PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2313 

Public Law 112–240 

112th Congress 

An Act 

Entitled the ‘‘American Taxpayer Relief Act of 2012’’. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE, ETC. 

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

Taxpayer Relief Act of 2012’’. 

(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—GENERAL EXTENSIONS 

Sec. 101. Permanent extension and modification of 2001 tax relief. 

Sec. 102. Permanent extension and modification of 2003 tax relief. 

Sec. 103. Extension of 2009 tax relief. 

Sec. 104. Permanent alternative minimum tax relief. 

TITLE II—INDIVIDUAL TAX EXTENDERS 

Sec. 201. Extension of deduction for certain expenses of elementary and secondary 

school teachers. 

Sec. 202. Extension of exclusion from gross income of discharge of qualified principal residence indebtedness. 

Sec. 203. Extension of parity for exclusion from income for employer-provided mass 

transit and parking benefits. 

Sec. 204. Extension of mortgage insurance premiums treated as qualified residence 

interest. 

Sec. 205. Extension of deduction of State and local general sales taxes. 

Sec. 206. Extension of special rule for contributions of capital gain real property 

made for conservation purposes. 

Sec. 207. Extension of above-the-line deduction for qualified tuition and related expenses. 

Sec. 208. Extension of tax-free distributions from individual retirement plans for 

charitable purposes. 

Sec. 209. Improve and make permanent the provision authorizing the Internal Revenue Service to disclose certain return and return information to certain 

prison officials. 

TITLE III—BUSINESS TAX EXTENDERS 

Sec. 301. Extension and modification of research credit. 

Sec. 302. Extension of temporary minimum low-income tax credit rate for non-federally subsidized new buildings. 

Sec. 303. Extension of housing allowance exclusion for determining area median 

gross income for qualified residential rental project exempt facility 

bonds. 

Sec. 304. Extension of Indian employment tax credit. 

American 

Taxpayer Relief 

Act of 2012. 

26 USC 1 note. 

Jan. 2, 2013 

[H.R. 8] 


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126 STAT. 2314 PUBLIC LAW 112–240—JAN. 2, 2013 

Sec. 305. Extension of new markets tax credit. 

Sec. 306. Extension of railroad track maintenance credit. 

Sec. 307. Extension of mine rescue team training credit. 

Sec. 308. Extension of employer wage credit for employees who are active duty 

members of the uniformed services. 

Sec. 309. Extension of work opportunity tax credit. 

Sec. 310. Extension of qualified zone academy bonds. 

Sec. 311. Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and 

qualified retail improvements. Sec. 312. Extension of 7-year recovery period for motorsports entertainment complexes. Sec. 313. Extension of accelerated depreciation for business property on an Indian 

reservation. 

Sec. 314. Extension of enhanced charitable deduction for contributions of food inventory. Sec. 315. Extension of increased expensing limitations and treatment of certain 

real property as section 179 property. Sec. 316. Extension of election to expense mine safety equipment. 

Sec. 317. Extension of special expensing rules for certain film and television productions. 

Sec. 318. Extension of deduction allowable with respect to income attributable to 

domestic production activities in Puerto Rico. Sec. 319. Extension of modification of tax treatment of certain payments to controlling exempt organizations. Sec. 320. Extension of treatment of certain dividends of regulated investment companies. Sec. 321. Extension of RIC qualified investment entity treatment under FIRPTA. 

Sec. 322. Extension of subpart F exception for active financing income. 

Sec. 323. Extension of look-thru treatment of payments between related controlled 

foreign corporations under foreign personal holding company rules. Sec. 324. Extension of temporary exclusion of 100 percent of gain on certain small 

business stock. 

Sec. 325. Extension of basis adjustment to stock of S corporations making charitable contributions of property. Sec. 326. Extension of reduction in S-corporation recognition period for built-in 

gains tax. Sec. 327. Extension of empowerment zone tax incentives. 

Sec. 328. Extension of tax-exempt financing for New York Liberty Zone. 

Sec. 329. Extension of temporary increase in limit on cover over of rum excise taxes 

to Puerto Rico and the Virgin Islands. Sec. 330. Modification and extension of American Samoa economic development 

credit. 

Sec. 331. Extension and modification of bonus depreciation. 

TITLE IV—ENERGY TAX EXTENDERS 

Sec. 401. Extension of credit for energy-efficient existing homes. 

Sec. 402. Extension of credit for alternative fuel vehicle refueling property. 

Sec. 403. Extension of credit for 2- or 3-wheeled plug-in electric vehicles. 

Sec. 404. Extension and modification of cellulosic biofuel producer credit. 

Sec. 405. Extension of incentives for biodiesel and renewable diesel. 

Sec. 406. Extension of production credit for Indian coal facilities placed in service 

before 2009. 

Sec. 407. Extension and modification of credits with respect to facilities producing 

energy from certain renewable resources. Sec. 408. Extension of credit for energy-efficient new homes. 

Sec. 409. Extension of credit for energy-efficient appliances. 

Sec. 410. Extension and modification of special allowance for cellulosic biofuel plant 

property. Sec. 411. Extension of special rule for sales or dispositions to implement FERC or 

State electric restructuring policy for qualified electric utilities. Sec. 412. Extension of alternative fuels excise tax credits. 

TITLE V—UNEMPLOYMENT 

Sec. 501. Extension of emergency unemployment compensation program. 

Sec. 502. Temporary extension of extended benefit provisions. 

Sec. 503. Extension of funding for reemployment services and reemployment and 

eligibility assessment activities. Sec. 504. Additional extended unemployment benefits under the Railroad Unemployment Insurance Act. 

TITLE VI—MEDICARE AND OTHER HEALTH EXTENSIONS 

Subtitle A—Medicare Extensions 

Sec. 601. Medicare physician payment update. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2315 

Sec. 602. Work geographic adjustment. 

Sec. 603. Payment for outpatient therapy services. 

Sec. 604. Ambulance add-on payments. 

Sec. 605. Extension of Medicare inpatient hospital payment adjustment for low-volume hospitals. Sec. 606. Extension of the Medicare-dependent hospital (MDH) program. 

Sec. 607. Extension for specialized Medicare Advantage plans for special needs individuals. 

Sec. 608. Extension of Medicare reasonable cost contracts. 

Sec. 609. Performance improvement. 

Sec. 610. Extension of funding outreach and assistance for low-income programs. 

Subtitle B—Other Health Extensions 

Sec. 621. Extension of the qualifying individual (QI) program. 

Sec. 622. Extension of Transitional Medical Assistance (TMA). 

Sec. 623. Extension of Medicaid and CHIP Express Lane option. 

Sec. 624. Extension of family-to-family health information centers. 

Sec. 625. Extension of Special Diabetes Program for Type I diabetes and for Indians. 

Subtitle C—Other Health Provisions 

Sec. 631. IPPS documentation and coding adjustment for implementation of MSDRGs. 

Sec. 632. Revisions to the Medicare ESRD bundled payment system to reflect findings in the GAO report. Sec. 633. Treatment of multiple service payment policies for therapy services. 

Sec. 634. Payment for certain radiology services furnished under the Medicare hospital outpatient department prospective payment system. Sec. 635. Adjustment of equipment utilization rate for advanced imaging services. 

Sec. 636. Medicare payment of competitive prices for diabetic supplies and elimination of overpayment for diabetic supplies. Sec. 637. Medicare payment adjustment for non-emergency ambulance transports 

for ESRD beneficiaries. 

Sec. 638. Removing obstacles to collection of overpayments. 

Sec. 639. Medicare advantage coding intensity adjustment. 

Sec. 640. Elimination of all funding for the Medicare Improvement Fund. 

Sec. 641. Rebasing of State DSH allotments. 

Sec. 642. Repeal of CLASS program. 

Sec. 643. Commission on Long-Term Care. 

Sec. 644. Consumer Operated and Oriented Plan program contingency fund. 

TITLE VII—EXTENSION OF AGRICULTURAL PROGRAMS 

Sec. 701. 1-year extension of agricultural programs. 

Sec. 702. Supplemental agricultural disaster assistance. 

TITLE VIII—MISCELLANEOUS PROVISIONS 

Sec. 801. Strategic delivery systems. 

Sec. 802. No cost of living adjustment in pay of members of congress. 

TITLE IX—BUDGET PROVISIONS 

Subtitle A—Modifications of Sequestration 

Sec. 901. Treatment of sequester. 

Sec. 902. Amounts in applicable retirement plans may be transferred to designated 

Roth accounts without distribution. 

Subtitle B—Budgetary Effects 

Sec. 911. Budgetary effects. 

TITLE I—GENERAL EXTENSIONS 

SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 2001 TAX 

RELIEF. 

(a) PERMANENT EXTENSION.— 

(1) IN GENERAL.—The Economic Growth and Tax Relief 

Reconciliation Act of 2001 is amended by striking title IX. 

(2) CONFORMING AMENDMENT.—The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 

is amended by striking section 304. 26 USC 121 note. 

26 USC 1 note. 


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126 STAT. 2316 PUBLIC LAW 112–240—JAN. 2, 2013 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to taxable, plan, or limitation years beginning after December 31, 2012, and estates of decedents dying, 

gifts made, or generation skipping transfers after December 

31, 2012. 

(b) APPLICATION OF INCOME TAX TO CERTAIN HIGH-INCOME

TAXPAYERS.— 

(1) INCOME TAX RATES.— 

(A) TREATMENT OF 25-, 28-, AND 33-PERCENT RATE

BRACKETS.—Paragraph (2) of section 1(i) is amended to 

read as follows: 

‘‘(2) 25-, 28-, AND 33-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)), 

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

appears, and 

‘‘(C) by substituting ‘33%’ for ‘36%’ each place it 

appears.’’. 

(B) 35-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) MODIFICATIONS TO INCOME TAX BRACKETS FOR HIGHINCOME TAXPAYERS.— 

‘‘(A) 35-PERCENT RATE BRACKET.—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 highest 

rate bracket shall be 35 percent to the extent such 

income does not exceed an amount equal to the excess 

of— 

‘‘(I) the applicable threshold, over 

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

begins, and 

‘‘(ii) the 39.6 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 THRESHOLD.—For purposes of this 

paragraph, the term ‘applicable threshold’ means— 

‘‘(i) $450,000 in the case of subsection (a), 

‘‘(ii) $425,000 in the case of subsection (b), 

‘‘(iii) $400,000 in the case of subsection (c), and 

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

(after adjustment, if any, under subparagraph (C)) in 

the case of subsection (d). 

‘‘(C) INFLATION ADJUSTMENT.—For purposes of this 

paragraph, with respect to taxable years beginning in calendar years after 2013, each of the dollar amounts under 

clauses (i), (ii), and (iii) of subparagraph (B) shall be 

adjusted in the same manner as under paragraph (1)(C)(i), 

except that subsection (f)(3)(B) shall be applied by substituting ‘2012’ for ‘1992’.’’. 

(2) PHASEOUT OF PERSONAL EXEMPTIONS AND ITEMIZED

DEDUCTIONS.— 

Definition. 

26 USC 1. 

Applicability. 

26 USC 1 note. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2317 

(A) OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.— Section 68 is amended— 

(i) by striking subsection (b) and inserting the 

following: 

‘‘(b) APPLICABLE AMOUNT.— ‘‘(1) IN GENERAL.—For purposes of this section, the term 

‘applicable amount’ means— ‘‘(A) $300,000 in the case of a joint return or a surviving 

spouse (as defined in section 2(a)), ‘‘(B) $275,000 in the case of a head of household (as 

defined in section 2(b)), 

‘‘(C) $250,000 in the case of an individual who is not 

married and who is not a surviving spouse or head of 

household, and 

‘‘(D) 1⁄2 the amount applicable under subparagraph 

(A) (after adjustment, if any, under paragraph (2)) in the 

case of a married individual filing a separate return. 

For purposes of this paragraph, marital status shall be determined under section 7703. 

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

year beginning in calendar years after 2013, each of the dollar 

amounts under subparagraphs (A), (B), and (C) of paragraph 

(1) shall be shall be increased by an amount equal to— 

‘‘(A) such dollar amount, multiplied by 

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

section 1(f)(3) for the calendar year in which the taxable 

year begins, except that section 1(f)(3)(B) shall be applied 

by substituting ‘2012’ for ‘1992’. 

If any amount after adjustment under the preceding sentence 

is not a multiple of $50, such amount shall be rounded to 

the next lowest multiple of $50.’’, and 

(ii) 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 amount in effect under section 68(b)’’, 

(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’’. 

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

31, 2012. 

(c) MODIFICATIONS OF ESTATE TAX.— 

26 USC 1 note. 

Definition. 

26 USC 68. 


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126 STAT. 2318 PUBLIC LAW 112–240—JAN. 2, 2013 

(1) MAXIMUM ESTATE TAX RATE EQUAL TO 40 PERCENT.— 

The table contained in subsection (c) of section 2001, as 

amended by section 302(a)(2) of the Tax Relief, Unemployment 

Insurance Reauthorization, and Job Creation Act of 2010, is 

amended by striking ‘‘Over $500,000’’ and all that follows and 

inserting the following: 

‘‘Over $500,000 but not over 

$750,000.

$155,800, plus 37 percent of the 

excess of such amount over 

$500,000. 

Over $750,000 but not over 

$1,000,000.

$248,300, plus 39 percent of the 

excess of such amount over 

$750,000. 

Over $1,000,000 .......................... $345,800, plus 40 percent of the 

excess of such amount over 

$1,000,000.’’. 

(2) TECHNICAL CORRECTION.—Clause (i) of section 

2010(c)(4)(B) is amended by striking ‘‘basic exclusion amount’’ 

and inserting ‘‘applicable exclusion amount’’. 

(3) EFFECTIVE DATES.— 

(A) IN GENERAL.—Except as otherwise provided by in 

this paragraph, the amendments made by this subsection 

shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2012. 

(B) TECHNICAL CORRECTION.—The amendment made 

by paragraph (2) shall take effect as if included in the 

amendments made by section 303 of the Tax Relief, 

Unemployment Insurance Reauthorization, and Job Creation Act of 2010. 

SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX 

RELIEF. 

(a) PERMANENT EXTENSION.—The Jobs and Growth Tax Relief 

Reconciliation Act of 2003 is amended by striking section 303. 

(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 of— 

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

(without regard to this paragraph) be taxed at 

a rate below 39.6 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),’’. 

26 USC 1 note. 

26 USC 2001 

note. 

Applicability. 

26 USC 2001. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2319 

(2) MINIMUM TAX.—Paragraph (3) of section 55(b) is 

amended by striking subparagraph (C), by redesignating 

subparagraph (D) as subparagraph (E), 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 excess) as exceeds the amount on which 

tax is determined under subparagraph (B), or 

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

plus 

‘‘(D) 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 subparagraphs (B) and 

(C), plus’’. 

(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) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended 

by striking ‘‘5 percent (0 percent in the case of taxable years 

beginning after 2007)’’ and inserting ‘‘0 percent’’. 

(3) 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 (3) of subsection (c) shall apply to amounts paid 

on or after January 1, 2013. 

SEC. 103. EXTENSION OF 2009 TAX RELIEF. 

(a) 5-YEAR EXTENSION OF AMERICAN OPPORTUNITY TAX

CREDIT.— 

(1) IN GENERAL.—Section 25A(i) is amended by striking 

‘‘in 2009, 2010, 2011, or 2012’’ and inserting ‘‘after 2008 and 

before 2018’’. 

(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 ‘‘in 2009, 2010, 2011, and 

2012’’ each place it appears and inserting ‘‘after 2008 and 

before 2018’’. 

(b) 5-YEAR EXTENSION OF CHILD TAX CREDIT.—Section 24(d)(4) 

is amended— 

(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the heading 

and inserting ‘‘FOR CERTAIN YEARS’’, and 

(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 

‘‘after 2008 and before 2018’’. 

(c) 5-YEAR EXTENSION OF EARNED INCOME TAX CREDIT.—Section 

32(b)(3) is amended— 

(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the heading 

and inserting ‘‘FOR CERTAIN YEARS’’, and 

26 USC 25A note. 

Applicability. 

26 USC 1 note. 

26 USC 55. 


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126 STAT. 2320 PUBLIC LAW 112–240—JAN. 2, 2013 

(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 

‘‘after 2008 and before 2018’’. 

(d) PERMANENT EXTENSION OF RULE DISREGARDING REFUNDS

IN THE ADMINISTRATION OF FEDERAL PROGRAMS AND FEDERALLY

ASSISTED PROGRAMS.—Section 6409 is amended to read as follows: 

‘‘SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PROGRAMS. 

‘‘Notwithstanding any other provision of law, any refund (or 

advance payment with respect to a refundable credit) made to 

any individual under this title shall not be taken into account 

as income, and shall not be taken into account as resources for 

a period of 12 months from receipt, for purposes of determining 

the eligibility of such individual (or any other individual) for benefits 

or assistance (or the amount or extent of benefits or assistance) 

under any Federal program or under any State or local program 

financed in whole or in part with Federal funds.’’. 

(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 REGARDING DISREGARD OF REFUNDS.—The amendment made by subsection (d) shall apply to amounts received 

after December 31, 2012. 

SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF. 

(a) 2012 EXEMPTION AMOUNTS MADE PERMANENT.— 

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

amended— 

(A) by striking ‘‘$45,000’’ and all that follows through 

‘‘2011)’’ in subparagraph (A) and inserting ‘‘$78,750’’, 

(B) by striking ‘‘$33,750’’ and all that follows through 

‘‘2011)’’ in subparagraph (B) and inserting ‘‘$50,600’’, and 

(C) by striking ‘‘paragraph (1)(A)’’ in subparagraph (C) 

and inserting ‘‘subparagraph (A)’’. 

(b) EXEMPTION AMOUNTS INDEXED FOR INFLATION.— 

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

by adding at the end the following new paragraph: 

‘‘(4) INFLATION ADJUSTMENT.— 

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

beginning in a calendar year after 2012, the amounts 

described in subparagraph (B) 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 2011’ for ‘calendar year 1992’ in 

subparagraph (B) thereof. 

‘‘(B) AMOUNTS DESCRIBED.—The amounts described in 

this subparagraph are— 

‘‘(i) each of the dollar amounts contained in subsection (b)(1)(A)(i), 

‘‘(ii) each of the dollar amounts contained in paragraph (1), and 

‘‘(iii) each of the dollar amounts in subparagraphs 

(A) and (B) of paragraph (3). 

Applicability. 

26 USC 24 note. 

Time period. 

26 USC 6409. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2321 

‘‘(C) ROUNDING.—Any increase determined under 

subparagraph (A) shall be rounded to the nearest multiple 

of $100.’’. 

(2) CONFORMING AMENDMENTS.— (A) Clause (iii) of section 55(b)(1)(A) is amended by 

striking ‘‘by substituting’’ and all that follows through 

‘‘appears.’’ and inserting ‘‘by substituting 50 percent of 

the dollar amount otherwise applicable under subclause 

(I) and subclause (II) thereof.’’. 

(B) Paragraph (3) of section 55(d) is amended— 

(i) by striking ‘‘or (2)’’ in subparagraph (A), 

(ii) by striking ‘‘and’’ at the end of subparagraph 

(B), and 

(iii) by striking subparagraph (C) and inserting 

the following new subparagraphs: 

‘‘(C) 50 percent of the dollar amount applicable under 

subparagraph (A) in the case of a taxpayer described in 

subparagraph (C) or (D) of paragraph (1), and ‘‘(D) $150,000 in the case of a taxpayer described in 

paragraph (2).’’. 

(c) ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE

CREDITS.— 

(1) IN GENERAL.—Subsection (a) of section 26 is amended 

to read as follows: 

‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The aggregate 

amount of credits allowed by this subpart for the taxable year 

shall not exceed the sum of— 

‘‘(1) the taxpayer’s regular tax liability for the taxable 

year reduced by the foreign tax credit allowable under section 

27(a), and 

‘‘(2) the tax imposed by section 55(a) for the taxable year.’’. 

(2) CONFORMING AMENDMENTS.— 

(A) ADOPTION CREDIT.— 

(i) Section 23(b) is amended by striking paragraph 

(4). 

(ii) Section 23(c) is amended by striking paragraphs (1) and (2) and inserting the following: 

‘‘(1) IN GENERAL.—If the credit allowable under subsection 

(a) for any taxable year exceeds the limitation imposed by 

section 26(a) for such taxable year reduced by the sum of 

the credits allowable under this subpart (other than this section 

and sections 25D and 1400C), such excess shall be carried 

to the succeeding taxable year and added to the credit allowable 

under subsection (a) for such taxable year.’’. 

(iii) Section 23(c) is amended by redesignating 

paragraph (3) as paragraph (2). 

(B) CHILD TAX CREDIT.— 

(i) Section 24(b) is amended by striking paragraph 

(3). 

(ii) Section 24(d)(1) is amended— 

(I) by striking ‘‘section 26(a)(2) or subsection 

(b)(3), as the case may be,’’ each place it appears 

in subparagraphs (A) and (B) and inserting ‘‘section 26(a)’’, and 

(II) by striking ‘‘section 26(a)(2) or subsection 

(b)(3), as the case may be’’ in the second last 

sentence and inserting ‘‘section 26(a)’’. 

26 USC 55. 


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126 STAT. 2322 PUBLIC LAW 112–240—JAN. 2, 2013 

(C) CREDIT FOR INTEREST ON CERTAIN HOME MORT- GAGES.—Section 25(e)(1)(C) is amended to read as follows: 

‘‘(C) APPLICABLE TAX LIMIT.—For purposes of this paragraph, the term ‘applicable tax limit’ means the limitation 

imposed by section 26(a) for the taxable year reduced by 

the sum of the credits allowable under this subpart (other 

than this section and sections 23, 25D, and 1400C).’’. 

(D) HOPE AND LIFETIME LEARNING CREDITS.—Section 

25A(i) is amended— 

(i) by striking paragraph (5) and by redesignating 

paragraphs (6) and (7) as paragraphs (5) and (6), 

respectively, and 

(ii) by striking ‘‘section 26(a)(2) or paragraph (5), 

as the case may be’’ in paragraph (5), as redesignated 

by clause (i), and inserting ‘‘section 26(a)’’. 

(E) SAVERS’ CREDIT.—Section 25B is amended by 

striking subsection (g). 

(F) RESIDENTIAL ENERGY EFFICIENT PROPERTY.—Section 

25D(c) is amended to read as follows: 

‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 

under subsection (a) exceeds the limitation imposed by section 

26(a) for such taxable year reduced by the sum of the credits 

allowable under this subpart (other than this section), such excess 

shall be carried to the succeeding taxable year and added to the 

credit allowable under subsection (a) for such succeeding taxable 

year.’’. 

(G) CERTAIN PLUG-IN ELECTRIC VEHICLES.—Section 

30(c)(2) is amended to read as follows: 

‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 

allowed under subsection (a) for any taxable year (determined 

after application of paragraph (1)) shall be treated as a credit 

allowable under subpart A for such taxable year.’’. 

(H) ALTERNATIVE MOTOR VEHICLE CREDIT.—Section 

30B(g)(2) is amended to read as follows: 

‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 

allowed under subsection (a) for any taxable year (determined 

after application of paragraph (1)) shall be treated as a credit 

allowable under subpart A for such taxable year.’’. 

(I) NEW QUALIFIED PLUG-IN ELECTRIC VEHICLE

CREDIT.—Section 30D(c)(2) is amended to read as follows: 

‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 

allowed under subsection (a) for any taxable year (determined 

after application of paragraph (1)) shall be treated as a credit 

allowable under subpart A for such taxable year.’’. 

(J) CROSS REFERENCES.—Section 55(c)(3) is amended 

by striking ‘‘26(a), 30C(d)(2),’’ and inserting ‘‘30C(d)(2)’’. 

(K) FOREIGN TAX CREDIT.—Section 904 is amended by 

striking subsection (i) and by redesignating subsections 

(j), (k), and (l) as subsections (i), (j), and (k), respectively. 

(L) FIRST-TIME HOME BUYER CREDIT FOR THE DISTRICT

OF COLUMBIA.—Section 1400C(d) is amended to read as 

follows: 

‘‘(d) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 

under subsection (a) exceeds the limitation imposed by section 

26(a) for such taxable year reduced by the sum of the credits 

allowable under subpart A of part IV of subchapter A (other than 

this section and section 25D), such excess shall be carried to the 

26 USC 25. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2323 

succeeding taxable year and added to the credit allowable under 

subsection (a) for such taxable year.’’. 

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

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

TITLE II—INDIVIDUAL TAX EXTENDERS 

SEC. 201. 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 2011’’ and inserting ‘‘2011, 2012, or 2013’’. 

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

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

SEC. 202. 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, 2013’’ and inserting ‘‘January 

1, 2014’’. 

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

shall apply to indebtedness discharged after December 31, 2012. 

SEC. 203. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR 

EMPLOYER-PROVIDED MASS TRANSIT AND PARKING 

BENEFITS. 

(a) IN GENERAL.—Paragraph (2) of section 132(f) is amended 

by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 2014’’. 

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

shall apply to months after December 31, 2011. 

SEC. 204. 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, 2011’’ and inserting ‘‘December 

31, 2013’’. 

(b) TECHNICAL AMENDMENTS.—Clause (i) of section 163(h)(4)(E) 

is amended— 

(1) by striking ‘‘Veterans Administration’’ and inserting 

‘‘Department of Veterans Affairs’’, and 

(2) by striking ‘‘Rural Housing Administration’’ and 

inserting ‘‘Rural Housing Service’’. 

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

shall apply to amounts paid or accrued after December 31, 2011. 

SEC. 205. 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, 2012’’ and inserting ‘‘January 

1, 2014’’. 

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

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

26 USC 164 note. 

Applicability. 

26 USC 163 note. 

26 USC 132 note. 

Applicability. 

26 USC 108 note. 

26 USC 62 note. 

26 USC 62. 

26 USC 23 note. 


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126 STAT. 2324 PUBLIC LAW 112–240—JAN. 2, 2013 

SEC. 206. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

(b) CONTRIBUTIONS BY CERTAIN CORPORATE FARMERS AND

RANCHERS.—Clause (iii) of section 170(b)(2)(B) is amended by 

striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to contributions made in taxable years beginning after 

December 31, 2011. 

SEC. 207. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

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

SEC. 208. 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, 2011’’ and inserting ‘‘December 

31, 2013’’. 

(b) EFFECTIVE DATE; SPECIAL RULE.— 

(1) EFFECTIVE DATE.—The amendment made by this section 

shall apply to distributions made in taxable years beginning 

after December 31, 2011. 

(2) SPECIAL RULES.—For purposes of subsections (a)(6), 

(b)(3), and (d)(8) of section 408 of the Internal Revenue Code 

of 1986, at the election of the taxpayer (at such time and 

in such manner as prescribed by the Secretary of the 

Treasury)— 

(A) any qualified charitable distribution made after 

December 31, 2012, and before February 1, 2013, shall 

be deemed to have been made on December 31, 2012, 

and 

(B) any portion of a distribution from an individual 

retirement account to the taxpayer after November 30, 

2012, and before January 1, 2013, may be treated as a 

qualified charitable distribution to the extent that— 

(i) such portion is transferred in cash after the 

distribution to an organization described in section 

408(d)(8)(B)(i) before February 1, 2013, and 

(ii) such portion is part of a distribution that would 

meet the requirements of section 408(d)(8) but for the 

fact that the distribution was not transferred directly 

to an organization described in section 408(d)(8)(B)(i). 

SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION AUTHORIZING THE INTERNAL REVENUE SERVICE TO DISCLOSE 

CERTAIN RETURN AND RETURN INFORMATION TO CERTAIN PRISON OFFICIALS. 

(a) IN GENERAL.—Paragraph (10) of section 6103(k) is amended 

to read as follows: 

‘‘(10) DISCLOSURE OF CERTAIN RETURNS AND RETURN

INFORMATION TO CERTAIN PRISON OFFICIALS.— 

Applicability. 

26 USC 408 note. 

26 USC 222 note. 

Applicability. 

26 USC 170 note. 

26 USC 170. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2325 

‘‘(A) IN GENERAL.—Under such procedures as the Secretary may prescribe, the Secretary may disclose to officers 

and employees of the Federal Bureau of Prisons and of 

any State agency charged with the responsibility for 

administration of prisons any returns or return information 

with respect to individuals incarcerated in Federal or State 

prison systems whom the Secretary has determined may 

have filed or facilitated the filing of a false or fraudulent 

return to the extent that the Secretary determines that 

such disclosure is necessary to permit effective Federal 

tax administration. 

‘‘(B) DISCLOSURE TO CONTRACTOR-RUN PRISONS.—Under 

such procedures as the Secretary may prescribe, the disclosures authorized by subparagraph (A) may be made to 

contractors responsible for the operation of a Federal or 

State prison on behalf of such Bureau or agency. 

‘‘(C) RESTRICTIONS ON USE OF DISCLOSED INFORMATION.—Any return or return information received under 

this paragraph shall be used only for the purposes of and 

to the extent necessary in taking administrative action 

to prevent the filing of false and fraudulent returns, 

including administrative actions to address possible violations of administrative rules and regulations of the prison 

facility and in administrative and judicial proceedings 

arising from such administrative actions. 

‘‘(D) RESTRICTIONS ON REDISCLOSURE AND DISCLOSURE

TO LEGAL REPRESENTATIVES.—Notwithstanding subsection 

(h)— 

‘‘(i) RESTRICTIONS ON REDISCLOSURE.—Except as 

provided in clause (ii), any officer, employee, or contractor of the Federal Bureau of Prisons or of any 

State agency charged with the responsibility for 

administration of prisons shall not disclose any 

information obtained under this paragraph to any person other than an officer or employee or contractor 

of such Bureau or agency personally and directly 

engaged in the administration of prison facilities on 

behalf of such Bureau or agency. 

‘‘(ii) DISCLOSURE TO LEGAL REPRESENTATIVES.—The 

returns and return information disclosed under this 

paragraph may be disclosed to the duly authorized 

legal representative of the Federal Bureau of Prisons, 

State agency, or contractor charged with the responsibility for administration of prisons, or of the incarcerated individual accused of filing the false or fraudulent 

return who is a party to an action or proceeding 

described in subparagraph (C), solely in preparation 

for, or for use in, such action or proceeding.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Paragraph (3) of section 6103(a) is amended by inserting 

‘‘subsection (k)(10),’’ after ‘‘subsection (e)(1)(D)(iii),’’. 

(2) Paragraph (4) of section 6103(p) is amended— 

(A) by inserting ‘‘subsection (k)(10),’’ before ‘‘subsection 

(l)(10),’’ in the matter preceding subparagraph (A), 

(B) in subparagraph (F)(i)— 

(i) by inserting ‘‘(k)(10),’’ before ‘‘or (l)(6),’’, and 


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126 STAT. 2326 PUBLIC LAW 112–240—JAN. 2, 2013 

(ii) by inserting ‘‘subsection (k)(10) or’’ before ‘‘subsection (l)(10),’’, and 

(C) by inserting ‘‘subsection (k)(10) or’’ before ‘‘subsection (l)(10),’’ both places it appears in the matter following subparagraph (F)(iii). 

(3) Paragraph (2) of section 7213(a) is amended by inserting 

‘‘(k)(10),’’ before ‘‘(l)(6),’’. 

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

shall take effect on the date of the enactment of this Act. 

TITLE III—BUSINESS TAX EXTENDERS 

SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT. 

(a) EXTENSION.— (1) IN GENERAL.—Subparagraph (B) of section 41(h)(1) is 

amended by striking ‘‘December 31, 2011’’ and inserting 

‘‘December 31, 2013’’. 

(2) CONFORMING AMENDMENT.—Subparagraph (D) of section 45C(b)(1) is amended by striking ‘‘December 31, 2011’’ 

and inserting ‘‘December 31, 2013’’. 

(b) INCLUSION OF QUALIFIED RESEARCH EXPENSES AND GROSS

RECEIPTS OF AN ACQUIRED PERSON.— 

(1) PARTIAL INCLUSION OF PRE-ACQUISITION QUALIFIED

RESEARCH EXPENSES AND GROSS RECEIPTS.—Subparagraph (A) 

of section 41(f)(3) is amended to read as follows: 

‘‘(A) ACQUISITIONS.— 

‘‘(i) IN GENERAL.—If a person acquires the major 

portion of either a trade or business or a separate 

unit of a trade or business (hereinafter in this paragraph referred to as the ‘acquired business’) of another 

person (hereinafter in this paragraph referred to as 

the ‘predecessor’), then the amount of qualified 

research expenses paid or incurred by the acquiring 

person during the measurement period shall be 

increased by the amount determined under clause (ii), 

and the gross receipts of the acquiring person for such 

period shall be increased by the amount determined 

under clause (iii). 

‘‘(ii) AMOUNT DETERMINED WITH RESPECT TO QUALIFIED RESEARCH EXPENSES.—The amount determined 

under this clause is— 

‘‘(I) for purposes of applying this section for 

the taxable year in which such acquisition is made, 

the acquisition year amount, and 

‘‘(II) for purposes of applying this section for 

any taxable year after the taxable year in which 

such acquisition is made, the qualified research 

expenses paid or incurred by the predecessor with 

respect to the acquired business during the 

measurement period. 

‘‘(iii) AMOUNT DETERMINED WITH RESPECT TO GROSS

RECEIPTS.—The amount determined under this clause 

is the amount which would be determined under clause 

(ii) if ‘the gross receipts of’ were substituted for ‘the 

qualified research expenses paid or incurred by’ each 

place it appears in clauses (ii) and (iv). 

26 USC 6103 

note. 

26 USC 7213. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2327 

‘‘(iv) ACQUISITION YEAR AMOUNT.—For purposes of 

clause (ii), the acquisition year amount is the amount 

equal to the product of— 

‘‘(I) the qualified research expenses paid or 

incurred by the predecessor with respect to the 

acquired business during the measurement period, 

and 

‘‘(II) the number of days in the period beginning on the date of the acquisition and ending 

on the last day of the taxable year in which the 

acquisition is made, 

divided by the number of days in the acquiring person’s 

taxable year. 

‘‘(v) SPECIAL RULES FOR COORDINATING TAXABLE

YEARS.—In the case of an acquiring person and a predecessor whose taxable years do not begin on the same 

date— 

‘‘(I) each reference to a taxable year in clauses 

(ii) and (iv) shall refer to the appropriate taxable 

year of the acquiring person, 

‘‘(II) the qualified research expenses paid or 

incurred by the predecessor, and the gross receipts 

of the predecessor, during each taxable year of 

the predecessor any portion of which is part of 

the measurement period shall be allocated equally 

among the days of such taxable year, 

‘‘(III) the amount of such qualified research 

expenses taken into account under clauses (ii) and 

(iv) with respect to a taxable year of the acquiring 

person shall be equal to the total of the expenses 

attributable under subclause (II) to the days occurring during such taxable year, and 

‘‘(IV) the amount of such gross receipts taken 

into account under clause (iii) with respect to a 

taxable year of the acquiring person shall be equal 

to the total of the gross receipts attributable under 

subclause (II) to the days occurring during such 

taxable year. 

‘‘(vi) MEASUREMENT PERIOD.—For purposes of this 

subparagraph, the term ‘measurement period’ means, 

with respect to the taxable year of the acquiring person 

for which the credit is determined, any period of the 

acquiring person preceding such taxable year which 

is taken into account for purposes of determining the 

credit for such year.’’. 

(2) EXPENSES AND GROSS RECEIPTS OF A PREDECESSOR.— 

Subparagraph (B) of section 41(f)(3) is amended to read as 

follows: 

‘‘(B) DISPOSITIONS.—If the predecessor furnished to the 

acquiring person such information as is necessary for the 

application of subparagraph (A), then, for purposes of 

applying this section for any taxable year ending after 

such disposition, the amount of qualified research expenses 

paid or incurred by, and the gross receipts of, the predecessor during the measurement period (as defined in 

26 USC 41. 

Definition. 


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126 STAT. 2328 PUBLIC LAW 112–240—JAN. 2, 2013 

subparagraph (A)(vi), determined by substituting ‘predecessor’ for ‘acquiring person’ each place it appears) shall 

be reduced by— 

‘‘(i) in the case of the taxable year in which such 

disposition is made, an amount equal to the product 

of— 

‘‘(I) the qualified research expenses paid or 

incurred by, or gross receipts of, the predecessor 

with respect to the acquired business during the 

measurement period (as so defined and so determined), and 

‘‘(II) the number of days in the period beginning on the date of acquisition (as determined 

for purposes of subparagraph (A)(iv)(II)) and 

ending on the last day of the taxable year of the 

predecessor in which the disposition is made, 

divided by the number of days in the taxable year 

of the predecessor, and 

‘‘(ii) in the case of any taxable year ending after 

the taxable year in which such disposition is made, 

the amount described in clause (i)(I).’’. 

(c) AGGREGATION OF EXPENDITURES.—Paragraph (1) of section 

41(f) is amended— 

(1) by striking ‘‘shall be its proportionate shares of the 

qualified research expenses, basic research payments, and 

amounts paid or incurred to energy research consortiums, 

giving rise to the credit’’ in subparagraph (A)(ii) and inserting 

‘‘shall be determined on a proportionate basis to its share 

of the aggregate of the qualified research expenses, basic 

research payments, and amounts paid or incurred to energy 

research consortiums, taken into account by such controlled 

group for purposes of this section’’, and 

(2) by striking ‘‘shall be its proportionate shares of the 

qualified research expenses, basic research payments, and 

amounts paid or incurred to energy research consortiums, 

giving rise to the credit’’ in subparagraph (B)(ii) and inserting 

‘‘shall be determined on a proportionate basis to its share 

of the aggregate of the qualified research expenses, basic 

research payments, and amounts paid or incurred to energy 

research consortiums, taken into account by all such persons 

under common control for purposes of this section’’. 

(d) EFFECTIVE DATE.— 

(1) EXTENSION.—The amendments made by subsection (a) 

shall apply to amounts paid or incurred after December 31, 

2011. 

(2) MODIFICATIONS.—The amendments made by subsections 

(b) and (c) shall apply to taxable years beginning after 

December 31, 2011. 

SEC. 302. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX 

CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED NEW 

BUILDINGS. 

(a) IN GENERAL.—Subparagraph (A) of section 42(b)(2) is 

amended by striking ‘‘and before December 31, 2013’’ and inserting 

‘‘with respect to housing credit dollar amount allocations made 

before January 1, 2014’’. 

Applicability. 

26 USC 41 note. 

26 USC 41. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2329 

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

shall take effect on the date of the enactment of this Act. 

SEC. 303. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR 

DETERMINING AREA MEDIAN GROSS INCOME FOR QUALIFIED RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY 

BONDS. 

(a) IN GENERAL.—Subsection (b) of section 3005 of the Housing 

Assistance Tax Act of 2008 is amended by striking ‘‘January 1, 

2012’’ each place it appears and inserting ‘‘January 1, 2014’’. 

(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. 304. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT. 

(a) IN GENERAL.—Subsection (f) of section 45A is amended 

by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

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

SEC. 305. EXTENSION OF NEW MARKETS TAX CREDIT. 

(a) IN GENERAL.—Subparagraph (G) of section 45D(f)(1) is 

amended by striking ‘‘2010 and 2011’’ and inserting ‘‘2010, 2011, 

2012, and 2013’’. 

(b) CARRYOVER OF UNUSED LIMITATION.—Paragraph (3) of section 45D(f) is amended by striking ‘‘2016’’ and inserting ‘‘2018’’. 

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

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

SEC. 306. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT. 

(a) IN GENERAL.—Subsection (f) of section 45G is amended 

by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 2014’’. 

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

shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2011. 

SEC. 307. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT. 

(a) IN GENERAL.—Subsection (e) of section 45N is amended 

by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

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

SEC. 308. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to payments made after December 31, 2011. 

SEC. 309. EXTENSION OF WORK OPPORTUNITY TAX CREDIT. 

(a) IN GENERAL.—Subparagraph (B) of section 51(c)(4) is 

amended by striking ‘‘after’’ and all that follows and inserting 

‘‘after December 31, 2013’’. 

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

shall apply to individuals who begin work for the employer after 

December 31, 2011. 

Applicability. 

26 USC 51 note. 

Applicability. 

26 USC 45P note. 

26 USC 45N 

note. 

Applicability. 

26 USC 45G 

note. 

26 USC 45D 

note. 

26 USC 45A note. 

26 USC 45A. 

26 USC 142 note. 

26 USC 142 note. 

26 USC 42 note. 


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126 STAT. 2330 PUBLIC LAW 112–240—JAN. 2, 2013 

SEC. 310. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS. 

(a) IN GENERAL.—Paragraph (1) of section 54E(c) is amended 

by inserting ‘‘, 2012, and 2013’’ after ‘‘for 2011’’. 

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

shall apply to obligations issued after December 31, 2011. 

SEC. 311. 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, 2012’’ and 

inserting ‘‘January 1, 2014’’. 

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

shall apply to property placed in service after December 31, 2011. 

SEC. 312. 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, 2011’’ and inserting ‘‘December 

31, 2013’’. 

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

shall apply to property placed in service after December 31, 2011. 

SEC. 313. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to property placed in service after December 31, 2011. 

SEC. 314. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to contributions made after December 31, 2011. 

SEC. 315. 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 ‘‘2010 or 2011,’’ in subparagraph (B) 

and inserting ‘‘2010, 2011, 2012, or 2013, and’’, 

(B) by striking subparagraph (C), 

(C) by redesignating subparagraph (D) as subparagraph (C), and 

(D) in subparagraph (C), as so redesignated, by striking 

‘‘2012’’ and inserting ‘‘2013’’. 

(2) REDUCTION IN LIMITATION.—Section 179(b)(2) is 

amended— 

(A) by striking ‘‘2010 or 2011,’’ in subparagraph (B) 

and inserting ‘‘2010, 2011, 2012, or 2013, and’’, 

(B) by striking subparagraph (C), 

(C) by redesignating subparagraph (D) as subparagraph (C), and 

Applicability. 

26 USC 170 note. 

Applicability. 

26 USC 168 note. 

Applicability. 

26 USC 168 note. 

Applicability. 

26 USC 168 note. 

Applicability. 

26 USC 54E note. 

26 USC 54E. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2331 

(D) in subparagraph (C), as so redesignated, by striking 

‘‘2012’’ and inserting ‘‘2013’’. 

(3) CONFORMING AMENDMENT.—Subsection (b) of section 

179 is amended by striking paragraph (6). 

(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) SPECIAL RULES FOR TREATMENT OF QUALIFIED REAL PROP- ERTY.— (1) IN GENERAL.—Section 179(f)(1) is amended by striking 

‘‘2010 or 2011’’ and inserting ‘‘2010, 2011, 2012, or 2013’’. 

(2) CARRYOVER LIMITATION.— (A) IN GENERAL.—Section 179(f)(4) is amended by 

striking ‘‘2011’’ each place it appears and inserting ‘‘2013’’. 

(B) CONFORMING AMENDMENT.—Subparagraph (C) of 

section 179(f)(4) is amended— 

(i) in the heading, by striking ‘‘2010’’ and inserting 

‘‘2010, 2011 AND 2012’’, and 

(ii) by adding at the end the following: ‘‘For the 

last taxable year beginning in 2013, the amount determined under subsection (b)(3)(A) for such taxable year 

shall be determined without regard to this paragraph.’’. 

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

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

SEC. 316. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT. 

(a) IN GENERAL.—Subsection (g) of section 179E is amended 

by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to property placed in service after December 31, 2011. 

SEC. 317. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to productions commencing after December 31, 2011. 

SEC. 318. 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 6 taxable years’’ and inserting ‘‘first 

8 taxable years’’, and 

(2) by striking ‘‘January 1, 2012’’ and inserting ‘‘January 

1, 2014’’. 

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

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

SEC. 319. 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, 2011’’ and inserting ‘‘December 

31, 2013’’. 

26 USC 199 note. 

Applicability. 

26 USC 181 note. 

Applicability. 

26 USC 179E 

note. 

26 USC 179 note. 

26 USC 179. 


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126 STAT. 2332 PUBLIC LAW 112–240—JAN. 2, 2013 

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

shall apply to payments received or accrued after December 31, 

2011. 

SEC. 320. 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, 2011’’ and 

inserting ‘‘December 31, 2013’’. 

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

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

SEC. 321. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

(b) EFFECTIVE DATE.— 

(1) IN GENERAL.—The amendment made by subsection (a) 

shall take effect on January 1, 2012. 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. 

(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, 

2011, 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. 322. 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, 2012’’ and inserting ‘‘January 

1, 2014’’, and 

(2) by striking ‘‘December 31, 2011’’ and inserting 

‘‘December 31, 2013’’. 

(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, 2012’’ and 

inserting ‘‘January 1, 2014’’. 

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

shall apply to taxable years of foreign corporations beginning after 

December 31, 2011, and to taxable years of United States shareholders with or within which any such taxable year of such foreign 

corporation ends. 

Applicability. 

26 USC 953 note. 

26 USC 897 note. 

26 USC 871 note. 

26 USC 871. 

Applicability. 

26 USC 512 note. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2333 

SEC. 323. 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, 2012’’ and inserting ‘‘January 

1, 2014’’. 

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

shall apply to taxable years of foreign corporations beginning after 

December 31, 2011, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end. 

SEC. 324. 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, 2012’’ and inserting ‘‘January 

1, 2014’’, and 

(2) by striking ‘‘AND 2011’’ and inserting ‘‘, 2011, 2012, 

AND 2013’’ in the heading thereof. 

(b) TECHNICAL AMENDMENTS.— 

(1) SPECIAL RULE FOR 2009 AND CERTAIN PERIOD IN 2010.— 

Paragraph (3) of section 1202(a) is amended by adding at the 

end the following new flush sentence: 

‘‘In the case of any stock which would be described in the 

preceding sentence (but for this sentence), the acquisition date 

for purposes of this subsection shall be the first day on which 

such stock was held by the taxpayer determined after the 

application of section 1223.’’. 

(2) 100 PERCENT EXCLUSION.—Paragraph (4) of section 

1202(a) is amended by adding at the end the following new 

flush sentence: 

‘‘In the case of any stock which would be described in the 

preceding sentence (but for this sentence), the acquisition date 

for purposes of this subsection shall be the first day on which 

such stock was held by the taxpayer determined after the 

application of section 1223.’’. 

(c) EFFECTIVE DATES.— 

(1) IN GENERAL.—The amendments made by subsection 

(a) shall apply to stock acquired after December 31, 2011. 

(2) SUBSECTION (b)(1).—The amendment made by subsection (b)(1) shall take effect as if included in section 1241(a) 

of division B of the American Recovery and Reinvestment Act 

of 2009. 

(3) SUBSECTION (b)(2).—The amendment made by subsection (b)(2) shall take effect as if included in section 2011(a) 

of the Creating Small Business Jobs Act of 2010. 

SEC. 325. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to contributions made in taxable years beginning after 

December 31, 2011. 

Applicability. 

26 USC 1367 

note. 

26 USC 1202 

note. 

Applicability. 

Applicability. 

26 USC 954 note. 

26 USC 954. 


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126 STAT. 2334 PUBLIC LAW 112–240—JAN. 2, 2013 

SEC. 326. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. 

(a) IN GENERAL.—Paragraph (7) of section 1374(d) is amended— 

(1) by redesignating subparagraph (C) as subparagraph 

(D), and 

(2) by inserting after subparagraph (B) the following new 

subparagraph: 

‘‘(C) SPECIAL RULE FOR 2012 AND 2013.—For purposes 

of determining the net recognized built-in gain for taxable 

years beginning in 2012 or 2013, subparagraphs (A) and 

(D) shall be applied by substituting ‘5-year’ for ‘10-year’.’’, 

and 

(3) by adding at the end the following new subparagraph: 

‘‘(E) INSTALLMENT SALES.—If an S corporation sells 

an asset and reports the income from the sale using the 

installment method under section 453, the treatment of 

all payments received shall be governed by the provisions 

of this paragraph applicable to the taxable year in which 

such sale was made.’’. 

(b) TECHNICAL AMENDMENT.—Subparagraph (B) of section 

1374(d)(2) is amended by inserting ‘‘described in subparagraph (A)’’ 

after ‘‘, for any taxable year’’. 

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

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

SEC. 327. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES. 

(a) IN GENERAL.—Clause (i) of section 1391(d)(1)(A) is amended 

by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

(b) INCREASED EXCLUSION OF GAIN ON STOCK OF EMPOWERMENT

ZONE BUSINESSES.—Subparagraph (C) of section 1202(a)(2) is 

amended— 

(1) by striking ‘‘December 31, 2016’’ and inserting 

‘‘December 31, 2018’’; and 

(2) by striking ‘‘2016’’ in the heading and inserting ‘‘2018’’. 

(c) 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. 

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

shall apply to periods after December 31, 2011. 

SEC. 328. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK LIBERTY ZONE. 

(a) IN GENERAL.—Subparagraph (D) of section 1400L(d)(2) is 

amended by striking ‘‘January 1, 2012’’ and inserting ‘‘January 

1, 2014’’. 

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

shall apply to bonds issued after December 31, 2011. 

Applicability. 

26 USC 1400L 

note. 

Applicability. 

26 USC 1202 

note. 

26 USC 1391 

note. 

26 USC 1374 

note. 

Applicability. 

26 USC 1374. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2335 

SEC. 329. 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, 2012’’ and inserting ‘‘January 1, 2014’’. 

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

shall apply to distilled spirits brought into the United States after 

December 31, 2011. 

SEC. 330. MODIFICATION AND EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT. 

(a) MODIFICATION.— 

(1) IN GENERAL.—Subsection (a) of section 119 of division 

A of the Tax Relief and Health Care Act of 2006 is amended 

by striking ‘‘if such corporation’’ and all that follows and 

inserting ‘‘if— 

‘‘(1) in the case of a taxable year beginning before January 

1, 2012, such corporation— 

‘‘(A) is an existing credit claimant with respect to American Samoa, and 

‘‘(B) elected the application of section 936 of the 

Internal Revenue Code of 1986 for its last taxable year 

beginning before January 1, 2006, and 

‘‘(2) in the case of a taxable year beginning after December 

31, 2011, such corporation meets the requirements of subsection 

(e).’’. 

(2) REQUIREMENTS.—Section 119 of division A of such Act 

is amended by adding at the end the following new subsection: 

‘‘(e) QUALIFIED PRODUCTION ACTIVITIES INCOME REQUIREMENT.—A corporation meets the requirement of this subsection 

if such corporation has qualified production activities income, as 

defined in subsection (c) of section 199 of the Internal Revenue 

Code of 1986, determined by substituting ‘American Samoa’ for 

‘the United States’ each place it appears in paragraphs (3), (4), 

and (6) of such subsection (c), for the taxable year.’’. 

(b) EXTENSION.—Subsection (d) of section 119 of division A 

of the Tax Relief and Health Care Act of 2006 is amended by 

striking ‘‘shall apply’’ and all that follows and inserting ‘‘shall 

apply— 

‘‘(1) in the case of a corporation that meets the requirements of subparagraphs (A) and (B) of subsection (a)(1), to 

the first 8 taxable years of such corporation which begin after 

December 31, 2006, and before January 1, 2014, and 

‘‘(2) in the case of a corporation that does not meet the 

requirements of subparagraphs (A) and (B) of subsection (a)(1), 

to the first 2 taxable years of such corporation which begin 

after December 31, 2011, and before January 1, 2014.’’. 

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

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

SEC. 331. EXTENSION AND MODIFICATION OF BONUS DEPRECIATION. 

(a) IN GENERAL.—Paragraph (2) of section 168(k) is amended— 

(1) by striking ‘‘January 1, 2014’’ in subparagraph (A)(iv) 

and inserting ‘‘January 1, 2015’’, and 

(2) by striking ‘‘January 1, 2013’’ each place it appears 

and inserting ‘‘January 1, 2014’’. 

26 USC 30A note. 

26 USC 30A note. 

Applicability. 

26 USC 7652 

note. 

26 USC 7652. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
126 STAT. 2336 PUBLIC LAW 112–240—JAN. 2, 2013 

(b) SPECIAL RULE FOR FEDERAL LONG-TERM CONTRACTS.— 

Clause (ii) of section 460(c)(6)(B) is amended by inserting ‘‘, or 

after December 31, 2012, and before January 1, 2014 (January 

1, 2015, in the case of property described in section 168(k)(2)(B))’’ 

before the period. 

(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 ‘‘2013’’ and inserting ‘‘2014’’. 

(2) ROUND 3 EXTENSION PROPERTY.—Paragraph (4) of section 168(k) is amended by adding at the end the following 

new subparagraph: 

‘‘(J) SPECIAL RULES FOR ROUND 3 EXTENSION PROPERTY.— 

‘‘(i) IN GENERAL.—In the case of round 3 extension 

property, this paragraph shall be applied without 

regard to— 

‘‘(I) the limitation described in subparagraph 

(B)(i) thereof, and 

‘‘(II) the business credit increase amount 

under subparagraph (E)(iii) thereof. 

‘‘(ii) TAXPAYERS PREVIOUSLY ELECTING ACCELERATION.—In the case of a taxpayer who made the election 

under subparagraph (A) for its first taxable year ending 

after March 31, 2008, a taxpayer who made the election 

under subparagraph (H)(ii) for its first taxable year 

ending after December 31, 2008, or a taxpayer who 

made the election under subparagraph (I)(iii) for its 

first taxable year ending after December 31, 2010— 

‘‘(I) the taxpayer may elect not to have this 

paragraph apply to round 3 extension property, 

but 

‘‘(II) if the taxpayer does not make the election 

under subclause (I), in applying this paragraph 

to the taxpayer the bonus depreciation amount, 

maximum amount, and maximum increase amount 

shall be computed and applied to eligible qualified 

property which is round 3 extension property. 

The amounts described in subclause (II) shall be computed separately from any amounts computed with 

respect to eligible qualified property which is not round 

3 extension property. 

‘‘(iii) TAXPAYERS NOT PREVIOUSLY ELECTING ACCELERATION.—In the case of a taxpayer who neither made 

the election under subparagraph (A) for its first taxable 

year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable 

year ending after December 31, 2008, nor made the 

election under subparagraph (I)(iii) for any taxable 

year ending after December 31, 2010— 

‘‘(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after 

December 31, 2012, and each subsequent taxable 

year, and 

‘‘(II) if the taxpayer makes the election under 

subclause (I), this paragraph shall only apply to 

Applicability. 

Applicability. 

26 USC 460. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2337 

eligible qualified property which is round 3 extension property. 

‘‘(iv) ROUND 3 EXTENSION PROPERTY.—For purposes 

of this subparagraph, the term ‘round 3 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 331(a) of the American Taxpayer Relief Act of 2012 (and the application 

of such extension to this paragraph pursuant to the 

amendment made by section 331(c)(1) of such Act).’’. 

(d) NORMALIZATION RULES AMENDMENT.—Clause (ii) of section 

168(i)(9)(A) is amended by inserting ‘‘(respecting all elections made 

by the taxpayer under this section)’’ after ‘‘such property’’. 

(e) CONFORMING AMENDMENTS.— (1) The heading for subsection (k) of section 168 is amended 

by striking ‘‘JANUARY 1, 2013’’ and inserting ‘‘JANUARY 1, 2014’’. 

(2) The heading for clause (ii) of section 168(k)(2)(B) is 

amended by striking ‘‘PRE-JANUARY 1, 2013’’ and inserting ‘‘PRE- JANUARY 1, 2014’’. 

(3) Subparagraph (C) of section 168(n)(2) is amended by 

striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 

(4) Subparagraph (D) of section 1400L(b)(2) is amended 

by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 

(5) Subparagraph (B) of section 1400N(d)(3) is amended 

by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 

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

shall apply to property placed in service after December 31, 2012, 

in taxable years ending after such date. 

TITLE IV—ENERGY TAX EXTENDERS 

SEC. 401. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING 

HOMES. 

(a) IN GENERAL.—Paragraph (2) of section 25C(g) is amended 

by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to property placed in service after December 31, 2011. 

SEC. 402. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 

REFUELING PROPERTY. 

(a) IN GENERAL.—Paragraph (2) of section 30C(g) is amended 

by striking ‘‘December 31, 2011.’’ and inserting ‘‘December 31, 2013’’. 

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

shall apply to property placed in service after December 31, 2011. 

SEC. 403. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN ELECTRIC VEHICLES. 

(a) IN GENERAL.—Section 30D is amended by adding at the 

end the following new subsection: 

‘‘(g) CREDIT ALLOWED FOR 2- AND 3-WHEELED PLUG-IN ELECTRIC

VEHICLES.— 

‘‘(1) IN GENERAL.—In the case of a qualified 2- or 3-wheeled 

plug-in electric vehicle— 

‘‘(A) there shall be allowed as a credit against the 

tax imposed by this chapter for the taxable year an amount 

equal to the sum of the applicable amount with respect 

Applicability. 

26 USC 30C note. 

Applicability. 

26 USC 25C note. 

Applicability. 

26 USC 168 note. 

26 USC 168. 

Definition. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
126 STAT. 2338 PUBLIC LAW 112–240—JAN. 2, 2013 

to each such qualified 2- or 3-wheeled plug-in electric 

vehicle placed in service by the taxpayer during the taxable 

year, and 

‘‘(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a). 

‘‘(2) APPLICABLE AMOUNT.—For purposes of paragraph (1), 

the applicable amount is an amount equal to the lesser of— 

‘‘(A) 10 percent of the cost of the qualified 2- or 3- 

wheeled plug-in electric vehicle, or ‘‘(B) $2,500. 

‘‘(3) QUALIFIED 2- OR 3-WHEELED PLUG-IN ELECTRIC

VEHICLE.—The term ‘qualified 2- or 3-wheeled plug-in electric 

vehicle’ means any vehicle which— 

‘‘(A) has 2 or 3 wheels, 

‘‘(B) meets the requirements of subparagraphs (A), (B), 

(C), (E), and (F) of subsection (d)(1) (determined by substituting ‘2.5 kilowatt hours’ for ‘4 kilowatt hours’ in 

subparagraph (F)(i)), 

‘‘(C) is manufactured primarily for use on public 

streets, roads, and highways, 

‘‘(D) is capable of achieving a speed of 45 miles per 

hour or greater, and 

‘‘(E) is acquired after December 31, 2011, and before 

January 1, 2014.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) NO DOUBLE BENEFIT.—Paragraph (2) of section 30D(f) 

is amended— 

(A) by striking ‘‘new qualified plug-in electric drive 

motor vehicle’’ and inserting ‘‘vehicle for which a credit 

is allowable under subsection (a)’’, and 

(B) by striking ‘‘allowed under subsection (a)’’ and 

inserting ‘‘allowed under such subsection’’. 

(2) AIR QUALITY AND SAFETY STANDARDS.—Section 30D(f)(7) 

is amended by striking ‘‘motor vehicle’’ and inserting ‘‘vehicle’’. 

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

shall apply to vehicles acquired after December 31, 2011. 

SEC. 404. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL 

PRODUCER CREDIT. 

(a) EXTENSION.— 

(1) IN GENERAL.—Subparagraph (H) of section 40(b)(6) is 

amended to read as follows: 

‘‘(H) APPLICATION OF PARAGRAPH.— 

‘‘(i) IN GENERAL.—This paragraph shall apply with 

respect to qualified cellulosic biofuel production after 

December 31, 2008, and before January 1, 2014. 

‘‘(ii) NO CARRYOVER TO CERTAIN YEARS AFTER

EXPIRATION.—If this paragraph ceases to apply for any 

period by reason of clause (i), rules similar to the 

rules of subsection (e)(2) shall apply.’’. 

(2) CONFORMING AMENDMENT.—Paragraph (2) of section 

40(e) is amended by striking ‘‘or subsection (b)(6)(H)’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in section 15321(b) of 

the Heartland, Habitat, and Horticulture Act of 2008. 

(b) ALGAE TREATED AS A QUALIFIED FEEDSTOCK.— 

26 USC 40 note. 

Applicability. 

26 USC 30D 

note. 

26 USC 30D. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2339 

(1) IN GENERAL.—Subclause (I) of section 40(b)(6)(E)(i) is 

amended to read as follows: 

‘‘(I) is derived by, or from, qualified feedstocks, 

and’’. 

(2) QUALIFIED FEEDSTOCK; SPECIAL RULES FOR ALGAE.— 

Paragraph (6) of section 40(b) is amended by redesignating 

subparagraphs (F), (G), and (H), as amended by this Act, as 

subparagraphs (H), (I), and (J), respectively, and by inserting 

after subparagraph (E) the following new subparagraphs: 

‘‘(F) QUALIFIED FEEDSTOCK.—For purposes of this paragraph, the term ‘qualified feedstock’ means— 

‘‘(i) any lignocellulosic or hemicellulosic matter 

that is available on a renewable or recurring basis, 

and 

‘‘(ii) any cultivated algae, cyanobacteria, or lemna. 

‘‘(G) SPECIAL RULES FOR ALGAE.—In the case of fuel 

which is derived by, or from, feedstock described in 

subparagraph (F)(ii) and which is sold by the taxpayer 

to another person for refining by such other person into 

a fuel which meets the requirements of subparagraph 

(E)(i)(II) and the refined fuel is not excluded under subparagraph (E)(iii)— 

‘‘(i) such sale shall be treated as described in 

subparagraph (C)(i), 

‘‘(ii) such fuel shall be treated as meeting the 

requirements of subparagraph (E)(i)(II) and as not 

being excluded under subparagraph (E)(iii) in the 

hands of such taxpayer, and 

‘‘(iii) except as provided in this subparagraph, such 

fuel (and any fuel derived from such fuel) shall not 

be taken into account under subparagraph (C) with 

respect to the taxpayer or any other person.’’. 

(3) CONFORMING AMENDMENTS.— 

(A) Section 40, as amended by paragraph (2), is 

amended— 

(i) by striking ‘‘cellulosic biofuel’’ each place it 

appears in the text thereof and inserting ‘‘second 

generation biofuel’’, 

(ii) by striking ‘‘CELLULOSIC’’ in the headings of 

subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting 

‘‘SECOND GENERATION’’, and 

(iii) by striking ‘‘CELLULOSIC’’ in the headings of 

subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and 

(e)(3) and inserting ‘‘SECOND GENERATION’’. 

(B) Clause (ii) of section 40(b)(6)(E) is amended by 

striking ‘‘Such term shall not’’ and inserting ‘‘The term 

‘second generation biofuel’ shall not’’. 

(C) Paragraph (1) of section 4101(a) is amended by 

striking ‘‘cellulosic biofuel’’ and inserting ‘‘second generation biofuel’’. 

(4) EFFECTIVE DATE.—The amendments made by this subsection shall apply to fuels sold or used after the date of 

the enactment of this Act. 

Applicability. 

26 USC 40 note. 

26 USC 40. 


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126 STAT. 2340 PUBLIC LAW 112–240—JAN. 2, 2013 

SEC. 405. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

(b) 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, 2011’’ and inserting ‘‘December 31, 2013’’. 

(2) Subparagraph (B) of section 6427(e)(6) is amended by 

striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

2013’’. 

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

shall apply to fuel sold or used after December 31, 2011. 

SEC. 406. 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 ‘‘7-year period’’ each place it appears and 

inserting ‘‘8-year period’’. 

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

shall apply to coal produced after December 31, 2012. 

SEC. 407. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT 

TO FACILITIES PRODUCING ENERGY FROM CERTAIN 

RENEWABLE RESOURCES. 

(a) PRODUCTION TAX CREDIT.— 

(1) EXTENSION FOR WIND FACILITIES.—Paragraph (1) of section 45(d) is amended by striking ‘‘January 1, 2013’’ and 

inserting ‘‘January 1, 2014’’. 

(2) EXCLUSION OF PAPER WHICH IS COMMONLY RECYCLED

FROM DEFINITION OF MUNICIPAL SOLID WASTE.—Section 45(c)(6) 

is amended by inserting ‘‘, except that such term does not 

include paper which is commonly recycled and which has been 

segregated from other solid waste (as so defined)’’ after ‘‘(42 

U.S.C. 6903)’’. 

(3) MODIFICATION TO DEFINITION OF QUALIFIED FACILITY.— 

(A) IN GENERAL.—The following provisions of section 

45(d), as amended by paragraph (1), are each amended 

by striking ‘‘before January 1, 2014’’ and inserting ‘‘the 

construction of which begins before January 1, 2014’’: 

(i) Paragraph (1). 

(ii) Paragraph (2)(A)(i). 

(iii) Paragraph (3)(A)(i)(I). 

(iv) Paragraph (6). 

(v) Paragraph (7). 

(vi) Paragraph (9)(B). 

(vii) Paragraph (11)(B). 

(B) CERTAIN CLOSED-LOOP BIOMASS FACILITIES.— 

Subparagraph (A) of section 45(d)(2) is amended by adding 

at the end the following new flush sentence: 

‘‘For purposes of clause (ii), a facility shall be treated 

as modified before January 1, 2014, if the construction 

of such modification begins before such date.’’. 

Applicability. 

26 USC 45 note. 

Applicability. 

26 USC 40A note. 

26 USC 40A. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2341 

(C) CERTAIN OPEN-LOOP BIOMASS FACILITIES.—Clause 

(ii) of section 45(d)(3)(A) is amended by striking ‘‘is originally placed in service’’ and inserting ‘‘the construction 

of which begins’’. 

(D) GEOTHERMAL FACILITIES.— (i) IN GENERAL.—Paragraph (4) of section 45(d) 

is amended by striking ‘‘and before January 1, 2014’’ 

and all that follows and inserting ‘‘and which— 

‘‘(A) in the case of a facility using solar energy, is 

placed in service before January 1, 2006, or 

‘‘(B) in the case of a facility using geothermal energy, 

the construction of which begins before January 1, 2014. 

Such term shall not include any property described in section 

48(a)(3) the basis of which is taken into account by the taxpayer 

for purposes of determining the energy credit under section 

48.’’. 

(E) INCREMENTAL HYDROPOWER PRODUCTION.—Paragraph (9) of section 45(d) is amended— 

(i) by redesignating subparagraphs (A) and (B), 

as amended by subparagraph (A), as clauses (i) and 

(ii), respectively, and by moving such clauses (as so 

redesignated) 2 ems to the right, 

(ii) by striking ‘‘In the case of a facility’’ and 

inserting the following: 

‘‘(A) IN GENERAL.—In the case of a facility’’, 

(iii) by redesignating subparagraph (C) as subparagraph (B), and 

(iv) by adding at the end the following new 

subparagraph: 

‘‘(C) SPECIAL RULE.—For purposes of subparagraph 

(A)(i), an efficiency improvement or addition to capacity 

shall be treated as placed in service before January 1, 

2014, if the construction of such improvement or addition 

begins before such date.’’. 

(b) EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES

AS ENERGY PROPERTY.—Subparagraph (C) of section 48(a)(5) is 

amended to read as follows: 

‘‘(C) QUALIFIED INVESTMENT CREDIT FACILITY.—For 

purposes of this paragraph, the term ‘qualified investment 

credit facility’ means any facility— 

‘‘(i) which is a qualified facility (within the 

meaning of section 45) described in paragraph (1), (2), 

(3), (4), (6), (7), (9), or (11) of section 45(d), 

‘‘(ii) which is placed in service after 2008 and the 

construction of which begins before January 1, 2014, 

and 

‘‘(iii) with respect to which— 

‘‘(I) no credit has been allowed under section 

45, and 

‘‘(II) the taxpayer makes an irrevocable election to have this paragraph apply.’’. 

(c) TECHNICAL CORRECTIONS.— 

(1) Subparagraph (D) of section 48(a)(5) is amended— 

(A) by striking ‘‘and’’ at the end of clause (i)(II), 

(B) by striking the period at the end of clause (ii) 

and inserting a comma, and 

(C) by adding at the end the following new clauses: 

26 USC 45. 


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126 STAT. 2342 PUBLIC LAW 112–240—JAN. 2, 2013 

‘‘(iii) which is constructed, reconstructed, erected, 

or acquired by the taxpayer, and 

‘‘(iv) the original use of which commences with 

the taxpayer.’’. 

(2) Paragraphs (1) and (2) of subsection (a) of section 1603 

of division B of the American Recovery and Reinvestment Act 

of 2009 are each amended by striking ‘‘placed in service’’ and 

inserting ‘‘originally placed in service by such person’’. 

(d) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraphs (2) 

and (3), the amendments made by this section shall take effect 

on the date of the enactment of this Act. 

(2) MODIFICATION TO DEFINITION OF MUNICIPAL SOLID

WASTE.—The amendments made by subsection (a)(2) shall apply 

to electricity produced and sold after the date of the enactment 

of this Act, in taxable years ending after such date. 

(3) TECHNICAL CORRECTIONS.—The amendments made by 

subsection (c) shall apply as if included in the enactment of 

the provisions of the American Recovery and Reinvestment 

Act of 2009 to which they relate. 

SEC. 408. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES. 

(a) IN GENERAL.—Subsection (g) of section 45L is amended 

by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

(b) ENERGY SAVINGS REQUIREMENTS.—Clause (i) of section 

45L(c)(1)(A) is amended by striking ‘‘2003 International Energy 

Conservation Code, as such Code (including supplements) is in 

effect on the date of the enactment of this section’’and inserting 

‘‘2006 International Energy Conservation Code, as such Code 

(including supplements) is in effect on January 1, 2006’’. 

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

shall apply to homes acquired after December 31, 2011. 

SEC. 409. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES. 

(a) IN GENERAL.—Section 45M(b) is amended by striking ‘‘2011’’ 

each place it appears other than in the provisions specified in 

subsection (b) and inserting ‘‘2011, 2012, or 2013’’. 

(b) PROVISIONS SPECIFIED.—The provisions of section 45M(b) 

specified in this subsection are subparagraph (C) of paragraph 

(1) and subparagraph (E) of paragraph (2). 

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

shall apply to appliances produced after December 31, 2011. 

SEC. 410. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE 

FOR CELLULOSIC BIOFUEL PLANT PROPERTY. 

(a) EXTENSION.— 

(1) IN GENERAL.—Subparagraph (D) of section 168(l)(2) is 

amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 

1, 2014’’. 

(2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to property placed in service after December 

31, 2012. 

(b) ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES

OF BONUS DEPRECIATION FOR BIOFUEL PLANT PROPERTY.— (1) IN GENERAL.—Subparagraph (A) of section 168(l)(2) is 

amended by striking ‘‘solely to produce cellulosic biofuel’’ and 

Applicability. 

26 USC 168 note. 

Applicability. 

26 USC 45M 

note. 

Applicability. 

26 USC 45L note. 

26 USC 45L. 

Applicability. 

26 USC 45 note. 

26 USC 48 note. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2343 

inserting ‘‘solely to produce second generation biofuel (as 

defined in section 40(b)(6)(E))’’. 

(2) CONFORMING AMENDMENTS.—Subsection (l) of section 

168, as amended by subsection (a), is amended— 

(A) by striking ‘‘cellulosic biofuel’’ each place it appears 

in the text thereof and inserting ‘‘second generation 

biofuel’’, 

(B) by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), 

respectively, 

(C) by striking ‘‘CELLULOSIC’’ in the heading of such 

subsection and inserting ‘‘SECOND GENERATION’’, and 

(D) by striking ‘‘CELLULOSIC’’ in the heading of paragraph (2) and inserting ‘‘SECOND GENERATION’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to property placed in service after the date 

of the enactment of this Act. 

SEC. 411. 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, 2012’’ and inserting ‘‘January 1, 2014’’. 

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

shall apply to dispositions after December 31, 2011. 

SEC. 412. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS. 

(a) IN GENERAL.—Sections 6426(d)(5) and 6426(e)(3) are each 

amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 

31, 2013’’. 

(b) OUTLAY PAYMENTS FOR ALTERNATIVE FUELS.—Paragraph 

(6) of section 6427(e) is amended— 

(1) in subparagraph (C)— 

(A) by striking ‘‘or alternative fuel mixture (as defined 

in subsection (d)(2) or (e)(3) of section 6426)’’ and inserting 

‘‘(as defined in section 6426(d)(2))’’, and 

(B) by striking ‘‘December 31, 2011, and’’ and inserting 

‘‘December 31, 2013,’’, 

(2) in subparagraph (D)— 

(A) by striking ‘‘or alternative fuel mixture’’, and 

(B) by striking the period at the end and inserting 

‘‘, and’’, and 

(3) by adding at the end the following new subparagraph: 

‘‘(E) any alternative fuel mixture (as defined in section 

6426(e)(2)) sold or used after December 31, 2011.’’. 

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

shall apply to fuel sold or used after December 31, 2011. 

TITLE V—UNEMPLOYMENT 

SEC. 501. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM. 

(a) EXTENSION.—Section 4007(a)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) 

is amended by striking ‘‘January 2, 2013’’ and inserting ‘‘January 

1, 2014’’. 

Applicability. 

26 USC 6426 

note. 

Applicability. 

26 USC 451 note. 

Applicability. 

26 USC 168 note. 

26 USC 168. 


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126 STAT. 2344 PUBLIC LAW 112–240—JAN. 2, 2013 

(b) FUNDING.—Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) 

is amended— 

(1) in subparagraph (H), by striking ‘‘and’’ at the end; 

and 

(2) by inserting after subparagraph (I) the following: 

‘‘(J) the amendments made by section 501(a) of the 

American Taxpayer Relief Act of 2012;’’. 

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

shall take effect as if included in the enactment of the Unemployment Benefits Extension Act of 2012 (Public Law 112–96) 

SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS. 

(a) IN GENERAL.—Section 2005 of the Assistance for 

Unemployed Workers and Struggling Families Act, as contained 

in Public Law 111–5 (26 U.S.C. 3304 note), is amended— 

(1) by striking ‘‘December 31, 2012’’ each place it appears 

and inserting ‘‘December 31, 2013’’; and 

(2) in subsection (c), by striking ‘‘June 30, 2013’’ and 

inserting ‘‘June 30, 2014’’. 

(b) EXTENSION OF MATCHING FOR STATES WITH NO WAITING

WEEK.—Section 5 of the Unemployment Compensation Extension 

Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended 

by striking ‘‘June 30, 2013’’ and inserting ‘‘June 30, 2014’’. 

(c) EXTENSION OF MODIFICATION OF INDICATORS UNDER THE

EXTENDED BENEFIT PROGRAM.—Section 203 of the Federal-State 

Extended Unemployment Compensation Act of 1970 (26 U.S.C. 

3304 note) is amended— 

(1) in subsection (d), by striking ‘‘December 31, 2012’’ and 

inserting ‘‘December 31, 2013’’; and 

(2) in subsection (f)(2), by striking ‘‘December 31, 2012’’ 

and inserting ‘‘December 31, 2013’’. 

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

shall take effect as if included in the enactment of the Unemployment Benefits Extension Act of 2012 (Public Law 112–96). 

SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES 

AND REEMPLOYMENT AND ELIGIBILITY ASSESSMENT 

ACTIVITIES. 

(a) IN GENERAL.—Section 4004(c)(2)(A) of the Supplemental 

Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 

note) is amended by striking ‘‘through fiscal year 2013’’ and 

inserting ‘‘through fiscal year 2014’’. 

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

shall take effect as if included in the enactment of the Unemployment Benefits Extension Act of 2012 (Public Law 112–96). 

SEC. 504. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER 

THE RAILROAD UNEMPLOYMENT INSURANCE ACT. 

(a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Railroad 

Unemployment Insurance Act, as added by section 2006 of the 

American Recovery and Reinvestment Act of 2009 (Public Law 

111–5) and as amended by section 9 of the Worker, Homeownership, 

and Business Assistance Act of 2009 (Public Law 111–92), section 

505 of the Tax Relief, Unemployment Insurance Reauthorization, 

and Job Creation Act of 2010 (Public Law 111–312), section 202 

of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public 

26 USC 3304 

note. 

26 USC 3304 

note. 

26 USC 3304 

note. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2345 

Law 112–78), and section 2124 of the Unemployment Benefits 

Extension Act of 2012 (Public Law 112–96), is amended— 

(1) by striking ‘‘June 30, 2012’’ and inserting ‘‘June 30, 

2013’’; and 

(2) by striking ‘‘December 31, 2012’’ and inserting 

‘‘December 31, 2013’’. 

(b) CLARIFICATION ON AUTHORITY TO USE FUNDS.—Funds 

appropriated under either the first or second sentence of clause 

(iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance 

Act shall be available to cover the cost of additional extended 

unemployment benefits provided under such section 2(c)(2)(D) by 

reason of the amendments made by subsection (a) as well as to 

cover the cost of such benefits provided under such section 

2(c)(2)(D), as in effect on the day before the date of enactment 

of this Act. 

(c) FUNDING FOR ADMINISTRATION.—Out of any funds in the 

Treasury not otherwise appropriated, there are appropriated to 

the Railroad Retirement Board $250,000 for administrative 

expenses associated with the payment of additional extended 

unemployment benefits provided under section 2(c)(2)(D) of the 

Railroad Unemployment Insurance Act by reason of the amendments made by subsection (a), to remain available until expended. 

TITLE VI—MEDICARE AND OTHER 

HEALTH EXTENSIONS 

Subtitle A—Medicare Extensions 

SEC. 601. MEDICARE PHYSICIAN PAYMENT UPDATE. 

(a) IN GENERAL.—Section 1848(d) of the Social Security Act 

(42 U.S.C. 1395w–4(d)) is amended by adding at the end the following new paragraph: 

‘‘(14) UPDATE FOR 2013.— 

‘‘(A) IN GENERAL.—Subject to paragraphs (7)(B), (8)(B), 

(9)(B), (10)(B), (11)(B), (12)(B), and (13)(B), in lieu of the 

update to the single conversion factor established in paragraph (1)(C) that would otherwise apply for 2013, the 

update to the single conversion factor for such year shall 

be zero percent. 

‘‘(B) NO EFFECT ON COMPUTATION OF CONVERSION

FACTOR FOR 2014 AND SUBSEQUENT YEARS.—The conversion 

factor under this subsection shall be computed under paragraph (1)(A) for 2014 and subsequent years as if subparagraph (A) had never applied.’’. 

(b) ADVANCEMENT OF CLINICAL DATA REGISTRIES TO IMPROVE

THE QUALITY OF HEALTH CARE.— 

(1) IN GENERAL.—Section 1848(m)(3) of the Social Security 

Act (42 U.S.C. 1395w–4(m)(3)) is amended— 

(A) by redesignating subparagraph (D) as subparagraph (F); and 

(B) by inserting after subparagraph (C) the following 

new subparagraphs: 

‘‘(D) SATISFACTORY REPORTING MEASURES THROUGH

PARTICIPATION IN A QUALIFIED CLINICAL DATA REGISTRY.— 

For 2014 and subsequent years, the Secretary shall treat 

45 USC 352 note. 

45 USC 352. 


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an eligible professional as satisfactorily submitting data 

on quality measures under subparagraph (A) if, in lieu 

of reporting measures under subsection (k)(2)(C), the 

eligible professional is satisfactorily participating, as determined by the Secretary, in a qualified clinical data registry 

(as described in subparagraph (E)) for the year. 

‘‘(E) QUALIFIED CLINICAL DATA REGISTRY.— 

‘‘(i) IN GENERAL.—The Secretary shall establish 

requirements for an entity to be considered a qualified 

clinical data registry. Such requirements shall include 

a requirement that the entity provide the Secretary 

with such information, at such times, and in such 

manner, as the Secretary determines necessary to carry 

out this subsection. 

‘‘(ii) CONSIDERATIONS.—In establishing the requirements under clause (i), the Secretary shall consider 

whether an entity— 

‘‘(I) has in place mechanisms for the transparency of data elements and specifications, risk 

models, and measures; 

‘‘(II) requires the submission of data from 

participants with respect to multiple payers; 

‘‘(III) provides timely performance reports to 

participants at the individual participant level; and 

‘‘(IV) supports quality improvement initiatives 

for participants. 

‘‘(iii) MEASURES.—With respect to measures used 

by a qualified clinical data registry— 

‘‘(I) sections 1890(b)(7) and 1890A(a) shall not 

apply; and 

‘‘(II) measures endorsed by the entity with 

a contract with the Secretary under section 1890(a) 

may be used. 

‘‘(iv) CONSULTATION.—In carrying out this subparagraph, the Secretary shall consult with interested parties. 

‘‘(v) DETERMINATION.—The Secretary shall establish a process to determine whether or not an entity 

meets the requirements established under clause (i). 

Such process may involve one or both of the following: 

‘‘(I) A determination by the Secretary. 

‘‘(II) A designation by the Secretary of one 

or more independent organizations to make such 

determination.’’. 

(2) GAO STUDY AND REPORT ON INCORPORATING REGISTRY

DATA INTO THE MEDICARE PROGRAM IN ORDER TO IMPROVE

QUALITY AND EFFICIENCY.— 

(A) STUDY.—The Comptroller General of the United 

States shall conduct a study on the potential of clinical 

data registries to improve the quality and efficiency of 

care in the Medicare program, including through payment 

system incentives. Such study shall include an analysis 

of the role of health information technology in facilitating 

clinical data registries and the use of data from such registries among private health insurers as well as other entities the Comptroller General determines appropriate. 

Process. 


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(B) REPORT.—Not later than November 15, 2013, the 

Comptroller General of the United States shall submit 

to Congress a report on the study conducted under subparagraph (A), together with recommendations for such legislation and administrative action as the Comptroller General 

determines appropriate. 

SEC. 602. WORK GEOGRAPHIC ADJUSTMENT. 

Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 

1395w–4(e)(1)(E)) is amended by striking ‘‘before January 1, 2013’’ 

and inserting ‘‘before January 1, 2014’’. 

SEC. 603. PAYMENT FOR OUTPATIENT THERAPY SERVICES. 

(a) EXTENSION.—Section 1833(g) of the Social Security Act (42 

U.S.C. 1395l(g)) is amended— 

(1) in paragraph (5)(A), in the first sentence, by striking 

‘‘December 31, 2012’’ and inserting ‘‘December 31, 2013’’; and 

(2) in paragraph (6)— 

(A) by striking ‘‘December 31, 2012’’ and inserting 

‘‘December 31, 2013’’; and 

(B) by inserting ‘‘or 2013’’ after ‘‘during 2012’’. 

(b) APPLICATION OF THERAPY CAP TO THERAPY FURNISHED AS

PART OF OUTPATIENT CRITICAL ACCESS HOSPITAL SERVICES.—Section 1833(g)(6) of the Social Security Act (42 U.S.C. 1395l(g)(6)), 

as amended by subsection (a), is amended— 

(1) by striking ‘‘In applying’’ and inserting ‘‘(A) In applying’’; 

and 

(2) by adding at the end the following new subparagraph: 

‘‘(B)(i) With respect to outpatient therapy services furnished 

beginning on or after January 1, 2013, and before January 1, 

2014, for which payment is made under section 1834(g), the Secretary shall count toward the uniform dollar limitations described 

in paragraphs (1) and (3) and the threshold described in paragraph 

(5)(C) the amount that would be payable under this part if such 

services were paid under section 1834(k)(1)(B) instead of being 

paid under section 1834(g). 

‘‘(ii) Nothing in clause (i) shall be construed as changing the 

method of payment for outpatient therapy services under section 

1834(g).’’. 

(c) BENEFICIARY PROTECTIONS.—Section 1833(g)(5) of the Social 

Security Act (42 U.S.C. 1395l(g)(5)) is amended by adding at the 

end the following new subparagraph: 

‘‘(D) With respect to services furnished on or after January 

1, 2013, where payment may not be made as a result of application 

of paragraphs (1) and (3), section 1879 shall apply in the same 

manner as such section applies to a denial that is made by reason 

of section 1862(a)(1).’’. 

(d) IMPLEMENTATION.—Notwithstanding any other provision of 

law, the Secretary of Health and Human Services may implement 

the provisions of, and the amendments made by, this section by 

program instruction or otherwise. 

SEC. 604. AMBULANCE ADD-ON PAYMENTS. 

(a) GROUND AMBULANCE.—Section 1834(l)(13)(A) of the Social 

Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended— 

(1) in the matter preceding clause (i), by striking ‘‘January 

1, 2013’’ and inserting ‘‘January 1, 2014’’; and 

42 USC 1395l 

note. 

Applicability. 

Time period. 

Recommendations. 


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(2) in each of clauses (i) and (ii), by striking ‘‘January 

1, 2013’’ and inserting ‘‘January 1, 2014’’ each place it appears. 

(b) AIR AMBULANCE.—Section 146(b)(1) of the Medicare 

Improvements for Patients and Providers Act of 2008 (Public Law 

110–275), as amended by sections 3105(b) and 10311(b) of the 

Patient Protection and Affordable Care Act (Public Law 111–148), 

section 106(b) of the Medicare and Medicaid Extenders Act of 2010 

(Public Law 111–309), section 306(b) of the Temporary Payroll 

Tax Cut Continuation Act of 2011 (Public Law 112–78), and section 

3007(b) of the Middle Class Tax Relief and Job Creation Act of 

2012 (Public Law 112–96), is amended by striking ‘‘December 31, 

2012’’ and inserting ‘‘June 30, 2013’’. 

(c) SUPER RURAL AMBULANCE.—Section 1834(l)(12)(A) of the 

Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended in the 

first sentence by striking ‘‘January 1, 2013’’ and inserting ‘‘January 

1, 2014’’. 

(d) STUDIES OF AMBULANCE COSTS.— 

(1) IN GENERAL.—The Secretary of Health and Health and 

Human Services (in this subsection referred to as the ‘‘Secretary’’) shall conduct a study of each of the following: 

(A) A study that analyzes data on existing cost reports 

for ambulance services furnished by hospitals and critical 

access hospitals, including variation by characteristics of 

such providers of services. 

(B) A study of the feasibility of obtaining cost data 

on a periodic basis from all ambulance providers of services 

and suppliers for potential use in examining the appropriateness of the Medicare add-on payments for ground 

ambulance services furnished under the fee schedule under 

section 1834(l) of the Social Security Act (42 U.S.C. 

1395m(l)) and in preparing for future reform of such payment system. 

(2) COMPONENTS OF ONE OF THE STUDIES.—In conducting 

the study under paragraph (1)(B), the Secretary shall— 

(A) consult with industry on the design of such cost 

collection efforts; 

(B) explore use of cost surveys and cost reports to 

collect appropriate cost data and the periodicity of such 

cost data collection; 

(C) examine the feasibility of development of a 

standard cost reporting tool for providers of services and 

suppliers of ground ambulance services; and 

(D) examine the ability to furnish such cost data by 

various types of ambulance providers of services and suppliers, especially by rural and super-rural providers of services and suppliers. 

(3) REPORTS.— 

(A) EXISTING COST REPORTS.—Not later than October 

1, 2013, the Secretary shall submit a report to Congress 

on the study conducted under paragraph (1)(A), together 

with recommendations for such legislation and administrative action as the Secretary determines appropriate. 

(B) OBTAINING COST DATA.—Not later than July 1, 

2014, the Secretary shall submit a report to Congress on 

the study conducted under paragraph (1)(B), together with 

recommendations for such legislation and administrative 

action as the Secretary determines appropriate. 

Recommendations. 

Consultation. 

42 USC 1395m 

note. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2349 

SEC. 605. EXTENSION OF MEDICARE INPATIENT HOSPITAL PAYMENT 

ADJUSTMENT FOR LOW-VOLUME HOSPITALS. 

Section 1886(d)(12) of the Social Security Act (42 U.S.C. 

1395ww(d)(12)) is amended— 

(1) in subparagraph (B), in the matter preceding clause 

(i), by striking ‘‘2013’’ and inserting ‘‘2014’’; 

(2) in subparagraph (C)(i), by striking ‘‘and 2012’’ each 

place it appears and inserting ‘‘, 2012, and 2013’’; and 

(3) in subparagraph (D), by striking ‘‘and 2012’’ and 

inserting ‘‘, 2012, and 2013’’. 

SEC. 606. EXTENSION OF THE MEDICARE-DEPENDENT HOSPITAL (MDH) 

PROGRAM. 

(a) EXTENSION OF PAYMENT METHODOLOGY.—Section 

1886(d)(5)(G) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(G)) 

is amended— 

(1) in clause (i), by striking ‘‘October 1, 2012’’ and inserting 

‘‘October 1, 2013’’; and 

(2) in clause (ii)(II), by striking ‘‘October 1, 2012’’ and 

inserting ‘‘October 1, 2013’’. 

(b) CONFORMING AMENDMENTS.— 

(1) EXTENSION OF TARGET AMOUNT.—Section 1886(b)(3)(D) 

of the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is 

amended— 

(A) in the matter preceding clause (i), by striking 

‘‘October 1, 2012’’ and inserting ‘‘October 1, 2013’’; and 

(B) in clause (iv), by striking ‘‘through fiscal year 2012’’ 

and inserting ‘‘through fiscal year 2013’’. 

(2) PERMITTING HOSPITALS TO DECLINE RECLASSIFICATION.— Section 13501(e)(2) of the Omnibus Budget Reconciliation Act 

of 1993 (42 U.S.C. 1395ww note) is amended by striking 

‘‘through fiscal year 2012’’ and inserting ‘‘through fiscal year 

2013’’. 

SEC. 607. EXTENSION FOR SPECIALIZED MEDICARE ADVANTAGE 

PLANS FOR SPECIAL NEEDS INDIVIDUALS. 

Section 1859(f)(1) of the Social Security Act (42 U.S.C. 1395w– 

28(f)(1)) is amended by striking ‘‘2014’’ and inserting ‘‘2015’’. 

SEC. 608. EXTENSION OF MEDICARE REASONABLE COST CONTRACTS. 

Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C. 

1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause 

(I), by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 

SEC. 609. PERFORMANCE IMPROVEMENT. 

(a) EXTENSION OF FUNDING FOR CONTRACT WITH CONSENSUSBASED ENTITY REGARDING PERFORMANCE MEASUREMENT.— 

(1) IN GENERAL.—Section 1890(d) of the Social Security 

Act (42 U.S.C. 1395aaa(d)) is amended by striking ‘‘fiscal years 

2009 through 2012’’ and inserting ‘‘fiscal years 2009 through 

2013’’. 

(2) REVISION TO DUTIES.—Section 1890(b) of the Social 

Security Act (42 U.S.C. 1395aaa(b)) is amended by striking 

paragraph (4). 

(b) PROVIDING DATA FOR PERFORMANCE IMPROVEMENT IN A

TIMELY MANNER.— 

(1) IN GENERAL.—The Secretary of Health and Human 

Services (in this subsection referred to as the ‘‘Secretary’’) shall 

Strategy. 


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develop a strategy to provide data for performance improvement 

in a timely manner to applicable providers under the Medicare 

program under title XVIII of the Social Security Act (42 U.S.C. 

1395 et seq.), including with respect to the provision of the 

following: 

(A) Utilization data, including such data for items and 

services under parts A, B, and D of the Medicare program. 

(B) Feedback on quality data submitted by the 

applicable provider under the Medicare program. 

(2) CONSIDERATIONS.—In developing the strategy under 

paragraph (1), the Secretary shall consider— 

(A) the type of applicable provider receiving the data; 

(B) the frequency of providing the data so that it can 

be the most relevant in improving provider performance; 

(C) risk adjustment methods; 

(D) presentation of the data in a meaningful manner 

and easily understandable format; 

(E) with respect to utilization data, the provision of 

data that the Secretary determines would be useful to 

improve the performance of the type of applicable provider 

involved; and 

(F) administrative costs involved with providing data. 

(3) SUBMISSION AND AVAILABILITY OF INITIAL STRATEGY.— 

Not later than 1 year after the date of the enactment of this 

Act, the Secretary shall— 

(A) submit to the relevant committees of Congress 

the strategy described in paragraph (1); and 

(B) post such strategy on the website of the Centers 

for Medicare & Medicaid Services. 

(4) STRATEGY UPDATE.— 

(A) FEEDBACK FROM STAKEHOLDERS.—The Secretary 

shall seek feedback from stakeholders on the initial 

strategy submitted under paragraph (3). 

(B) STRATEGY UPDATE.—The Secretary shall— 

(i) update the strategy described in paragraph (1) 

based on the feedback submitted under subparagraph 

(A); and 

(ii) not later than 18 months after the date of 

the enactment of this Act— 

(I) submit such updated strategy to the relevant committees of Congress; and 

(II) post such updated strategy on the website 

of the Centers for Medicare & Medicaid Services. 

(5) GAO STUDY AND REPORT ON PRIVATE SECTOR INFORMATION SHARING ACTIVITIES.— 

(A) STUDY.—The Comptroller General of the United 

States (in this paragraph referred to as the ‘‘Comptroller 

General’’) shall conduct a study on information sharing 

activities. Such study shall include an analysis of— 

(i) how private sector entities share timely data 

with hospitals, physicians, and other providers and 

what lessons can be learned from those activities; 

(ii) how the Medicare program currently shares 

data with providers, including what data is provided 

and to which providers, and what divisions within 

the Centers for Medicare & Medicaid Services oversee 

those efforts; 

Deadline. 

Web posting. 

Deadline. 

Web posting. 


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(iii) what, if any, differences there are between 

the private sector and the Medicare program under 

title XVIII of the Social Security Act (42 U.S.C. 1395 

et seq.) in terms of sharing data; and 

(iv) what, if any, barriers there are for the Centers 

for Medicare & Medicaid Services to sharing timely 

data with applicable providers and recommendations 

to eliminate or reduce such barriers. 

(B) REPORT.—Not later than 8 months after the date 

of the enactment of this Act, the Comptroller General shall 

submit to the relevant committees of Congress a report 

containing the results of the study conducted under 

subparagraph (A), together with recommendations for such 

legislation and administrative action as the Comptroller 

General determines appropriate. 

(6) DEFINITIONS.—In this subsection: 

(A) APPLICABLE PROVIDER.—The term ‘‘applicable provider’’ means the following: 

(i) A critical access hospital (as defined in section 

1861(mm)(1) of the Social Security Act (42 U.S.C. 

1395xx(mm)(1))). 

(ii) A hospital (as defined in section 1861(e) of 

such Act (42 U.S.C. 1395x(e))). 

(iii) A physician (as defined in section 1861(r) of 

such Act (42 U.S.C. 1395x(r))). 

(iv) Any other provider the Secretary determines 

should receive the information described in subsection 

(a). 

(B) PERFORMANCE IMPROVEMENT.—The term ‘‘performance improvement’’ means improvements in quality, 

reducing per capita costs, and other criteria the Secretary 

determines appropriate. 

SEC. 610. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR 

LOW-INCOME PROGRAMS. 

(a) ADDITIONAL FUNDING FOR STATE HEALTH INSURANCE PROGRAMS.—Subsection (a)(1)(B) of section 119 of the Medicare 

Improvements for Patients and Providers Act of 2008 (42 U.S.C. 

1395b–3 note), as amended by section 3306 of the Patient Protection 

and Affordable Care Act Public Law 111–148), is amended— 

(1) in clause (i), by striking ‘‘and’’ at the end; 

(2) in clause (ii), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by inserting after clause (ii) the following new clause: 

‘‘(iii) for fiscal year 2013, of $7,500,000.’’. 

(b) ADDITIONAL FUNDING FOR AREA AGENCIES ON AGING.— 

Subsection (b)(1)(B) of such section 119, as so amended, is 

amended— 

(1) in clause (i), by striking ‘‘and’’ at the end; 

(2) in clause (ii), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by inserting after clause (ii) the following new clause: 

‘‘(iii) for fiscal year 2013, of $7,500,000.’’. 

(c) ADDITIONAL FUNDING FOR AGING AND DISABILITY RESOURCE

CENTERS.—Subsection (c)(1)(B) of such section 119, as so amended, 

is amended— 

(1) in clause (i), by striking ‘‘and’’ at the end; 


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(2) in clause (ii), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by inserting after clause (ii) the following new clause: ‘‘(iii) for fiscal year 2013, of $5,000,000.’’. 

(d) ADDITIONAL FUNDING FOR CONTRACT WITH THE NATIONAL

CENTER FOR BENEFITS AND OUTREACH ENROLLMENT.—Subsection 

(d)(2) of such section 119, as so amended, is amended— 

(1) in clause (i), by striking ‘‘and’’ at the end; 

(2) in clause (ii), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by inserting after clause (ii) the following new clause: ‘‘(iii) for fiscal year 2013, of $5,000,000.’’. 

Subtitle B—Other Health Extensions 

SEC. 621. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM. 

(a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the Social Security 

Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2013’’. 

(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR ALLOCATION.— Section 1933(g) of such Act (42 U.S.C. 1396u–3(g)) is amended— 

(1) in paragraph (2)— 

(A) in subparagraph (Q), by striking ‘‘and’’ after the 

semicolon; 

(B) in subparagraph (R), by striking the period at 

the end and inserting a semicolon; and 

(C) by adding at the end the following new subparagraphs: 

‘‘(S) for the period that begins on January 1, 2013, 

and ends on September 30, 2013, the total allocation 

amount is $485,000,000; and 

‘‘(T) for the period that begins on October 1, 2013, 

and ends on December 31, 2013, the total allocation amount 

is $300,000,000.’’; and 

(2) in paragraph (3), in the matter preceding subparagraph 

(A), by striking ‘‘or (R)’’ and inserting ‘‘(R), or (T)’’. 

SEC. 622. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA). 

Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act 

(42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are each amended by striking 

‘‘2012’’ and inserting ‘‘2013’’. 

SEC. 623. EXTENSION OF MEDICAID AND CHIP EXPRESS LANE OPTION. 

Section 1902(e)(13)(I) of the Social Security Act (42 U.S.C. 

1396a(e)(13)(I)) is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 

SEC. 624. EXTENSION OF FAMILY-TO-FAMILY HEALTH INFORMATION 

CENTERS. 

Section 501(c)(1)(A)(iii) of the Social Security Act (42 U.S.C. 

701(c)(1)(A)(iii)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

SEC. 625. EXTENSION OF SPECIAL DIABETES PROGRAM FOR TYPE I 

DIABETES AND FOR INDIANS. 

(a) SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES.—Section 330B(b)(2)(C) of the Public Health Service Act (42 U.S.C. 254c– 

2(b)(2)(C)) is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 

Time periods. 


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(b) SPECIAL DIABETES PROGRAMS FOR INDIANS.—Section 

330C(c)(2)(C) of the Public Health Service Act (42 U.S.C. 254c– 

3(c)(2)(C)) is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 

Subtitle C—Other Health Provisions 

SEC. 631. IPPS DOCUMENTATION AND CODING ADJUSTMENT FOR 

IMPLEMENTATION OF MS-DRGS. 

(a) RULE OF CONSTRUCTION AND CLARIFICATION.— (1) RULE OF CONSTRUCTION.—Nothing in the amendments 

made by subsection (b) shall be construed as changing the 

existing authority under section 1886(d) of the Social Security 

Act (42 U.S.C. 1395ww(d)) to make prospective documentation 

and coding adjustments to the standardized amounts under 

such section 1886(d) to correct for changes in the coding or 

classification of discharges that do not reflect real changes 

in case mix. 

(2) CLARIFICATION.—Effective on the date of the enactment 

of this section, except as provided in section 7(b)(1)(B)(ii) of 

the TMA, Abstinence Education, and QI Programs Extension 

Act of 2007, as added by subsection (b)(2)(A)(ii)(IV) of this 

section, the Secretary of Health and Human Services shall 

not have authority to fully recoup past overpayments related 

to documentation and coding changes from fiscal years 2008 

and 2009. 

(b) ADJUSTMENT.—Section 7 of the TMA, Abstinence Education, 

and QI Programs Extension Act of 2007 (Public Law 110–90; 121 

Stat. 986) is amended— 

(1) in the heading, by striking ‘‘LIMITATION’’ and all that 

follows through ‘‘ADJUSTMENT’’ and inserting ‘‘DOCUMENTATION

AND CODING ADJUSTMENTS’’; and 

(2) in subsection (b)— 

(A) in paragraph (1)— 

(i) in the matter before subparagraph (A)— 

(I) by striking ‘‘or 2009’’ and inserting ‘‘, 2009, 

or 2010’’; and 

(II) by inserting ‘‘or otherwise applied for such 

year’’ after ‘‘applied under subsection (a)’’; and 

(ii) in subparagraph (B)— 

(I) by inserting ‘‘(i)’’ after ‘‘(B)’’; 

(II) by striking ‘‘or decrease’’; 

(III) by striking the period at the end and 

inserting ‘‘; and’’; and 

(IV) by adding at the end the following: 

‘‘(ii) make an additional adjustment to the standardized 

amounts under such section 1886(d) based upon the Secretary’s estimates for discharges occurring only during 

fiscal years 2014, 2015, 2016, and 2017 to fully offset 

$11,000,000,000 (which represents the amount of the 

increase in aggregate payments from fiscal years 2008 

through 2013 for which an adjustment was not previously 

applied).’’; and 

(B) in paragraph (3)— 

(i) in subparagraph (A), by inserting before the 

semicolon the following: ‘‘or affecting the Secretary’s 

authority under such paragraph to apply a prospective 


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126 STAT. 2354 PUBLIC LAW 112–240—JAN. 2, 2013 

adjustment to offset aggregate additional payments 

related to documentation and coding improvements 

made with respect to discharges during fiscal year 

2010’’; and 

(ii) in subparagraph (B), by striking ‘‘and 2012’’ 

and inserting ‘‘2012, 2014, 2015, 2016, and 2017’’. 

SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT 

SYSTEM TO REFLECT FINDINGS IN THE GAO REPORT. 

(a) ADJUSTMENT TO ESRD BUNDLED PAYMENT RATE TO

ACCOUNT FOR CHANGES IN THE UTILIZATION OF CERTAIN DRUGS

AND BIOLOGICALS.—Section 1881(b)(14) of the Social Security Act 

(42 U.S.C. 1395rr(b)(14)) is amended by adding at the end the 

following new subparagraph: 

‘‘(I) For services furnished on or after January 1, 2014, the 

Secretary shall, by comparing per patient utilization data from 

2007 with such data from 2012, make reductions to the single 

payment that would otherwise apply under this paragraph for renal 

dialysis services to reflect the Secretary’s estimate of the change 

in the utilization of drugs and biologicals described in clauses 

(ii), (iii), and (iv) of subparagraph (B) (other than oral-only ESRDrelated drugs, as such term is used in the final rule promulgated 

by the Secretary in the Federal Register on August 12, 2010 (75 

Fed. Reg. 49030)). In making reductions under the preceding sentence, the Secretary shall take into account the most recently available data on average sales prices and changes in prices for drugs 

and biological reflected in the ESRD market basket percentage 

increase factor under subparagraph (F).’’. 

(b) TWO-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY ESRDRELATED DRUGS IN THE ESRD PROSPECTIVE PAYMENT SYSTEM; 

MONITORING.— 

(1) DELAY.—The Secretary of Health and Human Services 

may not implement the policy under section 413.174(f)(6) of 

title 42, Code of Federal Regulations (relating to oral-only 

ESRD-related drugs in the ESRD prospective payment system), 

prior to January 1, 2016. 

(2) MONITORING.—With respect to the implementation of 

oral-only ESRD-related drugs in the ESRD prospective payment 

system under subsection (b)(14) of section 1881 of the Social 

Security Act (42 U.S.C. 1395rr(b)(14)), the Secretary of Health 

and Human Services shall monitor the bone and mineral 

metabolism of individuals with end stage renal disease. 

(c) ANALYSIS OF CASE MIX PAYMENT ADJUSTMENTS.—By not 

later than January 1, 2016, the Secretary of Health and Human 

Services shall— 

(1) conduct an analysis of the case mix payment adjustments being used under section 1881(b)(14)(D)(i) of the Social 

Security Act (42 U.S.C. 1395rr(b)(14)(D)(i)); and 

(2) make appropriate revisions to such case mix payment 

adjustments. 

(d) UPDATED GAO REPORT.—Not later than December 31, 2015, 

the Comptroller General of the United States shall submit to Congress a report that updates the report submitted to Congress under 

section 10336 of the Patient Protection and Affordable Care Act 

(Public Law 111–148; 124 Stat. 974). The updated report shall 

include an analysis of how the Secretary of Health and Human 

Services has addressed points raised in the report submitted under 

Analysis. 

42 USC 1395rr 

note. 

42 USC 1395rr 

note. 

Reductions. 


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such section 10336 with respect to the Secretary’s preparations 

to implement payment for oral-only ESRD-related drugs in the 

bundled prospective payment system under section 1881(b)(14) of 

the Social Security Act (42 U.S.C. 1395rr(b)(14)). 

SEC. 633. TREATMENT OF MULTIPLE SERVICE PAYMENT POLICIES FOR 

THERAPY SERVICES. 

(a) SERVICES FURNISHED BY PHYSICIANS AND CERTAIN OTHER

PROVIDERS.—Section 1848(b)(7) of the Social Security Act (42 U.S.C. 

1395w–4(b)(7)) is amended— 

(1) by striking ‘‘2011,’’ and inserting ‘‘2011, and before 

April 1, 2013,’’; and 

(2) by adding at the end the following new sentence: ‘‘In 

the case of such services furnished on or after April 1, 2013, 

and for which payment is made under such fee schedules, 

instead of the 25 percent multiple procedure payment reduction 

specified in such final rule, the reduction percentage shall 

be 50 percent.’’. 

(b) SERVICES FURNISHED BY OTHER PROVIDERS.—Section 

1834(k) of the Social Security Act (42 U.S.C. 1395m(k)) is amended 

by adding at the end the following new paragraph: 

‘‘(7) ADJUSTMENT IN DISCOUNT FOR CERTAIN MULTIPLE

THERAPY SERVICES.—In the case of therapy services furnished 

on or after April 1, 2013, and for which payment is made 

under this subsection pursuant to the applicable fee schedule 

amount (as defined in paragraph (3)), instead of the 25 percent 

multiple procedure payment reduction specified in the final 

rule published by the Secretary in the Federal Register on 

November 29, 2010, the reduction percentage shall be 50 percent.’’. 

SEC. 634. PAYMENT FOR CERTAIN RADIOLOGY SERVICES FURNISHED 

UNDER THE MEDICARE HOSPITAL OUTPATIENT DEPARTMENT PROSPECTIVE PAYMENT SYSTEM. 

Section 1833(t)(16) of the Social Security Act (42 U.S.C. 

1395l(t)(16)) is amended by adding at the end the following new 

subparagraph: 

‘‘(D) SPECIAL PAYMENT RULE.— ‘‘(i) IN GENERAL.—In the case of covered OPD services furnished on or after April 1, 2013, in a hospital 

described in clause (ii), if— 

‘‘(I) the payment rate that would otherwise 

apply under this subsection for stereotactic 

radiosurgery, complete course of treatment of cranial lesion(s) consisting of 1 session that is multisource Cobalt 60 based (identified as of January 

1, 2013, by HCPCS code 77371 (and any succeeding 

code) and reimbursed as of such date under APC 

0127 (and any succeeding classification group)); 

exceeds 

‘‘(II) the payment rate that would otherwise 

apply under this subsection for linear accelerator 

based stereotactic radiosurgery, complete course 

of therapy in one session (identified as of January 

1, 2013, by HCPCS code G0173 (and any succeeding code) and reimbursed as of such date under 

APC 0067 (and any succeeding classification 

group)), 


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the payment rate for the service described in subclause 

(I) shall be reduced to an amount equal to the payment 

rate for the service described in subclause (II). 

‘‘(ii) HOSPITAL DESCRIBED.—A hospital described 

in this clause is a hospital that is not— 

‘‘(I) located in a rural area (as defined in section 1886(d)(2)(D)); 

‘‘(II) classified as a rural referral center under 

section 1886(d)(5)(C); or 

‘‘(III) a sole community hospital (as defined 

in section 1886(d)(5)(D)(iii)). 

‘‘(iii) NOT BUDGET NEUTRAL.—In making any 

budget neutrality adjustments under this subsection 

for 2013 (with respect to covered OPD services furnished on or after April 1, 2013, and before January 

1, 2014) or a subsequent year, the Secretary shall 

not take into account the reduced expenditures that 

result from the application of this subparagraph.’’. 

SEC. 635. ADJUSTMENT OF EQUIPMENT UTILIZATION RATE FOR 

ADVANCED IMAGING SERVICES. 

Section 1848 of the Social Security Act (42 U.S.C. 1395w– 

4) is amended— 

(1) in subsection (b)(4)(C)— 

(A) by striking ‘‘and subsequent years’’ and inserting 

‘‘, 2012, and 2013’’; and 

(B) by adding at the end the following new sentence: 

‘‘With respect to fee schedules established for 2014 and 

subsequent years, in such methodology, the Secretary shall 

use a 90 percent utilization rate.’’; and 

(2) in subsection (c)(2)(B)(v)(III), by striking ‘‘change in 

the utilization rate applicable to 2011, as described in’’ and 

inserting ‘‘changes in the utilization rate applicable to 2011 

and 2014, as described in the first and second sentence, respectively, of’’. 

SEC. 636. MEDICARE PAYMENT OF COMPETITIVE PRICES FOR 

DIABETIC SUPPLIES AND ELIMINATION OF OVERPAYMENT 

FOR DIABETIC SUPPLIES. 

(a) APPLICATION OF COMPETITIVE BIDDING PRICES FOR DIABETIC

SUPPLIES.—Section 1834(a)(1) of the Social Security Act (42 U.S.C. 

1395m(a)(1)) is amended— 

(1) in subparagraph (F), in the matter preceding clause 

(i), by striking ‘‘subparagraph (G)’’ and inserting ‘‘subparagraphs (G) and (H)’’; and 

(2) by adding at the end the following new subparagraph: 

‘‘(H) DIABETIC SUPPLIES.— ‘‘(i) IN GENERAL.—On or after the date described 

in clause (ii), the payment amount under this part 

for diabetic supplies, including testing strips, that are 

non-mail order items (as defined by the Secretary) 

shall be equal to the single payment amounts established under the national mail order competition for 

diabetic supplies under section 1847. 

‘‘(ii) DATE DESCRIBED.—The date described in this 

clause is the date of the implementation of the single 

payment amounts under the national mail order competition for diabetic supplies under section 1847.’’. 

Time period. 


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(b) OVERPAYMENT ELIMINATION FOR DIABETIC SUPPLIES.—Section 1834(a) of the Social Security Act (42 U.S.C. 1395m(a)) is 

amended by adding at the end the following new paragraph: 

‘‘(22) SPECIAL PAYMENT RULE FOR DIABETIC SUPPLIES.—Notwithstanding the preceding provisions of this subsection, for 

purposes of determining the payment amount under this subsection for diabetic supplies furnished on or after the first 

day of the calendar quarter during 2013 that is at least 30 

days after the date of the enactment of this paragraph and 

before the date described in paragraph (1)(H)(ii), the Secretary 

shall recalculate and apply the covered item update under 

paragraph (14) as if subparagraph (J)(i) of such paragraph 

was amended by striking ‘but only if furnished through mail 

order’.’’. 

SEC. 637. MEDICARE PAYMENT ADJUSTMENT FOR NON-EMERGENCY 

AMBULANCE TRANSPORTS FOR ESRD BENEFICIARIES. 

Section 1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) 

is amended by adding at the end the following new paragraph: 

‘‘(15) PAYMENT ADJUSTMENT FOR NON-EMERGENCY AMBULANCE TRANSPORTS FOR ESRD BENEFICIARIES.—The fee schedule 

amount otherwise applicable under the preceding provisions 

of this subsection shall be reduced by 10 percent for ambulance 

services furnished on or after October 1, 2013, consisting of 

non-emergency basic life support services involving transport 

of an individual with end-stage renal disease for renal dialysis 

services (as described in section 1881(b)(14)(B)) furnished other 

than on an emergency basis by a provider of services or a 

renal dialysis facility.’’. 

SEC. 638. REMOVING OBSTACLES TO COLLECTION OF OVERPAYMENTS. 

(a) IN GENERAL.—The last sentence of subsections (b) and (c) 

of section 1870 of the Social Security Act (42 U.S.C. 1395gg) are 

each amended— 

(1) by striking ‘‘third year’’ and inserting ‘‘fifth year’’; and 

(2) by striking ‘‘three-year’’ and inserting ‘‘five-year’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall take effect on the date of the enactment of this Act. 

SEC. 639. MEDICARE ADVANTAGE CODING INTENSITY ADJUSTMENT. 

Section 1853(a)(1)(C)(ii)(III) of the Social Security Act (42 U.S.C. 

1395w–23(a)(1)(C)(ii)(III)) is amended— 

(1) by striking ‘‘1.3 percentage points’’ and inserting ‘‘1.5 

percentage points’’; and 

(2) by striking ‘‘5.7 percent’’ and inserting ‘‘5.9 percent’’. 

SEC. 640. ELIMINATION OF ALL FUNDING FOR THE MEDICARE 

IMPROVEMENT FUND. 

Section 1898(b)(1) of the Social Security Act (42 U.S.C. 

1395iii(b)(1)) is amended by striking subparagraphs (A), (B), and 

(C) and inserting the following new subparagraphs: ‘‘(A) fiscal year 2014, $0; and 

‘‘(B) fiscal year 2015, $0.’’. 

SEC. 641. REBASING OF STATE DSH ALLOTMENTS. 

Section 1923(f)(8) of the Social Security Act (42 U.S.C. 1396r– 

4(f)(8)) is amended to read as follows: 

42 USC 1395gg 

note. 

Time period. 

Applicability. 


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126 STAT. 2358 PUBLIC LAW 112–240—JAN. 2, 2013 

‘‘(8) SPECIAL RULES FOR CALCULATING DSH ALLOTMENTS FOR

CERTAIN FISCAL YEARS.— ‘‘(A) FISCAL YEAR 2021.—Only with respect to fiscal 

year 2021, the DSH allotment for a State, in lieu of the 

amount determined under paragraph (3) for the State for 

that year, shall be equal to the DSH allotment for the 

State as reduced under paragraph (7) for fiscal year 2020, 

increased, subject to subparagraphs (B) and (C) of paragraph (3), and paragraph (5), by the percentage change 

in the consumer price index for all urban consumers (all 

items; U.S. city average), for fiscal year 2020. 

‘‘(B) FISCAL YEAR 2022.—Only with respect to fiscal 

year 2022, the DSH allotment for a State, in lieu of the 

amount determined under paragraph (3) for the State for 

that year, shall be equal to the DSH allotment for the 

State for fiscal year 2021, as determined under subparagraph (A), increased, subject to subparagraphs (B) and 

(C) of paragraph (3), and paragraph (5), by the percentage 

change in the consumer price index for all urban consumers 

(all items; U.S. city average), for fiscal year 2021. 

‘‘(C) SUBSEQUENT FISCAL YEARS.—The DSH allotment 

for a State for fiscal years after fiscal year 2022 shall 

be calculated under paragraph (3) without regard to this 

paragraph and paragraph (7).’’. 

SEC. 642. REPEAL OF CLASS PROGRAM. 

(a) REPEAL.—Title XXXII of the Public Health Service Act (42 

U.S.C. 300ll et seq.; relating to the CLASS program) is repealed. 

(b) CONFORMING CHANGES.— (1) Title VIII of the Patient Protection and Affordable Care 

Act (Public Law 111–148; 124 Stat. 119, 846–847) is repealed. 

(2) Section 1902(a) of the Social Security Act (42 U.S.C. 

1396a(a)) is amended— 

(A) by striking paragraphs (81) and (82); 

(B) in paragraph (80), by inserting ‘‘and’’ at the end; 

and 

(C) by redesignating paragraph (83) as paragraph (81). 

(3) Paragraphs (2) and (3) of section 6021(d) of the Deficit 

Reduction Act of 2005 (42 U.S.C. 1396p note) are amended 

to read as such paragraphs were in effect on the day before 

the date of the enactment of section 8002(d) of the Patient 

Protection and Affordable Care Act (Public Law 111–148). Of 

the funds appropriated by paragraph (3) of such section 6021(d), 

as amended by the Patient Protection and Affordable Care 

Act, the unobligated balance is rescinded. 

SEC. 643. COMMISSION ON LONG-TERM CARE. 

(a) ESTABLISHMENT.—There is established a commission to be 

known as the Commission on Long-Term Care (referred to in this 

section as the ‘‘Commission’’). 

(b) DUTIES.— 

(1) IN GENERAL.—The Commission shall develop a plan 

for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures 

the availability of long-term services and supports for individuals in need of such services and supports, including elderly 

individuals, individuals with substantial cognitive or functional 

limitations, other individuals who require assistance to perform 

Plans. 

Rescission. 

42 USC 201 note, 

300ll notes. 

42 USC 

300ll—300ll–9. 


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activities of daily living, and individuals desiring to plan for 

future long-term care needs. 

(2) EXISTING HEALTH CARE PROGRAMS.—For purposes of 

developing the plan described in paragraph (1), the Commission 

shall provide recommendations for— 

(A) addressing the interaction of a long-term services 

and support system with existing programs for long-term 

services and supports, including the Medicare program 

under title XVIII of the Social Security Act (42 U.S.C. 

1395 et seq.) and the Medicaid program under title XIX 

of the Social Security Act (42 U.S.C. 1396 et seq.), and 

private long-term care insurance; 

(B) improvements to such health care programs that 

are necessary for ensuring the availability of long-term 

services and supports; and 

(C) issues related to workers who provide long-term 

services and supports, including— 

(i) whether the number of such workers is adequate to provide long-term services and supports to 

individuals with long-term care needs; 

(ii) workforce development necessary to deliver 

high-quality services to such individuals; 

(iii) development of entities that have the capacity 

to serve as employers and fiscal agents for workers 

who provide long-term services and supports in the 

homes of such individuals; and 

(iv) addressing gaps in Federal and State infrastructure that prevent delivery of high-quality long 

term services and supports to such individuals. 

(3) ADDITIONAL CONSIDERATIONS.—For purposes of developing the plan described in paragraph (1), the Commission 

shall take into account projected demographic changes and 

trends in the population of the United States, as well as the 

potential for development of new technologies, delivery systems, 

or other mechanisms to improve the availability and quality 

of long-term services and supports. 

(4) CONSULTATION.—For purposes of developing the plan 

described in paragraph (1), the Commission shall consult with 

the Medicare Payment Advisory Commission, the Medicaid and 

CHIP Payment and Access Commission, the National Council 

on Disability, and relevant consumer groups. 

(c) MEMBERSHIP.— 

(1) IN GENERAL.—The Commission shall be composed of 

15 members, to be appointed not later than 30 days after 

the date of enactment of this Act, as follows: 

(A) The President of the United States shall appoint 

3 members. 

(B) The majority leader of the Senate shall appoint 

3 members. 

(C) The minority leader of the Senate shall appoint 

3 members. 

(D) The Speaker of the House of Representatives shall 

appoint 3 members. 

(E) The minority leader of the House of Representatives 

shall appoint 3 members. 

(2) REPRESENTATION.—The membership of the Commission 

shall include individuals who— 

Deadline. 

Appointments. 

President. 

Congress. 

Recommendations. 


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(A) represent the interests of— 

(i) consumers of long-term services and supports 

and related insurance products, as well as their representatives; 

(ii) older adults; 

(iii) individuals with cognitive or functional limitations; 

(iv) family caregivers for individuals described in 

clause (i), (ii), or (iii); 

(v) the health care workforce who directly provide 

long-term services and supports; 

(vi) private long-term care insurance providers; 

(vii) employers; 

(viii) State insurance departments; and 

(ix) State Medicaid agencies; 

(B) have demonstrated experience in dealing with 

issues related to long-term services and supports, health 

care policy, and public and private insurance; and 

(C) represent the health care interests and needs of 

a variety of geographic areas and demographic groups. 

(3) CHAIRMAN AND VICE-CHAIRMAN.—The Commission shall 

elect a chairman and vice chairman from among its members. 

(4) VACANCIES.—Any vacancy in the membership of the 

Commission shall be filled in the manner in which the original 

appointment was made and shall not affect the power of the 

remaining members to execute the duties of the Commission. 

(5) QUORUM.—A quorum shall consist of 8 members of 

the Commission, except that 4 members may conduct a hearing 

under subsection (e)(1). 

(6) MEETINGS.—The Commission shall meet at the call 

of its chairman or a majority of its members. 

(7) COMPENSATION AND REIMBURSEMENT OF EXPENSES.— 

(A) IN GENERAL.—To enable the Commission to exercise 

its powers, functions, and duties, there are authorized to 

be disbursed by the Senate the actual and necessary 

expenses of the Commission approved by the chairman 

and vice chairman, subject to subparagraph (B) and the 

rules and regulations of the Senate. 

(B) MEMBERS.—Members of the Commission are not 

entitled to receive compensation for service on the Commission. Members may be reimbursed for travel, subsistence, 

and other necessary expenses incurred in carrying out the 

duties of the Commission. 

(d) STAFF AND ETHICAL STANDARDS.— 

(1) STAFF.—The chairman and vice chairman of the 

Commission may jointly appoint and fix the compensation of 

staff as they deem necessary, within the guidelines for 

employees of the Senate and following all applicable rules and 

employment requirements of the Senate. 

(2) ETHICAL STANDARDS.—Members of the Commission who 

serve in the House of Representatives shall be governed by 

the ethics rules and requirements of the House. Members of 

the Senate who serve on the Commission and staff of the 

Commission shall comply with the ethics rules of the Senate. 

(e) POWERS.— (1) HEARINGS AND OTHER ACTIVITIES.—For the purpose of 

carrying out its duties, the Commission may hold such hearings 

Compliance. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2361 

and undertake such other activities as the Commission determines to be necessary to carry out its duties. 

(2) STUDIES BY GENERAL ACCOUNTING OFFICE.—Upon the 

request of the Commission, the Comptroller General of the 

United States shall conduct such studies or investigations as 

the Commission determines to be necessary to carry out its 

duties. 

(3) COST ESTIMATES BY CONGRESSIONAL BUDGET OFFICE.— Upon the request of the Commission, the Director of the 

Congressional Budget Office shall provide to the Commission 

such cost estimates as the Commission determines to be necessary to carry out its duties. 

(4) DETAIL OF FEDERAL EMPLOYEES.—Upon the request of 

the Commission, the head of any Federal agency is authorized 

to detail, without reimbursement, any of the personnel of such 

agency to the Commission to assist the Commission in carrying 

out its duties. Any such detail shall not interrupt or otherwise 

affect the civil service status or privileges of the Federal 

employee. 

(5) TECHNICAL ASSISTANCE.—Upon the request of the 

Commission, the head of a Federal agency shall provide such 

technical assistance to the Commission as the Commission 

determines to be necessary to carry out its duties. 

(6) USE OF MAILS.—The Commission may use the United 

States mails in the same manner and under the same conditions 

as Federal agencies. 

(7) OBTAINING INFORMATION.—The Commission may secure 

directly from any Federal agency information necessary to 

enable it to carry out its duties, if the information may be 

disclosed under section 552 of title 5, United States Code. 

Upon request of the Chairman of the Commission, the head 

of such agency shall furnish such information to the Commission. 

(8) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request 

of the Commission, the Administrator of General Services shall 

provide to the Commission on a reimbursable basis such 

administrative support services as the Commission may 

request. 

(f) COMMISSION CONSIDERATION.— 

(1) APPROVAL OF REPORT AND LEGISLATIVE LANGUAGE.— 

(A) IN GENERAL.—Not later than 6 months after 

appointment of the members of the Commission (as 

described in subsection (c)(1)), the Commission shall vote 

on a comprehensive and detailed report based on the longterm care plan described in subsection (b)(1) that contains 

any recommendations or proposals for legislative or 

administrative action as the Commission deems appropriate, including proposed legislative language to carry out 

the recommendations or proposals (referred to in this section as the ‘‘Commission bill’’). 

(B) APPROVAL BY MAJORITY OF MEMBERS.—The 

Commission bill shall require the approval of a majority 

of the members of the Commission. 

(2) TRANSMISSION OF COMMISSION BILL.— 

(A) IN GENERAL.—If the Commission bill is approved 

by the Commission pursuant to paragraph (1), then not 

later than 10 days after such approval, the Commission 

Deadline. 


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126 STAT. 2362 PUBLIC LAW 112–240—JAN. 2, 2013 

shall submit the Commission bill to the President, the 

Vice President, the Speaker of the House of Representatives, and the majority and minority Leaders of each House 

on Congress. 

(B) COMMISSION BILL TO BE MADE PUBLIC.—Upon the 

approval or disapproval of the Commission bill pursuant 

to paragraph (1), the Commission shall promptly make 

such proposal, and a record of the vote, available to the 

public. 

(g) TERMINATION.—The Commission shall terminate 30 days 

after the vote described in subsection (f)(1). 

(h) CONSIDERATION OF COMMISSION RECOMMENDATIONS.—If 

approved by the majority required by subsection (f)(1), the Commission bill that has been submitted pursuant to subsection (f)(2)(A) 

shall be introduced in the Senate (by request) on the next day 

on which the Senate is in session by the majority leader of the 

Senate or by a Member of the Senate designated by the majority 

leader of the Senate and shall be introduced in the House of 

Representatives (by request) on the next legislative day by the 

majority leader of the House or by a member of the House designated by the majority leader of the House. 

SEC. 644. CONSUMER OPERATED AND ORIENTED PLAN PROGRAM 

CONTINGENCY FUND. 

(a) ESTABLISHMENT.—The Secretary of Health and Human 

Services shall establish a fund to be used to provide assistance 

and oversight to qualified nonprofit health insurance issuers that 

have been awarded loans or grants under section 1322 of the 

Patient Protection and Affordable Care Act (42 U.S.C. 18042) prior 

to the date of enactment of this Act. 

(b) TRANSFER AND RESCISSION.— 

(1) TRANSFER.—From the unobligated balance of funds 

appropriated under section 1322(g) of the Patient Protection 

and Affordable Care Act (42 U.S.C. 18042(g)), 10 percent of 

such sums are hereby transferred to the fund established under 

subsection (a) to remain available until expended. 

(2) RESCISSION.—Except as provided for in paragraph (1), 

amounts appropriated under section 1322(g) of the Patient 

Protection and Affordable Care Act (42 U.S.C. 18042(g)) that 

are unobligated as of the date of enactment of this Act are 

rescinded. 

TITLE VII—EXTENSION OF 

AGRICULTURAL PROGRAMS 

SEC. 701. 1-YEAR EXTENSION OF AGRICULTURAL PROGRAMS. 

(a) EXTENSION.—Except as otherwise provided in this section 

and amendments made by this section and notwithstanding any 

other provision of law, the authorities provided by each provision 

of the Food, Conservation, and Energy Act of 2008 (Public Law 

110–246; 122 Stat. 1651) and each amendment made by that Act 

(and for mandatory programs at such funding levels), as in effect 

on September 30, 2012, shall continue, and the Secretary of Agriculture shall carry out the authorities, until the later of— 

(1) September 30, 2013; or 

Deadline. 

7 USC 8701 note. 

42 USC 18042 

note. 


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(2) the date specified in the provision of that Act or amendment made by that Act. 

(b) COMMODITY PROGRAMS.— 

(1) IN GENERAL.—The terms and conditions applicable to 

a covered commodity or loan commodity (as those terms are 

defined in section 1001 of the Food, Conservation, and Energy 

Act of 2008 (7 U.S.C. 8702)) or to peanuts, sugarcane, or sugar 

beets for the 2012 crop year pursuant to title I of that Act 

(7 U.S.C. 8702 et seq.) and each amendment made by that 

title shall be applicable to the 2013 crop year for that covered 

commodity, loan commodity, peanuts, sugarcane, or sugar beets. 

(2) MILK.— (A) IN GENERAL.—Notwithstanding subsection (a), the 

Secretary of Agriculture shall carry out the dairy product 

price support program under section 1501 of the Food, 

Conservation, and Energy Act of 2008 (7 U.S.C. 8771) 

through December 31, 2013. 

(B) MILK INCOME LOSS CONTRACT PROGRAM.—Section 

1506 of the Food, Conservation, and Energy Act of 2008 

(7 U.S.C. 8773) is amended by striking ‘‘2012’’ each place 

it appears in subsections (c)(3), (d)(1), (d)(2), (e)(2)(A), (g), 

and (h)(1) and inserting ‘‘2013’’. 

(3) SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITIES.—The provisions of law specified in subsections (a) through 

(c) of section 1602 of the Food, Conservation, and Energy Act 

of 2008 (7 U.S.C. 8782) shall be suspended— 

(A) for the 2013 crop or production year of a covered 

commodity (as that term is defined in section 1001 of 

that Act (7 U.S.C. 8702)), peanuts, sugarcane, and sugar, 

as appropriate; and 

(B) in the case of milk, through December 31, 2013. 

(c) CONSERVATION PROGRAMS.— 

(1) CONSERVATION RESERVE.—Section 1231(d) of the Food 

Security Act of 1985 (16 U.S.C. 3831(d)) is amended in the 

second sentence by striking ‘‘and 2012’’ and inserting ‘‘2012, 

and 2013’’. 

(2) VOLUNTARY PUBLIC ACCESS.—Section 1240R of the Food 

Security Act of 1985 (16 U.S.C. 3839bb–5) is amended by 

striking subsection (f) and inserting the following: 

‘‘(f) FUNDING.— 

‘‘(1) FISCAL YEARS 2009 THROUGH 2012.—Of the funds of 

the Commodity Credit Corporation, the Secretary shall use 

to carry out this section, to the maximum extent practicable, 

$50,000,000 for the period of fiscal years 2009 through 2012. 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $10,000,000 

for fiscal year 2013.’’. 

(d) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— 

(1) EMPLOYMENT AND TRAINING PROGRAM.—Section 

16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2025(h)(1)(A)) is amended by inserting ‘‘, except that for fiscal 

year 2013, the amount shall be $79,000,000’’ before the period 

at the end. 

(2) NUTRITION EDUCATION.—Section 28(d)(1) of the Food 

and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended— 

(A) in subparagraph (A), by striking ‘‘and’’ after the 

semicolon at the end; and 

7 USC 8773 note. 


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126 STAT. 2364 PUBLIC LAW 112–240—JAN. 2, 2013 

(B) by striking subparagraph (B) and inserting the 

following: 

‘‘(B) for fiscal year 2012, $388,000,000; 

‘‘(C) for fiscal year 2013, $285,000,000; 

‘‘(D) for fiscal year 2014, $401,000,000; 

‘‘(E) for fiscal year 2015, $407,000,000; and 

‘‘(F) for fiscal year 2016 and each subsequent fiscal 

year, the applicable amount during the preceding fiscal 

year, as adjusted to reflect any increases for the 12-month 

period ending the preceding June 30 in the Consumer 

Price Index for All Urban Consumers published by the 

Bureau of Labor Statistics of the Department of Labor.’’. 

(e) RESEARCH PROGRAMS.— 

(1) ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.—Section 1672B(f) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 5925b(f)) is amended— 

(A) in the heading of paragraph (1), by striking ‘‘IN

GENERAL’’ and inserting ‘‘MANDATORY FUNDING FOR FISCAL

YEARS 2009 THROUGH 2012’’; 

(B) in the heading of paragraph (2), by striking ‘‘ADDITIONAL FUNDING’’ and inserting ‘‘DISCRETIONARY FUNDING

FOR FISCAL YEARS 2009 THROUGH 2012’’; and 

(C) by adding at the end the following: 

‘‘(3) FISCAL YEAR 2013.—There is authorized to be appropriated to carry out this section $25,000,000 for fiscal year 

2013.’’. 

(2) SPECIALTY CROP RESEARCH INITIATIVE.—Section 412(h) 

of the Agricultural Research, Extension, and Education Reform 

Act of 1998 (7 U.S.C. 7632(h)) is amended— 

(A) in the heading of paragraph (1), by striking ‘‘IN

GENERAL’’ and inserting ‘‘MANDATORY FUNDING FOR FISCAL

YEARS 2008 THROUGH 2012’’; 

(B) in the heading of paragraph (2), by inserting ‘‘FOR

FISCAL YEARS 2008 THROUGH 2012’’ after ‘‘APPROPRIATIONS’’; 

(C) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and 

(D) by inserting after paragraph (2) the following: 

‘‘(3) FISCAL YEAR 2013.—There is authorized to be appropriated to carry out this section $100,000,000 for fiscal year 

2013.’’. 

(3) BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.—Section 7405(h) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f(h)) is amended— 

(A) in the heading of paragraph (1), by striking ‘‘IN

GENERAL’’ and inserting ‘‘MANDATORY FUNDING FOR FISCAL

YEARS 2009 THROUGH 2012’’; 

(B) in the heading of paragraph (2), by inserting ‘‘FOR

FISCAL YEARS 2008 THROUGH 2012’’ after ‘‘APPROPRIATIONS’’; 

and 

(C) by adding at the end the following: 

‘‘(3) FISCAL YEAR 2013.—There is authorized to be appropriated to carry out this section $30,000,000 for fiscal year 

2013.’’. 

(f) ENERGY PROGRAMS.— 

(1) BIOBASED MARKETS PROGRAM.—Section 9002(h) of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

Appropriation 

authorization. 

Appropriation 

authorization. 

Appropriation 

authorization. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2365 

8102(h)) is amended in paragraph (2) by striking ‘‘2012’’ and 

inserting ‘‘2013’’. 

(2) BIOREFINERY ASSISTANCE.—Section 9003(h)(2) of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

8103(h)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

(3) REPOWERING ASSISTANCE.—Section 9004(d)(2) of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

8104(d)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

(4) BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.—Section 

9005(g)(2) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8105(g)(2)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2013’’. 

(5) BIODIESEL FUEL EDUCATION PROGRAM.—Section 9006 

of the Farm Security and Rural Investment Act of 2002 (7 

U.S.C. 8106) is amended by striking subsection (d) and inserting 

the following: 

‘‘(d) FUNDING.— 

‘‘(1) FISCAL YEARS 2009 THROUGH 2012.—Of the funds of 

the Commodity Credit Corporation, the Secretary shall use 

to carry out this section $1,000,000 for each of fiscal years 

2008 through 2012. 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $1,000,000 

for fiscal year 2013.’’. 

(6) RURAL ENERGY FOR AMERICA PROGRAM.—Section 

9007(g)(3) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8107(g)(3)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2013’’. 

(7) BIOMASS RESEARCH AND DEVELOPMENT.—Section 

9008(h)(2) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8108(h)(2)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2013’’. 

(8) RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.—Section 

9009(d) of the Farm Security and Rural Investment Act of 

2002 (7 U.S.C. 8109(d)) is amended by striking ‘‘2012’’ and 

inserting ‘‘2013’’. 

(9) FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.—Section 9010(b) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 8110(b)) is amended in paragraphs (1)(A) and (2)(A) by striking ‘‘2012’’ each place it appears 

and inserting ‘‘2013’’. 

(10) BIOMASS CROP ASSISTANCE PROGRAM.—Section 9011(f) 

of the Farm Security and Rural Investment Act of 2002 (7 

U.S.C. 8111(f)) is amended— 

(A) by striking ‘‘(f) FUNDING.—Of the funds’’ and 

inserting ‘‘(f) FUNDING.— 

‘‘(1) FISCAL YEARS 2008 THROUGH 2012.—Of the funds’’; and 

(B) adding at the end the following: 

‘‘(2) FISCAL YEAR 2013.— 

‘‘(A) IN GENERAL.—There is authorized to be appropriated to carry out this section $20,000,000 for fiscal year 

2013. 

‘‘(B) MULTIYEAR CONTRACTS.—For each multiyear contract entered into by the Secretary during a fiscal year 

under this paragraph, the Secretary shall ensure that sufficient funds are obligated from the amounts appropriated 

Appropriation 

authorization. 


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126 STAT. 2366 PUBLIC LAW 112–240—JAN. 2, 2013 

for that fiscal year to fully cover all payments required 

by the contract for all years of the contract.’’. 

(11) FOREST BIOMASS FOR ENERGY.—Section 9012(d) of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

8112(d)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

(12) COMMUNITY WOOD ENERGY PROGRAM.—Section 9013(e) 

of the Farm Security and Rural Investment Act of 2002 (7 

U.S.C. 8113(e)) is amended by striking ‘‘2012’’ and inserting 

‘‘2013’’. 

(g) HORTICULTURE AND ORGANIC AGRICULTURE PROGRAMS.— (1) FARMERS MARKET PROMOTION PROGRAM.—Section 6(e) 

of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 

U.S.C. 3005(e)) is amended— 

(A) in the heading of paragraph (1), by striking ‘‘IN

GENERAL’’ and inserting ‘‘FISCAL YEARS 2008 THROUGH 2012’’; 

(B) by redesignating paragraphs (2), (3), and (4) as 

paragraphs (3), (4), and (5), respectively; 

(C) by inserting after paragraph (1) the following: 

‘‘(2) FISCAL YEAR 2013.—There is authorized to be appropriated to carry out this section $10,000,000 for fiscal year 

2013.’’; 

(D) in paragraph (3) (as so redesignated), by striking 

‘‘paragraph (1)’’ and inserting ‘‘paragraph (1) or (2)’’; and 

(E) in paragraph (5) (as so redesignated), by striking 

‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 

(2) NATIONAL CLEAN PLANT NETWORK.—Section 10202(e) 

of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 

7761(e)) is amended— 

(A) by striking ‘‘Of the funds’’ and inserting the following: 

‘‘(1) FISCAL YEARS 2009 THROUGH 2012.—Of the funds’’; and 

(B) by adding at the end the following: 

‘‘(2) FISCAL YEAR 2013.—There is authorized to be appropriated to carry out the Program $5,000,000 for fiscal year 

2013.’’. 

(3) NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.—Section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523) is amended— 

(A) in subsection (a), by striking ‘‘Of funds of the 

Commodity Credit Corporation, the Secretary of Agriculture (acting through the Agricultural Marketing Service) 

shall use $22,000,000 for fiscal year 2008, to remain available until expended, to’’ and inserting ‘‘The Secretary of 

Agriculture (acting through the Agricultural Marketing 

Service) shall’’; and 

(B) by adding at the end the following: 

‘‘(d) FUNDING.— 

‘‘(1) MANDATORY FUNDING FOR FISCAL YEARS 2008 THROUGH

2012.—Of the funds of the Commodity Credit Corporation, the 

Secretary shall make available to carry out this section 

$22,000,000 for the period of fiscal years 2008 through 2012. 

‘‘(2) FISCAL YEAR 2013.—There is authorized to be appropriated to carry out this section $22,000,000 for fiscal year 

2013, to remain available until expended.’’. 

(4) ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.— Section 7407(d) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 5925c(d)) is amended— 

Appropriation 

authorization. 

Appropriation 

authorization. 

Appropriation 

authorization. 


dkrause on DSKHT7XVN1PROD with PUBLIC LAWS
PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2367 

(A) in the heading of paragraph (1), by striking ‘‘IN

GENERAL’’ and inserting ‘‘MANDATORY FUNDING THROUGH

FISCAL YEAR 2012’’; 

(B) in the heading of paragraph (2), by striking ‘‘ADDI- TIONAL FUNDING’’ and inserting ‘‘DISCRETIONARY FUNDING

FOR FISCAL YEARS 2008 THROUGH 2012’’; and 

(C) by adding at the end the following: 

‘‘(3) FISCAL YEAR 2013.—There is authorized to be appro- priated to carry out this section $5,000,000, to remain available 

until expended.’’. 

(h) OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY DIS- ADVANTAGED FARMERS OR RANCHERS.—Section 2501(a)(4) of the 

Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(a)(4)) is amended— 

(1) in the heading of subparagraph (A), by striking ‘‘IN

GENERAL’’ and inserting ‘‘FISCAL YEARS 2009 THROUGH 2012’’; 

(2) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; 

(3) by inserting after subparagraph (A) the following: 

‘‘(B) FISCAL YEAR 2013.—There is authorized to be 

appropriated to carry out this section $20,000,000 for fiscal 

year 2013.’’; 

(4) in subparagraph (C) (as so redesignated), by striking 

‘‘subparagraph (A)’’ and inserting ‘‘subparagraph (A) or (B)’’; 

and 

(5) in subparagraph (D) (as so redesignated), by striking 

‘‘subparagraph (A)’’ and inserting ‘‘subparagraph (A) or (B)’’. 

(i) EXCEPTIONS.— 

(1) IN GENERAL.—Subsection (a) does not apply with respect 

to mandatory funding provided by programs authorized by 

provisions of law amended by subsections (d) through (h). 

(2) CONSERVATION.—Subsection (a) does not apply with 

respect to the programs specified in paragraphs (3)(B), (4), 

(6), and (7) of section 1241(a) of the Food Security Act of 

1985 (16 U.S.C. 3841(a)), relating to the conservation stewardship program, farmland protection program, environmental 

quality incentives program, and wildlife habitat incentives program, for which program authority was extended through fiscal 

year 2014 by section 716 of Public Law 112–55 (125 Stat. 

582). 

(3) TRADE.—Subsection (a) does not apply with respect 

to the following provisions of law: 

(A) Section 3206 of the Food, Conservation, and Energy 

Act of 2008 (7 U.S.C. 1726c) relating to the use of Commodity Credit Corporation funds to support local and 

regional food aid procurement projects. 

(B) Section 3107(l)(1) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 1736o–1(l)(1)) relating 

to the use of Commodity Credit Corporation funds to carry 

out the McGovern-Dole International Food for Education 

and Child Nutrition Program. 

(4) SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES.—Subsection (a) does not apply with respect to section 

4307 of the Food, Conservation, and Energy Act of 2008 (Public 

Law 110–246; 122 Stat. 1893) relating to the use of Commodity 

Credit Corporation funds for a survey and report regarding 

foods purchased by school food authorities. 

Appropriation 

authorization. 

Appropriation 

authorization. 


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126 STAT. 2368 PUBLIC LAW 112–240—JAN. 2, 2013 

(5) RURAL DEVELOPMENT.—Subsection (a) does not apply 

with respect to the following provisions of law: 

(A) Section 379E(d)(1) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2008s(d)(1)), relating to 

funding of the rural microentrepreneur assistance program. 

(B) Section 6029 of the Food, Conservation, and Energy 

Act of 2008 (Public Law 110–246; 122 Stat. 1955) relating 

to funding of pending rural development loan and grant 

applications. 

(C) Section 231(b)(7)(A) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(b)(7)(A)), relating to 

funding of value-added agricultural market development 

program grants. 

(D) Section 375(e)(6)(B) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 2008j(e)(6)(B)) relating 

to the use of Commodity Credit Corporation funds for the 

National Sheep Industry Improvement Center. 

(6) MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.— 

Subsection (a) does not apply with respect to section 10404(d) 

of the Food, Conservation, and Energy Act of 2008 (Public 

Law 110–246; 122 Stat. 2112). 

(7) SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.— 

Subsection (a) does not apply with respect to section 531 of 

the Federal Crop Insurance Act (7 U.S.C. 1531) and title IX 

of the Trade Act of 1974 (19 U.S.C. 2497 et seq.) relating 

to the provision of supplemental agricultural disaster assistance. 

(8) PIGFORD CLAIMS.—Subsection (a) does not apply with 

respect to section 14012 of the Food, Conservation, and Energy 

Act of 2008 (Public Law 110–246; 122 Stat. 2209) relating 

to determination on the merits of Pigford claims. 

(9) HEARTLAND, HABITAT, HARVEST, AND HORTICULTURE ACT

OF 2008.—Subsection (a) does not apply with respect to title 

XV of the Food, Conservation, and Energy Act of 2008 (Public 

Law 110–246; 122 Stat. 2246), and amendments made by that 

title, relating to the provision of supplemental agricultural disaster assistance under title IX of the Trade Act of 1974 (19 

U.S.C. 2497 et seq.), certain revenue and tax provisions, and 

certain trade benefits and other matters. 

(j) EFFECTIVE DATE.—Except as otherwise provided in this section, this section and the amendments made by this section take 

effect on the earlier of— 

(1) the date of the enactment of this Act; or 

(2) September 30, 2012. 

SEC. 702. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 

(a) IN GENERAL.—Section 531 of the Federal Crop Insurance 

Act (7 U.S.C. 1531) is amended— 

(1) in subsection (a)(5)— 

(A) in the matter preceding clause (i), by striking the 

first ‘‘under’’; and 

(B) by redesignating clauses (i) through (iii) as subparagraphs (A), (B), and (C), respectively, and indenting appropriately; 

(2) in subsection (c)— 

(A) in paragraph (1), by striking ‘‘use such sums as 

are necessary from the Trust Fund to’’; and 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2369 

(B) by adding at the end the following: 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $80,000,000 

for each of fiscal years 2012 and 2013.’’; 

(3) in subsection (d)— 

(A) in paragraph (2), by striking ‘‘use such sums as 

are necessary from the Trust Fund to’’; and 

(B) by adding at the end the following: 

‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection 

$400,000,000 for each of fiscal years 2012 and 2013.’’; 

(4) in subsection (e)— 

(A) in paragraph (1), by striking ‘‘use up to $50,000,000 

per year from the Trust Fund to’’; and 

(B) by adding at the end the following: 

‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $50,000,000 

for each of fiscal years 2012 and 2013.’’; 

(5) in subsection (f)— 

(A) in paragraph (2)(A), by striking ‘‘use such sums 

as are necessary from the Trust Fund to’’; and 

(B) by adding at the end the following: 

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $20,000,000 

for each of fiscal years 2012 and 2013.’’; and 

(6) in subsection (i), by inserting ‘‘or, in the case of subsections (c) through (f), September 30, 2013’’ after ‘‘2011,’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall take effect on October 1, 2012. 

TITLE VIII—MISCELLANEOUS 

PROVISIONS 

SEC. 801. STRATEGIC DELIVERY SYSTEMS. 

(a) IN GENERAL.—Paragraph 3 of section 495(c) of title 10, 

United States Code,, as added by section 1035 of the National 

Defense Authorization Act for Fiscal Year 2013, is amended— 

(1) by striking ‘‘that’’ before ‘‘the Russian Federation’’ and 

inserting ‘‘whether’’; and 

(2) by inserting ‘‘strategic’’ before ‘‘arms control obligations’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall take effect as if included in the enactment of the National 

Defense Authorization Act for Fiscal Year 2013. 

SEC. 802. NO COST OF LIVING ADJUSTMENT IN PAY OF MEMBERS 

OF CONGRESS. 

Notwithstanding any other provision of law, no adjustment 

shall be made under section 601(a) of the Legislative Reorganization 

Act of 1946 (2 U.S.C. 31) (relating to cost of living adjustments 

for Members of Congress) during fiscal year 2013. 

2 USC 31 note. 

10 USC 495 note. 

7 USC 1531 note. 


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126 STAT. 2370 PUBLIC LAW 112–240—JAN. 2, 2013 

TITLE IX—BUDGET PROVISIONS 

Subtitle A—Modifications of Sequestration 

SEC. 901. TREATMENT OF SEQUESTER. 

(a) ADJUSTMENT.—Section 251A(3) of the Balanced Budget and 

Emergency Deficit Control Act of 1985 is amended— 

(1) in subparagraph (C), by striking ‘‘and’’ after the semicolon; 

(2) in subparagraph (D), by striking the period and 

inserting‘‘ ; and’’; and 

(3) by inserting at the end the following: 

‘‘(E) for fiscal year 2013, reducing the amount calculated under subparagraphs (A) through (D) by 

$24,000,000,000.’’. 

(b) AFTER SESSION SEQUESTER.—Notwithstanding any other 

provision of law, the fiscal year 2013 spending reductions required 

by section 251(a)(1) of the Balanced Budget and Emergency Deficit 

Control Act of 1985 shall be evaluated and implemented on March 

27, 2013. 

(c) POSTPONEMENT OF BUDGET CONTROL ACT SEQUESTER FOR

FISCAL YEAR 2013.—Section 251A of the Balanced Budget and 

Emergency Deficit Control Act of 1985 is amended— 

(1) in paragraph (4), by striking ‘‘January 2, 2013’’ and 

inserting ‘‘March 1, 2013’’; and 

(2) in paragraph (7)(A), by striking ‘‘January 2, 2013’’ and 

inserting ‘‘March 1, 2013’’. 

(d) ADDITIONAL ADJUSTMENTS.— 

(1) SECTION 251.—Paragraphs (2) and (3) of section 251(c) 

of the Balanced Budget and Emergency Deficit Control Act 

of 1985 are amended to read as follows: 

‘‘(2) for fiscal year 2013— 

‘‘(A) for the security category, as defined in section 

250(c)(4)(B), $684,000,000,000 in budget authority; and 

‘‘(B) for the nonsecurity category, as defined in section 

250(c)(4)(A), $359,000,000,000 in budget authority; 

‘‘(3) for fiscal year 2014— 

‘‘(A) for the security category, $552,000,000,000 in 

budget authority; and 

‘‘(B) for the nonsecurity category, $506,000,000,000 in 

budget authority;’’. 

(e) 2013 SEQUESTER.—On March 1, 2013, the President shall 

order a sequestration for fiscal year 2013 pursuant to section 251A 

of the Balanced Budget and Emergency Deficit Control Act of 1985, 

as amended by this section, pursuant to which, only for the purposes 

of the calculation in sections 251A(5)(A), 251A(6)(A), and 251A(7)(A), 

section 251(c)(2) shall be applied as if it read as follows: 

‘‘(2) For fiscal year 2013— 

‘‘(A) for the security category, $544,000,000,000 in 

budget authority; and 

‘‘(B) for the nonsecurity category, $499,000,000,000 in 

budget authority;’’. 

Effective date. 

President. 

Applicability. 

2 USC 901a note. 

2 USC 901. 

2 USC 901a. 


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PUBLIC LAW 112–240—JAN. 2, 2013 126 STAT. 2371 

LEGISLATIVE HISTORY—H.R. 8: 

CONGRESSIONAL RECORD: 

Vol. 158 (2012): Aug. 1, considered and passed House. 

Dec. 31, considered and passed Senate, amended. 

Vol. 158 (2013): Jan. 1, House concurred in Senate amendments. 

Æ 

SEC. 902. AMOUNTS IN APPLICABLE RETIREMENT PLANS MAY BE 

TRANSFERRED TO DESIGNATED ROTH ACCOUNTS WITHOUT DISTRIBUTION. 

(a) IN GENERAL.—Section 402A(c)(4) is amended by adding 

at the end the following: 

‘‘(E) SPECIAL RULE FOR CERTAIN TRANSFERS.—In the 

case of an applicable retirement plan which includes a 

qualified Roth contribution program— 

‘‘(i) the plan may allow an individual to elect to 

have the plan transfer any amount not otherwise 

distributable under the plan to a designated Roth 

account maintained for the benefit of the individual, 

‘‘(ii) such transfer shall be treated as a distribution 

to which this paragraph applies which was contributed 

in a qualified rollover contribution (within the meaning 

of section 408A(e)) to such account, and 

‘‘(iii) the plan shall not be treated as violating 

the provisions of section 401(k)(2)(B)(i), 403(b)(7)(A)(i), 

403(b)(11), or 457(d)(1)(A), or of section 8433 of title 

5, United States Code, solely by reason of such 

transfer.’’. 

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

shall apply to transfers after December 31, 2012, in taxable years 

ending after such date. 

Subtitle B—Budgetary Effects 

SEC. 911. 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). 

Approved January 2, 2013. 

26 USC 402A 

note. 

26 USC 402A. 


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