In the House of Representatives, U. S., 

December 2, 2010. 

Resolved, That the House agree to the amendment of the 

Senate to the bill (H.R. 4853) entitled ‘‘An Act to amend the 

Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, 

to amend title 49, United States Code, to extend authorizations for the airport improvement program, and for other 

purposes.’’, with the following 

HOUSE AMENDMENT TO SENATE AMENDMENT: 

In lieu of the matter proposed to be inserted by the 

amendment of the Senate, insert the following: 

1 SECTION 1. SHORT TITLE; ETC. 

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

3 ‘‘Middle Class Tax Relief Act of 2010’’. 

4 (b) AMENDMENT OF 1986 CODE.—Except as otherwise 

5 expressly provided, whenever in this Act an amendment or 

6 repeal is expressed in terms of an amendment to, or repeal 

7 of, a section or other provision, the reference shall be consid8 ered to be made to a section or other provision of the Inter9 nal Revenue Code of 1986. 

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

11 this Act is as follows: 

Sec. 1. Short title; etc. 
2 

•HR 4853 EAH 

TITLE I—MIDDLE CLASS TAX RELIEF MADE PERMANENT 

Sec. 101. Middle class tax relief made permanent. 

Sec. 102. Certain provisions not applicable to high income individuals. 

Sec. 103. Related amendments. 

TITLE II—EXPENSING BY SMALL BUSINESSES OF CERTAIN 

DEPRECIABLE ASSETS 

Sec. 201. Increased limitations on expensing by small businesses of certain depreciable assets. 

TITLE III—EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF 

Sec. 301. Extension of alternative minimum tax relief for nonrefundable personal 

credits. 

Sec. 302. Extension of increased alternative minimum tax exemption amount. 

TITLE IV—BUDGETARY PROVISION 

Sec. 401. Paygo compliance. 

1 TITLE I—MIDDLE CLASS TAX 

2 RELIEF MADE PERMANENT 

3 SEC. 101. MIDDLE CLASS TAX RELIEF MADE PERMANENT. 

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

5 Growth and Tax Relief Reconciliation Act of 2001 shall not 

6 apply to the following provisions of such Act (and to the 

7 amendments made by such provisions): 

8 (1) Title I (relating to individual income tax 

9 rate reductions). 

10 (2) Title II (relating to tax benefits related to 

11 children). 

12 (3) Title III (relating to marriage penalty re13 lief). 

14 (4) Title IV (relating to affordable education 

15 provisions). 
3 

•HR 4853 EAH 

1 (b) REDUCED RATES ON CAPITAL GAINS AND DIVI2 DENDS.—The Jobs and Growth Tax Relief Reconciliation 

3 Act of 2003 is amended by striking section 303. 

4 SEC. 102. CERTAIN PROVISIONS NOT APPLICABLE TO HIGH 

5 INCOME INDIVIDUALS. 

6 (a) INDIVIDUAL INCOME TAX RATES.—Subsection (i) 

7 of section 1 is amended by striking paragraph (2), by redes8 ignating paragraph (3) as paragraph (4), and by inserting 

9 after paragraph (1) the following new paragraphs: 

10 ‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.—The 

11 tables under subsections (a), (b), (c), (d), and (e) shall 

12 be applied— 

13 ‘‘(A) by substituting ‘25%’ for ‘28%’ each 

14 place it appears (before the application of sub15 paragraph (B)), and 

16 ‘‘(B) by substituting ‘28%’ for ‘31%’ each 

17 place it appears. 

18 ‘‘(3) 33-PERCENT RATE BRACKET.— 

19 ‘‘(A) IN GENERAL.—In the case of taxable 

20 years beginning after December 31, 2010— 

21 ‘‘(i) the rate of tax under subsections 

22 (a), (b), (c), and (d) on a taxpayer’s taxable 

23 income in the fourth rate bracket shall be 33 

24 percent to the extent such income does not 

25 exceed an amount equal to the excess of— 
4 

•HR 4853 EAH 

1 ‘‘(I) the applicable amount, over 

2 ‘‘(II) the dollar amount at which 

3 such bracket begins, and 

4 ‘‘(ii) the 36 percent rate of tax under 

5 such subsections shall apply only to the tax6 payer’s taxable income in such bracket in 

7 excess of the amount to which clause (i) ap8 plies. 

9 ‘‘(B) APPLICABLE AMOUNT.—For purposes 

10 of this paragraph, the term ‘applicable amount’ 

11 means the excess of— 

12 ‘‘(i) the applicable threshold, over 

13 ‘‘(ii) the sum of the following amounts 

14 in effect for the taxable year: 

15 ‘‘(I) the basic standard deduction 

16 (within the meaning of section 

17 63(c)(2)), and 

18 ‘‘(II) the exemption amount 

19 (within the meaning of section 

20 151(d)(1)) (or, in the case of subsection 

21 (a), 2 such exemption amounts). 

22 ‘‘(C) APPLICABLE THRESHOLD.—For pur23 poses of this paragraph, the term ‘applicable 

24 threshold’ means— 
5 

•HR 4853 EAH 

1 ‘‘(i) $250,000 in the case of subsection 

2 (a), 

3 ‘‘(ii) $200,000 in the case of sub4 sections (b) and (c), and 

‘‘(iii) 1 5 ⁄2 the amount applicable under 

6 clause (i) (after adjustment, if any, under 

7 subparagraph (E)) in the case of subsection 

8 (d). 

9 ‘‘(D) FOURTH RATE BRACKET.—For pur10 poses of this paragraph, the term ‘fourth rate 

11 bracket’ means the bracket which would (deter12 mined without regard to this paragraph) be the 

13 36-percent rate bracket. 

14 ‘‘(E) INFLATION ADJUSTMENT.—For pur15 poses of this paragraph, a rule similar to the 

16 rule of paragraph (1)(C) shall apply with respect 

17 to taxable years beginning in calendar years 

18 after 2010, applied by substituting ‘2008’ for 

19 ‘1992’ in subsection (f)(3)(B).’’. 

20 (b) PHASEOUT OF PERSONAL EXEMPTIONS AND

21 ITEMIZED DEDUCTIONS.— 

22 (1) OVERALL LIMITATION ON ITEMIZED DEDUC23 TIONS.—Section 68 is amended— 

24 (A) by striking ‘‘the applicable amount’’ the 

25 first place it appears in subsection (a) and in-
6 

•HR 4853 EAH 

1 serting ‘‘the applicable threshold in effect under 

2 section 1(i)(3)’’, 

3 (B) by striking ‘‘the applicable amount’’ in 

4 subsection (a)(1) and inserting ‘‘such applicable 

5 threshold’’, 

6 (C) by striking subsection (b) and redesig7 nating subsections (c), (d), and (e) as subsections 

8 (b), (c), and (d), respectively, and 

9 (D) by striking subsections (f) and (g). 

10 (2) PHASEOUT OF DEDUCTIONS FOR PERSONAL

11 EXEMPTIONS.— 

12 (A) IN GENERAL.—Paragraph (3) of section 

13 151(d) is amended— 

14 (i) by striking ‘‘the threshold amount’’ 

15 in subparagraphs (A) and (B) and insert16 ing ‘‘the applicable threshold in effect under 

17 section 1(i)(3)’’, 

18 (ii) by striking subparagraph (C) and 

19 redesignating subparagraph (D) as sub20 paragraph (C), and 

21 (iii) by striking subparagraphs (E) 

22 and (F). 

23 (B) CONFORMING AMENDMENT.—Paragraph 

24 (4) of section 151(d) is amended— 

25 (i) by striking subparagraph (B), 
7 

•HR 4853 EAH 

1 (ii) by redesignating clauses (i) and 

2 (ii) of subparagraph (A) as subparagraphs 

3 (A) and (B), respectively, and by indenting 

4 such subparagraphs (as so redesignated) ac5 cordingly, and 

6 (iii) by striking all that precedes ‘‘in a 

7 calendar year after 1989,’’ and inserting the 

8 following: 

9 ‘‘(4) INFLATION ADJUSTMENT.—In the case of 

10 any taxable year beginning’’. 

11 (c) REDUCED RATE ON CAPITAL GAINS AND DIVI12 DENDS.— 

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

14 (1)(h) is amended by striking subparagraph (C), by 

15 redesignating subparagraphs (D) and (E) as subpara16 graphs (E) and (F) and by inserting after subpara17 graph (B) the following new subparagraphs: 

18 ‘‘(C) 15 percent of the lesser of— 

19 ‘‘(i) so much of the adjusted net capital 

20 gain (or, if less, taxable income) as exceeds 

21 the amount on which a tax is determined 

22 under subparagraph (B), or 

23 ‘‘(ii) the excess (if any) of— 

24 ‘‘(I) the amount of taxable income 

25 which would (without regard to this 
8 

•HR 4853 EAH 

1 subsection) be taxed at a rate below 36 

2 percent, over 

3 ‘‘(II) the sum of the amounts on 

4 which tax is determined under sub5 paragraphs (A) and (B), 

6 ‘‘(D) 20 percent of the adjusted net capital 

7 gain (or, if less, taxable income) in excess of the 

8 sum of the amounts on which tax is determined 

9 under subparagraphs (B) and (C),’’. 

10 (2) DIVIDENDS.—Subparagraph (A) of section 

11 1(h)(11) is amended by striking ‘‘qualified dividend 

12 income’’ and inserting ‘‘so much of the qualified divi13 dend income as does not exceed the excess (if any) 

14 of— 

15 ‘‘(i) the amount of taxable income 

16 which would (without regard to this sub17 section) be taxed at a rate below 36 percent, 

18 over 

19 ‘‘(ii) taxable income reduced by quali20 fied dividend income.’’. 

21 (3) MINIMUM TAX.—Section 55 is amended by 

22 adding at the end the following new subsection: 

23 ‘‘(f) APPLICATION OF MAXIMUM RATE OF TAX ON NET

24 CAPITAL GAIN OF NONCORPORATE TAXPAYERS.—In the 

25 case of taxable years beginning after December 31, 2010, 
9 

•HR 4853 EAH 

1 the amount determined under subparagraph (C) of sub2 section (b)(3) shall be the sum of— 

3 ‘‘(1) 15 percent of the lesser of— 

4 ‘‘(A) so much of the adjusted net capital 

5 gain (or, if less, taxable excess) as exceeds the 

6 amount on which tax is determined under sub7 paragraph (B) of subsection (b)(3), or 

8 ‘‘(B) the excess described in section 

9 1(h)(1)(C)(ii), plus 

10 ‘‘(2) 20 percent of the adjusted net capital gain 

11 (or, if less, taxable excess) in excess of the sum of the 

12 amounts on which tax is determined under subsection 

13 (b)(3)(B) and paragraph (1).’’. 

14 (4) CONFORMING AMENDMENTS.— 

15 (A) The following provisions are amended 

16 by striking ‘‘15 percent’’ and inserting ‘‘20 per17 cent’’: 

18 (i) Section 1445(e)(1). 

19 (ii) The second sentence of section 

20 7518(g)(6)(A). 

21 (iii) Section 53511(f)(2) of title 46, 

22 United States Code. 

23 (B) Sections 531 and 541 are each amended 

24 by striking ‘‘15 percent of’’ and inserting ‘‘the 
10 

•HR 4853 EAH 

1 product of the highest rate of tax under section 

2 1(c) and’’. 

3 (C) Section 1445(e)(6) is amended by strik4 ing ‘‘15 percent (20 percent in the case of taxable 

5 years beginning after December 31, 2010)’’ and 

6 inserting ‘‘20 percent’’. 

7 (d) EFFECTIVE DATES.— 

8 (1) IN GENERAL.—Except as provided in para9 graph (2), the amendments made by this section shall 

10 apply to taxable years beginning after December 31, 

11 2010. 

12 (2) WITHHOLDING.—The amendments made by 

13 subparagraphs (A)(i) and (C) of subsection (c)(4) 

14 shall apply to amounts paid on or after January 1, 

15 2011. 

16 SEC. 103. RELATED AMENDMENTS. 

17 (a) APPLICATION OF INCREASE IN REFUNDABLE POR18 TION OF CHILD TAX CREDIT.— 

19 (1) IN GENERAL.—Subsection (d) of section 24 is 

20 amended— 

21 (A) by striking ‘‘$10,000’’ in paragraph 

22 (1)(B)(i) and inserting ‘‘$3,000’’, and 

23 (B) by striking paragraphs (3) and (4). 
11 

•HR 4853 EAH 

1 (2) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to taxable years begin3 ning after December 31, 2010. 

4 (b) APPLICATION OF INCREASE IN EARNED INCOME

5 TAX CREDIT.— 

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

7 32(b)(2) is amended to read as follows: 

8 ‘‘(B) JOINT RETURNS.— 

9 ‘‘(i) IN GENERAL.—In the case of a 

10 joint return filed by an eligible individual 

11 and such individual’s spouse, the phaseout 

12 amount determined under subparagraph 

13 (A) shall be increased by $5,000. 

14 ‘‘(ii) INFLATION ADJUSTMENT.—In the 

15 case of any taxable year beginning after 

16 2010, the $5,000 amount in clause (i) shall 

17 be increased by an amount equal to— 

18 ‘‘(I) such dollar amount, multi19 plied by 

20 ‘‘(II) the cost of living adjustment 

21 determined under section 1(f)(3) for 

22 the calendar year in which the taxable 

23 year begins determined by substituting 

24 ‘calendar year 2008’ for ‘calendar year 

25 1992’ in subparagraph (B) thereof. 
12 

•HR 4853 EAH 

1 Subparagraph (A) of subsection (j)(2) shall 

2 apply after taking into account any in3 crease under the preceding sentence.’’. 

4 (2) CONFORMING AMENDMENT.—Subsection (b) 

5 of section 32 is amended by striking paragraph (3). 

6 (3) EFFECTIVE DATE.—The amendments made 

7 by this subsection shall apply to taxable years begin8 ning after December 31, 2010. 

9 (c) APPLICATION TO ADOPTION CREDIT AND ADOPTION

10 ASSISTANCE PROGRAMS.—Subsection (c) of section 10909 

11 of the Patient Protection and Affordable Care Act is amend12 ed to read as follows: 

13 ‘‘(c) The amendments made by this section shall not 

14 apply to taxable years beginning after December 31, 2011.’’. 

15 TITLE II—EXPENSING BY SMALL 

16 BUSINESSES OF CERTAIN DE17 PRECIABLE ASSETS 

18 SEC. 201. INCREASED LIMITATIONS ON EXPENSING BY 

19 SMALL BUSINESSES OF CERTAIN DEPRE20 CIABLE ASSETS. 

21 (a) DOLLAR LIMITATION.—Subparagraph (C) of sec22 tion 179(b)(1) is amended by striking ‘‘$25,000’’ and in23 serting ‘‘$125,000’’. 
13 

•HR 4853 EAH 

1 (b) THRESHOLD AT WHICH PHASEOUT BEGINS.— 

2 Subparagraph (C) of section 179(b)(2) is amended by strik3 ing ‘‘$200,000’’ and inserting ‘‘$500,000’’. 

4 (c) INFLATION ADJUSTMENT.—Subsection (b) of sec5 tion 179 is amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(6) INFLATION ADJUSTMENTS.— 

8 ‘‘(A) IN GENERAL.—In the case of any tax9 able beginning in a calendar year after 2011, the 

10 $125,000 and $500,000 amounts in paragraphs 

11 (1)(C) and (2)(C) shall each be increased by an 

12 amount equal to— 

13 ‘‘(i) such dollar amount, multiplied by 

14 ‘‘(ii) the cost-of-living adjustment de15 termined under section 1(f)(3) for the cal16 endar year in which the taxable year begins 

17 determined by substituting ‘calendar year 

18 2006’ for ‘calendar year 1992’ in subpara19 graph (B) thereof. 

20 ‘‘(B) ROUNDING.— 

21 ‘‘(i) DOLLAR LIMITATION.—If the 

22 amount in paragraph (1) as increased 

23 under subparagraph (A) is not a multiple 

24 of $1,000, such amount shall be rounded to 

25 the nearest multiple of $1,000. 
14 

•HR 4853 EAH 

1 ‘‘(ii) PHASEOUT AMOUNT.—If the 

2 amount in paragraph (2) as increased 

3 under subparagraph (A) is not a multiple 

4 of $10,000, such amount shall be rounded to 

5 the nearest multiple of $10,000.’’. 

6 (d) AUTHORITY TO REVOKE ELECTION MADE PERMA7 NENT.—Paragraph (2) of section 179(c) is amended by 

8 striking ‘‘and before 2012’’. 

9 (e) TREATMENT OF CERTAIN COMPUTER SOFTWARE AS

10 SECTION 179 PROPERTY MADE PERMANENT.—Clause (ii) 

11 of section 179(d)(1)(A) is amended by striking ‘‘and before 

12 2012’’. 

13 (f) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to taxable years beginning after Decem15 ber 31, 2011. 

16 TITLE III—EXTENSION OF AL17 TERNATIVE MINIMUM TAX RE18 LIEF 

19 SEC. 301. EXTENSION OF ALTERNATIVE MINIMUM TAX RE20 LIEF FOR NONREFUNDABLE PERSONAL 

21 CREDITS. 

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

23 amended— 

24 (1) by striking ‘‘2000, 2001, 2002, 2003, 2004, 

25 2005, 2006, 2007, 2008, or 2009’’ and inserting ‘‘the 
15 

•HR 4853 EAH 

1 period beginning with calendar year 2000 and ending 

2 with calendar year 2011’’, and 

3 (2) by striking ‘‘2009’’ in the heading thereof and 

4 inserting ‘‘2011’’. 

5 (b) EFFECTIVE DATE.—The amendments made by this 

6 section shall apply to taxable years beginning after Decem7 ber 31, 2009. 

8 SEC. 302. EXTENSION OF INCREASED ALTERNATIVE MIN9 IMUM TAX EXEMPTION AMOUNT. 

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

11 amended— 

12 (1) by striking ‘‘($70,950 in the case of taxable 

13 years beginning in 2009)’’ in subparagraph (A) and 

14 inserting ‘‘($72,450 in the case of taxable years begin15 ning in 2010 or 2011)’’, and 

16 (2) by striking ‘‘($46,700 in the case of taxable 

17 years beginning in 2009)’’ in subparagraph (B) and 

18 inserting ‘‘($47,450 in the case of taxable years begin19 ning in 2010 or 2011)’’. 

20 (b) NONAPPLICATION OF EGTRRA SUNSET.—Section 

21 901 of the Economic Growth and Tax Relief Reconciliation 

22 Act of 2001 shall not apply to the amendments made by 

23 section 701 of such Act. 
16 

•HR 4853 EAH 

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

2 section shall apply to taxable years beginning after Decem3 ber 31, 2009. 

4 TITLE IV—BUDGETARY 

5 PROVISION 

6 SEC. 401. PAYGO COMPLIANCE. 

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

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

9 shall be determined by reference to the latest statement titled 

10 ‘‘Budgetary Effects of PAYGO Legislation’’ for this Act, 

11 submitted for printing in the Congressional Record by the 

12 Chairman of the House Budget Committee, provided that 

13 such statement has been submitted prior to the vote on pas14 sage. 

Attest: 

Clerk. 

111TH CONGRESS 

2D SESSION H.R. 4853 

HOUSE AMENDMENT TO 

SENATE AMENDMENT