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[House Report 112-641]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-641

======================================================================

 
  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 6169) TO PROVIDE FOR 
   EXPEDITED CONSIDERATION OF A BILL PROVIDING FOR COMPREHENSIVE TAX 
  REFORM; PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 8) TO EXTEND 
 CERTAIN TAX RELIEF PROVISIONS ENACTED IN 2001 AND 2003, AND FOR OTHER 
 PURPOSES; PROVIDING FOR PROCEEDINGS DURING THE PERIOD FROM AUGUST 3, 
2012, THROUGH SEPTEMBER 7, 2012; PROVIDING FOR CONSIDERATION OF MOTIONS 
TO SUSPEND THE RULES; AND WAIVING A REQUIREMENT OF CLAUSE 6(a) OF RULE 
XIII WITH RESPECT TO CONSIDERATION OF CERTAIN RESOLUTIONS REPORTED FROM 
                         THE COMMITTEE ON RULES

                                _______
                                

   July 31, 2012.--Referred to the House Calendar and ordered to be 
                                printed.

                                _______
                                

       Mr. Scott of South Carolina, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 747]

    The Committee on Rules, having had under consideration 
House Resolution 747, by a record vote of 8 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 6169, the 
Pathway to Job Creation through a Simpler, Fairer Tax Code Act 
of 2012, under a structured rule. The resolution provides one 
hour of debate on the bill equally divided and controlled by 
the chair and ranking minority member of the Committee on Rules 
and two hours of debate on the subject of reforming the 
Internal Revenue Code of 1986 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 bill and provides that it shall be 
considered as read. The resolution waives all points of order 
against provisions in the bill. The resolution makes in order 
the amendment in the nature of a substitute to H.R. 6169 
printed in Part A of this report if offered by Representative 
Slaughter of New York or her designee. The amendment shall be 
considered as read, shall be debatable for 20 minutes equally 
divided and controlled by the proponent and an opponent, shall 
not be subject to amendment, and shall not be subject to a 
demand for division of the question. The resolution waives all 
points of order against the amendment printed in part A of this 
report. The resolution provides one motion to recommit with or 
without instructions.
    The resolution provides for consideration of H.R. 8, the 
Job Protection and Recession Prevention Act of 2012, under a 
structured rule. The resolution provides one hour of debate 
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 bill and provides that it shall be considered as read. The 
resolution waives all points of order against provisions in the 
bill. The resolution makes in order the amendment in the nature 
of a substitute to H.R. 8 printed in Part B of this report if 
offered by Representative Levin of Michigan or his designee. 
The amendment shall be considered as read, shall be debatable 
for 20 minutes equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question. The 
resolution waives all points of order against the amendment 
printed in Part B of this report. The resolution provides one 
motion to recommit with or without instructions.
    Section 3 of the resolution provides that on any 
legislative day during the period from August 3, 2012, through 
September 7, 2012: (a) the Journal of the proceedings of the 
previous day shall be considered as approved; (b) the Chair may 
adjourn the House to meet at a date and time, within the limits 
of clause 4, section 5, article I of the Constitution; and (c) 
bills and resolutions introduced shall be numbered, listed in 
the Congressional Record, and when printed shall bear the date 
of introduction, but may be referred at a later time.
    Section 4 of the resolution provides that the Speaker may 
appoint Members to perform the duties of the Chair for the 
duration of the period addressed by section 3 as though under 
clause 8(a) of rule I.
    Section 5 of the resolution provides that each day during 
the period addressed by section 3 shall not constitute a 
calendar day for purposes of section 7 of the War Powers 
Resolution (50 U.S.C. 1546).
    Section 6 of the resolution provides that each day during 
the period addressed by section 3 shall not constitute a 
legislative day for purposes of clause 7 of rule XIII 
(resolutions of inquiry).
    Section 7 of the resolution provides that for each day 
during the period addressed by section 3 shall not constitute a 
calendar or legislative day for purposes of clause 7(c)(1) of 
rule XXII (motions to instruct conferees).
    Section 8 of the resolution authorizes the Speaker to 
entertain motions to suspend the rules on the legislative day 
of August 2, 2012.
    Finally, section 9 of the resolution waives the requirement 
of clause 6(a) of rule XIII (requiring a two-thirds vote to 
consider a report from the Committee on Rules on the same day 
it is presented to the House) with respect to any resolution 
reported through the legislative day of August 2, 2012.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
consideration of H.R. 6169, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 6169, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
the amendment in the nature of a substitute to H.R. 6169, 
printed in part A of this report, the Committee is not aware of 
any points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
consideration of H.R. 8, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 8, the Committee is not aware of any points 
of order. The waiver is prophylactic in nature.
    The waiver of all points of order against the amendment in 
the nature of a substitute to H.R. 8, printed in part B of this 
report, could include a waiver of Section 311 of the 
Congressional Budget Act, which prohibits consideration of 
legislation that would cause revenues to be less than the level 
of total revenues for the first fiscal year or for the total of 
that first fiscal year and the ensuing fiscal years for which 
allocations are provided, and clause 10 of rule XXI, 
prohibiting the consideration of a bill if it has the net 
effect of increasing mandatory spending over the first five- or 
ten-year period. Section 503(b) of the House passed budget 
resolution (H. Con. Res. 112) contemplates House consideration 
of specific legislation which would be subject to an adjustment 
of allocation by the Chairman of Committee on the Budget. While 
the Rules Committee has been informed by the Budget Committee 
that the underlying measure meets those requirements and would 
therefore qualify for an adjustment under Section 503, the 
Budget Committee has indicated that substitute printed in part 
B of this report may not qualify due to the inclusion of tax 
credits not contemplated under Section 503. Should the 
substitute not qualify under section 503, the amendment would 
be in violation of Section 311 of the Budget Act and clause 10 
of rule XXI, and the waivers would be applicable.

                            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. 345

    Motion by Mr. McGovern to amend the rule for H.R. 8 to make 
in order and provide the appropriate waivers for amendment #3, 
offered by Rep. Blumenauer (OR), which would restore estate tax 
relief in 2013, providing taxable estates an exemption rate of 
$3.5 million, a maximum tax rate of 45%, and provide 
unification of the estate and gift taxes and portability of 
estate tax relief. Defeated: 3-8.

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Sessions....................................          Nay   Ms. Slaughter.....................          Yea
Ms. Foxx........................................          Nay   Mr. McGovern......................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Webster.....................................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 346

    Motion by Mr. Sessions to report the rule. Adopted: 8-3.

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Sessions....................................          Yea   Ms. Slaughter.....................          Nay
Ms. Foxx........................................          Yea   Mr. McGovern......................          Nay
Mr. Bishop of Utah..............................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Woodall.....................................          Yea
Mr. Nugent......................................          Yea
Mr. Scott of South Carolina.....................          Yea
Mr. Webster.....................................          Yea
Mr. Dreier, Chairman............................          Yea
----------------------------------------------------------------------------------------------------------------

     SUMMARY OF THE AMENDMENT TO H.R. 6169 IN PART A MADE IN ORDER

    Slaughter (NY): SUBSTITUTE AMENDMENT. Would lay out 
Democratic principles for tax reform that call for increased 
revenues to bring down our national debt and invest in economic 
growth; a progressive tax rate structure; protecting the 
vulnerable; repeal of the AMT; discouraging tax haven abuse; 
elimination of tax breaks that ship jobs and profits overseas; 
promotion of domestic manufacturing; and preserving incentives 
for education, retirement, healthcare, home ownership, and 
small business. (20 minutes)

       SUMMARY OF THE AMENDMENT TO H.R. 8 IN PART B MADE IN ORDER

    Levin, Sander (MI): SUBSTITUTE AMENDMENT. Would extend for 
one year certain expired or expiring tax provisions that apply 
to middle-income taxpayers with income below $250,000 for 
married couples filing jointly, and below $200,000 for single 
filers, including, but not limited to, marginal rate 
reductions, capital gains and dividend rate preferences, 
alternative minimum tax relief, marriage penalty relief, and 
expanded tax relief for working families with children and 
college students. (20 minutes)

                PART A--TEXT OF AMENDMENT MADE IN ORDER

  Strike all after the enacting clause and insert the 
following:

SECTION 1. FINDINGS REGARDING COMPREHENSIVE TAX REFORM.

  Congress finds that--
          (1) legislation to reform the Internal Revenue Code 
        of 1986 is both necessary and desirable, and
          (2) the House of Representatives and the Senate 
        should move quickly under regular order to proceed with 
        a bill which--
                  (A) identifies revenue sources that in 
                conjunction with targeted spending reductions 
                will provide the long-term means to reduce the 
                national debt significantly and make 
                investments in national priorities such as 
                infrastructure, education, research, and 
                defense that are critical to future American 
                competitiveness and job growth,
                  (B) adopts a rate structure that distributes 
                the tax burden in a more progressive manner,
                  (C) discourages tax avoidance, including tax 
                avoidance accomplished using entities or 
                accounts in tax haven jurisdictions,
                  (D) preserves and improves those provisions 
                of the Internal Revenue Code of 1986 that 
                support middle class home ownership, education, 
                retirement savings, and healthcare,
                  (E) repeals the alternative minimum tax 
                (commonly known as the AMT),
                  (F) retains and improves refundable tax 
                credits that encourage work and education while 
                lifting millions of Americans out of poverty,
                  (G) eliminates tax breaks for businesses that 
                move jobs and profits overseas in combination 
                with a reduction in tax rates for American 
                manufacturers, which are vital to innovation 
                and job growth, and
                  (H) preserves and improves incentives for 
                small business investment and growth.
                              ----------                              

                PART B--TEXT OF AMENDMENT MADE IN ORDER

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; ETC.

  (a) Short Title.--This Act may be cited as the ``Middle Class 
Tax Cut Act''.
  (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 of this Act is 
as follows:

Sec. 1. Short title; etc.

               TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

Sec. 101. Temporary extension of 2001 tax relief.
Sec. 102. Temporary extension of 2003 tax relief.
Sec. 103. Temporary extension of 2010 tax relief.
Sec. 104. Temporary extension of election to expense certain depreciable 
          business assets.

                TITLE II--ALTERNATIVE MINIMUM TAX RELIEF

Sec. 201. Temporary extension of increased alternative minimum tax 
          exemption amount.
Sec. 202. Temporary extension of alternative minimum tax relief for 
          nonrefundable personal credits.

                 TITLE III--TREATMENT FOR PAYGO PURPOSES

Sec. 301. Treatment for PAYGO purposes.

               TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.

  (a) Temporary Extension.--
          (1) In general.--Section 901(a)(1) of the Economic 
        Growth and Tax Relief Reconciliation Act of 2001 is 
        amended by striking ``December 31, 2012'' and inserting 
        ``December 31, 2013''.
          (2) Effective date.--The amendment made by this 
        subsection shall take effect as if included in the 
        enactment of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001.
  (b) Application to Certain High-Income Taxpayers.--
          (1) Income tax rates.--
                  (A) Treatment of 25- and 28-percent rate 
                brackets.--Paragraph (2) of section 1(i) is 
                amended to read as follows:
          ``(2) 25- and 28-percent rate brackets.--The tables 
        under subsections (a), (b), (c), (d), and (e) shall be 
        applied--
                  ``(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.''.
                  (B) 33-percent rate bracket.--Subsection (i) 
                of section 1 is amended by redesignating 
                paragraph (3) as paragraph (4) and by inserting 
                after paragraph (2) the following new 
                paragraph:
          ``(3) 33-percent rate bracket.--
                  ``(A) In general.--In the case of taxable 
                years beginning after December 31, 2012--
                          ``(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) $225,000 in the case of 
                        subsection (b),
                          ``(iii) $200,000 in the case of 
                        subsections (c), and
                          ``(iv) \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, with respect to taxable years 
                beginning in calendar years after 2012, each of 
                the dollar amounts under clauses (i), (ii), and 
                (iii) of subparagraph (C) shall be adjusted in 
                the same manner as under paragraph (1)(C), 
                except that subsection (f)(3)(B) shall be 
                applied by substituting `2008' for `1992'.''.
          (2) Phaseout of personal exemptions and itemized 
        deductions.--
                  (A) Overall limitation on itemized 
                deductions.--Section 68 is amended--
                          (i) 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)'',
                          (ii) by striking ``the applicable 
                        amount'' in subsection (a)(1) and 
                        inserting ``such applicable 
                        threshold'',
                          (iii) by striking subsection (b) and 
                        redesignating subsections (c), (d), and 
                        (e) as subsections (b), (c), and (d), 
                        respectively, and
                          (iv) by striking subsections (f) and 
                        (g).
                  (B) Phaseout of deductions for personal 
                exemptions.--
                          (i) 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).
                          (ii) Conforming amendments.--
                        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) Effective Date.--Except as otherwise provided, the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 2012.
  (d) Application of EGTRRA Sunset.--Each amendment made by 
subsection (b) shall be subject to title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 to the same 
extent and in the same manner as if such amendment was included 
in title I of such Act.

SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.

  (a) Extension.--
          (1) In general.--Section 303 of the Jobs and Growth 
        Tax Relief Reconciliation Act of 2003 is amended by 
        striking ``December 31, 2012'' and inserting ``December 
        31, 2013''.
          (2) Effective date.--The amendment made by this 
        subsection shall take effect as if included in the 
        enactment of the Jobs and Growth Tax Relief 
        Reconciliation Act of 2003.
  (b) 20-Percent Capital Gains Rate for Certain High Income 
Individuals.--
          (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 paragraph) be 
                                taxed at a rate below 36 
                                percent, over
                                  ``(II) the sum of the amounts 
                                on which a 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) Minimum tax.--Section 55 is amended by adding at 
        the end the following new subsection:
  ``(f) 20-percent Capital Gains Rate for Certain High Income 
Individuals.--
          ``(1) In general.--In the case of any individual, if 
        the taxpayer's taxable income for the taxable year 
        exceeds the applicable amount determined under section 
        1(i) with respect to such taxpayer for such taxable 
        year, the amount determined under paragraph (2) shall 
        be substituted for the amount determined under 
        subsection (b)(3)(C) for purposes of determining the 
        taxpayer's tentative minimum tax for such taxable year.
          ``(2) Determination of 20-percent capital gains 
        rate.--The amount determined under this paragraph is 
        the sum of--
                  ``(A) 15 percent of the lesser of--
                          ``(i) so much of the adjusted net 
                        capital gain (or, if less, taxable 
                        excess) as exceeds the amount on which 
                        tax is determined under subsection 
                        (b)(3)(B), or
                          ``(ii) the excess described in 
                        section 1(h)(1)(C)(ii), plus
                  ``(B) 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 subparagraph (A) and 
                subsection (b)(3)(B).''.
  (c) Conforming Amendments.--
          (1) The following provisions are each amended by 
        striking ``15 percent'' and inserting ``20 percent'':
                  (A) Section 531.
                  (B) Section 541.
                  (C) Section 1445(e)(1).
                  (D) The second sentence of section 
                7518(g)(6)(A).
                  (E) Section 53511(f)(2) of title 46, United 
                States Code.
          (2) 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 otherwise provided, the 
        amendments made by subsections (b) and (c) shall apply 
        to taxable years beginning after December 31, 2012.
          (2) Withholding.--The amendments made by paragraphs 
        (1)(C) and (2) of subsection (c) shall apply to amounts 
        paid on or after January 1, 2013.
  (e) Application of JGTRRA Sunset.--Each amendment made by 
subsections (b) and (c) shall be subject to section 303 of the 
Jobs and Growth Tax Relief Reconciliation Act of 2003 to the 
same extent and in the same manner as if such amendment was 
included in title III of such Act.

SEC. 103. TEMPORARY EXTENSION OF 2010 TAX RELIEF.

  (a) American Opportunity Tax Credit.--
          (1) In general.--Section 25A(i) is amended by 
        striking ``or 2012'' and inserting ``2012, or 2013''.
          (2) Treatment of possessions.--Section 1004(c)(1) of 
        division B of the American Recovery and Reinvestment 
        Tax Act of 2009 is amended by striking ``and 2012'' 
        each place it appears and inserting ``2012, and 2013''.
  (b) Child Tax Credit.--Section 24(d)(4) is amended--
          (1) by striking ``and 2012'' in the heading and 
        inserting ``2012, and 2013'', and
          (2) by striking ``or 2012'' and inserting ``2012, or 
        2013''.
  (c) Earned Income Tax Credit.--Section 32(b)(3) is amended--
          (1) by striking ``and 2012'' in the heading and 
        inserting ``2012, and 2013'', and
          (2) by striking ``or 2012'' and inserting ``2012, or 
        2013''.
  (d) Temporary Extension of Rule Disregarding Refunds in the 
Administration of Federal Programs and Federally Assisted 
Programs.--Subsection (b) of section 6409 is amended by 
striking ``December 31, 2012'' and inserting ``December 31, 
2013''.
  (e) 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, 2012.
          (2) Rule disregarding refunds in the administration 
        of certain programs.--The amendment made by subsection 
        (d) shall apply to amounts received after December 31, 
        2012.

SEC. 104. TEMPORARY EXTENSION OF ELECTION TO EXPENSE CERTAIN 
                    DEPRECIABLE BUSINESS ASSETS.

  (a) In General.--
          (1) Dollar limitation.--Section 179(b)(1) is 
        amended--
                  (A) by striking ``and'' at the end of 
                subparagraph (C),
                  (B) by redesignating subparagraph (D) as 
                subparagraph (E),
                  (C) by inserting after subparagraph (C) the 
                following new subparagraph:
                  ``(D) $250,000 in the case of taxable years 
                beginning in 2013, and'', and
                  (D) in subparagraph (E), as so redesignated, 
                by striking ``2012'' and inserting ``2013''.
          (2) Reduction in limitation.--Section 179(b)(2) is 
        amended--
                  (A) by striking ``and'' at the end of 
                subparagraph (C),
                  (B) by redesignating subparagraph (D) as 
                subparagraph (E),
                  (C) by inserting after subparagraph (C) the 
                following new subparagraph:
                  ``(D) $800,000 in the case of taxable years 
                beginning in 2013, and'', and
                  (D) in subparagraph (E), as so redesignated, 
                by striking ``2012'' and inserting ``2013''.
  (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended 
by striking ``2013'' and inserting ``2014''.
  (c) Election.--Section 179(c)(2) is amended by striking 
``2013'' and inserting ``2014''.
  (d) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2012.

                TITLE II--ALTERNATIVE MINIMUM TAX RELIEF

SEC. 201. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
                    EXEMPTION AMOUNT.

  (a) In General.--Paragraph (1) of section 55(d) is amended--
          (1) by striking ``$72,450'' and all that follows 
        through ``2011'' in subparagraph (A) and inserting 
        ``$78,750 in the case of taxable years beginning in 
        2012'', and
          (2) by striking ``$47,450'' and all that follows 
        through ``2011'' in subparagraph (B) and inserting 
        ``$50,600 in the case of taxable years beginning in 
        2012''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011.

SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                    NONREFUNDABLE PERSONAL CREDITS.

  (a) In General.--Paragraph (2) of section 26(a) is amended--
          (1) by striking ``or 2011'' and inserting ``2011, or 
        2012'', and
          (2) by striking ``2011'' in the heading thereof and 
        inserting ``2012''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011.

                TITLE III--TREATMENT FOR PAYGO PURPOSES

SEC. 301. TREATMENT FOR PAYGO PURPOSES.

  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.

                                  
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