II 

Calendar No. 468 

112TH CONGRESS 

2D SESSION S. 3413 

To amend the Internal Revenue Code of 1986 to temporarily extend tax 

relief provisions enacted in 2001 and 2003, to provide for temporary 

alternative minimum tax relief, to extend increased expensing limitations, 

and to provide instructions for tax reform. 

IN THE SENATE OF THE UNITED STATES 

JULY 19, 2012 

Mr. HATCH (for himself and Mr. MCCONNELL) introduced the following bill; 

which was read twice and ordered placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to temporarily 

extend tax relief provisions enacted in 2001 and 2003, 

to provide for temporary alternative minimum tax relief, 

to extend increased expensing limitations, and to provide 

instructions for tax reform. 

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. 

4 This Act may be cited as the ‘‘Tax Hike Prevention 

5 Act of 2012’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•S 3413 PCS

1 SEC. 2. TEMPORARY EXTENSION OF 2001 TAX RELIEF. 

2 (a) IN GENERAL.—Section 901 of the Economic 

3 Growth and Tax Relief Reconciliation Act of 2001 is 

4 amended by striking ‘‘December 31, 2012’’ both places it 

5 appears and inserting ‘‘December 31, 2013’’. 

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

7 this section shall take effect as if included in the enact8 ment of the Economic Growth and Tax Relief Reconcili9 ation Act of 2001. 

10 SEC. 3. TEMPORARY EXTENSION OF 2003 TAX RELIEF. 

11 (a) IN GENERAL.—Section 303 of the Jobs and 

12 Growth Tax Relief Reconciliation Act of 2003 is amended 

13 by striking ‘‘December 31, 2012’’ and inserting ‘‘Decem14 ber 31, 2013’’. 

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

16 this section shall take effect as if included in the enact17 ment of the Jobs and Growth Tax Relief Reconciliation 

18 Act of 2003. 

19 SEC. 4. ALTERNATIVE MINIMUM TAX RELIEF. 

20 (a) TEMPORARY EXTENSION OF INCREASED ALTER21 NATIVE MINIMUM TAX EXEMPTION AMOUNT.— 

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

23 55(d) of the Internal Revenue Code of 1986 is 

24 amended— 

25 (A) by striking ‘‘$72,450’’ and all that fol26 lows through ‘‘2011’’ in subparagraph (A) and 

mstockstill on DSK4VPTVN1PROD with BILLS

3 

•S 3413 PCS

1 inserting ‘‘$78,750 in the case of taxable years 

2 beginning in 2012 and $79,850 in the case of 

3 taxable years beginning in 2013’’, and 

4 (B) by striking ‘‘$47,450’’ and all that fol5 lows through ‘‘2011’’ in subparagraph (B) and 

6 inserting ‘‘$50,600 in the case of taxable years 

7 beginning in 2012 and $51,150 in the case of 

8 taxable years beginning in 2013’’. 

9 (b) TEMPORARY EXTENSION OF ALTERNATIVE MIN10 IMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL

11 CREDITS.— 

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

13 26(a) of the Internal Revenue Code of 1986 is 

14 amended— 

15 (A) by striking ‘‘or 2011’’ and inserting 

16 ‘‘2011, 2012, or 2013’’, and 

17 (B) by striking ‘‘2011’’ in the heading 

18 thereof and inserting ‘‘2013’’. 

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2011. 

22 SEC. 5. EXTENSION OF INCREASED EXPENSING LIMITA23 TIONS AND TREATMENT OF CERTAIN REAL 

24 PROPERTY AS SECTION 179 PROPERTY. 

25 (a) IN GENERAL.— 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•S 3413 PCS

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

2 the Internal Revenue Code of 1986 is 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) of such Code 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 of such Code is amended by striking 

25 paragraph (6). 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•S 3413 PCS

1 (b) COMPUTER SOFTWARE.—Section 

2 179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 

4 (c) ELECTION.—Section 179(c)(2) of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘2013’’ and 

6 inserting ‘‘2014’’. 

7 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

8 REAL PROPERTY.— 

9 (1) IN GENERAL.—Section 179(f)(1) of the In10 ternal Revenue Code of 1986 is amended by striking 

11 ‘‘2010 or 2011’’ and inserting ‘‘2010, 2011, 2012, 

12 or 2013’’. 

13 (2) CARRYOVER LIMITATION.— 

14 (A) IN GENERAL.—Section 179(f)(4) of 

15 such Code is amended by striking ‘‘2011’’ each 

16 place it appears and inserting ‘‘2013’’. 

17 (B) CONFORMING AMENDMENT.—The 

18 heading for subparagraph (C) of section 

19 179(f)(4) of such Code is amended by striking 

20 ‘‘2010’’ and inserting ‘‘2010, 2011 AND 2012’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2011. 

mstockstill on DSK4VPTVN1PROD with BILLS

6 

•S 3413 PCS

1 SEC. 6. INSTRUCTIONS FOR TAX REFORM. 

2 (a) IN GENERAL.—The Senate Committee on Fi3 nance shall report legislation not later than 12 months 

4 after the date of the enactment of this Act that consists 

5 of changes in laws within its jurisdiction which meet the 

6 requirements of subsection (b). 

7 (b) REQUIREMENTS.—Legislation meets the require8 ments of this subsection if the legislation— 

9 (1) simplifies the Internal Revenue Code of 

10 1986 by reducing the number of tax preferences and 

11 reducing individual tax rates proportionally, with the 

12 highest individual tax rate significantly below 35 

13 percent; 

14 (2) permanently repeals the alternative min15 imum tax; 

16 (3) is projected, when compared to the current 

17 tax policy baseline, to be revenue neutral or result 

18 in revenue losses; 

19 (4) has a dynamic effect which is projected to 

20 stimulate economic growth and lead to increased rev21 enue; 

22 (5) applies any increased revenue from stimu23 lated economic growth to additional rate reductions 

24 and does not permit any such increased revenue to 

25 be used for additional Federal spending; 

26 (6) retains a progressive tax code; and 

mstockstill on DSK4VPTVN1PROD with BILLS

7 

•S 3413 PCS

1 (7) provides for revenue-neutral reform of the 

2 taxation of corporations and businesses by— 

3 (A) providing a top tax rate on corpora4 tions of no more than 25 percent; and 

5 (B) implementing a competitive territorial 

6 tax system. 

mstockstill on DSK4VPTVN1PROD with BILLS

Calendar No. 468 

112TH CONGRESS 

2D SESSION S. 3413 

A BILL 

To amend the Internal Revenue Code of 1986 to 

for tax reform. expensing limitations, and to provide instructions ternative minimum tax relief, to extend increased in 2001 and 2003, to provide for temporary altemporarily extend tax relief provisions enacted 

JULY 19, 2012 

Read twice and ordered placed on the calendar 

mstockstill on DSK4VPTVN1PROD with BILLS