II 

Calendar No. 460 

112TH CONGRESS 

2D SESSION S. 3401 

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 18, 2012 

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

which was read the first time 

JULY 19, 2012 

Read the second time and 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, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Tax Relief Act of 

3 2012’’. 

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

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

6 Growth and Tax Relief Reconciliation Act of 2001 is 

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

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

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

10 this section shall take effect as if included in the enact11 ment of the Economic Growth and Tax Relief Reconcili12 ation Act of 2001. 

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

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

15 Growth Tax Relief Reconciliation Act of 2003 is amended 

16 by striking ‘‘December 31, 2012’’ and inserting ‘‘Decem17 ber 31, 2013’’. 

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

19 this section shall take effect as if included in the enact20 ment of the Jobs and Growth Tax Relief Reconciliation 

21 Act of 2003. 

22 SEC. 4. ALTERNATIVE MINIMUM TAX RELIEF. 

23 (a) TEMPORARY EXTENSION OF INCREASED ALTER24 NATIVE MINIMUM TAX EXEMPTION AMOUNT.— 

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

2 55(d) of the Internal Revenue Code of 1986 is 

3 amended— 

4 (A) by striking ‘‘$72,450’’ and all that fol5 lows through ‘‘2011’’ in subparagraph (A) and 

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

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

8 taxable years beginning in 2013’’, and 

9 (B) by striking ‘‘$47,450’’ and all that fol10 lows through ‘‘2011’’ in subparagraph (B) and 

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

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

13 taxable years beginning in 2013’’. 

14 (b) TEMPORARY EXTENSION OF ALTERNATIVE MIN15 IMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL

16 CREDITS.— 

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

18 26(a) of the Internal Revenue Code of 1986 is 

19 amended— 

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

21 ‘‘2011, 2012, or 2013’’, and 

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

23 thereof and inserting ‘‘2013’’. 

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 5. EXTENSION OF INCREASED EXPENSING LIMITA5 TIONS AND TREATMENT OF CERTAIN REAL 

6 PROPERTY AS SECTION 179 PROPERTY. 

7 (a) IN GENERAL.— 

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

9 the Internal Revenue Code of 1986 is amended— 

10 (A) by striking ‘‘2010 or 2011,’’ in sub11 paragraph (B) and inserting ‘‘2010, 2011, 

12 2012, or 2013, and’’, 

13 (B) by striking subparagraph (C), 

14 (C) by redesignating subparagraph (D) as 

15 subparagraph (C), and 

16 (D) in subparagraph (C), as so redesig17 nated, by striking ‘‘2012’’ and inserting 

18 ‘‘2013’’. 

19 (2) REDUCTION IN LIMITATION.—Section 

20 179(b)(2) of such Code is amended— 

21 (A) by striking ‘‘2010 or 2011,’’ in sub22 paragraph (B) and inserting ‘‘2010, 2011, or 

23 2012, and’’, 

24 (B) by striking subparagraph (C), 

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1 (C) by redesignating subparagraph (D) as 

2 subparagraph (C), and 

3 (D) in subparagraph (C), as so redesig4 nated, by striking ‘‘2012’’ and inserting 

5 ‘‘2013’’. 

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

7 of section 179 of such Code is amended by striking 

8 paragraph (6). 

9 (b) COMPUTER SOFTWARE.—Section 

10 179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is 

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

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

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

14 inserting ‘‘2014’’. 

15 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

16 REAL PROPERTY.— 

17 (1) IN GENERAL.—Section 179(f)(1) of the In18 ternal Revenue Code of 1986 is amended by striking 

19 ‘‘2010 or 2011’’ and inserting ‘‘2010, 2011, 2012, 

20 or 2013’’. 

21 (2) CARRYOVER LIMITATION.— 

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

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

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

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1 (B) CONFORMING AMENDMENT.—The 

2 heading for subparagraph (C) of section 

3 179(f)(4) of such Code is amended by striking 

4 ‘‘2010’’ and inserting ‘‘2010, 2011 AND 2012’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2011. 

8 SEC. 6. INSTRUCTIONS FOR TAX REFORM. 

9 (a) IN GENERAL.—The Senate Committee on Fi10 nance shall report legislation not later than 12 months 

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

12 of changes in laws within its jurisdiction which meet the 

13 requirements of subsection (b). 

14 (b) REQUIREMENTS.—Legislation meets the require15 ments of this subsection if the legislation— 

16 (1) simplifies the Internal Revenue Code of 

17 1986 by reducing the number of tax preferences and 

18 reducing individual tax rates proportionally, with the 

19 highest individual tax rate significantly below 35 

20 percent; 

21 (2) permanently repeals the alternative min22 imum tax; 

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

24 tax policy baseline, to be revenue neutral or result 

25 in revenue losses; 

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

2 stimulate economic growth and lead to increased rev3 enue; 

4 (5) applies any increased revenue from stimu5 lated economic growth to additional rate reductions 

6 and does not permit any such increased revenue to 

7 be used for additional Federal spending; 

8 (6) retains a progressive tax code; and 

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

10 taxation of corporations and businesses by— 

11 (A) providing a top tax rate on corpora12 tions of no more than 25 percent; and 

13 (B) implementing a competitive territorial 

14 tax system. 

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Calendar No. 460 

112TH CONGRESS 

2D SESSION S. 3401 

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 the second time and placed on the calendar 

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