PUBLIC LAW 113–295—DEC. 19, 2014 

TAX INCREASE PREVENTION AMENDMENTS 


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128 STAT. 4010 PUBLIC LAW 113–295—DEC. 19, 2014 

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. 

26 USC 1 note. 

Tax Increase 

Prevention Act 

of 2014. 

Dec. 19, 2014 

[H.R. 5771] 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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. 


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128 STAT. 4012 PUBLIC LAW 113–295—DEC. 19, 2014 

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’’. 

26 USC 62. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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’’. 

26 USC 222 note. 

26 USC 170 note. 

26 USC 164 note. 

26 USC 163 note. 

26 USC 132 note. 

26 USC 108 note. 

26 USC 108. 

26 USC 62 note. 


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128 STAT. 4014 PUBLIC LAW 113–295—DEC. 19, 2014 

(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. 

26 USC 45G 

note. 

26 USC 45D 

note. 

26 USC 142 note. 

26 USC 142 note. 

26 USC 42 note. 

26 USC 41 note. 

26 USC 41. 

26 USC 408 note. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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. 

26 USC 168 note. 

26 USC 168 note. 

26 USC 168 note. 

26 USC 54E note. 

26 USC 51 note. 

26 USC 45P. 

26 USC 45N 

note. 

26 USC 45N. 


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128 STAT. 4016 PUBLIC LAW 113–295—DEC. 19, 2014 

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 

26 USC 168 note. 

26 USC 168. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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’’. 

26 USC 170 note. 

26 USC 168 note. 

26 USC 168. 


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128 STAT. 4018 PUBLIC LAW 113–295—DEC. 19, 2014 

(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. 

26 USC 897 note. 

26 USC 871 note. 

26 USC 512 note. 

26 USC 199 note. 

26 USC 181 note. 

26 USC 179E 

note. 

26 USC 179E. 

26 USC 179 note. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 4019 

(2) AMOUNTS WITHHELD ON OR BEFORE DATE OF ENACT- MENT.—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’’. 

26 USC 1202 

note. 

26 USC 954 note. 

26 USC 953 note. 

26 USC 953. 


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128 STAT. 4020 PUBLIC LAW 113–295—DEC. 19, 2014 

(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. 

26 USC 30A note. 

26 USC 30A note. 

26 USC 7652 

note. 

26 USC 1391 

note. 

26 USC 1391 

note. 

26 USC 1367 

note. 

26 USC 1374. 

26 USC 1367 

note. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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’’. 

26 USC 48 note. 

26 USC 45 note. 

26 USC 40A note. 

26 USC 40 note. 

26 USC 25C note. 

26 USC 25C. 


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128 STAT. 4022 PUBLIC LAW 113–295—DEC. 19, 2014 

(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). 

26 USC 6426 (d) EFFECTIVE DATES.— note. 

26 USC 451 note. 

26 USC 179D 

note. 

26 USC 168 note. 

26 USC 168. 

26 USC 45L note. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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) 

26 USC 431 note. 

26 USC 30C note. 

26 USC 30C. 

Guidance. 

Deadlines. 

Claims. 

26 USC 6426 

note. 


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128 STAT. 4024 PUBLIC LAW 113–295—DEC. 19, 2014 

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 

26 USC 6655 Act of 2012 is amended by striking ‘‘201(b)’’ and inserting ‘‘202(b)’’. 

note. 

26 USC 55 note. 

26 USC 642. 

26 USC 1 note. 

Tax Technical 

Corrections Act 

of 2014. 

26 USC 412 note. 

26 USC 412 note. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 

Applicability. 

Time periods. 

26 USC 1212 

note. 

26 USC 4281 

note. 

26 USC 4281. 

26 USC 6655 

note. 


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128 STAT. 4026 PUBLIC LAW 113–295—DEC. 19, 2014 

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 postDecember 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 

Definitions. 

26 USC 855. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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’’. 

26 USC 6721 

note. 

26 USC 32 note. 

26 USC 2001 

note. 

26 USC 852 note. 

26 USC 851. 


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128 STAT. 4028 PUBLIC LAW 113–295—DEC. 19, 2014 

(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— 

Time period. 

Applicability. 

26 USC 6662 

note. 

26 USC 6662. 

26 USC 6722 

note. 

26 USC 6722. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 

Applicability. 

26 USC 30. 


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128 STAT. 4030 PUBLIC LAW 113–295—DEC. 19, 2014 

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)’’. 

Effective date. 

26 USC 6428 

note. 

26 USC 853A. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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’’. 

Definition. 

26 USC 9501 

note. 

26 USC 45K. 

26 USC 24 note. 

26 USC 35. 


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128 STAT. 4032 PUBLIC LAW 113–295—DEC. 19, 2014 

(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.’’. 

26 USC 897 note. 

26 USC 45 note. 

Applicability. 

26 USC 1012. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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)’’. 

26 USC 6511 

note. 

26 USC 42 note. 

25 USC 56 note. 

26 USC 168. 


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128 STAT. 4034 PUBLIC LAW 113–295—DEC. 19, 2014 

(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. 

26 USC 45A note. 

26 USC 56 note. 

26 USC 168 note. 

26 USC 121 note. 

26 USC 877. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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). 

26 USC 199 note. 

26 USC 114 note. 

26 USC 30B note. 

26 USC 9503 

note. 

26 USC 9503. 


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128 STAT. 4036 PUBLIC LAW 113–295—DEC. 19, 2014 

(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). 

26 USC 50. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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’’. 

26 USC prec. 31. 

26 USC prec. 27. 

26 USC 56 note. 

26 USC 9035. 


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128 STAT. 4038 PUBLIC LAW 113–295—DEC. 19, 2014 

(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)’’. 

26 USC 

prec. 59A. 

26 USC 6213. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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,’’. 

26 USC 

prec. 101. 

26 USC 4611. 


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128 STAT. 4040 PUBLIC LAW 113–295—DEC. 19, 2014 

(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: 

26 USC 409. 

26 USC 501. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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). 

26 USC 1033. 

Definitions. 


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128 STAT. 4042 PUBLIC LAW 113–295—DEC. 19, 2014 

(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. 

26 USC 

prec. 161. 

26 USC 

prec. 161. 

26 USC 56. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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. 

26 USC 

prec. 241. 

26 USC 199. 


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128 STAT. 4044 PUBLIC LAW 113–295—DEC. 19, 2014 

(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 DIS- ALLOWED.—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. 

26 USC 172 note. 

26 USC 172. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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: 


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128 STAT. 4046 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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). 

26 USC 423. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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.— 

26 USC 464, 461. 

26 USC 457. 


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128 STAT. 4048 PUBLIC LAW 113–295—DEC. 19, 2014 

(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,’’. 

26 USC 469. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 INVOL- UNTARY 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: 

26 USC 

prec. 1051. 


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128 STAT. 4050 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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). 

26 USC 1314. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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)).’’. 

26 USC 

prec. 2051. 

26 USC 

prec. 2601. 

26 USC 

prec. 2010. 

26 USC 1551. 


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128 STAT. 4052 PUBLIC LAW 113–295—DEC. 19, 2014 

(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’’, 

26 USC 

prec. 4001, 

4001–4003. 

42 USC 410. 

26 USC 3121. 


dkrause on DSKHT7XVN1PROD with PUBLAWS
PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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.’’. 

26 USC 4222. 


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128 STAT. 4054 PUBLIC LAW 113–295—DEC. 19, 2014 

(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 

26 USC 

prec. 6411. 

26 USC 

prec. 6428, 

prec. 6411. 

26 USC 6404. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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). 

26 USC 6405 

note. 

26 USC 1 note. 

26 USC 7701. 


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128 STAT. 4056 PUBLIC LAW 113–295—DEC. 19, 2014 

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 

Definition. 

26 USC 529A. 

26 USC 529A 

note. 

26 USC 1 note. 

Stephen Beck, 

Jr., Achieving a 

Better Life 

Experience 

Act of 2014. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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.— 

Applicability. 


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128 STAT. 4058 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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. 

Deadline. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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— 

Public 

information. 


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128 STAT. 4060 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 BuyIn 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). 

26 USC 4973. 


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128 STAT. 4062 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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 

26 USC 529A 

note. 

5 USC 552a note. 

26 USC 

prec. 529. 

26 USC 

prec. 501. 

26 USC 

prec. 529. 

26 USC 6693. 

Applicability. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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— 

Deadline. 

26 USC 529A 

note. 


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128 STAT. 4064 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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. 

26 USC 424a 

note. 

26 USC 529 note. 

26 USC 529. 

11 USC 521 note. 

Deadlines. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 

26 USC 3511. 

26 USC 4042 

note. 

26 USC 4042. 

Effective date. 


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128 STAT. 4066 PUBLIC LAW 113–295—DEC. 19, 2014 

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), 

Applicability. 

Contracts. 

Applicability. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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). 

Definition. 

26 USC 7705. 

Records. 

Regulations. 

Procedures. 

Applicability. 


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128 STAT. 4068 PUBLIC LAW 113–295—DEC. 19, 2014 

‘‘(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 

Notification. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 

Definition. 

Determination. 

Time period. 


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128 STAT. 4070 PUBLIC LAW 113–295—DEC. 19, 2014 

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 

26 USC 3302. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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 

26 USC 3302 

note. 

Deadline. 

26 USC 27705 

note. 

26 USC 3302 

note. 

26 USC 

prec. 7701. 

26 USC 

prec. 3501. 

Applicability. 

Deadline. 

26 USC 6053. 


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128 STAT. 4072 PUBLIC LAW 113–295—DEC. 19, 2014 

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.— 

Time period. 

Time period. 

26 USC 543 note. 

26 USC 543. 


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PUBLIC LAW 113–295—DEC. 19, 2014 128 STAT. 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. 

Time period. 

Time period. 

Time period. 

26 USC 6652. 

Applicability. 


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128 STAT. 4074 PUBLIC LAW 113–295—DEC. 19, 2014 

LEGISLATIVE HISTORY—H.R. 5771: 

CONGRESSIONAL RECORD, Vol. 160 (2014): 

Dec. 3, considered and passed House. 

Dec. 16, considered and passed Senate. 

Æ 

‘‘(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. 

26 USC 6331 

note. 

26 USC 6651 

note. 

26 USC 6721. 


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