99–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 111–671 

PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE 

BILL (H.R. 4853) TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO 

EXTEND THE FUNDING AND EXPENDITURE AUTHORITY OF THE AIRPORT AND AIRWAY TRUST FUND, TO AMEND TITLE 49, UNITED STATES 

CODE, TO EXTEND AUTHORIZATIONS FOR THE AIRPORT IMPROVEMENT 

PROGRAM, AND FOR OTHER PURPOSES, AND PROVIDING FOR CONSIDERATION OF MOTIONS TO SUSPEND THE RULES 

DECEMBER 1, 2010.—Referred to the House Calendar and ordered to be printed 

Ms. PINGREE of Maine, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 1745] 

The Committee on Rules, having had under consideration House 

Resolution 1745, by a record vote of 7 to 2, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for the consideration of the Senate 

amendment to H.R. 4853. The resolution makes in order a motion 

offered by the chair of the Committee on Ways and Means that the 

House concur in the Senate amendment to H.R. 4853 with the 

amendment printed in this report. The resolution provides one 

hour of debate on the motion equally divided and controlled by the 

chair and ranking minority member of the Committee on Ways and 

Means. The resolution waives all points of order against consideration of the motion except those arising under clause 10 of rule 

XXI. The resolution provides that the Senate amendment and the 

motion shall be considered as read. Finally, the resolution authorizes the Speaker to entertain motions that the House suspend the 

rules at any time through the legislative day of December 3, 2010. 

The Speaker or her designee shall consult with the Minority Leader or his designee on the designation of any matter for consideration pursuant to this resolution. 

EXPLANATION OF WAIVERS

Although the rule waives all points of order against consideration 

of the motion (except those arising under clause 10 of rule XXI), 

the Committee is not aware of any points of order against the moVerDate Mar 15 2010 05:14 Dec 02, 2010 Jkt 099008 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR671.XXX HR671

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tion. The waiver of all points of order against the motion is prophylactic. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 504 

Date: December 1, 2010. 

Measure: Senate amendment to H.R. 4853. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide the appropriate waivers for an amendment if offered by the Ranking Member of the Ways and Means Committee, or his designee. 

Results: Defeated 2–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; Foxx— 

Yea; Slaughter—Nay. 

Rules Committee record vote No. 505 

Date: December 1, 2010. 

Measure: Senate amendment to H.R. 4853. 

Motion by: Mr. Dreier. 

Summary of motion: To increase time for debate to 3 hours. 

Results: Defeated 2–7. 

Vote by Members: McGovern—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; Foxx— 

Yea; Slaughter—Nay. 

Rules Committee record vote No. 506 

Date: December 1, 2010. 

Measure: Senate amendment to H.R. 4853. 

Motion by: Mr. McGovern. 

Summary of motion: To report the rule. 

Results: Adopted 7–2. 

Vote by Members: McGovern—Yea; Cardoza—Yea; Arcuri—Yea; 

Perlmutter—Yea; Pingree—Yea; Polis—Yea; Dreier—Nay; Foxx— 

Nay; Slaughter—Yea. 

SUMMARY OF THE HOUSE AMENDMENT

The amendment includes: Two year extension of alternative minimum tax relief; Permanent extension of marginal individual income tax rate reduction for middle-class taxpayers; Permanent reduced capital gains and dividend tax relief for middle-class taxpayers; Permanent extension of EGTRRA and ARRA improvements 

to child tax credit; Permanent extension of PEP and Pease relief 

for middle-class taxpayers; Permanent marriage penalty relief for 

middle-class taxpayers; Permanent earned income tax credit simplification and increase; Permanent extension of education tax incentives; Permanent extension of tax benefits for families and children; and Permanent extension of enhanced small business expensing. 


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TEXT OF THE HOUSE AMENDMENT

In lieu of the matter proposed to be inserted by the Senate 

amendment to the text of the bill, insert the following: 

SECTION 1. SHORT TITLE; ETC. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Middle Class 

Tax Relief Act of 2010’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or 

other provision, the reference shall be considered to be made to a 

section or other provision of the Internal Revenue Code of 1986. 

(c) TABLE OF CONTENTS.—The table of contents for this Act is as 

follows: 

Sec. 1. Short title; etc. 

TITLE I—MIDDLE CLASS TAX RELIEF MADE PERMANENT 

Sec. 101. Middle class tax relief made permanent. 

Sec. 102. Certain provisions not applicable to high income individuals. 

Sec. 103. Related amendments. 

TITLE II—EXPENSING BY SMALL BUSINESSES OF CERTAIN DEPRECIABLE 

ASSETS 

Sec. 201. Increased limitations on expensing by small businesses of certain depreciable assets. 

TITLE III—EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF 

Sec. 301. Extension of alternative minimum tax relief for nonrefundable personal 

credits. 

Sec. 302. Extension of increased alternative minimum tax exemption amount. 

TITLE IV—BUDGETARY PROVISION 

Sec. 401. PAYGO compliance. 

TITLE I—MIDDLE CLASS TAX RELIEF 

MADE PERMANENT 

SEC. 101. MIDDLE CLASS TAX RELIEF MADE PERMANENT. 

(a) IN GENERAL.—Section 901 of the Economic Growth and Tax 

Relief Reconciliation Act of 2001 shall not apply to the following 

provisions of such Act (and to the amendments made by such provisions): 

(1) Title I (relating to individual income tax rate reductions). 

(2) Title II (relating to tax benefits related to children). 

(3) Title III (relating to marriage penalty relief). 

(4) Title IV (relating to affordable education provisions). 

(b) REDUCED RATES ON CAPITAL GAINS AND DIVIDENDS.—The 

Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended 

by striking section 303. 

SEC. 102. CERTAIN PROVISIONS NOT APPLICABLE TO HIGH INCOME 

INDIVIDUALS. 

(a) INDIVIDUAL INCOME TAX RATES.—Subsection (i) of section 1 is 

amended by striking paragraph (2), by redesignating paragraph (3) 

as paragraph (4), and by inserting after paragraph (1) the following 

new paragraphs: 

‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.—The tables under 

subsections (a), (b), (c), (d), and (e) shall be applied— 


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‘‘(A) by substituting ‘25%’ for ‘28%’ each place it appears 

(before the application of subparagraph (B)), and 

‘‘(B) by substituting ‘28%’ for ‘31%’ each place it appears. 

‘‘(3) 33-PERCENT RATE BRACKET.— 

‘‘(A) IN GENERAL.—In the case of taxable years beginning 

after December 31, 2010— 

‘‘(i) the rate of tax under subsections (a), (b), (c), and 

(d) on a taxpayer’s taxable income in the fourth rate 

bracket shall be 33 percent to the extent such income 

does not exceed an amount equal to the excess of— 

‘‘(I) the applicable amount, over 

‘‘(II) the dollar amount at which such bracket 

begins, and 

‘‘(ii) the 36 percent rate of tax under such subsections shall apply only to the taxpayer’s taxable income in such bracket in excess of the amount to which 

clause (i) applies. 

‘‘(B) APPLICABLE AMOUNT.—For purposes of this paragraph, the term ‘applicable amount’ means the excess of— 

‘‘(i) the applicable threshold, over 

‘‘(ii) the sum of the following amounts in effect for 

the taxable year: 

‘‘(I) the basic standard deduction (within the 

meaning of section 63(c)(2)), and 

‘‘(II) the exemption amount (within the meaning 

of section 151(d)(1)) (or, in the case of subsection 

(a), 2 such exemption amounts). 

‘‘(C) APPLICABLE THRESHOLD.—For purposes of this paragraph, the term ‘applicable threshold’ means— 

‘‘(i) $250,000 in the case of subsection (a), 

‘‘(ii) $200,000 in the case of subsections (b) and (c), 

and 

‘‘(iii) 1⁄2 the amount applicable under clause (i) (after 

adjustment, if any, under subparagraph (E)) in the 

case of subsection (d). 

‘‘(D) FOURTH RATE BRACKET.—For purposes of this paragraph, the term ‘fourth rate bracket’ means the bracket 

which would (determined without regard to this paragraph) be the 36-percent rate bracket. 

‘‘(E) INFLATION ADJUSTMENT.—For purposes of this paragraph, a rule similar to the rule of paragraph (1)(C) shall 

apply with respect to taxable years beginning in calendar 

years after 2010, applied by substituting ‘2008’ for ‘1992’ 

in subsection (f)(3)(B).’’. 

(b) PHASEOUT OF PERSONAL EXEMPTIONS AND ITEMIZED DEDUCTIONS.— 

(1) OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.—Section 

68 is amended— 

(A) by striking ‘‘the applicable amount’’ the first place it 

appears in subsection (a) and inserting ‘‘the applicable 

threshold in effect under section 1(i)(3)’’, 

(B) by striking ‘‘the applicable amount’’ in subsection 

(a)(1) and inserting ‘‘such applicable threshold’’, 


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(C) by striking subsection (b) and redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively, and 

(D) by striking subsections (f) and (g). 

(2) PHASEOUT OF DEDUCTIONS FOR PERSONAL EXEMPTIONS.— 

(A) IN GENERAL.—Paragraph (3) of section 151(d) is 

amended— 

(i) by striking ‘‘the threshold amount’’ in subparagraphs (A) and (B) and inserting ‘‘the applicable 

threshold in effect under section 1(i)(3)’’, 

(ii) by striking subparagraph (C) and redesignating 

subparagraph (D) as subparagraph (C), and 

(iii) by striking subparagraphs (E) and (F). 

(B) CONFORMING AMENDMENT.—Paragraph (4) of section 

151(d) is amended— 

(i) by striking subparagraph (B), 

(ii) by redesignating clauses (i) and (ii) of subparagraph (A) as subparagraphs (A) and (B), respectively, 

and by indenting such subparagraphs (as so redesignated) accordingly, and 

(iii) by striking all that precedes ‘‘in a calendar year 

after 1989,’’ and inserting the following: 

‘‘(4) INFLATION ADJUSTMENT.—In the case of any taxable year 

beginning’’. 

(c) REDUCED RATE ON CAPITAL GAINS AND DIVIDENDS.— 

(1) IN GENERAL.—Paragraph (1) of section (1)(h) is amended 

by striking subparagraph (C), by redesignating subparagraphs 

(D) and (E) as subparagraphs (E) and (F) and by inserting 

after subparagraph (B) the following new subparagraphs: 

‘‘(C) 15 percent of the lesser of— 

‘‘(i) so much of the adjusted net capital gain (or, if 

less, taxable income) as exceeds the amount on which 

a tax is determined under subparagraph (B), or 

‘‘(ii) the excess (if any) of— 

‘‘(I) the amount of taxable income which would 

(without regard to this subsection) be taxed at a 

rate below 36 percent, over 

‘‘(II) the sum of the amounts on which tax is determined under subparagraphs (A) and (B), 

‘‘(D) 20 percent of the adjusted net capital gain (or, if 

less, taxable income) in excess of the sum of the amounts 

on which tax is determined under subparagraphs (B) and 

(C),’’. 

(2) DIVIDENDS.—Subparagraph (A) of section 1(h)(11) is 

amended by striking ‘‘qualified dividend income’’ and inserting 

‘‘so much of the qualified dividend income as does not exceed 

the excess (if any) of— 

‘‘(i) the amount of taxable income which would 

(without regard to this subsection) be taxed at a rate 

below 36 percent, over 

‘‘(ii) taxable income reduced by qualified dividend income.’’. 

(3) MINIMUM TAX.—Section 55 is amended by adding at the 

end the following new subsection: 


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‘‘(f) APPLICATION OF MAXIMUM RATE OF TAX ON NET CAPITAL

GAIN OF NONCORPORATE TAXPAYERS.—In the case of taxable years 

beginning after December 31, 2010, the amount determined under 

subparagraph (C) of subsection (b)(3) shall be the sum of— 

‘‘(1) 15 percent of the lesser of— 

‘‘(A) so much of the adjusted net capital gain (or, if less, 

taxable excess) as exceeds the amount on which tax is determined under subparagraph (B) of subsection (b)(3), or 

‘‘(B) the excess described in section 1(h)(1)(C)(ii), plus 

‘‘(2) 20 percent of the adjusted net capital gain (or, if less, 

taxable excess) in excess of the sum of the amounts on which 

tax is determined under subsection (b)(3)(B) and paragraph 

(1).’’. 

(4) CONFORMING AMENDMENTS.— (A) The following provisions are amended by striking ‘‘15 

percent’’ and inserting ‘‘20 percent’’: 

(i) Section 1445(e)(1). 

(ii) The second sentence of section 7518(g)(6)(A). 

(iii) Section 53511(f)(2) of title 46, United States 

Code. 

(B) Sections 531 and 541 are each amended by striking 

‘‘15 percent of’’ and inserting ‘‘the product of the highest 

rate of tax under section 1(c) and’’. 

(C) Section 1445(e)(6) is amended by striking ‘‘15 percent 

(20 percent in the case of taxable years beginning after December 31, 2010)’’ and inserting ‘‘20 percent’’. 

(d) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to taxable years 

beginning after December 31, 2010. 

(2) WITHHOLDING.—The amendments made by subparagraphs (A)(i) and (C) of subsection (c)(4) shall apply to amounts 

paid on or after January 1, 2011. 

SEC. 103. RELATED AMENDMENTS. 

(a) APPLICATION OF INCREASE IN REFUNDABLE PORTION OF CHILD

TAX CREDIT.— (1) IN GENERAL.—Subsection (d) of section 24 is amended— 

(A) by striking ‘‘$10,000’’ in paragraph (1)(B)(i) and in- serting ‘‘$3,000’’, and 

(B) by striking paragraphs (3) and (4). 

(2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to taxable years beginning after December 

31, 2010. 

(b) APPLICATION OF INCREASE IN EARNED INCOME TAX CREDIT.— 

(1) IN GENERAL.—Subparagraph (B) of section 32(b)(2) is 

amended to read as follows: 

‘‘(B) JOINT RETURNS.— 

‘‘(i) IN GENERAL.—In the case of a joint return filed 

by an eligible individual and such individual’s spouse, 

the phaseout amount determined under subparagraph 

(A) shall be increased by $5,000. 

‘‘(ii) INFLATION ADJUSTMENT.—In the case of any 

taxable year beginning after 2010, the $5,000 amount 

in clause (i) shall be increased by an amount equal 

to— 


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‘‘(I) such dollar amount, multiplied by 

‘‘(II) the cost of living adjustment determined 

under section 1(f)(3) for the calendar year in 

which the taxable year begins determined by substituting ‘calendar year 2008’ for ‘calendar year 

1992’ in subparagraph (B) thereof. 

Subparagraph (A) of subsection (j)(2) shall apply after 

taking into account any increase under the preceding 

sentence.’’. 

(2) CONFORMING AMENDMENT.—Subsection (b) of section 32 is 

amended by striking paragraph (3). 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to taxable years beginning after December 

31, 2010. 

(c) APPLICATION TO ADOPTION CREDIT AND ADOPTION ASSISTANCE

PROGRAMS.—Subsection (c) of section 10909 of the Patient Protection and Affordable Care Act is amended to read as follows: 

‘‘(c) The amendments made by this section shall not apply to taxable years beginning after December 31, 2011.’’. 

TITLE II—EXPENSING BY SMALL BUSINESSES OF CERTAIN DEPRECIABLE 

ASSETS 

SEC. 201. INCREASED LIMITATIONS ON EXPENSING BY SMALL BUSINESSES OF CERTAIN DEPRECIABLE ASSETS. 

(a) DOLLAR LIMITATION.—Subparagraph (C) of section 179(b)(1) is 

amended by striking ‘‘$25,000’’ and inserting ‘‘$125,000’’. 

(b) THRESHOLD AT WHICH PHASEOUT BEGINS.—Subparagraph (C) 

of section 179(b)(2) is amended by striking ‘‘$200,000’’ and inserting 

‘‘$500,000’’. 

(c) INFLATION ADJUSTMENT.—Subsection (b) of section 179 is 

amended by adding at the end the following new paragraph: 

‘‘(6) INFLATION ADJUSTMENTS.— 

‘‘(A) IN GENERAL.—In the case of any taxable beginning 

in a calendar year after 2011, the $125,000 and $500,000 

amounts in paragraphs (1)(C) and (2)(C) shall each be increased by an amount equal to— 

‘‘(i) such dollar amount, multiplied by 

‘‘(ii) the cost-of-living adjustment determined under 

section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting ‘calendar 

year 2006’ for ‘calendar year 1992’ in subparagraph 

(B) thereof. 

‘‘(B) ROUNDING.— 

‘‘(i) DOLLAR LIMITATION.—If the amount in paragraph (1) as increased under subparagraph (A) is not 

a multiple of $1,000, such amount shall be rounded to 

the nearest multiple of $1,000. 

‘‘(ii) PHASEOUT AMOUNT.—If the amount in paragraph (2) as increased under subparagraph (A) is not 

a multiple of $10,000, such amount shall be rounded 

to the nearest multiple of $10,000.’’. 


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(d) AUTHORITY TO REVOKE ELECTION MADE PERMANENT.—Paragraph (2) of section 179(c) is amended by striking ‘‘and before 

2012’’. 

(e) TREATMENT OF CERTAIN COMPUTER SOFTWARE AS SECTION

179 PROPERTY MADE PERMANENT.—Clause (ii) of section 

179(d)(1)(A) is amended by striking ‘‘and before 2012’’. 

(f) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2011. 

TITLE III—EXTENSION OF 

ALTERNATIVE MINIMUM TAX RELIEF 

SEC. 301. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 

NONREFUNDABLE PERSONAL CREDITS. 

(a) IN GENERAL.—Paragraph (2) of section 26(a) is amended— 

(1) by striking ‘‘2000, 2001, 2002, 2003, 2004, 2005, 2006, 

2007, 2008, or 2009’’ and inserting ‘‘the period beginning with 

calendar year 2000 and ending with calendar year 2011’’, and 

(2) by striking ‘‘2009’’ in the heading thereof and inserting 

‘‘2011’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2009. 

SEC. 302. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT. 

(a) IN GENERAL.—Paragraph (1) of section 55(d) is amended— 

(1) by striking ‘‘($70,950 in the case of taxable years beginning in 2009)’’ in subparagraph (A) and inserting ‘‘($72,450 in 

the case of taxable years beginning in 2010 or 2011)’’, and 

(2) by striking ‘‘($46,700 in the case of taxable years beginning in 2009)’’ in subparagraph (B) and inserting ‘‘($47,450 in 

the case of taxable years beginning in 2010 or 2011)’’. 

(b) NONAPPLICATION OF EGTRRA SUNSET.—Section 901 of the 

Economic Growth and Tax Relief Reconciliation Act of 2001 shall 

not apply to the amendments made by section 701 of such Act. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2009. 

TITLE IV—BUDGETARY PROVISION 

SEC. 401. PAYGO COMPLIANCE. 

The budgetary effects of this Act, for the purpose of complying 

with the Statutory Pay-As-You-Go-Act of 2010, shall be determined 

by reference to the latest statement titled ‘‘Budgetary Effects of 

PAYGO Legislation’’ for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to 

the vote on passage. 

Æ 


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