension of mine rescue team training credit.
    Sec. 118. Extension of employer wage credit for employees who are active
    duty members of the uniformed services.
    Sec. 119. Extension of work opportunity tax credit.
    Sec. 120. Extension of qualified zone academy bonds.
    Sec. 121. Extension of classification of certain race horses as 3-year
    property.
    Sec. 122. Extension of 15-year straight-line cost recovery for qualified
    leasehold improvements, qualified restaurant buildings and
    improvements, and qualified retail improvements.
    Sec. 123. Extension of 7-year recovery period for motorsports
    entertainment complexes.
    Sec. 124. Extension of accelerated depreciation for business property on
    an Indian reservation.
    Sec. 125. Extension of bonus depreciation.
    Sec. 126. Extension of enhanced charitable deduction for contributions
    of food inventory.
    Sec. 127. Extension of increased expensing limitations and treatment of
    certain real property as section 179 property.
    Sec. 128. Extension of election to expense mine safety equipment.
    Sec. 129. Extension of special expensing rules for certain film and
    television productions.
    Sec. 130. Extension of deduction allowable with respect to income
    attributable to domestic production activities in Puerto
    Rico.
    Sec. 131. Extension of modification of tax treatment of certain payments
    to controlling exempt organizations.
    Sec. 132. Extension of treatment of certain dividends of regulated
    investment companies.
    Sec. 133. Extension of RIC qualified investment entity treatment under
    FIRPTA.
    Sec. 134. Extension of subpart F exception for active financing income.
    Sec. 135. Extension of look-thru treatment of payments between related
    controlled foreign corporations under foreign personal
    holding company rules.
    Sec. 136. Extension of temporary exclusion of 100 percent of gain on
    certain small business stock.
    Sec. 137. Extension of basis adjustment to stock of S corporations
    making charitable contributions of property.
    Sec. 138. Extension of reduction in S-corporation recognition period for
    built-in gains tax.
    Sec. 139. Extension of empowerment zone tax incentives.
    Sec. 140. Extension of temporary increase in limit on cover over of rum
    excise taxes to Puerto Rico and the Virgin Islands.
    Sec. 141. Extension of American Samoa economic development credit.

    Subtitle C--Energy Tax Extenders

    Sec. 151. Extension of credit for nonbusiness energy property.
    Sec. 152. Extension of second generation biofuel producer credit.
    Sec. 153. Extension of incentives for biodiesel and renewable diesel.
    Sec. 154. Extension of production credit for Indian coal facilities
    placed in service before 2009.
    Sec. 155. Extension of credits with respect to facilities producing
    energy from certain renewable resources.
    Sec. 156. Extension of credit for energy-efficient new homes.
    Sec. 157. Extension of special allowance for second generation biofuel
    plant property.
    Sec. 158. Extension of energy efficient commercial buildings deduction.
    Sec. 159. Extension of special rule for sales or dispositions to
    implement FERC or State electric restructuring policy for
    qualified electric utilities.
    Sec. 160. Extension of excise tax credits relating to certain fuels.
    Sec. 161. Extension of credit for alternative fuel vehicle refueling
    property.

    Subtitle D--Extenders Relating to Multiemployer Defined Benefit Pension
    Plans

    Sec. 171. Extension of automatic extension of amortization periods.
    Sec. 172. Extension of shortfall funding method and endangered and
    critical rules.

    TITLE II--TECHNICAL CORRECTIONS

    Sec. 201. Short title.
    Sec. 202. Amendments relating to American Taxpayer Relief Act of 2012.
    Sec. 203. Amendment relating to Middle Class Tax Relief and Job Creation
    Act of 2012.

    [[Page 4012]]

    Sec. 204. Amendment relating to FAA Modernization and Reform Act of
    2012.
    Sec. 205. Amendments relating to Regulated Investment Company
    Modernization Act of 2010.
    Sec. 206. Amendments relating to Tax Relief, Unemployment Insurance
    Reauthorization, and Job Creation Act of 2010.
    Sec. 207. Amendments relating to Creating Small Business Jobs Act of
    2010.
    Sec. 208. Clerical amendment relating to Hiring Incentives to Restore
    Employment Act.
    Sec. 209. Amendments relating to American Recovery and Reinvestment Tax
    Act of 2009.
    Sec. 210. Amendments relating to Energy Improvement and Extension Act of
    2008.
    Sec. 211. Amendments relating to Tax Extenders and Alternative Minimum
    Tax Relief Act of 2008.
    Sec. 212. Clerical amendments relating to Housing Assistance Tax Act of
    2008.
    Sec. 213. Amendments and provision relating to Heroes Earnings
    Assistance and Relief Tax Act of 2008.
    Sec. 214. Amendments relating to Economic Stimulus Act of 2008.
    Sec. 215. Amendments relating to Tax Technical Corrections Act of 2007.
    Sec. 216. Amendment relating to Tax Relief and Health Care Act of 2006.
    Sec. 217. Amendment relating to Safe, Accountable, Flexible, Efficient
    Transportation Equity Act of 2005: A Legacy for Users.
    Sec. 218. Amendments relating to Energy Tax Incentives Act of 2005.
    Sec. 219. Amendments relating to American Jobs Creation Act of 2004.
    Sec. 220. Other clerical corrections.
    Sec. 221. Deadwood provisions.

    TITLE III--JOINT COMMITTEE ON TAXATION

    Sec. 301. Increased refund and credit threshold for Joint Committee on
    Taxation review of C corporation return.

    TITLE IV--BUDGETARY EFFECTS

    Sec. 401. Budgetary effects.

    DIVISION B--ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014

    Sec. 1. Short title; etc.

    TITLE I--QUALIFIED ABLE PROGRAMS

    Sec. 101. Purposes.
    Sec. 102. Qualified ABLE programs.
    Sec. 103. Treatment of ABLE accounts under certain Federal programs.
    Sec. 104. Treatment of ABLE accounts in bankruptcy.
    Sec. 105. Investment direction rule for 529 plans.

    TITLE II--OFFSETS

    Sec. 201. Correction to workers compensation offset age.
    Sec. 202. Accelerated application of relative value targets for
    misvalued services in the Medicare physician fee schedule.
    Sec. 203. Consistent treatment of vacuum erection systems in Medicare
    Parts B and D.
    Sec. 204. One-year delay of implementation of oral-only policy under
    Medicare ESRD prospective payment system.
    Sec. 205. Modification relating to Inland Waterways Trust Fund financing
    rate.
    Sec. 206. Certified professional employer organizations.
    Sec. 207. Exclusion of dividends from controlled foreign corporations
    from the definition of personal holding company income for
    purposes of the personal holding company rules.
    Sec. 208. Inflation adjustment for certain civil penalties under the
    Internal Revenue Code of 1986.
    Sec. 209. Increase in continuous levy.

    TITLE I--CERTAIN EXPIRING PROVISIONS

    Subtitle A--Individual Tax Extenders

    SEC. 101. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF
    ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) <>  is amended by striking ``or 2013'' and inserting ``2013, or
    2014''.

    [[Page 4013]]

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 102. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF
    QUALIFIED PRINCIPAL RESIDENCE
    INDEBTEDNESS.

    (a) In General.--Subparagraph (E) of section 108(a)(1) <>  is amended by striking ``January 1, 2014'' and inserting
    ``January 1, 2015''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to indebtedness discharged after December
    31, 2013.
    SEC. 103. EXTENSION OF PARITY FOR EMPLOYER-PROVIDED MASS TRANSIT
    AND PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to months after December 31, 2013.
    SEC. 104. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS
    QUALIFIED RESIDENCE INTEREST.

    (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) is
    amended by striking ``December 31, 2013'' and inserting ``December 31,
    2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to amounts paid or accrued after December
    31, 2013.
    SEC. 105. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL SALES
    TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 106. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAPITAL
    GAIN REAL PROPERTY MADE FOR CONSERVATION
    PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--Clause
    (iii) of section 170(b)(2)(B) is amended by striking ``December 31,
    2013'' and inserting ``December 31, 2014''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to contributions made in taxable years
    beginning after December 31, 2013.
    SEC. 107. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED
    TUITION AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 108. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL
    RETIREMENT PLANS FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.

    [[Page 4014]]

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to distributions made in taxable years
    beginning after December 31, 2013.

    Subtitle B--Business Tax Extenders

    SEC. 111. EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Paragraph (1) of section 41(h) <>  is amended by striking ``paid or incurred'' and all that follows
    and inserting ``paid or incurred after December 31, 2014.''.

    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is
    amended to read as follows:
    ``(D) Special rule.--If section 41 is not in effect
    for any period, such section shall be deemed to remain
    in effect for such period for purposes of this
    paragraph.''.

    (c) <>  Effective Date.--The amendments made
    by this section shall apply to amounts paid or incurred after December
    31, 2013.
    SEC. 112. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME HOUSING TAX
    CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED
    BUILDINGS.

    (a) In General.--Subparagraph (A) of section 42(b)(2) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall take effect on January 1, 2014.
    SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE EXCLUSION FOR
    DETERMINING WHETHER A TENANT IN CERTAIN
    COUNTIES IS LOW-INCOME.

    (a) In General.--Subsection (b) of section 3005 of the Housing
    Assistance Tax Act of 2008 <>  is amended by
    striking ``January 1, 2014'' each place it appears and inserting
    ``January 1, 2015''.

    (b) <>  Effective Date.--The amendment made
    by this section shall take effect as if included in the enactment of
    section 3005 of the Housing Assistance Tax Act of 2008.
    SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2013.
    SEC. 115. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) is amended by
    striking ``and 2013'' and inserting ``2013, and 2014''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 45D(f)
    is amended by striking ``2018'' and inserting ``2019''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to calendar years beginning after December
    31, 2013.
    SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to expenditures paid or incurred in taxable
    years beginning after December 31, 2013.

    [[Page 4015]]

    SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N <>  is amended by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 118. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE
    ACTIVE DUTY MEMBERS OF THE UNIFORMED
    SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made by
    this section shall apply to payments made after December 31, 2013.
    SEC. 119. EXTENSION 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 December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to individuals who begin work for the
    employer after December 31, 2013.
    SEC. 120. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Extension.--Paragraph (1) of section 54E(c) is amended by
    striking ``and 2013'' and inserting ``2013, and 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to obligations issued after December 31,
    2013.
    SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES AS 3-
    YEAR PROPERTY.

    (a) In General.--Clause (i) of section 168(e)(3)(A) is amended--
    (1) by striking ``January 1, 2014'' in subclause (I) and
    inserting ``January 1, 2015'', and
    (2) by striking ``December 31, 2013'' in subclause (II) and
    inserting ``December 31, 2014''.

    (b) <>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR
    QUALIFIED LEASEHOLD IMPROVEMENTS,
    QUALIFIED RESTAURANT BUILDINGS AND
    IMPROVEMENTS, AND QUALIFIED RETAIL
    IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 168(e)(3)(E)
    are each amended by striking ``January 1, 2014'' and inserting ``January
    1, 2015''.
    (b) <>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS
    ENTERTAINMENT COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended
    by striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.

    [[Page 4016]]

    SEC. 124. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS
    PROPERTY ON AN INDIAN RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) <>  is amended by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 125. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
    (1) by striking ``January 1, 2015'' in subparagraph (A)(iv)
    and inserting ``January 1, 2016'', and
    (2) by striking ``January 1, 2014'' each place it appears
    and inserting ``January 1, 2015''.

    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of
    section 460(c)(6)(B) is amended by striking ``January 1, 2014 (January
    1, 2015'' and inserting ``January 1, 2015 (January 1, 2016''.
    (c) Extension of Election To Accelerate the AMT Credit in Lieu of
    Bonus Depreciation.--
    (1) In general.--Subclause (II) of section 168(k)(4)(D)(iii)
    is amended by striking ``January 1, 2014'' and inserting
    ``January 1, 2015''.
    (2) Round 4 extension property.--Paragraph (4) of section
    168(k) is amended by adding at the end the following new
    subparagraph:
    ``(K) Special rules for round 4 extension
    property.--
    ``(i) In general.--In the case of round 4
    extension property, in applying this paragraph to
    any taxpayer--
    ``(I) the limitation described in
    subparagraph (B)(i) and the business
    credit increase amount under
    subparagraph (E)(iii) thereof shall not
    apply, and
    ``(II) the bonus depreciation
    amount, maximum amount, and maximum
    increase amount shall be computed
    separately from amounts computed with
    respect to eligible qualified property
    which is not round 4 extension property.
    ``(ii) Election.--
    ``(I) A taxpayer who has an election
    in effect under this paragraph for round
    3 extension property shall be treated as
    having an election in effect for round 4
    extension property unless the taxpayer
    elects to not have this paragraph apply
    to round 4 extension property.
    ``(II) A taxpayer who does not have
    an election in effect under this
    paragraph for round 3 extension property
    may elect to have this paragraph apply
    to round 4 extension property.
    ``(iii) Round 4 extension property.--For
    purposes of this subparagraph, the term `round 4
    extension property' means property which is
    eligible qualified property solely by reason of
    the extension of the application of the special
    allowance under paragraph (1) pursuant to the
    amendments made by section 125(a) of the Tax
    Increase Prevention Act of 2014 (and the
    application

    [[Page 4017]]

    of such extension to this paragraph pursuant to
    the amendment made by section 125(c) of such
    Act).''.

    (d) Conforming Amendments.--
    (1) The heading for subsection (k) of section 168 <>  is amended by striking ``January 1, 2014'' and
    inserting ``January 1, 2015''.
    (2) The heading for clause (ii) of section 168(k)(2)(B) is
    amended by striking ``pre-january 1, 2014'' and inserting ``pre-
    january 1, 2015''.
    (3) Subparagraph (C) of section 168(n)(2) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (4) Subparagraph (D) of section 1400L(b)(2) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (5) Subparagraph (B) of section 1400N(d)(3) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.

    (e) <>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after December
    31, 2013, in taxable years ending after such date.
    SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
    CONTRIBUTIONS OF FOOD INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to contributions made after December 31,
    2013.
    SEC. 127. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND
    TREATMENT OF CERTAIN REAL PROPERTY AS
    SECTION 179 PROPERTY.

    (a) In General.--
    (1) Dollar limitation.--Section 179(b)(1) is amended--
    (A) by striking ``beginning in 2010, 2011, 2012, or
    2013'' in subparagraph (B) and inserting ``beginning
    after 2009 and before 2015'', and
    (B) by striking ``2013'' in subparagraph (C) and
    inserting ``2014''.
    (2) Reduction in limitation.--Section 179(b)(2) is amended--
    (A) by striking ``beginning in 2010, 2011, 2012, or
    2013'' in subparagraph (B) and inserting ``beginning
    after 2009 and before 2015'', and
    (B) by striking ``2013'' in subparagraph (C) and
    inserting ``2014''.

    (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by
    striking ``2014'' and inserting ``2015''.
    (c) Election.--Section 179(c)(2) is amended by striking ``2014'' and
    inserting ``2015''.
    (d) Special Rules for Treatment of Qualified Real Property.--
    (1) In general.--Section 179(f)(1) is amended by striking
    ``beginning in 2010, 2011, 2012, or 2013'' and inserting
    ``beginning after 2009 and before 2015''.
    (2) Carryover limitation.--
    (A) In general.--Section 179(f)(4) is amended by
    striking ``2013'' each place it appears and inserting
    ``2014''.
    (B) Conforming amendment.--The heading of
    subparagraph (C) of section 179(f)(4) is amended by
    striking ``2011 and 2012'' and inserting ``2011, 2012,
    and 2013''.

    [[Page 4018]]

    (e) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E <>  is amended by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM
    AND TELEVISION PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Dates.--The amendment made
    by this section shall apply to productions commencing after December 31,
    2013.
    SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
    ATTRIBUTABLE TO DOMESTIC PRODUCTION
    ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
    (1) by striking ``first 8 taxable years'' and inserting
    ``first 9 taxable years'', and
    (2) by striking ``January 1, 2014'' and inserting ``January
    1, 2015''.

    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 131. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CERTAIN
    PAYMENTS TO CONTROLLING EXEMPT
    ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to payments received or accrued after
    December 31, 2013.
    SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED
    INVESTMENT COMPANIES.

    (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of section
    871(k) are each amended by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.
    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2013.
    SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY TREATMENT
    UNDER FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--
    (1) In general.--The amendment made by this section shall
    take effect on January 1, 2014. Notwithstanding the preceding
    sentence, such amendment shall not apply with respect to the
    withholding requirement under section 1445 of the Internal
    Revenue Code of 1986 for any payment made before the date of the
    enactment of this Act.

    [[Page 4019]]

    (2) Amounts withheld on or before date of enactment.--In the
    case of a regulated investment company--
    (A) which makes a distribution after December 31,
    2013, and before the date of the enactment of this Act,
    and
    (B) which would (but for the second sentence of
    paragraph (1)) have been required to withhold with
    respect to such distribution under section 1445 of such
    Code,
    such investment company shall not be liable to any person to
    whom such distribution was made for any amount so withheld and
    paid over to the Secretary of the Treasury.
    SEC. 134. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE FINANCING
    INCOME.

    (a) Exempt Insurance Income.--Paragraph (10) of section
    953(e) <>  is amended--
    (1) by striking ``January 1, 2014'' and inserting ``January
    1, 2015'', and
    (2) by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.

    (b) Special Rule for Income Derived in the Active Conduct of
    Banking, Financing, or Similar Businesses.--Paragraph (9) of section
    954(h) is amended by striking ``January 1, 2014'' and inserting
    ``January 1, 2015''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years of foreign corporations
    beginning after December 31, 2013, and to taxable years of United States
    shareholders with or within which any such taxable year of such foreign
    corporation ends.
    SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS BETWEEN
    RELATED CONTROLLED FOREIGN CORPORATIONS
    UNDER FOREIGN PERSONAL HOLDING COMPANY
    RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years of foreign corporations
    beginning after December 31, 2013, and to taxable years of United States
    shareholders with or within which such taxable years of foreign
    corporations end.
    SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN
    ON CERTAIN SMALL BUSINESS STOCK.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
    (1) by striking ``January 1, 2014'' and inserting ``January
    1, 2015'', and
    (2) by striking ``and 2013'' in the heading and inserting
    ``2013, and 2014''.

    (b) <>  Effective Date.--The amendments
    made by this section shall apply to stock acquired after December 31,
    2013.
    SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS
    MAKING CHARITABLE CONTRIBUTIONS OF
    PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.

    [[Page 4020]]

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to contributions made in taxable years
    beginning after December 31, 2013.
    SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION
    PERIOD FOR BUILT-IN GAINS TAX.

    (a) In General.--Subparagraph (C) of section 1374(d)(7) <>  is amended--
    (1) by striking ``2012 or 2013'' and inserting ``2012, 2013,
    or 2014'', and
    (2) by striking ``2012 and 2013'' in the heading and
    inserting ``2012, 2013, and 2014''.

    (b) <>  Effective Date.--The amendments
    made by this section shall apply to taxable years beginning after
    December 31, 2013.
    SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Treatment of Certain Termination
    Dates Specified in Nominations.--In the case of a designation of an
    empowerment zone the nomination for which included a termination date
    which is contemporaneous with the date specified in subparagraph (A)(i)
    of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect
    before the enactment of this Act), subparagraph (B) of such section
    shall not apply with respect to such designation if, after the date of
    the enactment of this section, the entity which made such nomination
    amends the nomination to provide for a new termination date in such
    manner as the Secretary of the Treasury (or the Secretary's designee)
    may provide.

    (c) <>  Effective Dates.--The amendment
    made by this section shall apply to periods after December 31, 2013.
    SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER OVER
    OF RUM EXCISE TAXES TO PUERTO RICO AND THE
    VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to distilled spirits brought into the United
    States after December 31, 2013.
    SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Subsection (d) of section 119 of division A of the
    Tax Relief and Health Care Act of 2006 <>  is
    amended--
    (1) by striking ``January 1, 2014'' each place it appears
    and inserting ``January 1, 2015'',
    (2) by striking ``first 8 taxable years'' in paragraph (1)
    and inserting ``first 9 taxable years'', and
    (3) by striking ``first 2 taxable years'' in paragraph (2)
    and inserting ``first 3 taxable years''.

    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2013.

    [[Page 4021]]

    Subtitle C--Energy Tax Extenders

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

    (a) In General.--Paragraph (2) of section 25C(g) <>  is amended by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 152. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to qualified second generation biofuel
    production after December 31, 2013.
    SEC. 153. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE
    DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
    Subsection (g) of section 40A is amended by striking ``December 31,
    2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to fuel sold or used after December 31,
    2013.
    SEC. 154. EXTENSION OF PRODUCTION CREDIT FOR INDIAN COAL
    FACILITIES PLACED IN SERVICE BEFORE 2009.

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended by
    striking ``8-year period'' each place it appears and inserting ``9-year
    period''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to coal produced after December 31, 2013.
    SEC. 155. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES
    PRODUCING ENERGY FROM CERTAIN RENEWABLE
    RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each
    amended by striking ``January 1, 2014'' each place it appears and
    inserting ``January 1, 2015'':
    (1) Paragraph (1).
    (2) Paragraph (2)(A).
    (3) Paragraph (3)(A).
    (4) Paragraph (4)(B).
    (5) Paragraph (6).
    (6) Paragraph (7).
    (7) Paragraph (9).
    (8) Paragraph (11)(B).

    (b) Extension of Election to Treat Qualified Facilities as Energy
    Property.--Clause (ii) of section 48(a)(5)(C) is amended by striking
    ``January 1, 2014'' and inserting ``January 1, 2015''.
    (c) <>  Effective Dates.--The amendments made
    by this section shall take effect on January 1, 2014.
    SEC. 156. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.

    [[Page 4022]]

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to homes acquired after December 31, 2013.
    SEC. 157. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERATION
    BIOFUEL PLANT PROPERTY.

    (a) In General.--Subparagraph (D) of section 168(l)(2) <>  is amended by striking ``January 1, 2014'' and inserting
    ``January 1, 2015''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 158. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
    DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by
    striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.
    SEC. 159. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO
    IMPLEMENT FERC OR STATE ELECTRIC
    RESTRUCTURING POLICY FOR QUALIFIED
    ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by
    striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to dispositions after December 31, 2013.
    SEC. 160. EXTENSION OF EXCISE TAX CREDITS RELATING TO CERTAIN
    FUELS.

    (a) Excise Tax Credits and Outlay Payments for Biodiesel and
    Renewable Diesel Fuel Mixtures.--
    (1) Paragraph (6) of section 6426(c) is amended by striking
    ``December 31, 2013'' and inserting ``December 31, 2014''.
    (2) Subparagraph (B) of section 6427(e)(6) is amended by
    striking ``December 31, 2013'' and inserting ``December 31,
    2014''.

    (b) Extension of Alternative Fuels Excise Tax Credits.--
    (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are each
    amended by striking ``December 31, 2013'' and inserting
    ``December 31, 2014''.
    (2) Outlay payments for alternative fuels.--Subparagraph (C)
    of section 6427(e)(6) is amended by striking ``December 31,
    2013'' and inserting ``December 31, 2014''.

    (c) Extension of Alternative Fuels Excise Tax Credits Relating to
    Liquefied Hydrogen.--
    (1) In general.--Sections 6426(d)(5) and 6426(e)(3), as
    amended by subsection (b), are each amended by striking
    ``(September 30, 2014 in the case of any sale or use involving
    liquefied hydrogen)''.
    (2) Outlay payments for alternative fuels.--Paragraph (6) of
    section 6427(e) is amended--
    (A) by striking ``except as provided in subparagraph
    (D), any'' in subparagraph (C), as amended by this Act,
    and inserting ``any'',
    (B) by striking the comma at the end of subparagraph
    (C) and inserting ``, and'', and
    (C) by striking subparagraph (D) and redesignating
    subparagraph (E) as subparagraph (D).

    (d) <>  Effective Dates.--

    [[Page 4023]]

    (1) In general.--Except as provided in paragraph (2), the
    amendments made by this section shall apply to fuel sold or used
    after December 31, 2013.
    (2) Liquefied hydrogen.--The amendments made by subsection
    (c) shall apply to fuel sold or used after September 30, 2014.

    (e) <>  Special Rule for Certain Periods
    During 2014.--Notwithstanding any other provision of law, in the case
    of--
    (1) any biodiesel mixture credit properly determined under
    section 6426(c) of the Internal Revenue Code of 1986 for periods
    after December 31, 2013, and before the date of the enactment of
    this Act, and
    (2) <>  any alternative fuel
    credit properly determined under section 6426(d) of such Code
    for such periods,

    such credit shall be allowed, and any refund or payment attributable to
    such credit (including any payment under section 6427(e) of such Code)
    shall be made, only in such manner as the Secretary of the Treasury (or
    the Secretary's delegate) shall provide. <>  Such
    Secretary shall issue guidance within 30 days after the date of the
    enactment of this Act providing for a one-time submission of claims
    covering periods described in the preceding sentence. Such guidance
    shall provide for a 180-day period for the submission of such claims (in
    such manner as prescribed by such Secretary) to begin not later than 30
    days after such guidance is issued. Such claims shall be paid by such
    Secretary not later than 60 days after receipt. If such Secretary has
    not paid pursuant to a claim filed under this subsection within 60 days
    after the date of the filing of such claim, the claim shall be paid with
    interest from such date determined by using the overpayment rate and
    method under section 6621 of such Code.
    SEC. 161. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE
    REFUELING PROPERTY.

    (a) In General.--Subsection (g) of section 30C <>  is amended by striking ``placed in service'' and all that
    follows and inserting ``placed in service after December 31, 2014.''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2013.

    Subtitle D--Extenders Relating to Multiemployer Defined Benefit Pension
    Plans

    SEC. 171. EXTENSION OF AUTOMATIC EXTENSION OF AMORTIZATION
    PERIODS.

    (a) In General.--Subparagraph (C) of section 431(d)(1) is amended by
    striking ``December 31, 2014'' and inserting ``December 31, 2015''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
    Subparagraph (C) of section 304(d)(1) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1084(d)(1)(C)) is amended by striking
    ``December 31, 2014'' and inserting ``December 31, 2015''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to applications submitted under section
    431(d)(1)(A) of the Internal Revenue Code of 1986 and section
    304(d)(1)(C)

    [[Page 4024]]

    of the Employee Retirement Income Security Act of 1974 after December
    31, 2014.
    SEC. 172. EXTENSION OF SHORTFALL FUNDING METHOD AND ENDANGERED AND
    CRITICAL RULES.

    (a) In General.--Paragraphs (1) and (2) of section 221(c) of the
    Pension Protection Act of 2006 <>  are each
    amended by striking ``December 31, 2014'' and inserting ``December 31,
    2015''.

    (b) Conforming Amendment.--Paragraph (2) of section 221(c) of the
    Pension Protection Act of 2006 is amended by striking ``January 1,
    2015'' and inserting ``January 1, 2016''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to plan years beginning after December 31,
    2014.

    TITLE II-- <> TECHNICAL
    CORRECTIONS
    SEC. <>  201. SHORT TITLE.

    This title may be cited as the ``Tax Technical Corrections Act of
    2014''.
    SEC. 202. AMENDMENTS RELATING TO AMERICAN TAXPAYER RELIEF ACT OF
    2012.

    (a) Amendment Relating to Section 101(b).--Subclause (I) of section
    642(b)(2)(C)(i) <>  is amended by striking ``section
    151(d)(3)(C)(iii)'' and inserting ``section 68(b)(1)(C)''.

    (b) Amendment Relating to Section 102.--Clause (ii) of section
    911(f)(2)(B) is amended by striking ``described in section 1(h)(1)(B)
    shall be treated as a reference to such excess as determined'' and
    inserting ``described in section 1(h)(1)(B), and the reference in
    section 55(b)(3)(C)(ii) to the excess described in section
    1(h)(1)(C)(ii), shall each be treated as a reference to each such excess
    as determined''.
    (c) Amendments Relating to Section 104.--
    (1) Clause (ii) of section 55(d)(4)(B) is amended by
    inserting ``subparagraphs (A), (B), and (D) of'' before
    ``paragraph (1)''.
    (2) Subparagraph (C) of section 55(d)(4) is amended by
    striking ``increase'' and inserting ``increased amount''.

    (d) Amendments Relating to Section 310.--Clause (iii) of section
    6431(f)(3)(A) is amended--
    (1) by striking ``2011'' and inserting ``years after 2010'',
    and
    (2) by striking ``of such allocation'' and inserting ``of
    any such allocation''.

    (e) Amendment Relating to Section 331.--Clause (iii) of section
    168(k)(4)(J) is amended by striking ``any taxable year'' and inserting
    ``its first taxable year''.
    (f) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provision of the
    American Taxpayer Relief Act of 2012 to which they relate.
    SEC. 203. AMENDMENT RELATING TO MIDDLE CLASS TAX RELIEF AND JOB
    CREATION ACT OF 2012.

    (a) Amendment Relating to Section 7001.--Paragraph (1) of section
    7001 of the Middle Class Tax Relief and Job Creation Act of
    2012 <>  is amended by striking ``201(b)'' and
    inserting ``202(b)''.

    [[Page 4025]]

    (b) Effective Date.--The amendment <>  made
    by subsection (a) shall take effect as if included in section 7001 of
    the Middle Class Tax Relief and Job Creation Act of 2012.
    SEC. 204. AMENDMENT RELATING TO FAA MODERNIZATION AND REFORM ACT
    OF 2012.

    (a) Amendment Relating to Section 1107.--Section 4281 <>  is amended to read as follows:
    ``SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES.

    ``(a) In General.--The taxes imposed by sections 4261 and 4271 shall
    not apply to transportation by an aircraft having a maximum certificated
    takeoff weight of 6,000 pounds or less, except when such aircraft is
    operated on an established line or when such aircraft is a jet aircraft.
    ``(b) <>  Maximum Certificated Takeoff Weight.--
    For purposes of this section, the term `maximum certificated takeoff
    weight' means the maximum such weight contained in the type certificate
    or airworthiness certificate.

    ``(c) Sightseeing.--For purposes of this section, an aircraft shall
    not be considered as operated on an established line at any time during
    which such aircraft is being operated on a flight the sole purpose of
    which is sightseeing.
    ``(d) Jet Aircraft.--For purposes of this section, the term `jet
    aircraft' shall not include any aircraft which is a rotorcraft or
    propeller aircraft.''.
    (b) <>  Effective Date.--The amendment made
    by subsection (a) shall take effect as if included in section 1107 of
    the FAA Modernization and Reform Act of 2012.
    SEC. 205. AMENDMENTS RELATING TO REGULATED INVESTMENT COMPANY
    MODERNIZATION ACT OF 2010.

    (a) Amendments Relating to Section 101.--
    (1) Subsection (c) of section 101 of the Regulated
    Investment Company Modernization Act of 2010 <>  is amended--
    (A) by striking ``paragraph (2)'' in paragraph (1)
    and inserting ``paragraphs (2) and (3)'', and
    (B) by adding at the end the following new
    paragraph:
    ``(3) Excise tax.--
    ``(A) <>  In
    general.--Except as provided in subparagraph (B), for
    purposes of section 4982 of the Internal Revenue Code of
    1986, paragraphs (1) and (2) shall apply by substituting
    `the 1-year periods taken into account under subsection
    (b)(1)(B) of such section with respect to calendar years
    beginning after December 31, 2010' for `taxable years
    beginning after the date of the enactment of this Act'.
    ``(B) Election.--A regulated investment company may
    elect to apply subparagraph (A) by substituting `2011'
    for `2010'. Such election shall be made at such time and
    in such form and manner as the Secretary of the Treasury
    (or the Secretary's delegate) shall prescribe.''.
    (2) The first sentence of paragraph (2) of section 852(c) is
    amended--
    (A) by striking ``and without regard to'' and
    inserting ``, without regard to'', and
    (B) by inserting ``, and without regard to any
    capital loss arising on the first day of the taxable
    year by reason

    [[Page 4026]]

    of clauses (ii) and (iii) of section 1212(a)(3)(A)''
    before the period at the end.

    (b) Amendment Relating to Section 304.--Paragraph (1) of section
    855(a) <>  is amended by inserting ``on or'' before
    ``before''.

    (c) Amendments Relating to Section 308.--
    (1) <>  Paragraph (8) of section 852(b)
    is amended by redesignating subparagraph (E) as subparagraph (G)
    and by striking subparagraphs (C) and (D) and inserting the
    following new subparagraphs:
    ``(C) Post-october capital loss.--For purposes of
    this paragraph, the term `post-October capital loss'
    means--
    ``(i) any net capital loss attributable to the
    portion of the taxable year after October 31, or
    ``(ii) if there is no such loss--
    ``(I) any net long-term capital loss
    attributable to such portion of the
    taxable year, or
    ``(II) any net short-term capital
    loss attributable to such portion of the
    taxable year.
    ``(D) Late-year ordinary loss.--For purposes of this
    paragraph, the term `late-year ordinary loss' means the
    sum of any post-October specified loss and any post-
    December ordinary loss.
    ``(E) Post-october specified loss.--For purposes of
    this paragraph, the term `post-October specified loss'
    means the excess (if any) of--
    ``(i) the specified losses (as defined in
    section 4982(e)(5)(B)(ii)) attributable to the
    portion of the taxable year after October 31, over
    ``(ii) the specified gains (as defined in
    section 4982(e)(5)(B)(i)) attributable to such
    portion of the taxable year.
    ``(F) Post-december ordinary loss.--For purposes of
    this paragraph, the term `post-December ordinary loss'
    means the excess (if any) of--
    ``(i) the ordinary losses not described in
    subparagraph (E)(i) and attributable to the
    portion of the taxable year after December 31,
    over
    ``(ii) the ordinary income not described in
    subparagraph (E)(ii) and attributable to such
    portion of the taxable year.''.
    (2) Subparagraph (G) of section 852(b)(8), as so
    redesignated, is amended by striking ``, (D)(i)(I), and
    (D)(ii)(I)'' and inserting ``and (E)''.
    (3) The first sentence of paragraph (2) of section 852(c),
    as amended by subsection (a), is amended--
    (A) by striking ``, and without regard to'' and
    inserting ``, without regard to'', and
    (B) by inserting ``, and with such other adjustments
    as the Secretary may prescribe'' before the period at
    the end.

    (d) Amendments Relating to Section 402.--
    (1) Subparagraph (B) of section 4982(e)(6) is amended by
    inserting before the period at the end the following: ``or which
    determines income by reference to the value of an item on the
    last day of the taxable year''.
    (2) Subparagraph (A) of section 4982(e)(7) is amended by
    striking ``such company'' and all that follows through ``any

    [[Page 4027]]

    net ordinary loss'' and inserting ``such company may elect to
    determine its ordinary income and net ordinary loss (as defined
    in paragraph (2)(C)(ii)) for the calendar year without regard to
    any portion of any net ordinary loss''.

    (e) Clerical Amendment Relating to Section 201.--Subparagraph (A) of
    section 851(d)(2) <>  is amended by inserting ``of
    this paragraph'' after ``subparagraph (B)(i)''.

    (f) <>  Effective Date.--
    (1) In general.--Except as provided in paragraph (2), the
    amendments made by this section shall take effect as if included
    in the provision of the Regulated Investment Company
    Modernization Act of 2010 to which they relate.
    (2) Savings provision.--In the case of an election by a
    regulated investment company under section 852(b)(8) of the
    Internal Revenue Code of 1986 with respect to any taxable year
    beginning before the date of the enactment of this Act, such
    company may treat the amendments made by paragraphs (1) and (2)
    of subsection (c) as not applying with respect to any such
    election.
    SEC. 206. AMENDMENTS RELATING TO TAX RELIEF, UNEMPLOYMENT
    INSURANCE REAUTHORIZATION, AND JOB
    CREATION ACT OF 2010.

    (a) Amendment Relating to Section 103.--Clause (ii) of section
    32(b)(3)(B) is amended by striking ``in 2010'' and inserting ``after
    2009''.
    (b) Clerical Amendments Relating to Section 302.--
    (1) Paragraph (1) of section 2801(a) is amended by striking
    ``(or, if greater, the highest rate of tax specified in the
    table applicable under section 2502(a) as in effect on the
    date)''.
    (2) Subsection (f) of section 302 of the Tax Relief,
    Unemployment Insurance Reauthorization, and Job Creation Act of
    2010 <>  is amended by striking
    ``subsection'' and inserting ``section''.

    (c) Amendments Relating to Section 753.--Subparagraph (A) of section
    1397B(b)(1) is amended by striking ``and'' at the end of clause (ii), by
    striking the period at the end of clause (iii) and inserting ``, and'',
    and by adding at the end the following new clause:
    ``(iv) the day after the date set forth in
    section 1391(d)(1)(A)(i) were substituted for
    `January 1, 2010' each place it appears.''.

    (d) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation
    Act of 2010 to which they relate.
    SEC. 207. AMENDMENTS RELATING TO CREATING SMALL BUSINESS JOBS ACT
    OF 2010.

    (a) Amendments Relating to Section 2102.--
    (1) Subsection (h) of section 2102 of the Creating Small
    Business Jobs Act of 2010 <>  is
    amended by inserting ``, and payee statements required to be
    furnished,'' after ``information returns required to be filed''.
    (2) Paragraphs (1) and (2) of subsection (b), and subsection
    (c)(1)(C), of section 6722 are each amended by striking ``the
    required filing date'' and inserting ``the date prescribed for
    furnishing such statement''.

    [[Page 4028]]

    (3) Subparagraph (B) of section 6722(c)(2) <>  is amended by striking ``filed'' and inserting
    ``furnished''.

    (b) <>  Effective Date.--The amendments
    made by this section shall take effect as if included in the provision
    of the Creating Small Business Jobs Act of 2010 to which they relate.
    SEC. 208. CLERICAL AMENDMENT RELATING TO HIRING INCENTIVES TO
    RESTORE EMPLOYMENT ACT.

    (a) Amendment Relating to Section 512.--Paragraph (1) of section
    512(a) of the Hiring Incentives to Restore Employment Act <>  is amended by striking ``after paragraph (6)'' and inserting
    ``after paragraph (5)''.

    (b) <>  Effective Date.--The amendment made
    by this section shall take effect as if included in the provision of the
    Hiring Incentives to Restore Employment Act to which it relates.
    SEC. 209. AMENDMENTS RELATING TO AMERICAN RECOVERY AND
    REINVESTMENT TAX ACT OF 2009.

    (a) Amendment Relating to Section 1003.--Paragraph (4) of section
    24(d) is amended to read as follows:
    ``(4) <>  Special rule
    for certain years.--In the case of any taxable year beginning
    after 2008 and before 2018, paragraph (1)(B)(i) shall be applied
    by substituting `$3,000' for `$10,000'.''.

    (b) Amendment Relating to Section 1004.--Paragraph (3) of section
    25A(i) is amended by striking ``Subsection (f)(1)(A) shall be applied''
    and inserting ``For purposes of determining the Hope Scholarship Credit,
    subsection (f)(1)(A) shall be applied''.
    (c) Amendments Relating to Section 1008.--
    (1) Paragraph (6) of section 164(b) is amended by striking
    subparagraph (E) and by redesignating subparagraphs (F) and (G)
    as subparagraphs (E) and (F), respectively.
    (2) Subparagraphs (E) and (F) of section 164(b)(6), as so
    redesignated, are each amended by striking ``This paragraph''
    and inserting ``Subsection (a)(6)''.

    (d) Amendment Relating to Section 1104.--Subparagraph (A) of section
    48(d)(3) is amended by inserting ``or alternative minimum taxable
    income'' after ``includible in the gross income''.
    (e) Amendments Relating to Section 1141.--
    (1) Subsection (f) of section 30D is amended--
    (A) by inserting ``(determined without regard to
    subsection (c))'' before the period at the end of
    paragraph (1), and
    (B) by inserting ``(determined without regard to
    subsection (c))'' before the period at the end of
    paragraph (2).
    (2) Paragraph (3) of section 30D(f) is amended by adding at
    the end the following: ``For purposes of subsection (c),
    property to which this paragraph applies shall be treated as of
    a character subject to an allowance for depreciation.''.

    (f) Amendments Relating to Section 1142.--
    (1) Subsection (b) of section 38 is amended by striking
    ``plus'' at the end of paragraph (35), by redesignating
    paragraph (36) as paragraph (37), and by inserting after
    paragraph (35) the following new paragraph:
    ``(36) the portion of the qualified plug-in electric vehicle
    credit to which section 30(c)(1) applies, plus''.
    (2)(A) Subsection (e) of section 30 is amended--

    [[Page 4029]]

    (i) by inserting ``(determined without regard to
    subsection (c))'' before the period at the end of
    paragraph (1), and
    (ii) by inserting ``(determined without regard to
    subsection (c))'' before the period at the end of
    paragraph (2).
    (B) Paragraph (3) of section 30(e) <>  is
    amended by adding at the end the
    following: <>  ``For purposes of
    subsection (c), property to which this paragraph applies shall
    be treated as of a character subject to an allowance for
    depreciation.''.

    (g) Amendment Relating to Section 1302.--Paragraph (3) of section
    48C(b) is amended by inserting ``as the qualified investment'' after
    ``The amount which is treated''.
    (h) Amendments Related to Section 1541.--
    (1) Paragraph (2) of section 853A(a) is amended by inserting
    ``(determined after the application of this section)'' before
    the comma at the end.
    (2) Subsection (a) of section 853A is amended--
    (A) by striking ``with respect to credits'' and
    inserting ``with respect to some or all of the
    credits'', and
    (B) by inserting ``(determined without regard to
    this section and sections 54(c), 54A(c)(1), 54AA(c)(1),
    and 1397E(c))'' after ``credits allowable''.
    (3) Subsection (b) of section 853A is amended to read as
    follows:

    ``(b) Effect of Election.--If the election provided in subsection
    (a) is in effect with respect to any credits for any taxable year--
    ``(1) the regulated investment company--
    ``(A) shall not be allowed such credits,
    ``(B) shall include in gross income (as interest)
    for such taxable year the amount which would have been
    so included with respect to such credits had the
    application of this section not been elected,
    ``(C) shall include in earnings and profits the
    amount so included in gross income, and
    ``(D) shall be treated as making one or more
    distributions of money with respect to its stock equal
    to the amount of such credits on the date or dates (on
    or after the applicable date for any such credit) during
    such taxable year (or following the close of the taxable
    year pursuant  to section 855)  selected by the company,
    and
    ``(2) each shareholder of such investment company shall--
    ``(A) be treated as receiving such shareholder's
    proportionate share of any distribution of money which
    is treated as made by such investment company under
    paragraph (1)(D), and
    ``(B) be allowed credits against the tax imposed by
    this chapter equal to the amount of such distribution,
    subject to the provisions of this title applicable to
    the credit involved.''.
    (4) Subsection (c) of section 853A is amended to read as
    follows:

    ``(c) Notice to Shareholders.--The amount treated as a distribution
    of money received by a shareholder under subsection (b)(2)(A) (and as
    credits allowed to such shareholder under subsection (b)(2)(B)) shall
    not exceed the amount so reported by the

    [[Page 4030]]

    regulated investment company in a written statement furnished to such
    shareholder.''.
    (5) Clause (ii) of section 853A(e)(1)(A) <>  is amended by inserting ``other than a qualified bond
    described in section 54AA(g)'' after ``as defined in section
    54AA(d))''.

    (i) Amendments Relating to Section 2202.--
    (1) Subparagraph (A) of section 2202(b)(1) of division B of
    the American Recovery and Reinvestment Act of 2009 <>  is amended by inserting ``political
    subdivision of a State,'' after ``any State,''.
    (2) Section 2202 of division B of the American Recovery and
    Reinvestment Act of 2009 is amended by adding at the end the
    following new subsection:

    ``(e) Treatment of Possessions.--
    ``(1) <>  Payments to 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
    credits allowed under subsection (a) with respect to taxable
    years beginning in 2009. Such amounts shall be determined by the
    Secretary of the Treasury based on information provided by the
    government of the respective possession.
    ``(2) Coordination with credit allowed against united states
    income taxes.--No credit shall be allowed against United States
    income taxes for any taxable year under this section to any
    person to whom a credit is allowed against taxes imposed by the
    possession by reason of the credit allowed under subsection (a)
    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 the Commonwealth of the Northern
    Mariana 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 subsection shall be treated in the
    same manner as a refund due from the credit allowed
    under section 36A of the Internal Revenue Code of 1986
    (as added by this Act).''.

    (j) Clerical Amendments.--
    (1) Amendment relating to section 1131.--Paragraph (2) of
    section 45Q(d) is amended by striking ``Administrator of the
    Environmental Protection Agency'' and all that follows through
    ``shall establish'' and inserting ``Administrator of the
    Environmental Protection Agency, the Secretary of Energy, and
    the Secretary of the Interior, shall establish''.
    (2) Amendment relating to section 1141.--Paragraph (37) of
    section 1016(a) is amended by striking ``section 30D(e)(4)'' and
    inserting ``section 30D(f)(1)''.

    [[Page 4031]]

    (3) Amendment relating to section 3001.--Subparagraph (A) of
    section 3001(a)(14) of the American Recovery and Reinvestment
    Act of 2009 <>  is amended by striking ``is
    amended by redesignating paragraph (9) as paragraph (10)'' and
    inserting ``, as amended by this Act, is amended by
    redesignating paragraphs (9) and (10) as paragraphs (10) and
    (11), respectively,''.

    (k) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the American Recovery and Reinvestment Tax Act of 2009 to which they
    relate.
    SEC. 210. AMENDMENTS RELATING TO ENERGY IMPROVEMENT AND EXTENSION
    ACT OF 2008.

    (a) Amendment Relating to Section 108.--Subparagraph (E) of section
    45K(g)(2) <>  is amended to read as follows:
    ``(E) Coordination with section 45.--No credit shall
    be allowed with respect to any coke or coke gas which is
    produced using steel industry fuel (as defined in
    section 45(c)(7)) as feedstock if a credit is allowed to
    any taxpayer under section 45 with respect to the
    production of such steel industry fuel.''.

    (b) Amendment Relating to Section 113.--Paragraph (1) of section
    113(b) of the Energy Improvement and Extension Act of 2008 <>  is amended by adding at the end the following new
    subparagraph:
    ``(F) <>  Trust fund.--The term
    `Trust Fund' means the Black Lung Disability Trust Fund
    established under section 9501 of the Internal Revenue
    Code of 1986.''.

    (c) Amendments Relating to Section 306.--
    (1) Clause (ii) of section 168(i)(18)(A) is amended by
    striking ``10 years'' and inserting ``16 years''.
    (2) Clause (ii) of section 168(i)(19)(A) is amended by
    striking ``10 years'' and inserting ``16 years''.

    (d) Amendment Relating to Section 308.--Clause (i) of section
    168(m)(2)(B) is amended by striking ``section 168(k)'' and inserting
    ``subsection (k) (determined without regard to paragraph (4) thereof)''.
    (e) Amendment Relating to Section 402.--Subparagraph (A) of section
    907(f)(4) is amended by striking ``this subsection shall be applied''
    and all that follows through the period at the end and inserting the
    following: ``this subsection, as in effect on the day before the date of
    the enactment of the Energy Improvement and Extension Act of 2008, shall
    apply to unused oil and gas extraction taxes carried from such unused
    credit year to a taxable year beginning after December 31, 2008.''.
    (f) Amendments Relating to Section 403.--
    (1) Subsection (c) of section 1012 is amended--
    (A) by striking ``funds'' in the heading for
    paragraph (2) and inserting ``regulated investment
    companies'',
    (B) by striking ``fund'' in the heading for
    paragraph (2)(B), and
    (C) by striking ``fund'' each place it appears in
    paragraph (2) and inserting ``regulated investment
    company''.
    (2) Paragraph (1) of section 1012(d) is amended--
    (A) by striking ``December 31, 2010'' and inserting
    ``December 31, 2011'', and
    (B) by striking ``an open-end fund'' and inserting
    ``a regulated investment company''.

    [[Page 4032]]

    (3) Paragraph (3) of section 1012(d) <>
    is amended to read as follows:
    ``(3) Separate accounts; election for treatment as single
    account.--
    ``(A) <>  In general.--Rules
    similar to the rules of subsection (c)(2) shall apply
    for purposes of this subsection.
    ``(B) Average basis method.--Notwithstanding
    paragraph (1), in the case of an election under rules
    similar to the rules of subsection (c)(2)(B) with
    respect to stock held in connection with a dividend
    reinvestment plan, the average basis method is
    permissible with respect to all such stock without
    regard to the date of the acquisition of such stock.''.
    (4) Subsection (g) of section 6045 is amended by adding at
    the end the following new paragraph:
    ``(6) Special rule for certain stock held in connection with
    dividend reinvestment plan.--For purposes of this subsection,
    stock acquired before January 1, 2012, in connection with a
    dividend reinvestment plan shall be treated as stock described
    in clause (ii) of paragraph (3)(C) (unless the broker with
    respect to such stock elects not to have this paragraph apply
    with respect to such stock).''.

    (g) Clerical Amendments.--
    (1) Amendment relating to section 108.--Paragraph (2) of
    section 45(b) is amended by striking ``$3 amount'' and inserting
    ``$2 amount''.
    (2) Amendment relating to section 306.--
    (A) Paragraph (5) of section 168(b) is amended by
    striking ``(2)(C)'' and inserting ``(2)(D)''.
    (B) The last sentence of section 168(k)(4)(C)(i) is
    amended by striking ``(b)(2)(C)'' and inserting
    ``(b)(2)(D)''.

    (h) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the Energy Improvement and Extension Act of 2008 to which they relate.
    SEC. 211. AMENDMENTS RELATING TO TAX EXTENDERS AND ALTERNATIVE
    MINIMUM TAX RELIEF ACT OF 2008.

    (a) Amendment Relating to Section 208.--Subsection (b) of section
    208 of the Tax Extenders and Alternative Minimum Tax Relief Act of
    2008 <>  is amended to read as follows:

    ``(b) Effective Date.--
    ``(1) In general.--The amendment made by subsection (a)
    shall take effect on January 1, 2008. Notwithstanding the
    preceding sentence, such amendment shall not apply with respect
    to the withholding requirement under section 1445 of the
    Internal Revenue Code of 1986 for any payment made before
    October 4, 2008.
    ``(2) Amounts withheld on or before date of enactment.--In
    the case of a regulated investment company--
    ``(A) which makes a distribution after December 31,
    2007, and before October 4, 2008, and
    ``(B) which would (but for the second sentence of
    paragraph (1)) have been required to withhold with
    respect to such distribution under section 1445 of such
    Code,
    such investment company shall not be liable to any person to
    whom such distribution was made for any amount so withheld and
    paid over to the Secretary of the Treasury.''.

    [[Page 4033]]

    (b) Amendments Relating to Section 305.--Paragraphs (7)(B) and
    (8)(D) of section 168(e) <>  are each amended by
    inserting ``which is not qualified leasehold improvement property''
    after ``Property described in this paragraph''.

    (c) Clerical Amendments.--
    (1) Amendments relating to section 706.--
    (A) Paragraph (2) of section 1033(h) is amended by
    inserting ``is'' before ``compulsorily''.
    (B) Subclause (II) of section 172(b)(1)(F)(ii) is
    amended by striking ``subsection (h)(3)(C)(i)'' and
    inserting ``section 165(h)(3)(C)(i)''.
    (C) The heading for paragraph (1) of section 165(h)
    is amended by striking ``$100'' and inserting
    ``Dollar''.
    (2) Amendment relating to section 709.--Subsection (k) of
    section 143 is amended by redesignating the second paragraph
    (12) (relating to special rules for residences destroyed in
    Federally declared disasters) as paragraph (13).
    (3) Amendment relating to section 712.--Section 712 of the
    Tax Extenders and Alternative Minimum Tax Relief Act of
    2008 <>  is amended by striking ``section
    702(c)(1)(A)'' and inserting ``section 702(b)(1)(A)''.

    (d) Effective Date.--The amendments made by this section shall take
    effect as if included in the provisions of the Tax Extenders and
    Alternative Minimum Tax Relief Act of 2008 to which they relate.
    SEC. 212. CLERICAL AMENDMENTS RELATING TO HOUSING ASSISTANCE TAX
    ACT OF 2008.

    (a) Amendment Relating to Section 3002.--Paragraph (1) of section
    42(b) is amended by striking ``For purposes of this section, the term''
    and inserting the following: ``For purposes of this section--
    ``(A) In general.--The term''.

    (b) Amendment Relating to Section 3081.--Clause (iv) of section
    168(k)(4)(E) is amended by striking ``adjusted minimum tax'' and
    inserting ``adjusted net minimum tax''.
    (c) Amendment Relating to Section 3092.--Subsection (b) of section
    121 is amended by redesignating the second paragraph (4) (relating to
    exclusion of gain allocated to nonqualified use) as paragraph (5).
    (d) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the Housing Assistance Tax Act of 2008 to which they relate.
    SEC. 213. AMENDMENTS AND PROVISION RELATING TO HEROES EARNINGS
    ASSISTANCE AND RELIEF TAX ACT OF 2008.

    (a) Amendment Relating to Section 106.--Paragraph (2) of section
    106(c) of the Heroes Earnings Assistance and Relief Tax Act of
    2008 <>  is amended by striking ``substituting
    for'' and inserting ``substituting `June 17, 2008' for''.

    (b) Amendment Relating to Section 114.--Paragraph (1) of section
    125(h) is amended by inserting ``(and shall not fail to be treated as an
    accident or health plan)'' before ``merely''.
    (c) Clerical Amendments.--
    (1) Amendment relating to section 110.--Subparagraph (B) of
    section 121(d)(12) is amended by inserting ``of paragraph (9)''
    after ``and (D)''.

    [[Page 4034]]

    (2) Amendment relating to section 301.--Paragraph (2) of
    section 877(e) <>  is amended by striking
    ``subparagraph (A) or (B) of''.

    (d) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the Heroes Earnings Assistance and Relief Tax Act of 2008 to which they
    relate.
    SEC. 214. AMENDMENTS RELATING TO ECONOMIC STIMULUS ACT OF 2008.

    (a) Amendments Relating to Section 101.--Paragraph (2) of section
    6213(g) is amended--
    (1) by striking ``32, or 6428'' in subparagraph (L) and
    inserting ``or 32'', and
    (2) by striking ``and'' at the end of subparagraph (O), by
    striking the period at the end of subparagraph (P) and inserting
    ``, and'', and by inserting after subparagraph (P) the following
    new subparagraph:
    ``(Q) an omission of a correct valid identification
    number required under section 6428(h) (relating to 2008
    recovery rebates for individuals) to be included on a
    return.''.

    (b) Clerical Amendment Relating to Section 103.--Subclause (IV) of
    section 168(k)(2)(B)(i) is amended by striking ``clauses also apply''
    and inserting ``clause also applies''.
    (c) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the Economic Stimulus Act of 2008 to which they relate.
    SEC. 215. AMENDMENTS RELATING TO TAX TECHNICAL CORRECTIONS ACT OF
    2007.

    (a) Amendment Relating to Section 4(c).--Paragraph (1) of section
    911(f) is amended by adding at the end the following flush sentence:
    ``For purposes of this paragraph, the amount excluded under
    subsection (a) shall be reduced by the aggregate amount of any
    deductions or exclusions disallowed under subsection (d)(6) with
    respect to such excluded amount.''.

    (b) Clerical Amendment Relating to Section 11(g).--Clause (iv) of
    section 56(g)(4)(C) is amended by striking ``a cooperative described in
    section 927(a)(4)'' and inserting ``an organization to which part I of
    subchapter T (relating to tax treatment of cooperatives) applies which
    is engaged in the marketing of agricultural or horticultural products''.
    (c) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provisions of
    the Tax Technical Corrections Act of 2007 to which they relate.
    SEC. 216. AMENDMENT RELATING TO TAX RELIEF AND HEALTH CARE ACT OF
    2006.

    (a) Amendment Relating to Section 105.--Subparagraph (B) of section
    45A(b)(1) is amended by adding at the end the following: ``If any
    portion of wages are taken into account under subsection (e)(1)(A) of
    section 51, the preceding sentence shall be applied by substituting `2-
    year period' for `1-year period'.''.
    (b) <>  Effective Date.--The amendment made
    by this section shall take effect as if included in the provision of the
    Tax Relief and Health Care Act of 2006 to which it relates.

    [[Page 4035]]

    SEC. 217. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, FLEXIBLE,
    EFFICIENT TRANSPORTATION EQUITY ACT OF
    2005: A LEGACY FOR USERS.

    (a) Amendment Relating to Section 11161.--Paragraph (1) of section
    9503(b) <>  is amended by inserting before the
    period at the end the following: ``and taxes received under section 4081
    shall be determined without regard to tax receipts attributable to the
    rate specified in section 4081(a)(2)(C)''.

    (b) <>  Effective Date.--The amendment made
    by this section shall take effect as if included in the provision of the
    Safe, Accountable, Flexible, Efficient Transportation Equity Act of
    2005: A Legacy for Users to which it relates.
    SEC. 218. AMENDMENTS RELATING TO ENERGY TAX INCENTIVES ACT OF
    2005.

    (a) Amendment Relating to Section 1341.--Subparagraph (B) of section
    30B(h)(5) is amended by inserting ``(determined without regard to
    subsection (g))'' before the period at the end.
    (b) Amendment Relating to Section 1342.--Paragraph (1) of section
    30C(e) is amended to read as follows:
    ``(1) Reduction in basis.--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 (determined without regard to subsection (d)).''.

    (c) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provision of the
    Energy Tax Incentives Act of 2005 to which it relates.
    SEC. 219. AMENDMENTS RELATING TO AMERICAN JOBS CREATION ACT OF
    2004.

    (a) Amendment Relating to Section 101.--Subsection (d) of section
    101 of the American Jobs Creation Act of 2004 <>  is amended by adding at the end the following new paragraph:
    ``(3) Coordination with section 199.--This subsection shall
    be applied without regard to any deduction allowable under
    section 199.''.

    (b) Amendments Relating to Section 102.--Paragraph (3) of section
    199(b) is amended--
    (1) by inserting ``of a short taxable year or'' after ``in
    cases'', and
    (2) by striking ``and dispositions'' and inserting ``,
    dispositions, and short taxable years''.

    (c) Clerical Amendment Relating to Section 413.--Paragraph (7) of
    section 904(h) is amended by striking ``as ordinary income under section
    1246 or''.
    (d) <>  Effective Date.--The amendments made
    by this section shall take effect as if included in the provision of the
    American Jobs Creation Act of 2004 to which they relate.
    SEC. 220. OTHER CLERICAL CORRECTIONS.

    (a) Paragraph (8) of section 30B(h) is amended by striking
    ``vehicle)., except that'' and inserting ``vehicle), except that''.
    (b) Subparagraph (A) of section 38(c)(2) is amended by striking
    ``credit credit'' and inserting ``credit''.
    (c) Section 46 is amended by adding a comma at the end of paragraph
    (4).

    [[Page 4036]]

    (d) Subparagraph (E) of section 50(a)(2) <>  is
    amended by inserting ``, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 48D(b)(4)''
    after ``in section 48(b)''.

    (e) Clause (i) of section 54A(d)(2)(A) is amended by striking ``100
    percent or more'' and inserting ``100 percent''.
    (f) Paragraph (2) of section 125(b) is amended by striking
    ``statutory nontaxable benefits'' each place it appears and inserting
    ``qualified benefits''.
    (g) Paragraph (2) of section 125(h) is amended by striking ``means,
    any'' and inserting ``means any''.
    (h) Subparagraph (F) of section 163(h)(4) is amended by striking
    ``Veterans Administration or the Rural Housing Administration'' and
    inserting ``Department of Veterans Affairs or the Rural Housing
    Service''.
    (i) Subsection (a) of section 249 is amended by striking
    ``1563(a)(1)'' and inserting ``1563(a)(1))''.
    (j) Paragraphs (8) and (10) of section 280F(d) are each amended by
    striking ``subsection (a)(2)'' and inserting ``subsection (a)(1)''.
    (k) Clause (iii) of section 402A(c)(4)(E) is amended by striking
    ``403(b)(7)(A)(i)'' and inserting ``403(b)(7)(A)(ii)''.
    (l) Section 527 is amended--
    (1) by striking ``(2 U.S.C. 432(e))'' in subsection
    (h)(2)(A)(i) and inserting ``(52 U.S.C. 30102(e))'', and
    (2) by striking ``(2 U.S.C. 431 et seq.)'' in subsections
    (i)(6) and (j)(5)(A) and inserting ``(52 U.S.C. 30101 et
    seq.)''.

    (m) Subsection (b) of section 858 is amended by striking
    ``857(b)(8)'' and inserting ``857(b)(9)''.
    (n) Subparagraph (A) of section 1012(c)(2) is amended by striking
    ``section 1012'' and inserting ``this section''.
    (o) The heading for section 1394(f) is amended by striking
    ``Designated Under Section 1391(g)''.
    (p) Paragraphs (1) and (2)(A) of section 1394(f) are each amended by
    striking ``a new empowerment zone facility bond'' and inserting ``an
    empowerment zone facility bond''.
    (q) Clause (i) of section 1400N(c)(3)(A) is amended by striking
    ``section 42(d)(5)(C)(iii)'' and inserting ``section 42(d)(5)(B)(iii)''.
    (r) Subsections (e)(3)(B) and (f)(7)(B) of section 4943 are each
    amended by striking ``January 1, 1970'' and inserting ``January 1,
    1971''.
    (s) Paragraph (2) of section 4982(f) is amended by adding a comma at
    the end.
    (t) Paragraph (3) of section 6011(e) is amended by striking ``shall
    require than'' and inserting ``shall require that''.
    (u) Subsection (b) of section 6072 is amended by striking
    ``6011(e)(2)'' and inserting ``6011(c)(2)''.
    (v) Subsection (d) of section 6104 is amended by redesignating the
    second paragraph (6) (relating to disclosure of reports by the Internal
    Revenue Service) and third paragraph (6) (relating to application to
    nonexempt charitable trusts and nonexempt private foundations) as
    paragraphs (7) and (8), respectively.
    (w) Subsection (c) of section 6662A is amended by striking ``section
    6664(d)(2)(A)'' and inserting ``section 6664(d)(3)(A)''.
    (x) Subparagraph (FF) of section 6724(d)(2) is amended by striking
    ``section 6050W(c)'' and inserting ``section 6050W(f)''.
    (y) Section 7122 is amended by redesignating the second subsection
    (f) (relating to frivolous submissions, etc.) as subsection (g).

    [[Page 4037]]

    (z) Subsection (a) of section 9035 <>  is
    amended by striking ``section 320(b)(1)(A)'' and inserting ``section
    315(b)(1)(A)''.

    (aa) Section 9802 is amended by redesignating the second subsection
    (f) (relating to genetic information of a fetus or embryo) as subsection
    (g).
    (bb) Paragraph (3) of section 13(e) of the Worker, Homeownership,
    and Business Assistance Act of 2009 <>  is
    amended by striking ``subsection (d)'' and inserting ``subsection (c)''.
    SEC. 221. DEADWOOD PROVISIONS.

    (a) In General.--
    (1) Adjustments in tax tables so that inflation will not
    result in tax increases.--Paragraph (7) of section 1(f) is
    amended to read as follows:
    ``(7) Special rule for certain brackets.--In prescribing
    tables under paragraph (1) which apply to taxable years
    beginning in a calendar year after 1994, the cost-of-living
    adjustment used in making adjustments to the dollar amounts at
    which the 36 percent rate bracket begins or at which the 39.6
    percent rate bracket begins shall be determined under paragraph
    (3) by substituting `1993' for `1992'.''.
    (2) Certain plug-in electric vehicles.--
    (A) <>  Subpart B of part IV
    of subchapter A of chapter 1 is amended by striking
    section 30 (and by striking the item relating to such
    section in the table of sections for such subpart).
    (B) Subsection (b) of section 38, as amended by
    section 209(f)(1) of this Act, is amended by inserting
    ``plus'' at the end of paragraph (35), by striking
    paragraph (36), and by redesignating paragraph (37) as
    paragraph (36).
    (C) Subclause (VI) of section 48C(c)(1)(A)(i) is
    amended by striking ``, qualified plug-in electric
    vehicles (as defined by section 30(d)),''.
    (D) Section 1016(a) is amended by striking paragraph
    (25).
    (E) Section 6501(m) is amended by striking ``section
    30(e)(6),''.
    (3) Earned income credit.--
    (A) Paragraph (1) of section 32(b) is amended--
    (i) by striking subparagraphs (B) and (C), and
    (ii) by striking ``(A) In General.--In the
    case of taxable years beginning after 1995:'' in
    subparagraph (A) and moving the table 2 ems to the
    left.
    (B) Subparagraph (B) of section 32(b)(2) is amended
    by striking ``increased by'' and all that follows and
    inserting ``increased by $3,000.''.
    (4) First-time homebuyer credit.--Section 6213(g)(2), as
    amended by section 214(a)(2) of this Act, is amended by striking
    subparagraph (P).
    (5) Making work pay credit.--
    (A) <>  Subpart C of part IV
    of subchapter A of chapter 1 is amended by striking
    section 36A (and by striking the item relating to such
    section in the table of sections for such subpart).
    (B) Subparagraph (A) of section 6211(b)(4) is
    amended by striking ``, 36A''.

    [[Page 4038]]

    (C) Section 6213(g)(2) <>  is
    amended by striking subparagraph (N).
    (6) General business credits.--Subsection (d) of section 38
    is amended by striking paragraph (3).
    (7) Low-income housing credit.--Subclause (I) of section
    42(h)(3)(C)(ii) is amended by striking ``($1.50 for 2001)''.
    (8) Minimum tax credit.--
    (A)(i) Section 53 is amended by striking subsections
    (e) and (f).
    (ii) The amendment made by clause (i) striking
    subsection (f) of section 53 of the Internal Revenue
    Code of 1986 shall not be construed to allow any tax
    abated by reason of section 53(f)(1) of such Code (as in
    effect before such amendment) to be included in the
    amount determined under section 53(b)(1) of such Code.
    (B) Paragraph (4) of section 6211(b)(4) is amended
    by striking ``, 53(e)''.
    (9) Adjustments based on adjusted current earnings.--Clause
    (ii) of section 56(g)(4)(F) is amended by striking ``In the case
    of any taxable year beginning after December 31, 1992, clause''
    and inserting ``Clause''.
    (10) Items of tax preference; depletion.--Paragraph (1) of
    section 57(a) is amended by striking ``Effective with respect to
    taxable years beginning after December 31, 1992, this'' and
    inserting ``This''.
    (11) Intangible drilling costs.--
    (A) Clause (i) of section 57(a)(2)(E) is amended by
    striking ``In the case of any taxable year beginning
    after December 31, 1992, this'' and inserting ``This''.
    (B) Clause (ii) of section 57(a)(2)(E) is amended by
    striking ``(30 percent in case of taxable years
    beginning in 1993)''.
    (12) Environmental tax.--
    (A) Subchapter A of chapter 1 <>  is amended by striking part VII (and by striking
    the item relating to such part in the table of parts for
    such subchapter).
    (B) Paragraph (2) of section 26(b) is amended by
    striking subparagraph (B).
    (C) Section 30A(c) is amended by striking paragraph
    (1) and by redesignating paragraphs (2), (3), and (4) as
    paragraphs (1), (2), and (3), respectively.
    (D) Subsection (a) of section 164 is amended by
    striking paragraph (5).
    (E) Section 275(a) is amended by striking the last
    sentence.
    (F) Section 882(a)(1) is amended by striking ``,
    59A''.
    (G) Section 936(a)(3) is amended by striking
    subparagraph (A) and by redesignating subparagraphs (B),
    (C), and (D) as subparagraphs (A), (B), and (C),
    respectively.
    (H) Section 1561(a) is amended--
    (i) by inserting ``and'' at the end of
    paragraph (2), by striking ``, and'' at the end of
    paragraph (3) and inserting a period, and by
    striking paragraph (4), and
    (ii) by striking ``, the amount specified in
    paragraph (3), and the amount specified in
    paragraph (4)'' and inserting ``and the amount
    specified in paragraph (3)''.

    [[Page 4039]]

    (I) Section 4611(e) <>  is
    amended--
    (i) by striking ``section 59A, this section,''
    in paragraph (2)(B) and inserting ``this
    section'', and
    (ii) in paragraph (3)(A)--
    (I) by striking ``section 59A,'',
    and
    (II) by striking the comma after
    ``rate)''.
    (J) Section 6425(c)(1)(A) is amended by inserting
    ``plus'' at end of clause (i), by striking ``plus'' and
    inserting ``over'' at the end of clause (ii), and by
    striking clause (iii).
    (K) Section 6655 is amended--
    (i) in subsections (e)(2)(A)(i) and
    (e)(2)(B)(i), by striking ``taxable income,
    alternative minimum taxable income, and modified
    alternative minimum taxable income'' and inserting
    ``taxable income and alternative minimum taxable
    income'',
    (ii) in subsection (e)(2)(B), by striking
    clause (iii), and
    (iii) in subsection (g)(1)(A), by inserting
    ``plus'' at the end of clause (ii), by striking
    clause (iii), and by redesignating clause (iv) as
    clause (iii).
    (L) Section 9507(b)(1) is amended by striking
    ``59A,''.
    (13) Standard deduction.--
    (A) So much of paragraph (1) of section 63(c) as
    follows ``the sum of--'' is amended to read as follows:
    ``(A) the basic standard deduction, and
    ``(B) the additional standard deduction.''.
    (B) Subsection (c) of section 63 is amended by
    striking paragraphs (7), (8), and (9).
    (14) Annuities; certain proceeds of endowment and life
    insurance contracts.--Section 72 is amended--
    (A) in subsection (c)(4), by striking ``; except
    that if such date was before January 1, 1954, then the
    annuity starting date is January 1, 1954'', and
    (B) in subsection (g)(3), by striking ``January 1,
    1954, or'' and ``, whichever is later''.
    (15) Unemployment compensation.--Section 85 is amended by
    striking subsection (c).
    (16) Accident and health plans.--Section 105(f) is amended
    by striking ``or (d)''.
    (17) Flexible spending arrangements.--Section 106(c)(1) is
    amended by striking ``Effective on and after January 1, 1997,
    gross'' and inserting ``Gross''.
    (18) Certain combat zone compensation of members of the
    armed forces.--Subsection (c) of section 112 is amended--
    (A) by striking ``(after June 24, 1950)'' in
    paragraph (2), and
    (B) by striking ``such zone;'' and all that follows
    in paragraph (3) and inserting ``such zone.''.
    (19) Legal service plans.--
    (A) <>  Part III of
    subchapter B of chapter 1 is amended by striking section
    120 (and by striking the item relating to such section
    in the table of sections for such subpart).
    (B)(i) Section 414(n)(3)(C) is amended by striking
    ``120,''.
    (ii) Section 414(t)(2) is amended by striking
    ``120,''.

    [[Page 4040]]

    (iii) Section 501(c) <>  is
    amended by striking paragraph (20).
    (iv) Section 3121(a) is amended by striking
    paragraph (17).
    (v) Section 3231(e) is amended by striking paragraph
    (7).
    (vi) Section 3306(b) is amended by striking
    paragraph (12).
    (vii) Section 6039D(d)(1) is amended by striking
    ``120,''.
    (viii) Section 209(a)(14) of the Social Security
    Act <>  is amended--
    (I) by striking subparagraph (B), and
    (II) by striking ``(14)(A)'' and inserting
    ``(14)''.
    (20) Principal residence.--Section 121(b)(3) is amended--
    (A) by striking subparagraph (B), and
    (B) in subparagraph (A), by striking ``(A) In
    general.--'' and moving the text 2 ems to the left.
    (21) Certain reduced uniformed services retirement pay.--
    Section 122(b)(1) is amended by striking ``after December 31,
    1965,''.
    (22) Great plains conservation program.--Section 126(a) is
    amended by striking paragraph (6) and by redesignating
    paragraphs (7), (8), (9), and (10) as paragraphs (6), (7), (8),
    and (9), respectively.
    (23) Treble damage payments under the antitrust law.--
    Section 162(g) is amended by striking the last sentence.
    (24) State legislators' travel expenses away from home.--
    Paragraph (4) of section 162(h) is amended by striking ``For
    taxable years beginning after December 31, 1980, this'' and
    inserting ``This''.
    (25) Interest.--
    (A) Section 163 is amended--
    (i) by striking paragraph (6) of subsection
    (d), and
    (ii) by striking paragraph (5) of subsection
    (h).
    (B) Section 56(b)(1)(C) is amended by striking
    clause (ii) and by redesignating clauses (iii), (iv),
    and (v) as clauses (ii), (iii), and (iv), respectively.
    (26) Qualified motor vehicle taxes.--Section 164, as amended
    by section 209(c) of this Act, is amended by striking
    subsections (a)(6) and (b)(6).
    (27) Disaster losses.--
    (A) Subsection (h) of section 165 is amended by
    striking paragraph (3) and by redesignating paragraphs
    (4) and (5) as paragraphs (3) and (4), respectively.
    (B) Paragraph (3) of section 165(h), as so
    redesignated, is amended by striking ``paragraphs (2)
    and (3)'' and inserting ``paragraph (2)''.
    (C) Subsection (i) of section 165 is amended--
    (i) in paragraph (1)--
    (I) by striking ``(as defined by
    clause (ii) of subsection (h)(3)(C))'',
    and
    (II) by striking ``(as defined by
    clause (i) of such subsection)'',
    (ii) by striking ``(as defined by subsection
    (h)(3)(C)(i)'' in paragraph (4), and
    (iii) by adding at the end the following new
    paragraph:

    [[Page 4041]]

    ``(5) <>  Federally declared
    disasters.--For purposes of this subsection--
    ``(A) In general.--The term `Federally declared
    disaster' means any disaster subsequently determined by
    the President of the United States to warrant assistance
    by the Federal Government under the Robert T. Stafford
    Disaster Relief and Emergency Assistance Act.
    ``(B) Disaster area.--The term `disaster area' means
    the area so determined to warrant such assistance.''.
    (D) Section 1033(h)(3) <>  is
    amended by striking ``section 165(h)(3)(C)'' and
    inserting ``section 165(i)(5)''.
    (28) Charitable, etc., contributions and gifts.--Section 170
    is amended--
    (A) by striking paragraph (3) of subsection (b),
    (B) by striking paragraph (6) of subsection (e), and
    (C) by striking subsection (k).
    (29) Amortizable bond premium.--
    (A) Subparagraph (B) of section 171(b)(1) is amended
    to read as follows:
    ``(B)(i) with reference to the amount payable on
    maturity (or if it results in a smaller amortizable bond
    premium attributable to the period before the call date,
    with reference to the amount payable on the earlier call
    date), in the case of a bond described in subsection
    (a)(1), and
    ``(ii) with reference to the amount payable on
    maturity or on an earlier call date, in the case of a
    bond described in subsection (a)(2).''.
    (B) Paragraphs (2) and (3)(B) of section 171(b) are
    each amended by striking ``paragraph (1)(B)(ii)'' and
    inserting ``paragraph (1)(B)(i)''.
    (30) Net operating loss carrybacks, carryovers, and
    carryforwards.--
    (A) Section 172, as amended by section 211(c)(1)(B)
    of this Act, is amended--
    (i) by striking subparagraphs (D), (H), (I),
    and (J) of subsection (b)(1) and by redesignating
    subparagraphs (E), (F), and (G) as subparagraphs
    (D), (E), and (F), respectively, and
    (ii) by striking subsections (g) and (j) and
    by redesignating subsections (h), (i), and (k) as
    subsections (g), (h), and (i), respectively.
    (B) Each of the following provisions of section 172
    (as amended by section 211(c)(1)(B) of this Act and as
    redesignated by subparagraph (A)) are amended as
    follows:
    (i) By striking ``ending after August 2,
    1989'' in subsection (b)(1)(D)(i)(II).
    (ii) By striking ``subsection (h)'' in
    subsection (b)(1)(D)(ii) and inserting
    ``subsection (g)''.
    (iii) By striking ``section 165(h)(3)(C)(i)''
    in subsection (b)(1)(E)(ii)(II) and inserting
    ``section 165(i)(5)''.
    (iv) By striking ``subsection (i)'' and all
    that follows in the last sentence of subsection
    (b)(1)(E)(ii) and inserting ``subsection (h)).''.
    (v) By striking ``subsection (i)'' in
    subsection (b)(1)(F) and inserting ``subsection
    (h)''.
    (vi) By striking subparagraph (F) of paragraph
    (2) of subsection (g).

    [[Page 4042]]

    (vii) By striking ``subsection (b)(1)(E)''
    each place it appears in subsection (g)(4) and
    inserting ``subsection (b)(1)(D)''.
    (viii) By striking the last sentence of
    subsection (h)(1).
    (ix) By striking ``subsection (b)(1)(G)'' each
    place it appears in subsection (h)(3) and
    inserting ``subsection (b)(1)(F)''.
    (C) Subsection (d) of section 56 <>  is amended by striking paragraph (3).
    (D) Paragraph (5) of section 382(l) is amended by
    striking subparagraph (F) and by redesignating
    subparagraphs (G) and (H) as subparagraphs (F) and (G),
    respectively.
    (31) Research and experimental expenditures.--Subparagraph
    (A) of section 174(a)(2) is amended to read as follows:
    ``(A) Without consent.--A taxpayer may, without the
    consent of the Secretary, adopt the method provided in
    this subsection for his first taxable year for which
    expenditures described in paragraph (1) are paid or
    incurred.''.
    (32) Amortization of certain research and experimental
    expenditures.--Paragraph (2) of section 174(b) is amended by
    striking ``beginning after December 31, 1953''.
    (33) Soil and water conservation expenditures.--Paragraph
    (1) of section 175(d) is amended to read as follows:
    ``(1) Without consent.--A taxpayer may, without the consent
    of the Secretary, adopt the method provided in this section for
    the taxpayer's first taxable year for which expenditures
    described in subsection (a) are paid or incurred.''.
    (34) Clean-fuel vehicles.--
    (A) <>  Part VI of
    subchapter A of chapter 1 is amended by striking section
    179A (and by striking the item relating to such section
    in the table of sections for such part).
    (B) Section 30C(e) is amended by adding at the end
    the following:
    ``(7) Reference.--For purposes of this section, any
    reference to section 179A shall be treated as a reference to
    such section as in effect immediately before its repeal.''.
    (C) Section 62(a) is amended by striking paragraph
    (14).
    (D) Section 263(a)(1) is amended by striking
    subparagraph (H).
    (E) Section 280F(a)(1) is amended by striking
    subparagraph (C).
    (F) Section 312(k)(3) is amended by striking
    ``179A,'' each place it appears.
    (G) Section 1016(a) is amended by striking paragraph
    (24).
    (H) Section 1245(a) is amended by striking ``179A,''
    each place it appears in paragraphs (2)(C) and (3)(C).
    (35) <>  Qualified disaster
    expenses.--Part VI of subchapter A of chapter 1 is amended by
    striking section 198A (and by striking the item relating to such
    section in the table of sections for such part).
    (36) Activities not engaged in for profit.--Section
    183(e)(1) is amended by striking the last sentence.

    [[Page 4043]]

    (37) Domestic production activities.--
    (A) Subsection (a) of section 199 <>  is amended--
    (i) by striking paragraph (2),
    (ii) by redesignating subparagraphs (A) and
    (B) of paragraph (1) as paragraphs (1) and (2),
    respectively, and by moving paragraphs (1) and (2)
    (as so redesignated) 2 ems to the left, and
    (iii) by striking ``Allowance of Deduction.--
    '' and all that follows through ``There shall be
    allowed'' and inserting the following:

    ``(a) Allowance of Deduction.--There shall be allowed''.
    (B) Paragraphs (2) and (6)(B) of section 199(d) are
    each amended by striking ``(a)(1)(B)'' and inserting
    ``(a)(2)''.
    (38) Retirement savings.--
    (A) Subparagraph (A) of section 219(b)(5) is amended
    to read as follows:
    ``(A) In general.--The deductible amount is
    $5,000.''.
    (B) Clause (ii) of section 219(b)(5)(B) is amended
    to read as follows:
    ``(ii) Applicable amount.--For purposes of
    clause (i), the applicable amount is $1,000.''.
    (C) Paragraph (5) of section 219(b) is amended by
    striking subparagraph (C) and by redesignating
    subparagraph (D) as subparagraph (C).
    (D) Clause (ii) of section 219(g)(2)(A) is amended
    by striking ``for a taxable year beginning after
    December 31, 2006''.
    (E) Section 219(g)(3)(B) is amended by striking
    clauses (i) and (ii) and inserting the following:
    ``(i) In the case of a taxpayer filing a joint
    return, $80,000.
    ``(ii) In the case of any other taxpayer
    (other than a married individual filing a separate
    return), $50,000.''.
    (F) Paragraph (8) of section 219(g) is amended by
    striking ``the dollar amount in the last row of the
    table contained in paragraph (3)(B)(i), the dollar
    amount in the last row of the table contained in
    paragraph (3)(B)(ii), and the dollar amount contained in
    paragraph (7)(A),'' and inserting ``each of the dollar
    amounts in paragraphs (3)(B)(i), (3)(B)(ii), and
    (7)(A)''.
    (39) Reports regarding qualified voluntary retirement
    contributions.--
    (A) Section 219 is amended by striking paragraph (4)
    of subsection (f) and subsection (h).
    (B) Section 6652 is amended by striking subsection
    (g).
    (40) Interest on education loans.--Paragraph (1) of section
    221(b) is amended by striking ``shall not exceed'' and all that
    follows and inserting ``shall not exceed $2,500.''.
    (41) Dividends received on certain preferred stock; and
    dividends paid on certain preferred stock of public utilities.--
    (A) <>  Sections 244 and
    247 are hereby repealed, and the table of sections for
    part VIII of subchapter B of chapter 1 is amended by
    striking the items relating to sections 244 and 247.

    [[Page 4044]]

    (B) Paragraph (5) of section 172(d) <>  is amended to read as follows:
    ``(5) Computation of deduction for dividends received.--The
    deductions allowed by section 243 (relating to dividends
    received by corporations) and 245 (relating to dividends
    received from certain foreign corporations) shall be computed
    without regard to section 246(b) (relating to limitation on
    aggregate amount of deductions).''.
    (C) Paragraph (1) of section 243(c) is amended to
    read as follows:
    ``(1) In general.--In the case of any dividend received from
    a 20-percent owned corporation, subsection (a)(1) shall be
    applied by substituting `80 percent' for `70 percent'.''.
    (D) Section 243(d) is amended by striking paragraph
    (4).
    (E) Section 246 is amended--
    (i) by striking ``, 244,'' in subsection
    (a)(1),
    (ii) in subsection (b)(1)--
    (I) by striking ``sections
    243(a)(1), 244(a),'' and inserting
    ``section 243(a)(1)'',
    (II) by striking ``244(a),'' the
    second place it appears, and
    (III) by striking ``subsection (a)
    or (b) of section 245, and 247,'' and
    inserting ``and subsection (a) or (b) of
    section 245,'', and
    (iii) by striking ``, 244,'' in subsection
    (c)(1).
    (F) Section 246A is amended by striking ``, 244,''
    both places it appears in subsections (a) and (e).
    (G) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2),
    469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), and (D)
    of section 805(a)(4), 805(b)(5), 812(e)(2)(A),
    815(c)(2)(A)(iii), 832(b)(5), 833(b)(3)(E), and
    1059(b)(2)(B) are each amended by striking ``, 244,''
    each place it appears.
    (H) Section 1244(c)(2)(C) is amended by striking
    ``244,''.
    (I) Section 805(a)(4)(B) is amended by striking ``,
    244(a),'' each place it appears.
    (J) Section 810(c)(2)(B) is amended by striking
    ``244 (relating to dividends on certain preferred stock
    of public utilities),''.
    (K) <>  The amendments made
    by this paragraph shall not apply to preferred stock
    issued before October 1, 1942 (determined in the same
    manner as under section 247 of the Internal Revenue Code
    of 1986 as in effect before its repeal by such
    amendments).
    (42) Organization expenses.--Section 248(c) is amended by
    striking ``beginning after December 31, 1953,'' and by striking
    the last sentence.
    (43) Bond repurchase premium.--Section 249(b)(1) is amended
    by striking ``, in the case of bonds or other evidences of
    indebtedness issued after February 28, 1913,''.
    (44) Amount of gain where loss previously disallowed.--
    Section 267(d) is amended by striking ``(or by reason of section
    24(b) of the Internal Revenue Code of 1939)'' in paragraph (1),
    by striking ``after December 31, 1953,'' in paragraph (2), by
    striking the second sentence, and by striking ``or by reason of
    section 118 of the Internal Revenue Code of 1939'' in the last
    sentence.

    [[Page 4045]]

    (45) Acquisitions made to evade or avoid income tax.--
    Paragraphs (1) and (2) of section 269(a) are each amended by
    striking ``or acquired on or after October 8, 1940,''.
    (46) Meals and entertainment.--Paragraph (3) of section
    274(n) is amended--
    (A) by striking ``(A) In general.--'',
    (B) by striking ``substituting `the applicable
    percentage' for'' and inserting ``substituting `80
    percent' for'', and
    (C) by striking subparagraph (B).
    (47) Interest on indebtedness incurred by corporations to
    acquire stock or assets of another corporation.--
    (A) Section 279 is amended--
    (i) by striking ``after December 31, 1967,''
    in subsection (a)(2),
    (ii) by striking ``after October 9, 1969,'' in
    subsection (b),
    (iii) by striking ``after October 9, 1969,
    and'' in subsection (d)(5), and
    (iv) by striking subsection (i) and
    redesignating subsection (j) as subsection (i).
    (B) The amendments made by this paragraph shall
    not--
    (i) apply to obligations issued on or before
    October 9, 1969 (determined in the same manner as
    under section 279 of the Internal Revenue Code of
    1986 as in effect before such amendments), and
    (ii) be construed to require interest on
    obligations issued on or before December 31, 1967,
    to be taken into account under section 279(a)(2)
    of such Code (as in effect after such amendments).
    (48) Bank holding companies.--
    (A) Clause (iii) of section 304(b)(3)(D) is
    repealed.
    (B) The heading of subparagraph (D) of section
    304(b)(3) is amended by striking ``and special rule''.
    (49) Effect on earnings and profits.--Subsection (d) of
    section 312 is amended by striking paragraph (2) and
    redesignating paragraph (3) as paragraph (2).
    (50) Disqualified stock.--Paragraph (3) of section 355(d) is
    amended by striking ``after October 9, 1990, and'' each place it
    appears.
    (51) Basis to corporations.--Section 362 is amended by
    striking ``on or after June 22, 1954'' in subsection (a) and by
    striking ``, on or after June 22, 1954,'' each place it appears
    in subsection (c).
    (52) Temporary waiver of minimum required distribution.--
    Section 401(a)(9) is amended by striking subparagraph (H).
    (53) Individual retirement accounts.--Clause (i) of section
    408(p)(2)(E) is amended to read as follows:
    ``(i) In general.--For purposes of
    subparagraph (A)(ii), the applicable amount is
    $10,000.''.
    (54) Tax credit employee stock ownership plans.--Section 409
    is amended by striking subsection (q).
    (55) Catch-up contributions.--Clauses (i) and (ii) of
    section 414(v)(2)(B) are amended to read as follows:

    [[Page 4046]]

    ``(i) In the case of an applicable employer
    plan other than a plan described in section
    401(k)(11) or 408(p), the applicable dollar amount
    is $5,000.
    ``(ii) In the case of an applicable employer
    plan described in section 401(k)(11) or 408(p),
    the applicable dollar amount is $2,500.''.
    (56) Employee stock purchase plans.--Section <>  423(a) is amended by striking ``after December 31,
    1963,''.
    (57) Pension related transition rules.--
    (A) Section 402(g)(1)(B) is amended by striking
    ``shall be'' and all that follows and inserting ``is
    $15,000.''.
    (B)(i) Subparagraph (D) of section 417(e)(3) is
    amended--
    (I) by striking clauses (ii) and (iii),
    (II) by striking ``if--'' and all that follows
    through ``section 430(h)(2)(D)'' and inserting
    ``if section 430(h)(2)(D)'', and
    (III) by striking ``described in such
    section,'' and inserting ``described in such
    section.''.
    (ii) Clause (iii) of section 205(g)(3)(B) of the
    Employee Retirement Income Security Act of 1974 (29
    U.S.C. 1055(g)(3)(B)) is amended--
    (I) by striking subclauses (II) and (III),
    (II) by striking ``if--'' and all that follows
    through ``section 303(h)(2)(D)'' and inserting
    ``if section 303(h)(2)(D)'', and
    (III) by striking ``described in such
    section,'' and inserting ``described in such
    section.''.
    (C)(i) Paragraph (5) of section 430(c) is amended by
    striking subparagraph (B) and by striking ``(A) In
    general.--''.
    (ii) Paragraph (5) of section 303(c) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C.
    1083(c)) is amended by striking subparagraph (B) and by
    striking ``(A) In general.--''.
    (D)(i) Paragraph (2) of section 430(h) is amended by
    striking subparagraph (G).
    (ii) Paragraph (2) of section 303(h) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C.
    1083(h)) is amended by striking subparagraph (G).
    (E)(i) Paragraph (3) of section 436(j), as added by
    section 113(a)(1)(B) of the Pension Protection Act of
    2006, is amended by striking subparagraphs (B) and (C)
    and by striking ``(A) In general.--''.
    (ii) Subparagraph (C) of section 206(g)(9) of the
    Employee Retirement Income Security Act of 1974 (29
    U.S.C. 1056(g)(9)) is amended by striking clauses (ii)
    and (iii) and by striking ``(i) In general.--''.
    (F)(i) Section 436(j) is amended by striking the
    paragraph (3) added by section 203(a)(2) of the
    Preservation of Access to Care for Medicare
    Beneficiaries and Pension Relief Act of 2010.
    (ii) Section 206(g)(9) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1056(g)(9)) is
    amended by striking subparagraph (D).
    (G)(i) Section 436 is amended by striking subsection
    (m).

    [[Page 4047]]

    (ii) Section 206(g) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1056(g)) is
    amended by striking paragraph (11).
    (H) Section 457(e)(15)(A) <>  is
    amended by striking ``shall be'' and all that follows
    and inserting ``is $15,000.''.
    (58) Limitation on deductions for certain farming.--
    (A) Section 464 is amended by striking ``any farming
    syndicate (as defined in subsection (c))'' both places
    it appears in subsections (a) and (b) and inserting
    ``any taxpayer to whom subsection (d) applies''.
    (B)(i) Subsection (c) of section 464 is hereby moved
    to the end of section 461 <>
    and redesignated as subsection (j).
    (ii) Such subsection (j) is amended--
    (I) by striking ``For purposes of this
    section'' in paragraph (1) and inserting ``For
    purposes of subsection (i)(4)'', and
    (II) by adding at the end the following new
    paragraphs:
    ``(3) Farming.--For purposes of this subsection, the term
    `farming' has the meaning given to such term by section 464(e).
    ``(4) Limited entrepreneur.--For purposes of this
    subsection, the term `limited entrepreneur' means a person who--
    ``(A) has an interest in an enterprise other than as
    a limited partner, and
    ``(B) does not actively participate in the
    management of such enterprise.''.
    (iii) Paragraph (4) of section 461(i) is
    amended by striking ``section 464(c)'' and
    inserting ``subsection (j)''.
    (C) Section 464 is amended--
    (i) by striking subsections (e) and (g) and
    redesignating subsections (d) and (f) as
    subsections (c) and (d), respectively, and
    (ii) by adding at the end the following new
    subsection:

    ``(e) Farming.--For purposes of this section, the term `farming'
    means the cultivation of land or the raising or harvesting of any
    agricultural or horticultural commodity including the raising, shearing,
    feeding, caring for, training, and management of animals. For purposes
    of the preceding sentence, trees (other than trees bearing fruit or
    nuts) shall not be treated as an agricultural or horticultural
    commodity.''.
    (D) Subsection (d) of section 464 of such Code (as
    redesignated by subparagraph (C)) is amended--
    (i) by striking paragraph (1) and
    redesignating paragraphs (2), (3), and (4) as
    paragraphs (1), (2), and (3), respectively, and
    (ii) by striking ``Subsections (a) and (b) to
    Apply to'' in the heading.
    (E) Subparagraph (A) of section 58(a)(2) is amended
    by striking ``section 464(c)'' and inserting ``section
    461(j)''.
    (59) Deductions limited to amount at risk.--Subparagraph (A)
    of section 465(c)(3) is amended by striking ``In the case of
    taxable years beginning after December 31, 1978, this'' and
    inserting ``This''.
    (60) Passive activity losses and credits limited.--

    [[Page 4048]]

    (A) Section 469 <>  is amended by
    striking subsection (m).
    (B) Subsection (b) of section 58 is amended by
    adding ``and'' at the end of paragraph (1), by striking
    paragraph (2), and by redesignating paragraph (3) as
    paragraph (2).
    (61) Adjustments required by changes in method of
    accounting.--Section 481(b)(3) is amended by striking
    subparagraph (C).
    (62) Exemption from tax on corporations, certain trusts,
    etc.--Section 501 is amended by striking subsection (s).
    (63) Requirements for exemption.--
    (A) Section 503(a)(1) is amended to read as follows:
    ``(1) General rule.--An organization described in paragraph
    (17) or (18) of section 501(c), or described in section 401(a)
    and referred to in section 4975(g) (2) or (3), shall not be
    exempt from taxation under section 501(a) if it has engaged in a
    prohibited transaction.''.
    (B) Paragraph (2) of section 503(a) is amended by
    striking ``described in section 501(c)(17) or (18) or
    paragraph (a)(1)(B)'' and inserting ``described in
    paragraph (1)''.
    (C) Subsection (c) of section 503 is amended by
    striking ``described in section 501(c)(17) or (18) or
    subsection (a)(1)(B)'' and inserting ``described in
    subsection (a)(1)''.
    (64) Accumulated taxable income.--Paragraph (1) of section
    535(b) and paragraph (1) of section 545(b) are each amended by
    striking ``section 531'' and all that follows and inserting
    ``section 531 or the personal holding company tax imposed by
    section 541.''.
    (65) Definition of property.--Subsection (b) of section 614
    is amended--
    (A) by striking paragraphs (3)(C) and (5), and
    (B) in paragraph (4), by striking ``whichever of the
    following years is later: The first taxable year
    beginning after December 31, 1963, or''.
    (66) Amounts received by surviving annuitant under joint and
    survivor annuity contract.--Subparagraph (A) of section
    691(d)(1) is amended by striking ``after December 31, 1953,
    and''.
    (67) Income taxes of members of armed forces on death.--
    Section 692(a)(1) is amended by striking ``after June 24,
    1950''.
    (68) Special rules for computing reserves.--Paragraph (7) of
    section 807(e) is amended by striking subparagraph (B) and
    redesignating subparagraph (C) as subparagraph (B).
    (69) Insurance company taxable income.--
    (A) Section 832(e) is amended by striking ``of
    taxable years beginning after December 31, 1966,''.
    (B) Section 832(e)(6) is amended by striking ``In
    the case of any taxable year beginning after December
    31, 1970, the'' and inserting ``The''.
    (70) Capitalization of certain policy acquisition
    expenses.--Section 848 is amended by striking subsection (j).
    (71) Tax on nonresident alien individuals.--Subparagraph (B)
    of section 871(a)(1) is amended to read as follows:
    ``(B) gains described in subsection (b) or (c) of
    section 631,''.

    [[Page 4049]]

    (72) Limitation on credit.--Paragraph (2) of section 904(d)
    is amended by striking subparagraph (J).
    (73) Foreign earned income.--Clause (i) of section
    911(b)(2)(D) is amended to read as follows:
    ``(i) In general.--The exclusion amount for
    any calendar year is $80,000.''.
    (74) Basis of property acquired from decedent.--
    (A) Section 1014(a)(2) is amended to read as
    follows:
    ``(2) in the case of an election under section 2032, its
    value at the applicable valuation date prescribed by such
    section,''.
    (B) Section 1014(b) is amended by striking
    paragraphs (7) and (8).
    (75) Adjusted basis.--Section 1016(a) is amended by striking
    paragraph (12).
    (76) Property on which lessee has made improvements.--
    Section 1019 is amended by striking the last sentence.
    (77) Involuntary conversion.--Section 1033 is amended by
    striking subsection (j) and by redesignating subsections (k) and
    (l) as subsections (j) and (k), respectively.
    (78) <>  Property acquired during
    affiliation.--Section 1051 is hereby repealed, and the table of
    sections for part IV of subchapter O of chapter 1 is amended by
    striking the item relating to section 1051.
    (79) Capital gains and losses.--Section 1222 is amended by
    striking the last sentence.
    (80) Holding period of property.--
    (A) Paragraph (1) of section 1223 is amended by
    striking ``after March 1, 1954,''.
    (B) Paragraph (4) of section 1223 is amended by
    striking `` `(or under so much of section 1052(c) as
    refers to section 113(a)(23) of the Internal Revenue
    Code of 1939)' ''.
    (C) Paragraphs (6) and (8) of section 1223 are
    repealed.
    (81) Property used in the trade or business and involuntary
    conversions.--Subparagraph (A) of section 1231(c)(2) is amended
    by striking ``beginning after December 31, 1981''.
    (82) Sale or exchange of patents.--Section 1235 is amended--
    (A) by striking subsection (c) and by redesignating
    subsections (d) and (e) as subsections (c) and (d),
    respectively, and
    (B) by striking ``subsection (d)'' in subsection
    (b)(2)(B) and inserting ``subsection (c)''.
    (83) Dealers in securities.--Subsection (b) of section 1236
    is amended by striking ``after November 19, 1951,''.
    (84) Sale of patents.--Subsection (a) of section 1249 is
    amended by striking ``after December 31, 1962,''.
    (85) Gain from disposition of farmland.--Paragraph (1) of
    section 1252(a) is amended--
    (A) by striking ``after December 31, 1969'' the
    first place it appears, and
    (B) by striking ``after December 31, 1969,'' in
    subparagraph (A).
    (86) Treatment of amounts received on retirement or sale or
    exchange of debt instruments.--Subsection (c) of section 1271 is
    amended to read as follows:

    [[Page 4050]]

    ``(c) Special Rule for Certain Obligations With Respect to Which
    Original Issue Discount Not Currently Includible.--
    ``(1) In general.--On the sale or exchange of debt
    instruments issued by a government or political subdivision
    thereof after December 31, 1954, and before July 2, 1982, or by
    a corporation after December 31, 1954, and on or before May 27,
    1969, any gain realized which does not exceed--
    ``(A) an amount equal to the original issue
    discount, or
    ``(B) if at the time of original issue there was no
    intention to call the debt instrument before maturity,
    an amount which bears the same ratio to the original
    issue discount as the number of complete months that the
    debt instrument was held by the taxpayer bears to the
    number of complete months from the date of original
    issue to the date of maturity, shall be considered as
    ordinary income.
    ``(2) Subsection (a)(2)(A) not to apply.--Subsection
    (a)(2)(A) shall not apply to any debt instrument referred to in
    paragraph (1) of this subsection.
    ``(3) Cross reference.--For current inclusion of original
    issue discount, see section 1272.''.
    (87) Amount and method of adjustment.--Section <>  1314 is amended by striking subsection (d) and by
    redesignating subsection (e) as subsection (d).
    (88) Election; revocation; termination.--Clause (iii) of
    section 1362(d)(3)(A) is amended by striking ``unless'' and all
    that follows and inserting ``unless the corporation was an S
    corporation for such taxable year.''.
    (89) Old-age, survivors, and disability insurance.--
    Subsection (a) of section 1401 is amended by striking ``the
    following percent'' and all that follows and inserting ``12.4
    percent of the amount of the self-employment income for such
    taxable year.''.
    (90) Hospital insurance.--Paragraph (1) of section 1401(b)
    is amended by striking: ``the following percent'' and all that
    follows and inserting ``2.9 percent of the amount of the self-
    employment income for such taxable year.''.
    (91) Ministers, members of religious orders, and christian
    science practitioners.--Paragraph (3) of section 1402(e) is
    amended--
    (A) by striking ``whichever of the following dates
    is later: (A)'', and
    (B) by striking ``;or (B)' '' and all that follows
    and inserting a period.
    (92) Withholding of tax on nonresident aliens.--The first
    sentence of subsection (b) of section 1441 and the first
    sentence of paragraph (5) of section 1441(c) are each amended by
    striking ``gains subject to tax'' and all that follows through
    ``October 4, 1966'' and inserting ``and gains subject to tax
    under section 871(a)(1)(D)''.
    (93) Affiliated group defined.--Subparagraph (A) of section
    1504(a)(3) is amended by striking ``for a taxable year which
    includes any period after December 31, 1984'' in clause (i) and
    by striking ``in a taxable year beginning after December 31,
    1984'' in clause (ii).

    [[Page 4051]]

    (94) Disallowance of the benefits of the graduated corporate
    rates and accumulated earnings credit.--
    (A) Subsection (a) of section 1551 <>  is amended--
    (i) by striking paragraph (1) and by
    redesignating paragraphs (2) and (3) as paragraphs
    (1) and (2), respectively, and
    (ii) by striking ``after June 12, 1963,'' each
    place it appears.
    (B) Section 1551(b) is amended--
    (i) by striking ``or (2)'' in paragraph (1),
    and
    (ii) by striking ``(a)(3)'' in paragraph (2)
    and inserting ``(a)(2)''.
    (95) Credit for state death taxes.--
    (A)(i) <>  Part II of
    subchapter A of chapter 11 is amended by striking
    section 2011 (and by striking the item relating to such
    section in the table of sections for such subpart).
    (ii) Section 2106(a)(4) is amended by striking
    ``section 2011(a)'' and inserting ``2058(a)''.
    (B)(i) <>  Subchapter A of
    chapter 13 is amended by striking section 2604 (and by
    striking the item relating to such section in the table
    of sections for such subpart).
    (ii) Clause (ii) of section 164(b)(4)(A) is amended
    by inserting ``(as in effect before its repeal)'' after
    ``section 2604''.
    (iii) Section 2654(a)(1) is amended by striking
    ``(computed without regard to section 2604)''.
    (96) Gross estate.--Subsection (c) of section 2031 is
    amended by striking paragraph (3) and by amending paragraph
    (1)(B) to read as follows:
    ``(II) $500,000.''.
    (97)(A) <>  Part IV of subchapter
    A of chapter 11 is amended by striking section 2057 (and by
    striking the item relating to such section in the table of
    sections for such subpart).
    (B) Paragraph (10) of section 2031(c) is amended by
    inserting ``(as in effect before its repeal)'' immediately
    before the period at the end thereof.
    (98) Property within the united states.--Subsection (c) of
    section 2104 is amended by striking ``With respect to estates of
    decedents dying after December 31, 1969, deposits'' and
    inserting ``Deposits''.
    (99) FICA taxes.--
    (A) Subsection (a) of section 3101 is amended by
    striking ``the following percentages'' and all that
    follows and inserting ``6.2 percent of the wages (as
    defined in section 3121(a)) received by the individual
    with respect to employment (as defined in section
    3121(b))''.
    (B)(i) Subsection (a) of section 3111 is amended by
    striking ``the following percentages'' and all that
    follows and inserting ``6.2 percent of the wages (as
    defined in section 3121(a)) paid by the employer with
    respect to employment (as defined in section
    3121(b)).''.
    (ii) Subsection (b) of section 3111 is amended by
    striking ``the following percentages'' and all that
    follows and inserting ``1.45 percent of the wages (as
    defined in section 3121(a)) paid by the employer with
    respect to employment (as defined in section
    3121(b)).''.

    [[Page 4052]]

    (C)(i) Section 3121(b) <>  is
    amended by striking paragraph (17).
    (ii) Section 210(a) of the Social Security
    Act <>  is amended by striking
    paragraph (17).
    (100) Railroad retirement.--
    (A) Subsection (b) of section 3201 is amended to
    read as follows:

    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby
    imposed on the income of each employee a tax equal to the percentage
    determined under section 3241 for any calendar year of the compensation
    received during such calendar year by such employee for services
    rendered by such employee.''.
    (B) Subsection (b) of section 3211 is amended to
    read as follows:

    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby
    imposed on the income of each employee representative a tax equal to the
    percentage determined under section 3241 for any calendar year of the
    compensation received during such calendar year by such employee
    representative for services rendered by such employee representative.''.
    (C) Subsection (b) of section 3221 is amended to
    read as follows:

    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby
    imposed on every employer an excise tax, with respect to having
    individuals in his employ, equal to the percentage determined under
    section 3241 for any calendar year of the compensation paid during such
    calendar year by such employer for services rendered to such
    employer.''.
    (D) Subsection (b) of section 3231 is amended--
    (i) by striking ``compensation; except'' and
    all that follows in the first sentence and
    inserting ``compensation.'', and
    (ii) by striking the second sentence.
    (101) Credits against federal unemployment tax.--
    (A) Paragraph (4) of section 3302(f) is amended--
    (i) by striking ``subsection--'' and all that
    follows through ``(A) In general.--The'' and
    inserting ``subsection, the'',
    (ii) by striking subparagraph (B),
    (iii) by redesignating clauses (i) and (ii) as
    subparagraphs (A) and (B), respectively, and
    (iv) by moving the text of such subparagraphs
    (as so redesignated) 2 ems to the left.
    (B) Paragraph (5) of section 3302(f) is amended by
    striking subparagraph (D) and by redesignating
    subparagraph (E) as subparagraph (D).
    (102) Domestic service employment taxes.--Section 3510(b) is
    amended by striking paragraph (4).
    (103) Luxury passenger automobiles.--
    (A) <>  Chapter
    31 is amended by striking subchapter A (and by striking
    the item relating to such subchapter in the table of
    subchapters for such chapter).
    (B)(i) Section 4221 is amended--
    (I) in subsections (a) and (d)(1), by striking
    ``subchapter A or'' and inserting ``subchapter'',

    [[Page 4053]]

    (II) in subsection (a), by striking ``In the
    case of taxes imposed by subchapter A of chapter
    31, paragraphs (1), (3), (4), and (5) shall not
    apply.'', and
    (III) in subsection (c), by striking
    ``4001(c), 4001(d), or''.
    (ii) Section 4222 <>  is amended
    by striking ``4001(c), 4001(d),''.
    (iii) Section 4293 is amended by striking
    ``subchapter A of chapter 31,''.
    (104) Transportation by air.--Section 4261(e) is amended--
    (A) in paragraph (1), by striking subparagraph (C),
    and
    (B) by striking paragraph (5).
    (105) Taxes on failure to distribute income.--
    (A) Subsection (g) of section 4942 is amended by
    striking ``For all taxable years beginning on or after
    January 1, 1975, subject'' in paragraph (2)(A) and
    inserting ``Subject''.
    (B) Section 4942(i)(2) is amended by striking
    ``beginning after December 31, 1969, and''.
    (106) Taxes on taxable expenditures.--Section 4945(f) is
    amended by striking ``(excluding therefrom any preceding taxable
    year which begins before January 1, 1970)''.
    (107) Definitions and special rules.--Section 4682(h) is
    amended--
    (A) by striking paragraph (1) and redesignating
    paragraphs (2), (3), and (4) as paragraphs (1), (2), and
    (3), respectively, and
    (B) in paragraph (1) (as so redesignated)--
    (i) by striking the heading and inserting ``In
    general'', and
    (ii) by striking ``after 1991'' in
    subparagraph (C).
    (108) Returns.--Subsection (a) of section 6039D is amended
    by striking ``beginning after December 31, 1984,''.
    (109) Information returns.--Subsection (c) of section 6060
    is amended by striking `` `year' '' and all that follows and
    inserting ``year.''.
    (110) Collection.--Section 6302 is amended--
    (A) in subsection (e)(2), by striking ``imposed by''
    and all that follows through ``with respect to'' and
    inserting ``imposed by sections 4251, 4261, or 4271 with
    respect to'',
    (B) by striking the last sentence of subsection
    (f)(1), and
    (C) in subsection (h)--
    (i) by striking paragraph (2) and
    redesignating paragraphs (3) and (4) as paragraphs
    (2) and (3), respectively, and
    (ii) by amending paragraph (3) (as so
    redesignated) to read as follows:
    ``(3) Coordination with other electronic fund transfer
    requirements.--Under regulations, any tax required to be paid by
    electronic fund transfer under section 5061(e) or 5703(b) shall
    be paid in such a manner as to ensure that the requirements of
    the second sentence of paragraph (1)(A) of this subsection are
    satisfied.''.

    [[Page 4054]]

    (111) Abatements.--Section 6404(f) <>
    is amended by striking paragraph (3).
    (112) 2008 recovery rebate for individuals.--
    (A) <>
    Subchapter B of chapter 65 is amended by striking
    section 6428 (and by striking the item relating to such
    section in the table of sections for such subchapter).
    (B) Subparagraph (A) of section 6211(b)(4) is
    amended by striking ``6428,''.
    (C) Paragraph (2) of section 6213(g), as amended by
    section 214(a)(2) of this Act and paragraphs (4) and
    (5)(C) of this subsection, is amended by striking
    subparagraph (Q), by redesignating subparagraph (O) as
    subparagraph (N), by inserting ``and'' at the end of
    subparagraph (M), and by striking the comma at the end
    of subparagraph (N) (as so redesignated) and inserting a
    period.
    (D) Paragraph (2) of section 1324(b) of title 31,
    United States Code, is amended by striking ``6428, or
    6431,'' and inserting ``or 6431''.
    (113) <>  Advance payment of
    portion of increased child credit for 2003.--Subchapter B of
    chapter 65 is amended by striking section 6429 (and by striking
    the item relating to such section in the table of sections for
    such subchapter).
    (114) Failure by corporation to pay estimated income tax.--
    Clause (i) of section 6655(g)(4)(A) is amended by striking ``(or
    the corresponding provisions of prior law)''.
    (115) Retirement.--Section 7447(i)(3)(B)(ii) is amended by
    striking ``at 4 percent per annum to December 31, 1947, and 3
    percent per annum thereafter'', and inserting ``at 3 percent per
    annum''.
    (116) Annuities to surviving spouses and dependent children
    of judges.--
    (A) Paragraph (2) of section 7448(a) is amended--
    (i) by striking ``or under section 1106 of the
    Internal Revenue Code of 1939'', and
    (ii) by striking ``or pursuant to section
    1106(d) of the Internal Revenue Code of 1939''.
    (B) Subsection (g) of section 7448 is amended by
    striking ``or other than pursuant to section 1106 of the
    Internal Revenue Code of 1939''.
    (C) Subsections (g), (j)(1), and (j)(2) of section
    7448 are each amended by striking ``at 4 percent per
    annum to December 31, 1947, and 3 percent per annum
    thereafter'' and inserting ``at 3 percent per annum''.
    (117) Merchant marine capital construction funds.--Paragraph
    (4) of section 7518(g) is amended by striking ``any nonqualified
    withdrawal'' and all that follows through `` `shall be
    determined'' and inserting ``any nonqualified withdrawal shall
    be determined''.
    (118) Valuation tables.--
    (A) Subsection (c) of section 7520 is amended by
    striking paragraph (2) and redesignating paragraph (3)
    as paragraph (2).
    (B) Paragraph (2) of section 7520(c) (as
    redesignated by subparagraph (A)) is amended--
    (i) by striking ``Not later than December 31,
    1989, the'' and inserting ``The'', and

    [[Page 4055]]

    (ii) by striking ``thereafter'' in the last
    sentence thereof.
    (119) Definition of employee.--Section <>  7701(a)(20) is amended by striking ``chapter 21'' and
    all that follows and inserting ``chapter 21.''.

    (b) <>  Effective Date.--
    (1) General rule.--Except as otherwise provided in
    subsection (a) or paragraph (2) of this subsection, the
    amendments made by this section shall take effect on the date of
    enactment of this Act.
    (2) Savings provision.--If--
    (A) any provision amended or repealed by the
    amendments made by this section applied to--
    (i) any transaction occurring before the date
    of the enactment of this Act,
    (ii) any property acquired before such date of
    enactment, or
    (iii) any item of income, loss, deduction, or
    credit taken into account before such date of
    enactment, and
    (B) the treatment of such transaction, property, or
    item under such provision would (without regard to the
    amendments or repeals made by this section) affect the
    liability for tax for periods ending after date of
    enactment, nothing in the amendments or repeals made by
    this section shall be construed to affect the treatment
    of such transaction, property, or item for purposes of
    determining liability for tax for periods ending after
    such date of enactment.

    TITLE III--JOINT COMMITTEE ON TAXATION

    SEC. 301. INCREASED REFUND AND CREDIT THRESHOLD FOR JOINT
    COMMITTEE ON TAXATION REVIEW OF C
    CORPORATION RETURN.

    (a) In General.--Subsections (a) and (b) of section 6405 are each
    amended by inserting ``($5,000,000 in the case of a C corporation)''
    after ``$2,000,000''.
    (b) <>  Effective Date.--The amendment made
    by this section shall take effect on the date of the enactment of this
    Act, except that such amendment shall not apply with respect to any
    refund or credit with respect to a report that has been made before such
    date under section 6405 of the Internal Revenue Code of 1986.

    TITLE IV--BUDGETARY EFFECTS

    SEC. 401. BUDGETARY EFFECTS.

    (a) Paygo Scorecard.--The budgetary effects of this Act shall not be
    entered on either PAYGO scorecard maintained pursuant to section 4(d) of
    the Statutory Pay-As-You-Go Act of 2010.
    (b) Senate Paygo Scorecard.--The budgetary effects of this Act shall
    not be entered on any PAYGO scorecard maintained for purposes of section
    201 of S. Con. Res. 21 (110th Congress).

    [[Page 4056]]

    DIVISION B-- <> ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014
    SEC. 1. SHORT TITLE; ETC.

    (a) <>  Short Title.--This division may be
    cited as the ``Stephen Beck, Jr., Achieving a Better Life Experience Act
    of 2014'' or the ``Stephen Beck, Jr., ABLE Act of 2014''.

    (b) Amendment of 1986 Code.--Except as otherwise expressly provided,
    whenever in this Act an amendment or repeal is expressed in terms of an
    amendment to, or repeal of, a section or other provision, the reference
    shall be considered to be made to a section or other provision of the
    Internal Revenue Code of 1986.

    TITLE I--QUALIFIED ABLE PROGRAMS

    SEC. 101. <>  PURPOSES.

    The purposes of this title are as follows:
    (1) To encourage and assist individuals and families in
    saving private funds for the purpose of supporting individuals
    with disabilities to maintain health, independence, and quality
    of life.
    (2) To provide secure funding for disability-related
    expenses on behalf of designated beneficiaries with disabilities
    that will supplement, but not supplant, benefits provided
    through private insurance, the Medicaid program under title XIX
    of the Social Security Act, the supplemental security income
    program under title XVI of such Act, the beneficiary's
    employment, and other sources.
    SEC. 102. QUALIFIED ABLE PROGRAMS.

    (a) In General.--Subchapter F of chapter 1 is amended by inserting
    after section 529 the following new section:
    ``SEC. 529A. <>  QUALIFIED ABLE PROGRAMS.

    ``(a) General Rule.--A qualified ABLE program shall be exempt from
    taxation under this subtitle. Notwithstanding the preceding sentence,
    such program shall be subject to the taxes imposed by section 511
    (relating to imposition of tax on unrelated business income of
    charitable organizations).
    ``(b) Qualified ABLE Program.--For purposes of this section--
    ``(1) <>  In general.--The term
    `qualified ABLE program' means a program established and
    maintained by a State, or agency or instrumentality thereof--
    ``(A) under which a person may make contributions
    for a taxable year, for the benefit of an individual who
    is an eligible individual for such taxable year, to an
    ABLE account which is established for the purpose of
    meeting the qualified disability expenses of the
    designated beneficiary of the account,
    ``(B) which limits a designated beneficiary to 1
    ABLE account for purposes of this section,
    ``(C) which allows for the establishment of an ABLE
    account only for a designated beneficiary who is a
    resident of such State or a resident of a contracting
    State, and

    [[Page 4057]]

    ``(D) which meets the other requirements of this
    section.
    ``(2) Cash contributions.--A program shall not be treated as
    a qualified ABLE program unless it provides that no contribution
    will be accepted--
    ``(A) unless it is in cash, or
    ``(B) except in the case of contributions under
    subsection (c)(1)(C), if such contribution to an ABLE
    account would result in aggregate contributions from all
    contributors to the ABLE account for the taxable year
    exceeding the amount in effect under section 2503(b) for
    the calendar year in which the taxable year begins.
    For <>  purposes of this paragraph, rules
    similar to the rules of section 408(d)(4) (determined without
    regard to subparagraph (B) thereof) shall apply.
    ``(3) Separate accounting.--A program shall not be treated
    as a qualified ABLE program unless it provides separate
    accounting for each designated beneficiary.
    ``(4) Limited investment direction.--A program shall not be
    treated as a qualified ABLE program unless it provides that any
    designated beneficiary under such program may, directly or
    indirectly, direct the investment of any contributions to the
    program (or any earnings thereon) no more than 2 times in any
    calendar year.
    ``(5) No pledging of interest as security.--A program shall
    not be treated as a qualified ABLE program if it allows any
    interest in the program or any portion thereof to be used as
    security for a loan.
    ``(6) Prohibition on excess contributions.--A program shall
    not be treated as a qualified ABLE program unless it provides
    adequate safeguards to prevent aggregate contributions on behalf
    of a designated beneficiary in excess of the limit established
    by the State under section 529(b)(6). For purposes of the
    preceding sentence, aggregate contributions include
    contributions under any prior qualified ABLE program of any
    State or agency or instrumentality thereof.

    ``(c) Tax Treatment.--
    ``(1) Distributions.--
    ``(A) In general.--Any distribution under a
    qualified ABLE program shall be includible in the gross
    income of the distributee in the manner as provided
    under section 72 to the extent not excluded from gross
    income under any other provision of this chapter.
    ``(B) Distributions for qualified disability
    expenses.--For purposes of this paragraph, if
    distributions from a qualified ABLE program--
    ``(i) do not exceed the qualified disability
    expenses of the designated beneficiary, no amount
    shall be includible in gross income, and
    ``(ii) in any other case, the amount otherwise
    includible in gross income shall be reduced by an
    amount which bears the same ratio to such amount
    as such expenses bear to such distributions.
    ``(C) Change in designated beneficiaries or
    programs.--

    [[Page 4058]]

    ``(i) Rollovers from able accounts.--
    Subparagraph (A) shall not apply to any amount
    paid or distributed from an ABLE account to the
    extent that the amount received is paid, not later
    than the 60th day after the date of such payment
    or distribution, into another ABLE account for the
    benefit of the same designated beneficiary or an
    eligible individual who is a family member of the
    designated beneficiary.
    ``(ii) Change in designated beneficiaries.--
    Any change in the designated beneficiary of an
    interest in a qualified ABLE program during a
    taxable year shall not be treated as a
    distribution for purposes of subparagraph (A) if
    the new beneficiary is an eligible individual for
    such taxable year and a member of the family of
    the former beneficiary.
    ``(iii) <>  Limitation on
    certain rollovers.--Clause (i) shall not apply to
    any transfer if such transfer occurs within 12
    months from the date of a previous transfer to any
    qualified ABLE program for the benefit of the
    designated beneficiary.
    ``(D) Operating rules.--For purposes of applying
    section 72--
    ``(i) except to the extent provided by the
    Secretary, all distributions during a taxable year
    shall be treated as one distribution, and
    ``(ii) except to the extent provided by the
    Secretary, the value of the contract, income on
    the contract, and investment in the contract shall
    be computed as of the close of the calendar year
    in which the taxable year begins.
    ``(2) Gift tax rules.--For purposes of chapters 12 and 13--
    ``(A) Contributions.--Any contribution to a
    qualified ABLE program on behalf of any designated
    beneficiary--
    ``(i) shall be treated as a completed gift to
    such designated beneficiary which is not a future
    interest in property, and
    ``(ii) shall not be treated as a qualified
    transfer under section 2503(e).
    ``(B) Treatment of distributions.--In no event shall
    a distribution from an ABLE account to such account's
    designated beneficiary be treated as a taxable gift.
    ``(C) Treatment of transfer to new designated
    beneficiary.--The taxes imposed by chapters 12 and 13
    shall not apply to a transfer by reason of a change in
    the designated beneficiary under subsection (c)(1)(C).
    ``(3) Additional tax for distributions not used for
    disability expenses.--
    ``(A) In general.--The tax imposed by this chapter
    for any taxable year on any taxpayer who receives a
    distribution from a qualified ABLE program which is
    includible in gross income shall be increased by 10
    percent of the amount which is so includible.
    ``(B) Exception.--Subparagraph (A) shall not apply
    if the payment or distribution is made to a beneficiary
    (or to the estate of the designated beneficiary) on or
    after the death of the designated beneficiary.

    [[Page 4059]]

    ``(C) Contributions returned before certain date.--
    Subparagraph (A) shall not apply to the distribution of
    any contribution made during a taxable year on behalf of
    the designated beneficiary if--
    ``(i) such distribution is received on or
    before the day prescribed by law (including
    extensions of time) for filing such designated
    beneficiary's return for such taxable year, and
    ``(ii) such distribution is accompanied by the
    amount of net income attributable to such excess
    contribution.
    Any net income described in clause (ii) shall be
    included in gross income for the taxable year in which
    such excess contribution was made.
    ``(4) Loss of able account treatment.--If an ABLE account is
    established for a designated beneficiary, no account
    subsequently established for such beneficiary shall be treated
    as an ABLE account. The preceding sentence shall not apply in
    the case of an account established for purposes of a rollover
    described in paragraph (1)(C)(i) of this section if the
    transferor account is closed as of the end of the 60th day
    referred to in paragraph (1)(C)(i).

    ``(d) Reports.--
    ``(1) In general.--Each officer or employee having control
    of the qualified ABLE program or their designee shall make such
    reports regarding such program to the Secretary and to
    designated beneficiaries with respect to contributions,
    distributions, the return of excess contributions, and such
    other matters as the Secretary may require.
    ``(2) <>  Certain aggregated
    information.--For research purposes, the Secretary shall make
    available to the public reports containing aggregate
    information, by diagnosis and other relevant characteristics, on
    contributions and distributions from the qualified ABLE program.
    In carrying out the preceding sentence an item may not be made
    available to the public if such item can be associated with, or
    otherwise identify, directly or indirectly, a particular
    individual.
    ``(3) Notice of establishment of able account.--A qualified
    ABLE program shall submit a notice to the Secretary upon the
    establishment of an ABLE account. Such notice shall contain the
    name and State of residence of the designated beneficiary and
    such other information as the Secretary may require.
    ``(4) Electronic distribution statements.--For purposes of
    section 4 of the Achieving a Better Life Experience Act of 2014,
    States shall submit electronically on a monthly basis to the
    Commissioner of Social Security, in the manner specified by the
    Commissioner, statements on relevant distributions and account
    balances from all ABLE accounts.
    ``(5) Requirements.--The reports and notices required by
    paragraphs (1), (2), and (3) shall be filed at such time and in
    such manner and furnished to such individuals at such time and
    in such manner as may be required by the Secretary.

    ``(e) Other Definitions and Special Rules.--For purposes of this
    section--
    ``(1) Eligible individual.--An individual is an eligible
    individual for a taxable year if during such taxable year--

    [[Page 4060]]

    ``(A) the individual is entitled to benefits based
    on blindness or disability under title II or XVI of the
    Social Security Act, and such blindness or disability
    occurred before the date on which the individual
    attained age 26, or
    ``(B) a disability certification with respect to
    such individual is filed with the Secretary for such
    taxable year.
    ``(2) Disability certification.--
    ``(A) In general.--The term `disability
    certification' means, with respect to an individual, a
    certification to the satisfaction of the Secretary by
    the individual or the parent or guardian of the
    individual that--
    ``(i) certifies that--
    ``(I) the individual has a medically
    determinable physical or mental
    impairment, which results in marked and
    severe functional limitations, and which
    can be expected to result in death or
    which has lasted or can be expected to
    last for a continuous period of not less
    than 12 months, or is blind (within the
    meaning of section 1614(a)(2) of the
    Social Security Act), and
    ``(II) such blindness or disability
    occurred before the date on which the
    individual attained age 26, and
    ``(ii) includes a copy of the individual's
    diagnosis relating to the individual's relevant
    impairment or impairments, signed by a physician
    meeting the criteria of section 1861(r)(1) of the
    Social Security Act.
    ``(B) Restriction on use of certification.--No
    inference may be drawn from a disability certification
    for purposes of establishing eligibility for benefits
    under title II, XVI, or XIX of the Social Security Act.
    ``(3) Designated beneficiary.--The term `designated
    beneficiary' in connection with an ABLE account established
    under a qualified ABLE program means the eligible individual who
    established an ABLE account and is the owner of such account.
    ``(4) Member of family.--The term `member of the family'
    means, with respect to any designated beneficiary, an individual
    who bears a relationship to such beneficiary which is described
    in subparagraph section 152(d)(2)(B). For purposes of the
    preceding sentence, a rule similar to the rule of section
    152(f)(1)(B) shall apply.
    ``(5) Qualified disability expenses.--The term `qualified
    disability expenses' means any expenses related to the eligible
    individual's blindness or disability which are made for the
    benefit of an eligible individual who is the designated
    beneficiary, including the following expenses: education,
    housing, transportation, employment training and support,
    assistive technology and personal support services, health,
    prevention and wellness, financial management and administrative
    services, legal fees, expenses for oversight and monitoring,
    funeral and burial expenses, and other expenses, which are
    approved by the Secretary under regulations and consistent with
    the purposes of this section.
    ``(6) ABLE account.--The term `ABLE account' means an
    account established by an eligible individual, owned by such

    [[Page 4061]]

    eligible individual, and maintained under a qualified ABLE
    program.
    ``(7) Contracting state.--The term `contracting State' means
    a State without a qualified ABLE program which has entered into
    a contract with a State with a qualified ABLE program to provide
    residents of the contracting State access to a qualified ABLE
    program.

    ``(f) Transfer to State.--Subject to any outstanding payments due
    for qualified disability expenses, upon the death of the designated
    beneficiary, all amounts remaining in the qualified ABLE account not in
    excess of the amount equal to the total medical assistance paid for the
    designated beneficiary after the establishment of the account, net of
    any premiums paid from the account or paid by or on behalf of the
    beneficiary to a Medicaid Buy-In program under any State Medicaid plan
    established under title XIX of the Social Security Act, shall be
    distributed to such State upon filing of a claim for payment by such
    State. For purposes of this paragraph, the State shall be a creditor of
    an ABLE account and not a beneficiary. Subsection (c)(3) shall not apply
    to a distribution under the preceding sentence.
    ``(g) Regulations.--The Secretary shall prescribe such regulations
    or other guidance as the Secretary determines necessary or appropriate
    to carry out the purposes of this section, including regulations--
    ``(1) to enforce the 1 ABLE account per eligible individual
    limit,
    ``(2) providing for the information required to be presented
    to open an ABLE account,
    ``(3) to generally define qualified disability expenses,
    ``(4) developed in consultation with the Commissioner of
    Social Security, relating to disability certifications and
    determinations of disability, including those conditions deemed
    to meet the requirements of subsection (e)(1)(B),
    ``(5) to prevent fraud and abuse with respect to amounts
    claimed as qualified disability expenses,
    ``(6) under chapters 11, 12, and 13 of this title, and
    ``(7) to allow for transfers from one ABLE account to
    another ABLE account.''.

    (b) Tax on Excess Contributions.--
    (1) In general.--Subsection (a) of section 4973 <>  (relating to tax on excess contributions to certain
    tax-favored accounts and annuities) is amended by striking
    ``or'' at the end of paragraph (4), by inserting ``or'' at the
    end of paragraph (5), and by inserting after paragraph (5) the
    following new paragraph:
    ``(6) an ABLE account (within the meaning of section
    529A),''.
    (2) Excess contribution.--Section 4973 is amended by adding
    at the end the following new subsection:

    ``(h) Excess Contributions to ABLE Account.--For purposes of this
    section--
    ``(1) In general.--In the case of an ABLE account (within
    the meaning of section 529A), the term `excess contributions'
    means the amount by which the amount contributed for the taxable
    year to such account (other than contributions under section
    529A(c)(1)(C)) exceeds the contribution limit under section
    529A(b)(2)(B).

    [[Page 4062]]

    ``(2) <>  Special rule.--For purposes
    of this subsection, any contribution which is distributed out of
    the ABLE account in a distribution to which the last sentence of
    section 529A(b)(2) applies shall be treated as an amount not
    contributed.''.

    (c) <>  Penalty for Failure to File Reports.--
    Section 6693(a)(2) is amended by striking ``and'' at the end of
    subparagraph (D), by redesignating subparagraph (E) as subparagraph (F),
    and by inserting after subparagraph (D) the following:
    ``(E) section 529A(d) (relating to qualified ABLE
    programs), and''.

    (d) Records.--Section 552a(a)(8)(B) of title 5, United States Code,
    is amended--
    (1) in clause (viii), by striking ``or'' at the end;
    (2) in clause (ix), by adding ``or'' at the end; and
    (3) by adding at the end the following new clause:
    ``(x) matches performed pursuant to section
    3(d)(4) of the Achieving a Better Life Experience
    Act of 2014;''.

    (e) Other Conforming Amendments.--
    (1) Section 26(b)(2) is amended by striking ``and'' at the
    end of subparagraph (W), by striking the period at the end of
    subparagraph (X) and inserting ``, and'', and by inserting after
    subparagraph (X) the following:
    ``(Y) section 529A(c)(3)(A) (relating to additional
    tax on ABLE account distributions not used for qualified
    disability expenses).''.
    (2) Section 877A is amended--
    (A) in subsection (e)(2) by inserting ``a qualified
    ABLE program (as defined in section 529A),'' after
    ``529),'', and
    (B) in subsection (g)(6) by inserting
    ``529A(c)(3),'' after ``529(c)(6),''.
    (3) Section 4965(c) is amended by striking ``or'' at the end
    of paragraph (6), by striking the period at the end of paragraph
    (7) and inserting ``, or'', and by inserting after paragraph (7)
    the following new paragraph:
    ``(8) a program described in section 529A.''.
    (4) <>  The heading for part VIII
    of subchapter F of chapter 1 is amended by striking ``higher
    education'' and inserting ``certain''.
    (5) The item in the table of parts for subchapter F of
    chapter 1 relating to part VIII <>  is
    amended to read as follows:

    ``Part VIII. Certain Savings Entities.''.

    (6) The table of sections for part VIII of subchapter F of
    chapter 1 <>  is amended by inserting
    after the item relating to section 529 the following new item:

    ``Sec. 529A. Qualified ABLE programs.''.

    (7) Paragraph (4) of section 1027(g) of the Consumer
    Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is
    amended by inserting ``, 529A'' after ``529''.

    (f) <>  Effective Date.--
    (1) In general.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2014.
    (2) <>  Regulations.--The Secretary
    of the Treasury (or the Secretary's designee) shall promulgate
    the regulations or other

    [[Page 4063]]

    guidance required under section 529A(g) of the Internal Revenue
    Code of 1986, as added by subsection (a), not later than 6
    months after the date of the enactment of this Act.
    SEC. 103. <>  TREATMENT OF ABLE ACCOUNTS
    UNDER CERTAIN FEDERAL PROGRAMS.

    (a) Account Funds Disregarded for Purposes of Certain Other Means-
    Tested Federal Programs.--Notwithstanding any other provision of Federal
    law that requires consideration of 1 or more financial circumstances of
    an individual, for the purpose of determining eligibility to receive, or
    the amount of, any assistance or benefit authorized by such provision to
    be provided to or for the benefit of such individual, any amount
    (including earnings thereon) in the ABLE account (within the meaning of
    section 529A of the Internal Revenue Code of 1986) of such individual,
    any contributions to the ABLE account of the individual, and any
    distribution for qualified disability expenses (as defined in subsection
    (e)(5) of such section) shall be disregarded for such purpose with
    respect to any period during which such individual maintains, makes
    contributions to, or receives distributions from such ABLE account,
    except that, in the case of the supplemental security income program
    under title XVI of the Social Security Act--
    (1) a distribution for housing expenses (within the meaning
    of such subsection) shall not be so disregarded, and
    (2) in the case of such program, any amount (including such
    earnings) in such ABLE account shall be considered a resource of
    the designated beneficiary to the extent that such amount
    exceeds $100,000.

    (b) Suspension of SSI Benefits During Periods of Excessive Account
    Funds.--
    (1) In general.--The benefits of an individual under the
    supplemental security income program under title XVI of the
    Social Security Act shall not be terminated, but shall be
    suspended, by reason of excess resources of the individual
    attributable to an amount in the ABLE account (within the
    meaning of section 529A of the Internal Revenue Code of 1986) of
    the individual not disregarded under subsection (a) of this
    section.
    (2) No impact on medicaid eligibility.--An individual who
    would be receiving payment of such supplemental security income
    benefits but for the application of paragraph (1) shall be
    treated for purposes of title XIX of the Social Security Act as
    if the individual continued to be receiving payment of such
    benefits.

    (c) Effective Date.--This section shall take effect on the date of
    the enactment of this Act.
    SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.

    (a) Exclusion From Property of the Estate.--Section 541(b) of the
    title 11, United States Code, is amended--
    (1) in paragraph (8), by striking ``or'' at the end;
    (2) in paragraph (9), by striking the period at the end and
    inserting a semicolon and ``or''; and
    (3) by inserting after paragraph (9) the following:
    ``(10) <>  funds placed in an account of a
    qualified ABLE program (as defined in section 529A(b) of the
    Internal Revenue Code of 1986) not later than 365 days before
    the date of the filing of the petition in a case under this
    title, but--

    [[Page 4064]]

    ``(A) only if the designated beneficiary of such
    account was a child, stepchild, grandchild, or
    stepgrandchild of the debtor for the taxable year for
    which funds were placed in such account;
    ``(B) only to the extent that such funds--
    ``(i) are not pledged or promised to any
    entity in connection with any extension of credit;
    and
    ``(ii) are not excess contributions (as
    described in section 4973(h) of the Internal
    Revenue Code of 1986); and
    ``(C) <>  in the case of funds
    placed in all such accounts having the same designated
    beneficiary not earlier than 720 days nor later than 365
    days before such date, only so much of such funds as
    does not exceed $6,225.''.

    (b) Debtor's Monthly Expenses.--Section 707(b)(2)(A)(ii)(II) of
    title 11, United States Code, is amended by adding at the end ``Such
    monthly expenses may include, if applicable, contributions to an account
    of a qualified ABLE program to the extent such contributions are not
    excess contributions (as described in section 4973(h) of the Internal
    Revenue Code of 1986) and if the designated beneficiary of such account
    is a child, stepchild, grandchild, or stepgrandchild of the debtor.''.
    (c) Record of Debtor's Interest.--Section 521(c) of title 11, United
    States Code, is amended by inserting ``, an interest in an account in a
    qualified ABLE program (as defined in section 529A(b) of such Code,''
    after ``Internal Revenue Code of 1986)''.
    (d) <>  Effective Date.--The amendments made
    by this section shall apply with respect to cases commenced under title
    11, United States Code, on or after the date of the enactment of this
    Act.
    SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.

    (a) Amendments Relating to Investment Direction Rule for 529
    Plans.--
    (1) Paragraph (4) of section 529(b) <>
    is amended by striking ``may not directly or indirectly'' and
    all that follows and inserting ``may, directly or indirectly,
    direct the investment of any contributions to the program (or
    any earnings thereon) no more than 2 times in any calendar
    year.''.
    (2) The heading of paragraph (4) of section 529(b) is
    amended by striking ``No'' and inserting ``Limited''.

    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2014.

    TITLE II--OFFSETS

    SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.

    (a) Retirement Age.--Section 224(a) of the Social Security Act (42
    U.S.C. 424a(a)) is amended, in the matter preceding paragraph (1), by
    striking ``the age of 65'' and inserting ``retirement age (as defined in
    section 216(l)(1))''.
    (b) <>  Effective Date.--The amendment made
    by subsection (a) shall apply with respect to any individual who attains
    65 years of age on or after the date that is 12 months after the date of
    the enactment of this Act.

    [[Page 4065]]

    SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS FOR
    MISVALUED SERVICES IN THE MEDICARE
    PHYSICIAN FEE SCHEDULE.

    Section 1848(c) of the Social Security Act (42 U.S.C. 1395w-4(c)) is
    amended--
    (1) in subclause (VIII) of paragraph (2)(B)(v), as added by
    section 220(d)(2) of the Protecting Access to Medicare Act of
    2014 (Public Law 113-93)--
    (A) by striking ``2017'' and inserting ``2016''; and
    (B) by redesignating such subclause as subclause
    (IX);
    (2) in paragraph (2)(O)--
    (A) in the matter preceding clause (i), by striking
    ``2017 through 2020'' and inserting ``2016 through
    2018'';
    (B) in clause (iii), by striking ``2017'' and
    inserting ``2016''; and
    (C) in clause (v), by inserting ``(or, for 2016, 1.0
    percent)'' after ``0.5 percent''; and
    (3) in paragraph (7), by striking ``2017'' and inserting
    ``2016''.
    SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN
    MEDICARE PARTS B AND D.

    Section 1834(a)(1) of the Social Security Act (42 U.S.C.
    1395m(a)(1)) is amended by adding at the end the following new
    subparagraph:
    ``(I) <>  Treatment of vacuum
    erection systems.--Effective for items and services
    furnished on and after July 1, 2015, vacuum erection
    systems described as prosthetic devices described in
    section 1861(s)(8) shall be treated in the same manner
    as erectile dysfunction drugs are treated for purposes
    of section 1860D-2(e)(2)(A).''.
    SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY POLICY
    UNDER MEDICARE ESRD PROSPECTIVE PAYMENT
    SYSTEM.

    Section 632(b)(1) of the American Taxpayer Relief Act of 2012 (42
    U.S.C. 1395rr note), as amended by section 217(a)(1) of the Protecting
    Access to Medicare Act of 2014 (Public Law 113-93), is amended by
    striking ``2024'' and inserting ``2025''.
    SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST FUND
    FINANCING RATE.

    (a) <>  In General.--Section 4042(b)(2)(A) 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 fuel used after March 31, 2015.
    SEC. 206. 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

    [[Page 4066]]

    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) <>  the exemptions, exclusions,
    definitions, and other rules which are based on type of employer
    and 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) <>  the exemptions, exclusions,
    definitions, and other rules which are based on 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 and the
    Secretary 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),

    [[Page 4067]]

    ``(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), and
    ``(H) 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 (including
    a partner in a partnership that is a customer) is not a work site
    employee with respect to remuneration paid by a certified professional
    employer organization.
    ``(g) <>  Reporting
    Requirements and Obligations.--The Secretary shall develop such
    reporting and recordkeeping rules, regulations, and procedures as the
    Secretary determines necessary or appropriate to ensure compliance with
    this title by certified professional employer organizations or persons
    that have been so certified. Such rules shall include--
    ``(1) notification of the Secretary in such manner as the
    Secretary shall prescribe in the case of the commencement or
    termination of a service contract described in section
    7705(e)(2) between such a person and a customer, and the
    employer identification number of such customer,
    ``(2) such information as the Secretary determines necessary
    for the customer to claim the credits identified in subsection
    (d) and the manner in which such information is to be provided,
    as prescribed by the Secretary, and
    ``(3) such other information as the Secretary determines is
    essential to promote compliance with respect to the credits
    identified in subsection (d) and section 3302, and

    shall be designed in a manner which streamlines, to the extent possible,
    the application of requirements of this section and section 7705, 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.
    ``(h) 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.

    ``(a) <>  In General.--For purposes of this
    title, the term `certified professional employer organization' means a
    person who applies to be treated as a certified professional employer
    organization for purposes of section 3511 and has been certified by the
    Secretary as meeting the requirements of subsection (b).

    [[Page 4068]]

    ``(b) Certification Requirements.--A person meets the requirements
    of this subsection if such person--
    ``(1) demonstrates that such person (and any owner, officer,
    and other persons as may be specified in regulations) meets such
    requirements as the Secretary shall establish, including
    requirements with respect to tax status, background, experience,
    business location, and annual financial audits,
    ``(2) agrees that it will satisfy the bond and independent
    financial review requirements of subsection (c) on an ongoing
    basis,
    ``(3) agrees that it will satisfy such reporting obligations
    as may be imposed by the Secretary,
    ``(4) computes its taxable income using an accrual method of
    accounting unless the Secretary approves another method,
    ``(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 the continuing
    accuracy of any agreement or information that was previously
    made or provided under this subsection.

    ``(c) Bond and Independent Financial Review.--
    ``(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) that is 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 audit 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 as to whether
    the certified professional employer organization's
    financial statements are presented fairly in accordance
    with generally accepted accounting principles, and
    ``(B) provides to the Secretary an assertion
    regarding Federal employment tax payments and an
    examination

    [[Page 4069]]

    level attestation on such assertion from an independent
    certified public accountant not later than the last day
    of the second month beginning after the end of each
    calendar quarter.
    Such assertion shall state that the organization has withheld
    and made deposits of all taxes imposed by chapters 21, 22, and
    24 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 certified
    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) Audit date.--For purposes of paragraph (3)(A), the
    audit date shall be six 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 agreements
    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 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
    certified professional employer organization to provide,
    without regard

    [[Page 4070]]

    to the receipt or adequacy of payment from the customer
    for such benefits,
    ``(D) assume responsibility for recruiting, hiring,
    and firing workers in addition to the customer's
    responsibility for recruiting, hiring, and firing
    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) Public Disclosure.--The Secretary shall make available to the
    public the name and address of--
    ``(1) each person certified as a professional employer
    organization under subsection (a), and
    ``(2) each person whose certification as a professional
    employer organization is suspended or revoked under subsection
    (d).

    ``(g) 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.
    ``(h) 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 wages paid to a work site
    employee, such certified professional employer 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

    [[Page 4071]]

    (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
    and the Secretary any information the Secretary prescribes as
    necessary to complete such reporting no later than such time as
    the Secretary shall prescribe.''.
    (4) Section 6652 is amended by adding at the end the
    following new subsection:

    ``(n) Failure to Make Reports Required Under Sections 3511,
    6053(c)(8), and 7705.--In the case of a failure to make a report
    required under section 3511, 6053(c)(8), or 7705 which contains the
    information required by such section on the date prescribed therefor
    (determined with regard to any extension of time for filing), there
    shall be paid (on notice and demand by the Secretary and in the same
    manner as tax) by the person failing to make such report, an amount
    equal to $50 for each report with respect to which there was such a
    failure. <>  In the case of any failure due to
    negligence or intentional disregard the preceding sentence shall be
    applied by substituting `$100' for `$50'.''.

    (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.''.

    (f) User Fees.--Section 7528(b) is amended by adding at the end the
    following new paragraph:
    ``(4) Certified professional employer organizations.--The
    fee charged under the program in connection with the
    certification by the Secretary of a professional employer
    organization under section 7705 shall be an annual fee not to
    exceed $1,000 per year.''.

    (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

    [[Page 4072]]

    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.
    SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN
    CORPORATIONS FROM THE DEFINITION OF
    PERSONAL HOLDING COMPANY INCOME FOR
    PURPOSES OF THE PERSONAL HOLDING COMPANY
    RULES.

    (a) In General.--Section 543(a)(1) is <>
    amended--
    (1) by redesignating subparagraphs (C) and (D) as
    subparagraphs (D) and (E), respectively, and
    (2) by inserting after subparagraph (B) the following:
    ``(C) dividends received by a United States
    shareholder (as defined in section 951(b)) from a
    controlled foreign corporation (as defined in section
    957(a)),''.

    (b) <>  Effective Date.--The amendments made
    by this Act shall apply to taxable years ending on or after the date of
    the enactment of this Act.
    SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES UNDER
    THE INTERNAL REVENUE CODE OF 1986.

    (a) Failure To File Tax Return or Pay Tax.--Section 6651 is amended
    by adding at the end the following new subsection:
    ``(i) Adjustment for Inflation.--
    ``(1) <>  In general.--In the case of
    any return required to be filed in a calendar year beginning
    after 2014, the $135 dollar amount under subsection (a) shall be
    increased by such dollar amount multiplied by the cost-of-living
    adjustment determined under section 1(f)(3) determined by
    substituting `calendar year 2013' for `calendar year 1992' in
    subparagraph (B) thereof.
    ``(2) Rounding.--If any amount adjusted under paragraph (1)
    is not a multiple of $5, such amount shall be rounded to the
    next lowest multiple of $5.''.

    (b) Failure To File Certain Information Returns, Registration
    Statements, ETC.--
    (1) In general.--Section 6652(c) is amended by adding at the
    end the following new paragraph:
    ``(6) Adjustment for inflation.--
    ``(A) <>  In general.--In the
    case of any failure relating to a return required to be
    filed in a calendar year beginning after 2014, each of
    the dollar amounts under paragraphs (1), (2), and (3)
    shall be increased by such dollar amount multiplied by
    the cost-of-living adjustment determined under section
    1(f)(3) determined by substituting `calendar year 2013'
    for `calendar year 1992' in subparagraph (B) thereof.
    ``(B) Rounding.--If any amount adjusted under
    subparagraph (A)--
    ``(i) is not less than $5,000 and is not a
    multiple of $500, such amount shall be rounded to
    the next lowest multiple of $500, and
    ``(ii) is not described in clause (i) and is
    not a multiple of $5, such amount shall be rounded
    to the next lowest multiple of $5.''.
    (2) Conforming amendments.--

    [[Page 4073]]

    (A) The last sentence of section <>  6652(c)(1)(A) is amended by
    striking ``the first sentence of this subparagraph shall
    be applied by substituting `$100' for `$20' and'' and
    inserting ``in applying the first sentence of this
    subparagraph, the amount of the penalty for each day
    during which a failure continues shall be $100 in lieu
    of the amount otherwise specified, and''.
    (B) Section 6652(c)(2)(C)(ii) is amended by striking
    ``the first sentence of paragraph (1)(A)'' and all that
    follows and inserting ``in applying the first sentence
    of paragraph (1)(A), the amount of the penalty for each
    day during which a failure continues shall be $100 in
    lieu of the amount otherwise specified, and in lieu of
    applying the second sentence of paragraph (1)(A), the
    maximum penalty under paragraph (1)(A) shall not exceed
    $50,000, and''.

    (c) Other Assessable Penalties With Respect to the Preparation of
    Tax Returns for Other Persons.--Section 6695 is amended by adding at the
    end the following new subsection:
    ``(h) Adjustment for Inflation.--
    ``(1) <>  In general.--In the case of
    any failure relating to a return or claim for refund filed in a
    calendar year beginning after 2014, each of the dollar amounts
    under subsections (a), (b), (c), (d), (e), (f), and (g) shall be
    increased by such dollar amount multiplied by the cost-of-living
    adjustment determined under section 1(f)(3) determined by
    substituting `calendar year 2013' for `calendar year 1992' in
    subparagraph (B) thereof.
    ``(2) Rounding.--If any amount adjusted under subparagraph
    (A)--
    ``(A) is not less than $5,000 and is not a multiple
    of $500, such amount shall be rounded to the next lowest
    multiple of $500, and
    ``(B) is not described in clause (i) and is not a
    multiple of $5, such amount shall be rounded to the next
    lowest multiple of $5.''.

    (d) Failure To File Partnership Return.--Section 6698 is amended by
    adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
    ``(1) <>  In general.--In the case of
    any return required to be filed in a calendar year beginning
    after 2014, the $195 dollar amount under subsection (b)(1) shall
    be increased by such dollar amount multiplied by the cost-of-
    living adjustment determined under section 1(f)(3) determined by
    substituting `calendar year 2013' for `calendar year 1992' in
    subparagraph (B) thereof.
    ``(2) Rounding.--If any amount adjusted under paragraph (1)
    is not a multiple of $5, such amount shall be rounded to the
    next lowest multiple of $5.''.

    (e) Failure To File S Corporation Return.--Section 6699 is amended
    by adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
    ``(1) <>  In general.--In the case of
    any return required to be filed in a calendar year beginning
    after 2014, the $195 dollar amount under subsection (b)(1) shall
    be increased by such dollar amount multiplied by the cost-of-
    living adjustment determined under section 1(f)(3) determined by
    substituting `calendar year 2013' for `calendar year 1992' in
    subparagraph (B) thereof.

    [[Page 4074]]

    ``(2) Rounding.--If any amount adjusted under paragraph (1)
    is not a multiple of $5, such amount shall be rounded to the
    next lowest multiple of $5.''.

    (f) Failure To File Correct Information Returns.--Section
    6721(f)(1) <>  is amended by striking ``For each
    fifth calendar year beginning after 2012'' and inserting ``In the case
    of any failure relating to a return required to be filed in a calendar
    year beginning after 2014''.

    (g) Failure To Furnish Correct Payee Statements.--Section 6722(f)(1)
    is amended by striking ``For each fifth calendar year beginning after
    2012'' and inserting ``In the case of any failure relating to a
    statement required to be furnished in a calendar year beginning after
    2014''.
    (h) <>  Effective Date.--The amendments
    made by this section shall apply to returns required to be filed after
    December 31, 2014.
    SEC. 209. INCREASE IN CONTINUOUS LEVY.

    (a) In General.--Paragraph (3) of section 6331(h) is amended by
    striking the period at the end and inserting ``and by substituting `30
    percent' for `15 percent' in the case of any specified payment due to a
    Medicare provider or supplier under title XVIII of the Social Security
    Act.''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to payments made after 180 days after the
    date of the enactment of this Act.

    Approved December 19, 2014.

    LEGISLATIVE HISTORY--H.R. 5771:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 160 (2014):
    Dec. 3, considered and passed House.
    Dec. 16, considered and passed Senate.