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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7024 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 7024

To make improvements to the child tax credit, to provide tax incentives 
 to promote economic growth, to provide special rules for the taxation 
  of certain residents of Taiwan with income from sources within the 
 United States, to provide tax relief with respect to certain Federal 
 disasters, to make improvements to the low-income housing tax credit, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 17, 2024

Mr. Smith of Missouri introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee on 
 Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To make improvements to the child tax credit, to provide tax incentives 
 to promote economic growth, to provide special rules for the taxation 
  of certain residents of Taiwan with income from sources within the 
 United States, to provide tax relief with respect to certain Federal 
 disasters, to make improvements to the low-income housing tax credit, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; ETC.

    (a) Short Title.--This Act may be cited as the ``Tax Relief for 
American Families and Workers Act of 2024''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; etc.
                TITLE I--TAX RELIEF FOR WORKING FAMILIES

Sec. 101. Per-child calculation of refundable portion of child tax 
                            credit.
Sec. 102. Increase in refundable portion.
Sec. 103. Inflation of credit amount.
Sec. 104. Rule for determination of earned income.
                TITLE II--AMERICAN INNOVATION AND GROWTH

Sec. 201. Deduction for domestic research and experimental 
                            expenditures.
Sec. 202. Extension of allowance for depreciation, amortization, or 
                            depletion in determining the limitation on 
                            business interest.
Sec. 203. Extension of 100 percent bonus depreciation.
Sec. 204. Increase in limitations on expensing of depreciable business 
                            assets.
              TITLE III--INCREASING GLOBAL COMPETITIVENESS

    Subtitle A--United States-Taiwan Expedited Double-Tax Relief Act

Sec. 301. Short title.
Sec. 302. Special rules for taxation of certain residents of Taiwan.
    Subtitle B--United States-Taiwan Tax Agreement Authorization Act

Sec. 311. Short title.
Sec. 312. Definitions.
Sec. 313. Authorization to negotiate and enter into agreement.
Sec. 314. Consultations with Congress.
Sec. 315. Approval and implementation of agreement.
Sec. 316. Submission to Congress of agreement and implementation 
                            policy.
Sec. 317. Consideration of approval legislation and implementing 
                            legislation.
Sec. 318. Relationship of agreement to Internal Revenue Code of 1986.
Sec. 319. Authorization of subsequent tax agreements relative to 
                            Taiwan.
Sec. 320. United States treatment of double taxation matters with 
                            respect to Taiwan.
         TITLE IV--ASSISTANCE FOR DISASTER-IMPACTED COMMUNITIES

Sec. 401. Short title.
Sec. 402. Extension of rules for treatment of certain disaster-related 
                            personal casualty losses.
Sec. 403. Exclusion from gross income for compensation for losses or 
                            damages resulting from certain wildfires.
Sec. 404. East Palestine disaster relief payments.
                    TITLE V--MORE AFFORDABLE HOUSING

Sec. 501. State housing credit ceiling increase for low-income housing 
                            credit.
Sec. 502. Tax-exempt bond financing requirement.
           TITLE VI--TAX ADMINISTRATION AND ELIMINATING FRAUD

Sec. 601. Increase in threshold for requiring information reporting 
                            with respect to certain payees.
Sec. 602. Enforcement provisions with respect to COVID-related employee 
                            retention credits.

                TITLE I--TAX RELIEF FOR WORKING FAMILIES

SEC. 101. PER-CHILD CALCULATION OF REFUNDABLE PORTION OF CHILD TAX 
              CREDIT.

    (a) In General.--Subparagraph (A) of section 24(h)(5) is amended to 
read as follows:
                    ``(A) In general.--In applying subsection (d)--
                            ``(i) the amount determined under paragraph 
                        (1)(A) of such subsection with respect to any 
                        qualifying child shall not exceed $1,400, and 
                        such paragraph shall be applied without regard 
                        to paragraph (4) of this subsection, and
                            ``(ii) paragraph (1)(B) of such subsection 
                        shall be applied by multiplying each of--
                                    ``(I) the amount determined under 
                                clause (i) thereof, and
                                    ``(II) the excess determined under 
                                clause (ii) thereof,
                        by the number of qualifying children of the 
                        taxpayer.''.
    (b) Conforming Amendment.--The heading of paragraph (5) of section 
24(h) is amended by striking ``Maximum amount of'' and inserting 
``Special rules for''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.

SEC. 102. INCREASE IN REFUNDABLE PORTION.

    (a) In General.--Paragraph (5) of section 24(h) is amended by 
redesignating subparagraph (B) as subparagraph (C) and by inserting 
after subparagraph (A) the following new subparagraph:
                    ``(B) Amounts for 2023, 2024, and 2025.--In the 
                case of a taxable year beginning after 2022, 
                subparagraph (A) shall be applied by substituting for 
                `$1,400'--
                            ``(i) in the case of taxable year 2023, 
                        `$1,800',
                            ``(ii) in the case of taxable year 2024, 
                        `$1,900', and
                            ``(iii) in the case of taxable year 2025, 
                        `$2,000'.''.
    (b) Conforming Amendment.--Subparagraph (C) of section 24(h)(5), as 
redesignated by subsection (a), is amended by inserting ``and before 
2023'' after ``2018''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.

SEC. 103. INFLATION OF CREDIT AMOUNT.

    (a) In General.--Paragraph (2) of section 24(h) is amended--
            (1) by striking ``amount.--Subsection'' and inserting 
        ``amount.--
                    ``(A) In general.--Subsection'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Adjustment for inflation.--In the case of a 
                taxable year beginning after 2023, the $2,000 amounts 
                in subparagraph (A) and paragraph (5)(B)(iii) shall 
                each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `2022' for `2016' in 
                        subparagraph (A)(ii) thereof.
                If any increase under this clause is not a multiple of 
                $100, such increase shall be rounded to the next lowest 
                multiple of $100.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.

SEC. 104. RULE FOR DETERMINATION OF EARNED INCOME.

    (a) In General.--Paragraph (6) of section 24(h) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``credit.--Subsection'' and inserting 
        ``credit.--
                    ``(A) In general.--Subsection'', and
            (2) by adding at the end the following new subparagraphs:
                    ``(B) Rule for determination of earned income.--
                            ``(i) In general.--In the case of a taxable 
                        year beginning after 2023, if the earned income 
                        of the taxpayer for such taxable year is less 
                        than the earned income of the taxpayer for the 
                        preceding taxable year, subsection (d)(1)(B)(i) 
                        may, at the election of the taxpayer, be 
                        applied by substituting--
                                    ``(I) the earned income for such 
                                preceding taxable year, for
                                    ``(II) the earned income for the 
                                current taxable year.
                            ``(ii) Application to joint returns.--For 
                        purposes of clause (i), in the case of a joint 
                        return, the earned income of the taxpayer for 
                        the preceding taxable year shall be the sum of 
                        the earned income of each spouse for such 
                        preceding taxable year.''.
    (b) Errors Treated as Mathematical Errors.--Paragraph (2) of 
section 6213(g) of the Internal Revenue Code of 1986 is amended by 
striking ``and'' at the end of subparagraph (U), by striking the period 
at the end of subparagraph (V) and inserting ``, and'', and by 
inserting after subparagraph (V) the following new subparagraph:
                    ``(W) in the case of a taxpayer electing the 
                application of section 24(h)(6)(B) for any taxable 
                year, an entry on a return of earned income pursuant to 
                such section which is inconsistent with the amount of 
                such earned income determined by the Secretary for the 
                preceding taxable year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.

                TITLE II--AMERICAN INNOVATION AND GROWTH

SEC. 201. DEDUCTION FOR DOMESTIC RESEARCH AND EXPERIMENTAL 
              EXPENDITURES.

    (a) Delay of Amortization of Domestic Research and Experimental 
Expenditures.--Section 174 is amended by adding at the end the 
following new subsection:
    ``(e) Suspension of Application of Section to Domestic Research and 
Experimental Expenditures.--In the case of any domestic research or 
experimental expenditures (as defined in section 174A(b)), this 
section--
            ``(1) shall apply to such expenditures paid or incurred in 
        taxable years beginning after December 31, 2025, and
            ``(2) shall not apply to such expenditures paid or incurred 
        in taxable years beginning on or before such date.''.
    (b) Reinstatement of Expensing for Domestic Research and 
Experimental Expenditures.--Part VI of subchapter B of chapter 1 is 
amended by inserting after section 174 the following new section:

``SEC. 174A. TEMPORARY RULES FOR DOMESTIC RESEARCH AND EXPERIMENTAL 
              EXPENDITURES.

    ``(a) Treatment as Expenses.--Notwithstanding section 263, there 
shall be allowed as a deduction any domestic research or experimental 
expenditures which are paid or incurred by the taxpayer during the 
taxable year.
    ``(b) Domestic Research or Experimental Expenditures.--For purposes 
of this section, the term `domestic research or experimental 
expenditures' means research or experimental expenditures paid or 
incurred by the taxpayer in connection with the taxpayer's trade or 
business other than such expenditures which are attributable to foreign 
research (within the meaning of section 41(d)(4)(F)).
    ``(c) Amortization of Certain Domestic Research and Experimental 
Expenditures.--
            ``(1) In general.--At the election of the taxpayer, made in 
        accordance with regulations or other guidance provided by the 
        Secretary, in the case of domestic research or experimental 
        expenditures which would (but for subsection (a)) be chargeable 
        to capital account but not chargeable to property of a 
        character which is subject to the allowance under section 167 
        (relating to allowance for depreciation, etc.) or section 611 
        (relating to allowance for depletion), subsection (a) shall not 
        apply and the taxpayer shall--
                    ``(A) charge such expenditures to capital account, 
                and
                    ``(B) be allowed an amortization deduction of such 
                expenditures ratably over such period of not less than 
                60 months as may be selected by the taxpayer (beginning 
                with the month in which the taxpayer first realizes 
                benefits from such expenditures).
            ``(2) Time for and scope of election.--The election 
        provided by paragraph (1) may be made for any taxable year, but 
        only if made not later than the time prescribed by law for 
        filing the return for such taxable year (including extensions 
        thereof). The method so elected, and the period selected by the 
        taxpayer, shall be adhered to in computing taxable income for 
        the taxable year for which the election is made and for all 
        subsequent taxable years unless, with the approval of the 
        Secretary, a change to a different method (or to a different 
        period) is authorized with respect to part or all of such 
        expenditures. The election shall not apply to any expenditure 
        paid or incurred during any taxable year before the taxable 
        year for which the taxpayer makes the election.
    ``(d) Election To Capitalize Expenses.--In the case of a taxpayer 
which elects (at such time and in such manner as the Secretary may 
provide) the application of this subsection, subsections (a) and (c) 
shall not apply and domestic research or experimental expenditures 
shall be chargeable to capital account. Such election shall not apply 
to any expenditure paid or incurred during any taxable year before the 
taxable year for which the taxpayer makes the election and may be made 
with respect to part of the expenditures paid or incurred during any 
taxable year only with the approval of the Secretary.
    ``(e) Special Rules.--
            ``(1) Land and other property.--This section shall not 
        apply to any expenditure for the acquisition or improvement of 
        land, or for the acquisition or improvement of property to be 
        used in connection with the research or experimentation and of 
        a character which is subject to the allowance under section 167 
        (relating to allowance for depreciation, etc.) or section 611 
        (relating to allowance for depletion); but for purposes of this 
        section allowances under section 167, and allowances under 
        section 611, shall be considered as expenditures.
            ``(2) Exploration expenditures.--This section shall not 
        apply to any expenditure paid or incurred for the purpose of 
        ascertaining the existence, location, extent, or quality of any 
        deposit of ore or other mineral (including oil and gas).
            ``(3) Software development.--For purposes of this section, 
        any amount paid or incurred in connection with the development 
        of any software shall be treated as a research or experimental 
        expenditure.
    ``(f) Termination.--
            ``(1) In general.--This section shall not apply to amounts 
        paid or incurred in taxable years beginning after December 31, 
        2025.
            ``(2) Change in method of accounting.--In the case of a 
        taxpayer's first taxable year beginning after December 31, 
        2025, paragraph (1) (and the corresponding application of 
        section 174) shall be treated as a change in method of 
        accounting for purposes of section 481 and--
                    ``(A) such change shall be treated as initiated by 
                the taxpayer,
                    ``(B) such change shall be treated as made with the 
                consent of the Secretary, and
                    ``(C) such change shall be applied only on a cut-
                off basis for any domestic research or experimental 
                expenditures paid or incurred in taxable years 
                beginning after December 31, 2025, and no adjustment 
                under section 481(a) shall be made.''.
    (c) Coordination With Certain Other Provisions.--
            (1) Research credit.--
                    (A) Section 41(d)(1)(A) is amended by inserting 
                ``or domestic research or experimental expenditures 
                under section 174A'' after ``section 174''.
                    (B) Section 280C(c)(1) is amended to read as 
                follows:
            ``(1) In general.--The domestic research or experimental 
        expenditures otherwise taken into account under section 174 or 
        174A (as the case may be) shall be reduced by the amount of the 
        credit allowed under section 41(a).''.
            (2) AMT adjustment.--Section 56(b)(2) is amended by 
        striking ``174(a)'' each place it appears and inserting 
        ``174A(a)''.
            (3) Optional 10-year writeoff.--Section 59(e)(2)(B) is 
        amended by striking ``section 174(a) (relating to research and 
        experimental expenditures)'' and inserting ``section 174A(a) 
        (relating to temporary rules for domestic research and 
        experimental expenditures)''.
            (4) Qualified small issue bonds.--Section 144(a)(4)(C)(iv) 
        is amended by striking ``174(a)'' and inserting ``174A(a)''.
            (5) Start-up expenditures.--Section 195(c)(1) is amended by 
        striking ``or 174'' in the last sentence and inserting ``174, 
        or 174A''.
            (6) Capital expenditures.--
                    (A) Section 263(a)(1)(B) is amended by inserting `` 
                or 174A'' after ``174''.
                    (B) Section 263A(c)(2) is amended by inserting ``or 
                174A'' after ``174''.
            (7) Active business computer software royalties.--Section 
        543(d)(4)(A)(i) is amended by inserting ``174A,'' after 
        ``174,''.
            (8) Source rules.--Section 864(g)(2) is amended in the last 
        sentence--
                    (A) by striking ``treated as deferred expenses 
                under subsection (b) of section 174'' and inserting 
                ``allowed as an amortization deduction under section 
                174(a) or section 174A(c),'', and
                    (B) by striking ``such subsection'' and inserting 
                ``such section (as the case may be)''.
            (9) Basis adjustment.--Section 1016(a)(14) is amended by 
        striking ``deductions as deferred expenses under section 
        174(b)(1) (relating to research and experimental 
        expenditures)'' and inserting ``deductions under section 174 or 
        174A''.
            (10) Small business stock.--Section 1202(e)(2)(B) is 
        amended by striking ``research and experimental expenditures 
        under section 174'' and inserting ``specified research or 
        experimental expenditures under section 174 or domestic 
        research or experimental expenditures under section 174A''.
    (d) Conforming Amendments.--
            (1) Section 13206 of Public Law 115-97 is amended by 
        striking subsection (b) (relating to change in method of 
        accounting).
            (2) The table of sections for part VI of subchapter B of 
        chapter 1 is amended by inserting after the item relating to 
        section 174 the following new item:

``Sec. 174A. Temporary rules for domestic research and experimental 
                            expenditures.''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        amounts paid or incurred in taxable years beginning after 
        December 31, 2021.
            (2) Coordination with research credit.--The amendment made 
        by subsection (c)(1)(B) shall apply to taxable years beginning 
        after December 31, 2022.
            (3) Repeal of superceded change in method of accounting 
        rules.--The amendment made by subsection (d)(1) shall take 
        effect as if included in Public Law 115-97.
            (4) No inference with respect to coordination with research 
        credit for prior periods.--The amendment made by subsection 
        (c)(1)(B) shall not be construed to create any inference with 
        respect to the proper application of section 280C(c) of the 
        Internal Revenue Code of 1986 with respect to taxable years 
        beginning before January 1, 2023.
    (f) Transition Rules.--
            (1) In general.--Except as otherwise provided by the 
        Secretary, an election made under subsection (c) or (d) of 
        section 174A of the Internal Revenue Code of 1986 (as added by 
        this section) for the taxpayer's first taxable year beginning 
        after December 31, 2021, shall not fail to be treated as timely 
        made (or as made on the return) if made during the 1-year 
        period beginning on the date of the enactment of this Act on an 
        amended return for the taxpayer's first taxable year beginning 
        after December 31, 2021, or in such other manner as the 
        Secretary may provide.
            (2) Election regarding treatment as change in method of 
        accounting.--In the case of any taxpayer which (as of the date 
        of the enactment of this Act) had adopted a method of 
        accounting provided by section 174 of the Internal Revenue Code 
        of 1986 (as in effect prior to the amendments made by this 
        section) for the taxpayer's first taxable year beginning after 
        December 31, 2021, and elects the application of this 
        paragraph--
                    (A) the amendments made by this section shall be 
                treated as a change in method of accounting for 
                purposes of section 481 of such Code,
                    (B) such change shall be treated as initiated by 
                the taxpayer for the taxpayer's immediately succeeding 
                taxable year,
                    (C) such change shall be treated as made with the 
                consent of the Secretary,
                    (D) such change shall be applied on a modified cut-
                off basis, taking into account for purposes of section 
                481(a) of such Code only the domestic research or 
                experimental expenditures (as defined in section 
                174A(b) of such Code (as added by this section) and 
                determined by applying the rules of section 174A(e) of 
                such Code) paid or incurred in the taxpayer's first 
                taxable year beginning after December 31, 2021, and not 
                allowed as a deduction in such taxable year, and
                    (E) in the case of a taxpayer which elects the 
                application of this subparagraph, the amount of such 
                change (as determined under subparagraph (D)) shall be 
                taken into account ratably over the 2-taxable-year 
                period beginning with the taxable year referred to in 
                subparagraph (B).
            (3) Election regarding 10-year writeoff.--
                    (A) In general.--Except as otherwise provided by 
                the Secretary, an eligible taxpayer which files, during 
                the 1-year period beginning on the date of the 
                enactment of this Act, an amended income tax return for 
                the taxable year described in subparagraph (B)(ii) may 
                elect the application of section 59(e) of the Internal 
                Revenue Code of 1986 with respect to qualified 
                expenditures described in section 59(e)(2)(B) of such 
                Code (as amended by subsection (c)(3)) with respect to 
                such taxable year. Such election shall be filed with 
                such amended income tax return and shall be effective 
                only to the extent that such election would have been 
                effective if filed with the original income tax return 
                for such taxable year (determined after taking into 
                account the amendment made by subsection (c)(3)).
                    (B) Eligible taxpayer.--For purposes of 
                subparagraph (A), the term ``eligible taxpayer'' means 
                any taxpayer which--
                            (i) does not elect the application of 
                        paragraph (2), and
                            (ii) filed an income tax return for such 
                        taxpayer's first taxable year beginning after 
                        December 31, 2021, before the earlier of--
                                    (I) the due date for such return, 
                                and
                                    (II) the date of the enactment of 
                                this Act.
            (4) Election regarding coordination with research credit.--
        Except as otherwise provided by the Secretary, an eligible 
        taxpayer (as defined in paragraph (3)(B) without regard to 
        clause (i) thereof) which files, during the 1-year period 
        beginning on the date of the enactment of this Act, an amended 
        income tax return for the taxpayer's first taxable year 
        beginning after December 31, 2021, may, notwithstanding 
        subparagraph (C) of section 280C(c)(2) of the Internal Revenue 
        Code of 1986 make, or revoke, on such amended return the 
        election under such section for such taxable year.

SEC. 202. EXTENSION OF ALLOWANCE FOR DEPRECIATION, AMORTIZATION, OR 
              DEPLETION IN DETERMINING THE LIMITATION ON BUSINESS 
              INTEREST.

    (a) In General.--Section 163(j)(8)(A)(v) is amended by striking 
``January 1, 2022'' and inserting ``January 1, 2026''.
    (b) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendment made by this section shall apply to 
        taxable years beginning after December 31, 2023.
            (2) Election to apply extension retroactively.--In the case 
        of a taxpayer which elects (at such time and in such manner as 
        the Secretary may provide) the application of this paragraph, 
        paragraph (1) shall be applied by substituting ``December 31, 
        2021'' for ``December 31, 2023''.

SEC. 203. EXTENSION OF 100 PERCENT BONUS DEPRECIATION.

    (a) In General.--Section 168(k)(6)(A) is amended--
            (1) in clause (i)--
                    (A) by striking ``2023'' and inserting ``2026'', 
                and
                    (B) by adding ``and'' at the end, and
            (2) by striking clauses (ii), (iii), and (iv), and 
        redesignating clause (v) as clause (ii).
    (b) Property With Longer Production Periods.--Section 168(k)(6)(B) 
is amended--
            (1) in clause (i)--
                    (A) by striking ``2024'' and inserting ``2027'', 
                and
                    (B) by adding ``and'' at the end, and
            (2) by striking clauses (ii), (iii), and (iv), and 
        redesignating clause (v) as clause (ii).
    (c) Plants Bearing Fruits and Nuts.--Section 168(k)(6)(C) is 
amended--
            (1) in clause (i)--
                    (A) by striking ``2023'' and inserting ``2026'', 
                and
                    (B) by adding ``and'' at the end, and
            (2) by striking clauses (ii), (iii), and (iv), and 
        redesignating clause (v) as clause (ii).
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        property placed in service after December 31, 2022.
            (2) Plants bearing fruits and nuts.--The amendments made by 
        subsection (c) shall apply to specified plants planted or 
        grafted after December 31, 2022.

SEC. 204. INCREASE IN LIMITATIONS ON EXPENSING OF DEPRECIABLE BUSINESS 
              ASSETS.

    (a) In General.--Section 179(b) is amended--
            (1) by striking ``$1,000,000'' in paragraph (1) and 
        inserting ``$1,290,000'', and
            (2) by striking ``$2,500,000'' in paragraph (2) and 
        inserting ``$3,220,000''.
    (b) Inflation Adjustment.--Section 179(b)(6) is amended--
            (1) by striking ``2018'' and inserting ``2024 (2018 in the 
        case of the dollar amount in paragraph (5)(A))'', and
            (2) by striking ```calendar year 2017'' and inserting 
        ```calendar year 2024' (`calendar year 2017' in the case of the 
        dollar amount in paragraph (5)(A))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 2023.

              TITLE III--INCREASING GLOBAL COMPETITIVENESS

    Subtitle A--United States-Taiwan Expedited Double-Tax Relief Act

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``United States-Taiwan Expedited 
Double-Tax Relief Act''.

SEC. 302. SPECIAL RULES FOR TAXATION OF CERTAIN RESIDENTS OF TAIWAN.

    (a) In General.--Subpart D of part II of subchapter N of chapter 1 
is amended by inserting after section 894 the following new section:

``SEC. 894A. SPECIAL RULES FOR QUALIFIED RESIDENTS OF TAIWAN.

    ``(a) Certain Income From United States Sources.--
            ``(1) Interest, dividends, and royalties, etc.--
                    ``(A) In general.--In the case of interest (other 
                than original issue discount), dividends, royalties, 
                amounts described in section 871(a)(1)(C), and gains 
                described in section 871(a)(1)(D) received by or paid 
                to a qualified resident of Taiwan--
                            ``(i) sections 871(a), 881(a), 1441(a), 
                        1441(c)(5), and 1442(a) shall each be applied 
                        by substituting `the applicable percentage (as 
                        defined in section 894A(a)(1)(C))' for `30 
                        percent' each place it appears, and
                            ``(ii) sections 871(a), 881(a), and 
                        1441(c)(1) shall each be applied by 
                        substituting `a United States permanent 
                        establishment of a qualified resident of 
                        Taiwan' for `a trade or business within the 
                        United States' each place it appears.
                    ``(B) Exceptions.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply to--
                                    ``(I) any dividend received from or 
                                paid by a real estate investment trust 
                                which is not a qualified REIT dividend,
                                    ``(II) any amount subject to 
                                section 897,
                                    ``(III) any amount received from or 
                                paid by an expatriated entity (as 
                                defined in section 7874(a)(2)) to a 
                                foreign related person (as defined in 
                                section 7874(d)(3)), and
                                    ``(IV) any amount which is included 
                                in income under section 860C to the 
                                extent that such amount does not exceed 
                                an excess inclusion with respect to a 
                                REMIC.
                            ``(ii) Qualified reit dividend.--For 
                        purposes of clause (i)(I), the term `qualified 
                        REIT dividend' means any dividend received from 
                        or paid by a real estate investment trust if 
                        such dividend is paid with respect to a class 
                        of shares that is publicly traded and the 
                        recipient of the dividend is a person who holds 
                        an interest in any class of shares of the real 
                        estate investment trust of not more than 5 
                        percent.
                    ``(C) Applicable percentage.--For purposes of 
                applying subparagraph (A)(i)--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `applicable percentage' 
                        means 10 percent.
                            ``(ii) Special rules for dividends.-- In 
                        the case of any dividend in respect of stock 
                        received by or paid to a qualified resident of 
                        Taiwan, the applicable percentage shall be 15 
                        percent (10 percent in the case of a dividend 
                        which meets the requirements of subparagraph 
                        (D) and is received by or paid to an entity 
                        taxed as a corporation in Taiwan).
                    ``(D) Requirements for lower dividend rate.--
                            ``(i) In general.--The requirements of this 
                        subparagraph are met with respect to any 
                        dividend in respect of stock in a corporation 
                        if, at all times during the 12-month period 
                        ending on the date such stock becomes ex-
                        dividend with respect to such dividend--
                                    ``(I) the dividend is derived by a 
                                qualified resident of Taiwan, and
                                    ``(II) such qualified resident of 
                                Taiwan has held directly at least 10 
                                percent (by vote and value) of the 
                                total outstanding shares of stock in 
                                such corporation.
                        For purposes of subclause (II), a person shall 
                        be treated as directly holding a share of stock 
                        during any period described in the preceding 
                        sentence if the share was held by a corporation 
                        from which such person later acquired that 
                        share and such corporation was, at the time the 
                        share was acquired, both a connected person to 
                        such person and a qualified resident of Taiwan.
                            ``(ii) Exception for rics and reits.--
                        Notwithstanding clause (i), the requirements of 
                        this subparagraph shall not be treated as met 
                        with respect to any dividend paid by a 
                        regulated investment company or a real estate 
                        investment trust.
            ``(2) Qualified wages.--
                    ``(A) In general.--No tax shall be imposed under 
                this chapter (and no amount shall be withheld under 
                section 1441(a) or chapter 24) with respect to 
                qualified wages paid to a qualified resident of Taiwan 
                who--
                            ``(i) is not a resident of the United 
                        States (determined without regard to subsection 
                        (c)(3)(E)), or
                            ``(ii) is employed as a member of the 
                        regular component of a ship or aircraft 
                        operated in international traffic.
                    ``(B) Qualified wages.--
                            ``(i) In general.--The term `qualified 
                        wages' means wages, salaries, or similar 
                        remunerations with respect to employment 
                        involving the performance of personal services 
                        within the United States which--
                                    ``(I) are paid by (or on behalf of) 
                                any employer other than a United States 
                                person, and
                                    ``(II) are not borne by a United 
                                States permanent establishment of any 
                                person other than a United States 
                                person.
                            ``(ii) Exceptions.--Such term shall not 
                        include directors' fees, income derived as an 
                        entertainer or athlete, income derived as a 
                        student or trainee, pensions, amounts paid with 
                        respect to employment with the United States, 
                        any State (or political subdivision thereof), 
                        or any possession of the United States (or any 
                        political subdivision thereof), or other 
                        amounts specified in regulations or guidance 
                        under subsection (f)(1)(F).
            ``(3) Income derived from entertainment or athletic 
        activities.--
                    ``(A) In general.--No tax shall be imposed under 
                this chapter (and no amount shall be withheld under 
                section 1441(a) or chapter 24) with respect to income 
                derived by an entertainer or athlete who is a qualified 
                resident of Taiwan from personal activities as such 
                performed in the United States if the aggregate amount 
                of gross receipts from such activities for the taxable 
                year do not exceed $30,000.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                with respect to--
                            ``(i) income which is qualified wages (as 
                        defined in paragraph (2)(B), determined without 
                        regard to clause (ii) thereof), or
                            ``(ii) income which is effectively 
                        connected with a United States permanent 
                        establishment.
    ``(b) Income Connected With a United States Permanent Establishment 
of a Qualified Resident of Taiwan.--
            ``(1) In general.--
                    ``(A) In general.--In lieu of applying sections 
                871(b) and 882, a qualified resident of Taiwan that 
                carries on a trade or business within the United States 
                through a United States permanent establishment shall 
                be taxable as provided in section 1, 11, 55, or 59A, on 
                its taxable income which is effectively connected with 
                such permanent establishment.
                    ``(B) Determination of taxable income.--In 
                determining taxable income for purposes of paragraph 
                (1), gross income includes only gross income which is 
                effectively connected with the permanent establishment.
            ``(2) Treatment of dispositions of united states real 
        property.--In the case of a qualified resident of Taiwan, 
        section 897(a) shall be applied--
                    ``(A) by substituting `carried on a trade or 
                business within the United States through a United 
                States permanent establishment' for `were engaged in a 
                trade or business within the United States', and
                    ``(B) by substituting `such United States permanent 
                establishment' for `such trade or business'.
            ``(3) Treatment of branch profits taxes.--In the case of 
        any corporation which is a qualified resident of Taiwan, 
        section 884 shall be applied--
                    ``(A) by substituting `10 percent' for `30 percent 
                ' in subsection (a) thereof, and
                    ``(B) by substituting `a United States permanent 
                establishment of a qualified resident of Taiwan' for 
                `the conduct of a trade or business within the United 
                States' in subsection (d)(1) thereof.
            ``(4) Special rule with respect to income derived from 
        certain entertainment or athletic activities.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                the extent that the income is derived--
                            ``(i) in respect of entertainment or 
                        athletic activities performed in the United 
                        States, and
                            ``(ii) by a qualified resident of Taiwan 
                        who is not the entertainer or athlete 
                        performing such activities.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the person described in subparagraph (A)(ii) is 
                contractually authorized to designate the individual 
                who is to perform such activities.
            ``(5) Special rule with respect to certain amounts.--
        Paragraph (1) shall not apply to any income which is wages, 
        salaries, or similar remuneration with respect to employment or 
        with respect to any amount which is described in subsection 
        (a)(2)(B)(ii).
    ``(c) Qualified Resident of Taiwan.--For purposes of this section--
            ``(1) In general.--The term `qualified resident of Taiwan' 
        means any person who--
                    ``(A) is liable to tax under the laws of Taiwan by 
                reason of such person's domicile, residence, place of 
                management, place of incorporation, or any similar 
                criterion,
                    ``(B) is not a United States person (determined 
                without regard to paragraph (3)(E)), and
                    ``(C) in the case of an entity taxed as a 
                corporation in Taiwan, meets the requirements of 
                paragraph (2).
            ``(2) Limitation on benefits for corporate entities of 
        taiwan.--
                    ``(A) In general.--Subject to subparagraphs (E) and 
                (F), an entity meets the requirements of this paragraph 
                only if it--
                            ``(i) meets the ownership and income 
                        requirements of subparagraph (B),
                            ``(ii) meets the publicly traded 
                        requirements of subparagraph (C), or
                            ``(iii) meets the qualified subsidiary 
                        requirements of subparagraph (D).
                    ``(B) Ownership and income requirements.--The 
                requirements of this subparagraph are met for an entity 
                if--
                            ``(i) at least 50 percent (by vote and 
                        value) of the total outstanding shares of stock 
                        in such entity are owned directly or indirectly 
                        by qualified residents of Taiwan, and
                            ``(ii) less than 50 percent of such 
                        entity's gross income (and in the case of an 
                        entity that is a member of a tested group, less 
                        than 50 percent of the tested group's gross 
                        income) is paid or accrued, directly or 
                        indirectly, in the form of payments that are 
                        deductible for purposes of the income taxes 
                        imposed by Taiwan, to persons who are not--
                                    ``(I) qualified residents of 
                                Taiwan, or
                                    ``(II) United States persons who 
                                meet such requirements with respect to 
                                the United States as determined by the 
                                Secretary to be equivalent to the 
                                requirements of this subsection 
                                (determined without regard to paragraph 
                                (1)(B)) with respect to residents of 
                                Taiwan.
                    ``(C) Publicly traded requirements.--An entity 
                meets the requirements of this subparagraph if--
                            ``(i) the principal class of its shares 
                        (and any disproportionate class of shares) of 
                        such entity are primarily and regularly traded 
                        on an established securities market in Taiwan, 
                        or
                            ``(ii) the primary place of management and 
                        control of the entity is in Taiwan and all 
                        classes of its outstanding shares described in 
                        clause (i) are regularly traded on an 
                        established securities market in Taiwan.
                    ``(D) Qualified subsidiary requirements.--An entity 
                meets the requirement of this subparagraph if--
                            ``(i) at least 50 percent (by vote and 
                        value) of the total outstanding shares of the 
                        stock of such entity are owned directly or 
                        indirectly by 5 or fewer entities--
                                    ``(I) which meet the requirements 
                                of subparagraph (C), or
                                    ``(II) which are United States 
                                persons the principal class of the 
                                shares (and any disproportionate class 
                                of shares) of which are primarily and 
                                regularly traded on an established 
                                securities market in the United States, 
                                and
                            ``(ii) the entity meets the requirements of 
                        clause (ii) of subparagraph (B).
                    ``(E) Only indirect ownership through qualifying 
                intermediaries counted.--
                            ``(i) In general.--Stock in an entity owned 
                        by a person indirectly through 1 or more other 
                        persons shall not be treated as owned by such 
                        person in determining whether the person meets 
                        the requirements of subparagraph (B)(i) or 
                        (D)(i) unless all such other persons are 
                        qualifying intermediate owners.
                            ``(ii) Qualifying intermediate owners.--The 
                        term `qualifying intermediate owner' means a 
                        person that is--
                                    ``(I) a qualified resident of 
                                Taiwan, or
                                    ``(II) a resident of any other 
                                foreign country (other than a foreign 
                                country that is a foreign country of 
                                concern) that has in effect a 
                                comprehensive convention with the 
                                United States for the avoidance of 
                                double taxation.
                            ``(iii) Special rule for qualified 
                        subsidiaries.--For purposes of applying 
                        subparagraph (D)(i), the term `qualifying 
                        intermediate owner' shall include any person 
                        who is a United States person who meets such 
                        requirements with respect to the United States 
                        as determined by the Secretary to be equivalent 
                        to the requirements of this subsection 
                        (determined without regard to paragraph (1)(B)) 
                        with respect to residents of Taiwan.
                    ``(F) Certain payments not included.--In 
                determining whether the requirements of subparagraph 
                (B)(ii) or (D)(ii) are met with respect to an entity, 
                the following payments shall not be taken into account:
                            ``(i) Arm's-length payments by the entity 
                        in the ordinary course of business for services 
                        or tangible property.
                            ``(ii) In the case of a tested group, 
                        intra-group transactions.
            ``(3) Dual residents.--
                    ``(A) Rules for determination of status.--
                            ``(i) In general.--An individual who is an 
                        applicable dual resident and who is described 
                        in subparagraph (B), (C), or (D) shall be 
                        treated as a qualified resident of Taiwan.
                            ``(ii) Applicable dual resident.--For 
                        purposes of this paragraph, the term 
                        `applicable dual resident' means an individual 
                        who--
                                    ``(I) is not a United States 
                                citizen,
                                    ``(II) is a resident of the United 
                                States (determined without regard to 
                                subparagraph (E)), and
                                    ``(III) would be a qualified 
                                resident of Taiwan but for paragraph 
                                (1)(B).
                    ``(B) Permanent home.--An individual is described 
                in this subparagraph if such individual--
                            ``(i) has a permanent home available to 
                        such individual in Taiwan, and
                            ``(ii) does not have a permanent home 
                        available to such individual in the United 
                        States.
                    ``(C) Center of vital interests.--An individual is 
                described in this subparagraph if--
                            ``(i) such individual has a permanent home 
                        available to such individual in both Taiwan and 
                        the United States, and
                            ``(ii) such individual's personal and 
                        economic relations (center of vital interests) 
                        are closer to Taiwan than to the United States.
                    ``(D) Habitual abode.--An individual is described 
                in this subparagraph if--
                            ``(i) such individual--
                                    ``(I) does not have a permanent 
                                home available to such individual in 
                                either Taiwan or the United States, or
                                    ``(II) has a permanent home 
                                available to such individual in both 
                                Taiwan and the United States but such 
                                individual's center of vital interests 
                                under subparagraph (C)(ii) cannot be 
                                determined, and
                            ``(ii) such individual has a habitual abode 
                        in Taiwan and not the United States.
                    ``(E) United states tax treatment of qualified 
                resident of taiwan.--Notwithstanding section 7701, an 
                individual who is treated as a qualified resident of 
                Taiwan by reason of this paragraph for all or any 
                portion of a taxable year shall not be treated as a 
                resident of the United States for purposes of computing 
                such individual's United States income tax liability 
                for such taxable year or portion thereof.
            ``(4) Rules of special application.--
                    ``(A) Dividends.--For purposes of applying this 
                section to any dividend, paragraph (2)(D) shall be 
                applied without regard to clause (ii) thereof.
                    ``(B) Items of income emanating from an active 
                trade or business in taiwan.--For purposes of this 
                section--
                            ``(i) In general.--Notwithstanding the 
                        preceding paragraphs of this subsection, if an 
                        entity taxed as a corporation in Taiwan is not 
                        a qualified resident of Taiwan but meets the 
                        requirements of subparagraphs (A) and (B) of 
                        paragraph (1), any qualified item of income 
                        such entity derived from the United States 
                        shall be treated as income of a qualified 
                        resident of Taiwan.
                            ``(ii) Qualified items of income.--
                                    ``(I) In general.--The term 
                                `qualified item of income' means any 
                                item of income which emanates from, or 
                                is incidental to, the conduct of an 
                                active trade or business in Taiwan 
                                (other than operating as a holding 
                                company, providing overall supervision 
                                or administration of a group of 
                                companies, providing group financing, 
                                or making or managing investments 
                                (unless such making or managing 
                                investments is carried on by a bank, 
                                insurance company, or registered 
                                securities dealer in the ordinary 
                                course of its business as such)).
                                    ``(II) Substantial activity 
                                requirement.--An item of income which 
                                is derived from a trade or business 
                                conducted in the United States or from 
                                a connected person shall be a qualified 
                                item of income only if the trade or 
                                business activity conducted in Taiwan 
                                to which the item is related is 
                                substantial in relation to the same or 
                                a complementary trade or business 
                                activity carried on in the United 
                                States. For purposes of applying this 
                                subclause, activities conducted by 
                                persons that are connected to the 
                                entity described in clause (i) shall be 
                                deemed to be conducted by such entity.
                            ``(iii) Exception.--This subparagraph shall 
                        not apply to any item of income derived by an 
                        entity if at least 50 percent (by vote or 
                        value) of such entity is owned (directly or 
                        indirectly) or controlled by residents of a 
                        foreign country of concern.
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) United states permanent establishment.--
                    ``(A) In general.--The term `United States 
                permanent establishment' means, with respect to a 
                qualified resident of Taiwan, a permanent establishment 
                of such resident which is within the United States.
                    ``(B) Special rule.--The determination of whether 
                there is a permanent establishment of a qualified 
                resident of Taiwan within the United States shall be 
                made without regard to whether an entity which is taxed 
                as a corporation in Taiwan and which is a qualified 
                resident of Taiwan controls or is controlled by--
                            ``(i) a domestic corporation, or
                            ``(ii) any other person that carries on 
                        business in the United States (whether through 
                        a permanent establishment or otherwise).
            ``(2) Permanent establishment.--
                    ``(A) In general.--The term `permanent 
                establishment' means a fixed place of business through 
                which a trade or business is wholly or partly carried 
                on. Such term shall include--
                            ``(i) a place of management,
                            ``(ii) a branch,
                            ``(iii) an office,
                            ``(iv) a factory,
                            ``(v) a workshop, and
                            ``(vi) a mine, an oil or gas well, a 
                        quarry, or any other place of extraction of 
                        natural resources.
                    ``(B) Special rules for certain temporary 
                projects.--
                            ``(i) In general.--A building site or 
                        construction or installation project, or an 
                        installation or drilling rig or ship used for 
                        the exploration or exploitation of the sea bed 
                        and its subsoil and their natural resources, 
                        constitutes a permanent establishment only if 
                        it lasts, or the activities of the rig or ship 
                        lasts, for more than 12 months.
                            ``(ii) Determination of 12-month period.--
                        For purposes of clause (i), the period over 
                        which a building site or construction or 
                        installation project of a person lasts shall 
                        include any period of more than 30 days during 
                        which such person does not carry on activities 
                        at such building site or construction or 
                        installation project but connected activities 
                        are carried on at such building site or 
                        construction or installation project by one or 
                        more connected persons.
                    ``(C) Habitual exercise of contract authority 
                treated as permanent establishment.--Notwithstanding 
                subparagraphs (A) and (B), where a person (other than 
                an agent of an independent status to whom subparagraph 
                (D)(ii) applies) is acting on behalf of a trade or 
                business of a qualified resident of Taiwan and has and 
                habitually exercises an authority to conclude contracts 
                that are binding on the trade or business, that trade 
                or business shall be deemed to have a permanent 
                establishment in the country in which such authority is 
                exercised in respect of any activities that the person 
                undertakes for the trade or business, unless the 
                activities of such person are limited to those 
                described in subparagraph (D)(i) that, if exercised 
                through a fixed place of business, would not make this 
                fixed place of business a permanent establishment under 
                the provisions of that subparagraph.
                    ``(D) Exclusions.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), the term `permanent 
                        establishment' shall not include--
                                    ``(I) the use of facilities solely 
                                for the purpose of storage, display, or 
                                delivery of goods or merchandise 
                                belonging to the trade or business,
                                    ``(II) the maintenance of a stock 
                                of goods or merchandise belonging to 
                                the trade or business solely for the 
                                purpose of storage, display, or 
                                delivery,
                                    ``(III) the maintenance of a stock 
                                of goods or merchandise belonging to 
                                the trade or business solely for the 
                                purpose of processing by another trade 
                                or business,
                                    ``(IV) the maintenance of a fixed 
                                place of business solely for the 
                                purpose of purchasing goods or 
                                merchandise, or of collecting 
                                information, for the trade or business,
                                    ``(V) the maintenance of a fixed 
                                place of business solely for the 
                                purpose of carrying on, for the trade 
                                or business, any other activity of a 
                                preparatory or auxiliary character, or
                                    ``(VI) the maintenance of a fixed 
                                place of business solely for any 
                                combination of the activities mentioned 
                                in subclauses (I) through (V), provided 
                                that the overall activity of the fixed 
                                place of business resulting from this 
                                combination is of a preparatory or 
                                auxiliary character.
                            ``(ii) Brokers and other independent 
                        agents.--A trade or business shall not be 
                        considered to have a permanent establishment in 
                        a country merely because it carries on business 
                        in such country through a broker, general 
                        commission agent, or any other agent of an 
                        independent status, provided that such persons 
                        are acting in the ordinary course of their 
                        business as independent agents.
            ``(3) Tested group.--The term `tested group' includes, with 
        respect to any entity taxed as a corporation in Taiwan, such 
        entity and any other entity taxed as a corporation in Taiwan 
        that--
                    ``(A) participates as a member with such entity in 
                a tax consolidation, fiscal unity, or similar regime 
                that requires members of the group to share profits or 
                losses, or
                    ``(B) shares losses with such entity pursuant to a 
                group relief or other loss sharing regime.
            ``(4) Connected person.--Two persons shall be `connected 
        persons' if one owns, directly or indirectly, at least 50 
        percent of the interests in the other (or, in the case of a 
        corporation, at least 50 percent of the aggregate vote and 
        value of the corporation's shares) or another person owns, 
        directly or indirectly, at least 50 percent of the interests 
        (or, in the case of a corporation, at least 50 percent of the 
        aggregate vote and value of the corporation's shares) in each 
        person. In any case, a person shall be connected to another if, 
        based on all the relevant facts and circumstances, one has 
        control of the other or both are under the control of the same 
        person or persons.
            ``(5) Foreign country of concern.--The term `foreign 
        country of concern' has the meaning given such term under 
        paragraph (7) of section 9901 of the William M. (Mac) 
        Thornberry National Defense Authorization Act for Fiscal Year 
        2021 (15 U.S.C. 4651(7)), as added by section 103(a)(4) of the 
        CHIPS Act of 2022).
            ``(6) Partnerships; beneficiaries of estates and trusts.--
        For purposes of this section--
                    ``(A) a qualified resident of Taiwan which is a 
                partner of a partnership which carries on a trade or 
                business within the United States through a United 
                States permanent establishment shall be treated as 
                carrying on such trade or business through such 
                permanent establishment, and
                    ``(B) a qualified resident of Taiwan which is a 
                beneficiary of an estate or trust which carries on a 
                trade or business within the United States through a 
                United States permanent establishment shall be treated 
                as carrying on such trade or business through such 
                permanent establishment.
            ``(7) Denial of benefits for certain payments through 
        hybrid entities.--For purposes of this section, rules similar 
        to the rules of section 894(c) shall apply.
    ``(e) Application.--
            ``(1) In general.--This section shall not apply to any 
        period unless the Secretary has determined that Taiwan has 
        provided benefits to United States persons for such period that 
        are reciprocal to the benefits provided to qualified residents 
        of Taiwan under this section.
            ``(2) Provision of reciprocity.--The President or his 
        designee is authorized to exchange letters, enter into an 
        agreement, or take other necessary and appropriate steps 
        relative to Taiwan for the reciprocal provision of the benefits 
        described in this section.
    ``(f) Regulations or Other Guidance.--
            ``(1) In general.--The Secretary shall issue such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out the provisions of this section, 
        including such regulations or guidance for--
                    ``(A) determining--
                            ``(i) what constitutes a United States 
                        permanent establishment of a qualified resident 
                        of Taiwan, and
                            ``(ii) income that is effectively connected 
                        with such a permanent establishment,
                    ``(B) preventing the abuse of the provisions of 
                this section by persons who are not (or who should not 
                be treated as) qualified residents of Taiwan,
                    ``(C) requirements for record keeping and 
                reporting,
                    ``(D) rules to assist withholding agents or 
                employers in determining whether a foreign person is a 
                qualified resident of Taiwan for purposes of 
                determining whether withholding or reporting is 
                required for a payment (and, if withholding is 
                required, whether it should be applied at a reduced 
                rate),
                    ``(E) the application of subsection (a)(1)(D)(i) to 
                stock held by predecessor owners,
                    ``(F) determining what amounts are to be treated as 
                qualified wages for purposes of subsection (a)(2),
                    ``(G) determining the amounts to which subsection 
                (a)(3) applies,
                    ``(H) defining established securities market for 
                purposes of subsection (c),
                    ``(I) the application of the rules of subsection 
                (c)(4)(B),
                    ``(J) the application of subsection (d)(6) and 
                section 1446,
                    ``(K) determining ownership interests held by 
                residents of a foreign country of concern, and
                    ``(L) determining the starting and ending dates for 
                periods with respect to the application of this section 
                under subsection (e), which may be separate dates for 
                taxes withheld at the source and other taxes.
            ``(2) Regulations to be consistent with model treaty.--Any 
        regulations or other guidance issued under this section shall, 
        to the extent practical, be consistent with the provisions of 
        the United States model income tax convention dated February 7, 
        2016.''.
    (b) Conforming Amendment to Withholding Tax.--Subchapter A of 
chapter 3 is amended by adding at the end the following new section:

``SEC. 1447. WITHHOLDING FOR QUALIFIED RESIDENTS OF TAIWAN.

    ``For reduced rates of withholding for certain residents of Taiwan, 
see section 894A.''.
    (c) Clerical Amendments.--
            (1) The table of sections for subpart D of part II of 
        subchapter N of chapter 1 is amended by inserting after the 
        item relating to section 894 the following new item:

``Sec. 894A. Special rules for qualified residents of Taiwan.''.
            (2) The table of sections for subchapter A of chapter 3 is 
        amended by adding at the end the following new item:

``Sec. 1447. Withholding for qualified residents of Taiwan.''.

    Subtitle B--United States-Taiwan Tax Agreement Authorization Act

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``United States-Taiwan Tax 
Agreement Authorization Act''.

SEC. 312. DEFINITIONS.

    In this subtitle:
            (1) Agreement.--The term ``Agreement'' means the tax 
        agreement authorized by section 313(a).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations and the 
                Committee on Finance of the Senate; and
                    (B) the Committee on Ways and Means of the House of 
                Representatives.
            (3) Approval legislation.--The term ``approval 
        legislation'' means legislation that approves the Agreement.
            (4) Implementing legislation.--The term ``implementing 
        legislation'' means legislation that makes any changes to the 
        Internal Revenue Code of 1986 necessary to implement the 
        Agreement.

SEC. 313. AUTHORIZATION TO NEGOTIATE AND ENTER INTO AGREEMENT.

    (a) In General.--Subsequent to a determination under section 
894A(e)(1) of the Internal Revenue Code of 1986 (as added by the United 
States-Taiwan Expedited Double-Tax Relief Act), the President is 
authorized to negotiate and enter into a tax agreement relative to 
Taiwan.
    (b) Elements of Agreement.--
            (1) Conformity with bilateral income tax conventions.--The 
        President shall ensure that--
                    (A) any provisions included in the Agreement 
                conform with provisions customarily contained in United 
                States bilateral income tax conventions, as exemplified 
                by the 2016 United States Model Income Tax Convention; 
                and
                    (B) the Agreement does not include elements outside 
                the scope of the 2016 United States Model Income Tax 
                Convention.
            (2) Incorporation of tax agreements and laws.--
        Notwithstanding paragraph (1), the Agreement may incorporate 
        and restate provisions of any agreement, or existing United 
        States law, addressing double taxation for residents of the 
        United States and Taiwan.
            (3) Authority.--The Agreement shall include the following 
        statement: ``The Agreement is entered into pursuant to the 
        United States-Taiwan Tax Agreement Authorization Act.''
            (4) Entry into force.--The Agreement shall include a 
        provision conditioning entry into force upon--
                    (A) enactment of approval legislation and 
                implementing legislation pursuant to section 317; and
                    (B) confirmation by the Secretary of the Treasury 
                that the relevant authority in Taiwan has approved and 
                taken appropriate steps required to implement the 
                Agreement.

SEC. 314. CONSULTATIONS WITH CONGRESS.

    (a) Notification Upon Commencement of Negotiations.--The President 
shall provide written notification to the appropriate congressional 
committees of the commencement of negotiations between the United 
States and Taiwan on the Agreement at least 15 calendar days before 
commencing such negotiations.
    (b) Consultations During Negotiations.--
            (1) Briefings.--Not later than 90 days after commencement 
        of negotiations with respect to the Agreement, and every 180 
        days thereafter until the President enters into the Agreement, 
        the President shall provide a briefing to the appropriate 
        congressional committees on the status of the negotiations, 
        including a description of elements under negotiation.
            (2) Meetings and other consultations.--
                    (A) In general.--In the course of negotiations with 
                respect to the Agreement, the Secretary of the 
                Treasury, in coordination with the Secretary of State, 
                shall--
                            (i) meet, upon request, with the chairman 
                        or ranking member of any of the appropriate 
                        congressional committees regarding negotiating 
                        objectives and the status of negotiations in 
                        progress; and
                            (ii) consult closely and on a timely basis 
                        with, and keep fully apprised of the 
                        negotiations, the appropriate congressional 
                        committees.
                    (B) Elements of consultations.--The consultations 
                described in subparagraph (A) shall include 
                consultations with respect to--
                            (i) the nature of the contemplated 
                        Agreement;
                            (ii) how and to what extent the 
                        contemplated Agreement is consistent with the 
                        elements set forth in section 313(b); and
                            (iii) the implementation of the 
                        contemplated Agreement, including--
                                    (I) the general effect of the 
                                contemplated Agreement on existing 
                                laws;
                                    (II) proposed changes to any 
                                existing laws to implement the 
                                contemplated Agreement; and
                                    (III) proposed administrative 
                                actions to implement the contemplated 
                                Agreement.

SEC. 315. APPROVAL AND IMPLEMENTATION OF AGREEMENT.

    (a) In General.--The Agreement may not enter into force unless--
            (1) the President, at least 60 days before the day on which 
        the President enters into the Agreement, publishes the text of 
        the contemplated Agreement on a publicly available website of 
        the Department of the Treasury; and
            (2) there is enacted into law, with respect to the 
        Agreement, approval legislation and implementing legislation 
        pursuant to section 317.
    (b) Entry Into Force.--The President may provide for the Agreement 
to enter into force upon--
            (1) enactment of approval legislation and implementing 
        legislation pursuant to section 317; and
            (2) confirmation by the Secretary of the Treasury that the 
        relevant authority in Taiwan has approved and taken appropriate 
        steps required to implement the Agreement.

SEC. 316. SUBMISSION TO CONGRESS OF AGREEMENT AND IMPLEMENTATION 
              POLICY.

    (a) Submission of Agreement.--Not later than 270 days after the 
President enters into the Agreement, the President or the President's 
designee shall submit to Congress--
            (1) the final text of the Agreement; and
            (2) a technical explanation of the Agreement.
    (b) Submission of Implementation Policy.--Not later than 270 days 
after the President enters into the Agreement, the Secretary of the 
Treasury shall submit to Congress--
            (1) a description of those changes to existing laws that 
        the President considers would be required in order to ensure 
        that the United States acts in a manner consistent with the 
        Agreement; and
            (2) a statement of anticipated administrative action 
        proposed to implement the Agreement.

SEC. 317. CONSIDERATION OF APPROVAL LEGISLATION AND IMPLEMENTING 
              LEGISLATION.

    (a) In General.--The approval legislation with respect to the 
Agreement shall include the following: ``Congress approves the 
Agreement submitted to Congress pursuant to section 316 of the United 
States-Taiwan Tax Agreement Authorization Act on ____.'', with the 
blank space being filled with the appropriate date.
    (b) Approval Legislation Committee Referral.--The approval 
legislation shall--
            (1) in the Senate, be referred to the Committee on Foreign 
        Relations; and
            (2) in the House of Representaives, be referred to the 
        Committee on Ways and Means.
    (c) Implementing Legislation Committee Referral.--The implementing 
legislation shall--
            (1) in the Senate, be referred to the Committee on Finance; 
        and
            (2) in the House of Representatives, be referred to the 
        Committee on Ways and Means.

SEC. 318. RELATIONSHIP OF AGREEMENT TO INTERNAL REVENUE CODE OF 1986.

    (a) Internal Revenue Code of 1986 to Control.--No provision of the 
Agreement or approval legislation, nor the application of any such 
provision to any person or circumstance, which is inconsistent with any 
provision of the Internal Revenue Code of 1986, shall have effect.
    (b) Construction.--Nothing in this subtitle shall be construed--
            (1) to amend or modify any law of the United States; or
            (2) to limit any authority conferred under any law of the 
        United States,
unless specifically provided for in this subtitle.

SEC. 319. AUTHORIZATION OF SUBSEQUENT TAX AGREEMENTS RELATIVE TO 
              TAIWAN.

    (a) In General.--Subsequent to the enactment of approval 
legislation and implementing legislation pursuant to section 317--
            (1) the term ``tax agreement'' in section 313(a) shall be 
        treated as including any tax agreement relative to Taiwan which 
        supplements or supersedes the Agreement to which such approval 
        legislation and implementing legislation relates, and
            (2) the term ``Agreement'' shall be treated as including 
        such tax agreement.
    (b) Requirements, etc., To Apply Separately.--The provisions of 
this subtitle (including section 314) shall be applied separately with 
respect to each tax agreement referred to in subsection (a).

SEC. 320. UNITED STATES TREATMENT OF DOUBLE TAXATION MATTERS WITH 
              RESPECT TO TAIWAN.

    (a) Findings.--Congress makes the following findings:
            (1) The United States addresses issues with respect to 
        double taxation with foreign countries by entering into 
        bilateral income tax conventions (known as tax treaties) with 
        such countries, subject to the advice and consent of the Senate 
        to ratification pursuant to article II of the Constitution.
            (2) The United States has entered into more than sixty such 
        tax treaties, which facilitate economic activity, strengthen 
        bilateral cooperation, and benefit United States workers, 
        businesses, and other United States taxpayers.
            (3) Due to Taiwan's unique status, the United States is 
        unable to enter into an article II tax treaty with Taiwan, 
        necessitating an agreement to address issues with respect to 
        double taxation.
    (b) Statement of Policy.--It is the policy of the United States 
to--
            (1) provide for additional bilateral tax relief with 
        respect to Taiwan, beyond that provided for in section 894A of 
        the Internal Revenue Code of 1986 (as added by the United 
        States-Taiwan Expedited Double-Tax Relief Act), only after 
        entry into force of an Agreement, as provided for in section 
        315, and only in a manner consistent with such Agreement; and
            (2) continue to provide for bilateral tax relief with 
        sovereign states to address double taxation and other related 
        matters through entering into bilateral income tax conventions, 
        subject to the Senate's advice and consent to ratification 
        pursuant to article II of the Constitution.

         TITLE IV--ASSISTANCE FOR DISASTER-IMPACTED COMMUNITIES

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Federal Disaster Tax Relief Act of 
2024''.

SEC. 402. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-RELATED 
              PERSONAL CASUALTY LOSSES.

    For purposes of applying section 304(b) of the Taxpayer Certainty 
and Disaster Tax Relief Act of 2020, section 301 of such Act shall be 
applied by substituting ``the Federal Disaster Tax Relief Act of 2024'' 
for ``this Act'' each place it appears.

SEC. 403. EXCLUSION FROM GROSS INCOME FOR COMPENSATION FOR LOSSES OR 
              DAMAGES RESULTING FROM CERTAIN WILDFIRES.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income shall not include any amount received by an individual as 
a qualified wildfire relief payment.
    (b) Qualified Wildfire Relief Payment.--For purposes of this 
section--
            (1) In general.--The term ``qualified wildfire relief 
        payment'' means any amount received by or on behalf of an 
        individual as compensation for losses, expenses, or damages 
        (including compensation for additional living expenses, lost 
        wages (other than compensation for lost wages paid by the 
        employer which would have otherwise paid such wages), personal 
        injury, death, or emotional distress) incurred as a result of a 
        qualified wildfire disaster, but only to the extent the losses, 
        expenses, or damages compensated by such payment are not 
        compensated for by insurance or otherwise.
            (2) Qualified wildfire disaster.--The term ``qualified 
        wildfire disaster'' means any federally declared disaster (as 
        defined in section 165(i)(5)(A) of the Internal Revenue Code of 
        1986) declared, after December 31, 2014, as a result of any 
        forest or range fire.
    (c) Denial of Double Benefit.--Notwithstanding any other provision 
of the Internal Revenue Code of 1986--
            (1) no deduction or credit shall be allowed (to the person 
        for whose benefit a qualified wildfire relief payment is made) 
        for, or by reason of, any expenditure to the extent of the 
        amount excluded under this section with respect to such 
        expenditure, and
            (2) no increase in the basis or adjusted basis of any 
        property shall result from any amount excluded under this 
        subsection with respect to such property.
    (d) Limitation on Application.--This section shall only apply to 
qualified wildfire relief payments received by the individual during 
taxable years beginning after December 31, 2019, and before January 1, 
2026.

SEC. 404. EAST PALESTINE DISASTER RELIEF PAYMENTS.

    (a) Disaster Relief Payments to Victims of East Palestine Train 
Derailment.--East Palestine train derailment payments shall be treated 
as qualified disaster relief payments for purposes of section 139(b) of 
the Internal Revenue Code of 1986.
    (b) East Palestine Train Derailment Payments.--For purposes of this 
section, the term ``East Palestine train derailment payment'' means any 
amount received by or on behalf of an individual as compensation for 
loss, damages, expenses, loss in real property value, closing costs 
with respect to real property (including realtor commissions), or 
inconvenience (including access to real property) resulting from the 
East Palestine train derailment if such amount was provided by--
            (1) a Federal, State, or local government agency,
            (2) Norfolk Southern Railway, or
            (3) any subsidiary, insurer, or agent of Norfolk Southern 
        Railway or any related person.
    (c) Train Derailment.--For purposes of this section, the term 
``East Palestine train derailment'' means the derailment of a train in 
East Palestine, Ohio, on February 3, 2023.
    (d) Effective Date.--This section shall apply to amounts received 
on or after February 3, 2023.

                    TITLE V--MORE AFFORDABLE HOUSING

SEC. 501. STATE HOUSING CREDIT CEILING INCREASE FOR LOW-INCOME HOUSING 
              CREDIT.

    (a) In General.--Section 42(h)(3)(I) is amended--
            (1) by striking ``and 2021,'' and inserting ``2021, 2023, 
        2024, and 2025,'', and
            (2) by striking ``2018, 2019, 2020, and 2021'' in the 
        heading and inserting ``certain calendar years''.
    (b) Effective Date.--The amendments made by this section shall 
apply to calendar years after 2022.

SEC. 502. TAX-EXEMPT BOND FINANCING REQUIREMENT.

    (a) In General.--Section 42(h)(4) is amended by striking 
subparagraph (B) and inserting the following:
                    ``(B) Special rule where minimum percent of 
                buildings is financed with tax-exempt bonds subject to 
                volume cap.--For purposes of subparagraph (A), 
                paragraph (1) shall not apply to any portion of the 
                credit allowable under subsection (a) with respect to a 
                building if--
                            ``(i) 50 percent or more of the aggregate 
                        basis of such building and the land on which 
                        the building is located is financed by 1 or 
                        more obligations described in subparagraph (A), 
                        or
                            ``(ii)(I) 30 percent or more of the 
                        aggregate basis of such building and the land 
                        on which the building is located is financed by 
                        1 or more qualified obligations, and
                            ``(II) 1 or more of such qualified 
                        obligations--
                                    ``(aa) are part of an issue the 
                                issue date of which is after December 
                                31, 2023, and
                                    ``(bb) provide the financing for 
                                not less than 5 percent of the 
                                aggregate basis of such building and 
                                the land on which the building is 
                                located.
                    ``(C) Qualified obligation.--For purposes of 
                subparagraph (B)(ii), the term `qualified obligation' 
                means an obligation which is described in subparagraph 
                (A) and which is part of an issue the issue date of 
                which is before January 1, 2026.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to buildings placed in service in taxable years beginning 
        after December 31, 2023.
            (2) Rehabilitation expenditures treated as separate new 
        building.--In the case of any building with respect to which 
        any expenditures are treated as a separate new building under 
        section 42(e) of the Internal Revenue Code of 1986, for 
        purposes of paragraph (1), both the existing building and the 
        separate new building shall be treated as having been placed in 
        service on the date such expenditures are treated as placed in 
        service under section 42(e)(4) of such Code.

           TITLE VI--TAX ADMINISTRATION AND ELIMINATING FRAUD

SEC. 601. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING 
              WITH RESPECT TO CERTAIN PAYEES.

    (a) In General.--Sections 6041(a) is amended by striking ``$600'' 
and inserting ``$1,000''.
    (b) Inflation Adjustment.--Section 6041 is amended by adding at the 
end the following new subsection:
    ``(h) Inflation Adjustment.--In the case of any calendar year after 
2024, the dollar amount in subsection (a) shall be increased by an 
amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year, determined by 
        substituting `calendar year 2023' for `calendar year 2016' in 
        subparagraph (A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $100, 
such increase shall be rounded to the nearest multiple of $100.''.
    (c) Application to Reporting on Remuneration for Services and 
Direct Sales.--Section 6041A is amended--
            (1) in subsection (a)(2), by striking ``is $600 or more'' 
        and inserting ``equals or exceeds the dollar amount in effect 
        for such calendar year under section 6041(a)'', and
            (2) in subsection (b)(1)(B), by striking ``is $5,000 or 
        more'' and inserting ``equals or exceeds the dollar amount in 
        effect for such calendar year under section 6041(a)''.
    (d) Application To Backup Withholding.--Section 3406(b)(6) is 
amended--
            (1) by striking ``$600'' in subparagraph (A) and inserting 
        ``the dollar amount in effect for such calendar year under 
        section 6041(a)'', and
            (2) by striking ``only where aggregate for calendar year is 
        $600 or more'' in the heading and inserting ``only if in excess 
        of threshold''.
    (e) Conforming Amendments.--
            (1) The heading of section 6041(a) is amended by striking 
        ``of $600 or More'' and inserting ``Exceeding Threshold''.
            (2) Section 6041(a) is amended by striking ``taxable year'' 
        and inserting ``calendar year''.
    (f) Effective Date.--The amendments made by this section shall 
apply with respect to payments made after December 31, 2023.

SEC. 602. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID-RELATED EMPLOYEE 
              RETENTION CREDITS.

    (a) Increase in Assessable Penalty on COVID-ERTC Promoters for 
Aiding and Abetting Understatements of Tax Liability.--If any COVID-
ERTC promoter is subject to penalty under section 6701(a) of the 
Internal Revenue Code of 1986 with respect to any COVID-ERTC document, 
notwithstanding paragraphs (1) and (2) of section 6701(b) of such Code, 
the amount of the penalty imposed under such section 6701(a) shall be 
the greater of--
            (1) $200,000 ($10,000, in the case of a natural person), or
            (2) 75 percent of the gross income derived (or to be 
        derived) by such promoter with respect to the aid, assistance, 
        or advice referred to in section 6701(a)(1) of such Code with 
        respect to such document.
    (b) Failure To Comply With Due Diligence Requirements Treated as 
Knowledge for Purposes of Assessable Penalty for Aiding and Abetting 
Understatement of Tax Liability.--In the case of any COVID-ERTC 
promoter, the knowledge requirement of section 6701(a)(3) of the 
Internal Revenue Code of 1986 shall be treated as satisfied with 
respect to any COVID-ERTC document with respect to which such promoter 
provided aid, assistance, or advice, if such promoter fails to comply 
with the due diligence requirements referred to in subsection (c)(1).
    (c) Assessable Penalty for Failure To Comply With Due Diligence 
Requirements.--
            (1) In general.--Any COVID-ERTC promoter which provides 
        aid, assistance, or advice with respect to any COVID-ERTC 
        document and which fails to comply with due diligence 
        requirements imposed by the Secretary with respect to 
        determining eligibility for, or the amount of, any COVID-
        related employee retention tax credit, shall pay a penalty of 
        $1,000 for each such failure.
            (2) Due diligence requirements.--Except as otherwise 
        provided by the Secretary, the due diligence requirements 
        referred to in paragraph (1) shall be similar to the due 
        diligence requirements imposed under section 6695(g).
            (3) Restriction to documents used in connection with 
        returns or claims for refund.--Paragraph (1) shall not apply 
        with respect to any COVID-ERTC document unless such document 
        constitutes, or relates to, a return or claim for refund.
            (4) Treatment as assessable penalty, etc.--For purposes of 
        the Internal Revenue Code of 1986, the penalty imposed under 
        paragraph (1) shall be treated in the same manner as a penalty 
        imposed under section 6695(g).
            (5) Secretary.--For purposes of this subsection, the term 
        ``Secretary'' means the Secretary of the Treasury or the 
        Secretary's delegate.
    (d) Assessable Penalties for Failure To Disclose Information, 
Maintain Client Lists, etc.--For purposes of sections 6111, 6112, 6707 
and 6708 of the Internal Revenue Code of 1986--
            (1) any COVID-Related employee retention tax credit 
        (whether or not the taxpayer claims such COVID-Related employee 
        retention tax credit) shall be treated as a listed transaction 
        (and as a reportable transaction) with respect to any COVID-
        ERTC promoter if such promoter provides any aid, assistance, or 
        advice with respect to any COVID-ERTC document relating to such 
        COVID-related employee retention tax credit, and
            (2) such COVID-ERTC promoter shall be treated as a material 
        advisor with respect to such transaction.
    (e) COVID-ERTC Promoter.--For purposes of this section--
            (1) In general.--The term ``COVID-ERTC promoter'' means, 
        with respect to any COVID-ERTC document, any person which 
        provides aid, assistance, or advice with respect to such 
        document if--
                    (A) such person charges or receives a fee for such 
                aid, assistance, or advice which is based on the amount 
                of the refund or credit with respect to such document, 
                or
                    (B) with respect to such person's taxable year in 
                which such person provided such assistance or the 
                preceding taxable year--
                            (i) the aggregate gross receipts of such 
                        person for aid, assistance, and advice with 
                        respect to all COVID-ERTC documents exceeds 50 
                        percent of the gross receipts of such person 
                        for such taxable year, or
                            (ii) both--
                                    (I) such aggregate gross receipts 
                                exceeds 20 percent of the gross 
                                receipts of such person for such 
                                taxable year, and
                                    (II) the aggregate gross receipts 
                                of such person for aid, assistance, and 
                                advice with respect to all COVID-ERTC 
                                documents (determined after application 
                                of paragraph (3)) exceeds $500,000.
            (2) Exception for certified professional employer 
        organizations.--The term ``COVID-ERTC promoter'' shall not 
        include a certified professional employer organization (as 
        defined in section 7705).
            (3) Aggregation rule.--For purposes of paragraph 
        (1)(B)(ii)(II), all persons treated as a single employer under 
        subsection (a) or (b) of section 52 of the Internal Revenue 
        Code of 1986, or subsection (m) or (o) of section 414 of such 
        Code, shall be treated as 1 person.
            (4) Short taxable years.--In the case of any taxable year 
        of less than 12 months, paragraph (1) shall be applied with 
        respect to the calendar year in which such taxable year begins 
        (in addition to applying to such taxable year).
    (f) COVID-ERTC Document.--For purposes of this section, the term 
``COVID-ERTC document'' means any return, affidavit, claim, or other 
document related to any COVID-related employee retention tax credit, 
including any document related to eligibility for, or the calculation 
or determination of any amount directly related to any COVID-related 
employee retention tax credit.
    (g) COVID-Related Employee Retention Tax Credit.--For purposes of 
this section, the term ``COVID-related employee retention tax credit'' 
means--
            (1) any credit, or advance payment, under section 3134 of 
        the Internal Revenue Code of 1986, and
            (2) any credit, or advance payment, under section 2301 of 
        the CARES Act.
    (h) Limitation on Credit and Refund of COVID-Related Employee 
Retention Tax Credits.--Notwithstanding section 6511 of the Internal 
Revenue Code of 1986 or any other provision of law, no credit or refund 
of any COVID-related employee retention tax credit shall be allowed or 
made after January 31, 2024, unless a claim for such credit or refund 
is filed by the taxpayer on or before such date.
    (i) Amendments To Extend Limitation on Assessment.--
            (1) In general.--Section 3134(l) of the Internal Revenue 
        Code of 1986 is amended to read as follows:
    ``(l) Extension of Limitation on Assessment.--
            ``(1) In general.--Notwithstanding section 6501, the 
        limitation on the time period for the assessment of any amount 
        attributable to a credit claimed under this section shall not 
        expire before the date that is 6 years after the latest of--
                    ``(A) the date on which the original return which 
                includes the calendar quarter with respect to which 
                such credit is determined is filed,
                    ``(B) the date on which such return is treated as 
                filed under section 6501(b)(2), or
                    ``(C) the date on which the claim for credit or 
                refund with respect to such credit is made.
            ``(2) Deduction for wages taken into account in determining 
        improperly claimed credit.--
                    ``(A) In general.--Notwithstanding section 6511, in 
                the case of an assessment attributable to a credit 
                claimed under this section, the limitation on the time 
                period for credit or refund of any amount attributable 
                to a deduction for improperly claimed ERTC wages shall 
                not expire before the time period for such assessment 
                expires under paragraph (1).
                    ``(B) Improperly claimed ertc wages.--For purposes 
                of this paragraph, the term `improperly claimed ERTC 
                wages' means, with respect to an assessment 
                attributable to a credit claimed under this section, 
                the wages with respect to which a deduction would not 
                have been allowed if the portion of the credit to which 
                such assessment relates had been properly claimed.''.
            (2) Application to cares act credit.--Section 2301 of the 
        CARES Act is amended by adding at the end the following new 
        subsection:
    ``(o) Extension of Limitation on Assessment.--
            ``(1) In general.--Notwithstanding section 6501 of the 
        Internal Revenue Code of 1986, the limitation on the time 
        period for the assessment of any amount attributable to a 
        credit claimed under this section shall not expire before the 
        date that is 6 years after the latest of--
                    ``(A) the date on which the original return which 
                includes the calendar quarter with respect to which 
                such credit is determined is filed,
                    ``(B) the date on which such return is treated as 
                filed under section 6501(b)(2) of such Code, or
                    ``(C) the date on which the claim for credit or 
                refund with respect to such credit is made.
            ``(2) Deduction for wages taken into account in determining 
        improperly claimed credit.--
                    ``(A) In general.--Notwithstanding section 6511 of 
                such Code, in the case of an assessment attributable to 
                a credit claimed under this section, the limitation on 
                the time period for credit or refund of any amount 
                attributable to a deduction for improperly claimed ERTC 
                wages shall not expire before the time period for such 
                assessment expires under paragraph (1).
                    ``(B) Improperly claimed ertc wages.--For purposes 
                of this paragraph, the term `improperly claimed ERTC 
                wages' means, with respect to an assessment 
                attributable to a credit claimed under this section, 
                the wages with respect to which a deduction would not 
                have been allowed if the portion of the credit to which 
                such assessment relates had been properly claimed.''.
    (j) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the provisions of this section shall apply to aid, 
        assistance, and advice provided after March 12, 2020.
            (2) Due diligence requirements.--Subsections (b) and (c) 
        shall apply to aid, assistance, and advice provided after the 
        date of the enactment of this Act.
            (3) Limitation on credit and refund of covid-related 
        employee retention tax credits.--Subsection (h) shall apply to 
        credits and refunds allowed or made after January 31, 2024.
            (4) Amendments to extend limitation on assessment.--The 
        amendments made by subsection (i) shall apply to assessments 
        made after the date of the enactment of this Act.
    (k) Transition Rule With Respect to Requirements To Disclose 
Information, Maintain Client Lists, etc.--Any return under section 6111 
of the Internal Revenue Code of 1986, or list under section 6112 of 
such Code, required by reason of subsection (d) of this section to be 
filed or maintained, respectively, with respect to any aid, assistance, 
or advice provided by a COVID-ERTC promoter with respect to a COVID-
ERTC document before the date of the enactment of this Act, shall not 
be required to be so filed or maintained (with respect to such aid, 
assistance or advice) before the date which is 90 days after such date.
    (l) Provisions Not To Be Construed to Create Negative Inferences.--
            (1) Knowledge requirement for purposes of penalty for 
        aiding and abetting understatement of tax liability.--
        Subsection (b) shall not be construed to create any inference 
        with respect to the proper application of section 6701(a)(3) of 
        the Internal Revenue Code of 1986 with respect to any aid, 
        assistance, or advice other than the aid, assistance, or advice 
        to which such subsection applies.
            (2) Requirements to disclose information, maintain client 
        lists, etc.--Subsections (d) and (k) shall not be construed to 
        create any inference with respect to whether any COVID-related 
        employee retention tax credit is (without regard to subsection 
        (d)) a listed transaction (or reportable transaction) with 
        respect to any COVID-ERTC promoter; and, for purposes of 
        subsection (j), a return or list shall not be treated as 
        required (with respect to such aid, assistance, or advice) by 
        reason of subsection (d) if such return or list would be so 
        required without regard to subsection (d).
    (m) Regulations.--The Secretary (as defined in subsection (c)(5)) 
shall issue such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section (and the 
amendments made by this section).
                                 <all>
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