To permanently extend tax relief and repeal certain tax increases.

Summary: American Opportunity and Freedom Act of 2012 - Repeals the terminating date (i.e., December 31, 2012) of: (1) the Economic Growth and Tax Relief Reconciliation Act of 2001, thus making such Act permanent; and (2) provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 reducing tax rates on dividends and capital gains.

Repeals the estate and generation-skipping transfer taxes for decedents dying and transfers made after December 31, 2010.

Repeals the alternative minimum tax (AMT) for individuals for taxable years beginning after 2010.

Repeals: (1) the increase in the excise tax rate on tobacco products, and (2) revenue offset provisions of the Patient Protection and Affordable Care Act (PPACA) and other tax provisions relating to the individual and employer mandate requiring the purchase of health insurance under PPACA.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) In General.--This Act may be cited as the ``American 
Opportunity and Freedom Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
           TITLE I--PERMANENT EXTENSION OF INCOME TAX RELIEF

Sec. 101. Repeal of EGTRRA sunset.
Sec. 102. Repeal of JGTRRA sunset.
Sec. 103. Technical and conforming amendments.
 TITLE II--PERMANENT REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER 
                                 TAXES

Sec. 201. Repeal of estate and generation-skipping transfer taxes.
              TITLE III--REPEAL OF ALTERNATIVE MINIMUM TAX

Sec. 301. Repeal of individual alternative minimum tax.
        TITLE IV--REPEAL OF TOBACCO PRODUCT EXCISE TAX INCREASE

Sec. 401. Repeal of tobacco product excise tax increase.
  TITLE V--REPEAL OF TAX INCREASES RELATING TO PATIENT PROTECTION AND 
                          AFFORDABLE CARE ACT

Sec. 501. Repeal of revenue provisions relating to PPACA.
Sec. 502. Repeal of tax provisions relating to individual mandate.
Sec. 503. Repeal of tax provisions relating to employer mandate.

           TITLE I--PERMANENT EXTENSION OF INCOME TAX RELIEF

SEC. 101. REPEAL OF EGTRRA SUNSET.

    Section 901 of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 is repealed.

SEC. 102. REPEAL OF JGTRRA SUNSET.

    Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 
2003 is repealed.

SEC. 103. TECHNICAL AND CONFORMING AMENDMENTS.

    The Secretary of the Treasury or the Secretary's delegate shall, 
not later than 90 days after the date of the enactment of this Act, 
submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a draft of 
any technical and conforming changes in the Internal Revenue Code of 
1986 which are necessary to reflect throughout such Code the purposes 
of the provisions of, and amendments made by, this Act.

 TITLE II--PERMANENT REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER 
                                 TAXES

SEC. 201. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER TAXES.

    (a) Estate Tax Repeal.--Subchapter C of chapter 11 of subtitle B 
(relating to miscellaneous) is amended by adding at the end the 
following new section:

``SEC. 2210. TERMINATION.

    ``(a) In General.--Except as provided in subsection (b), this 
chapter shall not apply to the estates of decedents dying after 
December 31, 2010.
    ``(b) Certain Distributions From Qualified Domestic Trusts.--In 
applying section 2056A with respect to the surviving spouse of a 
decedent dying on or before December 31, 2010--
            ``(1) section 2056A(b)(1)(A) shall not apply to 
        distributions made more than 10 years after such date, and
            ``(2) section 2056A(b)(1)(B) shall not apply on or after 
        such date.''.
    (b) Generation-Skipping Transfer Tax Repeal.--Subchapter G of 
chapter 13 of subtitle B (relating to administration) is amended by 
adding at the end the following new section:

``SEC. 2664. TERMINATION.

    ``This chapter shall not apply to generation-skipping transfers 
after December 31, 2010.''.
    (c) Conforming Amendments.--
            (1) The table of sections for subchapter C of chapter 11 is 
        amended by adding at the end the following new item:

``Sec. 2210. Termination.''.
            (2) The table of sections for subchapter G of chapter 13 is 
        amended by adding at the end the following new item:

``Sec. 2664. Termination.''.
    (d) Carryover Basis at Death and Other Changes Taking Effect With 
Repeal.--So much of section 301 of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 (relating to 
reinstatement of estate tax; repeal of carryover basis) as relates to 
the provisions of law amended by subtitle E of title V of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 shall not apply to 
estates of decedents dying, and transfers made, on or after the date of 
the enactment of this Act.
    (e) Sunset Not Applicable.--Section 304 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is 
hereby repealed.
    (f) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and generation-skipping 
transfers, after December 31, 2010.

              TITLE III--REPEAL OF ALTERNATIVE MINIMUM TAX

SEC. 301. REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM TAX.

    (a) In General.--Subsection (a) of section 55 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
flush sentence:
``Except in the case of a corporation, no tax shall be imposed by this 
section for any taxable year beginning after December 31, 2010, and the 
tentative minimum tax of any taxpayer other than a corporation for any 
such taxable year shall be zero for purposes of this title.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2010.

        TITLE IV--REPEAL OF TOBACCO PRODUCT EXCISE TAX INCREASE

SEC. 401. REPEAL OF TOBACCO PRODUCT EXCISE TAX INCREASE.

    (a) In General.--Each provision of the Internal Revenue Code of 
1986 amended by section 701 of the Children's Health Insurance Program 
Reauthorization Act of 2009 is amended as such provision would read if 
such section had never been enacted.
    (b) Floor Stocks Refund.--
            (1) In general.--On tobacco products and cigarette papers 
        and tubes manufactured in or imported into the United States 
        which are removed on or before the date of the enactment of 
        this Act, and held on such date for sale by any person, there 
        shall be credited or refunded (without interest) to the person 
        who paid such tax (hereafter in this subsection referred to as 
        the ``taxpayer'') an amount equal to the excess of the tax paid 
        by the taxpayer on the article over the amount of such tax 
        which would be imposed on such article had the article been 
        removed on the day after the date of the enactment of this Act.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless claim therefor is 
        filed with the Secretary of the Treasury before the date which 
        is 6 months after the date of the enactment of this Act.
            (3) Definitions.--Any term used in this subsection which is 
        also used in section 5702 of the Internal Revenue Code of 1986 
        shall have the same meaning as such term has in such section.
            (4) Controlled groups.--Rules similar to the rules of 
        section 5061(e)(3) of such Code shall apply for purposes of 
        this subsection.
    (c) Effective Date.--The amendments made by this section shall 
apply to articles removed (as defined in section 5702(j) of the 
Internal Revenue Code of 1986) after the date of the enactment of this 
Act.

  TITLE V--REPEAL OF TAX INCREASES RELATING TO PATIENT PROTECTION AND 
                          AFFORDABLE CARE ACT

SEC. 501. REPEAL OF REVENUE PROVISIONS RELATING TO PPACA.

    Effective on the date of the enactment of this Act, subtitle F of 
title I and title IX of the Patient Protection and Affordable Care Act, 
as each is amended by title X of such Act, are repealed, and the 
Internal Revenue Code of 1986 shall be applied as if such subtitle F 
and such title IX had never been enacted.

SEC. 502. REPEAL OF TAX PROVISIONS RELATING TO INDIVIDUAL MANDATE.

    Effective on the date of the enactment of this Act, section 5000A 
of the Internal Revenue Code of 1986, section 6055 of such Code, 
section 1502(c) of the Patient Protection and Affordable Care Act, and 
any amendments made by section 1502(b) of such Act are repealed, and 
the Internal Revenue Code of 1986 shall be applied as if such 
provisions had never been enacted.

SEC. 503. REPEAL OF TAX PROVISIONS RELATING TO EMPLOYER MANDATE.

    Effective on the date of the enactment of this Act, section 4980H 
of the Internal Revenue Code of 1986, section 6056 of such Code, 
section 1513(c) of the Patient Protection and Affordable Care Act, and 
any amendments made by section 1514(b) of such Act are repealed, and 
the Internal Revenue Code of 1986 shall be applied as if such 
provisions had never been enacted.