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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2132 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 327
112th CONGRESS
  2d Session
                                S. 2132

                          [Report No. 112-152]

To amend the Internal Revenue Code of 1986 to provide for the extension 
   of highway-related taxes and trust fund expenditures, to provide 
         revenues for highway programs, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2012

   Mr. Baucus, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
To amend the Internal Revenue Code of 1986 to provide for the extension 
   of highway-related taxes and trust fund expenditures, to provide 
         revenues for highway programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Highway 
Investment, Job Creation, and Economic Growth Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                             RELATED TAXES

Sec. 101. Extension of trust fund expenditure authority.
Sec. 102. Extension of highway-related taxes.
                       TITLE II--OTHER PROVISIONS

Sec. 201. Temporary increase in small issuer exception to tax-exempt 
                            interest expense allocation rules for 
                            financial institutions.
Sec. 202. Temporary modification of alternative minimum tax limitations 
                            on tax- exempt bonds.
Sec. 203. Issuance of TRIP bonds by State infrastructure banks.
Sec. 204. Extension of parity for exclusion from income for employer-
                            provided mass transit and parking benefits.
Sec. 205. Exempt-facility bonds for sewage and water supply facilities.
                     TITLE III--REVENUE PROVISIONS

Sec. 301. Transfer from Leaking Underground Storage Tank Trust Fund to 
                            Highway Trust Fund.
Sec. 302. Portion of Leaking Underground Storage Tank Trust Fund 
                            financing rate transferred to Highway Trust 
                            Fund.
Sec. 303. Elimination of unintended application of cellulosic biofuel 
                            producer credit.
Sec. 304. Transfer of gas guzzler taxes to Highway Trust Fund.
Sec. 305. Revocation or denial of passport in case of certain unpaid 
                            taxes.
Sec. 306. 100 percent continuous levy on payments to Medicare providers 
                            and suppliers.
Sec. 307. Transfer of amounts attributable to certain duties on 
                            imported vehicles into the Highway Trust 
                            Fund.
Sec. 308. Treatment of securities of a controlled corporation exchanged 
                            for assets in certain reorganizations.
Sec. 309. Internal Revenue Service levies and Thrift Savings Plan 
                            Accounts.
Sec. 310. Modifications of required distribution rules for pension 
                            plans.
Sec. 311. Depreciation and amortization rules for highway and related 
                            property subject to long-term leases.
Sec. 312. Extension for transfers of excess pension assets to retiree 
                            health accounts.
Sec. 313. Transfer of excess pension assets to retiree group term life 
                            insurance accounts.

  TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                             RELATED TAXES

SEC. 101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.

    (a) Highway Trust Fund.--Section 9503 of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``April 1, 2012'' in subsections (b)(6)(B), 
        (c)(1), and (e)(3) and inserting ``October 1, 2013''; and
            (2) by striking ``Surface Transportation Extension Act of 
        2011, Part II'' in subsections (c)(1) and (e)(3) and inserting 
        ``Moving Ahead for Progress in the 21st Century Act''.
    (b) Sport Fish Restoration and Boating Trust Fund.--Section 9504 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``Surface Transportation Extension Act of 
        2011, Part II'' each place it appears in subsection (b)(2) and 
        inserting ``Moving Ahead for Progress in the 21st Century 
        Act''; and
            (2) by striking ``April 1, 2012'' in subsection (d)(2) and 
        inserting ``October 1, 2013''.
    (c) Leaking Underground Storage Tank Trust Fund.--Paragraph (2) of 
section 9508(e) of the Internal Revenue Code of 1986 is amended by 
striking ``April 1, 2012'' and inserting ``October 1, 2013''.
    (d) Establishment of Solvency Account.--Section 9503 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(g) Establishment of Solvency Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `Solvency Account' consisting of such amounts as may be 
        transferred or credited to the Solvency Account as provided in 
        this section or section 9602(b).
            ``(2) Transfers to solvency account.--The Secretary of the 
        Treasury shall transfer to the Solvency Account the excess of--
                    ``(A) any amount appropriated to the Highway Trust 
                Fund before October 1, 2013, by reason of the 
                provisions of, and amendments made by, the Highway 
                Investment, Job Creation, and Economic Growth Act of 
                2012, over
                    ``(B) the amount necessary to meet the required 
                expenditures from the Highway Trust Fund under 
                subsection (c) for the period ending before October 1, 
                2013.
            ``(3) Expenditures from account.--Amounts in the Solvency 
        Account shall be available for transfers to the Highway Account 
        (as defined in subsection (e)(5)(B)) and the Mass Transit 
        Account in such amounts as determined necessary by the 
        Secretary to ensure that each account has a surplus balance of 
        $2,800,000,000 on September 30, 2013.
            ``(4) Termination of account.--The Solvency Account shall 
        terminate on September 30, 2013, and the Secretary shall 
        transfer any remaining balance in the Account on such date to 
        the Highway Trust Fund.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on April 1, 2012.

SEC. 102. EXTENSION OF HIGHWAY-RELATED TAXES.

    (a) In General.--
            (1) Each of the following provisions of the Internal 
        Revenue Code of 1986 is amended by striking ``March 31, 2012'' 
        and inserting ``September 30, 2015'':
                    (A) Section 4041(a)(1)(C)(iii)(I).
                    (B) Section 4041(m)(1)(B).
                    (C) Section 4081(d)(1).
            (2) Each of the following provisions of such Code is 
        amended by striking ``April 1, 2012'' and inserting ``October 
        1, 2015'':
                    (A) Section 4041(m)(1)(A).
                    (B) Section 4051(c).
                    (C) Section 4071(d).
                    (D) Section 4081(d)(3).
    (b) Extension of Tax, etc., on Use of Certain Heavy Vehicles.--Each 
of the following provisions of the Internal Revenue Code of 1986 is 
amended by striking ``2012'' and inserting ``2015'':
            (1) Section 4481(f).
            (2) Subsections (c)(4) and (d) of section 4482.
    (c) Floor Stocks Refunds.--Section 6412(a)(1) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``April 1, 2012'' each place it appears and 
        inserting ``October 1, 2015'';
            (2) by striking ``September 30, 2012'' each place it 
        appears and inserting ``March 31, 2016''; and
            (3) by striking ``July 1, 2012'' and inserting ``January 1, 
        2016''.
    (d) Extension of Certain Exemptions.--Sections 4221(a) and 4483(i) 
of the Internal Revenue Code of 1986 are each amended by striking 
``April 1, 2012'' and inserting ``October 1, 2015''.
    (e) Extension of Transfers of Certain Taxes.--
            (1) In general.--Section 9503 of the Internal Revenue Code 
        of 1986 is amended--
                    (A) in subsection (b)--
                            (i) by striking ``April 1, 2012'' each 
                        place it appears in paragraphs (1) and (2) and 
                        inserting ``October 1, 2015'';
                            (ii) by striking ``April 1, 2012'' in the 
                        heading of paragraph (2) and inserting 
                        ``October 1, 2015'';
                            (iii) by striking ``March 31, 2012'' in 
                        paragraph (2) and inserting ``September 30, 
                        2015''; and
                            (iv) by striking ``January 1, 2013'' in 
                        paragraph (2) and inserting ``July 1, 2016''; 
                        and
                    (B) in subsection (c)(2), by striking ``January 1, 
                2013'' and inserting ``July 1, 2016''.
            (2) Motorboat and small-engine fuel tax transfers.--
                    (A) In general.--Paragraphs (3)(A)(i) and (4)(A) of 
                section 9503(c) of such Code are each amended by 
                striking ``April 1, 2012'' and inserting ``October 1, 
                2015''.
                    (B) Conforming amendments to land and water 
                conservation fund.--Section 201(b) of the Land and 
                Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
                11(b)) is amended--
                            (i) by striking ``April 1, 2013'' each 
                        place it appears and inserting ``October 1, 
                        2016''; and
                            (ii) by striking ``April 1, 2012'' and 
                        inserting ``October 1, 2015''.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on April 1, 
        2012.
            (2) Subsection (b)(2).--The amendment made by subsection 
        (b)(2) shall apply to periods beginning after September 30, 
        2012.

                       TITLE II--OTHER PROVISIONS

SEC. 201. TEMPORARY INCREASE IN SMALL ISSUER EXCEPTION TO TAX-EXEMPT 
              INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL 
              INSTITUTIONS.

    (a) In General.--Subparagraph (G) of section 265(b)(3) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``2009 or 2010'' in clause (i) and 
        inserting ``2009, 2010, or 2012'',
            (2) by striking ``2009 or 2010'' in clauses (ii) and (iii) 
        and inserting ``2009, 2010, or the period beginning after the 
        date of the enactment of the Highway Investment, Job Creation, 
        and Economic Growth Act of 2012 and before January 1, 2013'', 
        and
            (3) by striking ``2009 and 2010'' in the heading and 
        inserting ``2009, 2010, and 2012''.
    (b) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 202. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS 
              ON TAX- EXEMPT BONDS.

    (a) Interest on Private Activity Bonds Not Treated as Tax 
Preference Items.--Clause (vi) of section 57(a)(5)(C) of the Internal 
Revenue Code of 1986 is amended--
            (1) in subclause (I) by inserting ``, or after the date of 
        enactment of the Highway Investment, Job Creation, and Economic 
        Growth Act of 2012 and before January 1, 2013'' after ``January 
        1, 2011'';
            (2) in subclause (III) by inserting ``before January 1, 
        2011'' after ``which is issued''; and
            (3) by striking ``and 2010'' in the heading and inserting 
        ``, 2010, and portions of 2012''.
    (b) No Adjustment to Adjusted Current Earnings.--Clause (iv) of 
section 56(g)(4)(B) of the Internal Revenue Code of 1986 is amended--
            (1) in subclause (I) by inserting ``, or after the date of 
        enactment of the Highway Investment, Job Creation, and Economic 
        Growth Act of 2012 and before January 1, 2013'' after ``January 
        1, 2011'';
            (2) in subclause (III) by inserting ``before January 1, 
        2011'' after ``which is issued''; and
            (3) by striking ``and 2010'' in the heading and inserting 
        ``, 2010, and portions of  2012''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of enactment of this Act.

SEC. 203. ISSUANCE OF TRIP BONDS BY STATE INFRASTRUCTURE BANKS.

    Section 610(d) of title 23, United States Code, is amended--
            (1) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (5), (6), and (7), respectively,
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) TRIP bond account.--
                    ``(A) In general.--A State, through a State 
                infrastructure bank, may issue TRIP bonds and deposit 
                proceeds from such issuance into the TRIP bond account 
                of the bank.
                    ``(B) TRIP bond.--For purposes of this section, the 
                term `TRIP bond' means any bond issued as part of an 
                issue if--
                            ``(i) 100 percent of the available project 
                        proceeds of such issue are to be used for 
                        expenditures incurred after the date of the 
                        enactment of this paragraph for 1 or more 
                        qualified projects pursuant to an allocation of 
                        such proceeds to such project or projects by a 
                        State infrastructure bank,
                            ``(ii) the bond is issued by a State 
                        infrastructure bank and is in registered form 
                        (within the meaning of section 149(a) of the 
                        Internal Revenue Code of 1986),
                            ``(iii) the State infrastructure bank 
                        designates such bond for purposes of this 
                        section, and
                            ``(iv) the term of each bond which is part 
                        of such issue does not exceed 30 years.
                    ``(C) Qualified project.--For purposes of this 
                subparagraph, the term `qualified project' means the 
                capital improvements to any transportation 
                infrastructure project of any governmental unit or 
                other person, including roads, bridges, rail and 
                transit systems, ports, and inland waterways proposed 
                and approved by a State infrastructure bank, but does 
                not include costs of operations or maintenance with 
                respect to such project.'',
            (3) by adding at the end of paragraph (5), as redesignated 
        by paragraph (1), the following new subparagraph:
                    ``(D) TRIP bond account..--Funds deposited into the 
                TRIP bond account shall constitute for purposes of this 
                section a capitalization grant for the TRIP bond 
                account of the bank.'', and
            (4) by adding at the end the following new paragraph:
            ``(8) Special rules for trip bond account funds.--
                    ``(A) In general.--The State shall develop a 
                transparent competitive process for the award of funds 
                deposited into the TRIP bond account that considers the 
                impact of qualified projects on the economy, the 
                environment, state of good repair, and equity.
                    ``(B) Applicability of federal law.--The 
                requirements of any Federal law, including this title 
                and titles 40 and 49, which would otherwise apply to 
                projects to which the United States is a party or to 
                funds made available under such law and projects 
                assisted with those funds shall apply to--
                            ``(i) funds made available under the TRIP 
                        bond account for similar qualified projects, 
                        and
                            ``(ii) similar qualified projects assisted 
                        through the use of such funds.''.

SEC. 204. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-
              PROVIDED MASS TRANSIT AND PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) of the Internal 
Revenue Code of 1986 is amended by striking ``January 1, 2012'' and 
inserting ``January 1, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months after December 31, 2011.

SEC. 205. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY FACILITIES.

    (a) Bonds for Water and Sewage Facilities Temporarily Exempt From 
Volume Cap on Private Activity Bonds.--Subsection (g) of section 146 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (3),
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``, and'', and
            (3) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) any exempt facility bonds issued before January 1, 
        2018, as part of an issue described in paragraph (4) or (5) of 
        section 142(a).''.
    (b) Conforming Change.--Paragraphs (2) and (3)(B) of section 146(k) 
of the Internal Revenue Code of 1986 are both amended by striking 
``paragraph (4), (5), (6), or (10) of section 142(a)'' and inserting 
``paragraph (4) or (5) of section 142(a) with respect to bonds issued 
after December 31, 2017, or paragraph (6) or (10) of section 142(a)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

                     TITLE III--REVENUE PROVISIONS

SEC. 301. TRANSFER FROM LEAKING UNDERGROUND STORAGE TANK TRUST FUND TO 
              HIGHWAY TRUST FUND.

    (a) In General.--Subsection (c) of section 9508 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``Amounts'' and inserting:
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Transfer to highway trust fund.--Out of amounts in 
        the Leaking Underground Storage Tank Trust Fund there is hereby 
        appropriated $3,000,000,000 to be transferred under section 
        9503(f)(3) to the Highway Trust Fund.''.
    (b) Transfer to Highway Trust Fund.--
            (1) In general.--Subsection (f) of section 9503 of the 
        Internal Revenue Code of 1986 is amended by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) Increase in fund balance.--There is hereby 
        transferred to the Highway Trust Fund amounts appropriated from 
        the Leaking Underground Storage Tank Trust Fund under section 
        9508(c)(2).''.
            (2) Conforming amendments.--Paragraph (4) of section 
        9503(f) of such Code is amended--
                    (A) by inserting ``or transferred'' after 
                ``appropriated'', and
                    (B) by striking ``appropriated'' in the heading 
                thereof.

SEC. 302. PORTION OF LEAKING UNDERGROUND STORAGE TANK TRUST FUND 
              FINANCING RATE TRANSFERRED TO HIGHWAY TRUST FUND.

    (a) In General.--Subsection (b) of section 9503 of the Internal 
Revenue Code of 1986 is amended by inserting after paragraph (2) the 
following new paragraph:
            ``(3) Portion of leaking underground storage tank trust 
        fund financing rate.--There are hereby appropriated to the 
        Highway Trust Fund amounts equivalent to one-third of the taxes 
        received in the Treasury under--
                    ``(A) section 4041(d) (relating to additional taxes 
                on motor fuels),
                    ``(B) section 4081 (relating to tax on gasoline, 
                diesel fuel, and kerosene) to the extent attributable 
                to the Leaking Underground Storage Tank Trust Fund 
                financing rate under such section, and
                    ``(C) section 4042 (relating to tax on fuel used in 
                commercial transportation on inland waterways) to the 
                extent attributable to the Leaking Underground Storage 
                Tank Trust Fund financing rate under such section.
        For purposes of this paragraph, there shall not be taken into 
        account the taxes imposed by sections 4041 and 4081 on diesel 
        fuel sold for use or used as fuel in a diesel-powered boat.''.
    (b) Conforming Amendments.--
            (1) Paragraphs (1), (2), and (3) of section 9508(b) of the 
        Internal Revenue Code of 1986 are each amended by inserting 
        ``two-thirds of the'' before ``taxes''.
            (2) Paragraph (4) of section 9503(b) of such Code is 
        amended by striking subparagraphs (A) and (B) and by 
        redesignating subparagraphs (C) and (D) as subparagraphs (A) 
        and (B), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxes received after the date of the enactment of this Act.

SEC. 303. ELIMINATION OF UNINTENDED APPLICATION OF CELLULOSIC BIOFUEL 
              PRODUCER CREDIT.

    (a) Claims for Cellulosic Biofuel Producer Credit.--The amendments 
made by section 1408(a) of the Health Care and Education Reconciliation 
Act of 2010 and section 2121(a) of the Small Business Jobs Act of 2010 
shall be applied to claims for credits under section 40(a) of the 
Internal Revenue Code of 1986 with respect to fuels sold or used before 
January 1, 2010, filed on or after February 3, 2012.
    (b) Treatment of Unused General Business Credits.--No claim for 
credit under section 38(a)(1) of the Internal Revenue Code of 1986 
which is attributable to a credit under section 40(a) of such Code for 
any fuel described in section 40(b)(6)(E)(iii) of such Code may be 
filed on or after February 3, 2012.
    (c) Transfer of Resulting Revenue to Highway Trust Fund.--
Subsection (b) of section 9503 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(7) Transfer of resulting revenue.--Out of money in the 
        Treasury not otherwise appropriated, there are hereby 
        appropriated amounts equivalent to the increase in revenues 
        received in the Treasury resulting from the provisions of, and 
        amendment made by, subsections (a) and (b) of section 303 of 
        the Highway Investment, Job Creation, and Economic Growth Act 
        of 2012.''.

SEC. 304. TRANSFER OF GAS GUZZLER TAXES TO HIGHWAY TRUST FUND.

    (a) In General.--Paragraph (1) of section 9503(b) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraphs (C), 
(D), and (E) as subparagraphs (D), (E), and (F), respectively, and by 
inserting after subparagraph (B) the following new subparagraph:
                    ``(B) section 4064 (relating to gas guzzler 
                tax),''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxes received after the date of the enactment of this Act.

SEC. 305. REVOCATION OR DENIAL OF PASSPORT IN CASE OF CERTAIN UNPAID 
              TAXES.

    (a) In General.--Subchapter D of chapter 75 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 7345. REVOCATION OR DENIAL OF PASSPORT IN CASE OF CERTAIN TAX 
              DELINQUENCIES.

    ``(a) In General.--If the Secretary receives certification by the 
Commissioner of Internal Revenue that any individual has a seriously 
delinquent tax debt in an amount in excess of $50,000, the Secretary 
shall transmit such certification to the Secretary of State for action 
with respect to denial, revocation, or limitation of a passport 
pursuant to section 4 of the Act entitled `An Act to regulate the issue 
and validity of passports, and for other purposes', approved July 3, 
1926 (22 U.S.C. 211a et seq.), commonly known as the `Passport Act of 
1926'.
    ``(b) Seriously Delinquent Tax Debt.--For purposes of this section, 
the term `seriously delinquent tax debt' means an outstanding debt 
under this title for which a notice of lien has been filed in public 
records pursuant to section 6323 or a notice of levy has been filed 
pursuant to section 6331, except that such term does not include--
            ``(1) a debt that is being paid in a timely manner pursuant 
        to an agreement under section 6159 or 7122, and
            ``(2) a debt with respect to which collection is suspended 
        because a collection due process hearing under section 6330, or 
        relief under subsection (b), (c), or (f) of section 6015, is 
        requested or pending.
    ``(c) Adjustment for Inflation.--In the case of a calendar year 
beginning after 2012, the dollar amount in subsection (a) shall be 
increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year, determined by 
        substituting `calendar year 2011' for `calendar year 1992' in 
        subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $1,000, such amount shall be rounded to the next highest 
multiple of $1,000.''.
    (b) Clerical Amendment.--The table of sections for subchapter D of 
chapter 75 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 7345. Revocation or denial of passport in case of certain tax 
                            delinquencies.''.
    (c) Authority for Information Sharing.--
            (1) In general.--Subsection (l) of section 6103 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(23) Disclosure of return information to department of 
        state for purposes of passport revocation under section 7345.--
                    ``(A) In general.--The Secretary shall, upon 
                receiving a certification described in section 7345, 
                disclose to the Secretary of State return information 
                with respect to a taxpayer who has a seriously 
                delinquent tax debt described in such section. Such 
                return information shall be limited to--
                            ``(i) the taxpayer identity information 
                        with respect to such taxpayer, and
                            ``(ii) the amount of such seriously 
                        delinquent tax debt.
                    ``(B) Restriction on disclosure.--Return 
                information disclosed under subparagraph (A) may be 
                used by officers and employees of the Department of 
                State for the purposes of, and to the extent necessary 
                in, carrying out the requirements of section 4 of the 
                Act entitled `An Act to regulate the issue and validity 
                of passports, and for other purposes', approved July 3, 
                1926 (22 U.S.C. 211a et seq.), commonly known as the 
                `Passport Act of 1926'.''.
            (2) Conforming amendment.--Paragraph (4) of section 6103(p) 
        of such Code is amended by striking ``or (22)'' each place it 
        appears in subparagraph (F)(ii) and in the matter preceding 
        subparagraph (A) and inserting ``(22), or (23)''.
    (d) Revocation Authorization.--The Act entitled ``An Act to 
regulate the issue and validity of passports, and for other purposes'', 
approved July 3, 1926 (22 U.S.C. 211a et seq.), commonly known as the 
``Passport Act of 1926'', is amended by adding at the end the 
following:

``SEC. 4. AUTHORITY TO DENY OR REVOKE PASSPORT.

    ``(a) Ineligibility.--
            ``(1) Issuance.--Except as provided under subsection (b), 
        upon receiving a certification described in section 7345 of the 
        Internal Revenue Code of 1986 from the Secretary of the 
        Treasury, the Secretary of State may not issue a passport or 
        passport card to any individual who has a seriously delinquent 
        tax debt described in such section.
            ``(2) Revocation.--The Secretary of State shall revoke a 
        passport or passport card previously issued to any individual 
        described in subparagraph (A).
    ``(b) Exceptions.--
            ``(1) Emergency and humanitarian situations.--
        Notwithstanding subsection (a), the Secretary of State may 
        issue a passport or passport card, in emergency circumstances 
        or for humanitarian reasons, to an individual described in 
        subsection (a)(1).
            ``(2) Limitation for return to united states.--
        Notwithstanding subsection (a)(2), the Secretary of State, 
        before revocation, may--
                    ``(A) limit a previously issued passport or 
                passport card only for return travel to the United 
                States; or
                    ``(B) issue a limited passport or passport card 
                that only permits return travel to the United 
                States.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2013.

SEC. 306. 100 PERCENT CONTINUOUS LEVY ON PAYMENTS TO MEDICARE PROVIDERS 
              AND SUPPLIERS.

    (a) In General.--Paragraph (3) of section 6331(h) of the Internal 
Revenue Code of 1986 is amended by striking the period at the end and 
inserting ``, or to a Medicare provider or supplier under title XVIII 
of the Social Security Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after the date of the enactment of this Act.

SEC. 307. TRANSFER OF AMOUNTS ATTRIBUTABLE TO CERTAIN DUTIES ON 
              IMPORTED VEHICLES INTO THE HIGHWAY TRUST FUND.

    Section 9503(b) of the Internal Revenue Code of 1986, as amended by 
this Act, is amended by adding at the end the following new paragraph:
            ``(8) Certain duties on imported vehicles.--There are 
        hereby appropriated to the Highway Trust Fund amounts 
        equivalent to the amounts received in the Treasury that are 
        attributable to duties collected on or after October 1, 2011, 
        and before October 1, 2016, on articles classified under 
        subheading 8703.22.00 or 8703.24.00 of the Harmonized Tariff 
        Schedule of the United States.''.

SEC. 308. TREATMENT OF SECURITIES OF A CONTROLLED CORPORATION EXCHANGED 
              FOR ASSETS IN CERTAIN REORGANIZATIONS.

    (a) In General.--Section 361 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) Special Rules for Transactions Involving Section 355 
Distributions.--In the case of a reorganization described in section 
368(a)(1)(D) with respect to which stock or securities of the 
corporation to which the assets are transferred are distributed in a 
transaction which qualifies under section 355--
            ``(1) this section shall be applied by substituting `stock 
        other than nonqualified preferred stock (as defined in section 
        351(g)(2))' for `stock or securities' in subsections (a) and 
        (b)(1), and
            ``(2) the first sentence of subsection (b)(3) shall apply 
        only to the extent that the sum of the money and the fair 
        market value of the other property transferred to such 
        creditors does not exceed the adjusted bases of such assets 
        transferred (reduced by the amount of the liabilities assumed 
        (within the meaning of section 357(c))).''.
    (b) Conforming Amendment.--Paragraph (3) of section 361(b) is 
amended by striking the last sentence.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to exchanges after 
        the date of the enactment of this Act.
            (2) Transition rule.--The amendments made by this section 
        shall not apply to any exchange pursuant to a transaction which 
        is--
                    (A) made pursuant to a written agreement which was 
                binding on February 6, 2012, and at all times 
                thereafter;
                    (B) described in a ruling request submitted to the 
                Internal Revenue Service on or before February 6, 2012; 
                or
                    (C) described on or before February 6, 2012, in a 
                public announcement or in a filing with the Securities 
                and Exchange Commission.

SEC. 309. INTERNAL REVENUE SERVICE LEVIES AND THRIFT SAVINGS PLAN 
              ACCOUNTS.

    Section 8437(e)(3) of title 5, United States Code, is amended by 
inserting ``, the enforcement of a Federal tax levy as provided in 
section 6331 of the Internal Revenue Code of 1986,'' after ``(42 U.S.C. 
659)''.

SEC. 310. MODIFICATIONS OF REQUIRED DISTRIBUTION RULES FOR PENSION 
              PLANS.

    (a) In General.--Section 401(a)(9)(B) of the Internal Revenue Code 
of 1986 is amended to read as follows:
                    ``(B) Required distributions where employee dies 
                before entire interest is distributed.--
                            ``(i) 5-year general rule.--A trust shall 
                        not constitute a qualified trust under this 
                        section unless the plan provides that, if an 
                        employee dies before the distribution of the 
                        employee's interest (whether or not such 
                        distribution has begun in accordance with 
                        subparagraph (A)), the entire interest of the 
                        employee will be distributed within 5 years 
                        after the death of such employee.
                            ``(ii) Exception for eligible designated 
                        beneficiaries.--If--
                                    ``(I) any portion of the employee's 
                                interest is payable to (or for the 
                                benefit of) an eligible designated 
                                beneficiary,
                                    ``(II) such portion will be 
                                distributed (in accordance with 
                                regulations) over the life of such 
                                eligible designated beneficiary (or 
                                over a period not extending beyond the 
                                life expectancy of such beneficiary), 
                                and
                                    ``(III) such distributions begin 
                                not later than 1 year after the date of 
                                the employee's death or such later date 
                                as the Secretary may by regulations 
                                prescribe,
                        then, for purposes of clause (i) and except as 
                        provided in clause (iv) or subparagraph 
                        (E)(iii), the portion referred to in subclause 
                        (I) shall be treated as distributed on the date 
                        on which such distributions begin.
                            ``(iii) Special rule for surviving spouse 
                        of employee.--If the eligible designated 
                        beneficiary referred to in clause (ii)(I) is 
                        the surviving spouse of the employee--
                                    ``(I) the date on which the 
                                distributions are required to begin 
                                under clause (ii)(III) shall not be 
                                earlier than the date on which the 
                                employee would have attained age 70 \1/
                                2\, and
                                    ``(II) if the surviving spouse dies 
                                before the distributions to such spouse 
                                begin, this subparagraph shall be 
                                applied as if the surviving spouse were 
                                the employee.
                            ``(iv) Rules upon death of eligible 
                        designated beneficiary.--If an eligible 
                        designated beneficiary dies before the portion 
                        of an employee's interest described in clause 
                        (ii) is entirely distributed, clause (ii) shall 
                        not apply to any beneficiary of such eligible 
                        designated beneficiary and the remainder of 
                        such portion shall be distributed within 5 
                        years after the death of such beneficiary.''.
    (b) Definition of Eligible Designated Beneficiary.--Section 
401(a)(9)(E) of such Code is amended to read as follows:
                    ``(E) Definitions and rules relating to designated 
                beneficiary.--For purposes of this paragraph--
                            ``(i) Designated beneficiary.--The term 
                        `designated beneficiary' means any individual 
                        designated as a beneficiary by the employee.
                            ``(ii) Eligible designated beneficiary.--
                        The term `eligible designated beneficiary' 
                        means, with respect to any employee, any 
                        designated beneficiary who, as of the date of 
                        death of the employee, is--
                                    ``(I) the surviving spouse of the 
                                employee,
                                    ``(II) subject to clause (iii), a 
                                child of the employee who has not 
                                reached majority (within the meaning of 
                                subparagraph (F)),
                                    ``(III) disabled (within the 
                                meaning of section 72(m)(7)),
                                    ``(IV) a chronically ill individual 
                                (within the meaning of section 
                                7702B(c)(2), except that the 
                                requirements of subparagraph (A)(i) 
                                thereof shall only be treated as met if 
                                there is a certification that, as of 
                                such date, the period of inability 
                                described in such subparagraph with 
                                respect to the individual is an 
                                indefinite one that is reasonably 
                                expected to be lengthy in nature), or
                                    ``(V) an individual not described 
                                in any of the preceding subparagraphs 
                                who is not more than 10 years younger 
                                than the employee.
                            ``(iii) Special rule for children.--Subject 
                        to subparagraph (F), an individual described in 
                        clause (ii)(II) shall cease to be an eligible 
                        designated beneficiary as of the date the 
                        individual reaches majority and the requirement 
                        of subparagraph (B)(i) shall not be treated as 
                        met with respect to any remaining portion of an 
                        employee's interest payable to the individual 
                        unless such portion is distributed within 5 
                        years after such date.''.
    (c) Required Beginning Date.--Section 401(a)(9)(C) of such Code is 
amended by adding at the end the following new clause:
                            ``(v) Employees becoming 5-percent owners 
                        after age 70\1/2\.--If an employee becomes a 5-
                        percent owner (as defined in section 416) with 
                        respect to a plan year ending in a calendar 
                        year after the calendar year in which the 
                        employee attains age 70\1/2\ \,\ then clause 
                        (i)(II) shall be applied by substituting the 
                        calendar year in which the employee became such 
                        an owner for the calendar year in which the 
                        employee retires.''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in this subsection, the 
        amendments made by this section shall apply to distributions 
        with respect to employees who die after December 31, 2012.
            (2) Required beginning date.--
                    (A) In general.--The amendment made by subsection 
                (c) shall apply to employees becoming a 5-percent owner 
                with respect to plan years ending in calendar years 
                beginning before, on, or after the date of the 
                enactment of this Act.
                    (B) Special rule.--If--
                            (i) an employee became a 5-percent owner 
                        with respect to a plan year ending in a 
                        calendar year which began before January 1, 
                        2012, and
                            (ii) the employee has not retired before 
                        calendar year 2013,
                such employee shall be treated as having become a 5-
                percent owner with respect to a plan year ending in 
                2012 for purposes of applying section 401(a)(9)(C)(v) 
                of the Internal Revenue Code of 1986 (as added by the 
                amendment made by subsection (c)).
            (3) Exception for certain beneficiaries.--If a designated 
        beneficiary of an employee who dies before January 1, 2013, 
        dies after December 31, 2012--
                    (A) the amendments made by this section shall apply 
                to any beneficiary of such designated beneficiary, and
                    (B) the designated beneficiary shall be treated as 
                an eligible designated beneficiary for purposes of 
                applying section 401(a)(9)(B)(iv) of such Code (as in 
                effect after the amendments made by this section).
            (4) Exception for certain existing annuity contracts.--
                    (A) In general.--The amendments made by this 
                section shall not apply to a qualified annuity which is 
                a binding annuity contract in effect on the date of the 
                enactment of this Act and at all times thereafter.
                    (B) Qualified annuity contract.--For purposes of 
                this paragraph, the term ``qualified annuity'' means, 
                with respect to an employee, an annuity--
                            (i) which is a commercial annuity (as 
                        defined in section 3405(e)(6) of such Code) or 
                        payable by a defined benefit plan,
                            (ii) under which the annuity payments are 
                        substantially equal periodic payments (not less 
                        frequently than annually) over the lives of 
                        such employee and a designated beneficiary (or 
                        over a period not extending beyond the life 
                        expectancy of such employee or the life 
                        expectancy of such employee and a designated 
                        beneficiary) in accordance with the regulations 
                        described in section 401(a)(9)(A)(ii) of such 
                        Code (as in effect before such amendments) and 
                        which meets the other requirements of this 
                        section 401(a)(9) of such Code (as so in 
                        effect) with respect to such payments, and
                            (iii) with respect to which--
                                    (I) annuity payments to the 
                                employee have begun before January 1, 
                                2013, and the employee has made an 
                                irrevocable election before such date 
                                as to the method and amount of the 
                                annuity payments to the employee or any 
                                designated beneficiaries, or
                                    (II) if subclause (I) does not 
                                apply, the employee has made an 
                                irrevocable election before the date of 
                                the enactment of this Act as to the 
                                method and amount of the annuity 
                                payments to the employee or any 
                                designated beneficiaries.

SEC. 311. DEPRECIATION AND AMORTIZATION RULES FOR HIGHWAY AND RELATED 
              PROPERTY SUBJECT TO LONG-TERM LEASES.

    (a) Accelerated Cost Recovery.--
            (1) In general.--Section 168(g)(1) of the Internal Revenue 
        Code of 1986 is amended by striking ``and'' at the end of 
        subparagraph (D), by redesignating subparagraph (E) as 
        subparagraph (F), and by inserting after subparagraph (D) the 
        following new subparagraph:
                    ``(E) any applicable leased highway property,''.
            (2) Recovery period.--The table contained in subparagraph 
        (C) of section 168(g)(2) of such Code is amended by 
        redesignating clause (iv) as clause (v) and by inserting after 
        clause (iii) the following new clause:

``(iv) Applicable leased highway property.  45 years.''.
 

            (3) Applicable leased highway property defined.--
                    (A) In general.--Section 168(g) of such Code is 
                amended by redesignating paragraph (7) as paragraph (8) 
                and by inserting after paragraph (6) the following new 
                paragraph:
            ``(7) Applicable leased highway property.--For purposes of 
        paragraph (1)(E)--
                    ``(A) In general.--The term `applicable leased 
                highway property' means property to which this section 
                otherwise applies which--
                            ``(i) is subject to an applicable lease, 
                        and
                            ``(ii) is placed in service before the date 
                        of such lease.
                    ``(B) Applicable lease.--The term `applicable 
                lease' means a lease or other arrangement--
                            ``(i) which is between the taxpayer and a 
                        State or political subdivision thereof, or any 
                        agency or instrumentality of either, and
                            ``(ii) under which the taxpayer--
                                    ``(I) leases a highway and 
                                associated improvements,
                                    ``(II) receives a right-of-way on 
                                the public lands underlying such 
                                highway and improvements, and
                                    ``(III) receives a grant of a 
                                franchise or other intangible right 
                                permitting the taxpayer to receive 
                                funds relating to the operation of such 
                                highway.''.
                    (B) Conforming amendment.--Subparagraph (F) of 
                section 168(g)(1) (as redesignated by subsection 
                (a)(1)) is amended by striking ``paragraph (7)'' and 
                inserting ``paragraph (8)''.
    (b) Amortization of Intangibles.--Section 197(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(11) Intangibles relating to applicable leased highway 
        property.--In the case of any amortizable section 197 
        intangible property which is acquired in connection with an 
        applicable lease (as defined in section 168(g)(7)(B)), the 
        amortization period under this section shall not be less than 
        the term of the applicable lease. For purposes of the preceding 
        sentence, rules similar to the rules of section 168(i)(3)(A) 
        shall apply in determining the term of the applicable lease.''.
    (c) No Private Activity Bond Financing of Applicable Leased Highway 
Property.--Section 147(e) of the Internal Revenue Code of 1986 is 
amended by inserting ``, or to finance any applicable leased highway 
property (as defined in section 168(g)(7)(A))'' after ``premises''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to leases entered 
        into after the date of the enactment of this Act.
            (2) No private activity bond financing.--The amendment made 
        by subsection (c) shall apply to bonds issued after the date of 
        the enactment of this Act.

SEC. 312. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS TO RETIREE 
              HEALTH ACCOUNTS.

    (a) In General.--Paragraph (5) of section 420(b) of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and 
inserting ``December 31, 2021''.
    (b) Conforming ERISA Amendments.--
            (1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the 
        Employee Retirement Income Security Act of 1974 are each 
        amended by striking ``Pension Protection Act of 2006'' and 
        inserting ``Highway Investment, Job Creation, and Economic 
        Growth Act of 2012''.
            (2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) 
        is amended by striking ``January 1, 2014'' and inserting 
        ``January 1, 2022''.
    (c) Effective Date.--The amendments made by this Act shall take 
effect on the date of the enactment of this Act.

SEC. 313. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE GROUP TERM LIFE 
              INSURANCE ACCOUNTS.

    (a) In General.--Subsection (a) of section 420 of the Internal 
Revenue Code of 1986 is amended by inserting ``, or an applicable life 
insurance account,'' after ``health benefits account''.
    (b) Applicable Life Insurance Account Defined.--
            (1) In general.--Subsection (e) of section 420 of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        paragraphs (4) and (5) as paragraphs (5) and (6), respectively, 
        and by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Applicable life insurance account.--The term 
        `applicable life insurance account' means a separate account 
        established and maintained for amounts transferred under this 
        section for qualified current retiree liabilities based on 
        premiums for applicable life insurance benefits.''.
            (2) Applicable life insurance benefits defined.--Paragraph 
        (1) of section 420(e) of such Code is amended by redesignating 
        subparagraph (D) as subparagraph (E) and by inserting after 
        subparagraph (C) the following new subparagraph:
                    ``(D) Applicable life insurance benefits.--The term 
                `applicable life insurance benefits' means group-term 
                life insurance coverage provided to retired employees 
                who, immediately before the qualified transfer, are 
                entitled to receive such coverage by reason of 
                retirement and who are entitled to pension benefits 
                under the plan, but only to the extent that such 
                coverage is provided under a policy for retired 
                employees and the cost of such coverage is excludable 
                from the retired employee's gross income under section 
                79.''.
            (3) Collectively bargained life insurance benefits 
        defined.--
                    (A) In general.--Paragraph (6) of section 420(f) of 
                such Code is amended by redesignating subparagraph (D) 
                as subparagraph (E) and by inserting after subparagraph 
                (C) the following new subparagraph:
                    ``(D) Collectively bargained life insurance 
                benefits.--The term `collectively bargained life 
                insurance benefits' means, with respect to any 
                collectively bargained transfer--
                            ``(i) applicable life insurance benefits 
                        which are provided to retired employees who, 
                        immediately before the transfer, are entitled 
                        to receive such benefits by reason of 
                        retirement, and
                            ``(ii) if specified by the provisions of 
                        the collective bargaining agreement governing 
                        the transfer, applicable life insurance 
                        benefits which will be provided at retirement 
                        to employees who are not retired employees at 
                        the time of the transfer.''.
                    (B) Conforming amendments.--
                            (i) Clause (i) of section 420(e)(1)(C) of 
                        such Code is amended by striking ``upon 
                        retirement'' and inserting ``by reason of 
                        retirement''.
                            (ii) Subparagraph (C) of section 420(f)(6) 
                        of such Code is amended--
                                    (I) by striking ``which are 
                                provided to'' in the matter preceding 
                                clause (i),
                                    (II) by inserting ``which are 
                                provided to'' before ``retired 
                                employees'' in clause (i),
                                    (III) by striking ``upon 
                                retirement'' in clause (i) and 
                                inserting ``by reason of retirement'', 
                                and
                                    (IV) by striking ``active employees 
                                who, following their retirement,'' and 
                                inserting ``which will be provided at 
                                retirement to employees who are not 
                                retired employees at the time of the 
                                transfer and who''.
    (c) Maintenance of Effort.--
            (1) In general.--Subparagraph (A) of section 420(c)(3) of 
        the Internal Revenue Code of 1986 is amended by inserting ``, 
        and each group-term life insurance plan under which applicable 
        life insurance benefits are provided,'' after ``health benefits 
        are provided''.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 420(c)(3) of such 
                Code is amended--
                            (i) by redesignating subclauses (I) and 
                        (II) of clause (i) as subclauses (II) and (III) 
                        of such clause, respectively, and by inserting 
                        before subclause (II) of such clause, as so 
                        redesignated, the following new subclause:
                                    ``(I) separately with respect to 
                                applicable health benefits and 
                                applicable life insurance benefits,'', 
                                and
                            (ii) by striking ``for applicable health 
                        benefits'' and all that follows in clause (ii) 
                        and inserting ``was provided during such 
                        taxable year for the benefits with respect to 
                        which the determination under clause (i) is 
                        made.''.
                    (B) Subparagraph (C) of section 420(c)(3) of such 
                Code is amended--
                            (i) by inserting ``for applicable health 
                        benefits'' after ``applied separately'', and
                            (ii) by inserting ``, and separately for 
                        applicable life insurance benefits with respect 
                        to individuals age 65 or older at any time 
                        during the taxable year and with respect to 
                        individuals under age 65 during the taxable 
                        year'' before the period.
                    (C) Subparagraph (E) of section 420(c)(3) of such 
                Code is amended--
                            (i) in clause (i), by inserting ``or 
                        retiree life insurance coverage, as the case 
                        may be,'' after ``retiree health coverage'', 
                        and
                            (ii) in clause (ii), by inserting ``for 
                        retiree health coverage'' after ``cost 
                        reductions'' in the heading thereof, and
                            (iii) in clause (ii)(II), by inserting 
                        ``with respect to applicable health benefits'' 
                        after ``liabilities of the employer''.
                    (D) Paragraph (2) of section 420(f) of such Code is 
                amended by striking ``collectively bargained retiree 
                health liabilities'' each place it occurs and inserting 
                ``collectively bargained retiree liabilities''.
                    (E) Clause (i) of section 420(f)(2)(D) of such Code 
                is amended--
                            (i) by inserting ``, and each group-term 
                        life insurance plan or arrangement under which 
                        applicable life insurance benefits are 
                        provided,'' in subclause (I) after ``applicable 
                        health benefits are provided'',
                            (ii) by inserting ``or applicable life 
                        insurance benefits, as the case may be,'' in 
                        subclause (I) after ``provides applicable 
                        health benefits'',
                            (iii) by striking ``group health'' in 
                        subclause (II), and
                            (iv) by inserting ``or collectively 
                        bargained life insurance benefits'' in 
                        subclause (II) after ``collectively bargained 
                        health benefits''.
                    (F) Clause (ii) of section 420(f)(2)(D) of such 
                Code is amended--
                            (i) by inserting ``with respect to 
                        applicable health benefits or applicable life 
                        insurance benefits'' after ``requirements of 
                        subsection (c)(3)'', and
                            (ii) by adding at the end the following: 
                        ``Such election may be made separately with 
                        respect to applicable health benefits and 
                        applicable life insurance benefits. In the case 
                        of an election with respect to applicable life 
                        insurance benefits, the first sentence of this 
                        clause shall be applied as if subsection (c)(3) 
                        as in effect before the amendments made by such 
                        Act applied to such benefits.''
                    (G) Clause (iii) of section 420(f)(2)(D) of such 
                Code is amended--
                            (i) by striking ``retiree'' each place it 
                        occurs, and
                            (ii) by inserting ``, collectively 
                        bargained life insurance benefits, or both, as 
                        the case may be,'' after ``health benefits'' 
                        each place it occurs.
    (d) Coordination With Section 79.--Section 79 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(f) Exception for Life Insurance Purchased in Connection With 
Qualified Transfer of Excess Pension Assets.--Subsection (b)(3) and 
section 72(m)(3) shall not apply in the case of any cost paid (whether 
directly or indirectly) with assets held in an applicable life 
insurance account (as defined in section 420(e)(4)) under a defined 
benefit plan.''.
    (e) Conforming Amendments.--
            (1) Section 420 of the Internal Revenue Code of 1986 is 
        amended by striking ``qualified current retiree health 
        liabilities'' each place it appears and inserting ``qualified 
        current retiree liabilities''.
            (2) Section 420 of such Code is amended by inserting ``, or 
        an applicable life insurance account,'' after ``a health 
        benefits account'' each place it appears in subsection 
        (b)(1)(A), subparagraphs (A), (B)(i), and (C) of subsection 
        (c)(1), subsection (d)(1)(A), and subsection (f)(2)(E)(ii).
            (3) Section 420(b) of such Code is amended--
                    (A) by adding the following at the end of paragraph 
                (2)(A): ``If there is a transfer from a defined benefit 
                plan to both a health benefits account and an 
                applicable life insurance account during any taxable 
                year, such transfers shall be treated as 1 transfer for 
                purposes of this paragraph.'', and
                    (B) by inserting ``to an account'' after ``may be 
                transferred'' in paragraph (3).
            (4) The heading for section 420(c)(1)(B) of such Code is 
        amended by inserting ``or life insurance'' after ``health 
        benefits''.
            (5) Paragraph (1) of section 420(e) of such Code is 
        amended--
                    (A) by inserting ``and applicable life insurance 
                benefits'' in subparagraph (A) after ``applicable 
                health benefits'', and
                    (B) by striking ``health'' in the heading thereof.
            (6) Subparagraph (B) of section 420(e)(1) of such Code is 
        amended--
                    (A) in the matter preceding clause (i), by 
                inserting ``(determined separately for applicable 
                health benefits and applicable life insurance 
                benefits)'' after ``shall be reduced by the amount'',
                    (B) in clause (i), by inserting ``or applicable 
                life insurance accounts'' after ``health benefit 
                accounts'', and
                    (C) in clause (i), by striking ``qualified current 
                retiree health liability'' and inserting ``qualified 
                current retiree liability''.
            (7) The heading for subsection (f) of section 420 of such 
        Code is amended by striking ``Health'' each place it occurs.
            (8) Subclause (II) of section 420(f)(2)(B)(ii) of such Code 
        is amended by inserting ``or applicable life insurance account, 
        as the case may be,'' after ``health benefits account''.
            (9) Subclause (III) of section 420(f)(2)(E)(i) of such Code 
        is amended--
                    (A) by inserting ``defined benefit'' before ``plan 
                maintained by an employer'', and
                    (B) by inserting ``health'' before ``benefit plans 
                maintained by the employer''.
            (10) Paragraphs (4) and (6) of section 420(f) of such Code 
        are each amended by striking ``collectively bargained retiree 
        health liabilities'' each place it occurs and inserting 
        ``collectively bargained retiree liabilities''.
            (11) Subparagraph (A) of section 420(f)(6) of such Code is 
        amended--
                    (A) in clauses (i) and (ii), by inserting ``, in 
                the case of a transfer to a health benefits account,'' 
                before ``his covered spouse and dependents'', and
                    (B) in clause (ii), by striking ``health plan'' and 
                inserting ``plan''.
            (12) Subparagraph (B) of section 420(f)(6) of such Code is 
        amended--
                    (A) in clause (i), by inserting ``, and 
                collectively bargained life insurance benefits,'' after 
                ``collectively bargained health benefits'',
                    (B) in clause (ii)--
                            (i) by adding at the end the following: 
                        ``The preceding sentence shall be applied 
                        separately for collectively bargained health 
                        benefits and collectively bargained life 
                        insurance benefits.'', and
                            (ii) by inserting ``, applicable life 
                        insurance accounts,'' after ``health benefit 
                        accounts'', and
                    (C) by striking ``health'' in the heading thereof.
            (13) Subparagraph (E) of section 420(f)(6) of such Code, as 
        redesignated by subsection (b), is amended--
                    (A) by striking ``bargained health'' and inserting 
                ``bargained'',
                    (B) by inserting ``, or a group-term life insurance 
                plan or arrangement for retired employees,'' after 
                ``dependents'' , and
                    (C) by striking ``health'' in the heading thereof.
            (14) Section 101(e) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1021(e)) is amended--
                    (A) in paragraphs (1) and (2), by inserting ``or 
                applicable life insurance account'' after ``health 
                benefits account'' each place it appears, and
                    (B) in paragraph (1), by inserting ``or applicable 
                life insurance benefit liabilities'' after ``health 
                benefits liabilities''.
    (f) Technical Correction.--Clause (iii) of section 420(f)(6)(B) is 
amended by striking ``416(I)(1)'' and inserting ``416(i)(1)''.
    (g) Repeal of Deadwood.--
            (1) Subparagraph (A) of section 420(b)(1) of the Internal 
        Revenue Code of 1986 is amended by striking ``in a taxable year 
        beginning after December 31, 1990''.
            (2) Subsection (b) of section 420 of such Code is amended 
        by striking paragraph (4) and by redesignating paragraph (5), 
        as amended by this Act, as paragraph (4).
            (3) Paragraph (2) of section 420(b) of such Code, as 
        amended by this section, is amended--
                    (A) by striking subparagraph (B), and
                    (B) by striking ``per year.--'' and all that 
                follows through ``No more than'' and inserting ``per 
                year.--No more than''.
            (4) Paragraph (2) of section 420(c) of such Code is 
        amended--
                    (A) by striking subparagraph (B),
                    (B) by moving subparagraph (A) two ems to the left, 
                and
                    (C) by striking ``before transfer.--'' and all that 
                follows through ``The requirements of this paragraph'' 
                and inserting the following: ``before transfer.--The 
                requirements of this paragraph''.
            (5) Paragraph (2) of section 420(d) of such Code is amended 
        by striking ``after December 31, 1990''.
    (h) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to transfers made after the date of the enactment of this 
        Act.
            (2) Conforming amendments relating to pension protection 
        act.--The amendments made by subsections (b)(3)(B) and (f) 
        shall take effect as if included in the amendments made by 
        section 841(a) of the Pension Protection Act of 2006.
                                                       Calendar No. 327

112th CONGRESS

  2d Session

                                S. 2132

                          [Report No. 112-152]

_______________________________________________________________________

                                 A BILL

To amend the Internal Revenue Code of 1986 to provide for the extension 
   of highway-related taxes and trust fund expenditures, to provide 
         revenues for highway programs, and for other purposes.

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                           February 27, 2012

                 Read twice and placed on the calendar
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