II 

Calendar No. 198 

114TH CONGRESS 

1ST SESSION S. 1946 

[Report No. 114–118] 

To amend the Internal Revenue Code of 1986 to extend certain expiring 

provisions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 5, 2015 

Mr. HATCH, 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 extend 

certain expiring provisions, 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. SHORT TITLE, ETC. 

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

5 ‘‘Tax Relief Extension Act of 2015’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 


smartinez on DSK4TPTVN1PROD with BILLS
2 

•S 1946 PCS

1 to, or repeal of, a section or other provision, the reference 

2 shall be considered to be made to a section or other provi3 sion of the Internal Revenue Code of 1986. 

4 (c) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Sense of the Senate. 

TITLE I—PROVISIONS THAT EXPIRED IN 2014 

Subtitle A—Individual Tax Extenders 

Sec. 101. Extension and modification of deduction for certain expenses of elementary and secondary school teachers. 

Sec. 102. Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness. 

Sec. 103. Extension of parity and modification of exclusion from income for 

employer-provided mass transit and parking benefits. 

Sec. 104. Extension of mortgage insurance premiums treated as qualified residence interest. 

Sec. 105. Extension of deduction of State and local general sales taxes. 

Sec. 106. Extension of special rule for contributions of capital gain real property made for conservation purposes. 

Sec. 107. Extension of above-the-line deduction for qualified tuition and related 

expenses. 

Sec. 108. Extension of tax-free distributions from individual retirement plans 

for charitable purposes. 

Subtitle B—Business Tax Extenders 

Sec. 111. Extension and modification of research credit. 

Sec. 112. Extension and modification of temporary minimum low-income housing tax credit rate for non-federally subsidized buildings. 

Sec. 113. Extension of military housing allowance exclusion for determining 

whether a tenant in certain counties is low-income. 

Sec. 114. Extension of Indian employment tax credit. 

Sec. 115. Extension and modification of new markets tax credit. 

Sec. 116. Extension and modification of railroad track maintenance credit. 

Sec. 117. Extension of mine rescue team training credit. 

Sec. 118. Extension and modification of employer wage credit for employees 

who are active duty members of the uniformed services. 

Sec. 119. Extension and modification of work opportunity tax credit. 

Sec. 120. Extension and modification of qualified zone academy bonds. 

Sec. 121. Extension of classification of certain race horses as 3-year property. 

Sec. 122. Extension of 15-year straight-line cost recovery for qualified leasehold 

improvements, qualified restaurant buildings and improvements, and qualified retail improvements. 

Sec. 123. Extension of 7-year recovery period for motorsports entertainment 

complexes. 


smartinez on DSK4TPTVN1PROD with BILLS
3 

•S 1946 PCS

Sec. 124. Extension and modification of accelerated depreciation for business 

property on an Indian reservation. 

Sec. 125. Extension of bonus depreciation. 

Sec. 126. Extension of enhanced charitable deduction for contributions of food 

inventory. 

Sec. 127. Extension and modification of increased expensing limitations and 

treatment of certain real property as section 179 property. 

Sec. 128. Extension of election to expense mine safety equipment. 

Sec. 129. Extension of special expensing rules for certain film and television 

productions; special expensing for live theatrical productions. 

Sec. 130. Extension of deduction allowable with respect to income attributable 

to domestic production activities in Puerto Rico. 

Sec. 131. Extension of modification of tax treatment of certain payments to 

controlling exempt organizations. 

Sec. 132. Extension of treatment of certain dividends of regulated investment 

companies. 

Sec. 133. Extension of RIC qualified investment entity treatment under 

FIRPTA. 

Sec. 134. Extension of subpart F exception for active financing income. 

Sec. 135. Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding 

company rules. 

Sec. 136. Extension of temporary exclusion of 100 percent of gain on certain 

small business stock. 

Sec. 137. Extension of basis adjustment to stock of S corporations making 

charitable contributions of property. 

Sec. 138. Extension of reduction in S-corporation recognition period for builtin gains tax. 

Sec. 139. Extension and modification of empowerment zone tax incentives. 

Sec. 140. Extension of temporary increase in limit on cover over of rum excise 

taxes to Puerto Rico and the Virgin Islands. 

Sec. 141. Extension of American Samoa economic development credit. 

Subtitle C—Energy Tax Extenders 

Sec. 151. Extension and modification of credit for nonbusiness energy property. 

Sec. 152. Extension of credit for new qualified fuel cell motor vehicles. 

Sec. 153. Extension of credit for alternative fuel vehicle refueling property. 

Sec. 154. Extension of second generation biofuel producer credit. 

Sec. 155. Extension and reform of biodiesel tax incentives. 

Sec. 156. Extension of production credit for Indian coal facilities placed in service before 2009. 

Sec. 157. Extension of credits with respect to facilities producing energy from 

certain renewable resources. 

Sec. 158. Extension of credit for energy-efficient new homes. 

Sec. 159. Extension of special allowance for second generation biofuel plant 

property. 

Sec. 160. Extension and modification of energy efficient commercial buildings 

deduction. 

Sec. 161. Extension of special rule for sales or dispositions to implement FERC 

or State electric restructuring policy for qualified electric utilities. 

Sec. 162. Extension of excise tax credits relating to alternative fuels. 

TITLE II—PROVISION THAT EXPIRED IN 2013 


smartinez on DSK4TPTVN1PROD with BILLS
4 

•S 1946 PCS

Sec. 201. Extension of credit for 2-wheeled plug-in electric vehicles. 

TITLE III—REVENUE PROVISIONS 

Sec. 301. Exclusion from gross income of certain clean coal power grants to 

non-corporate taxpayers. 

Sec. 302. Treatment of certain persons as employers with respect to motion picture projects. 

Sec. 303. Equalization of excise tax and credits with respect to liquefied petroleum gas and liquefied natural gas. 

Sec. 304. Additional information on returns relating to mortgage interest. 

TITLE IV—BUDGETARY EFFECTS 

Sec. 401. Budgetary effects. 

1 SEC. 2. SENSE OF THE SENATE. 

2 It is the sense of the Senate that— 

3 (1) Congress should pursue a process of com4 prehensive tax reform; 

5 (2) Congress should endeavor, as part of such 

6 tax reform process, to eliminate temporary provi7 sions from the Internal Revenue Code of 1986 by 

8 making permanent those provisions that merit per9 manency and allowing others to expire; and 

10 (3) a major focus of such tax reform process 

11 should be fostering economic growth and lowering 

12 tax rates by broadening the tax base. 


smartinez on DSK4TPTVN1PROD with BILLS
5 

•S 1946 PCS

1 TITLE I—PROVISIONS THAT 

2 EXPIRED IN 2014 

3 Subtitle A—Individual Tax 

4 Extenders 

5 SEC. 101. EXTENSION AND MODIFICATION OF DEDUCTION 

6 FOR CERTAIN EXPENSES OF ELEMENTARY 

7 AND SECONDARY SCHOOL TEACHERS. 

8 (a) IN GENERAL.—Subparagraph (D) of section 

9 62(a)(2) is amended by striking ‘‘or 2014’’ and inserting 

10 ‘‘2014, 2015, or 2016’’. 

11 (b) ADJUSTMENT FOR INFLATION.—Subparagraph 

12 (D) of section 62(a)(2), as amended by subsection (a), is 

13 amended— 

14 (1) by striking ‘‘TEACHERS.—In the case of’’ 

15 and inserting ‘‘TEACHERS.— 

16 ‘‘(i) IN GENERAL.—In the case of’’, 

17 and 

18 (2) by adding at the end the following new 

19 clause: 

20 ‘‘(ii) ADJUSTMENT FOR INFLATION.— 

21 In the case of any taxable year beginning 

22 after 2014, the $250 amount in clause (i) 

23 shall be increased by an amount equal to— 

24 ‘‘(I) such dollar amount, multi25 plied by 


smartinez on DSK4TPTVN1PROD with BILLS
6 

•S 1946 PCS

1 ‘‘(II) the cost-of-living adjust2 ment determined under section 1(f)(3) 

3 for the calendar year in which the tax4 able year begins, by substituting ‘cal5 endar year 2013’ for ‘calendar year 

6 1992’ in subparagraph (B) thereof. 

7 If any amount as increased under the pre8 ceding sentence is not a multiple of $25, 

9 such amount shall be rounded to the near10 est multiple of $25.’’. 

11 (c) INCLUSION OF PROFESSIONAL DEVELOPMENT

12 EXPENSES.—Clause (i) of section 62(a)(2)(D), as amend13 ed by subsections (a) and (b), is amended by striking the 

14 period at the end and inserting ‘‘, and in connection with 

15 professional development activities of such educator.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2014. 

19 SEC. 102. EXTENSION AND MODIFICATION OF EXCLUSION 

20 FROM GROSS INCOME OF DISCHARGE OF 

21 QUALIFIED PRINCIPAL RESIDENCE INDEBT22 EDNESS. 

23 (a) EXTENSION.—Subparagraph (E) of section 

24 108(a)(1) is amended by striking ‘‘January 1, 2015’’ and 

25 inserting ‘‘January 1, 2017’’. 


smartinez on DSK4TPTVN1PROD with BILLS
7 

•S 1946 PCS

1 (b) MODIFICATION.—Subparagraph (E) of section 

2 108(a)(1), as amended by subsection (a), is amended by 

3 striking ‘‘discharged before’’ and all that follows and in4 serting ‘‘discharged— 

5 ‘‘(i) before January 1, 2017, or 

6 ‘‘(ii) subject to an arrangement that 

7 is entered into and evidenced in writing be8 fore January 1, 2017.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to discharges of indebtedness after 

11 December 31, 2014. 

12 SEC. 103. EXTENSION OF PARITY AND MODIFICATION OF 

13 EXCLUSION FROM INCOME FOR EMPLOYER14 PROVIDED MASS TRANSIT AND PARKING 

15 BENEFITS. 

16 (a) EXTENSION.— 

17 (1) IN GENERAL.—Paragraph (2) of section 

18 132(f) is amended by striking ‘‘January 1, 2015’’ 

19 and inserting ‘‘January 1, 2017’’. 

20 (2) EFFECTIVE DATE.—The amendment made 

21 by this subsection shall apply to months after De22 cember 31, 2014. 

23 (b) USE OF A BIKE SHARE PROGRAM AS A QUALI24 FIED TRANSPORTATION FRINGE.— 


smartinez on DSK4TPTVN1PROD with BILLS
8 

•S 1946 PCS

1 (1) IN GENERAL.—Section 132(f)(5)(F) is 

2 amended— 

3 (A) in clause (i), by striking ‘‘repair, and 

4 storage, if such bicycle’’ and inserting ‘‘repair, 

5 and storage (or use of a bike sharing program, 

6 in the case of taxable years beginning before 

7 January 1, 2017), if such bicycle or bike shar8 ing program’’, and 

9 (B) in clause (iii)(I), by inserting ‘‘or bike 

10 sharing program’’ after ‘‘bicycle’’. 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to months after De13 cember 31, 2014. 

14 SEC. 104. EXTENSION OF MORTGAGE INSURANCE PRE15 MIUMS TREATED AS QUALIFIED RESIDENCE 

16 INTEREST. 

17 (a) IN GENERAL.—Subclause (I) of section 

18 163(h)(3)(E)(iv) is amended by striking ‘‘December 31, 

19 2014’’ and inserting ‘‘December 31, 2016’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to amounts paid or accrued after 

22 December 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
9 

•S 1946 PCS

1 SEC. 105. EXTENSION OF DEDUCTION OF STATE AND LOCAL 

2 GENERAL SALES TAXES. 

3 (a) IN GENERAL.—Subparagraph (I) of section 

4 164(b)(5) is amended by striking ‘‘January 1, 2015’’ and 

5 inserting ‘‘January 1, 2017’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2014. 

9 SEC. 106. EXTENSION OF SPECIAL RULE FOR CONTRIBU10 TIONS OF CAPITAL GAIN REAL PROPERTY 

11 MADE FOR CONSERVATION PURPOSES. 

12 (a) IN GENERAL.—Clause (vi) of section 

13 170(b)(1)(E) is amended by striking ‘‘December 31, 

14 2014’’ and inserting ‘‘December 31, 2016’’. 

15 (b) CONTRIBUTIONS BY CERTAIN CORPORATE FARM16 ERS AND RANCHERS.—Clause (iii) of section 170(b)(2)(B) 

17 is amended by striking ‘‘December 31, 2014’’ and insert18 ing ‘‘December 31, 2016’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to contributions made in taxable 

21 years beginning after December 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
10 

•S 1946 PCS

1 SEC. 107. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 

2 QUALIFIED TUITION AND RELATED EX3 PENSES. 

4 (a) IN GENERAL.—Subsection (e) of section 222 is 

5 amended by striking ‘‘December 31, 2014’’ and inserting 

6 ‘‘December 31, 2016’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2014. 

10 SEC. 108. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM 

11 INDIVIDUAL RETIREMENT PLANS FOR CHARI12 TABLE PURPOSES. 

13 (a) IN GENERAL.—Subparagraph (F) of section 

14 408(d)(8) is amended by striking ‘‘December 31, 2014’’ 

15 and inserting ‘‘December 31, 2016’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to distributions made in taxable 

18 years beginning after December 31, 2014. 

19 Subtitle B—Business Tax 

20 Extenders 

21 SEC. 111. EXTENSION AND MODIFICATION OF RESEARCH 

22 CREDIT. 

23 (a) EXTENSION.— 

24 (1) IN GENERAL.—Paragraph (1) of section 

25 41(h) is amended by striking ‘‘December 31, 2014’’ 

26 and inserting ‘‘December 31, 2016’’. 


smartinez on DSK4TPTVN1PROD with BILLS
11 

•S 1946 PCS

1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to amounts paid or in3 curred after December 31, 2014. 

4 (b) TREATMENT OF RESEARCH CREDIT FOR CER5 TAIN STARTUP COMPANIES.— 

6 (1) IN GENERAL.—Section 41 is amended by 

7 adding at the end the following new subsection: 

8 ‘‘(i) TREATMENT OF CREDIT FOR QUALIFIED SMALL

9 BUSINESSES.— 

10 ‘‘(1) IN GENERAL.—At the election of a quali11 fied small business for any taxable year, section 

12 3111(f) shall apply to the payroll tax credit portion 

13 of the credit otherwise determined under subsection 

14 (a) for the taxable year and such portion shall not 

15 be treated (other than for purposes of section 280C) 

16 as a credit determined under subsection (a). 

17 ‘‘(2) PAYROLL TAX CREDIT PORTION.—For 

18 purposes of this subsection, the payroll tax credit 

19 portion of the credit determined under subsection 

20 (a) with respect to any qualified small business for 

21 any taxable year is the least of— 

22 ‘‘(A) the amount specified in the election 

23 made under this subsection, 


smartinez on DSK4TPTVN1PROD with BILLS
12 

•S 1946 PCS

1 ‘‘(B) the credit determined under sub2 section (a) for the taxable year (determined be3 fore the application of this subsection), or 

4 ‘‘(C) in the case of a qualified small busi5 ness other than a partnership or S corporation, 

6 the amount of the business credit carryforward 

7 under section 39 carried from the taxable year 

8 (determined before the application of this sub9 section to the taxable year). 

10 ‘‘(3) QUALIFIED SMALL BUSINESS.—For pur11 poses of this subsection— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 small business’ means, with respect to any tax14 able year— 

15 ‘‘(i) a corporation or partnership, if— 

16 ‘‘(I) the gross receipts (as deter17 mined under the rules of section 

18 448(c)(3), without regard to subpara19 graph (A) thereof) of such entity for 

20 the taxable year is less than 

21 $5,000,000, and 

22 ‘‘(II) such entity did not have 

23 gross receipts (as so determined) for 

24 any taxable year preceding the 5-taxVerDate Sep 11 2014 23:38 Aug 05, 2015 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1946.PCS S1946

smartinez on DSK4TPTVN1PROD with BILLS
13 

•S 1946 PCS

1 able-year period ending with such tax2 able year, and 

3 ‘‘(ii) any person (other than a cor4 poration or partnership) who meets the re5 quirements of subclauses (I) and (II) of 

6 clause (i), determined— 

7 ‘‘(I) by substituting ‘person’ for 

8 ‘entity’ each place it appears, and 

9 ‘‘(II) by only taking into account 

10 the aggregate gross receipts received 

11 by such person in carrying on all 

12 trades or businesses of such person. 

13 ‘‘(B) LIMITATION.—Such term shall not 

14 include an organization which is exempt from 

15 taxation under section 501. 

16 ‘‘(4) ELECTION.— 

17 ‘‘(A) IN GENERAL.—Any election under 

18 this subsection for any taxable year— 

19 ‘‘(i) shall specify the amount of the 

20 credit to which such election applies, 

21 ‘‘(ii) shall be made on or before the 

22 due date (including extensions) of— 

23 ‘‘(I) in the case of a qualified 

24 small business which is a partnership, 


smartinez on DSK4TPTVN1PROD with BILLS
14 

•S 1946 PCS

1 the return required to be filed under 

2 section 6031, 

3 ‘‘(II) in the case of a qualified 

4 small business which is an S corpora5 tion, the return required to be filed 

6 under section 6037, and 

7 ‘‘(III) in the case of any other 

8 qualified small business, the return of 

9 tax for the taxable year, and 

10 ‘‘(iii) may be revoked only with the 

11 consent of the Secretary. 

12 ‘‘(B) LIMITATIONS.— 

13 ‘‘(i) AMOUNT.—The amount specified 

14 in any election made under this subsection 

15 shall not exceed $250,000. 

16 ‘‘(ii) NUMBER OF TAXABLE YEARS.— 

17 A person may not make an election under 

18 this subsection if such person (or any other 

19 person treated as a single taxpayer with 

20 such person under paragraph (5)(A)) has 

21 made an election under this subsection for 

22 5 or more preceding taxable years. 

23 ‘‘(C) SPECIAL RULE FOR PARTNERSHIPS

24 AND S CORPORATIONS.—In the case of a quali25 fied small business which is a partnership or S 


smartinez on DSK4TPTVN1PROD with BILLS
15 

•S 1946 PCS

1 corporation, the election made under this sub2 section shall be made at the entity level. 

3 ‘‘(5) AGGREGATION RULES.— 

4 ‘‘(A) IN GENERAL.—Except as provided in 

5 subparagraph (B), all persons or entities treat6 ed as a single taxpayer under subsection (f)(1) 

7 shall be treated as a single taxpayer for pur8 poses of this subsection. 

9 ‘‘(B) SPECIAL RULES.—For purposes of 

10 this subsection and section 3111(f)— 

11 ‘‘(i) each of the persons treated as a 

12 single taxpayer under subparagraph (A) 

13 may separately make the election under 

14 paragraph (1) for any taxable year, and 

15 ‘‘(ii) the $250,000 amount under 

16 paragraph (4)(B)(i) shall be allocated 

17 among all persons treated as a single tax18 payer under subparagraph (A) in the same 

19 manner as under subparagraph (A)(ii) or 

20 (B)(ii) of subsection (f)(1), whichever is 

21 applicable. 

22 ‘‘(6) REGULATIONS.—The Secretary shall pre23 scribe such regulations as may be necessary to carry 

24 out the purposes of this subsection, including— 


smartinez on DSK4TPTVN1PROD with BILLS
16 

•S 1946 PCS

1 ‘‘(A) regulations to prevent the avoidance 

2 of the purposes of the limitations and aggrega3 tion rules under this subsection through the use 

4 of successor companies or other means, 

5 ‘‘(B) regulations to minimize compliance 

6 and record-keeping burdens under this sub7 section, and 

8 ‘‘(C) regulations for recapturing the ben9 efit of credits determined under section 3111(f) 

10 in cases where there is a subsequent adjustment 

11 to the payroll tax credit portion of the credit 

12 determined under subsection (a), including re13 quiring amended income tax returns in the 

14 cases where there is such an adjustment.’’. 

15 (2) CREDIT ALLOWED AGAINST FICA TAXES.— 

16 Section 3111 is amended by adding at the end the 

17 following new subsection: 

18 ‘‘(f) CREDIT FOR RESEARCH EXPENDITURES OF

19 QUALIFIED SMALL BUSINESSES.— 

20 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

21 who has made an election under section 41(i) for a 

22 taxable year, there shall be allowed as a credit 

23 against the tax imposed by subsection (a) for the 

24 first calendar quarter which begins after the date on 

25 which the taxpayer files the return specified in secVerDate Sep 11 2014 23:38 Aug 05, 2015 Jkt 049200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1946.PCS S1946

smartinez on DSK4TPTVN1PROD with BILLS
17 

•S 1946 PCS

1 tion 41(i)(4)(A)(ii) an amount equal to the payroll 

2 tax credit portion determined under section 41(i)(2). 

3 ‘‘(2) LIMITATION.—The credit allowed by para4 graph (1) shall not exceed the tax imposed by sub5 section (a) for any calendar quarter on the wages 

6 paid with respect to the employment of all individ7 uals in the employ of the employer. 

8 ‘‘(3) CARRYOVER OF UNUSED CREDIT.—If the 

9 amount of the credit under paragraph (1) exceeds 

10 the limitation of paragraph (2) for any calendar 

11 quarter, such excess shall be carried to the suc12 ceeding calendar quarter and allowed as a credit 

13 under paragraph (1) for such quarter. 

14 ‘‘(4) DEDUCTION ALLOWED FOR CREDITED

15 AMOUNTS.—The credit allowed under paragraph (1) 

16 shall not be taken into account for purposes of de17 termining the amount of any deduction allowed 

18 under chapter 1 for taxes imposed under subsection 

19 (a).’’. 

20 (3) EFFECTIVE DATE.—The amendments made 

21 by this subsection shall apply to credits determined 

22 for taxable years beginning after December 31, 

23 2014. 

24 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN25 IMUM TAX.— 


smartinez on DSK4TPTVN1PROD with BILLS
18 

•S 1946 PCS

1 (1) IN GENERAL.—Subparagraph (B) of section 

2 38(c)(4) is amended— 

3 (A) by redesignating clauses (ii), (iii), (iv), 

4 (v), (vi), (vii), (viii), and (ix) as clauses (iii), 

5 (iv), (v), (vi), (vii), (viii), (ix), and (x), respec6 tively, and 

7 (B) by inserting after clause (i) the fol8 lowing new clause: 

9 ‘‘(ii) the credit determined under sec10 tion 41 with respect to an eligible small 

11 business (as defined in paragraph (5)(C), 

12 after application of rules similar to the 

13 rules of paragraph (5)(D)),’’. 

14 (2) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to credits determined 

16 for taxable years beginning after December 31, 

17 2014, and to carrybacks of such credits. 

18 SEC. 112. EXTENSION AND MODIFICATION OF TEMPORARY 

19 MINIMUM LOW-INCOME HOUSING TAX CRED20 IT RATE FOR NON-FEDERALLY SUBSIDIZED 

21 BUILDINGS. 

22 (a) IN GENERAL.—Subparagraph (A) of section 

23 42(b)(2) is amended by striking ‘‘January 1, 2015’’ and 

24 inserting ‘‘January 1, 2017’’. 


smartinez on DSK4TPTVN1PROD with BILLS
19 

•S 1946 PCS

1 (b) TEMPORARY MINIMUM CREDIT RATE FOR NON2 FEDERALLY SUBSIDIZED EXISTING BUILDINGS.—Sub3 section (b) of section 42 is amended by redesignating 

4 paragraph (3) as paragraph (4) and by inserting after 

5 paragraph (2) the following new paragraph: 

6 ‘‘(3) TEMPORARY MINIMUM CREDIT RATE FOR

7 NON-FEDERALLY SUBSIDIZED EXISTING BUILD8 INGS.—In the case of any existing building— 

9 ‘‘(A) which is placed in service by the tax10 payer after the date of the enactment of the 

11 Tax Relief Extension Act of 2015 with respect 

12 to housing credit dollar amount allocations 

13 made before January 1, 2017, and 

14 ‘‘(B) which is not federally subsidized for 

15 the taxable year, 

16 the applicable percentage shall not be less than 4 

17 percent.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall take effect on January 1, 2015. 

20 SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE 

21 EXCLUSION FOR DETERMINING WHETHER A 

22 TENANT IN CERTAIN COUNTIES IS LOW-IN23 COME. 

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

25 the Housing Assistance Tax Act of 2008 is amended by 


smartinez on DSK4TPTVN1PROD with BILLS
20 

•S 1946 PCS

1 striking ‘‘January 1, 2015’’ each place it appears and in2 serting ‘‘January 1, 2017’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect as if included in the enact5 ment of section 3005 of the Housing Assistance Tax Act 

6 of 2008. 

7 SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CRED8 IT. 

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

10 amended by striking ‘‘December 31, 2014’’ and inserting 

11 ‘‘December 31, 2016’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2014. 

15 SEC. 115. EXTENSION AND MODIFICATION OF NEW MAR16 KETS TAX CREDIT. 

17 (a) IN GENERAL.—Paragraph (1) of section 45D(f) 

18 is amended by striking the period at the end of subpara19 graph (G) and inserting ‘‘, and’’ and by adding at the end 

20 the following new subparagraph: 

21 ‘‘(H) $3,940,000,000 for 2015 and 

22 2016.’’. 

23 (b) CARRYOVER OF UNUSED LIMITATION.—Para24 graph (3) of section 45D(f) is amended by striking 

25 ‘‘2019’’ and inserting ‘‘2021’’. 


smartinez on DSK4TPTVN1PROD with BILLS
21 

•S 1946 PCS

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to calendar years beginning after 

3 December 31, 2014. 

4 SEC. 116. EXTENSION AND MODIFICATION OF RAILROAD 

5 TRACK MAINTENANCE CREDIT. 

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

7 amended by striking ‘‘January 1, 2015’’ and inserting 

8 ‘‘January 1, 2017’’. 

9 (b) EXPENDITURES.—Subsection (d) of section 45G 

10 is amended by striking ‘‘January 1, 2005,’’ and inserting 

11 ‘‘January 1, 2015 (January 1, 2005, in the case of ex12 penditures in taxable years beginning after December 31, 

13 2004, and before January 1, 2015)’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to expenditures paid or incurred 

16 in taxable years beginning after December 31, 2014. 

17 SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING 

18 CREDIT. 

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

20 amended by striking ‘‘December 31, 2014’’ and inserting 

21 ‘‘December 31, 2016’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
22 

•S 1946 PCS

1 SEC. 118. EXTENSION AND MODIFICATION OF EMPLOYER 

2 WAGE CREDIT FOR EMPLOYEES WHO ARE AC3 TIVE DUTY MEMBERS OF THE UNIFORMED 

4 SERVICES. 

5 (a) IN GENERAL.—Subsection (f) of section 45P is 

6 amended by striking ‘‘December 31, 2014’’ and inserting 

7 ‘‘December 31, 2016’’. 

8 (b) APPLICABILITY TO ALL EMPLOYERS.— 

9 (1) IN GENERAL.—Subsection (a) of section 

10 45P is amended by striking ‘‘, in the case of an eli11 gible small business employer’’. 

12 (2) CONFORMING AMENDMENT.—Paragraph (3) 

13 of section 45P(b) is amended to read as follows: 

14 ‘‘(3) CONTROLLED GROUPS.—All persons treat15 ed as a single employer under subsection (b), (c), 

16 (m), or (o) of section 414 shall be treated as a single 

17 employer.’’. 

18 (c) EXPANSION TO 100 PERCENT OF ELIGIBLE DIF19 FERENTIAL WAGE PAYMENTS.—Subsection (a) of section 

20 45P is amended by striking ‘‘20 percent of the sum’’ and 

21 inserting ‘‘the sum’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to payments made after December 

24 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
23 

•S 1946 PCS

1 SEC. 119. EXTENSION AND MODIFICATION OF WORK OP2 PORTUNITY TAX CREDIT. 

3 (a) IN GENERAL.—Paragraph (4) of section 51(c) is 

4 amended by striking ‘‘December 31, 2014’’ and inserting 

5 ‘‘December 31, 2016’’. 

6 (b) CREDIT FOR HIRING LONG-TERM UNEMPLOY7 MENT RECIPIENTS.— 

8 (1) IN GENERAL.—Paragraph (1) of section 

9 51(d) is amended by striking ‘‘or’’ at the end of sub10 paragraph (H), by striking the period at the end of 

11 subparagraph (I) and inserting ‘‘, or’’, and by add12 ing at the end the following new subparagraph: 

13 ‘‘(J) a qualified long-term unemployment 

14 recipient.’’. 

15 (2) QUALIFIED LONG-TERM UNEMPLOYMENT

16 RECIPIENT.—Subsection (d) of section 51 is amend17 ed by adding at the end the following new para18 graph: 

19 ‘‘(15) QUALIFIED LONG-TERM UNEMPLOYMENT

20 RECIPIENT.—The term ‘qualified long-term unem21 ployment recipient’ means any individual who is cer22 tified by the designated local agency as being in a 

23 period of unemployment which— 

24 ‘‘(A) is not less than 27 consecutive weeks, 

25 and 


smartinez on DSK4TPTVN1PROD with BILLS
24 

•S 1946 PCS

1 ‘‘(B) includes a period in which the indi2 vidual was receiving unemployment compensa3 tion under State or Federal law.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to individuals who begin work for 

6 the employer after December 31, 2014. 

7 SEC. 120. EXTENSION AND MODIFICATION OF QUALIFIED 

8 ZONE ACADEMY BONDS. 

9 (a) EXTENSION.—Paragraph (1) of section 54E(c) is 

10 amended by striking ‘‘and 2014’’ and inserting ‘‘2014, 

11 2015, and 2016’’. 

12 (b) REDUCTION OF PRIVATE BUSINESS CONTRIBU13 TION REQUIREMENT.—Subsection (b) of section 54E is 

14 amended by striking ‘‘10 percent’’ and inserting ‘‘5 per15 cent’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to obligations issued after Decem18 ber 31, 2014. 

19 SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN 

20 RACE HORSES AS 3-YEAR PROPERTY. 

21 (a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) 

22 is amended— 

23 (1) by striking ‘‘January 1, 2015’’ in subclause 

24 (I) and inserting ‘‘January 1, 2017’’, and 


smartinez on DSK4TPTVN1PROD with BILLS
25 

•S 1946 PCS

1 (2) by striking ‘‘December 31, 2014’’ in sub2 clause (II) and inserting ‘‘December 31, 2016’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to property placed in service after 

5 December 31, 2014. 

6 SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE7 COVERY FOR QUALIFIED LEASEHOLD IM8 PROVEMENTS, QUALIFIED RESTAURANT 

9 BUILDINGS AND IMPROVEMENTS, AND 

10 QUALIFIED RETAIL IMPROVEMENTS. 

11 (a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec12 tion 168(e)(3)(E) are each amended by striking ‘‘January 

13 1, 2015’’ and inserting ‘‘January 1, 2017’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to property placed in service after 

16 December 31, 2014. 

17 SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 

18 MOTORSPORTS ENTERTAINMENT COM19 PLEXES. 

20 (a) IN GENERAL.—Subparagraph (D) of section 

21 168(i)(15) is amended by striking ‘‘December 31, 2014’’ 

22 and inserting ‘‘December 31, 2016’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall apply to property placed in service after 

25 December 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
26 

•S 1946 PCS

1 SEC. 124. EXTENSION AND MODIFICATION OF ACCELER2 ATED DEPRECIATION FOR BUSINESS PROP3 ERTY ON AN INDIAN RESERVATION. 

4 (a) IN GENERAL.—Paragraph (8) of section 168(j) 

5 is amended by striking ‘‘December 31, 2014’’ and insert6 ing ‘‘December 31, 2016’’. 

7 (b) ELECTION TO HAVE SPECIAL RULES NOT

8 APPLY.—Subsection (j) of section 168 is amended by re9 designating paragraph (8), as amended by subsection (a), 

10 as paragraph (9), and by inserting after paragraph (7) 

11 the following new paragraph: 

12 ‘‘(8) ELECTION OUT.—If a taxpayer makes an 

13 election under this paragraph with respect to any 

14 class of property for any taxable year, this sub15 section shall not apply to all property in such class 

16 placed in service during such taxable year. Such 

17 election, once made, shall be irrevocable.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to property placed in service after 

20 December 31, 2014. 

21 SEC. 125. EXTENSION OF BONUS DEPRECIATION. 

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

23 is amended— 

24 (1) by striking ‘‘January 1, 2016’’ in subpara25 graph (A)(iv) and inserting ‘‘January 1, 2018’’, and 


smartinez on DSK4TPTVN1PROD with BILLS
27 

•S 1946 PCS

1 (2) by striking ‘‘January 1, 2015’’ each place 

2 it appears and inserting ‘‘January 1, 2017’’. 

3 (b) SPECIAL RULE FOR FEDERAL LONG-TERM CON4 TRACTS.—Clause (ii) of section 460(c)(6)(B) is amended 

5 by striking ‘‘January 1, 2015 (January 1, 2016’’ and in6 serting ‘‘January 1, 2017 (January 1, 2018’’. 

7 (c) EXTENSION OF ELECTION TO ACCELERATE THE

8 AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 

9 (1) IN GENERAL.—Subclause (II) of section 

10 168(k)(4)(D)(iii) is amended by striking ‘‘January 

11 1, 2015’’ and inserting ‘‘January 1, 2017’’. 

12 (2) ROUND 5 EXTENSION PROPERTY.—Para13 graph (4) of section 168(k) is amended by adding at 

14 the end the following new subparagraph: 

15 ‘‘(L) SPECIAL RULES FOR ROUND 5 EX16 TENSION PROPERTY.— 

17 ‘‘(i) IN GENERAL.—In the case of 

18 round 5 extension property, in applying 

19 this paragraph to any taxpayer— 

20 ‘‘(I) the limitation described in 

21 subparagraph (B)(i) and the business 

22 credit increase amount under sub23 paragraph (E)(iii) thereof shall not 

24 apply, and 


smartinez on DSK4TPTVN1PROD with BILLS
28 

•S 1946 PCS

1 ‘‘(II) the bonus depreciation 

2 amount, maximum amount, and max3 imum increase amount shall be com4 puted separately from amounts com5 puted with respect to eligible qualified 

6 property which is not round 5 exten7 sion property. 

8 ‘‘(ii) ELECTION.— 

9 ‘‘(I) A taxpayer who has an elec10 tion in effect under this paragraph for 

11 round 4 extension property shall be 

12 treated as having an election in effect 

13 for round 5 extension property unless 

14 the taxpayer elects to not have this 

15 paragraph apply to round 5 extension 

16 property. 

17 ‘‘(II) A taxpayer who does not 

18 have an election in effect under this 

19 paragraph for round 4 extension prop20 erty may elect to have this paragraph 

21 apply to round 5 extension property. 

22 ‘‘(iii) ROUND 5 EXTENSION PROP23 ERTY.—For purposes of this subpara24 graph, the term ‘round 5 extension prop25 erty’ means property which is eligible 


smartinez on DSK4TPTVN1PROD with BILLS
29 

•S 1946 PCS

1 qualified property solely by reason of the 

2 extension of the application of the special 

3 allowance under paragraph (1) pursuant to 

4 the amendments made by section 125(a) of 

5 the Tax Relief Extension Act of 2015 (and 

6 the application of such extension to this 

7 paragraph pursuant to the amendment 

8 made by section 125(c) of such Act).’’. 

9 (d) CONFORMING AMENDMENTS.— 

10 (1) The heading for subsection (k) of section 

11 168 is amended by striking ‘‘JANUARY 1, 2015’’ and 

12 inserting ‘‘JANUARY 1, 2017’’. 

13 (2) The heading for clause (ii) of section 

14 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

15 1, 2015’’ and inserting ‘‘PRE-JANUARY 1, 2017’’. 

16 (3) Subparagraph (C) of section 168(n)(2) is 

17 amended by striking ‘‘January 1, 2015’’ and insert18 ing ‘‘January 1, 2017’’. 

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

20 amended by striking ‘‘January 1, 2015’’ and insert21 ing ‘‘January 1, 2017’’. 

22 (5) Subparagraph (B) of section 1400N(d)(3) 

23 is amended by striking ‘‘January 1, 2015’’ and in24 serting ‘‘January 1, 2017’’. 


smartinez on DSK4TPTVN1PROD with BILLS
30 

•S 1946 PCS

1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2014, in taxable years ending after such 

4 date. 

5 SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUC6 TION FOR CONTRIBUTIONS OF FOOD INVEN7 TORY. 

8 (a) IN GENERAL.—Clause (iv) of section 

9 170(e)(3)(C) is amended by striking ‘‘December 31, 

10 2014’’ and inserting ‘‘December 31, 2016’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to contributions made after De13 cember 31, 2014. 

14 SEC. 127. EXTENSION AND MODIFICATION OF INCREASED 

15 EXPENSING LIMITATIONS AND TREATMENT 

16 OF CERTAIN REAL PROPERTY AS SECTION 

17 179 PROPERTY. 

18 (a) IN GENERAL.— 

19 (1) DOLLAR LIMITATION.—Section 179(b)(1) is 

20 amended— 

21 (A) by striking ‘‘2015’’ in subparagraph 

22 (B) and inserting ‘‘2017’’, and 

23 (B) by striking ‘‘2014’’ in subparagraph 

24 (C) and inserting ‘‘2016’’. 


smartinez on DSK4TPTVN1PROD with BILLS
31 

•S 1946 PCS

1 (2) REDUCTION IN LIMITATION.—Section 

2 179(b)(2) is amended— 

3 (A) by striking ‘‘2015’’ in subparagraph 

4 (B) and inserting ‘‘2017’’, and 

5 (B) by striking ‘‘2014’’ in subparagraph 

6 (C) and inserting ‘‘2016’’. 

7 (b) COMPUTER SOFTWARE.—Section 

8 179(d)(1)(A)(ii) is amended by striking ‘‘2015’’ and in9 serting ‘‘2017’’. 

10 (c) ELECTION.—Section 179(c)(2) is amended by 

11 striking ‘‘2015’’ and inserting ‘‘2017’’. 

12 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

13 REAL PROPERTY.— 

14 (1) IN GENERAL.—Section 179(f)(1) is amend15 ed by striking ‘‘2015’’ and inserting ‘‘2017’’. 

16 (2) CARRYOVER LIMITATION.— 

17 (A) IN GENERAL.—Section 179(f)(4) is 

18 amended by striking ‘‘2014’’ each place it ap19 pears and inserting ‘‘2016’’. 

20 (B) CONFORMING AMENDMENT.—The 

21 heading of subparagraph (C) of section 

22 179(f)(4) is amended by striking ‘‘AND 2013’’ 

23 and inserting ‘‘2013, 2014, AND 2015’’. 


smartinez on DSK4TPTVN1PROD with BILLS
32 

•S 1946 PCS

1 (e) ADJUSTMENT FOR INFLATION.—Subsection (b) 

2 of section 179 is amended by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(6) INFLATION ADJUSTMENT.— 

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

6 taxable year beginning after 2014, the 

7 $500,000 amount in paragraph (1)(B) and the 

8 $2,000,000 amount in paragraph (2)(B) shall 

9 each be increased by an amount equal to— 

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

11 ‘‘(ii) the cost-of-living adjustment de12 termined under section 1(f)(3) for the cal13 endar year in which the taxable year be14 gins, by substituting ‘calendar year 2013’ 

15 for ‘calendar year 1992’ in subparagraph 

16 (B) thereof. 

17 ‘‘(B) ROUNDING.— 

18 ‘‘(i) DOLLAR LIMITATION.—If the 

19 amount in paragraph (1)(B) as increased 

20 under subparagraph (A) is not a multiple 

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

22 to the nearest multiple of $1,000. 

23 ‘‘(ii) PHASEOUT AMOUNT.—If the 

24 amount in paragraph (2)(B) as increased 

25 under subparagraph (A) is not a multiple 


smartinez on DSK4TPTVN1PROD with BILLS
33 

•S 1946 PCS

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

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

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2014. 

6 SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE 

7 SAFETY EQUIPMENT. 

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

9 amended by striking ‘‘December 31, 2014’’ and inserting 

10 ‘‘December 31, 2016’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to property placed in service after 

13 December 31, 2014. 

14 SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR 

15 CERTAIN FILM AND TELEVISION PRODUC16 TIONS; SPECIAL EXPENSING FOR LIVE THE17 ATRICAL PRODUCTIONS. 

18 (a) IN GENERAL.—Subsection (f) of section 181 is 

19 amended by striking ‘‘December 31, 2014’’ and inserting 

20 ‘‘December 31, 2016’’. 

21 (b) APPLICATION TO LIVE PRODUCTIONS.— 

22 (1) IN GENERAL.—Paragraph (1) of section 

23 181(a) is amended by inserting ‘‘, and any qualified 

24 live theatrical production,’’ after ‘‘any qualified film 

25 or television production’’. 


smartinez on DSK4TPTVN1PROD with BILLS
34 

•S 1946 PCS

1 (2) CONFORMING AMENDMENTS.—Section 181 

2 is amended— 

3 (A) by inserting ‘‘or any qualified live the4 atrical production’’ after ‘‘qualified film or tele5 vision production’’ each place it appears in sub6 sections (a)(2), (b), and (c)(1), 

7 (B) by inserting ‘‘or qualified live theat8 rical productions’’ after ‘‘qualified film or tele9 vision productions’’ in subsection (f), and 

10 (C) by inserting ‘‘AND LIVE THEAT11 RICAL’’ after ‘‘FILM AND TELEVISION’’ in 

12 the heading. 

13 (3) CLERICAL AMENDMENT.—The item relating 

14 to section 181 in the table of sections for part VI 

15 of subchapter B of chapter 1 is amended to read as 

16 follows: 

‘‘Sec. 181. Treatment of certain qualified film and television and live theatrical 

productions.’’. 

17 (c) QUALIFIED LIVE THEATRICAL PRODUCTION.— 

18 Section 181 is amended— 

19 (1) by redesignating subsections (e) and (f), as 

20 amended by subsections (a) and (b), as subsections 

21 (f) and (g), respectively, and 

22 (2) by inserting after subsection (d) the fol23 lowing new subsection: 


smartinez on DSK4TPTVN1PROD with BILLS
35 

•S 1946 PCS

1 ‘‘(e) QUALIFIED LIVE THEATRICAL PRODUCTION.— 

2 For purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified live 

4 theatrical production’ means any production de5 scribed in paragraph (2) if 75 percent of the total 

6 compensation of the production is qualified com7 pensation (as defined in subsection (d)(3)). 

8 ‘‘(2) PRODUCTION.— 

9 ‘‘(A) IN GENERAL.—A production is de10 scribed in this paragraph if such production is 

11 a live staged production of a play (with or with12 out music) which is derived from a written book 

13 or script and is produced or presented by a tax14 able entity in any venue which has an audience 

15 capacity of not more than 3,000 or a series of 

16 venues the majority of which have an audience 

17 capacity of not more than 3,000. 

18 ‘‘(B) TOURING COMPANIES, ETC.—In the 

19 case of multiple live staged productions— 

20 ‘‘(i) for which the election under this 

21 section would be allowable to the same tax22 payer, and 

23 ‘‘(ii) which are— 

24 ‘‘(I) separate phases of a produc25 tion, or 


smartinez on DSK4TPTVN1PROD with BILLS
36 

•S 1946 PCS

1 ‘‘(II) separate simultaneous stag2 ings of the same production in dif3 ferent geographical locations (not in4 cluding multiple performance locations 

5 of any one touring production), 

6 each such live staged production shall be treat7 ed as a separate production. 

8 ‘‘(C) PHASE.—For purposes of subpara9 graph (B), the term ‘phase’ with respect to any 

10 qualified live theatrical production refers to 

11 each of the following, but only if each of the fol12 lowing is treated by the taxpayer as a separate 

13 activity for all purposes of this title: 

14 ‘‘(i) The initial staging of a live theat15 rical production. 

16 ‘‘(ii) Subsequent additional stagings 

17 or touring of such production which are 

18 produced by the same producer as the ini19 tial staging. 

20 ‘‘(D) SEASONAL PRODUCTIONS.— 

21 ‘‘(i) IN GENERAL.—In the case of a 

22 live staged production not described in 

23 subparagraph (B) which is produced or 

24 presented by a taxable entity for not more 

25 than 10 weeks of the taxable year, subVerDate Sep 11 2014 23:38 Aug 05, 2015 Jkt 049200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1946.PCS S1946

smartinez on DSK4TPTVN1PROD with BILLS
37 

•S 1946 PCS

1 paragraph (A) shall be applied by sub2 stituting ‘6,500’ for ‘3,000’. 

3 ‘‘(ii) SHORT TAXABLE YEARS.—For 

4 purposes of clause (i), in the case of any 

5 taxable year of less than 12 months, the 

6 number of weeks for which a production is 

7 produced or presented shall be annualized 

8 by multiplying the number of weeks the 

9 production is produced or presented during 

10 such taxable year by 12 and dividing the 

11 result by the number of months in such 

12 taxable year. 

13 ‘‘(E) EXCEPTION.—A production is not de14 scribed in this paragraph if such production in15 cludes or consists of any performance of con16 duct described in section 2257(h)(1) of title 18, 

17 United States Code.’’. 

18 (d) EFFECTIVE DATES.— 

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

20 this section shall apply to productions commencing 

21 after December 31, 2014. 

22 (2) COMMENCEMENT.—For purposes of para23 graph (1), the date on which a qualified live theat24 rical production commences is the date of the first 


smartinez on DSK4TPTVN1PROD with BILLS
38 

•S 1946 PCS

1 public performance of such production for a paying 

2 audience. 

3 SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH 

4 RESPECT TO INCOME ATTRIBUTABLE TO DO5 MESTIC PRODUCTION ACTIVITIES IN PUERTO 

6 RICO. 

7 (a) IN GENERAL.—Subparagraph (C) of section 

8 199(d)(8) is amended— 

9 (1) by striking ‘‘first 9 taxable years’’ and in10 serting ‘‘first 11 taxable years’’, and 

11 (2) by striking ‘‘January 1, 2015’’ and insert12 ing ‘‘January 1, 2017’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2014. 

16 SEC. 131. EXTENSION OF MODIFICATION OF TAX TREAT17 MENT OF CERTAIN PAYMENTS TO CONTROL18 LING EXEMPT ORGANIZATIONS. 

19 (a) IN GENERAL.—Clause (iv) of section 

20 512(b)(13)(E) is amended by striking ‘‘December 31, 

21 2014’’ and inserting ‘‘December 31, 2016’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to payments received or accrued 

24 after December 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
39 

•S 1946 PCS

1 SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVI2 DENDS OF REGULATED INVESTMENT COMPA3 NIES. 

4 (a) IN GENERAL.—Paragraphs (1)(C)(v) and 

5 (2)(C)(v) of section 871(k) are each amended by striking 

6 ‘‘December 31, 2014’’ and inserting ‘‘December 31, 

7 2016’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2014. 

11 SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT EN12 TITY TREATMENT UNDER FIRPTA. 

13 (a) IN GENERAL.—Clause (ii) of section 

14 897(h)(4)(A) is amended by striking ‘‘December 31, 

15 2014’’ and inserting ‘‘December 31, 2016’’. 

16 (b) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—The amendment made by 

18 this section shall take effect on January 1, 2015. 

19 Notwithstanding the preceding sentence, such 

20 amendment shall not apply with respect to the with21 holding requirement under section 1445 of the Inter22 nal Revenue Code of 1986 for any payment made 

23 before the date of the enactment of this Act. 

24 (2) AMOUNTS WITHHELD ON OR BEFORE DATE

25 OF ENACTMENT.—In the case of a regulated invest26 ment company— 


smartinez on DSK4TPTVN1PROD with BILLS
40 

•S 1946 PCS

1 (A) which makes a distribution after De2 cember 31, 2014, and before the date of the en3 actment of this Act, and 

4 (B) which would (but for the second sen5 tence of paragraph (1)) have been required to 

6 withhold with respect to such distribution under 

7 section 1445 of such Code, 

8 such investment company shall not be liable to any 

9 person to whom such distribution was made for any 

10 amount so withheld and paid over to the Secretary 

11 of the Treasury. 

12 SEC. 134. EXTENSION OF SUBPART F EXCEPTION FOR AC13 TIVE FINANCING INCOME. 

14 (a) EXEMPT INSURANCE INCOME.—Paragraph (10) 

15 of section 953(e) is amended— 

16 (1) by striking ‘‘January 1, 2015’’ and insert17 ing ‘‘January 1, 2017’’, and 

18 (2) by striking ‘‘December 31, 2014’’ and in19 serting ‘‘December 31, 2016’’. 

20 (b) SPECIAL RULE FOR INCOME DERIVED IN THE

21 ACTIVE CONDUCT OF BANKING, FINANCING, OR SIMILAR

22 BUSINESSES.—Paragraph (9) of section 954(h) is amend23 ed by striking ‘‘January 1, 2015’’ and inserting ‘‘January 

24 1, 2017’’. 


smartinez on DSK4TPTVN1PROD with BILLS
41 

•S 1946 PCS

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years of foreign corpora3 tions beginning after December 31, 2014, and to taxable 

4 years of United States shareholders with or within which 

5 any such taxable year of such foreign corporation ends. 

6 SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAY7 MENTS BETWEEN RELATED CONTROLLED 

8 FOREIGN CORPORATIONS UNDER FOREIGN 

9 PERSONAL HOLDING COMPANY RULES. 

10 (a) IN GENERAL.—Subparagraph (C) of section 

11 954(c)(6) is amended by striking ‘‘January 1, 2015’’ and 

12 inserting ‘‘January 1, 2017’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to taxable years of foreign corpora15 tions beginning after December 31, 2014, and to taxable 

16 years of United States shareholders with or within which 

17 such taxable years of foreign corporations end. 

18 SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 

19 PERCENT OF GAIN ON CERTAIN SMALL BUSI20 NESS STOCK. 

21 (a) IN GENERAL.—Paragraph (4) of section 1202(a) 

22 is amended— 

23 (1) by striking ‘‘January 1, 2015’’ and insert24 ing ‘‘January 1, 2017’’, and 


smartinez on DSK4TPTVN1PROD with BILLS
42 

•S 1946 PCS

1 (2) by striking ‘‘AND 2014’’ in the heading and 

2 inserting ‘‘2014, 2015, AND 2016’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to stock acquired after December 

5 31, 2014. 

6 SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF 

7 S CORPORATIONS MAKING CHARITABLE CON8 TRIBUTIONS OF PROPERTY. 

9 (a) IN GENERAL.—Paragraph (2) of section 1367(a) 

10 is amended by striking ‘‘December 31, 2014’’ and insert11 ing ‘‘December 31, 2016’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to contributions made in taxable 

14 years beginning after December 31, 2014. 

15 SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION 

16 RECOGNITION PERIOD FOR BUILT-IN GAINS 

17 TAX. 

18 (a) IN GENERAL.—Subparagraph (C) of section 

19 1374(d)(7) is amended— 

20 (1) by striking ‘‘or 2014’’ and inserting ‘‘2014, 

21 2015, or 2016’’, and 

22 (2) by striking ‘‘AND 2014’’ in the heading and 

23 inserting ‘‘2014, 2015, AND 2016’’. 


smartinez on DSK4TPTVN1PROD with BILLS
43 

•S 1946 PCS

1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

4 SEC. 139. EXTENSION AND MODIFICATION OF EMPOWER5 MENT ZONE TAX INCENTIVES. 

6 (a) IN GENERAL.— 

7 (1) EXTENSION.—Clause (i) of section 

8 1391(d)(1)(A) is amended by striking ‘‘December 

9 31, 2014’’ and inserting ‘‘December 31, 2016’’. 

10 (2) TREATMENT OF CERTAIN TERMINATION

11 DATES SPECIFIED IN NOMINATIONS.—In the case of 

12 a designation of an empowerment zone the nomina13 tion for which included a termination date which is 

14 contemporaneous with the date specified in subpara15 graph (A)(i) of section 1391(d)(1) of the Internal 

16 Revenue Code of 1986 (as in effect before the enact17 ment of this Act), subparagraph (B) of such section 

18 shall not apply with respect to such designation if, 

19 after the date of the enactment of this section, the 

20 entity which made such nomination amends the 

21 nomination to provide for a new termination date in 

22 such manner as the Secretary of the Treasury (or 

23 the Secretary’s designee) may provide. 


smartinez on DSK4TPTVN1PROD with BILLS
44 

•S 1946 PCS

1 (3) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to periods after De3 cember 31, 2014. 

4 (b) MODIFICATION.—Clause (i) of section 

5 1394(b)(3)(B) is amended— 

6 (1) by striking ‘‘References’’ and inserting the 

7 following: 

8 ‘‘(I) IN GENERAL.—Except as 

9 provided in subclause (II), ref10 erences’’, and 

11 (2) by adding at the end the following new sub12 clause: 

13 ‘‘(II) SPECIAL RULE FOR EM14 PLOYEE RESIDENCE TEST.—For pur15 poses of subsection (b)(6) and (c)(5) 

16 of section 1397C, an employee shall 

17 be treated as a resident of an em18 powerment zone if such employee is a 

19 resident of an empowerment zone, an 

20 enterprise community, or a qualified 

21 low-income community within an ap22 plicable nominating jurisdiction.’’. 

23 (c) DEFINITIONS.— 

24 (1) QUALIFIED LOW-INCOME COMMUNITY.— 

25 Paragraph (3) of section 1394(b) is amended by reVerDate Sep 11 2014 23:38 Aug 05, 2015 Jkt 049200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1946.PCS S1946

smartinez on DSK4TPTVN1PROD with BILLS
45 

•S 1946 PCS

1 designating subparagraphs (C) and (D) as subpara2 graphs (D) and (E), respectively, and by inserting 

3 after subparagraph (B) the following new subpara4 graph: 

5 ‘‘(C) QUALIFIED LOW-INCOME COMMU6 NITY.—For purposes of subparagraph (B)— 

7 ‘‘(i) IN GENERAL.—The term ‘quali8 fied low-income community’ means any 

9 population census tract if— 

10 ‘‘(I) the poverty rate for such 

11 tract is at least 20 percent, or 

12 ‘‘(II) the median family income 

13 for such tract does not exceed 80 per14 cent of statewide median family in15 come (or, in the case of a tract lo16 cated within a metropolitan area, met17 ropolitan area median family income 

18 if greater). 

19 Subclause (II) shall be applied using 

20 possessionwide median family income in 

21 the case of census tracts located within a 

22 possession of the United States. 

23 ‘‘(ii) TARGETED POPULATIONS.—The 

24 Secretary shall prescribe regulations under 

25 which 1 or more targeted populations 


smartinez on DSK4TPTVN1PROD with BILLS
46 

•S 1946 PCS

1 (within the meaning of section 103(20) of 

2 the Riegle Community Development and 

3 Regulatory Improvement Act of 1994) may 

4 be treated as qualified low-income commu5 nities. 

6 ‘‘(iii) AREAS NOT WITHIN CENSUS

7 TRACTS.—In the case of an area which is 

8 not tracted for population census tracts, 

9 the equivalent county divisions (as defined 

10 by the Bureau of the Census for purposes 

11 of defining poverty areas) shall be used for 

12 purposes of determining poverty rates and 

13 median family income. 

14 ‘‘(iv) MODIFICATION OF INCOME RE15 QUIREMENT FOR CENSUS TRACTS WITHIN

16 HIGH MIGRATION RURAL COUNTIES.— 

17 ‘‘(I) IN GENERAL.—In the case 

18 of a population census tract located 

19 within a high migration rural county, 

20 clause (i)(II) shall be applied to areas 

21 not located within a metropolitan area 

22 by substituting ‘85 percent’ for ‘80 

23 percent’. 

24 ‘‘(II) HIGH MIGRATION RURAL

25 COUNTY.—For purposes of this 


smartinez on DSK4TPTVN1PROD with BILLS
47 

•S 1946 PCS

1 clause, the term ‘high migration rural 

2 county’ means any county which, dur3 ing the 20-year period ending with the 

4 year in which the most recent census 

5 was conducted, has a net out-migra6 tion of inhabitants from the county of 

7 at least 10 percent of the population 

8 of the county at the beginning of such 

9 period.’’. 

10 (2) APPLICABLE NOMINATING JURISDICTION.— 

11 Subparagraph (D) of section 1394(b)(3), as redesig12 nated by paragraph (1), is amended by adding at 

13 the end the following new clause: 

14 ‘‘(iii) APPLICABLE NOMINATING JU15 RISDICTION.—The term ‘applicable nomi16 nating jurisdiction’ means, with respect to 

17 any empowerment zone or enterprise com18 munity, any local government that nomi19 nated such community for designation 

20 under section 1391.’’. 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) Clause (iii) of section 1394(b)(3)(B) is 

23 amended by striking ‘‘or an enterprise community’’ 

24 and inserting ‘‘, an enterprise community, or a 


smartinez on DSK4TPTVN1PROD with BILLS
48 

•S 1946 PCS

1 qualified low-income community within an applicable 

2 nominating jurisdiction’’. 

3 (2) Subparagraph (D) of section 1394(b)(3), as 

4 redesignated by subsection (c)(1), is amended by 

5 striking ‘‘DEFINITIONS’’ and inserting ‘‘OTHER

6 DEFINITIONS’’. 

7 (e) EFFECTIVE DATE.—The amendments made by 

8 subsections (b), (c), and (d) shall apply to bonds issued 

9 before, on, or after the date of the enactment of this Act 

10 and not redeemed before the date of the enactment of this 

11 Act. 

12 SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT 

13 ON COVER OVER OF RUM EXCISE TAXES TO 

14 PUERTO RICO AND THE VIRGIN ISLANDS. 

15 (a) IN GENERAL.—Paragraph (1) of section 7652(f) 

16 is amended by striking ‘‘January 1, 2015’’ and inserting 

17 ‘‘January 1, 2017’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to distilled spirits brought into the 

20 United States after December 31, 2014. 

21 SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DE22 VELOPMENT CREDIT. 

23 (a) IN GENERAL.—Subsection (d) of section 119 of 

24 division A of the Tax Relief and Health Care Act of 2006 

25 is amended— 


smartinez on DSK4TPTVN1PROD with BILLS
49 

•S 1946 PCS

1 (1) by striking ‘‘January 1, 2015’’ each place 

2 it appears and inserting ‘‘January 1, 2017’’, 

3 (2) by striking ‘‘first 9 taxable years’’ in para4 graph (1) and inserting ‘‘first 11 taxable years’’, 

5 and 

6 (3) by striking ‘‘first 3 taxable years’’ in para7 graph (2) and inserting ‘‘first 5 taxable years’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2014. 

11 Subtitle C—Energy Tax Extenders 

12 SEC. 151. EXTENSION AND MODIFICATION OF CREDIT FOR 

13 NONBUSINESS ENERGY PROPERTY. 

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

15 is amended by striking ‘‘December 31, 2014’’ and insert16 ing ‘‘December 31, 2016’’. 

17 (b) UPDATED ENERGY STAR REQUIREMENTS FOR

18 WINDOWS, DOORS, SKYLIGHTS, AND ROOFING.— 

19 (1) IN GENERAL.—Paragraph (1) of section 

20 25C(c) is amended by striking ‘‘which meets’’ and 

21 all that follows through ‘‘requirements)’’. 

22 (2) ENERGY EFFICIENT BUILDING ENVELOPE

23 COMPONENT.—Subsection (c) of section 25C is 

24 amended by redesignating paragraphs (2) and (3) as 

25 paragraphs (3) and (4), respectively, and by insertVerDate Sep 11 2014 23:38 Aug 05, 2015 Jkt 049200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S1946.PCS S1946

smartinez on DSK4TPTVN1PROD with BILLS
50 

•S 1946 PCS

1 ing after paragraph (1) the following new para2 graph: 

3 ‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE

4 COMPONENT.—The term ‘energy efficient building 

5 envelope component’ means a building envelope com6 ponent which meets— 

7 ‘‘(A) applicable Energy Star program re8 quirements, in the case of a roof or roof prod9 ucts, 

10 ‘‘(B) version 6.0 Energy Star program re11 quirements, in the case of an exterior window, 

12 a skylight, or an exterior door, and 

13 ‘‘(C) the prescriptive criteria for such com14 ponent established by the 2009 International 

15 Energy Conservation Code, as such Code (in16 cluding supplements) is in effect on the date of 

17 the enactment of the American Recovery and 

18 Reinvestment Tax Act of 2009, in the case of 

19 any other component.’’. 

20 (3) CONFORMING AMENDMENT.—Subparagraph 

21 (D) of section 25C(c)(3), as so redesignated, is 

22 amended to read as follows: 

23 ‘‘(D) any roof or roof products which are 

24 installed on a dwelling unit and are specifically 


smartinez on DSK4TPTVN1PROD with BILLS
51 

•S 1946 PCS

1 and primarily designed to reduce the heat gain 

2 of such dwelling unit.’’. 

3 (c) SEPARATE STANDARDS FOR TANKLESS AND

4 STORAGE WATER HEATERS.— 

5 (1) IN GENERAL.—Subparagraph (D) of section 

6 25C(d)(3) is amended by striking ‘‘which has either’’ 

7 and all that follows and inserting ‘‘which has ei8 ther— 

9 ‘‘(i) in the case of a storage water 

10 heater, an energy factor of at least 0.80 or 

11 a thermal efficiency of at least 90 percent, 

12 and 

13 ‘‘(ii) in the case of any other water 

14 heater, an energy factor of at least 0.90 or 

15 a thermal efficiency of at least 90 percent, 

16 and’’. 

17 (2) STORAGE WATER HEATERS.—Paragraph (3) 

18 of section 25C(d) is amended by adding at the end 

19 the following flush sentence: 

20 ‘‘For purposes of subparagraph (D)(i), the term 

21 ‘storage water heater’ means a water heater that has 

22 a water storage capacity of more than 20 gallons but 

23 not more than 55 gallons.’’. 

24 (d) MODIFICATION OF TESTING STANDARDS FOR

25 BIOMASS STOVES.—Subparagraph (E) of section 


smartinez on DSK4TPTVN1PROD with BILLS
52 

•S 1946 PCS

1 25C(d)(3) is amended by inserting before the period the 

2 following: ‘‘, when tested using the higher heating value 

3 of the fuel and in accordance with the Canadian Standards 

4 Administration B415.1 test protocol’’. 

5 (e) SEPARATE STANDARD FOR OIL HOT WATER

6 BOILERS.—Paragraph (4) of section 25C(d) is amended 

7 by striking ‘‘95’’ and inserting ‘‘95 (90 in the case of an 

8 oil hot water boiler)’’. 

9 (f) INSTALLATION COSTS FOR QUALIFIED ENERGY

10 EFFICIENCY IMPROVEMENTS.—Paragraph (1) of sub11 section (c) of section 25C is amended by adding at the 

12 end the following flush sentence: 

13 ‘‘Such term includes expenditures for labor costs 

14 properly allocable to the onsite preparation, assem15 bly, or original installation of the component.’’. 

16 (g) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to property placed in service after 

18 December 31, 2014. 

19 SEC. 152. EXTENSION OF CREDIT FOR NEW QUALIFIED 

20 FUEL CELL MOTOR VEHICLES. 

21 (a) IN GENERAL.—Paragraph (1) of section 30B(k) 

22 is amended by striking ‘‘December 31, 2014’’ and insert23 ing ‘‘December 31, 2016’’. 


smartinez on DSK4TPTVN1PROD with BILLS
53 

•S 1946 PCS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to property purchased after De3 cember 31, 2014. 

4 SEC. 153. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

5 VEHICLE REFUELING PROPERTY. 

6 (a) IN GENERAL.—Subsection (g) of section 30C is 

7 amended by striking ‘‘December 31, 2014’’ and inserting 

8 ‘‘December 31, 2016’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to property placed in service after 

11 December 31, 2014. 

12 SEC. 154. EXTENSION OF SECOND GENERATION BIOFUEL 

13 PRODUCER CREDIT. 

14 (a) IN GENERAL.—Clause (i) of section 40(b)(6)(J) 

15 is amended by striking ‘‘January 1, 2015’’ and inserting 

16 ‘‘January 1, 2017’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this subsection shall apply to qualified second generation 

19 biofuel production after December 31, 2014. 

20 SEC. 155. EXTENSION AND REFORM OF BIODIESEL TAX IN21 CENTIVES. 

22 (a) INCOME TAX CREDIT.— 

23 (1) EXTENSION.— 

24 (A) CREDITS FOR BIODIESEL AND RENEW25 ABLE DIESEL USED AS FUEL.—Subsection (g) 


smartinez on DSK4TPTVN1PROD with BILLS
54 

•S 1946 PCS

1 of section 40A is amended by striking ‘‘Decem2 ber 31, 2014’’ and inserting ‘‘December 31, 

3 2016’’. 

4 (B) EFFECTIVE DATE.—The amendment 

5 made by this paragraph shall apply to fuel sold 

6 or used after December 31, 2014. 

7 (2) REFORM OF INCOME TAX CREDIT.— 

8 (A) IN GENERAL.—So much of section 

9 40A as precedes subsection (c) is amended to 

10 read as follows: 

11 ‘‘SEC. 40A. BIODIESEL FUELS CREDIT. 

12 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

13 the case of an eligible taxpayer, the biodiesel fuels credit 

14 determined under this section for the taxable year is $1.00 

15 for each gallon of biodiesel produced by the taxpayer which 

16 during the taxable year— 

17 ‘‘(1) is sold by the producer of such biodiesel to 

18 another person— 

19 ‘‘(A) for use by such other person’s trade 

20 or business as a fuel or in the production of a 

21 biodiesel mixture (other than casual off-farm 

22 production), or 

23 ‘‘(B) who sells such biodiesel at retail to 

24 another person and places such biodiesel in the 

25 fuel tank of such other person, or 


smartinez on DSK4TPTVN1PROD with BILLS
55 

•S 1946 PCS

1 ‘‘(2) is used by such producer for any purpose 

2 described in paragraph (1). 

3 ‘‘(b) INCREASED CREDIT FOR SMALL PRODUCERS.— 

4 ‘‘(1) IN GENERAL.—In the case of any eligible 

5 small biodiesel producer, subsection (a) shall be ap6 plied by increasing the dollar amount contained 

7 therein by 10 cents. 

8 ‘‘(2) LIMITATION.—Paragraph (1) shall only 

9 apply with respect to the first 15,000,000 gallons of 

10 biodiesel produced by any eligible small biodiesel 

11 producer during any taxable year.’’. 

12 (B) DEFINITIONS AND SPECIAL RULES.— 

13 Section 40A(d) is amended by striking all that 

14 follows paragraph (1) and inserting the fol15 lowing 

16 ‘‘(2) ELIGIBLE TAXPAYER.— 

17 ‘‘(A) IN GENERAL.—The term ‘eligible tax18 payer’ means, with respect to any gallon of bio19 diesel, the producer of such gallon if such pro20 ducer has paid the tax imposed by section 4081 

21 on such biodiesel. 

22 ‘‘(B) SPECIAL RULE FOR ELIGIBLE DIS23 CRETIONARY BLENDERS.—For purposes of this 

24 section (other than subsection (b)), an eligible 

25 discretionary blender shall be treated as the 


smartinez on DSK4TPTVN1PROD with BILLS
56 

•S 1946 PCS

1 producer of any gallon of biodiesel which is 

2 used to make a qualified biodiesel mixture if— 

3 ‘‘(i) the producer of such biodiesel 

4 (determined without regard to this sub5 paragraph)— 

6 ‘‘(I) did not pay the tax imposed 

7 under section 4081 with respect to 

8 such gallon, and 

9 ‘‘(II) assigns the credit allowed 

10 under this section to the eligible dis11 cretionary blender in such form and 

12 manner as provided by the Secretary, 

13 and 

14 ‘‘(ii) such eligible discretionary blend15 er pays the tax imposed under section 

16 4081 with respect to such gallon. 

17 For purposes of the preceding sentence, an eli18 gible discretionary blender shall be treated as 

19 producing a gallon of biodiesel in the taxable 

20 year in which the sale or use of the qualified 

21 biodiesel mixture occurs. 

22 ‘‘(C) ELIGIBLE DISCRETIONARY BLEND23 ER.—For purposes of subparagraph (B), the 

24 term ‘eligible discretionary blender’ means any 

25 person who— 


smartinez on DSK4TPTVN1PROD with BILLS
57 

•S 1946 PCS

1 ‘‘(i) is registered under section 4101 

2 as a blender of qualified biodiesel mixtures, 

3 and 

4 ‘‘(ii) has used 10,000,000 or more 

5 gallons of biodiesel in the production of 

6 qualified biodiesel mixtures in the pre7 ceding taxable year. 

8 ‘‘(3) BIODIESEL MIXTURE; QUALIFIED BIO9 DIESEL MIXTURE.— 

10 ‘‘(A) BIODIESEL MIXTURE.—The term 

11 ‘biodiesel mixture’ means a mixture consists of 

12 biodiesel and diesel fuel (as defined in section 

13 4083(a)(3)), determined without regard to any 

14 use of kerosene. 

15 ‘‘(B) QUALIFIED BIODIESEL MIXTURE.— 

16 ‘‘(i) IN GENERAL.—The term ‘quali17 fied biodiesel mixture’ means a biodiesel 

18 mixture which is produced by an eligible 

19 discretionary blender and— 

20 ‘‘(I) sold by such eligible discre21 tionary blender to any person for use 

22 as a fuel, or 

23 ‘‘(II) used by such eligible discre24 tionary blender as a fuel. 


smartinez on DSK4TPTVN1PROD with BILLS
58 

•S 1946 PCS

1 ‘‘(ii) SALE OR USE MUST BE IN

2 TRADE OR BUSINESS, ETC.—A biodiesel 

3 mixture shall not be treated as a qualified 

4 biodiesel mixture unless the sale or use de5 scribed in clause (i) is in a trade or busi6 ness of the eligible discretionary blender. 

7 ‘‘(4) BIODIESEL NOT USED FOR A QUALIFIED

8 PURPOSE.—If— 

9 ‘‘(A) any credit was determined with re10 spect to any biodiesel under this section, and 

11 ‘‘(B) any person uses such biodiesel for a 

12 purpose not described in subsection (a), 

13 then there is hereby imposed on such person a tax 

14 equal to the product of the rate applicable under 

15 subsection (a) and the number of gallons of such 

16 biodiesel. 

17 ‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND

18 TRUSTS.—Under regulations prescribed by the Sec19 retary, rules similar to the rules of subsection (d) of 

20 section 52 shall apply. 

21 ‘‘(6) LIMITATION TO BIODIESEL WITH CONNEC22 TION TO THE UNITED STATES.—No credit shall be 

23 determined under subsection (a) with respect to bio24 diesel unless such biodiesel is produced in the United 

25 States. For purposes of this paragraph, the term 


smartinez on DSK4TPTVN1PROD with BILLS
59 

•S 1946 PCS

1 ‘United States’ includes any possession of the 

2 United States.’’. 

3 (C) RULES FOR SMALL BIODIESEL PRO4 DUCERS.— 

5 (i) IN GENERAL.—Section 40A(e) is 

6 amended— 

7 (I) by striking ‘‘agri-biodiesel’’ 

8 each place it appears in paragraphs 

9 (1) and (5)(A) and inserting ‘‘bio10 diesel’’, 

11 (II) by striking ‘‘subsection 

12 (b)(4)(C)’’ each place it appears in 

13 paragraphs (2) and (3) and inserting 

14 ‘‘subsection (b)(2)’’, and 

15 (III) by striking ‘‘subsection 

16 (a)(3)’’ each place it appears in para17 graphs (5)(A), (6)(A)(i), and (6)(B)(i) 

18 and inserting ‘‘subsection (b)’’. 

19 (ii) The heading for subsection (e) of 

20 section 40A is amended by striking ‘‘AGRI21 BIODIESEL’’ and inserting ‘‘BIODIESEL’’. 

22 (iii) The headings for paragraphs (1) 

23 and (6) of section 40A(e) are each amend24 ed by striking ‘‘AGRI-BIODIESEL’’ and in25 serting ‘‘BIODIESEL’’. 


smartinez on DSK4TPTVN1PROD with BILLS
60 

•S 1946 PCS

1 (D) CONFORMING AMENDMENTS RELATED

2 TO RENEWABLE DIESEL.—Section 40A(f) is 

3 amended— 

4 (i) by striking ‘‘Subsection (b)(4)’’ 

5 and inserting ‘‘Subsection (b)’’, and 

6 (ii) by striking paragraph (4) and in7 serting the following: 

8 ‘‘(4) CERTAIN AVIATION FUEL.—Except as pro9 vided in the last 3 sentences of paragraph (2), the 

10 term ‘renewable diesel’ shall include fuel derived 

11 from biomass which meets the requirements of a De12 partment of Defense specification for military jet 

13 fuel or an American Society of Testing and Mate14 rials specification for aviation turbine fuel.’’. 

15 (E) REGISTRATION OF ELIGIBLE DISCRE16 TIONARY BLENDERS.—Section 4101(a)(1) is 

17 amended— 

18 (i) by striking ‘‘and’’ before ‘‘every 

19 person producing second generation 

20 biofuel’’, and 

21 (ii) by inserting ‘‘, and every person 

22 producing qualified biodiesel mixtures (as 

23 defined in section 40A(d)(3))’’ after ‘‘sec24 tion 40(b)(6)(E)) in excess of 10,000,000 

25 gallons per year’’. 


smartinez on DSK4TPTVN1PROD with BILLS
61 

•S 1946 PCS

1 (F) CLERICAL AMENDMENT.—The table of 

2 sections for subpart D of part IV of subchapter 

3 A of chapter 1 is amended by striking the item 

4 relating to section 40A and inserting the fol5 lowing new item: 

‘‘Sec. 40A. Biodiesel fuels credit.’’. 

6 (G) EFFECTIVE DATE.—The amendments 

7 made by this paragraph shall apply to fuel sold 

8 or used after December 31, 2015. 

9 (b) EXCISE TAX INCENTIVES.— 

10 (1) EXTENSION.— 

11 (A) IN GENERAL.—Paragraph (6) of sec12 tion 6426(c) is amended by striking ‘‘December 

13 31, 2014’’ and inserting ‘‘December 31, 2016’’. 

14 (B) PAYMENTS.—Subparagraph (B) of 

15 section 6427(e)(6) is amended by striking ‘‘De16 cember 31, 2014’’ and inserting ‘‘December 31, 

17 2016’’. 

18 (C) EFFECTIVE DATE.—The amendments 

19 made by this paragraph shall apply to fuel sold 

20 or used after December 31, 2014. 

21 (D) SPECIAL RULE FOR CERTAIN PERIODS

22 DURING 2015.—Notwithstanding any other pro23 vision of law, in the case of any biodiesel mix24 ture credit properly determined under section 

25 6426(c) of the Internal Revenue Code of 1986 


smartinez on DSK4TPTVN1PROD with BILLS
62 

•S 1946 PCS

1 for periods after December 31, 2014, and on or 

2 before the last day of the first calendar quarter 

3 ending after the date of the enactment of this 

4 Act, such credit shall be allowed, and any re5 fund or payment attributable to such credit (in6 cluding any payment under section 6427(e) of 

7 such Code) shall be made, only in such manner 

8 as the Secretary of the Treasury (or the Sec9 retary’s delegate) shall provide. Such Secretary 

10 shall issue guidance within 30 days after the 

11 date of the enactment of this Act providing for 

12 a one-time submission of claims covering peri13 ods described in the preceding sentence. Such 

14 guidance shall provide for a 180-day period for 

15 the submission of such claims (in such manner 

16 as prescribed by such Secretary) to begin not 

17 later than 30 days after such guidance is 

18 issued. Such claims shall be paid by such Sec19 retary not later than 60 days after receipt. If 

20 such Secretary has not paid pursuant to a claim 

21 filed under this subsection within 60 days after 

22 the date of the filing of such claim, the claim 

23 shall be paid with interest from such date de24 termined by using the overpayment rate and 

25 method under section 6621 of such Code. 


smartinez on DSK4TPTVN1PROD with BILLS
63 

•S 1946 PCS

1 (2) REFORM OF EXCISE TAX CREDIT.— 

2 (A) IN GENERAL.—Subsection (c) of sec3 tion 6426 is amended— 

4 (i) by striking all that precedes para5 graph (6) and inserting the following: 

6 ‘‘(c) BIODIESEL PRODUCTION CREDIT.— 

7 ‘‘(1) IN GENERAL.—For purposes of this sec8 tion, in the case of an eligible taxpayer, the biodiesel 

9 production credit is $1.00 for each gallon of bio10 diesel produced by the taxpayer and which— 

11 ‘‘(A) is sold by such producer to another 

12 person— 

13 ‘‘(i) for use by such other person’s 

14 trade or business as a fuel or in the pro15 duction of a biodiesel mixture (other than 

16 casual off-farm production), or 

17 ‘‘(ii) who sells such biodiesel at retail 

18 to another person and places such biodiesel 

19 in the fuel tank of such other person, or 

20 ‘‘(B) is used by such producer for any pur21 pose described in subparagraph (A). 

22 ‘‘(2) SPECIAL RULE FOR ELIGIBLE DISCRE23 TIONARY BLENDERS.—For purposes of this sub24 section and section 6427(e)(3), an eligible discre25 tionary blender shall be treated as the producer of 


smartinez on DSK4TPTVN1PROD with BILLS
64 

•S 1946 PCS

1 any gallon of biodiesel which is used to make a 

2 qualified biodiesel mixture if— 

3 ‘‘(A) the producer of such biodiesel (deter4 mined without regard to this subparagraph)— 

5 ‘‘(i) did not pay the tax imposed 

6 under section 4081 with respect to such 

7 gallon, and 

8 ‘‘(ii) assigns the credit allowed under 

9 this section to the eligible discretionary 

10 blender in such form and manner as pro11 vided by the Secretary, and 

12 ‘‘(B) such eligible discretionary blender 

13 pays the tax imposed under section 4081 with 

14 respect to such gallon. 

15 For purposes of the preceding sentence, an eligible 

16 discretionary blender shall not be treated as pro17 ducing a gallon of biodiesel before the date on which 

18 the sale or use of the qualified biodiesel mixture oc19 curs. 

20 ‘‘(3) DEFINITIONS.—Any term used in this sub21 section which is also used in section 40A shall have 

22 the meaning given such term by section 40A.’’, and 

23 (ii) by redesignating paragraph (6), as 

24 amended by paragraph (1)(A), as para25 graph (4). 


smartinez on DSK4TPTVN1PROD with BILLS
65 

•S 1946 PCS

1 (B) PRODUCER REGISTRATION REQUIRE2 MENT.—Subsection (a) of section 6426 is 

3 amended by striking ‘‘subsections (d) and (e)’’ 

4 in the flush sentence at the end and inserting 

5 ‘‘subsections (c), (d), and (e)’’. 

6 (C) RECAPTURE.— 

7 (i) IN GENERAL.—Subsection (f) of 

8 section 6426 is amended— 

9 (I) by striking ‘‘or biodiesel’’ 

10 each place it appears in subpara11 graphs (A) and (B)(i) of paragraph 

12 (1), 

13 (II) by striking ‘‘or biodiesel mix14 ture’’ in paragraph (1)(A), and 

15 (III) by redesignating paragraph 

16 (2) as paragraph (3) and by inserting 

17 after paragraph (1) the following new 

18 paragraph: 

19 ‘‘(2) BIODIESEL.—If any credit was determined 

20 under this section or paid pursuant to section 

21 6427(e) with respect to the production of any bio22 diesel and any person uses such biodiesel for a pur23 pose not described in subsection (c)(1), then there is 

24 hereby imposed on such person a tax equal to $1 for 

25 each gallon of such biodiesel.’’. 


smartinez on DSK4TPTVN1PROD with BILLS
66 

•S 1946 PCS

1 (ii) CONFORMING AMENDMENTS.— 

2 (I) Paragraph (3) of section 

3 6426(f), as redesignated by clause 

4 (i)(III), is amended by inserting ‘‘or 

5 (2)’’ after ‘‘paragraph (1)’’. 

6 (II) The heading for paragraph 

7 (1) of section 6426(f) is amended by 

8 striking ‘‘IMPOSITION OF TAX’’ and 

9 inserting ‘‘IN GENERAL’’. 

10 (D) LIMITATION.—Section 6426(i) is 

11 amended— 

12 (i) in paragraph (2)— 

13 (I) by striking ‘‘biodiesel or’’, and 

14 (II) by striking ‘‘BIODIESEL

15 AND’’ in the heading, and 

16 (ii) by inserting after paragraph (2) 

17 the following new paragraph: 

18 ‘‘(3) BIODIESEL.—No credit shall be deter19 mined under this section with respect to biodiesel 

20 unless such biodiesel is produced in the United 

21 States.’’. 

22 (E) CLERICAL AMENDMENTS.— 

23 (i) The heading of section 6426 is 

24 amended by striking ‘‘ALCOHOL FUEL, 

25 BIODIESEL, AND ALTERNATIVE FUEL


smartinez on DSK4TPTVN1PROD with BILLS
67 

•S 1946 PCS

1 MIXTURES’’ and inserting ‘‘ALCOHOL

2 FUEL MIXTURES, BIODIESEL PRODUC3 TION, AND ALTERNATIVE FUEL MIX4 TURES’’. 

5 (ii) The item relating to section 6426 

6 in the table of sections for subchapter B of 

7 chapter 65 is amended by striking ‘‘alcohol 

8 fuel, biodiesel, and alternative fuel mix9 tures’’ and inserting ‘‘alcohol fuel mix10 tures, biodiesel production, and alternative 

11 fuel mixtures’’. 

12 (F) EFFECTIVE DATE.—The amendments 

13 made by this paragraph shall apply to fuel sold 

14 or used after December 31, 2015. 

15 (3) REFORM OF EXCISE PAYMENTS OF CRED16 IT.— 

17 (A) IN GENERAL.—Subsection (e) of sec18 tion 6427, as amended by paragraph (1)(B), is 

19 amended— 

20 (i) by striking ‘‘or the biodiesel mix21 ture credit’’ in paragraph (1), 

22 (ii) by redesignating paragraphs (3) 

23 through (6) as paragraphs (4) through (7), 

24 respectively, and by inserting after para25 graph (2) the following new paragraph: 


smartinez on DSK4TPTVN1PROD with BILLS
68 

•S 1946 PCS

1 ‘‘(3) BIODIESEL PRODUCTION CREDIT.—If any 

2 person produces biodiesel and sells or uses such bio3 diesel as provided in section 6426(c)(1), the Sec4 retary shall pay (without interest) to such person an 

5 amount equal to the biodiesel production credit with 

6 respect to such biodiesel.’’, 

7 (iii) by striking ‘‘paragraph (1) or 

8 (2)’’ each place it appears in paragraphs 

9 (4) and (6), as redesignated by paragraph 

10 (2), and inserting ‘‘paragraph (1), (2), or 

11 (3)’’, 

12 (iv) by striking ‘‘alternative fuel’’ each 

13 place it appears in paragraphs (4) and (6), 

14 as redesignated by paragraph (2), and in15 serting ‘‘fuel’’, and 

16 (v) by striking ‘‘biodiesel mixture (as 

17 defined in section 6426(c)(3))’’ in para18 graph (7)(B), as so redesignated, and in19 serting ‘‘biodiesel (within the meaning of 

20 section 40A)’’. 

21 (B) EFFECTIVE DATE.—The amendments 

22 made by this paragraph shall apply to fuel sold 

23 or used after December 31, 2015. 

24 (c) TREATMENT OF BIODIESEL AS A TAXABLE

25 FUEL.— 


smartinez on DSK4TPTVN1PROD with BILLS
69 

•S 1946 PCS

1 (1) IN GENERAL.— 

2 (A) TAXABLE FUEL INCLUDES BIO3 DIESEL.—Paragraph (1) of section 4083(a) is 

4 amended by striking ‘‘and’’ at the end of sub5 paragraph (B), by striking the period at the 

6 end of subparagraph (C) and inserting ‘‘, and’’, 

7 and by adding at the end the following new sub8 paragraph: 

9 ‘‘(D) biodiesel.’’. 

10 (B) BIODIESEL DEFINED.—Subsection (a) 

11 of section 4083 is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(4) BIODIESEL.—The term ‘biodiesel’ has the 

14 meaning given such term under section 40A(d)(1), 

15 determined without regard to the last sentence 

16 thereof.’’. 

17 (2) BIODIESEL PRODUCTION FACILITIES

18 TREATED AS REFINERIES.— 

19 (A) IN GENERAL.—Subsection (a) of sec20 tion 4081 is amended by adding at the end the 

21 following new paragraph: 

22 ‘‘(5) BIODIESEL PRODUCTION FACILITIES AND

23 BLENDING FACILITIES TREATED AS REFINERIES.— 

24 For purposes of this part— 


smartinez on DSK4TPTVN1PROD with BILLS
70 

•S 1946 PCS

1 ‘‘(A) any facility which is used to produce 

2 biodiesel, and 

3 ‘‘(B) any biodiesel blending facility, 

4 shall be treated as a refinery with respect to bio5 diesel.’’. 

6 (B) BIODIESEL BLENDING FACILITY DE7 FINED.—Section 4083 is amended by adding at 

8 the end the following new subsection: 

9 ‘‘(e) BIODIESEL BLENDING FACILITY.—For pur10 poses of this subpart, the term ‘biodiesel blending facility’ 

11 means any facility that is operated by an eligible discre12 tionary blender (as defined in section 40A(d)(2)(C)).’’. 

13 (C) BULK TRANSFERS.—Subparagraph 

14 (B) of section 4081(a)(1) is amended by adding 

15 at the end the following new clause: 

16 ‘‘(iii) SPECIAL RULES FOR BIO17 DIESEL.—The tax imposed by this para18 graph shall not apply to the removal or 

19 entry of biodiesel to any refinery or ter20 minal if the person removing or entering 

21 the biodiesel and the operator of the refin22 ery or terminal are registered under sec23 tion 4101.’’. 

24 (3) RATE OF TAX.—Subparagraph (A)(iii) of 

25 section 4081(a)(2) is amended by striking ‘‘diesel 


smartinez on DSK4TPTVN1PROD with BILLS
71 

•S 1946 PCS

1 fuel or kerosene’’ and inserting ‘‘diesel fuel, ker2 osene, or biodiesel’’. 

3 (4) EXEMPTIONS.— 

4 (A) IN GENERAL.—Section 4082 is amend5 ed by striking ‘‘diesel fuel and kerosene’’ each 

6 place it appears in subsections (a), (c), and (g) 

7 and inserting ‘‘diesel fuel, kerosene, and bio8 diesel’’. 

9 (B) CONFORMING AMENDMENT.—Subpara10 graph (A) of section 4082(d)(1) is amended by 

11 inserting ‘‘biodiesel,’’ after ‘‘diesel fuel,’’. 

12 (5) OTHER CONFORMING AMENDMENTS.— 

13 (A) The heading for paragraph (1) of sec14 tion 4041(a) is amended by striking ‘‘DIESEL

15 FUEL AND KEROSENE’’ and inserting ‘‘DIESEL

16 FUEL, KEROSENE, AND BIODIESEL’’. 

17 (B) Paragraph (2) of section 6416(b) is 

18 amended by striking ‘‘diesel fuel or kerosene’’ 

19 and inserting ‘‘diesel fuel, kerosene, or bio20 diesel’’. 

21 (C) Section 6427(l) is amended— 

22 (i) by striking ‘‘diesel fuel or ker23 osene’’ each place it appears in paragraph 

24 (1) and (5)(A) and inserting ‘‘diesel fuel, 

25 kerosene, or biodiesel’’, 


smartinez on DSK4TPTVN1PROD with BILLS
72 

•S 1946 PCS

1 (ii) by striking ‘‘DIESEL FUEL AND

2 KEROSENE’’ in the heading and inserting 

3 ‘‘DIESEL FUEL, KEROSENE, AND BIO4 DIESEL’’, and 

5 (iii) by striking ‘‘DIESEL FUEL OR

6 KEROSENE’’ in the heading of paragraph 

7 (5) and inserting ‘‘DIESEL FUEL, KER8 OSENE, OR BIODIESEL’’. 

9 (D) Section 6715(c)(1) is amended by 

10 striking ‘‘diesel fuel or kerosene’’ and inserting 

11 ‘‘diesel fuel, kerosene, or biodiesel’’. 

12 (6) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to biodiesel sold or 

14 used after December 31, 2015. 

15 SEC. 156. EXTENSION OF PRODUCTION CREDIT FOR INDIAN 

16 COAL FACILITIES PLACED IN SERVICE BE17 FORE 2009. 

18 (a) IN GENERAL.—Subparagraph (A) of section 

19 45(e)(10) is amended by striking ‘‘9-year period’’ each 

20 place it appears and inserting ‘‘11-year period’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to coal produced after December 

23 31, 2014. 


smartinez on DSK4TPTVN1PROD with BILLS
73 

•S 1946 PCS

1 SEC. 157. EXTENSION OF CREDITS WITH RESPECT TO FA2 CILITIES PRODUCING ENERGY FROM CER3 TAIN RENEWABLE RESOURCES. 

4 (a) IN GENERAL.—The following provisions of sec5 tion 45(d) are each amended by striking ‘‘January 1, 

6 2015’’ each place it appears and inserting ‘‘January 1, 

7 2017’’: 

8 (1) Paragraph (1). 

9 (2) Paragraph (2)(A). 

10 (3) Paragraph (3)(A). 

11 (4) Paragraph (4)(B). 

12 (5) Paragraph (6). 

13 (6) Paragraph (7). 

14 (7) Paragraph (9). 

15 (8) Paragraph (11)(B). 

16 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

17 FACILITIES AS ENERGY PROPERTY.—Clause (ii) of sec18 tion 48(a)(5)(C) is amended by striking ‘‘January 1, 

19 2015’’ and inserting ‘‘January 1, 2017’’. 

20 (c) EFFECTIVE DATES.—The amendments made by 

21 this section shall take effect on January 1, 2015. 

22 SEC. 158. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

23 NEW HOMES. 

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

25 amended by striking ‘‘December 31, 2014’’ and inserting 

26 ‘‘December 31, 2016’’. 


smartinez on DSK4TPTVN1PROD with BILLS
74 

•S 1946 PCS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to homes acquired after December 

3 31, 2014. 

4 SEC. 159. EXTENSION OF SPECIAL ALLOWANCE FOR SEC5 OND GENERATION BIOFUEL PLANT PROP6 ERTY. 

7 (a) IN GENERAL.—Subparagraph (D) of section 

8 168(l)(2) is amended by striking ‘‘January 1, 2015’’ and 

9 inserting ‘‘January 1, 2017’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to property placed in service after 

12 December 31, 2014. 

13 SEC. 160. EXTENSION AND MODIFICATION OF ENERGY EF14 FICIENT COMMERCIAL BUILDINGS DEDUC15 TION. 

16 (a) IN GENERAL.—Subsection (h) of section 179D is 

17 amended by striking ‘‘December 31, 2014’’ and inserting 

18 ‘‘December 31, 2016’’. 

19 (b) ALLOCATIONS TO INDIAN TRIBAL GOVERN20 MENTS.—Paragraph (4) of section 179D(d) is amended 

21 by striking ‘‘or local’’ and inserting ‘‘local, or Indian trib22 al’’. 

23 (c) ALLOCATIONS TO CERTAIN NONPROFIT ORGANI24 ZATIONS.— 


smartinez on DSK4TPTVN1PROD with BILLS
75 

•S 1946 PCS

1 (1) IN GENERAL.—Paragraph (4) of section 

2 179D(d), as amended by subsection (b), is amended 

3 by inserting ‘‘, or by an organization that is de4 scribed in section 501(c)(3) and exempt from tax 

5 under section 501(a)’’ after ‘‘political subdivision 

6 thereof’’. 

7 (2) CLERICAL AMENDMENT.—The heading of 

8 paragraph (4) of section 179D(d) is amended by in9 serting ‘‘AND PROPERTY HELD BY CERTAIN NON10 PROFITS’’ after ‘‘PUBLIC PROPERTY’’. 

11 (d) UPDATED ASHRAE STANDARDS FOR 2016.— 

12 (1) IN GENERAL.—Paragraph (1) of section 

13 179D(c) is amended by striking ‘‘Standard 90.1- 

14 2001’’ each place it appears and inserting ‘‘Stand15 ard 90.1-2007’’. 

16 (2) CONFORMING AMENDMENTS.— 

17 (A) Paragraph (2) of section 179D(c) is 

18 amended to read as follows: 

19 ‘‘(2) STANDARD 90.1-2007.—The term ‘Standard 

20 90.1-2007’ means Standard 90.1-2007 of the Amer21 ican Society of Heating, Refrigerating, and Air Con22 ditioning Engineers and the Illuminating Engineer23 ing Society of North America (as in effect on the 

24 day before the date of the adoption of Standard 

25 90.1-2010 of such Societies).’’. 


smartinez on DSK4TPTVN1PROD with BILLS
76 

•S 1946 PCS

1 (B) Subsection (f) of section 179D is 

2 amended by striking ‘‘Standard 90.1-2001’’ 

3 each place it appears in paragraphs (1) and 

4 (2)(C)(i) and inserting ‘‘Standard 90.1-2007’’. 

5 (C) Paragraph (1) of section 179D(f) is 

6 amended— 

7 (i) by striking ‘‘Table 9.3.1.1’’ and in8 serting ‘‘Table 9.5.1’’, and 

9 (ii) by striking ‘‘Table 9.3.1.2’’ and 

10 inserting ‘‘Table 9.6.1’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to property placed in 

13 service after December 31, 2015. 

14 (e) EFFECTIVE DATE.—Except as provided in sub15 section (d)(3), the amendments made by this section shall 

16 apply to property placed in service after December 31, 

17 2014. 

18 SEC. 161. EXTENSION OF SPECIAL RULE FOR SALES OR DIS19 POSITIONS TO IMPLEMENT FERC OR STATE 

20 ELECTRIC RESTRUCTURING POLICY FOR 

21 QUALIFIED ELECTRIC UTILITIES. 

22 (a) IN GENERAL.—Paragraph (3) of section 451(i) 

23 is amended by striking ‘‘January 1, 2015’’ and inserting 

24 ‘‘January 1, 2017’’. 


smartinez on DSK4TPTVN1PROD with BILLS
77 

•S 1946 PCS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to dispositions after December 31, 

3 2014. 

4 SEC. 162. EXTENSION OF EXCISE TAX CREDITS RELATING 

5 TO ALTERNATIVE FUELS. 

6 (a) EXTENSION OF ALTERNATIVE FUELS EXCISE

7 TAX CREDITS.— 

8 (1) IN GENERAL.—Sections 6426(d)(5) and 

9 6426(e)(3) are each amended by striking ‘‘December 

10 31, 2014’’ and inserting ‘‘December 31, 2016’’. 

11 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

12 FUELS.—Subparagraph (C) of section 6427(e)(7), as 

13 redesignated by section 155(b)(3)(A)(ii), is amended 

14 by striking ‘‘December 31, 2014’’ and inserting 

15 ‘‘December 31, 2016’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to fuel sold or used after December 

18 31, 2014. 

19 (c) SPECIAL RULE FOR CERTAIN PERIODS DURING

20 2015.—Notwithstanding any other provision of law, in the 

21 case of any alternative fuel credit properly determined 

22 under section 6426(d) of such Code for such periods, such 

23 credit shall be allowed, and any refund or payment attrib24 utable to such credit (including any payment under section 

25 6427(e) of such Code) shall be made, only in such manner 


smartinez on DSK4TPTVN1PROD with BILLS
78 

•S 1946 PCS

1 as the Secretary of the Treasury (or the Secretary’s dele2 gate) shall provide. Such Secretary shall issue guidance 

3 within 30 days after the date of the enactment of this Act 

4 providing for a one-time submission of claims covering pe5 riods described in the preceding sentence. Such guidance 

6 shall provide for a 180-day period for the submission of 

7 such claims (in such manner as prescribed by such Sec8 retary) to begin not later than 30 days after such guidance 

9 is issued. Such claims shall be paid by such Secretary not 

10 later than 60 days after receipt. If such Secretary has not 

11 paid pursuant to a claim filed under this subsection within 

12 60 days after the date of the filing of such claim, the claim 

13 shall be paid with interest from such date determined by 

14 using the overpayment rate and method under section 

15 6621 of such Code. 

16 TITLE II—PROVISION THAT 

17 EXPIRED IN 2013 

18 SEC. 201. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN 

19 ELECTRIC VEHICLES. 

20 (a) IN GENERAL.—Subparagraph (E) of section 

21 30D(g)(3) is amended by striking ‘‘acquired’’ and all that 

22 follows and inserting ‘‘acquired— 

23 ‘‘(i) after December 31, 2011, and be24 fore January 1, 2014, and 


smartinez on DSK4TPTVN1PROD with BILLS
79 

•S 1946 PCS

1 ‘‘(ii) in the case of a vehicle that has 

2 2 wheels— 

3 ‘‘(I) during the period described 

4 in clause (i), or 

5 ‘‘(II) after December 31, 2014, 

6 and before January 1, 2017.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to vehicles acquired after Decem9 ber 31, 2014. 

10 TITLE III—REVENUE 

11 PROVISIONS 

12 SEC. 301. EXCLUSION FROM GROSS INCOME OF CERTAIN 

13 CLEAN COAL POWER GRANTS TO NON-COR14 PORATE TAXPAYERS. 

15 (a) GENERAL RULE.—In the case of an eligible tax16 payer other than a corporation, gross income for purposes 

17 of the Internal Revenue Code of 1986 shall not include 

18 any amount received under section 402 of the Energy Pol19 icy Act of 2005. 

20 (b) REDUCTION IN BASIS.—The basis of any prop21 erty subject to the allowance for depreciation under the 

22 Internal Revenue Code of 1986 which is acquired with any 

23 amount to which subsection (a) applies during the 12- 

24 month period beginning on the day such amount is re25 ceived shall be reduced by an amount equal to such 


smartinez on DSK4TPTVN1PROD with BILLS
80 

•S 1946 PCS

1 amount. The excess (if any) of such amount over the 

2 amount of the reduction under the preceding sentence 

3 shall be applied to the reduction (as of the last day of 

4 the period specified in the preceding sentence) of the basis 

5 of any other property held by the taxpayer. The particular 

6 properties to which the reductions required by this sub7 section are allocated shall be determined by the Secretary 

8 of the Treasury (or the Secretary’s delegate) under regula9 tions similar to the regulations under section 362(c)(2) of 

10 such Code. 

11 (c) LIMITATION TO AMOUNTS WHICH WOULD BE

12 CONTRIBUTIONS TO CAPITAL.—Subsection (a) shall not 

13 apply to any amount unless such amount, if received by 

14 a corporation, would be excluded from gross income under 

15 section 118 of the Internal Revenue Code of 1986. 

16 (d) ELIGIBLE TAXPAYER.—For purposes of this sec17 tion, with respect to any amount received under section 

18 402 of the Energy Policy Act of 2005, the term ‘‘eligible 

19 taxpayer’’ means a taxpayer that makes a payment to the 

20 Secretary of the Treasury (or the Secretary’s delegate) 

21 equal to 1.18 percent of the amount so received. Such pay22 ment shall be made at such time and in such manner as 

23 such Secretary (or the Secretary’s delegate) shall pre24 scribe. In the case of a partnership, such Secretary (or 

25 the Secretary’s delegate) shall prescribe regulations to deVerDate Sep 11 2014 23:38 Aug 05, 2015 Jkt 049200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\S1946.PCS S1946

smartinez on DSK4TPTVN1PROD with BILLS
81 

•S 1946 PCS

1 termine the allocation of such payment amount among the 

2 partners. 

3 (e) EFFECTIVE DATE.—This section shall apply to 

4 amounts received under section 402 of the Energy Policy 

5 Act of 2005 in taxable years beginning after December 

6 31, 2011. 

7 SEC. 302. TREATMENT OF CERTAIN PERSONS AS EMPLOY8 ERS WITH RESPECT TO MOTION PICTURE 

9 PROJECTS. 

10 (a) IN GENERAL.—Chapter 25 (relating to general 

11 provisions relating to employment taxes) is amended by 

12 adding at the end the following new section: 

13 ‘‘SEC. 3512. TREATMENT OF CERTAIN PERSONS AS EMPLOY14 ERS WITH RESPECT TO MOTION PICTURE 

15 PROJECTS. 

16 ‘‘(a) IN GENERAL.—For purposes of sections 

17 3121(a)(1) and 3306(b)(1), remuneration paid to a mo18 tion picture project worker by a motion picture project em19 ployer during a calendar year shall be treated as remu20 neration paid with respect to employment of such worker 

21 by such employer during the calendar year. The identity 

22 of such employer for such purposes shall be determined 

23 as set forth in this section and without regard to the usual 

24 common law rules applicable in determining the employer25 employee relationship. 


smartinez on DSK4TPTVN1PROD with BILLS
82 

•S 1946 PCS

1 ‘‘(b) DEFINITIONS.—For purposes of this section— 

2 ‘‘(1) MOTION PICTURE PROJECT EMPLOYER.— 

3 The term ‘motion picture project employer’ means 

4 any person if— 

5 ‘‘(A) such person (directly or through af6 filiates)— 

7 ‘‘(i) is a party to a written contract 

8 covering the services of motion picture 

9 project workers with respect to motion pic10 ture projects in the course of a client’s 

11 trade or business, 

12 ‘‘(ii) is contractually obligated to pay 

13 remuneration to the motion picture project 

14 workers without regard to payment or re15 imbursement by any other person, 

16 ‘‘(iii) controls the payment (within the 

17 meaning of section 3401(d)(1)) of remu18 neration to the motion picture project 

19 workers and pays such remuneration from 

20 its own account or accounts, 

21 ‘‘(iv) is a signatory to one or more 

22 collective bargaining agreements with a 

23 labor organization (as defined in 29 U.S.C. 

24 152(5)) that represents motion picture 

25 project workers, and 


smartinez on DSK4TPTVN1PROD with BILLS
83 

•S 1946 PCS

1 ‘‘(v) has treated substantially all mo2 tion picture project workers that such per3 son pays as employees and not as inde4 pendent contractors during such calendar 

5 year for purposes of determining employ6 ment taxes under this subtitle, and 

7 ‘‘(B) at least 80 percent of all remunera8 tion (to which section 3121 applies) paid by 

9 such person in such calendar year is paid to 

10 motion picture project workers. 

11 ‘‘(2) MOTION PICTURE PROJECT WORKER.— 

12 The term ‘motion picture project worker’ means any 

13 individual who provides services on motion picture 

14 projects for clients who are not affiliated with the 

15 motion picture project employer. 

16 ‘‘(3) MOTION PICTURE PROJECT.—The term 

17 ‘motion picture project’ means the production of any 

18 property described in section 168(f)(3). Such term 

19 does not include property with respect to which 

20 records are required to be maintained under section 

21 2257 of title 18, United States Code. 

22 ‘‘(4) AFFILIATE; AFFILIATED.—A person shall 

23 be treated as an affiliate of, or affiliated with, an24 other person if such persons are treated as a single 


smartinez on DSK4TPTVN1PROD with BILLS
84 

•S 1946 PCS

1 employer under subsection (b) or (c) of section 

2 414.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 for such chapter 25 is amended by adding at the end the 

5 following new item: 

‘‘Sec. 3512. Treatment of certain persons as employers with respect to motion 

picture projects.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to remuneration paid after Decem8 ber 31, 2015. 

9 (d) NO INFERENCE.—Nothing in the amendments 

10 made by this section shall be construed to create any infer11 ence on the law before the date of the enactment of this 

12 Act. 

13 SEC. 303. EQUALIZATION OF EXCISE TAX AND CREDITS 

14 WITH RESPECT TO LIQUEFIED PETROLEUM 

15 GAS AND LIQUEFIED NATURAL GAS. 

16 (a) LIQUEFIED PETROLEUM GAS.— 

17 (1) IN GENERAL.—Subparagraph (B) of section 

18 4041(a)(2) is amended by striking ‘‘and’’ at the end 

19 of clause (i), by redesignating clause (ii) as clause 

20 (iii), and by inserting after clause (i) the following 

21 new clause: 

22 ‘‘(ii) in the case of liquefied petroleum 

23 gas, 18.3 cents per energy equivalent of a 

24 gallon of gasoline, and’’. 


smartinez on DSK4TPTVN1PROD with BILLS
85 

•S 1946 PCS

1 (2) ENERGY EQUIVALENT OF A GALLON OF

2 GASOLINE.—Paragraph (2) of section 4041(a) is 

3 amended by adding at the end the following: 

4 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

5 OF GASOLINE.—For purposes of this para6 graph, the term energy equivalent of a gallon of 

7 gasoline means, with respect to a liquefied pe8 troleum gas fuel, the amount of such fuel hav9 ing a Btu content of 115,400 (lower heating 

10 value).’’. 

11 (b) LIQUEFIED NATURAL GAS.— 

12 (1) IN GENERAL.—Subparagraph (B) of section 

13 4041(a)(2), as amended by subsection (a)(1), is 

14 amended by striking ‘‘and’’ at the end of clause (ii), 

15 by striking the period at the end of clause (iii) and 

16 inserting ‘‘, and’’ and by inserting after clause (iii) 

17 the following new clause: 

18 ‘‘(iv) in the case of liquefied natural 

19 gas, 24.3 cents per energy equivalent of a 

20 gallon of diesel.’’. 

21 (2) ENERGY EQUIVALENT OF A GALLON OF

22 DIESEL.—Paragraph (2) of section 4041(a), as 

23 amended by subsection (a)(2), is amended by adding 

24 at the end the following: 


smartinez on DSK4TPTVN1PROD with BILLS
86 

•S 1946 PCS

1 ‘‘(D) ENERGY EQUIVALENT OF A GALLON

2 OF DIESEL.—For purposes of this paragraph, 

3 the term energy equivalent of a gallon of diesel 

4 means, with respect to a liquefied natural gas 

5 fuel, the amount of such fuel having a Btu con6 tent of 128,700 (lower heating value).’’. 

7 (3) CONFORMING AMENDMENTS.—Section 

8 4041(a)(2)(B)(iii), as redesignated by subsection 

9 (a)(1), is amended— 

10 (A) by striking ‘‘liquefied natural gas,’’, 

11 and 

12 (B) by striking ‘‘peat), and’’ and inserting 

13 ‘‘peat) and’’. 

14 (c) CREDITS.—Section 6426 is amended by adding 

15 at the end the following new subsection: 

16 ‘‘(j) ENERGY EQUIVALENCY DETERMINATIONS FOR

17 LIQUEFIED PETROLEUM GAS AND LIQUEFIED NATURAL

18 GAS.—For purposes of determining any credit under this 

19 section, any reference to the number of gallons of an alter20 native fuel or the gasoline gallon equivalent of such a fuel 

21 shall be treated as a reference to— 

22 ‘‘(1) in the case of liquefied petroleum gas, the 

23 energy equivalent of a gallon of gasoline, as defined 

24 in section 4041(a)(2)(C), and 


smartinez on DSK4TPTVN1PROD with BILLS
87 

•S 1946 PCS

1 ‘‘(2) in the case of liquefied natural gas, the en2 ergy equivalent of a gallon of diesel, as defined in 

3 section 4041(a)(2)(D).’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to fuel sold or used after December 

6 31, 2014. 

7 SEC. 304. ADDITIONAL INFORMATION ON RETURNS RELAT8 ING TO MORTGAGE INTEREST. 

9 (a) IN GENERAL.—Paragraph (2) of section 

10 6050H(b) is amended by striking ‘‘and’’ at the end of sub11 paragraph (C), by redesignating subparagraph (D) as sub12 paragraph (G), and by inserting after subparagraph (C) 

13 the following new subparagraphs: 

14 ‘‘(D) the amount of outstanding principal 

15 on the mortgage at the beginning of the cal16 endar year, 

17 ‘‘(E) the address of the property securing 

18 such mortgage, 

19 ‘‘(F) the date of the origination of such 

20 mortgage, and’’. 

21 (b) PAYEE STATEMENTS.—Subsection (d) of section 

22 6050H is amended by striking ‘‘and’’ at the end of para23 graph (1), by striking the period at the end of paragraph 

24 (2) and inserting ‘‘, and’’, and by inserting after para25 graph (2) the following new paragraph: 


smartinez on DSK4TPTVN1PROD with BILLS
88 

•S 1946 PCS

1 ‘‘(3) the information required to be included on 

2 the return under subparagraphs (D), (E), and (F) 

3 of subsection (b)(2).’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to returns and statements the due 

6 date for which (determined without regard to extensions) 

7 is after December 31, 2016. 

8 TITLE IV—BUDGETARY EFFECTS 

9 SEC. 401. BUDGETARY EFFECTS. 

10 (a) PAYGO SCORECARD.—The budgetary effects of 

11 this Act shall not be entered on either PAYGO scorecard 

12 maintained pursuant to section 4(d) of the Statutory Pay13 As-You-Go Act of 2010. 

14 (b) SENATE PAYGO SCORECARD.—The budgetary ef15 fects of this Act shall not be entered on any PAYGO score16 card maintained for purposes of section 201 of S. Con. 

17 Res. 21 (110th Congress). 


smartinez on DSK4TPTVN1PROD with BILLS

smartinez on DSK4TPTVN1PROD with BILLS
Calendar No. 198 

114TH CONGRESS 

1ST SESSION S. 1946 

[Report No. 114–118] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

purposes. extend certain expiring provisions, and for other 

AUGUST 5, 2015 

Read twice and placed on the calendar 


smartinez on DSK4TPTVN1PROD with BILLS