II 

Calendar No. 499 

112TH CONGRESS 

2D SESSION S. 3521 

[Report No. 112–208] 

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

provisions. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 28, 2012 

Mr. BAUCUS, from the Committee on Finance, reported, under authority of 

the order of the Senate of August 2, 2012, the following original bill; 

which was read twice and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

certain expiring provisions. 

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

3 SECTION 1. SHORT TITLE; ETC. 

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

5 ‘‘Family and Business Tax Cut Certainty Act of 2012’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amendVerDate Mar 15 2010 21:13 Aug 28, 2012 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.RS S3521

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1 ment or repeal is expressed in terms of an amendment 

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

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

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

6 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—INDIVIDUAL TAX PROVISIONS 

Subtitle A—Alternative Minimum Tax Relief 

Sec. 101. Extension of increased alternative minimum tax exemption amount. 

Sec. 102. Extension of alternative minimum tax relief for nonrefundable personal credits. 

Subtitle B—Other Individual Tax Provisions 

Sec. 111. Extension of deduction for certain expenses of elementary and secondary school teachers. 

Sec. 112. Extension of exclusion from gross income of discharge of qualified 

principal residence indebtedness. 

Sec. 113. Extension of parity for exclusion from income for employer-provided 

mass transit and parking benefits. 

Sec. 114. Extension of mortgage insurance premiums treated as qualified residence interest. 

Sec. 115. Extension of deduction of State and local general sales taxes. 

Sec. 116. Extension of special rule for contributions of capital gain real property made for conservation purposes. 

Sec. 117. Extension of above-the-line deduction for qualified tuition and related 

expenses. 

Sec. 118. Extension of tax-free distributions from individual retirement plans 

for charitable purposes. 

Subtitle C—Tax Administration 

Sec. 121. Improve and make permanent the provision authorizing the Internal 

Revenue Service to disclose certain return and return information to certain prison officials. 

Sec. 122. Extension of rule disregarding refunds in the administration of Federal programs and Federally assisted programs. 

TITLE II—BUSINESS TAX EXTENDERS 

Sec. 201. Extension and modification of research credit. 

Sec. 202. Extension of temporary minimum low-income tax credit rate for nonfederally subsidized new buildings. 

Sec. 203. Extension of housing allowance exclusion for determining area median gross income for qualified residential rental project exempt facility bonds. 


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Sec. 204. Extension of Indian employment tax credit. 

Sec. 205. Extension of new markets tax credit. 

Sec. 206. Extension of railroad track maintenance credit. 

Sec. 207. Extension of mine rescue team training credit. 

Sec. 208. Extension of employer wage credit for employees who are active duty 

members of the uniformed services. 

Sec. 209. Extension of work opportunity tax credit. 

Sec. 210. Extension of qualified zone academy bonds. 

Sec. 211. Extension of 15-year straight-line cost recovery for qualified leasehold 

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

Sec. 212. Extension of 7-year recovery period for motorsports entertainment 

complexes. 

Sec. 213. Extension of accelerated depreciation for business property on an Indian reservation. 

Sec. 214. Extension of enhanced charitable deduction for contributions of food 

inventory. 

Sec. 215. Extension of increased expensing limitations and treatment of certain 

real property as section 179 property. 

Sec. 216. Extension of election to expense mine safety equipment. 

Sec. 217. Extension of special expensing rules for certain film and television 

productions. 

Sec. 218. Extension of deduction allowable with respect to income attributable 

to domestic production activities in Puerto Rico. 

Sec. 219. Extension of modification of tax treatment of certain payments to 

controlling exempt organizations. 

Sec. 220. Extension of treatment of certain dividends of regulated investment 

companies. 

Sec. 221. Extension of RIC qualified investment entity treatment under 

FIRPTA. 

Sec. 222. Extension of subpart F exception for active financing income. 

Sec. 223. Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding 

company rules. 

Sec. 224. Extension of temporary exclusion of 100 percent of gain on certain 

small business stock. 

Sec. 225. Extension of basis adjustment to stock of S corporations making 

charitable contributions of property. 

Sec. 226. Extension of reduction in S-corporation recognition period for builtin gains tax. 

Sec. 227. Extension of empowerment zone tax incentives. 

Sec. 228. Extension of tax-exempt financing for New York Liberty Zone. 

Sec. 229. Extension of temporary increase in limit on cover over of rum excise 

taxes to Puerto Rico and the Virgin Islands. 

Sec. 230. Extension and limitation of American Samoa economic development 

credit. 

TITLE III—ENERGY TAX EXTENDERS 

Sec. 301. Extension of credit for energy-efficient existing homes. 

Sec. 302. Extension of credit for alternative fuel vehicle refueling property. 

Sec. 303. Extension of credit for 2- or 3-wheeled plug-in electric vehicles. 

Sec. 304. Extension and modification of cellulosic biofuel producer credit. 

Sec. 305. Extension of incentives for biodiesel and renewable diesel. 


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Sec. 306. Extension of production credit for Indian coal facilities placed in service before 2009. 

Sec. 307. Extension and modification of credits with respect to facilities producing energy from certain renewable resources. 

Sec. 308. Extension of credit for energy-efficient new homes. 

Sec. 309. Extension of credit for energy-efficient appliances. 

Sec. 310. Extension and modification of special allowance for cellulosic biofuel 

plant property. 

Sec. 311. Extension of special rule for sales or dispositions to implement FERC 

or State electric restructuring policy for qualified electric utilities. 

Sec. 312. Extension of alternative fuels excise tax credits. 

TITLE IV—OTHER PROVISIONS 

Sec. 401. Sense of the Senate regarding tax reform. 

TITLE V—BUDGET PROVISIONS 

Sec. 501. PAYGO scorecard estimates. 

1 TITLE I—INDIVIDUAL TAX 

2 PROVISIONS 

3 Subtitle A—Alternative Minimum 

4 Tax Relief 

5 SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MIN6 IMUM TAX EXEMPTION AMOUNT. 

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

8 amended— 

9 (1) by striking ‘‘$72,450’’ and all that follows 

10 through ‘‘2011’’ in subparagraph (A) and inserting 

11 ‘‘$78,750 in the case of taxable years beginning in 

12 2012 and $79,850 in the case of taxable years be13 ginning in 2013’’, and 

14 (2) by striking ‘‘$47,450’’ and all that follows 

15 through ‘‘2011’’ in subparagraph (B) and inserting 

16 ‘‘$50,600 in the case of taxable years beginning in 


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1 2012 and $51,150 in the case of taxable years be2 ginning in 2013’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2011. 

6 SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RE7 LIEF FOR NONREFUNDABLE PERSONAL 

8 CREDITS. 

9 (a) IN GENERAL.—Paragraph (2) of section 26(a) is 

10 amended— 

11 (1) by striking ‘‘or 2011’’ and inserting ‘‘2011, 

12 2012, or 2013’’, and 

13 (2) by striking ‘‘2011’’ in the heading thereof 

14 and inserting ‘‘2013’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2011. 

18 Subtitle B—Other Individual Tax 

19 Provisions 

20 SEC. 111. EXTENSION OF DEDUCTION FOR CERTAIN EX21 PENSES OF ELEMENTARY AND SECONDARY 

22 SCHOOL TEACHERS. 

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

24 62(a)(2) is amended by striking ‘‘or 2011’’ and inserting 

25 ‘‘2011, 2012, or 2013’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 112. EXTENSION OF EXCLUSION FROM GROSS INCOME 

5 OF DISCHARGE OF QUALIFIED PRINCIPAL 

6 RESIDENCE INDEBTEDNESS. 

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

8 108(a)(1) is amended by striking ‘‘January 1, 2013’’ and 

9 inserting ‘‘January 1, 2014’’. 

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

11 this section shall apply to indebtedness discharged after 

12 December 31, 2012. 

13 SEC. 113. EXTENSION OF PARITY FOR EXCLUSION FROM IN14 COME FOR EMPLOYER-PROVIDED MASS 

15 TRANSIT AND PARKING BENEFITS. 

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

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

18 ‘‘January 1, 2014’’. 

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

20 this section shall apply to months after December 31, 

21 2011. 


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1 SEC. 114. EXTENSION OF MORTGAGE INSURANCE PRE2 MIUMS TREATED AS QUALIFIED RESIDENCE 

3 INTEREST. 

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

5 163(h)(3)(E)(iv) is amended by striking ‘‘December 31, 

6 2011’’ and inserting ‘‘December 31, 2013’’. 

7 (b) TECHNICAL AMENDMENTS.—Clause (i) of section 

8 163(h)(4)(E) is amended— 

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

10 inserting ‘‘Department of Veterans Affairs’’, and 

11 (2) by striking ‘‘Rural Housing Administra12 tion’’ and inserting ‘‘Rural Housing Service’’. 

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

14 this section shall apply to amounts paid or accrued after 

15 December 31, 2011. 

16 SEC. 115. EXTENSION OF DEDUCTION OF STATE AND LOCAL 

17 GENERAL SALES TAXES. 

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

19 164(b)(5) is amended by striking ‘‘January 1, 2012’’ and 

20 inserting ‘‘January 1, 2014’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2011. 


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1 SEC. 116. EXTENSION OF SPECIAL RULE FOR CONTRIBU2 TIONS OF CAPITAL GAIN REAL PROPERTY 

3 MADE FOR CONSERVATION PURPOSES. 

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

5 170(b)(1)(E) is amended by striking ‘‘December 31, 

6 2011’’ and inserting ‘‘December 31, 2013’’. 

7 (b) CONTRIBUTIONS BY CERTAIN CORPORATE FARM8 ERS AND RANCHERS.—Clause (iii) of section 170(b)(2)(B) 

9 is amended by striking ‘‘December 31, 2011’’ and insert10 ing ‘‘December 31, 2013’’. 

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

12 this section shall apply to contributions made in taxable 

13 years beginning after December 31, 2011. 

14 SEC. 117. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 

15 QUALIFIED TUITION AND RELATED EX16 PENSES. 

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

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

19 ‘‘December 31, 2013’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2011. 


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1 SEC. 118. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM 

2 INDIVIDUAL RETIREMENT PLANS FOR CHARI3 TABLE PURPOSES. 

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

5 408(d)(8) is amended by striking ‘‘December 31, 2011’’ 

6 and inserting ‘‘December 31, 2013’’. 

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

8 this section shall apply to distributions made in taxable 

9 years beginning after December 31, 2011. 

10 Subtitle C—Tax Administration 

11 SEC. 121. IMPROVE AND MAKE PERMANENT THE PROVI12 SION AUTHORIZING THE INTERNAL REVENUE 

13 SERVICE TO DISCLOSE CERTAIN RETURN 

14 AND RETURN INFORMATION TO CERTAIN 

15 PRISON OFFICIALS. 

16 (a) IN GENERAL.—Paragraph (10) of section 

17 6103(k) of the Internal Revenue Code of 1986 is amended 

18 to read as follows: 

19 ‘‘(10) DISCLOSURE OF CERTAIN RETURNS AND

20 RETURN INFORMATION TO CERTAIN PRISON OFFI21 CIALS.— 

22 ‘‘(A) IN GENERAL.—Under such proce23 dures as the Secretary may prescribe, the Sec24 retary may disclose to officers and employees of 

25 the Federal Bureau of Prisons and of any State 

26 agency charged with the responsibility for adVerDate Mar 15 2010 21:13 Aug 28, 2012 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.RS S3521

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1 ministration of prisons any returns or return 

2 information with respect to individuals incarcer3 ated in Federal or State prison systems whom 

4 the Secretary has determined may have filed or 

5 facilitated the filing of a false or fraudulent re6 turn to the extent that the Secretary deter7 mines that such disclosure is necessary to per8 mit effective Federal tax administration. 

9 ‘‘(B) DISCLOSURE TO CONTRACTOR-RUN

10 PRISONS.—Under such procedures as the Sec11 retary may prescribe, the disclosures authorized 

12 by subparagraph (A) may be made to contrac13 tors responsible for the operation of a Federal 

14 or State prison on behalf of such Bureau or 

15 agency. 

16 ‘‘(C) RESTRICTIONS ON USE OF DIS17 CLOSED INFORMATION.—Any return or return 

18 information received under this paragraph shall 

19 be used only for the purposes of and to the ex20 tent necessary in taking administrative action 

21 to prevent the filing of false and fraudulent re22 turns, including administrative actions to ad23 dress possible violations of administrative rules 

24 and regulations of the prison facility and in adVerDate Mar 15 2010 21:13 Aug 28, 2012 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.RS S3521

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1 ministrative and judicial proceedings arising 

2 from such administrative actions. 

3 ‘‘(D) RESTRICTIONS ON REDISCLOSURE

4 AND DISCLOSURE TO LEGAL REPRESENTA5 TIVES.—Notwithstanding subsection (h)— 

6 ‘‘(i) RESTRICTIONS ON REDISCLO7 SURE.—Except as provided in clause (ii), 

8 any officer, employee, or contractor of the 

9 Federal Bureau of Prisons or of any State 

10 agency charged with the responsibility for 

11 administration of prisons shall not disclose 

12 any information obtained under this para13 graph to any person other than an officer 

14 or employee or contractor of such Bureau 

15 or agency personally and directly engaged 

16 in the administration of prison facilities on 

17 behalf of such Bureau or agency. 

18 ‘‘(ii) DISCLOSURE TO LEGAL REP19 RESENTATIVES.—The returns and return 

20 information disclosed under this paragraph 

21 may be disclosed to the duly authorized 

22 legal representative of the Federal Bureau 

23 of Prisons, State agency, or contractor 

24 charged with the responsibility for admin25 istration of prisons, or of the incarcerated 


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1 individual accused of filing the false or 

2 fraudulent return who is a party to an ac3 tion or proceeding described in subpara4 graph (C), solely in preparation for, or for 

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

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Paragraph (3) of section 6103(a) of the In8 ternal Revenue Code of 1986 is amended by insert9 ing ‘‘subsection (k)(10),’’ after ‘‘subsection 

10 (e)(1)(D)(iii),’’. 

11 (2) Paragraph (4) of section 6103(p) of such 

12 Code is amended— 

13 (A) by inserting ‘‘subsection (k)(10),’’ be14 fore ‘‘subsection (l)(10),’’ in the matter pre15 ceding subparagraph (A), 

16 (B) in subparagraph (F)(i)— 

17 (i) by inserting ‘‘(k)(10),’’ before ‘‘or 

18 (l)(6),’’, and 

19 (ii) by inserting ‘‘subsection (k)(10) 

20 or’’ before ‘‘subsection (l)(10),’’, and 

21 (C) by inserting ‘‘subsection (k)(10) or’’ 

22 before ‘‘subsection (l)(10),’’ both places it ap23 pears in the matter following subparagraph 

24 (F)(iii). 


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1 (3) Paragraph (2) of section 7213(a) of such 

2 Code is amended by inserting ‘‘(k)(10),’’ before 

3 ‘‘(l)(6),’’. 

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

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

6 of this Act. 

7 SEC. 122. EXTENSION OF RULE DISREGARDING REFUNDS 

8 IN THE ADMINISTRATION OF FEDERAL PRO9 GRAMS AND FEDERALLY ASSISTED PRO10 GRAMS. 

11 (a) IN GENERAL.—Subsection (b) of section 6409 is 

12 amended by striking ‘‘December 31, 2012’’ and inserting 

13 ‘‘December 31, 2013’’. 

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

15 this section shall apply to amounts received after Decem16 ber 31, 2012. 

17 TITLE II—BUSINESS TAX 

18 EXTENDERS 

19 SEC. 201. EXTENSION AND MODIFICATION OF RESEARCH 

20 CREDIT. 

21 (a) EXTENSION.— 

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

23 41(h)(1) is amended by striking ‘‘December 31, 

24 2011’’ and inserting ‘‘December 31, 2013’’. 


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1 (2) CONFORMING AMENDMENT.—Subparagraph 

2 (D) of section 45C(b)(1) is amended by striking 

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

4 2013’’. 

5 (b) INCLUSION OF QUALIFIED RESEARCH EXPENSES

6 AND GROSS RECEIPTS OF AN ACQUIRED PERSON.— 

7 (1) PARTIAL INCLUSION OF PRE-ACQUISITION

8 QUALIFIED RESEARCH EXPENSES AND GROSS RE9 CEIPTS.—Subparagraph (A) of section 41(f)(3) is 

10 amended to read as follows: 

11 ‘‘(A) ACQUISITIONS.— 

12 ‘‘(i) IN GENERAL.—If a person ac13 quires the major portion of either a trade 

14 or business or a separate unit of a trade 

15 or business (hereinafter in this paragraph 

16 referred to as the ‘acquired business’) of 

17 another person (hereinafter in this para18 graph referred to as the ‘predecessor’), 

19 then the amount of qualified research ex20 penses paid or incurred by the acquiring 

21 person during the measurement period 

22 shall be increased by the amount deter23 mined under clause (ii), and the gross re24 ceipts of the acquiring person for such peVerDate Mar 15 2010 21:13 Aug 28, 2012 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.RS S3521

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1 riod shall be increased by the amount de2 termined under clause (iii). 

3 ‘‘(ii) AMOUNT DETERMINED WITH RE4 SPECT TO QUALIFIED RESEARCH EX5 PENSES.—The amount determined under 

6 this clause is— 

7 ‘‘(I) for purposes of applying this 

8 section for the taxable year in which 

9 such acquisition is made, the acquisi10 tion year amount, and 

11 ‘‘(II) for purposes of applying 

12 this section for any taxable year after 

13 the taxable year in which such acqui14 sition is made, so much of the quali15 fied research expenses paid or in16 curred by the predecessor with respect 

17 to the acquired business during the 

18 measurement period. 

19 ‘‘(iii) AMOUNT DETERMINED WITH

20 RESPECT TO GROSS RECEIPTS.—The 

21 amount determined under this clause is the 

22 amount which would be determined under 

23 clause (ii) if ‘the gross receipts of’ were 

24 substituted for ‘the qualified research exVerDate Mar 15 2010 21:13 Aug 28, 2012 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.RS S3521

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1 penses paid or incurred by’ each place it 

2 appears in clauses (ii) and (iv). 

3 ‘‘(iv) ACQUISITION YEAR AMOUNT.— 

4 For purposes of clause (ii), the acquisition 

5 year amount is the amount equal to the 

6 product of— 

7 ‘‘(I) so much of the qualified re8 search expenses paid or incurred by 

9 the predecessor with respect to the ac10 quired business during the measure11 ment period, and 

12 ‘‘(II) the number of days in the 

13 period beginning on the date of the 

14 acquisition and ending on the last day 

15 of the taxable year in which the acqui16 sition is made, 

17 divided by the number of days in the ac18 quiring person’s taxable year. 

19 ‘‘(v) SPECIAL RULES FOR COORDI20 NATING TAXABLE YEARS.—In the case of 

21 an acquiring person and a predecessor 

22 whose taxable years do not begin on the 

23 same date— 

24 ‘‘(I) each reference to a taxable 

25 year in clauses (i), (ii), and (iv) shall 


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1 refer to the appropriate taxable year 

2 of the acquiring person, 

3 ‘‘(II) the qualified research ex4 penses paid or incurred by the prede5 cessor, and the gross receipts of the 

6 predecessor, during each taxable year 

7 of the predecessor any portion of 

8 which is part of the measurement pe9 riod shall be allocated equally among 

10 the days of such taxable year, 

11 ‘‘(III) the amount of such quali12 fied research expenses taken into ac13 count under clauses (ii) and (iv) with 

14 respect to a taxable year of the ac15 quiring person shall be equal to the 

16 total of the expenses attributable 

17 under subclause (II) to the days oc18 curring during such taxable year, and 

19 ‘‘(IV) the amount of such gross 

20 receipts taken into account under 

21 clause (iii) with respect to a taxable 

22 year of the acquiring person shall be 

23 equal to the total of the gross receipts 

24 attributable under subclause (II) to 


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1 the days occurring during such tax2 able year. 

3 ‘‘(vi) MEASUREMENT PERIOD.—For 

4 purposes of this subparagraph, the term 

5 ‘measurement period’ means, with respect 

6 to the taxable year in which the credit is 

7 determined, any period of the acquiring 

8 person preceding such taxable year which 

9 is taken into account for purposes of deter10 mining the credit for such year.’’. 

11 (2) EXPENSES AND GROSS RECEIPTS OF A DIS12 POSING PERSON.—Subparagraph (B) of section 

13 41(f)(3) is amended to read as follows: 

14 ‘‘(B) DISPOSITIONS.—If a person disposes 

15 of the major portion of either a trade or busi16 ness or a separate unit of a trade or business 

17 in a transaction to which subparagraph (A) ap18 plies, and the disposing person furnished to the 

19 acquiring person such information as is nec20 essary for the application of subparagraph (A), 

21 then, for purposes of applying this section for 

22 any taxable year ending after such disposi23 tion— 

24 ‘‘(i) the amount of qualified research 

25 expenses paid or incurred by the disposing 


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1 person during the measurement period (as 

2 defined in subparagraph (A)(vi)) shall be 

3 decreased by the amount of the increase in 

4 qualified research expenses determined 

5 under subparagraph (A) with respect to 

6 the acquiring person for such taxable year, 

7 and 

8 ‘‘(ii) the gross receipts of the dis9 posing person during the measurement pe10 riod (as so defined) shall be decreased by 

11 the amount of the increase in gross re12 ceipts determined under subparagraph (A) 

13 with respect to the acquiring person for 

14 such taxable year.’’. 

15 (c) AGGREGATION OF EXPENDITURES.—Paragraph 

16 (1) of section 41(f) is amended— 

17 (1) by striking ‘‘shall be its proportionate 

18 shares of the qualified research expenses, basic re19 search payments, and amounts paid or incurred to 

20 energy research consortiums, giving rise to the cred21 it’’ in subparagraph (A)(ii) and inserting ‘‘shall be 

22 determined on a proportionate basis to its share of 

23 the aggregate of the qualified research expenses, 

24 basic research payments, and amounts paid or in25 curred to energy research consortiums, taken into 


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1 account by such controlled group for purposes of 

2 this section’’, and 

3 (2) by striking ‘‘shall be its proportionate 

4 shares of the qualified research expenses, basic re5 search payments, and amounts paid or incurred to 

6 energy research consortiums, giving rise to the cred7 it’’ in subparagraph (B)(ii) and inserting ‘‘shall be 

8 determined on a proportionate basis to its share of 

9 the aggregate of the qualified research expenses, 

10 basic research payments, and amounts paid or in11 curred to energy research consortiums, taken into 

12 account by all such persons under common control 

13 for purposes of this section’’. 

14 (d) EFFECTIVE DATE.— 

15 (1) EXTENSION.—The amendments made by 

16 subsection (a) shall apply to amounts paid or in17 curred after December 31, 2011. 

18 (2) MODIFICATIONS.—The amendments made 

19 by subsections (b) and (c) shall apply to taxable 

20 years beginning after December 31, 2011. 

21 SEC. 202. EXTENSION OF TEMPORARY MINIMUM LOW-IN22 COME TAX CREDIT RATE FOR NON-FEDER23 ALLY SUBSIDIZED NEW BUILDINGS. 

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

25 42(b)(2) is amended by striking ‘‘and before December 31, 


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1 2013’’ and inserting ‘‘with respect to housing credit dollar 

2 amount allocations made before January 1, 2014’’. 

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

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

5 of this Act. 

6 SEC. 203. EXTENSION OF HOUSING ALLOWANCE EXCLU7 SION FOR DETERMINING AREA MEDIAN 

8 GROSS INCOME FOR QUALIFIED RESIDEN9 TIAL RENTAL PROJECT EXEMPT FACILITY 

10 BONDS. 

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

12 the Housing Assistance Tax Act of 2008 is amended by 

13 striking ‘‘January 1, 2012’’ each place it appears and in14 serting ‘‘January 1, 2014’’. 

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

16 this section shall take effect as if included in the enact17 ment of section 3005 of the Housing Assistance Tax Act 

18 of 2008. 

19 SEC. 204. EXTENSION OF INDIAN EMPLOYMENT TAX CRED20 IT. 

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

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

23 ‘‘December 31, 2013’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 205. EXTENSION OF NEW MARKETS TAX CREDIT. 

5 (a) IN GENERAL.—Subparagraph (G) of section 

6 45D(f)(1) is amended by striking ‘‘2010 and 2011’’ and 

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

8 (b) CARRYOVER OF UNUSED LIMITATION.—Para9 graph (3) of section 45D(f) is amended by striking 

10 ‘‘2016’’ and inserting ‘‘2018’’. 

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

12 this section shall apply to calendar years beginning after 

13 December 31, 2011. 

14 SEC. 206. EXTENSION OF RAILROAD TRACK MAINTENANCE 

15 CREDIT. 

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

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

18 ‘‘January 1, 2014’’. 

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

20 this section shall apply to expenditures paid or incurred 

21 in taxable years beginning after December 31, 2011. 


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1 SEC. 207. EXTENSION OF MINE RESCUE TEAM TRAINING 

2 CREDIT. 

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

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

5 ‘‘December 31, 2013’’. 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2011. 

9 SEC. 208. EXTENSION OF EMPLOYER WAGE CREDIT FOR 

10 EMPLOYEES WHO ARE ACTIVE DUTY MEM11 BERS OF THE UNIFORMED SERVICES. 

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

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

14 ‘‘December 31, 2013’’. 

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

16 this section shall apply to payments made after December 

17 31, 2011. 

18 SEC. 209. EXTENSION OF WORK OPPORTUNITY TAX CREDIT. 

19 (a) IN GENERAL.—Subparagraph (B) of section 

20 51(c)(4) is amended by striking ‘‘after’’ and all that fol21 lows and inserting ‘‘after December 31, 2013’’. 

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

23 this section shall apply to individuals who begin work for 

24 the employer after December 31, 2011. 


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1 SEC. 210. EXTENSION OF QUALIFIED ZONE ACADEMY 

2 BONDS. 

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

4 is amended by inserting ‘‘, 2012, and 2013’’ after ‘‘for 

5 2011’’. 

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

7 this section shall apply to obligations issued after Decem8 ber 31, 2011. 

9 SEC. 211. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE10 COVERY FOR QUALIFIED LEASEHOLD IM11 PROVEMENTS, QUALIFIED RESTAURANT 

12 BUILDINGS AND IMPROVEMENTS, AND 

13 QUALIFIED RETAIL IMPROVEMENTS. 

14 (a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec15 tion 168(e)(3)(E) are each amended by striking ‘‘January 

16 1, 2012’’ and inserting ‘‘January 1, 2014’’. 

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

18 this section shall apply to property placed in service after 

19 December 31, 2011. 

20 SEC. 212. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 

21 MOTORSPORTS ENTERTAINMENT COM22 PLEXES. 

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

24 168(i)(15) is amended by striking ‘‘December 31, 2011’’ 

25 and inserting ‘‘December 31, 2013’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2011. 

4 SEC. 213. EXTENSION OF ACCELERATED DEPRECIATION 

5 FOR BUSINESS PROPERTY ON AN INDIAN 

6 RESERVATION. 

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

8 is amended by striking ‘‘December 31, 2011’’ and insert9 ing ‘‘December 31, 2013’’. 

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

11 this section shall apply to property placed in service after 

12 December 31, 2011. 

13 SEC. 214. EXTENSION OF ENHANCED CHARITABLE DEDUC14 TION FOR CONTRIBUTIONS OF FOOD INVEN15 TORY. 

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

17 170(e)(3)(C) is amended by striking ‘‘December 31, 

18 2011’’ and inserting ‘‘December 31, 2013’’. 

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

20 this section shall apply to contributions made after De21 cember 31, 2011. 

22 SEC. 215. EXTENSION OF INCREASED EXPENSING LIMITA23 TIONS AND TREATMENT OF CERTAIN REAL 

24 PROPERTY AS SECTION 179 PROPERTY. 

25 (a) IN GENERAL.— 


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

2 amended— 

3 (A) by striking ‘‘2010 or 2011,’’ in sub4 paragraph (B) and inserting ‘‘2010, 2011, 

5 2012, or 2013, and’’, 

6 (B) by striking subparagraph (C), 

7 (C) by redesignating subparagraph (D) as 

8 subparagraph (C), and 

9 (D) in subparagraph (C), as so redesig10 nated, by striking ‘‘2012’’ and inserting 

11 ‘‘2013’’. 

12 (2) REDUCTION IN LIMITATION.—Section 

13 179(b)(2) is amended— 

14 (A) by striking ‘‘2010 or 2011,’’ in sub15 paragraph (B) and inserting ‘‘2010, 2011, 

16 2012, or 2013, and’’, 

17 (B) by striking subparagraph (C), 

18 (C) by redesignating subparagraph (D) as 

19 subparagraph (C), and 

20 (D) in subparagraph (C), as so redesig21 nated, by striking ‘‘2012’’ and inserting 

22 ‘‘2013’’. 

23 (3) CONFORMING AMENDMENT.—Subsection (b) 

24 of section 179 is amended by striking paragraph (6). 


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1 (b) COMPUTER SOFTWARE.—Section 

2 179(d)(1)(A)(ii) is amended by striking ‘‘2013’’ and in3 serting ‘‘2014’’. 

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

5 striking ‘‘2013’’ and inserting ‘‘2014’’. 

6 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

7 REAL PROPERTY.— 

8 (1) IN GENERAL.—Section 179(f)(1) is amend9 ed by striking ‘‘2010 or 2011’’ and inserting ‘‘2010, 

10 2011, 2012, or 2013’’. 

11 (2) CARRYOVER LIMITATION.— 

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

13 amended by striking ‘‘2011’’ each place it ap14 pears and inserting ‘‘2013’’. 

15 (B) CONFORMING AMENDMENT.—Subpara16 graph (C) of section 179(f)(4) is amended— 

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

18 and inserting ‘‘2010, 2011 AND 2012’’, 

19 and 

20 (ii) by adding at the end the fol21 lowing: ‘‘For the last taxable year begin22 ning in 2013, the amount determined 

23 under subsection (b)(3)(A) for such tax24 able year shall be determined without re25 gard to this paragraph.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 216. EXTENSION OF ELECTION TO EXPENSE MINE 

5 SAFETY EQUIPMENT. 

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

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

8 ‘‘December 31, 2013’’. 

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

10 this section shall apply to property placed in service after 

11 December 31, 2011. 

12 SEC. 217. EXTENSION OF SPECIAL EXPENSING RULES FOR 

13 CERTAIN FILM AND TELEVISION PRODUC14 TIONS. 

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

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

17 ‘‘December 31, 2013’’. 

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

19 this section shall apply to productions commencing after 

20 December 31, 2011. 


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1 SEC. 218. EXTENSION OF DEDUCTION ALLOWABLE WITH 

2 RESPECT TO INCOME ATTRIBUTABLE TO DO3 MESTIC PRODUCTION ACTIVITIES IN PUERTO 

4 RICO. 

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

6 199(d)(8) is amended— 

7 (1) by striking ‘‘first 6 taxable years’’ and in8 serting ‘‘first 8 taxable years’’, and 

9 (2) by striking ‘‘January 1, 2012’’ and insert10 ing ‘‘January 1, 2014’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2011. 

14 SEC. 219. EXTENSION OF MODIFICATION OF TAX TREAT15 MENT OF CERTAIN PAYMENTS TO CONTROL16 LING EXEMPT ORGANIZATIONS. 

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

18 512(b)(13)(E) is amended by striking ‘‘December 31, 

19 2011’’ and inserting ‘‘December 31, 2013’’. 

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

21 this section shall apply to payments received or accrued 

22 after December 31, 2011. 


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1 SEC. 220. EXTENSION OF TREATMENT OF CERTAIN DIVI2 DENDS OF REGULATED INVESTMENT COMPA3 NIES. 

4 (a) IN GENERAL.—Paragraphs (1)(C) and (2)(C) of 

5 section 871(k) are each amended by striking ‘‘December 

6 31, 2011’’ and inserting ‘‘December 31, 2013’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2011. 

10 SEC. 221. EXTENSION OF RIC QUALIFIED INVESTMENT EN11 TITY TREATMENT UNDER FIRPTA. 

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

13 897(h)(4)(A) is amended by striking ‘‘December 31, 

14 2011’’ and inserting ‘‘December 31, 2013’’. 

15 (b) EFFECTIVE DATE.— 

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

17 subsection (a) shall take effect on January 1, 2012. 

18 Notwithstanding the preceding sentence, such 

19 amendment shall not apply with respect to the with20 holding requirement under section 1445 of the Inter21 nal Revenue Code of 1986 for any payment made 

22 before the date of the enactment of this Act. 

23 (2) AMOUNTS WITHHELD ON OR BEFORE DATE

24 OF ENACTMENT.—In the case of a regulated invest25 ment company— 


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1 (A) which makes a distribution after De2 cember 31, 2011, and before the date of the en3 actment of this Act; and 

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

6 withhold with respect to such distribution under 

7 section 1445 of such Code, 

8 such investment company shall not be liable to any 

9 person to whom such distribution was made for any 

10 amount so withheld and paid over to the Secretary 

11 of the Treasury. 

12 SEC. 222. EXTENSION OF SUBPART F EXCEPTION FOR AC13 TIVE FINANCING INCOME. 

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

15 of section 953(e) is amended— 

16 (1) by striking ‘‘January 1, 2012’’ and insert17 ing ‘‘January 1, 2014’’, and 

18 (2) by striking ‘‘December 31, 2011’’ and in19 serting ‘‘December 31, 2013’’. 

20 (b) SPECIAL RULE FOR INCOME DERIVED IN THE

21 ACTIVE CONDUCT OF BANKING, FINANCING, OR SIMILAR

22 BUSINESSES.—Paragraph (9) of section 954(h) is amend23 ed by striking ‘‘January 1, 2012’’ and inserting ‘‘January 

24 1, 2014’’. 


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

2 this section shall apply to taxable years of foreign corpora3 tions beginning after December 31, 2011, and to taxable 

4 years of United States shareholders with or within which 

5 any such taxable year of such foreign corporation ends. 

6 SEC. 223. EXTENSION OF LOOK-THRU TREATMENT OF PAY7 MENTS BETWEEN RELATED CONTROLLED 

8 FOREIGN CORPORATIONS UNDER FOREIGN 

9 PERSONAL HOLDING COMPANY RULES. 

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

11 954(c)(6) is amended by striking ‘‘January 1, 2012’’ and 

12 inserting ‘‘January 1, 2014’’. 

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

14 this section shall apply to taxable years of foreign corpora15 tions beginning after December 31, 2011, and to taxable 

16 years of United States shareholders with or within which 

17 such taxable years of foreign corporations end. 

18 SEC. 224. EXTENSION OF TEMPORARY EXCLUSION OF 100 

19 PERCENT OF GAIN ON CERTAIN SMALL BUSI20 NESS STOCK. 

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

22 is amended— 

23 (1) by striking ‘‘January 1, 2012’’ and insert24 ing ‘‘January 1, 2014’’, and 


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

2 2011, 2012, AND 2013’’ in the heading thereof. 

3 (b) TECHNICAL AMENDMENTS.— 

4 (1) SPECIAL RULE FOR 2009 AND CERTAIN PE5 RIOD IN 2010.—Paragraph (3) of section 1202(a) is 

6 amended by adding at the end the following new 

7 flush sentence: 

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

9 in the preceding sentence (but for this sentence), the 

10 acquisition date for purposes of this subsection shall 

11 be the first day on which such stock was held by the 

12 taxpayer determined after the application of section 

13 1223.’’. 

14 (2) 100 PERCENT EXCLUSION.—Paragraph (4) 

15 of section 1202(a) is amended by adding at the end 

16 the following new flush sentence: 

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

18 in the preceding sentence (but for this sentence), the 

19 acquisition date for purposes of this subsection shall 

20 be the first day on which such stock was held by the 

21 taxpayer determined after the application of section 

22 1223.’’. 

23 (c) EFFECTIVE DATES.— 


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

2 subsection (a) shall apply to stock acquired after De3 cember 31, 2011. 

4 (2) SUBSECTION (b)(1).—The amendment 

5 made by subsection (b)(1) shall take effect as if in6 cluded in section 1241(a) of division B of the Amer7 ican Recovery and Reinvestment Act of 2009. 

8 (3) SUBSECTION (b)(2).—The amendment 

9 made by subsection (b)(2) shall take effect as if in10 cluded in section 2011(a) of the Creating Small 

11 Business Jobs Act of 2010. 

12 SEC. 225. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF 

13 S CORPORATIONS MAKING CHARITABLE CON14 TRIBUTIONS OF PROPERTY. 

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

16 is amended by striking ‘‘December 31, 2011’’ and insert17 ing ‘‘December 31, 2013’’. 

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

19 this section shall apply to contributions made in taxable 

20 years beginning after December 31, 2011. 

21 SEC. 226. EXTENSION OF REDUCTION IN S-CORPORATION 

22 RECOGNITION PERIOD FOR BUILT-IN GAINS 

23 TAX. 

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

25 is amended— 


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1 (1) by redesignating subparagraph (C) as sub2 paragraph (D), and 

3 (2) by inserting after subparagraph (B) the fol4 lowing new subparagraph: 

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

6 For dispositions of property in taxable years be7 ginning in 2012 or 2013, subparagraphs (A) 

8 and (D) shall be applied by substituting ‘5-year’ 

9 for ‘10-year’.’’. 

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

11 section 1374(d)(2) is amended by inserting ‘‘described in 

12 subparagraph (A)’’ after ‘‘, for any taxable year’’. 

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

14 subsection (a) shall apply to taxable years beginning after 

15 December 31, 2011. 

16 SEC. 227. EXTENSION OF EMPOWERMENT ZONE TAX INCEN17 TIVES. 

18 (a) IN GENERAL.—Clause (i) of section 

19 1391(d)(1)(A) is amended by striking ‘‘December 31, 

20 2011’’ and inserting ‘‘December 31, 2013’’. 

21 (b) INCREASED EXCLUSION OF GAIN ON STOCK OF

22 EMPOWERMENT ZONE BUSINESSES.—Subparagraph (C) 

23 of section 1202(a)(2) is amended— 

24 (1) by striking ‘‘December 31, 2016’’ and in25 serting ‘‘December 31, 2018’’; and 


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1 (2) by striking ‘‘2016’’ in the heading and in2 serting ‘‘2018’’. 

3 (c) TREATMENT OF CERTAIN TERMINATION DATES

4 SPECIFIED IN NOMINATIONS.—In the case of a designa5 tion of an empowerment zone the nomination for which 

6 included a termination date which is contemporaneous 

7 with the date specified in subparagraph (A)(i) of section 

8 1391(d)(1) of the Internal Revenue Code of 1986 (as in 

9 effect before the enactment of this Act), subparagraph (B) 

10 of such section shall not apply with respect to such des11 ignation if, after the date of the enactment of this section, 

12 the entity which made such nomination amends the nomi13 nation to provide for a new termination date in such man14 ner as the Secretary of the Treasury (or the Secretary’s 

15 designee) may provide. 

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

17 this section shall apply to periods after December 31, 

18 2011. 

19 SEC. 228. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW 

20 YORK LIBERTY ZONE. 

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

22 1400L(d)(2) is amended by striking ‘‘January 1, 2012’’ 

23 and inserting ‘‘January 1, 2014’’. 


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

2 this section shall apply to bonds issued after December 

3 31, 2011. 

4 SEC. 229. EXTENSION OF TEMPORARY INCREASE IN LIMIT 

5 ON COVER OVER OF RUM EXCISE TAXES TO 

6 PUERTO RICO AND THE VIRGIN ISLANDS. 

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

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

9 ‘‘January 1, 2014’’. 

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

11 this section shall apply to distilled spirits brought into the 

12 United States after December 31, 2011. 

13 SEC. 230. MODIFICATION AND EXTENSION OF AMERICAN 

14 SAMOA ECONOMIC DEVELOPMENT CREDIT. 

15 (a) MODIFICATION.— 

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

17 119 of division A of the Tax Relief and Health Care 

18 Act of 2006 is amended by striking ‘‘if such cor19 poration’’ and all that follows and inserting ‘‘if— 

20 ‘‘(1) in the case of a taxable year beginning be21 fore January 1, 2012, such corporation— 

22 ‘‘(A) is an existing credit claimant with re23 spect to American Samoa, and 

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

25 of the Internal Revenue Code of 1986 for its 


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1 last taxable year beginning before January 1, 

2 2006, and 

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

4 after December 31, 2011, such corporation meets 

5 the requirements of subsection (e).’’. 

6 (2) REQUIREMENTS.—Section 119 of division A 

7 of such Act is amended by adding at the end the fol8 lowing new subsection: 

9 ‘‘(e) QUALIFIED PRODUCTION ACTIVITIES INCOME

10 REQUIREMENT.—A corporation meets the requirement of 

11 this subsection if such corporation has qualified produc12 tion activities income, as defined in subsection (c) of sec13 tion 199 of the Internal Revenue Code of 1986, deter14 mined by substituting ‘American Samoa’ for ‘the United 

15 States’ each place it appears in paragraphs (3), (4), and 

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

17 (b) EXTENSION.—Subsection (d) of section 119 of di18 vision A of the Tax Relief and Health Care Act of 2006 

19 is amended by striking ‘‘shall apply’’ and all that follows 

20 and inserting ‘‘shall apply— 

21 ‘‘(1) in the case of a corporation that meets the 

22 requirements of subparagraphs (A) and (B) of sub23 section (a)(1), to the first 8 taxable years of such 

24 corporation which begin after December 31, 2006, 

25 and before January 1, 2014, and 


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

2 meet the requirements of subparagraphs (A) and 

3 (B) of subsection (a)(1), to the first 2 taxable years 

4 of such corporation which begin after December 31, 

5 2011, and before January 1, 2014.’’. 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2011. 

9 TITLE III—ENERGY TAX 

10 EXTENDERS 

11 SEC. 301. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

12 EXISTING HOMES. 

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

14 is amended by striking ‘‘December 31, 2011’’ and insert15 ing ‘‘December 31, 2013’’. 

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

17 this section shall apply to property placed in service after 

18 December 31, 2011. 

19 SEC. 302. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

20 VEHICLE REFUELING PROPERTY. 

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

22 is amended by striking ‘‘December 31, 2011.’’ and insert23 ing ‘‘December 31, 2013’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2011. 

4 SEC. 303. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED 

5 PLUG-IN ELECTRIC VEHICLES. 

6 (a) IN GENERAL.—Section 30D is amended by add7 ing at the end the following new subsection: 

8 ‘‘(g) CREDIT ALLOWED FOR 2- AND 3-WHEELED

9 PLUG-IN ELECTRIC VEHICLES.— 

10 ‘‘(1) IN GENERAL.—In the case of a qualified 

11 2- or 3-wheeled plug-in electric vehicle— 

12 ‘‘(A) there shall be allowed as a credit 

13 against the tax imposed by this chapter for the 

14 taxable year an amount equal to the sum of the 

15 applicable amount with respect to each such 

16 qualified 2- or 3-wheeled plug-in electric vehicle 

17 placed in service by the taxpayer during the 

18 taxable year, and 

19 ‘‘(B) the amount of the credit allowed 

20 under subparagraph (A) shall be treated as a 

21 credit allowed under subsection (a). 

22 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

23 paragraph (1), the applicable amount is an amount 

24 equal to the lesser of— 


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1 ‘‘(A) 10 percent of the cost of the qualified 

2 2- or 3-wheeled plug-in electric vehicle, or 

3 ‘‘(B) $2,500. 

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

5 ELECTRIC VEHICLE.—The term ‘qualified 2- or 3- 

6 wheeled plug-in electric vehicle’ means any vehicle 

7 which— 

8 ‘‘(A) has 2 or 3 wheels, 

9 ‘‘(B) meets the requirements of subpara10 graphs (A), (B), (C), (E), and (F) of subsection 

11 (d)(1) (determined by substituting ‘2.5 kilowatt 

12 hours’ for ‘4 kilowatt hours’ in subparagraph 

13 (F)(i)), 

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

15 public streets, roads, and highways, 

16 ‘‘(D) is capable of achieving a speed of 45 

17 miles per hour or greater, and 

18 ‘‘(E) is acquired after December 31, 2011, 

19 and before January 1, 2014.’’. 

20 (b) AIR QUALITY AND SAFETY STANDARDS.—Sub21 paragraph (B) of section 30D(f)(7) is amended by insert22 ing ‘‘, or section 571, whichever is applicable,’’ after ‘‘sec23 tions 30101 through 30169’’. 


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

2 this section shall apply to vehicles acquired after Decem3 ber 31, 2011. 

4 SEC. 304. EXTENSION AND MODIFICATION OF CELLULOSIC 

5 BIOFUEL PRODUCER CREDIT. 

6 (a) EXTENSION.— 

7 (1) IN GENERAL.—Subparagraph (H) of section 

8 40(b)(6) is amended to read as follows: 

9 ‘‘(H) APPLICATION OF PARAGRAPH.— 

10 ‘‘(i) IN GENERAL.—This paragraph 

11 shall apply with respect to qualified cellu12 losic biofuel production after December 31, 

13 2008, and before January 1, 2014. 

14 ‘‘(ii) NO CARRYOVER TO CERTAIN

15 YEARS AFTER EXPIRATION.—If this para16 graph ceases to apply for any period by 

17 reason of clause (i), rules similar to the 

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

19 (2) CONFORMING AMENDMENT.—Paragraph (2) 

20 of section 40(e) is amended by striking ‘‘or sub21 section (b)(6)(H)’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall take effect as if included in 

24 section 15321(b) of the Heartland, Habitat, and 

25 Horticulture Act of 2008. 


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1 (b) ALGAE TREATED AS A QUALIFIED FEED2 STOCK.— 

3 (1) IN GENERAL.—Subclause (I) of section 

4 40(b)(6)(E)(i) is amended to read as follows: 

5 ‘‘(I) is derived by, or from, quali6 fied feedstocks, and’’. 

7 (2) QUALIFIED FEEDSTOCK; SPECIAL RULES

8 FOR ALGAE.—Paragraph (6) of section 40(b) is 

9 amended by redesignating subparagraphs (F), (G), 

10 and (H), as amended by this Act, as subparagraphs 

11 (H), (I), and (J), respectively, and by inserting after 

12 subparagraph (E) the following new subparagraphs: 

13 ‘‘(F) QUALIFIED FEEDSTOCK.—For pur14 poses of this paragraph, the term ‘qualified 

15 feedstock’ means— 

16 ‘‘(i) any lignocellulosic or 

17 hemicellulosic matter that is available on a 

18 renewable or recurring basis, and 

19 ‘‘(ii) any cultivated algae, 

20 cyanobacteria, or lemna. 

21 ‘‘(G) SPECIAL RULES FOR ALGAE.—In the 

22 case of fuel which is derived by, or from, feed23 stock described in subparagraph (F)(ii) and 

24 which is sold by the taxpayer to another person 

25 for refining by such other person into a fuel 


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1 which meets the requirements of subparagraph 

2 (E)(i)(II) and the refined fuel is not excluded 

3 under subparagraph (E)(iii)— 

4 ‘‘(i) such sale shall be treated as de5 scribed in subparagraph (C)(i), 

6 ‘‘(ii) such fuel shall be treated as 

7 meeting the requirements of subparagraph 

8 (E)(i)(II) and as not being excluded under 

9 subparagraph (E)(iii) in the hands of such 

10 taxpayer, and 

11 ‘‘(iii) except as provided in this sub12 paragraph, such fuel (and any fuel derived 

13 from such fuel) shall not be taken into ac14 count under subparagraph (C) with respect 

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

16 (3) CONFORMING AMENDMENTS.— 

17 (A) Section 40, as amended by paragraph 

18 (2), is amended— 

19 (i) by striking ‘‘cellulosic biofuel’’ each 

20 place it appears in the text thereof and in21 serting ‘‘second generation biofuel’’, 

22 (ii) by striking ‘‘CELLULOSIC’’ in the 

23 headings of subsections (b)(6), (b)(6)(E), 

24 and (d)(3)(D) and inserting ‘‘SECOND

25 GENERATION’’, and 


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1 (iii) by striking ‘‘CELLULOSIC’’ in the 

2 headings of subsections (b)(6)(C), 

3 (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) 

4 and inserting ‘‘SECOND GENERATION’’. 

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

6 amended by striking ‘‘Such term shall not’’ and 

7 inserting ‘‘The term ‘second generation biofuel’ 

8 shall not’’. 

9 (C) Paragraph (1) of section 4101(a) is 

10 amended by striking ‘‘cellulosic biofuel’’ and in11 serting ‘‘second generation biofuel’’. 

12 (4) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to fuels sold or used 

14 after the date of the enactment of this Act. 

15 SEC. 305. EXTENSION OF INCENTIVES FOR BIODIESEL AND 

16 RENEWABLE DIESEL. 

17 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE18 SEL USED AS FUEL.—Subsection (g) of section 40A is 

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

20 ‘‘December 31, 2013’’. 

21 (b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

22 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX23 TURES.— 


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1 (1) Paragraph (6) of section 6426(c) is amend2 ed by striking ‘‘December 31, 2011’’ and inserting 

3 ‘‘December 31, 2013’’. 

4 (2) Subparagraph (B) of section 6427(e)(6) is 

5 amended by striking ‘‘December 31, 2011’’ and in6 serting ‘‘December 31, 2013’’. 

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

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

9 31, 2011. 

10 SEC. 306. EXTENSION OF PRODUCTION CREDIT FOR INDIAN 

11 COAL FACILITIES PLACED IN SERVICE BE12 FORE 2009. 

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

14 45(e)(10) is amended by striking ‘‘7-year period’’ each 

15 place it appears and inserting ‘‘8-year period’’. 

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

17 this section shall apply to coal produced after December 

18 31, 2012. 

19 SEC. 307. EXTENSION AND MODIFICATION OF CREDITS 

20 WITH RESPECT TO FACILITIES PRODUCING 

21 ENERGY FROM CERTAIN RENEWABLE RE22 SOURCES. 

23 (a) PRODUCTION TAX CREDIT.— 

24 (1) EXTENSION FOR WIND FACILITIES.—Para25 graph (1) of section 45(d) is amended by striking 


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1 ‘‘January 1, 2013’’ and inserting ‘‘January 1, 

2 2014’’. 

3 (2) EXCLUSION OF PAPER WHICH IS COMMONLY

4 RECYCLED FROM DEFINITION OF MUNICIPAL SOLID

5 WASTE.—Section 45(c)(6) is amended by inserting 

6 ‘‘, except that such term does not include paper 

7 which is commonly recycled and which has been seg8 regated from other solid waste (as so defined)’’ after 

9 ‘‘(42 U.S.C. 6903)’’. 

10 (3) MODIFICATION TO DEFINITION OF QUALI11 FIED FACILITY.— 

12 (A) IN GENERAL.—The following provi13 sions of section 45(d), as amended by para14 graph (1), are each amended by striking ‘‘be15 fore January 1, 2014’’ and inserting ‘‘the con16 struction of which begins before January 1, 

17 2014’’: 

18 (i) Paragraph (1). 

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

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

21 (iv) Paragraph (6). 

22 (v) Paragraph (7). 

23 (vi) Paragraph (9)(B). 

24 (vii) Paragraph (11)(B). 


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1 (B) CERTAIN CLOSED-LOOP BIOMASS FA2 CILITIES.—Subparagraph (A) of section 

3 45(d)(2) is amended by adding at the end the 

4 following new flush sentence: 

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

6 treated as modified before January 1, 2014, if 

7 the construction of such modification begins be8 fore such date.’’. 

9 (C) CERTAIN OPEN-LOOP BIOMASS FACILI10 TIES.—Clause (ii) of section 45(d)(3)(A) is 

11 amended by striking ‘‘is originally placed in 

12 service’’ and inserting ‘‘the construction of 

13 which begins’’. 

14 (D) GEOTHERMAL FACILITIES.— 

15 (i) IN GENERAL.—Paragraph (4) of 

16 section 45(d) is amended by striking ‘‘and 

17 before January 1, 2014’’ and all that fol18 lows and inserting ‘‘and which— 

19 ‘‘(A) in the case of a facility using solar 

20 energy, is placed in service before January 1, 

21 2006, or 

22 ‘‘(B) in the case of a facility using geo23 thermal energy, the construction of which be24 gins before January 1, 2014. 


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1 Such term shall not include any property described 

2 in section 48(a)(3) the basis of which is taken into 

3 account by the taxpayer for purposes of determining 

4 the energy credit under section 48.’’. 

5 (E) INCREMENTAL HYDROPOWER PRODUC6 TION.—Paragraph (9) of section 45(d) is 

7 amended— 

8 (i) by redesignating subparagraphs 

9 (A) and (B), as amended by subparagraph 

10 (A), as clauses (i) and (ii), respectively, 

11 and by moving such clauses (as so redesig12 nated) 2 ems to the right, 

13 (ii) by striking ‘‘In the case of a facil14 ity’’ and inserting the following: 

15 ‘‘(A) IN GENERAL.—In the case of a facil16 ity’’, 

17 (iii) by redesignating subparagraph 

18 (C) as subparagraph (B), and 

19 (iv) by adding at the end the following 

20 new subparagraph: 

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

22 subparagraph (A)(i), an efficiency improvement 

23 or addition to capacity shall be treated as 

24 placed in service modified before January 1, 


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1 2014, if the construction of such improvement 

2 or addition begins before such date.’’. 

3 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

4 FACILITIES AS ENERGY PROPERTY.—Subparagraph (C) 

5 of section 48(a)(5) is amended to read as follows: 

6 ‘‘(C) QUALIFIED INVESTMENT CREDIT FA7 CILITY.—For purposes of this paragraph, the 

8 term ‘qualified investment credit facility’ means 

9 any facility— 

10 ‘‘(i) which is a qualified facility (with11 in the meaning of section 45) described in 

12 paragraph (1), (2), (3), (4), (6), (7), (9), 

13 or (11) of section 45(d), 

14 ‘‘(ii) which is placed in service after 

15 2008 and the construction of which begins 

16 before January 1, 2014, and 

17 ‘‘(iii) with respect to which— 

18 ‘‘(I) no credit has been allowed 

19 under section 45, and 

20 ‘‘(II) the taxpayer makes an ir21 revocable election to have this para22 graph apply.’’. 

23 (c) TECHNICAL CORRECTIONS.— 

24 (1) Subparagraph (D) of section 48(a)(5) is 

25 amended— 


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1 (A) by striking the period at the end of 

2 clause (ii) and inserting a comma, and 

3 (B) by adding at the end the following new 

4 clauses: 

5 ‘‘(iii) which is constructed, recon6 structed, erected, or acquired by the tax7 payer, and 

8 ‘‘(iv) the original use of which com9 mences with the taxpayer.’’. 

10 (2) Paragraphs (1) and (2) of subsection (a) of 

11 section 1603 of division B of the American Recovery 

12 and Reinvestment Act of 2009 are each amended by 

13 striking ‘‘placed in service’’ and inserting ‘‘originally 

14 placed in service by such person’’. 

15 (d) EFFECTIVE DATES.— 

16 (1) IN GENERAL.—Except as provided in para17 graphs (2) and (3), the amendments made by this 

18 section shall take effect on the date of the enactment 

19 of this Act. 

20 (2) MODIFICATION TO DEFINITION OF MUNIC21 IPAL SOLID WASTE.—The amendments made by sub22 section (a)(2) shall apply to electricity produced and 

23 sold after the date of the enactment of this Act, in 

24 taxable years ending after such date. 


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1 (3) TECHNICAL CORRECTIONS.—The amend2 ments made by subsection (c) shall apply as if in3 cluded in the enactment of the provisions of the 

4 American Recovery and Reinvestment Act of 2009 

5 to which they relate. 

6 SEC. 308. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

7 NEW HOMES. 

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

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

10 ‘‘December 31, 2013’’. 

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

12 this section shall apply to homes acquired after December 

13 31, 2011. 

14 SEC. 309. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

15 APPLIANCES. 

16 (a) IN GENERAL.—Section 45M(b) is amended by 

17 striking ‘‘2011’’ each place it appears other than in the 

18 provisions specified in subsection (b) and inserting ‘‘2011, 

19 2012, or 2013’’. 

20 (b) PROVISIONS SPECIFIED.—The provisions of sec21 tion 45M(b) specified in this subsection are subparagraph 

22 (C) of paragraph (1) and subparagraph (E) of paragraph 

23 (2). 


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

2 this section shall apply to appliances produced after De3 cember 31, 2011. 

4 SEC. 310. EXTENSION AND MODIFICATION OF SPECIAL AL5 LOWANCE FOR CELLULOSIC BIOFUEL PLANT 

6 PROPERTY. 

7 (a) EXTENSION.— 

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

9 168(l)(2) is amended by striking ‘‘January 1, 2013’’ 

10 and inserting ‘‘January 1, 2014’’. 

11 (2) CONFORMING AMENDMENT.—Paragraph (5) 

12 of section 168(l), as redesignated by this Act, is 

13 amended— 

14 (A) by striking ‘‘and’’ at the end of sub15 paragraph (A), 

16 (B) by redesignating subparagraph (B) as 

17 subparagraph (C), and 

18 (C) by inserting after subparagraph (A) 

19 the following new subparagraph: 

20 ‘‘(B) by substituting ‘January 1, 2014’ for 

21 ‘January 1, 2013’ in clause (i) thereof, and’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall apply to property placed in 

24 service after December 31, 2012. 


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1 (b) ALGAE TREATED AS A QUALIFIED FEEDSTOCK

2 FOR PURPOSES OF BONUS DEPRECIATION FOR BIOFUEL

3 PLANT PROPERTY.— 

4 (1) IN GENERAL.—Subparagraph (A) of section 

5 168(l)(2) is amended by striking ‘‘solely to produce 

6 cellulosic biofuel’’ and inserting ‘‘solely to produce 

7 second generation biofuel (as defined in section 

8 40(b)(6)(E))’’. 

9 (2) CONFORMING AMENDMENTS.—Subsection 

10 (l) of section 168, as amended by subsection (a), is 

11 amended— 

12 (A) by striking ‘‘cellulosic biofuel’’ each 

13 place it appears in the text thereof and insert14 ing ‘‘second generation biofuel’’, 

15 (B) by striking paragraph (3) and redesig16 nating paragraphs (4) through (8) as para17 graphs (3) through (7), respectively, 

18 (C) by striking ‘‘CELLULOSIC’’ in the 

19 heading of such subsection and inserting ‘‘SEC20 OND GENERATION’’, and 

21 (D) by striking ‘‘CELLULOSIC’’ in the head22 ing of paragraph (2) and inserting ‘‘SECOND

23 GENERATION’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to property placed in 

3 service after the date of the enactment of this Act. 

4 SEC. 311. EXTENSION OF SPECIAL RULE FOR SALES OR DIS5 POSITIONS TO IMPLEMENT FERC OR STATE 

6 ELECTRIC RESTRUCTURING POLICY FOR 

7 QUALIFIED ELECTRIC UTILITIES. 

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

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

10 ‘‘January 1, 2014’’. 

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

12 this section shall apply to dispositions after December 31, 

13 2011. 

14 SEC. 312. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX 

15 CREDITS. 

16 (a) IN GENERAL.—Sections 6426(d)(5) and 

17 6426(e)(3) are each amended by striking ‘‘December 31, 

18 2011’’ and inserting ‘‘December 31, 2013’’. 

19 (b) OUTLAY PAYMENTS FOR ALTERNATIVE

20 FUELS.—Paragraph (6) of section 6427(e) is amended— 

21 (1) in subparagraph (C)— 

22 (A) by striking ‘‘or alternative fuel mixture 

23 (as defined in subsection (d)(2) or (e)(3) of sec24 tion 6426)’’ and inserting ‘‘(as defined in sec25 tion 6426(d)(2))’’, and 


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

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

3 (2) in subparagraph (D)— 

4 (A) by striking ‘‘or alternative fuel mix5 ture’’, and 

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

7 inserting ‘‘, and’’, and 

8 (3) by adding at the end the following new sub9 paragraph: 

10 ‘‘(E) any alternative fuel mixture (as de11 fined in section 6426(e)(2)) sold or used after 

12 December 31, 2011.’’. 

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

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

15 31, 2011. 

16 TITLE IV—OTHER PROVISIONS 

17 SEC. 401. SENSE OF THE SENATE REGARDING TAX REFORM. 

18 It is the sense of the Senate that— 

19 (1) comprehensive tax reform is vital to eco20 nomic growth and United States competitiveness and 

21 should begin in 2013, 

22 (2) a major focus of comprehensive tax reform 

23 should be broadening the tax base so as to lower tax 

24 rates, including by reforming, eliminating, or signifi25 cantly reducing tax expenditures, including proviVerDate Mar 15 2010 21:13 Aug 28, 2012 Jkt 019200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.RS S3521

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1 sions traditionally extended by Congress from year 

2 to year, and 

3 (3) whenever possible, federal energy tax ex4 penditures should be responsibly phased-out in a 

5 manner that allows these technologies to function 

6 without a reliance on federal subsidies. 

7 TITLE V—BUDGET PROVISIONS 

8 SEC. 501. STATUTORY PAYGO SCORECARD ESTIMATES. 

9 The budgetary effects of this Act, for the purpose of 

10 complying with the Statutory Pay-As-You-Go-Act of 2010, 

11 shall be determined by reference to the latest statement 

12 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

13 Act, submitted for printing in the Congressional Record 

14 by the Chairman of the Senate Budget Committee, pro15 vided that such statement has been submitted prior to the 

16 vote on passage. 


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Calendar No. 499 

112TH CONGRESS 

2D SESSION S. 3521 

[Report No. 112–208] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

extend certain expiring provisions. 

AUGUST 28, 2012 

Read twice and placed on the calendar 


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