II 

112TH CONGRESS 

2D SESSION S. 3417 

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 23, 2012 

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

which was read twice and referred to the Committee on Finance 

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’’. 


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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 


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

2 beginning in 2012’’, and 

3 (B) by striking ‘‘$47,450’’ and all that fol4 lows through ‘‘2011’’ in subparagraph (B) and 

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

6 beginning in 2012’’. 

7 (b) TEMPORARY EXTENSION OF ALTERNATIVE MIN8 IMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL

9 CREDITS.— 

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

11 26(a) of the Internal Revenue Code of 1986 is 

12 amended— 

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

14 ‘‘2011, or 2012’’, and 

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

16 thereof and inserting ‘‘2012’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2011. 

20 SEC. 5. EXTENSION OF INCREASED EXPENSING LIMITA21 TIONS AND TREATMENT OF CERTAIN REAL 

22 PROPERTY AS SECTION 179 PROPERTY. 

23 (a) IN GENERAL.— 

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

25 the Internal Revenue Code of 1986 is amended— 


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1 (A) by striking ‘‘2010 or 2011,’’ in sub2 paragraph (B) and inserting ‘‘2010, 2011, 

3 2012, or 2013, and’’, 

4 (B) by striking subparagraph (C), 

5 (C) by redesignating subparagraph (D) as 

6 subparagraph (C), and 

7 (D) in subparagraph (C), as so redesig8 nated, by striking ‘‘2012’’ and inserting 

9 ‘‘2013’’. 

10 (2) REDUCTION IN LIMITATION.—Section 

11 179(b)(2) of such Code is amended— 

12 (A) by striking ‘‘2010 or 2011,’’ in sub13 paragraph (B) and inserting ‘‘2010, 2011, 

14 2012, or 2013, and’’, 

15 (B) by striking subparagraph (C), 

16 (C) by redesignating subparagraph (D) as 

17 subparagraph (C), and 

18 (D) in subparagraph (C), as so redesig19 nated, by striking ‘‘2012’’ and inserting 

20 ‘‘2013’’. 

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

22 of section 179 of such Code is amended by striking 

23 paragraph (6). 


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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. 


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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 


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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. 

Æ 


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