I 

112TH CONGRESS 

1ST SESSION H. R. 206 

To amend the Internal Revenue Code of 1986 to prevent pending tax 

increases, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2011 

Mr. NEUGEBAUER (for himself, Mr. CHAFFETZ, Mr. KING of Iowa, Mr. GARRETT, Mr. MCCAUL, Mr. BARTON of Texas, Mr. BURTON of Indiana, Mr. 

PAUL, Mr. LAMBORN, Ms. FOXX, Mr. BARTLETT, Mr. MCKINLEY, Mrs. 

MCMORRIS RODGERS, Mr. BURGESS, Mr. STEARNS, Mr. COFFMAN of 

Colorado, Mr. SIMPSON, Mr. BROUN of Georgia, Mr. MCKEON, Mr. MILLER of Florida, Mr. LATTA, Mr. BISHOP of Utah, Mr. POE of Texas, Mr. 

CRAWFORD, and Mr. MARCHANT) introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to prevent 

pending tax increases, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. EGTRRA, JGTRRA, AND CERTAIN OTHER TAX 

4 RELIEF MADE PERMANENT. 

5 (a) ECONOMIC GROWTH AND TAX RELIEF REC6 ONCILIATION ACT OF 2001.—Title IX of the Economic 


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1 Growth and Tax Relief Reconciliation Act of 2001 is here2 by repealed. 

3 (b) INCOME TAX RATES ON DIVIDENDS AND NET

4 CAPITAL GAIN.—Section 303 of the Jobs and Growth Tax 

5 Relief Reconciliation Act of 2003 is hereby repealed. 

6 (c) DEDUCTION FOR STATE AND LOCAL SALES

7 TAXES.—Paragraph (5) of section 164(b) of the Internal 

8 Revenue Code of 1986 is amended by striking subpara9 graph (I). 

10 (d) DEDUCTION FOR TUITION AND RELATED EX11 PENSES.—Section 222 of such Code is amended by strik12 ing subsection (e). 

13 (e) INCREASED EXPENSING FOR SMALL BUSI14 NESS.— 

15 (1) DOLLAR LIMITATION.—Paragraph (1) of 

16 section 179(b) of such Code is amended by striking 

17 subparagraphs (C) and (D) and inserting the fol18 lowing new subparagraph: 

19 ‘‘(C) $125,000 in the case of taxable years 

20 beginning after 2011.’’. 

21 (2) INCREASE IN QUALIFYING INVESTMENT AT

22 WHICH PHASEOUT BEGINS.—Paragraph (2) of sec23 tion 179(b) of such Code is amended by striking 

24 subparagraphs (C) and (D) and inserting the fol25 lowing new subparagraph: 


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1 ‘‘(C) $500,000 in the case of taxable years 

2 beginning after 2011.’’. 

3 (3) INFLATION ADJUSTMENTS.—Paragraph (6) 

4 of section 179 of such Code is amended to read as 

5 follows: 

6 ‘‘(6) INFLATION ADJUSTMENTS.— 

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

8 taxable year beginning in a calendar year after 

9 2012, the $125,000 and $500,000 amounts in 

10 paragraphs (1)(C) and (2)(C) shall each be in11 creased by an amount equal to— 

12 ‘‘(i) such dollar amount, multiplied by 

13 ‘‘(ii) the cost-of-living adjustment de14 termined under section 1(f)(3) for the cal15 endar year in which the taxable year be16 gins, by substituting ‘calendar year 2011’ 

17 for ‘calendar year 1992’ in subparagraph 

18 (B) thereof. 

19 ‘‘(B) ROUNDING.— 

20 ‘‘(i) DOLLAR LIMITATION.—If the 

21 amount in paragraph (1)(C), as increased 

22 under subparagraph (A), is not a multiple 

23 of $1,000, such amount shall be rounded 

24 to the nearest multiple of $1,000. 


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1 ‘‘(ii) PHASEOUT AMOUNT.—If the 

2 amount in paragraph (2)(C), as increased 

3 under subparagraph (A), is not a multiple 

4 of $10,000, such amount shall be rounded 

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

6 (4) REVOCATION OF ELECTION.—Paragraph 

7 (2) of section 179(c) of such Code (relating to elec8 tion irrevocable) is amended by striking ‘‘and before 

9 2013’’. 

10 (5) COMPUTER SOFTWARE.—Clause (ii) of sec11 tion 179(d)(1)(A) of such Code is amended by strik12 ing ‘‘and before 2012’’. 

13 (f) EFFECTIVE DATE.—The amendments made by 

14 this section shall take effect on the date of the enactment 

15 of this Act. 

Æ 


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