II 

Calendar No. 627 

113TH CONGRESS 

2D SESSION H. R. 5771 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 8, 2014 

Received; read the first time 

DECEMBER 9, 2014 

Read the second time and placed on the calendar 

AN ACT 

To amend the Internal Revenue Code of 1986 to extend 

certain expiring provisions and make technical corrections, to amend the Internal Revenue Code of 1986 

to provide for the tax treatment of ABLE accounts established under State programs for the care of family 

members with disabilities, and for other purposes. 

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

3 DIVISION A—TAX INCREASE 

4 PREVENTION ACT OF 2014 

5 SECTION 1. SHORT TITLE, ETC. 

6 (a) SHORT TITLE.—This division may be cited as the 

7 ‘‘Tax Increase Prevention Act of 2014’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

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

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

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

8 this Act is as follows: 

DIVISION A—TAX INCREASE PREVENTION ACT OF 2014 

Sec. 1. Short title, etc. 

TITLE I—CERTAIN EXPIRING PROVISIONS 

Subtitle A—Individual Tax Extenders 

Sec. 101. Extension of deduction for certain expenses of elementary and secondary school teachers. 

Sec. 102. Extension of exclusion from gross income of discharge of qualified 

principal residence indebtedness. 

Sec. 103. Extension of parity for employer-provided mass transit and parking 

benefits. 

Sec. 104. Extension of mortgage insurance premiums treated as qualified residence interest. 

Sec. 105. Extension of deduction of State and local general sales taxes. 

Sec. 106. Extension of special rule for contributions of capital gain real property made for conservation purposes. 

Sec. 107. Extension of above-the-line deduction for qualified tuition and related 

expenses. 

Sec. 108. Extension of tax-free distributions from individual retirement plans 

for charitable purposes. 

Subtitle B—Business Tax Extenders 

Sec. 111. Extension of research credit. 

Sec. 112. Extension of temporary minimum low-income housing tax credit rate 

for non-federally subsidized buildings. 

Sec. 113. Extension of military housing allowance exclusion for determining 

whether a tenant in certain counties is low-income. 

Sec. 114. Extension of Indian employment tax credit. 

Sec. 115. Extension of new markets tax credit. 

Sec. 116. Extension of railroad track maintenance credit. 

Sec. 117. Extension of mine rescue team training credit. 

Sec. 118. Extension of employer wage credit for employees who are active duty 

members of the uniformed services. 

Sec. 119. Extension of work opportunity tax credit. 

Sec. 120. Extension of qualified zone academy bonds. 


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Sec. 121. Extension of classification of certain race horses as 3-year property. 

Sec. 122. Extension of 15-year straight-line cost recovery for qualified leasehold 

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

Sec. 123. Extension of 7-year recovery period for motorsports entertainment 

complexes. 

Sec. 124. Extension of accelerated depreciation for business property on an Indian reservation. 

Sec. 125. Extension of bonus depreciation. 

Sec. 126. Extension of enhanced charitable deduction for contributions of food 

inventory. 

Sec. 127. Extension of increased expensing limitations and treatment of certain 

real property as section 179 property. 

Sec. 128. Extension of election to expense mine safety equipment. 

Sec. 129. Extension of special expensing rules for certain film and television 

productions. 

Sec. 130. Extension of deduction allowable with respect to income attributable 

to domestic production activities in Puerto Rico. 

Sec. 131. Extension of modification of tax treatment of certain payments to 

controlling exempt organizations. 

Sec. 132. Extension of treatment of certain dividends of regulated investment 

companies. 

Sec. 133. Extension of RIC qualified investment entity treatment under 

FIRPTA. 

Sec. 134. Extension of subpart F exception for active financing income. 

Sec. 135. Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding 

company rules. 

Sec. 136. Extension of temporary exclusion of 100 percent of gain on certain 

small business stock. 

Sec. 137. Extension of basis adjustment to stock of S corporations making 

charitable contributions of property. 

Sec. 138. Extension of reduction in S-corporation recognition period for builtin gains tax. 

Sec. 139. Extension of empowerment zone tax incentives. 

Sec. 140. Extension of temporary increase in limit on cover over of rum excise 

taxes to Puerto Rico and the Virgin Islands. 

Sec. 141. Extension of American Samoa economic development credit. 

Subtitle C—Energy Tax Extenders 

Sec. 151. Extension of credit for nonbusiness energy property. 

Sec. 152. Extension of second generation biofuel producer credit. 

Sec. 153. Extension of incentives for biodiesel and renewable diesel. 

Sec. 154. Extension of production credit for Indian coal facilities placed in service before 2009. 

Sec. 155. Extension of credits with respect to facilities producing energy from 

certain renewable resources. 

Sec. 156. Extension of credit for energy-efficient new homes. 

Sec. 157. Extension of special allowance for second generation biofuel plant 

property. 

Sec. 158. Extension of energy efficient commercial buildings deduction. 

Sec. 159. Extension of special rule for sales or dispositions to implement FERC 

or State electric restructuring policy for qualified electric utilities. 


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Sec. 160. Extension of excise tax credits relating to certain fuels. 

Sec. 161. Extension of credit for alternative fuel vehicle refueling property. 

Subtitle D—Extenders Relating to Multiemployer Defined Benefit Pension 

Plans 

Sec. 171. Extension of automatic extension of amortization periods. 

Sec. 172. Extension of shortfall funding method and endangered and critical 

rules. 

TITLE II—TECHNICAL CORRECTIONS 

Sec. 201. Short title. 

Sec. 202. Amendments relating to American Taxpayer Relief Act of 2012. 

Sec. 203. Amendment relating to Middle Class Tax Relief and Job Creation Act 

of 2012. 

Sec. 204. Amendment relating to FAA Modernization and Reform Act of 2012. 

Sec. 205. Amendments relating to Regulated Investment Company Modernization Act of 2010. 

Sec. 206. Amendments relating to Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. 

Sec. 207. Amendments relating to Creating Small Business Jobs Act of 2010. 

Sec. 208. Clerical amendment relating to Hiring Incentives to Restore Employment Act. 

Sec. 209. Amendments relating to American Recovery and Reinvestment Tax 

Act of 2009. 

Sec. 210. Amendments relating to Energy Improvement and Extension Act of 

2008. 

Sec. 211. Amendments relating to Tax Extenders and Alternative Minimum 

Tax Relief Act of 2008. 

Sec. 212. Clerical amendments relating to Housing Assistance Tax Act of 2008. 

Sec. 213. Amendments and provision relating to Heroes Earnings Assistance 

and Relief Tax Act of 2008. 

Sec. 214. Amendments relating to Economic Stimulus Act of 2008. 

Sec. 215. Amendments relating to Tax Technical Corrections Act of 2007. 

Sec. 216. Amendment relating to Tax Relief and Health Care Act of 2006. 

Sec. 217. Amendment relating to Safe, Accountable, Flexible, Efficient Transportation Equity Act of 2005: A Legacy for Users. 

Sec. 218. Amendments relating to Energy Tax Incentives Act of 2005. 

Sec. 219. Amendments relating to American Jobs Creation Act of 2004. 

Sec. 220. Other clerical corrections. 

Sec. 221. Deadwood provisions. 

TITLE III—JOINT COMMITTEE ON TAXATION 

Sec. 301. Increased refund and credit threshold for Joint Committee on Taxation review of C corporation return. 

TITLE IV—BUDGETARY EFFECTS 

Sec. 401. Budgetary effects. 

DIVISION B—ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 

2014 

Sec. 1. Short title; etc. 

TITLE I—QUALIFIED ABLE PROGRAMS 


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Sec. 101. Purposes. 

Sec. 102. Qualified ABLE programs. 

Sec. 103. Treatment of ABLE accounts under certain Federal programs. 

Sec. 104. Treatment of able accounts in bankruptcy. 

Sec. 105. Investment direction rule for 529 plans. 

TITLE II—OFFSETS 

Sec. 201. Correction to workers compensation offset age. 

Sec. 202. Accelerated application of relative value targets for misvalued services 

in the Medicare physician fee schedule. 

Sec. 203. Consistent treatment of vacuum erection systems in Medicare Parts 

B and D. 

Sec. 204. One-year delay of implementation of oral-only policy under Medicare 

ESRD prospective payment system. 

Sec. 205. Modification relating to Inland Waterways Trust Fund financing 

rate. 

Sec. 206. Certified professional employer organizations. 

Sec. 207. Exclusion of dividends from controlled foreign corporations from the 

definition of personal holding company income for purposes of 

the personal holding company rules. 

Sec. 208. Inflation adjustment for certain civil penalties under the Internal 

Revenue Code of 1986. 

Sec. 209. Increase in continuous levy. 

1 TITLE I—CERTAIN EXPIRING 

2 PROVISIONS 

3 Subtitle A—Individual Tax 

4 Extenders 

5 SEC. 101. EXTENSION OF DEDUCTION FOR CERTAIN EX6 PENSES OF ELEMENTARY AND SECONDARY 

7 SCHOOL TEACHERS. 

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

9 62(a)(2) is amended by striking ‘‘or 2013’’ and inserting 

10 ‘‘2013, or 2014’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2013. 


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1 SEC. 102. EXTENSION OF EXCLUSION FROM GROSS INCOME 

2 OF DISCHARGE OF QUALIFIED PRINCIPAL 

3 RESIDENCE INDEBTEDNESS. 

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

5 108(a)(1) is amended by striking ‘‘January 1, 2014’’ and 

6 inserting ‘‘January 1, 2015’’. 

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

8 this section shall apply to indebtedness discharged after 

9 December 31, 2013. 

10 SEC. 103. EXTENSION OF PARITY FOR EMPLOYER-PRO11 VIDED MASS TRANSIT AND PARKING BENE12 FITS. 

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

14 is amended by striking ‘‘January 1, 2014’’ and inserting 

15 ‘‘January 1, 2015’’. 

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

17 this section shall apply to months after December 31, 

18 2013. 

19 SEC. 104. EXTENSION OF MORTGAGE INSURANCE PRE20 MIUMS TREATED AS QUALIFIED RESIDENCE 

21 INTEREST. 

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

23 163(h)(3)(E)(iv) is amended by striking ‘‘December 31, 

24 2013’’ and inserting ‘‘December 31, 2014’’. 


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

2 this section shall apply to amounts paid or accrued after 

3 December 31, 2013. 

4 SEC. 105. EXTENSION OF DEDUCTION OF STATE AND LOCAL 

5 GENERAL SALES TAXES. 

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

7 164(b)(5) is amended by striking ‘‘January 1, 2014’’ and 

8 inserting ‘‘January 1, 2015’’. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2013. 

12 SEC. 106. EXTENSION OF SPECIAL RULE FOR CONTRIBU13 TIONS OF CAPITAL GAIN REAL PROPERTY 

14 MADE FOR CONSERVATION PURPOSES. 

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

16 170(b)(1)(E) is amended by striking ‘‘December 31, 

17 2013’’ and inserting ‘‘December 31, 2014’’. 

18 (b) CONTRIBUTIONS BY CERTAIN CORPORATE FARM19 ERS AND RANCHERS.—Clause (iii) of section 170(b)(2)(B) 

20 is amended by striking ‘‘December 31, 2013’’ and insert21 ing ‘‘December 31, 2014’’. 

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

23 this section shall apply to contributions made in taxable 

24 years beginning after December 31, 2013. 


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1 SEC. 107. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 

2 QUALIFIED TUITION AND RELATED EX3 PENSES. 

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

5 amended by striking ‘‘December 31, 2013’’ and inserting 

6 ‘‘December 31, 2014’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2013. 

10 SEC. 108. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM 

11 INDIVIDUAL RETIREMENT PLANS FOR CHARI12 TABLE PURPOSES. 

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

14 408(d)(8) is amended by striking ‘‘December 31, 2013’’ 

15 and inserting ‘‘December 31, 2014’’. 

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

17 this section shall apply to distributions made in taxable 

18 years beginning after December 31, 2013. 

19 Subtitle B—Business Tax 

20 Extenders 

21 SEC. 111. EXTENSION OF RESEARCH CREDIT. 

22 (a) IN GENERAL.—Paragraph (1) of section 41(h) is 

23 amended by striking ‘‘paid or incurred’’ and all that fol24 lows and inserting ‘‘paid or incurred after December 31, 

25 2014.’’. 


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1 (b) CONFORMING AMENDMENT.—Subparagraph (D) 

2 of section 45C(b)(1) is amended to read as follows: 

3 ‘‘(D) SPECIAL RULE.—If section 41 is not 

4 in effect for any period, such section shall be 

5 deemed to remain in effect for such period for 

6 purposes of this paragraph.’’. 

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

8 this section shall apply to amounts paid or incurred after 

9 December 31, 2013. 

10 SEC. 112. EXTENSION OF TEMPORARY MINIMUM LOW-IN11 COME HOUSING TAX CREDIT RATE FOR NON12 FEDERALLY SUBSIDIZED BUILDINGS. 

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

14 42(b)(2) is amended by striking ‘‘January 1, 2014’’ and 

15 inserting ‘‘January 1, 2015’’. 

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

17 this section shall take effect on January 1, 2014. 

18 SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE 

19 EXCLUSION FOR DETERMINING WHETHER A 

20 TENANT IN CERTAIN COUNTIES IS LOW-IN21 COME. 

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

23 the Housing Assistance Tax Act of 2008 is amended by 

24 striking ‘‘January 1, 2014’’ each place it appears and in25 serting ‘‘January 1, 2015’’. 


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

2 this section shall take effect as if included in the enact3 ment of section 3005 of the Housing Assistance Tax Act 

4 of 2008. 

5 SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CRED6 IT. 

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

8 amended by striking ‘‘December 31, 2013’’ and inserting 

9 ‘‘December 31, 2014’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2013. 

13 SEC. 115. EXTENSION OF NEW MARKETS TAX CREDIT. 

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

15 45D(f)(1) is amended by striking ‘‘and 2013’’ and insert16 ing ‘‘2013, and 2014’’. 

17 (b) CARRYOVER OF UNUSED LIMITATION.—Para18 graph (3) of section 45D(f) is amended by striking 

19 ‘‘2018’’ and inserting ‘‘2019’’. 

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

21 this section shall apply to calendar years beginning after 

22 December 31, 2013. 


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1 SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE 

2 CREDIT. 

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

4 amended by striking ‘‘January 1, 2014’’ and inserting 

5 ‘‘January 1, 2015’’. 

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

7 this section shall apply to expenditures paid or incurred 

8 in taxable years beginning after December 31, 2013. 

9 SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING 

10 CREDIT. 

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

12 amended by striking ‘‘December 31, 2013’’ and inserting 

13 ‘‘December 31, 2014’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2013. 

17 SEC. 118. EXTENSION OF EMPLOYER WAGE CREDIT FOR 

18 EMPLOYEES WHO ARE ACTIVE DUTY MEM19 BERS OF THE UNIFORMED SERVICES. 

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

21 amended by striking ‘‘December 31, 2013’’ and inserting 

22 ‘‘December 31, 2014’’. 

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

24 this section shall apply to payments made after December 

25 31, 2013. 


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1 SEC. 119. EXTENSION OF WORK OPPORTUNITY TAX CREDIT. 

2 (a) IN GENERAL.—Paragraph (4) of section 51(c) is 

3 amended by striking ‘‘for the employer’’ and all that fol4 lows and inserting ‘‘for the employer after December 31, 

5 2014’’. 

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

7 this section shall apply to individuals who begin work for 

8 the employer after December 31, 2013. 

9 SEC. 120. EXTENSION OF QUALIFIED ZONE ACADEMY 

10 BONDS. 

11 (a) EXTENSION.—Paragraph (1) of section 54E(c) is 

12 amended by striking ‘‘and 2013’’ and inserting ‘‘2013, 

13 and 2014’’. 

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

15 this section shall apply to obligations issued after Decem16 ber 31, 2013. 

17 SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN 

18 RACE HORSES AS 3-YEAR PROPERTY. 

19 (a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) 

20 is amended— 

21 (1) by striking ‘‘January 1, 2014’’ in subclause 

22 (I) and inserting ‘‘January 1, 2015’’, and 

23 (2) by striking ‘‘December 31, 2013’’ in sub24 clause (II) and inserting ‘‘December 31, 2014’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2013. 

4 SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE5 COVERY FOR QUALIFIED LEASEHOLD IM6 PROVEMENTS, QUALIFIED RESTAURANT 

7 BUILDINGS AND IMPROVEMENTS, AND 

8 QUALIFIED RETAIL IMPROVEMENTS. 

9 (a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec10 tion 168(e)(3)(E) are each amended by striking ‘‘January 

11 1, 2014’’ and inserting ‘‘January 1, 2015’’. 

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

13 this section shall apply to property placed in service after 

14 December 31, 2013. 

15 SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 

16 MOTORSPORTS ENTERTAINMENT COM17 PLEXES. 

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

19 168(i)(15) is amended by striking ‘‘December 31, 2013’’ 

20 and inserting ‘‘December 31, 2014’’. 

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

22 this section shall apply to property placed in service after 

23 December 31, 2013. 


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1 SEC. 124. EXTENSION OF ACCELERATED DEPRECIATION 

2 FOR BUSINESS PROPERTY ON AN INDIAN 

3 RESERVATION. 

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

5 is amended by striking ‘‘December 31, 2013’’ and insert6 ing ‘‘December 31, 2014’’. 

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

8 this section shall apply to property placed in service after 

9 December 31, 2013. 

10 SEC. 125. EXTENSION OF BONUS DEPRECIATION. 

11 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

12 is amended— 

13 (1) by striking ‘‘January 1, 2015’’ in subpara14 graph (A)(iv) and inserting ‘‘January 1, 2016’’, and 

15 (2) by striking ‘‘January 1, 2014’’ each place 

16 it appears and inserting ‘‘January 1, 2015’’. 

17 (b) SPECIAL RULE FOR FEDERAL LONG-TERM CON18 TRACTS.—Clause (ii) of section 460(c)(6)(B) is amended 

19 by striking ‘‘January 1, 2014 (January 1, 2015’’ and in20 serting ‘‘January 1, 2015 (January 1, 2016’’. 

21 (c) EXTENSION OF ELECTION TO ACCELERATE THE

22 AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 

23 (1) IN GENERAL.—Subclause (II) of section 

24 168(k)(4)(D)(iii) is amended by striking ‘‘January 

25 1, 2014’’ and inserting ‘‘January 1, 2015’’. 


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1 (2) ROUND 4 EXTENSION PROPERTY.—Para2 graph (4) of section 168(k) is amended by adding at 

3 the end the following new subparagraph: 

4 ‘‘(K) SPECIAL RULES FOR ROUND 4 EX5 TENSION PROPERTY.— 

6 ‘‘(i) IN GENERAL.—In the case of 

7 round 4 extension property, in applying 

8 this paragraph to any taxpayer— 

9 ‘‘(I) the limitation described in 

10 subparagraph (B)(i) and the business 

11 credit increase amount under sub12 paragraph (E)(iii) thereof shall not 

13 apply, and 

14 ‘‘(II) the bonus depreciation 

15 amount, maximum amount, and max16 imum increase amount shall be com17 puted separately from amounts com18 puted with respect to eligible qualified 

19 property which is not round 4 exten20 sion property. 

21 ‘‘(ii) ELECTION.— 

22 ‘‘(I) A taxpayer who has an elec23 tion in effect under this paragraph for 

24 round 3 extension property shall be 

25 treated as having an election in effect 


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1 for round 4 extension property unless 

2 the taxpayer elects to not have this 

3 paragraph apply to round 4 extension 

4 property. 

5 ‘‘(II) A taxpayer who does not 

6 have an election in effect under this 

7 paragraph for round 3 extension prop8 erty may elect to have this paragraph 

9 apply to round 4 extension property. 

10 ‘‘(iii) ROUND 4 EXTENSION PROP11 ERTY.—For purposes of this subpara12 graph, the term ‘round 4 extension prop13 erty’ means property which is eligible 

14 qualified property solely by reason of the 

15 extension of the application of the special 

16 allowance under paragraph (1) pursuant to 

17 the amendments made by section 125(a) of 

18 the Tax Increase Prevention Act of 2014 

19 (and the application of such extension to 

20 this paragraph pursuant to the amendment 

21 made by section 125(c) of such Act).’’. 

22 (d) CONFORMING AMENDMENTS.— 

23 (1) The heading for subsection (k) of section 

24 168 is amended by striking ‘‘JANUARY 1, 2014’’ and 

25 inserting ‘‘JANUARY 1, 2015’’. 


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1 (2) The heading for clause (ii) of section 

2 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

3 1, 2014’’ and inserting ‘‘PRE-JANUARY 1, 2015’’. 

4 (3) Subparagraph (C) of section 168(n)(2) is 

5 amended by striking ‘‘January 1, 2014’’ and insert6 ing ‘‘January 1, 2015’’. 

7 (4) Subparagraph (D) of section 1400L(b)(2) is 

8 amended by striking ‘‘January 1, 2014’’ and insert9 ing ‘‘January 1, 2015’’. 

10 (5) Subparagraph (B) of section 1400N(d)(3) 

11 is amended by striking ‘‘January 1, 2014’’ and in12 serting ‘‘January 1, 2015’’. 

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

14 this section shall apply to property placed in service after 

15 December 31, 2013, in taxable years ending after such 

16 date. 

17 SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUC18 TION FOR CONTRIBUTIONS OF FOOD INVEN19 TORY. 

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

21 170(e)(3)(C) is amended by striking ‘‘December 31, 

22 2013’’ and inserting ‘‘December 31, 2014’’. 

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

24 this section shall apply to contributions made after De25 cember 31, 2013. 


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1 SEC. 127. EXTENSION OF INCREASED EXPENSING LIMITA2 TIONS AND TREATMENT OF CERTAIN REAL 

3 PROPERTY AS SECTION 179 PROPERTY. 

4 (a) IN GENERAL.— 

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

6 amended— 

7 (A) by striking ‘‘beginning in 2010, 2011, 

8 2012, or 2013’’ in subparagraph (B) and in9 serting ‘‘beginning after 2009 and before 

10 2015’’, and 

11 (B) by striking ‘‘2013’’ in subparagraph 

12 (C) and inserting ‘‘2014’’. 

13 (2) REDUCTION IN LIMITATION.—Section 

14 179(b)(2) is amended— 

15 (A) by striking ‘‘beginning in 2010, 2011, 

16 2012, or 2013’’ in subparagraph (B) and in17 serting ‘‘beginning after 2009 and before 

18 2015’’, and 

19 (B) by striking ‘‘2013’’ in subparagraph 

20 (C) and inserting ‘‘2014’’. 

21 (b) COMPUTER SOFTWARE.—Section 

22 179(d)(1)(A)(ii) is amended by striking ‘‘2014’’ and in23 serting ‘‘2015’’. 

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

25 striking ‘‘2014’’ and inserting ‘‘2015’’. 


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1 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

2 REAL PROPERTY.— 

3 (1) IN GENERAL.—Section 179(f)(1) is amend4 ed by striking ‘‘beginning in 2010, 2011, 2012, or 

5 2013’’ and inserting ‘‘beginning after 2009 and be6 fore 2015’’. 

7 (2) CARRYOVER LIMITATION.— 

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

9 amended by striking ‘‘2013’’ each place it ap10 pears and inserting ‘‘2014’’. 

11 (B) CONFORMING AMENDMENT.—The 

12 heading of subparagraph (C) of section 

13 179(f)(4) is amended by striking ‘‘2011 AND

14 2012’’ and inserting ‘‘2011, 2012, AND 2013’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2013. 

18 SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE 

19 SAFETY EQUIPMENT. 

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

21 amended by striking ‘‘December 31, 2013’’ and inserting 

22 ‘‘December 31, 2014’’. 

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

24 this section shall apply to property placed in service after 

25 December 31, 2013. 


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1 SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR 

2 CERTAIN FILM AND TELEVISION PRODUC3 TIONS. 

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

5 amended by striking ‘‘December 31, 2013’’ and inserting 

6 ‘‘December 31, 2014’’. 

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

8 this section shall apply to productions commencing after 

9 December 31, 2013. 

10 SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH 

11 RESPECT TO INCOME ATTRIBUTABLE TO DO12 MESTIC PRODUCTION ACTIVITIES IN PUERTO 

13 RICO. 

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

15 199(d)(8) is amended— 

16 (1) by striking ‘‘first 8 taxable years’’ and in17 serting ‘‘first 9 taxable years’’, and 

18 (2) by striking ‘‘January 1, 2014’’ and insert19 ing ‘‘January 1, 2015’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2013. 


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1 SEC. 131. EXTENSION OF MODIFICATION OF TAX TREAT2 MENT OF CERTAIN PAYMENTS TO CONTROL3 LING EXEMPT ORGANIZATIONS. 

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

5 512(b)(13)(E) is amended by striking ‘‘December 31, 

6 2013’’ and inserting ‘‘December 31, 2014’’. 

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

8 this section shall apply to payments received or accrued 

9 after December 31, 2013. 

10 SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVI11 DENDS OF REGULATED INVESTMENT COMPA12 NIES. 

13 (a) IN GENERAL.—Paragraphs (1)(C)(v) and 

14 (2)(C)(v) of section 871(k) are each amended by striking 

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

16 2014’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2013. 

20 SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT EN21 TITY TREATMENT UNDER FIRPTA. 

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

23 897(h)(4)(A) is amended by striking ‘‘December 31, 

24 2013’’ and inserting ‘‘December 31, 2014’’. 

25 (b) EFFECTIVE DATE.— 


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

2 this section shall take effect on January 1, 2014. 

3 Notwithstanding the preceding sentence, such 

4 amendment shall not apply with respect to the with5 holding requirement under section 1445 of the Inter6 nal Revenue Code of 1986 for any payment made 

7 before the date of the enactment of this Act. 

8 (2) AMOUNTS WITHHELD ON OR BEFORE DATE

9 OF ENACTMENT.—In the case of a regulated invest10 ment company— 

11 (A) which makes a distribution after De12 cember 31, 2013, and before the date of the en13 actment of this Act, and 

14 (B) which would (but for the second sen15 tence of paragraph (1)) have been required to 

16 withhold with respect to such distribution under 

17 section 1445 of such Code, 

18 such investment company shall not be liable to any 

19 person to whom such distribution was made for any 

20 amount so withheld and paid over to the Secretary 

21 of the Treasury. 

22 SEC. 134. EXTENSION OF SUBPART F EXCEPTION FOR AC23 TIVE FINANCING INCOME. 

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

25 of section 953(e) is amended— 


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1 (1) by striking ‘‘January 1, 2014’’ and insert2 ing ‘‘January 1, 2015’’, and 

3 (2) by striking ‘‘December 31, 2013’’ and in4 serting ‘‘December 31, 2014’’. 

5 (b) SPECIAL RULE FOR INCOME DERIVED IN THE

6 ACTIVE CONDUCT OF BANKING, FINANCING, OR SIMILAR

7 BUSINESSES.—Paragraph (9) of section 954(h) is amend8 ed by striking ‘‘January 1, 2014’’ and inserting ‘‘January 

9 1, 2015’’. 

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

11 this section shall apply to taxable years of foreign corpora12 tions beginning after December 31, 2013, and to taxable 

13 years of United States shareholders with or within which 

14 any such taxable year of such foreign corporation ends. 

15 SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAY16 MENTS BETWEEN RELATED CONTROLLED 

17 FOREIGN CORPORATIONS UNDER FOREIGN 

18 PERSONAL HOLDING COMPANY RULES. 

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

20 954(c)(6) is amended by striking ‘‘January 1, 2014’’ and 

21 inserting ‘‘January 1, 2015’’. 

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

23 this section shall apply to taxable years of foreign corpora24 tions beginning after December 31, 2013, and to taxable 


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1 years of United States shareholders with or within which 

2 such taxable years of foreign corporations end. 

3 SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 

4 PERCENT OF GAIN ON CERTAIN SMALL BUSI5 NESS STOCK. 

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

7 is amended— 

8 (1) by striking ‘‘January 1, 2014’’ and insert9 ing ‘‘January 1, 2015’’, and 

10 (2) by striking ‘‘AND 2013’’ in the heading and 

11 inserting ‘‘2013, AND 2014’’. 

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

13 this section shall apply to stock acquired after December 

14 31, 2013. 

15 SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF 

16 S CORPORATIONS MAKING CHARITABLE CON17 TRIBUTIONS OF PROPERTY. 

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

19 is amended by striking ‘‘December 31, 2013’’ and insert20 ing ‘‘December 31, 2014’’. 

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

22 this section shall apply to contributions made in taxable 

23 years beginning after December 31, 2013. 


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1 SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION 

2 RECOGNITION PERIOD FOR BUILT-IN GAINS 

3 TAX. 

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

5 1374(d)(7) is amended— 

6 (1) by striking ‘‘2012 or 2013’’ and inserting 

7 ‘‘2012, 2013, or 2014’’, and 

8 (2) by striking ‘‘2012 AND 2013’’ in the heading 

9 and inserting ‘‘2012, 2013, AND 2014’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2013. 

13 SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCEN14 TIVES. 

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

16 1391(d)(1)(A) is amended by striking ‘‘December 31, 

17 2013’’ and inserting ‘‘December 31, 2014’’. 

18 (b) TREATMENT OF CERTAIN TERMINATION DATES

19 SPECIFIED IN NOMINATIONS.—In the case of a designa20 tion of an empowerment zone the nomination for which 

21 included a termination date which is contemporaneous 

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

23 1391(d)(1) of the Internal Revenue Code of 1986 (as in 

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

25 of such section shall not apply with respect to such des26 ignation if, after the date of the enactment of this section, 


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1 the entity which made such nomination amends the nomi2 nation to provide for a new termination date in such man3 ner as the Secretary of the Treasury (or the Secretary’s 

4 designee) may provide. 

5 (c) EFFECTIVE DATES.—The amendment made by 

6 this section shall apply to periods after December 31, 

7 2013. 

8 SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT 

9 ON COVER OVER OF RUM EXCISE TAXES TO 

10 PUERTO RICO AND THE VIRGIN ISLANDS. 

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

12 is amended by striking ‘‘January 1, 2014’’ and inserting 

13 ‘‘January 1, 2015’’. 

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

15 this section shall apply to distilled spirits brought into the 

16 United States after December 31, 2013. 

17 SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DE18 VELOPMENT CREDIT. 

19 (a) IN GENERAL.—Subsection (d) of section 119 of 

20 division A of the Tax Relief and Health Care Act of 2006 

21 is amended— 

22 (1) by striking ‘‘January 1, 2014’’ each place 

23 it appears and inserting ‘‘January 1, 2015’’, 

24 (2) by striking ‘‘first 8 taxable years’’ in para25 graph (1) and inserting ‘‘first 9 taxable years’’, and 


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1 (3) by striking ‘‘first 2 taxable years’’ in para2 graph (2) and inserting ‘‘first 3 taxable years’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2013. 

6 Subtitle C—Energy Tax Extenders 

7 SEC. 151. EXTENSION OF CREDIT FOR NONBUSINESS EN8 ERGY PROPERTY. 

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

10 is amended by striking ‘‘December 31, 2013’’ and insert11 ing ‘‘December 31, 2014’’. 

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

13 this section shall apply to property placed in service after 

14 December 31, 2013. 

15 SEC. 152. EXTENSION OF SECOND GENERATION BIOFUEL 

16 PRODUCER CREDIT. 

17 (a) IN GENERAL.—Clause (i) of section 40(b)(6)(J) 

18 is amended by striking ‘‘January 1, 2014’’ and inserting 

19 ‘‘January 1, 2015’’. 

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

21 this section shall apply to qualified second generation 

22 biofuel production after December 31, 2013. 


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1 SEC. 153. EXTENSION OF INCENTIVES FOR BIODIESEL AND 

2 RENEWABLE DIESEL. 

3 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE4 SEL USED AS FUEL.—Subsection (g) of section 40A is 

5 amended by striking ‘‘December 31, 2013’’ and inserting 

6 ‘‘December 31, 2014’’. 

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

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

9 31, 2013. 

10 SEC. 154. 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 ‘‘8-year period’’ each 

15 place it appears and inserting ‘‘9-year period’’. 

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

17 this section shall apply to coal produced after December 

18 31, 2013. 

19 SEC. 155. EXTENSION OF CREDITS WITH RESPECT TO FA20 CILITIES PRODUCING ENERGY FROM CER21 TAIN RENEWABLE RESOURCES. 

22 (a) IN GENERAL.—The following provisions of sec23 tion 45(d) are each amended by striking ‘‘January 1, 

24 2014’’ each place it appears and inserting ‘‘January 1, 

25 2015’’: 

26 (1) Paragraph (1). 


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1 (2) Paragraph (2)(A). 

2 (3) Paragraph (3)(A). 

3 (4) Paragraph (4)(B). 

4 (5) Paragraph (6). 

5 (6) Paragraph (7). 

6 (7) Paragraph (9). 

7 (8) Paragraph (11)(B). 

8 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

9 FACILITIES AS ENERGY PROPERTY.—Clause (ii) of sec10 tion 48(a)(5)(C) is amended by striking ‘‘January 1, 

11 2014’’ and inserting ‘‘January 1, 2015’’. 

12 (c) EFFECTIVE DATES.—The amendments made by 

13 this section shall take effect on January 1, 2014. 

14 SEC. 156. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

15 NEW HOMES. 

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

17 amended by striking ‘‘December 31, 2013’’ and inserting 

18 ‘‘December 31, 2014’’. 

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

20 this section shall apply to homes acquired after December 

21 31, 2013. 


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1 SEC. 157. EXTENSION OF SPECIAL ALLOWANCE FOR SEC2 OND GENERATION BIOFUEL PLANT PROP3 ERTY. 

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

5 168(l)(2) is amended by striking ‘‘January 1, 2014’’ and 

6 inserting ‘‘January 1, 2015’’. 

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

8 this section shall apply to property placed in service after 

9 December 31, 2013. 

10 SEC. 158. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 

11 BUILDINGS DEDUCTION. 

12 (a) IN GENERAL.—Subsection (h) of section 179D is 

13 amended by striking ‘‘December 31, 2013’’ and inserting 

14 ‘‘December 31, 2014’’. 

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

16 this section shall apply to property placed in service after 

17 December 31, 2013. 

18 SEC. 159. EXTENSION OF SPECIAL RULE FOR SALES OR DIS19 POSITIONS TO IMPLEMENT FERC OR STATE 

20 ELECTRIC RESTRUCTURING POLICY FOR 

21 QUALIFIED ELECTRIC UTILITIES. 

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

23 is amended by striking ‘‘January 1, 2014’’ and inserting 

24 ‘‘January 1, 2015’’. 


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

2 this section shall apply to dispositions after December 31, 

3 2013. 

4 SEC. 160. EXTENSION OF EXCISE TAX CREDITS RELATING 

5 TO CERTAIN FUELS. 

6 (a) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

7 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX8 TURES.— 

9 (1) Paragraph (6) of section 6426(c) is amend10 ed by striking ‘‘December 31, 2013’’ and inserting 

11 ‘‘December 31, 2014’’. 

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

13 amended by striking ‘‘December 31, 2013’’ and in14 serting ‘‘December 31, 2014’’. 

15 (b) EXTENSION OF ALTERNATIVE FUELS EXCISE

16 TAX CREDITS.— 

17 (1) IN GENERAL.—Sections 6426(d)(5) and 

18 6426(e)(3) are each amended by striking ‘‘December 

19 31, 2013’’ and inserting ‘‘December 31, 2014’’. 

20 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

21 FUELS.—Subparagraph (C) of section 6427(e)(6) is 

22 amended by striking ‘‘December 31, 2013’’ and in23 serting ‘‘December 31, 2014’’. 

24 (c) EXTENSION OF ALTERNATIVE FUELS EXCISE

25 TAX CREDITS RELATING TO LIQUEFIED HYDROGEN.— 


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1 (1) IN GENERAL.—Sections 6426(d)(5) and 

2 6426(e)(3), as amended by subsection (b), are each 

3 amended by striking ‘‘(September 30, 2014 in the 

4 case of any sale or use involving liquefied hydro5 gen)’’. 

6 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

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

8 amended— 

9 (A) by striking ‘‘except as provided in sub10 paragraph (D), any’’ in subparagraph (C), as 

11 amended by this Act, and inserting ‘‘any’’, 

12 (B) by striking the comma at the end of 

13 subparagraph (C) and inserting ‘‘, and’’, and 

14 (C) by striking subparagraph (D) and re15 designating subparagraph (E) as subparagraph 

16 (D). 

17 (d) EFFECTIVE DATES.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section 

20 shall apply to fuel sold or used after December 31, 

21 2013. 

22 (2) LIQUEFIED HYDROGEN.—The amendments 

23 made by subsection (c) shall apply to fuel sold or 

24 used after September 30, 2014. 


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1 (e) SPECIAL RULE FOR CERTAIN PERIODS DURING

2 2014.—Notwithstanding any other provision of law, in the 

3 case of— 

4 (1) any biodiesel mixture credit properly deter5 mined under section 6426(c) of the Internal Revenue 

6 Code of 1986 for periods after December 31, 2013, 

7 and before the date of the enactment of this Act, 

8 and 

9 (2) any alternative fuel credit properly deter10 mined under section 6426(d) of such Code for such 

11 periods, 

12 such credit shall be allowed, and any refund or payment 

13 attributable to such credit (including any payment under 

14 section 6427(e) of such Code) shall be made, only in such 

15 manner as the Secretary of the Treasury (or the Sec16 retary’s delegate) shall provide. Such Secretary shall issue 

17 guidance within 30 days after the date of the enactment 

18 of this Act providing for a one-time submission of claims 

19 covering periods described in the preceding sentence. Such 

20 guidance shall provide for a 180-day period for the sub21 mission of such claims (in such manner as prescribed by 

22 such Secretary) to begin not later than 30 days after such 

23 guidance is issued. Such claims shall be paid by such Sec24 retary not later than 60 days after receipt. If such Sec25 retary has not paid pursuant to a claim filed under this 


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1 subsection within 60 days after the date of the filing of 

2 such claim, the claim shall be paid with interest from such 

3 date determined by using the overpayment rate and meth4 od under section 6621 of such Code. 

5 SEC. 161. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

6 VEHICLE REFUELING PROPERTY. 

7 (a) IN GENERAL.—Subsection (g) of section 30C is 

8 amended by striking ‘‘placed in service’’ and all that fol9 lows and inserting ‘‘placed in service after December 31, 

10 2014.’’. 

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

12 this section shall apply to property placed in service after 

13 December 31, 2013. 

14 Subtitle D—Extenders Relating to 

15 Multiemployer Defined Benefit 

16 Pension Plans 

17 SEC. 171. EXTENSION OF AUTOMATIC EXTENSION OF AMOR18 TIZATION PERIODS. 

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

20 431(d)(1) is amended by striking ‘‘December 31, 2014’’ 

21 and inserting ‘‘December 31, 2015’’. 

22 (b) AMENDMENT TO EMPLOYEE RETIREMENT IN23 COME SECURITY ACT OF 1974.—Subparagraph (C) of sec24 tion 304(d)(1) of the Employee Retirement Income Secu25 rity Act of 1974 (29 U.S.C. 1084(d)(1)(C)) is amended 


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1 by striking ‘‘December 31, 2014’’ and inserting ‘‘Decem2 ber 31, 2015’’. 

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

4 this section shall apply to applications submitted under 

5 section 431(d)(1)(A) of the Internal Revenue Code of 

6 1986 and section 304(d)(1)(C) of the Employee Retire7 ment Income Security Act of 1974 after December 31, 

8 2014. 

9 SEC. 172. EXTENSION OF SHORTFALL FUNDING METHOD 

10 AND ENDANGERED AND CRITICAL RULES. 

11 (a) IN GENERAL.—Paragraphs (1) and (2) of section 

12 221(c) of the Pension Protection Act of 2006 are each 

13 amended by striking ‘‘December 31, 2014’’ and inserting 

14 ‘‘December 31, 2015’’. 

15 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

16 section 221(c) of the Pension Protection Act of 2006 is 

17 amended by striking ‘‘January 1, 2015’’ and inserting 

18 ‘‘January 1, 2016’’. 

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

20 this section shall apply to plan years beginning after De21 cember 31, 2014. 


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1 TITLE II—TECHNICAL 

2 CORRECTIONS 

3 SEC. 201. SHORT TITLE. 

4 This title may be cited as the ‘‘Tax Technical Correc5 tions Act of 2014’’. 

6 SEC. 202. AMENDMENTS RELATING TO AMERICAN TAX7 PAYER RELIEF ACT OF 2012. 

8 (a) AMENDMENT RELATING TO SECTION 101(b).— 

9 Subclause (I) of section 642(b)(2)(C)(i) is amended by 

10 striking ‘‘section 151(d)(3)(C)(iii)’’ and inserting ‘‘section 

11 68(b)(1)(C)’’. 

12 (b) AMENDMENT RELATING TO SECTION 102.— 

13 Clause (ii) of section 911(f)(2)(B) is amended by striking 

14 ‘‘described in section 1(h)(1)(B) shall be treated as a ref15 erence to such excess as determined’’ and inserting ‘‘de16 scribed in section 1(h)(1)(B), and the reference in section 

17 55(b)(3)(C)(ii) to the excess described in section 

18 1(h)(1)(C)(ii), shall each be treated as a reference to each 

19 such excess as determined’’. 

20 (c) AMENDMENTS RELATING TO SECTION 104.— 

21 (1) Clause (ii) of section 55(d)(4)(B) is amend22 ed by inserting ‘‘subparagraphs (A), (B), and (D) 

23 of’’ before ‘‘paragraph (1)’’. 


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1 (2) Subparagraph (C) of section 55(d)(4) is 

2 amended by striking ‘‘increase’’ and inserting ‘‘in3 creased amount’’. 

4 (d) AMENDMENTS RELATING TO SECTION 310.— 

5 Clause (iii) of section 6431(f)(3)(A) is amended— 

6 (1) by striking ‘‘2011’’ and inserting ‘‘years 

7 after 2010’’, and 

8 (2) by striking ‘‘of such allocation’’ and insert9 ing ‘‘of any such allocation’’. 

10 (e) AMENDMENT RELATING TO SECTION 331.— 

11 Clause (iii) of section 168(k)(4)(J) is amended by striking 

12 ‘‘any taxable year’’ and inserting ‘‘its first taxable year’’. 

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

14 this section shall take effect as if included in the provision 

15 of the American Taxpayer Relief Act of 2012 to which 

16 they relate. 

17 SEC. 203. AMENDMENT RELATING TO MIDDLE CLASS TAX 

18 RELIEF AND JOB CREATION ACT OF 2012. 

19 (a) AMENDMENT RELATING TO SECTION 7001.— 

20 Paragraph (1) of section 7001 of the Middle Class Tax 

21 Relief and Job Creation Act of 2012 is amended by strik22 ing ‘‘201(b)’’ and inserting ‘‘202(b)’’. 

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

24 subsection (a) shall take effect as if included in section 


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1 7001 of the Middle Class Tax Relief and Job Creation 

2 Act of 2012. 

3 SEC. 204. AMENDMENT RELATING TO FAA MODERNIZATION 

4 AND REFORM ACT OF 2012. 

5 (a) AMENDMENT RELATING TO SECTION 1107.— 

6 Section 4281 is amended to read as follows: 

7 ‘‘SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES. 

8 ‘‘(a) IN GENERAL.—The taxes imposed by sections 

9 4261 and 4271 shall not apply to transportation by an 

10 aircraft having a maximum certificated takeoff weight of 

11 6,000 pounds or less, except when such aircraft is oper12 ated on an established line or when such aircraft is a jet 

13 aircraft. 

14 ‘‘(b) MAXIMUM CERTIFICATED TAKEOFF WEIGHT.— 

15 For purposes of this section, the term ‘maximum certifi16 cated takeoff weight’ means the maximum such weight 

17 contained in the type certificate or airworthiness certifi18 cate. 

19 ‘‘(c) SIGHTSEEING.—For purposes of this section, an 

20 aircraft shall not be considered as operated on an estab21 lished line at any time during which such aircraft is being 

22 operated on a flight the sole purpose of which is sight23 seeing. 


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1 ‘‘(d) JET AIRCRAFT.—For purposes of this section, 

2 the term ‘jet aircraft’ shall not include any aircraft which 

3 is a rotorcraft or propeller aircraft.’’. 

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

5 subsection (a) shall take effect as if included in section 

6 1107 of the FAA Modernization and Reform Act of 2012. 

7 SEC. 205. AMENDMENTS RELATING TO REGULATED INVEST8 MENT COMPANY MODERNIZATION ACT OF 

9 2010. 

10 (a) AMENDMENTS RELATING TO SECTION 101.— 

11 (1) Subsection (c) of section 101 of the Regu12 lated Investment Company Modernization Act of 

13 2010 is amended— 

14 (A) by striking ‘‘paragraph (2)’’ in para15 graph (1) and inserting ‘‘paragraphs (2) and 

16 (3)’’, and 

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

18 paragraph: 

19 ‘‘(3) EXCISE TAX.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 subparagraph (B), for purposes of section 4982 

22 of the Internal Revenue Code of 1986, para23 graphs (1) and (2) shall apply by substituting 

24 ‘the 1-year periods taken into account under 

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1 spect to calendar years beginning after Decem2 ber 31, 2010’ for ‘taxable years beginning after 

3 the date of the enactment of this Act’. 

4 ‘‘(B) ELECTION.—A regulated investment 

5 company may elect to apply subparagraph (A) 

6 by substituting ‘2011’ for ‘2010’. Such election 

7 shall be made at such time and in such form 

8 and manner as the Secretary of the Treasury 

9 (or the Secretary’s delegate) shall prescribe.’’. 

10 (2) The first sentence of paragraph (2) of sec11 tion 852(c) is amended— 

12 (A) by striking ‘‘and without regard to’’ 

13 and inserting ‘‘, without regard to’’, and 

14 (B) by inserting ‘‘, and without regard to 

15 any capital loss arising on the first day of the 

16 taxable year by reason of clauses (ii) and (iii) 

17 of section 1212(a)(3)(A)’’ before the period at 

18 the end. 

19 (b) AMENDMENT RELATING TO SECTION 304.— 

20 Paragraph (1) of section 855(a) is amended by inserting 

21 ‘‘on or’’ before ‘‘before’’. 

22 (c) AMENDMENTS RELATING TO SECTION 308.— 

23 (1) Paragraph (8) of section 852(b) is amended 

24 by redesignating subparagraph (E) as subparagraph 


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1 (G) and by striking subparagraphs (C) and (D) and 

2 inserting the following new subparagraphs: 

3 ‘‘(C) POST-OCTOBER CAPITAL LOSS.—For 

4 purposes of this paragraph, the term ‘post-Oc5 tober capital loss’ means— 

6 ‘‘(i) any net capital loss attributable 

7 to the portion of the taxable year after Oc8 tober 31, or 

9 ‘‘(ii) if there is no such loss— 

10 ‘‘(I) any net long-term capital 

11 loss attributable to such portion of the 

12 taxable year, or 

13 ‘‘(II) any net short-term capital 

14 loss attributable to such portion of the 

15 taxable year. 

16 ‘‘(D) LATE-YEAR ORDINARY LOSS.—For 

17 purposes of this paragraph, the term ‘late-year 

18 ordinary loss’ means the sum of any post-Octo19 ber specified loss and any post-December ordi20 nary loss. 

21 ‘‘(E) POST-OCTOBER SPECIFIED LOSS.— 

22 For purposes of this paragraph, the term ‘post23 October specified loss’ means the excess (if any) 

24 of— 


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1 ‘‘(i) the specified losses (as defined in 

2 section 4982(e)(5)(B)(ii)) attributable to 

3 the portion of the taxable year after Octo4 ber 31, over 

5 ‘‘(ii) the specified gains (as defined in 

6 section 4982(e)(5)(B)(i)) attributable to 

7 such portion of the taxable year. 

8 ‘‘(F) POST-DECEMBER ORDINARY LOSS.— 

9 For purposes of this paragraph, the term ‘post10 December ordinary loss’ means the excess (if 

11 any) of— 

12 ‘‘(i) the ordinary losses not described 

13 in subparagraph (E)(i) and attributable to 

14 the portion of the taxable year after De15 cember 31, over 

16 ‘‘(ii) the ordinary income not de17 scribed in subparagraph (E)(ii) and attrib18 utable to such portion of the taxable 

19 year.’’. 

20 (2) Subparagraph (G) of section 852(b)(8), as 

21 so redesignated, is amended by striking ‘‘, (D)(i)(I), 

22 and (D)(ii)(I)’’ and inserting ‘‘and (E)’’. 

23 (3) The first sentence of paragraph (2) of sec24 tion 852(c), as amended by subsection (a), is amend25 ed— 


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1 (A) by striking ‘‘, and without regard to’’ 

2 and inserting ‘‘, without regard to’’, and 

3 (B) by inserting ‘‘, and with such other ad4 justments as the Secretary may prescribe’’ be5 fore the period at the end. 

6 (d) AMENDMENTS RELATING TO SECTION 402.— 

7 (1) Subparagraph (B) of section 4982(e)(6) is 

8 amended by inserting before the period at the end 

9 the following: ‘‘or which determines income by ref10 erence to the value of an item on the last day of the 

11 taxable year’’. 

12 (2) Subparagraph (A) of section 4982(e)(7) is 

13 amended by striking ‘‘such company’’ and all that 

14 follows through ‘‘any net ordinary loss’’ and insert15 ing ‘‘such company may elect to determine its ordi16 nary income and net ordinary loss (as defined in 

17 paragraph (2)(C)(ii)) for the calendar year without 

18 regard to any portion of any net ordinary loss’’. 

19 (e) CLERICAL AMENDMENT RELATING TO SECTION

20 201.—Subparagraph (A) of section 851(d)(2) is amended 

21 by inserting ‘‘of this paragraph’’ after ‘‘subparagraph 

22 (B)(i)’’. 

23 (f) EFFECTIVE DATE.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section 


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1 shall take effect as if included in the provision of the 

2 Regulated Investment Company Modernization Act 

3 of 2010 to which they relate. 

4 (2) SAVINGS PROVISION.—In the case of an 

5 election by a regulated investment company under 

6 section 852(b)(8) of the Internal Revenue Code of 

7 1986 with respect to any taxable year beginning be8 fore the date of the enactment of this Act, such com9 pany may treat the amendments made by para10 graphs (1) and (2) of subsection (c) as not applying 

11 with respect to any such election. 

12 SEC. 206. AMENDMENTS RELATING TO TAX RELIEF, UNEM13 PLOYMENT INSURANCE REAUTHORIZATION, 

14 AND JOB CREATION ACT OF 2010. 

15 (a) AMENDMENT RELATING TO SECTION 103.— 

16 Clause (ii) of section 32(b)(3)(B) is amended by striking 

17 ‘‘in 2010’’ and inserting ‘‘after 2009’’. 

18 (b) CLERICAL AMENDMENTS RELATING TO SECTION

19 302.— 

20 (1) Paragraph (1) of section 2801(a) is amend21 ed by striking ‘‘(or, if greater, the highest rate of 

22 tax specified in the table applicable under section 

23 2502(a) as in effect on the date)’’. 

24 (2) Subsection (f) of section 302 of the Tax Re25 lief, Unemployment Insurance Reauthorization, and 


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1 Job Creation Act of 2010 is amended by striking 

2 ‘‘subsection’’ and inserting ‘‘section’’. 

3 (c) AMENDMENTS RELATING TO SECTION 753.— 

4 Subparagraph (A) of section 1397B(b)(1) is amended by 

5 striking ‘‘and’’ at the end of clause (ii), by striking the 

6 period at the end of clause (iii) and inserting ‘‘, and’’, and 

7 by adding at the end the following new clause: 

8 ‘‘(iv) the day after the date set forth 

9 in section 1391(d)(1)(A)(i) were sub10 stituted for ‘January 1, 2010’ each place it 

11 appears.’’. 

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

13 this section shall take effect as if included in the provisions 

14 of the Tax Relief, Unemployment Insurance Reauthoriza15 tion, and Job Creation Act of 2010 to which they relate. 

16 SEC. 207. AMENDMENTS RELATING TO CREATING SMALL 

17 BUSINESS JOBS ACT OF 2010. 

18 (a) AMENDMENTS RELATING TO SECTION 2102.— 

19 (1) Subsection (h) of section 2102 of the Cre20 ating Small Business Jobs Act of 2010 is amended 

21 by inserting ‘‘, and payee statements required to be 

22 furnished,’’ after ‘‘information returns required to 

23 be filed’’. 

24 (2) Paragraphs (1) and (2) of subsection (b), 

25 and subsection (c)(1)(C), of section 6722 are each 


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1 amended by striking ‘‘the required filing date’’ and 

2 inserting ‘‘the date prescribed for furnishing such 

3 statement’’. 

4 (3) Subparagraph (B) of section 6722(c)(2) is 

5 amended by striking ‘‘filed’’ and inserting ‘‘fur6 nished’’. 

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

8 this section shall take effect as if included in the provision 

9 of the Creating Small Business Jobs Act of 2010 to which 

10 they relate. 

11 SEC. 208. CLERICAL AMENDMENT RELATING TO HIRING IN12 CENTIVES TO RESTORE EMPLOYMENT ACT. 

13 (a) AMENDMENT RELATING TO SECTION 512.— 

14 Paragraph (1) of section 512(a) of the Hiring Incentives 

15 to Restore Employment Act is amended by striking ‘‘after 

16 paragraph (6)’’ and inserting ‘‘after paragraph (5)’’. 

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

18 this section shall take effect as if included in the provision 

19 of the Hiring Incentives to Restore Employment Act to 

20 which it relates. 

21 SEC. 209. AMENDMENTS RELATING TO AMERICAN RECOV22 ERY AND REINVESTMENT TAX ACT OF 2009. 

23 (a) AMENDMENT RELATING TO SECTION 1003.— 

24 Paragraph (4) of section 24(d) is amended to read as fol25 lows: 


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1 ‘‘(4) SPECIAL RULE FOR CERTAIN YEARS.—In 

2 the case of any taxable year beginning after 2008 

3 and before 2018, paragraph (1)(B)(i) shall be ap4 plied by substituting ‘$3,000’ for ‘$10,000’.’’. 

5 (b) AMENDMENT RELATING TO SECTION 1004.— 

6 Paragraph (3) of section 25A(i) is amended by striking 

7 ‘‘Subsection (f)(1)(A) shall be applied’’ and inserting ‘‘For 

8 purposes of determining the Hope Scholarship Credit, sub9 section (f)(1)(A) shall be applied’’. 

10 (c) AMENDMENTS RELATING TO SECTION 1008.— 

11 (1) Paragraph (6) of section 164(b) is amended 

12 by striking subparagraph (E) and by redesignating 

13 subparagraphs (F) and (G) as subparagraphs (E) 

14 and (F), respectively. 

15 (2) Subparagraphs (E) and (F) of section 

16 164(b)(6), as so redesignated, are each amended by 

17 striking ‘‘This paragraph’’ and inserting ‘‘Subsection 

18 (a)(6)’’. 

19 (d) AMENDMENT RELATING TO SECTION 1104.— 

20 Subparagraph (A) of section 48(d)(3) is amended by in21 serting ‘‘or alternative minimum taxable income’’ after 

22 ‘‘includible in the gross income’’. 

23 (e) AMENDMENTS RELATING TO SECTION 1141.— 

24 (1) Subsection (f) of section 30D is amended— 


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1 (A) by inserting ‘‘(determined without re2 gard to subsection (c))’’ before the period at the 

3 end of paragraph (1), and 

4 (B) by inserting ‘‘(determined without re5 gard to subsection (c))’’ before the period at the 

6 end of paragraph (2). 

7 (2) Paragraph (3) of section 30D(f) is amended 

8 by adding at the end the following: ‘‘For purposes 

9 of subsection (c), property to which this paragraph 

10 applies shall be treated as of a character subject to 

11 an allowance for depreciation.’’. 

12 (f) AMENDMENTS RELATING TO SECTION 1142.— 

13 (1) Subsection (b) of section 38 is amended by 

14 striking ‘‘plus’’ at the end of paragraph (35), by re15 designating paragraph (36) as paragraph (37), and 

16 by inserting after paragraph (35) the following new 

17 paragraph: 

18 ‘‘(36) the portion of the qualified plug-in elec19 tric vehicle credit to which section 30(c)(1) applies, 

20 plus’’. 

21 (2)(A) Subsection (e) of section 30 is amend22 ed— 

23 (i) by inserting ‘‘(determined without re24 gard to subsection (c))’’ before the period at the 

25 end of paragraph (1), and 


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1 (ii) by inserting ‘‘(determined without re2 gard to subsection (c))’’ before the period at the 

3 end of paragraph (2). 

4 (B) Paragraph (3) of section 30(e) is amended 

5 by adding at the end the following: ‘‘For purposes 

6 of subsection (c), property to which this paragraph 

7 applies shall be treated as of a character subject to 

8 an allowance for depreciation.’’. 

9 (g) AMENDMENT RELATING TO SECTION 1302.— 

10 Paragraph (3) of section 48C(b) is amended by inserting 

11 ‘‘as the qualified investment’’ after ‘‘The amount which 

12 is treated’’. 

13 (h) AMENDMENTS RELATED TO SECTION 1541.— 

14 (1) Paragraph (2) of section 853A(a) is amend15 ed by inserting ‘‘(determined after the application of 

16 this section)’’ before the comma at the end. 

17 (2) Subsection (a) of section 853A is amend18 ed— 

19 (A) by striking ‘‘with respect to credits’’ 

20 and inserting ‘‘with respect to some or all of 

21 the credits’’, and 

22 (B) by inserting ‘‘(determined without re23 gard to this section and sections 54(c), 

24 54A(c)(1), 54AA(c)(1), and 1397E(c))’’ after 

25 ‘‘credits allowable’’. 


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1 (3) Subsection (b) of section 853A is amended 

2 to read as follows: 

3 ‘‘(b) EFFECT OF ELECTION.—If the election provided 

4 in subsection (a) is in effect with respect to any credits 

5 for any taxable year— 

6 ‘‘(1) the regulated investment company— 

7 ‘‘(A) shall not be allowed such credits, 

8 ‘‘(B) shall include in gross income (as in9 terest) for such taxable year the amount which 

10 would have been so included with respect to 

11 such credits had the application of this section 

12 not been elected, 

13 ‘‘(C) shall include in earnings and profits 

14 the amount so included in gross income, and 

15 ‘‘(D) shall be treated as making one or 

16 more distributions of money with respect to its 

17 stock equal to the amount of such credits on 

18 the date or dates (on or after the applicable 

19 date for any such credit) during such taxable 

20 year (or following the close of the taxable year 

21 pursuant to section 855) selected by the 

22 company, and 

23 ‘‘(2) each shareholder of such investment com24 pany shall— 


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1 ‘‘(A) be treated as receiving such share2 holder’s proportionate share of any distribution 

3 of money which is treated as made by such in4 vestment company under paragraph (1)(D), and 

5 ‘‘(B) be allowed credits against the tax im6 posed by this chapter equal to the amount of 

7 such distribution, subject to the provisions of 

8 this title applicable to the credit involved.’’. 

9 (4) Subsection (c) of section 853A is amended 

10 to read as follows: 

11 ‘‘(c) NOTICE TO SHAREHOLDERS.—The amount 

12 treated as a distribution of money received by a share13 holder under subsection (b)(2)(A) (and as credits allowed 

14 to such shareholder under subsection (b)(2)(B)) shall not 

15 exceed the amount so reported by the regulated invest16 ment company in a written statement furnished to such 

17 shareholder.’’. 

18 (5) Clause (ii) of section 853A(e)(1)(A) is 

19 amended by inserting ‘‘other than a qualified bond 

20 described in section 54AA(g)’’ after ‘‘as defined in 

21 section 54AA(d))’’. 

22 (i) AMENDMENTS RELATING TO SECTION 2202.— 

23 (1) Subparagraph (A) of section 2202(b)(1) of 

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1 ment Act of 2009 is amended by inserting ‘‘political 

2 subdivision of a State,’’ after ‘‘any State,’’. 

3 (2) Section 2202 of division B of the American 

4 Recovery and Reinvestment Act of 2009 is amended 

5 by adding at the end the following new subsection: 

6 ‘‘(e) TREATMENT OF POSSESSIONS.— 

7 ‘‘(1) PAYMENTS TO MIRROR CODE POSSES8 SIONS.—The Secretary of the Treasury shall pay to 

9 each possession of the United States with a mirror 

10 code tax system amounts equal to the loss to that 

11 possession by reason of credits allowed under sub12 section (a) with respect to taxable years beginning in 

13 2009. Such amounts shall be determined by the Sec14 retary of the Treasury based on information pro15 vided by the government of the respective possession. 

16 ‘‘(2) COORDINATION WITH CREDIT ALLOWED

17 AGAINST UNITED STATES INCOME TAXES.—No cred18 it shall be allowed against United States income 

19 taxes for any taxable year under this section to any 

20 person to whom a credit is allowed against taxes im21 posed by the possession by reason of the credit al22 lowed under subsection (a) for such taxable year. 

23 ‘‘(3) DEFINITIONS AND SPECIAL RULES.— 

24 ‘‘(A) POSSESSION OF THE UNITED

25 STATES.—For purposes of this subsection, the 


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1 term ‘possession of the United States’ includes 

2 the Commonwealth of the Northern Mariana Is3 lands. 

4 ‘‘(B) MIRROR CODE TAX SYSTEM.—For 

5 purposes of this subsection, the term ‘mirror 

6 code tax system’ means, with respect to any 

7 possession of the United States, the income tax 

8 system of such possession if the income tax li9 ability of the residents of such possession under 

10 such system is determined by reference to the 

11 income tax laws of the United States as if such 

12 possession were the United States. 

13 ‘‘(C) TREATMENT OF PAYMENTS.—For 

14 purposes of section 1324(b)(2) of title 31, 

15 United States Code, the payments under this 

16 subsection shall be treated in the same manner 

17 as a refund due from the credit allowed under 

18 section 36A of the Internal Revenue Code of 

19 1986 (as added by this Act).’’. 

20 (j) CLERICAL AMENDMENTS.— 

21 (1) AMENDMENT RELATING TO SECTION

22 1131.—Paragraph (2) of section 45Q(d) is amended 

23 by striking ‘‘Administrator of the Environmental 

24 Protection Agency’’ and all that follows through 

25 ‘‘shall establish’’ and inserting ‘‘Administrator of the 


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1 Environmental Protection Agency, the Secretary of 

2 Energy, and the Secretary of the Interior, shall es3 tablish’’. 

4 (2) AMENDMENT RELATING TO SECTION

5 1141.—Paragraph (37) of section 1016(a) is amend6 ed by striking ‘‘section 30D(e)(4)’’ and inserting 

7 ‘‘section 30D(f)(1)’’. 

8 (3) AMENDMENT RELATING TO SECTION

9 3001.—Subparagraph (A) of section 3001(a)(14) of 

10 the American Recovery and Reinvestment Act of 

11 2009 is amended by striking ‘‘is amended by redes12 ignating paragraph (9) as paragraph (10)’’ and in13 serting ‘‘, as amended by this Act, is amended by re14 designating paragraphs (9) and (10) as paragraphs 

15 (10) and (11), respectively,’’. 

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

17 this section shall take effect as if included in the provisions 

18 of the American Recovery and Reinvestment Tax Act of 

19 2009 to which they relate. 

20 SEC. 210. AMENDMENTS RELATING TO ENERGY IMPROVE21 MENT AND EXTENSION ACT OF 2008. 

22 (a) AMENDMENT RELATING TO SECTION 108.—Sub23 paragraph (E) of section 45K(g)(2) is amended to read 

24 as follows: 


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1 ‘‘(E) COORDINATION WITH SECTION 45.— 

2 No credit shall be allowed with respect to any 

3 coke or coke gas which is produced using steel 

4 industry fuel (as defined in section 45(c)(7)) as 

5 feedstock if a credit is allowed to any taxpayer 

6 under section 45 with respect to the production 

7 of such steel industry fuel.’’. 

8 (b) AMENDMENT RELATING TO SECTION 113.— 

9 Paragraph (1) of section 113(b) of the Energy Improve10 ment and Extension Act of 2008 is amended by adding 

11 at the end the following new subparagraph: 

12 ‘‘(F) TRUST FUND.—The term ‘Trust 

13 Fund’ means the Black Lung Disability Trust 

14 Fund established under section 9501 of the In15 ternal Revenue Code of 1986.’’. 

16 (c) AMENDMENTS RELATING TO SECTION 306.— 

17 (1) Clause (ii) of section 168(i)(18)(A) is 

18 amended by striking ‘‘10 years’’ and inserting ‘‘16 

19 years’’. 

20 (2) Clause (ii) of section 168(i)(19)(A) is 

21 amended by striking ‘‘10 years’’ and inserting ‘‘16 

22 years’’. 

23 (d) AMENDMENT RELATING TO SECTION 308.— 

24 Clause (i) of section 168(m)(2)(B) is amended by striking 


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1 ‘‘section 168(k)’’ and inserting ‘‘subsection (k) (deter2 mined without regard to paragraph (4) thereof)’’. 

3 (e) AMENDMENT RELATING TO SECTION 402.—Sub4 paragraph (A) of section 907(f)(4) is amended by striking 

5 ‘‘this subsection shall be applied’’ and all that follows 

6 through the period at the end and inserting the following: 

7 ‘‘this subsection, as in effect on the day before the date 

8 of the enactment of the Energy Improvement and Exten9 sion Act of 2008, shall apply to unused oil and gas extrac10 tion taxes carried from such unused credit year to a tax11 able year beginning after December 31, 2008.’’. 

12 (f) AMENDMENTS RELATING TO SECTION 403.— 

13 (1) Subsection (c) of section 1012 is amend14 ed— 

15 (A) by striking ‘‘FUNDS’’ in the heading 

16 for paragraph (2) and inserting ‘‘REGULATED

17 INVESTMENT COMPANIES’’, 

18 (B) by striking ‘‘FUND’’ in the heading for 

19 paragraph (2)(B), and 

20 (C) by striking ‘‘fund’’ each place it ap21 pears in paragraph (2) and inserting ‘‘regulated 

22 investment company’’. 

23 (2) Paragraph (1) of section 1012(d) is amend24 ed— 


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1 (A) by striking ‘‘December 31, 2010’’ and 

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

3 (B) by striking ‘‘an open-end fund’’ and 

4 inserting ‘‘a regulated investment company’’. 

5 (3) Paragraph (3) of section 1012(d) is amend6 ed to read as follows: 

7 ‘‘(3) SEPARATE ACCOUNTS; ELECTION FOR

8 TREATMENT AS SINGLE ACCOUNT.— 

9 ‘‘(A) IN GENERAL.—Rules similar to the 

10 rules of subsection (c)(2) shall apply for pur11 poses of this subsection. 

12 ‘‘(B) AVERAGE BASIS METHOD.—Notwith13 standing paragraph (1), in the case of an elec14 tion under rules similar to the rules of sub15 section (c)(2)(B) with respect to stock held in 

16 connection with a dividend reinvestment plan, 

17 the average basis method is permissible with re18 spect to all such stock without regard to the 

19 date of the acquisition of such stock.’’. 

20 (4) Subsection (g) of section 6045 is amended 

21 by adding at the end the following new paragraph: 

22 ‘‘(6) SPECIAL RULE FOR CERTAIN STOCK HELD

23 IN CONNECTION WITH DIVIDEND REINVESTMENT

24 PLAN.—For purposes of this subsection, stock ac25 quired before January 1, 2012, in connection with a 


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1 dividend reinvestment plan shall be treated as stock 

2 described in clause (ii) of paragraph (3)(C) (unless 

3 the broker with respect to such stock elects not to 

4 have this paragraph apply with respect to such 

5 stock).’’. 

6 (g) CLERICAL AMENDMENTS.— 

7 (1) AMENDMENT RELATING TO SECTION 108.— 

8 Paragraph (2) of section 45(b) is amended by strik9 ing ‘‘$3 amount’’ and inserting ‘‘$2 amount’’. 

10 (2) AMENDMENT RELATING TO SECTION 306.— 

11 (A) Paragraph (5) of section 168(b) is 

12 amended by striking ‘‘(2)(C)’’ and inserting 

13 ‘‘(2)(D)’’. 

14 (B) The last sentence of section 

15 168(k)(4)(C)(i) is amended by striking 

16 ‘‘(b)(2)(C)’’ and inserting ‘‘(b)(2)(D)’’. 

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

18 this section shall take effect as if included in the provisions 

19 of the Energy Improvement and Extension Act of 2008 

20 to which they relate. 

21 SEC. 211. AMENDMENTS RELATING TO TAX EXTENDERS 

22 AND ALTERNATIVE MINIMUM TAX RELIEF 

23 ACT OF 2008. 

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1 native Minimum Tax Relief Act of 2008 is amended to 

2 read as follows: 

3 ‘‘(b) EFFECTIVE DATE.— 

4 ‘‘(1) IN GENERAL.—The amendment made by 

5 subsection (a) shall take effect on January 1, 2008. 

6 Notwithstanding the preceding sentence, such 

7 amendment shall not apply with respect to the with8 holding requirement under section 1445 of the Inter9 nal Revenue Code of 1986 for any payment made 

10 before October 4, 2008. 

11 ‘‘(2) AMOUNTS WITHHELD ON OR BEFORE

12 DATE OF ENACTMENT.—In the case of a regulated 

13 investment company— 

14 ‘‘(A) which makes a distribution after De15 cember 31, 2007, and before October 4, 2008, 

16 and 

17 ‘‘(B) which would (but for the second sen18 tence of paragraph (1)) have been required to 

19 withhold with respect to such distribution under 

20 section 1445 of such Code, 

21 such investment company shall not be liable to any 

22 person to whom such distribution was made for any 

23 amount so withheld and paid over to the Secretary 

24 of the Treasury.’’. 


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1 (b) AMENDMENTS RELATING TO SECTION 305.— 

2 Paragraphs (7)(B) and (8)(D) of section 168(e) are each 

3 amended by inserting ‘‘which is not qualified leasehold im4 provement property’’ after ‘‘Property described in this 

5 paragraph’’. 

6 (c) CLERICAL AMENDMENTS.— 

7 (1) AMENDMENTS RELATING TO SECTION

8 706.— 

9 (A) Paragraph (2) of section 1033(h) is 

10 amended by inserting ‘‘is’’ before 

11 ‘‘compulsorily’’. 

12 (B) Subclause (II) of section 

13 172(b)(1)(F)(ii) is amended by striking ‘‘sub14 section (h)(3)(C)(i)’’ and inserting ‘‘section 

15 165(h)(3)(C)(i)’’. 

16 (C) The heading for paragraph (1) of sec17 tion 165(h) is amended by striking ‘‘$100’’ and 

18 inserting ‘‘DOLLAR’’. 

19 (2) AMENDMENT RELATING TO SECTION 709.— 

20 Subsection (k) of section 143 is amended by redesig21 nating the second paragraph (12) (relating to special 

22 rules for residences destroyed in Federally declared 

23 disasters) as paragraph (13). 

24 (3) AMENDMENT RELATING TO SECTION 712.— 

25 Section 712 of the Tax Extenders and Alternative 


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1 Minimum Tax Relief Act of 2008 is amended by 

2 striking ‘‘section 702(c)(1)(A)’’ and inserting ‘‘sec3 tion 702(b)(1)(A)’’. 

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

5 this section shall take effect as if included in the provisions 

6 of the Tax Extenders and Alternative Minimum Tax Relief 

7 Act of 2008 to which they relate. 

8 SEC. 212. CLERICAL AMENDMENTS RELATING TO HOUSING 

9 ASSISTANCE TAX ACT OF 2008. 

10 (a) AMENDMENT RELATING TO SECTION 3002.— 

11 Paragraph (1) of section 42(b) is amended by striking 

12 ‘‘For purposes of this section, the term’’ and inserting the 

13 following: ‘‘For purposes of this section— 

14 ‘‘(A) IN GENERAL.—The term’’. 

15 (b) AMENDMENT RELATING TO SECTION 3081.— 

16 Clause (iv) of section 168(k)(4)(E) is amended by striking 

17 ‘‘adjusted minimum tax’’ and inserting ‘‘adjusted net min18 imum tax’’. 

19 (c) AMENDMENT RELATING TO SECTION 3092.— 

20 Subsection (b) of section 121 is amended by redesignating 

21 the second paragraph (4) (relating to exclusion of gain al22 located to nonqualified use) as paragraph (5). 

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

24 this section shall take effect as if included in the provisions 


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1 of the Housing Assistance Tax Act of 2008 to which they 

2 relate. 

3 SEC. 213. AMENDMENTS AND PROVISION RELATING TO HE4 ROES EARNINGS ASSISTANCE AND RELIEF 

5 TAX ACT OF 2008. 

6 (a) AMENDMENT RELATING TO SECTION 106.— 

7 Paragraph (2) of section 106(c) of the Heroes Earnings 

8 Assistance and Relief Tax Act of 2008 is amended by 

9 striking ‘‘substituting for’’ and inserting ‘‘substituting 

10 ‘June 17, 2008’ for’’. 

11 (b) AMENDMENT RELATING TO SECTION 114.— 

12 Paragraph (1) of section 125(h) is amended by inserting 

13 ‘‘(and shall not fail to be treated as an accident or health 

14 plan)’’ before ‘‘merely’’. 

15 (c) CLERICAL AMENDMENTS.— 

16 (1) AMENDMENT RELATING TO SECTION 110.— 

17 Subparagraph (B) of section 121(d)(12) is amended 

18 by inserting ‘‘of paragraph (9)’’ after ‘‘and (D)’’. 

19 (2) AMENDMENT RELATING TO SECTION 301.— 

20 Paragraph (2) of section 877(e) is amended by strik21 ing ‘‘subparagraph (A) or (B) of’’. 

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

23 this section shall take effect as if included in the provisions 

24 of the Heroes Earnings Assistance and Relief Tax Act of 

25 2008 to which they relate. 


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1 SEC. 214. AMENDMENTS RELATING TO ECONOMIC STIM2 ULUS ACT OF 2008. 

3 (a) AMENDMENTS RELATING TO SECTION 101.— 

4 Paragraph (2) of section 6213(g) is amended— 

5 (1) by striking ‘‘32, or 6428’’ in subparagraph 

6 (L) and inserting ‘‘or 32’’, and 

7 (2) by striking ‘‘and’’ at the end of subpara8 graph (O), by striking the period at the end of sub9 paragraph (P) and inserting ‘‘, and’’, and by insert10 ing after subparagraph (P) the following new sub11 paragraph: 

12 ‘‘(Q) an omission of a correct valid identi13 fication number required under section 6428(h) 

14 (relating to 2008 recovery rebates for individ15 uals) to be included on a return.’’. 

16 (b) CLERICAL AMENDMENT RELATING TO SECTION

17 103.—Subclause (IV) of section 168(k)(2)(B)(i) is amend18 ed by striking ‘‘clauses also apply’’ and inserting ‘‘clause 

19 also applies’’. 

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

21 this section shall take effect as if included in the provisions 

22 of the Economic Stimulus Act of 2008 to which they re23 late. 


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1 SEC. 215. AMENDMENTS RELATING TO TAX TECHNICAL 

2 CORRECTIONS ACT OF 2007. 

3 (a) AMENDMENT RELATING TO SECTION 4(c).— 

4 Paragraph (1) of section 911(f) is amended by adding at 

5 the end the following flush sentence: 

6 ‘‘For purposes of this paragraph, the amount ex7 cluded under subsection (a) shall be reduced by the 

8 aggregate amount of any deductions or exclusions 

9 disallowed under subsection (d)(6) with respect to 

10 such excluded amount.’’. 

11 (b) CLERICAL AMENDMENT RELATING TO SECTION

12 11(g).—Clause (iv) of section 56(g)(4)(C) is amended by 

13 striking ‘‘a cooperative described in section 927(a)(4)’’ 

14 and inserting ‘‘an organization to which part I of sub15 chapter T (relating to tax treatment of cooperatives) ap16 plies which is engaged in the marketing of agricultural or 

17 horticultural products’’. 

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

19 this section shall take effect as if included in the provisions 

20 of the Tax Technical Corrections Act of 2007 to which 

21 they relate. 

22 SEC. 216. AMENDMENT RELATING TO TAX RELIEF AND 

23 HEALTH CARE ACT OF 2006. 

24 (a) AMENDMENT RELATING TO SECTION 105.—Sub25 paragraph (B) of section 45A(b)(1) is amended by adding 

26 at the end the following: ‘‘If any portion of wages are 


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1 taken into account under subsection (e)(1)(A) of section 

2 51, the preceding sentence shall be applied by substituting 

3 ‘2-year period’ for ‘1-year period’.’’. 

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

5 this section shall take effect as if included in the provision 

6 of the Tax Relief and Health Care Act of 2006 to which 

7 it relates. 

8 SEC. 217. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, 

9 FLEXIBLE, EFFICIENT TRANSPORTATION EQ10 UITY ACT OF 2005: A LEGACY FOR USERS. 

11 (a) AMENDMENT RELATING TO SECTION 11161.— 

12 Paragraph (1) of section 9503(b) is amended by inserting 

13 before the period at the end the following: ‘‘and taxes re14 ceived under section 4081 shall be determined without re15 gard to tax receipts attributable to the rate specified in 

16 section 4081(a)(2)(C)’’. 

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

18 this section shall take effect as if included in the provision 

19 of the Safe, Accountable, Flexible, Efficient Transpor20 tation Equity Act of 2005: A Legacy for Users to which 

21 it relates. 

22 SEC. 218. AMENDMENTS RELATING TO ENERGY TAX INCEN23 TIVES ACT OF 2005. 

24 (a) AMENDMENT RELATING TO SECTION 1341.— 

25 Subparagraph (B) of section 30B(h)(5) is amended by inVerDate Sep 11 2014 00:02 Dec 10, 2014 Jkt 049200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H5771.PCS H5771

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1 serting ‘‘(determined without regard to subsection (g))’’ 

2 before the period at the end. 

3 (b) AMENDMENT RELATING TO SECTION 1342.— 

4 Paragraph (1) of section 30C(e) is amended to read as 

5 follows: 

6 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

7 this subtitle, the basis of any property for which a 

8 credit is allowable under subsection (a) shall be re9 duced by the amount of such credit so allowed (de10 termined without regard to subsection (d)).’’. 

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

12 this section shall take effect as if included in the provision 

13 of the Energy Tax Incentives Act of 2005 to which it re14 lates. 

15 SEC. 219. AMENDMENTS RELATING TO AMERICAN JOBS 

16 CREATION ACT OF 2004. 

17 (a) AMENDMENT RELATING TO SECTION 101.—Sub18 section (d) of section 101 of the American Jobs Creation 

19 Act of 2004 is amended by adding at the end the following 

20 new paragraph: 

21 ‘‘(3) COORDINATION WITH SECTION 199.—This 

22 subsection shall be applied without regard to any de23 duction allowable under section 199.’’. 

24 (b) AMENDMENTS RELATING TO SECTION 102.— 

25 Paragraph (3) of section 199(b) is amended— 


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1 (1) by inserting ‘‘of a short taxable year or’’ 

2 after ‘‘in cases’’, and 

3 (2) by striking ‘‘AND DISPOSITIONS’’ and insert4 ing ‘‘, DISPOSITIONS, AND SHORT TAXABLE YEARS’’. 

5 (c) CLERICAL AMENDMENT RELATING TO SECTION

6 413.—Paragraph (7) of section 904(h) is amended by 

7 striking ‘‘as ordinary income under section 1246 or’’. 

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

9 this section shall take effect as if included in the provision 

10 of the American Jobs Creation Act of 2004 to which they 

11 relate. 

12 SEC. 220. OTHER CLERICAL CORRECTIONS. 

13 (a) Paragraph (8) of section 30B(h) is amended by 

14 striking ‘‘vehicle)., except that’’ and inserting ‘‘vehicle), 

15 except that’’. 

16 (b) Subparagraph (A) of section 38(c)(2) is amended 

17 by striking ‘‘credit credit’’ and inserting ‘‘credit’’. 

18 (c) Section 46 is amended by adding a comma at the 

19 end of paragraph (4). 

20 (d) Subparagraph (E) of section 50(a)(2) is amended 

21 by inserting ‘‘, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 

22 48D(b)(4)’’ after ‘‘in section 48(b)’’. 

23 (e) Clause (i) of section 54A(d)(2)(A) is amended by 

24 striking ‘‘100 percent or more’’ and inserting ‘‘100 per25 cent’’. 


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1 (f) Paragraph (2) of section 125(b) is amended by 

2 striking ‘‘statutory nontaxable benefits’’ each place it ap3 pears and inserting ‘‘qualified benefits’’. 

4 (g) Paragraph (2) of section 125(h) is amended by 

5 striking ‘‘means, any’’ and inserting ‘‘means any’’. 

6 (h) Subparagraph (F) of section 163(h)(4) is amend7 ed by striking ‘‘Veterans Administration or the Rural 

8 Housing Administration’’ and inserting ‘‘Department of 

9 Veterans Affairs or the Rural Housing Service’’. 

10 (i) Subsection (a) of section 249 is amended by strik11 ing ‘‘1563(a)(1)’’ and inserting ‘‘1563(a)(1))’’. 

12 (j) Paragraphs (8) and (10) of section 280F(d) are 

13 each amended by striking ‘‘subsection (a)(2)’’ and insert14 ing ‘‘subsection (a)(1)’’. 

15 (k) Clause (iii) of section 402A(c)(4)(E) is amended 

16 by striking ‘‘403(b)(7)(A)(i)’’ and inserting 

17 ‘‘403(b)(7)(A)(ii)’’. 

18 (l) Section 527 is amended— 

19 (1) by striking ‘‘(2 U.S.C. 432(e))’’ in sub20 section (h)(2)(A)(i) and inserting ‘‘(52 U.S.C. 

21 30102(e))’’, and 

22 (2) by striking ‘‘(2 U.S.C. 431 et seq.)’’ in sub23 sections (i)(6) and (j)(5)(A) and inserting ‘‘(52 

24 U.S.C. 30101 et seq.)’’. 


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1 (m) Subsection (b) of section 858 is amended by 

2 striking ‘‘857(b)(8)’’ and inserting ‘‘857(b)(9)’’. 

3 (n) Subparagraph (A) of section 1012(c)(2) is 

4 amended by striking ‘‘section 1012’’ and inserting ‘‘this 

5 section’’. 

6 (o) The heading for section 1394(f) is amended by 

7 striking ‘‘DESIGNATED UNDER SECTION 1391(g)’’. 

8 (p) Paragraphs (1) and (2)(A) of section 1394(f) are 

9 each amended by striking ‘‘a new empowerment zone facil10 ity bond’’ and inserting ‘‘an empowerment zone facility 

11 bond’’. 

12 (q) Clause (i) of section 1400N(c)(3)(A) is amended 

13 by striking ‘‘section 42(d)(5)(C)(iii)’’ and inserting ‘‘sec14 tion 42(d)(5)(B)(iii)’’. 

15 (r) Subsections (e)(3)(B) and (f)(7)(B) of section 

16 4943 are each amended by striking ‘‘January 1, 1970’’ 

17 and inserting ‘‘January 1, 1971’’. 

18 (s) Paragraph (2) of section 4982(f) is amended by 

19 adding a comma at the end. 

20 (t) Paragraph (3) of section 6011(e) is amended by 

21 striking ‘‘shall require than’’ and inserting ‘‘shall require 

22 that’’. 

23 (u) Subsection (b) of section 6072 is amended by 

24 striking ‘‘6011(e)(2)’’ and inserting ‘‘6011(c)(2)’’. 


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1 (v) Subsection (d) of section 6104 is amended by re2 designating the second paragraph (6) (relating to disclo3 sure of reports by the Internal Revenue Service) and third 

4 paragraph (6) (relating to application to nonexempt chari5 table trusts and nonexempt private foundations) as para6 graphs (7) and (8), respectively. 

7 (w) Subsection (c) of section 6662A is amended by 

8 striking ‘‘section 6664(d)(2)(A)’’ and inserting ‘‘section 

9 6664(d)(3)(A)’’. 

10 (x) Subparagraph (FF) of section 6724(d)(2) is 

11 amended by striking ‘‘section 6050W(c)’’ and inserting 

12 ‘‘section 6050W(f)’’. 

13 (y) Section 7122 is amended by redesignating the 

14 second subsection (f) (relating to frivolous submissions, 

15 etc.) as subsection (g). 

16 (z) Subsection (a) of section 9035 is amended by 

17 striking ‘‘section 320(b)(1)(A)’’ and inserting ‘‘section 

18 315(b)(1)(A)’’. 

19 (aa) Section 9802 is amended by redesignating the 

20 second subsection (f) (relating to genetic information of 

21 a fetus or embryo) as subsection (g). 

22 (bb) Paragraph (3) of section 13(e) of the Worker, 

23 Homeownership, and Business Assistance Act of 2009 is 

24 amended by striking ‘‘subsection (d)’’ and inserting ‘‘sub25 section (c)’’. 


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1 SEC. 221. DEADWOOD PROVISIONS. 

2 (a) IN GENERAL.— 

3 (1) ADJUSTMENTS IN TAX TABLES SO THAT IN4 FLATION WILL NOT RESULT IN TAX INCREASES.— 

5 Paragraph (7) of section 1(f) is amended to read as 

6 follows: 

7 ‘‘(7) SPECIAL RULE FOR CERTAIN BRACKETS.— 

8 In prescribing tables under paragraph (1) which 

9 apply to taxable years beginning in a calendar year 

10 after 1994, the cost-of-living adjustment used in 

11 making adjustments to the dollar amounts at which 

12 the 36 percent rate bracket begins or at which the 

13 39.6 percent rate bracket begins shall be determined 

14 under paragraph (3) by substituting ‘1993’ for 

15 ‘1992’.’’. 

16 (2) CERTAIN PLUG-IN ELECTRIC VEHICLES.— 

17 (A) Subpart B of part IV of subchapter A 

18 of chapter 1 is amended by striking section 30 

19 (and by striking the item relating to such sec20 tion in the table of sections for such subpart). 

21 (B) Subsection (b) of section 38, as 

22 amended by section 209(f)(1) of this Act, is 

23 amended by inserting ‘‘plus’’ at the end of 

24 paragraph (35), by striking paragraph (36), 

25 and by redesignating paragraph (37) as para26 graph (36). 


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1 (C) Subclause (VI) of section 

2 48C(c)(1)(A)(i) is amended by striking ‘‘, quali3 fied plug-in electric vehicles (as defined by sec4 tion 30(d)),’’. 

5 (D) Section 1016(a) is amended by strik6 ing paragraph (25). 

7 (E) Section 6501(m) is amended by strik8 ing ‘‘section 30(e)(6),’’. 

9 (3) EARNED INCOME CREDIT.— 

10 (A) Paragraph (1) of section 32(b) is 

11 amended— 

12 (i) by striking subparagraphs (B) and 

13 (C), and 

14 (ii) by striking ‘‘(A) IN GENERAL.— 

15 In the case of taxable years beginning 

16 after 1995:’’ in subparagraph (A) and 

17 moving the table 2 ems to the left. 

18 (B) Subparagraph (B) of section 32(b)(2) 

19 is amended by striking ‘‘increased by’’ and all 

20 that follows and inserting ‘‘increased by 

21 $3,000.’’. 

22 (4) FIRST-TIME HOMEBUYER CREDIT.—Section 

23 6213(g)(2), as amended by section 214(a)(2) of this 

24 Act, is amended by striking subparagraph (P). 

25 (5) MAKING WORK PAY CREDIT.— 


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1 (A) Subpart C of part IV of subchapter A 

2 of chapter 1 is amended by striking section 36A 

3 (and by striking the item relating to such sec4 tion in the table of sections for such subpart). 

5 (B) Subparagraph (A) of section 

6 6211(b)(4) is amended by striking ‘‘, 36A’’. 

7 (C) Section 6213(g)(2) is amended by 

8 striking subparagraph (N). 

9 (6) GENERAL BUSINESS CREDITS.—Subsection 

10 (d) of section 38 is amended by striking paragraph 

11 (3). 

12 (7) LOW-INCOME HOUSING CREDIT.—Subclause 

13 (I) of section 42(h)(3)(C)(ii) is amended by striking 

14 ‘‘($1.50 for 2001)’’. 

15 (8) MINIMUM TAX CREDIT.— 

16 (A)(i) Section 53 is amended by striking 

17 subsections (e) and (f). 

18 (ii) The amendment made by clause (i) 

19 striking subsection (f) of section 53 of the In20 ternal Revenue Code of 1986 shall not be con21 strued to allow any tax abated by reason of sec22 tion 53(f)(1) of such Code (as in effect before 

23 such amendment) to be included in the amount 

24 determined under section 53(b)(1) of such 

25 Code. 


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1 (B) Paragraph (4) of section 6211(b)(4) is 

2 amended by striking ‘‘, 53(e)’’. 

3 (9) ADJUSTMENTS BASED ON ADJUSTED CUR4 RENT EARNINGS.—Clause (ii) of section 56(g)(4)(F) 

5 is amended by striking ‘‘In the case of any taxable 

6 year beginning after December 31, 1992, clause’’ 

7 and inserting ‘‘Clause’’. 

8 (10) ITEMS OF TAX PREFERENCE; DEPLE9 TION.—Paragraph (1) of section 57(a) is amended 

10 by striking ‘‘Effective with respect to taxable years 

11 beginning after December 31, 1992, this’’ and in12 serting ‘‘This’’. 

13 (11) INTANGIBLE DRILLING COSTS.— 

14 (A) Clause (i) of section 57(a)(2)(E) is 

15 amended by striking ‘‘In the case of any taxable 

16 year beginning after December 31, 1992, this’’ 

17 and inserting ‘‘This’’. 

18 (B) Clause (ii) of section 57(a)(2)(E) is 

19 amended by striking ‘‘(30 percent in case of 

20 taxable years beginning in 1993)’’. 

21 (12) ENVIRONMENTAL TAX.— 

22 (A) Subchapter A of chapter 1 is amended 

23 by striking part VII (and by striking the item 

24 relating to such part in the table of parts for 

25 such subchapter). 


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1 (B) Paragraph (2) of section 26(b) is 

2 amended by striking subparagraph (B). 

3 (C) Section 30A(c) is amended by striking 

4 paragraph (1) and by redesignating paragraphs 

5 (2), (3), and (4) as paragraphs (1), (2), and 

6 (3), respectively. 

7 (D) Subsection (a) of section 164 is 

8 amended by striking paragraph (5). 

9 (E) Section 275(a) is amended by striking 

10 the last sentence. 

11 (F) Section 882(a)(1) is amended by strik12 ing ‘‘, 59A’’. 

13 (G) Section 936(a)(3) is amended by strik14 ing subparagraph (A) and by redesignating sub15 paragraphs (B), (C), and (D) as subparagraphs 

16 (A), (B), and (C), respectively. 

17 (H) Section 1561(a) is amended— 

18 (i) by inserting ‘‘and’’ at the end of 

19 paragraph (2), by striking ‘‘, and’’ at the 

20 end of paragraph (3) and inserting a pe21 riod, and by striking paragraph (4), and 

22 (ii) by striking ‘‘, the amount speci23 fied in paragraph (3), and the amount 

24 specified in paragraph (4)’’ and inserting 


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1 ‘‘and the amount specified in paragraph 

2 (3)’’. 

3 (I) Section 4611(e) is amended— 

4 (i) by striking ‘‘section 59A, this sec5 tion,’’ in paragraph (2)(B) and inserting 

6 ‘‘this section’’, and 

7 (ii) in paragraph (3)(A)— 

8 (I) by striking ‘‘section 59A,’’, 

9 and 

10 (II) by striking the comma after 

11 ‘‘rate)’’. 

12 (J) Section 6425(c)(1)(A) is amended by 

13 inserting ‘‘plus’’ at end of clause (i), by striking 

14 ‘‘plus’’ and inserting ‘‘over’’ at the end of 

15 clause (ii), and by striking clause (iii). 

16 (K) Section 6655 is amended— 

17 (i) in subsections (e)(2)(A)(i) and 

18 (e)(2)(B)(i), by striking ‘‘taxable income, 

19 alternative minimum taxable income, and 

20 modified alternative minimum taxable in21 come’’ and inserting ‘‘taxable income and 

22 alternative minimum taxable income’’, 

23 (ii) in subsection (e)(2)(B), by strik24 ing clause (iii), and 


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1 (iii) in subsection (g)(1)(A), by insert2 ing ‘‘plus’’ at the end of clause (ii), by 

3 striking clause (iii), and by redesignating 

4 clause (iv) as clause (iii). 

5 (L) Section 9507(b)(1) is amended by 

6 striking ‘‘59A,’’. 

7 (13) STANDARD DEDUCTION.— 

8 (A) So much of paragraph (1) of section 

9 63(c) as follows ‘‘the sum of—’’ is amended to 

10 read as follows: 

11 ‘‘(A) the basic standard deduction, and 

12 ‘‘(B) the additional standard deduction.’’. 

13 (B) Subsection (c) of section 63 is amend14 ed by striking paragraphs (7), (8), and (9). 

15 (14) ANNUITIES; CERTAIN PROCEEDS OF EN16 DOWMENT AND LIFE INSURANCE CONTRACTS.—Sec17 tion 72 is amended— 

18 (A) in subsection (c)(4), by striking ‘‘; ex19 cept that if such date was before January 1, 

20 1954, then the annuity starting date is January 

21 1, 1954’’, and 

22 (B) in subsection (g)(3), by striking ‘‘Jan23 uary 1, 1954, or’’ and ‘‘, whichever is later’’. 

24 (15) UNEMPLOYMENT COMPENSATION.—Sec25 tion 85 is amended by striking subsection (c). 


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1 (16) ACCIDENT AND HEALTH PLANS.—Section 

2 105(f) is amended by striking ‘‘or (d)’’. 

3 (17) FLEXIBLE SPENDING ARRANGEMENTS.— 

4 Section 106(c)(1) is amended by striking ‘‘Effective 

5 on and after January 1, 1997, gross’’ and inserting 

6 ‘‘Gross’’. 

7 (18) CERTAIN COMBAT ZONE COMPENSATION

8 OF MEMBERS OF THE ARMED FORCES.—Subsection 

9 (c) of section 112 is amended— 

10 (A) by striking ‘‘(after June 24, 1950)’’ in 

11 paragraph (2), and 

12 (B) by striking ‘‘such zone;’’ and all that 

13 follows in paragraph (3) and inserting ‘‘such 

14 zone.’’. 

15 (19) LEGAL SERVICE PLANS.— 

16 (A) Part III of subchapter B of chapter 1 

17 is amended by striking section 120 (and by 

18 striking the item relating to such section in the 

19 table of sections for such subpart). 

20 (B)(i) Section 414(n)(3)(C) is amended by 

21 striking ‘‘120,’’. 

22 (ii) Section 414(t)(2) is amended by strik23 ing ‘‘120,’’. 

24 (iii) Section 501(c) is amended by striking 

25 paragraph (20). 


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1 (iv) Section 3121(a) is amended by strik2 ing paragraph (17). 

3 (v) Section 3231(e) is amended by striking 

4 paragraph (7). 

5 (vi) Section 3306(b) is amended by strik6 ing paragraph (12). 

7 (vii) Section 6039D(d)(1) is amended by 

8 striking ‘‘120,’’. 

9 (viii) Section 209(a)(14) of the Social Se10 curity Act is amended— 

11 (I) by striking subparagraph (B), and 

12 (II) by striking ‘‘(14)(A)’’ and insert13 ing ‘‘(14)’’. 

14 (20) PRINCIPAL RESIDENCE.—Section 

15 121(b)(3) is amended— 

16 (A) by striking subparagraph (B), and 

17 (B) in subparagraph (A), by striking ‘‘(A) 

18 IN GENERAL.—’’ and moving the text 2 ems to 

19 the left. 

20 (21) CERTAIN REDUCED UNIFORMED SERVICES

21 RETIREMENT PAY.—Section 122(b)(1) is amended 

22 by striking ‘‘after December 31, 1965,’’. 

23 (22) GREAT PLAINS CONSERVATION PRO24 GRAM.—Section 126(a) is amended by striking para25 graph (6) and by redesignating paragraphs (7), (8), 


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1 (9), and (10) as paragraphs (6), (7), (8), and (9), 

2 respectively. 

3 (23) TREBLE DAMAGE PAYMENTS UNDER THE

4 ANTITRUST LAW.—Section 162(g) is amended by 

5 striking the last sentence. 

6 (24) STATE LEGISLATORS’ TRAVEL EXPENSES

7 AWAY FROM HOME.—Paragraph (4) of section 

8 162(h) is amended by striking ‘‘For taxable years 

9 beginning after December 31, 1980, this’’ and in10 serting ‘‘This’’. 

11 (25) INTEREST.— 

12 (A) Section 163 is amended— 

13 (i) by striking paragraph (6) of sub14 section (d), and 

15 (ii) by striking paragraph (5) of sub16 section (h). 

17 (B) Section 56(b)(1)(C) is amended by 

18 striking clause (ii) and by redesignating clauses 

19 (iii), (iv), and (v) as clauses (ii), (iii), and (iv), 

20 respectively. 

21 (26) QUALIFIED MOTOR VEHICLE TAXES.—Sec22 tion 164, as amended by section 209(c) of this Act, 

23 is amended by striking subsections (a)(6) and (b)(6). 

24 (27) DISASTER LOSSES.— 


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1 (A) Subsection (h) of section 165 is 

2 amended by striking paragraph (3) and by re3 designating paragraphs (4) and (5) as para4 graphs (3) and (4), respectively. 

5 (B) Paragraph (3) of section 165(h), as so 

6 redesignated, is amended by striking ‘‘para7 graphs (2) and (3)’’ and inserting ‘‘paragraph 

8 (2)’’. 

9 (C) Subsection (i) of section 165 is amend10 ed— 

11 (i) in paragraph (1)— 

12 (I) by striking ‘‘(as defined by 

13 clause (ii) of subsection (h)(3)(C))’’, 

14 and 

15 (II) by striking ‘‘(as defined by 

16 clause (i) of such subsection)’’, 

17 (ii) by striking ‘‘(as defined by sub18 section (h)(3)(C)(i)’’ in paragraph (4), and 

19 (iii) by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(5) FEDERALLY DECLARED DISASTERS.—For 

22 purposes of this subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘Federally 

24 declared disaster’ means any disaster subse25 quently determined by the President of the 


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1 United States to warrant assistance by the Fed2 eral Government under the Robert T. Stafford 

3 Disaster Relief and Emergency Assistance Act. 

4 ‘‘(B) DISASTER AREA.—The term ‘disaster 

5 area’ means the area so determined to warrant 

6 such assistance.’’. 

7 (D) Section 1033(h)(3) is amended by 

8 striking ‘‘section 165(h)(3)(C)’’ and inserting 

9 ‘‘section 165(i)(5)’’. 

10 (28) CHARITABLE, ETC., CONTRIBUTIONS AND

11 GIFTS.—Section 170 is amended— 

12 (A) by striking paragraph (3) of subsection 

13 (b), 

14 (B) by striking paragraph (6) of sub15 section (e), and 

16 (C) by striking subsection (k). 

17 (29) AMORTIZABLE BOND PREMIUM.— 

18 (A) Subparagraph (B) of section 171(b)(1) 

19 is amended to read as follows: 

20 ‘‘(B)(i) with reference to the amount pay21 able on maturity (or if it results in a smaller 

22 amortizable bond premium attributable to the 

23 period before the call date, with reference to the 

24 amount payable on the earlier call date), in the 


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1 case of a bond described in subsection (a)(1), 

2 and 

3 ‘‘(ii) with reference to the amount payable 

4 on maturity or on an earlier call date, in the 

5 case of a bond described in subsection (a)(2).’’. 

6 (B) Paragraphs (2) and (3)(B) of section 

7 171(b) are each amended by striking ‘‘para8 graph (1)(B)(ii)’’ and inserting ‘‘paragraph 

9 (1)(B)(i)’’. 

10 (30) NET OPERATING LOSS CARRYBACKS, 

11 CARRYOVERS, AND CARRYFORWARDS.— 

12 (A) Section 172, as amended by section 

13 211(c)(1)(B) of this Act, is amended— 

14 (i) by striking subparagraphs (D), 

15 (H), (I), and (J) of subsection (b)(1) and 

16 by redesignating subparagraphs (E), (F), 

17 and (G) as subparagraphs (D), (E), and 

18 (F), respectively, and 

19 (ii) by striking subsections (g) and (j) 

20 and by redesignating subsections (h), (i), 

21 and (k) as subsections (g), (h), and (i), re22 spectively. 

23 (B) Each of the following provisions of sec24 tion 172 (as amended by section 211(c)(1)(B) 


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1 of this Act and as redesignated by subpara2 graph (A)) are amended as follows: 

3 (i) By striking ‘‘ending after August 

4 2, 1989’’ in subsection (b)(1)(D)(i)(II). 

5 (ii) By striking ‘‘subsection (h)’’ in 

6 subsection (b)(1)(D)(ii) and inserting 

7 ‘‘subsection (g)’’. 

8 (iii) By striking ‘‘section 

9 165(h)(3)(C)(i)’’ in subsection 

10 (b)(1)(E)(ii)(II) and inserting ‘‘section 

11 165(i)(5)’’. 

12 (iv) By striking ‘‘subsection (i)’’ and 

13 all that follows in the last sentence of sub14 section (b)(1)(E)(ii) and inserting ‘‘sub15 section (h)).’’. 

16 (v) By striking ‘‘subsection (i)’’ in 

17 subsection (b)(1)(F) and inserting ‘‘sub18 section (h)’’. 

19 (vi) By striking subparagraph (F) of 

20 paragraph (2) of subsection (g). 

21 (vii) By striking ‘‘subsection 

22 (b)(1)(E)’’ each place it appears in sub23 section (g)(4) and inserting ‘‘subsection 

24 (b)(1)(D)’’. 


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1 (viii) By striking the last sentence of 

2 subsection (h)(1). 

3 (ix) By striking ‘‘subsection 

4 (b)(1)(G)’’ each place it appears in sub5 section (h)(3) and inserting ‘‘subsection 

6 (b)(1)(F)’’. 

7 (C) Subsection (d) of section 56 is amend8 ed by striking paragraph (3). 

9 (D) Paragraph (5) of section 382(l) is 

10 amended by striking subparagraph (F) and by 

11 redesignating subparagraphs (G) and (H) as 

12 subparagraphs (F) and (G), respectively. 

13 (31) RESEARCH AND EXPERIMENTAL EXPENDI14 TURES.—Subparagraph (A) of section 174(a)(2) is 

15 amended to read as follows: 

16 ‘‘(A) WITHOUT CONSENT.—A taxpayer 

17 may, without the consent of the Secretary, 

18 adopt the method provided in this subsection 

19 for his first taxable year for which expenditures 

20 described in paragraph (1) are paid or in21 curred.’’. 

22 (32) AMORTIZATION OF CERTAIN RESEARCH

23 AND EXPERIMENTAL EXPENDITURES.—Paragraph 

24 (2) of section 174(b) is amended by striking ‘‘begin25 ning after December 31, 1953’’. 


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1 (33) SOIL AND WATER CONSERVATION EXPEND2 ITURES.—Paragraph (1) of section 175(d) is amend3 ed to read as follows: 

4 ‘‘(1) WITHOUT CONSENT.—A taxpayer may, 

5 without the consent of the Secretary, adopt the 

6 method provided in this section for the taxpayer’s 

7 first taxable year for which expenditures described in 

8 subsection (a) are paid or incurred.’’. 

9 (34) CLEAN-FUEL VEHICLES.— 

10 (A) Part VI of subchapter A of chapter 1 

11 is amended by striking section 179A (and by 

12 striking the item relating to such section in the 

13 table of sections for such part). 

14 (B) Section 30C(e) is amended by adding 

15 at the end the following: 

16 ‘‘(7) REFERENCE.—For purposes of this sec17 tion, any reference to section 179A shall be treated 

18 as a reference to such section as in effect imme19 diately before its repeal.’’. 

20 (C) Section 62(a) is amended by striking 

21 paragraph (14). 

22 (D) Section 263(a)(1) is amended by strik23 ing subparagraph (H). 

24 (E) Section 280F(a)(1) is amended by 

25 striking subparagraph (C). 


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1 (F) Section 312(k)(3) is amended by strik2 ing ‘‘179A,’’ each place it appears. 

3 (G) Section 1016(a) is amended by strik4 ing paragraph (24). 

5 (H) Section 1245(a) is amended by strik6 ing ‘‘179A,’’ each place it appears in para7 graphs (2)(C) and (3)(C). 

8 (35) QUALIFIED DISASTER EXPENSES.—Part 

9 VI of subchapter A of chapter 1 is amended by 

10 striking section 198A (and by striking the item re11 lating to such section in the table of sections for 

12 such part). 

13 (36) ACTIVITIES NOT ENGAGED IN FOR PROF14 IT.—Section 183(e)(1) is amended by striking the 

15 last sentence. 

16 (37) DOMESTIC PRODUCTION ACTIVITIES.— 

17 (A) Subsection (a) of section 199 is 

18 amended— 

19 (i) by striking paragraph (2), 

20 (ii) by redesignating subparagraphs 

21 (A) and (B) of paragraph (1) as para22 graphs (1) and (2), respectively, and by 

23 moving paragraphs (1) and (2) (as so re24 designated) 2 ems to the left, and 


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1 (iii) by striking ‘‘ALLOWANCE OF DE2 DUCTION.—’’ and all that follows through 

3 ‘‘There shall be allowed’’ and inserting the 

4 following: 

5 ‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be 

6 allowed’’. 

7 (B) Paragraphs (2) and (6)(B) of section 

8 199(d) are each amended by striking 

9 ‘‘(a)(1)(B)’’ and inserting ‘‘(a)(2)’’. 

10 (38) RETIREMENT SAVINGS.— 

11 (A) Subparagraph (A) of section 219(b)(5) 

12 is amended to read as follows: 

13 ‘‘(A) IN GENERAL.—The deductible 

14 amount is $5,000.’’. 

15 (B) Clause (ii) of section 219(b)(5)(B) is 

16 amended to read as follows: 

17 ‘‘(ii) APPLICABLE AMOUNT.—For pur18 poses of clause (i), the applicable amount 

19 is $1,000.’’. 

20 (C) Paragraph (5) of section 219(b) is 

21 amended by striking subparagraph (C) and by 

22 redesignating subparagraph (D) as subpara23 graph (C). 


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1 (D) Clause (ii) of section 219(g)(2)(A) is 

2 amended by striking ‘‘for a taxable year begin3 ning after December 31, 2006’’. 

4 (E) Section 219(g)(3)(B) is amended by 

5 striking clauses (i) and (ii) and inserting the 

6 following: 

7 ‘‘(i) In the case of a taxpayer filing a 

8 joint return, $80,000. 

9 ‘‘(ii) In the case of any other taxpayer 

10 (other than a married individual filing a 

11 separate return), $50,000.’’. 

12 (F) Paragraph (8) of section 219(g) is 

13 amended by striking ‘‘the dollar amount in the 

14 last row of the table contained in paragraph 

15 (3)(B)(i), the dollar amount in the last row of 

16 the table contained in paragraph (3)(B)(ii), and 

17 the dollar amount contained in paragraph 

18 (7)(A),’’ and inserting ‘‘each of the dollar 

19 amounts in paragraphs (3)(B)(i), (3)(B)(ii), 

20 and (7)(A)’’. 

21 (39) REPORTS REGARDING QUALIFIED VOL22 UNTARY RETIREMENT CONTRIBUTIONS.— 

23 (A) Section 219 is amended by striking 

24 paragraph (4) of subsection (f) and subsection 

25 (h). 


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1 (B) Section 6652 is amended by striking 

2 subsection (g). 

3 (40) INTEREST ON EDUCATION LOANS.—Para4 graph (1) of section 221(b) is amended by striking 

5 ‘‘shall not exceed’’ and all that follows and inserting 

6 ‘‘shall not exceed $2,500.’’. 

7 (41) DIVIDENDS RECEIVED ON CERTAIN PRE8 FERRED STOCK; AND DIVIDENDS PAID ON CERTAIN

9 PREFERRED STOCK OF PUBLIC UTILITIES.— 

10 (A) Sections 244 and 247 are hereby re11 pealed, and the table of sections for part VIII 

12 of subchapter B of chapter 1 is amended by 

13 striking the items relating to sections 244 and 

14 247. 

15 (B) Paragraph (5) of section 172(d) is 

16 amended to read as follows: 

17 ‘‘(5) COMPUTATION OF DEDUCTION FOR DIVI18 DENDS RECEIVED.—The deductions allowed by sec19 tion 243 (relating to dividends received by corpora20 tions) and 245 (relating to dividends received from 

21 certain foreign corporations) shall be computed with22 out regard to section 246(b) (relating to limitation 

23 on aggregate amount of deductions).’’. 

24 (C) Paragraph (1) of section 243(c) is 

25 amended to read as follows: 


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1 ‘‘(1) IN GENERAL.—In the case of any dividend 

2 received from a 20-percent owned corporation, sub3 section (a)(1) shall be applied by substituting ‘80 

4 percent’ for ‘70 percent’.’’. 

5 (D) Section 243(d) is amended by striking 

6 paragraph (4). 

7 (E) Section 246 is amended— 

8 (i) by striking ‘‘, 244,’’ in subsection 

9 (a)(1), 

10 (ii) in subsection (b)(1)— 

11 (I) by striking ‘‘sections 

12 243(a)(1), 244(a),’’ and inserting 

13 ‘‘section 243(a)(1)’’, 

14 (II) by striking ‘‘244(a),’’ the 

15 second place it appears, and 

16 (III) by striking ‘‘subsection (a) 

17 or (b) of section 245, and 247,’’ and 

18 inserting ‘‘and subsection (a) or (b) of 

19 section 245,’’, and 

20 (iii) by striking ‘‘, 244,’’ in subsection 

21 (c)(1). 

22 (F) Section 246A is amended by striking 

23 ‘‘, 244,’’ both places it appears in subsections 

24 (a) and (e). 


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1 (G) Sections 263(g)(2)(B)(iii), 277(a), 

2 301(e)(2), 469(e)(4), 512(a)(3)(A), subpara3 graphs (A), (C), and (D) of section 805(a)(4), 

4 805(b)(5), 812(e)(2)(A), 815(c)(2)(A)(iii), 

5 832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B) are 

6 each amended by striking ‘‘, 244,’’ each place 

7 it appears. 

8 (H) Section 1244(c)(2)(C) is amended by 

9 striking ‘‘244,’’. 

10 (I) Section 805(a)(4)(B) is amended by 

11 striking ‘‘, 244(a),’’ each place it appears. 

12 (J) Section 810(c)(2)(B) is amended by 

13 striking ‘‘244 (relating to dividends on certain 

14 preferred stock of public utilities),’’. 

15 (K) The amendments made by this para16 graph shall not apply to preferred stock issued 

17 before October 1, 1942 (determined in the same 

18 manner as under section 247 of the Internal 

19 Revenue Code of 1986 as in effect before its re20 peal by such amendments). 

21 (42) ORGANIZATION EXPENSES.—Section 

22 248(c) is amended by striking ‘‘beginning after De23 cember 31, 1953,’’ and by striking the last sentence. 

24 (43) BOND REPURCHASE PREMIUM.—Section 

25 249(b)(1) is amended by striking ‘‘, in the case of 


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1 bonds or other evidences of indebtedness issued after 

2 February 28, 1913,’’. 

3 (44) AMOUNT OF GAIN WHERE LOSS PRE4 VIOUSLY DISALLOWED.—Section 267(d) is amended 

5 by striking ‘‘(or by reason of section 24(b) of the In6 ternal Revenue Code of 1939)’’ in paragraph (1), by 

7 striking ‘‘after December 31, 1953,’’ in paragraph 

8 (2), by striking the second sentence, and by striking 

9 ‘‘or by reason of section 118 of the Internal Revenue 

10 Code of 1939’’ in the last sentence. 

11 (45) ACQUISITIONS MADE TO EVADE OR AVOID

12 INCOME TAX.—Paragraphs (1) and (2) of section 

13 269(a) are each amended by striking ‘‘or acquired 

14 on or after October 8, 1940,’’. 

15 (46) MEALS AND ENTERTAINMENT.—Para16 graph (3) of section 274(n) is amended— 

17 (A) by striking ‘‘(A) IN GENERAL.—’’, 

18 (B) by striking ‘‘substituting ‘the applica19 ble percentage’ for’’ and inserting ‘‘substituting 

20 ‘80 percent’ for’’, and 

21 (C) by striking subparagraph (B). 

22 (47) INTEREST ON INDEBTEDNESS INCURRED

23 BY CORPORATIONS TO ACQUIRE STOCK OR ASSETS

24 OF ANOTHER CORPORATION.— 

25 (A) Section 279 is amended— 


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1 (i) by striking ‘‘after December 31, 

2 1967,’’ in subsection (a)(2), 

3 (ii) by striking ‘‘after October 9, 

4 1969,’’ in subsection (b), 

5 (iii) by striking ‘‘after October 9, 

6 1969, and’’ in subsection (d)(5), and 

7 (iv) by striking subsection (i) and re8 designating subsection (j) as subsection (i). 

9 (B) The amendments made by this para10 graph shall not— 

11 (i) apply to obligations issued on or 

12 before October 9, 1969 (determined in the 

13 same manner as under section 279 of the 

14 Internal Revenue Code of 1986 as in effect 

15 before such amendments), and 

16 (ii) be construed to require interest on 

17 obligations issued on or before December 

18 31, 1967, to be taken into account under 

19 section 279(a)(2) of such Code (as in ef20 fect after such amendments). 

21 (48) BANK HOLDING COMPANIES.— 

22 (A) Clause (iii) of section 304(b)(3)(D) is 

23 repealed. 


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1 (B) The heading of subparagraph (D) of 

2 section 304(b)(3) is amended by striking ‘‘AND

3 SPECIAL RULE’’. 

4 (49) EFFECT ON EARNINGS AND PROFITS.— 

5 Subsection (d) of section 312 is amended by striking 

6 paragraph (2) and redesignating paragraph (3) as 

7 paragraph (2). 

8 (50) DISQUALIFIED STOCK.—Paragraph (3) of 

9 section 355(d) is amended by striking ‘‘after Octo10 ber 9, 1990, and’’ each place it appears. 

11 (51) BASIS TO CORPORATIONS.—Section 362 is 

12 amended by striking ‘‘on or after June 22, 1954’’ in 

13 subsection (a) and by striking ‘‘, on or after June 

14 22, 1954,’’ each place it appears in subsection (c). 

15 (52) TEMPORARY WAIVER OF MINIMUM RE16 QUIRED DISTRIBUTION.—Section 401(a)(9) is 

17 amended by striking subparagraph (H). 

18 (53) INDIVIDUAL RETIREMENT ACCOUNTS.— 

19 Clause (i) of section 408(p)(2)(E) is amended to 

20 read as follows: 

21 ‘‘(i) IN GENERAL.—For purposes of 

22 subparagraph (A)(ii), the applicable 

23 amount is $10,000.’’. 


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1 (54) TAX CREDIT EMPLOYEE STOCK OWNER2 SHIP PLANS.—Section 409 is amended by striking 

3 subsection (q). 

4 (55) CATCH-UP CONTRIBUTIONS.—Clauses (i) 

5 and (ii) of section 414(v)(2)(B) are amended to read 

6 as follows: 

7 ‘‘(i) In the case of an applicable em8 ployer plan other than a plan described in 

9 section 401(k)(11) or 408(p), the applica10 ble dollar amount is $5,000. 

11 ‘‘(ii) In the case of an applicable em12 ployer plan described in section 401(k)(11) 

13 or 408(p), the applicable dollar amount is 

14 $2,500.’’. 

15 (56) EMPLOYEE STOCK PURCHASE PLANS.— 

16 Section 423(a) is amended by striking ‘‘after De17 cember 31, 1963,’’. 

18 (57) PENSION RELATED TRANSITION RULES.— 

19 (A) Section 402(g)(1)(B) is amended by 

20 striking ‘‘shall be’’ and all that follows and in21 serting ‘‘is $15,000.’’. 

22 (B)(i) Subparagraph (D) of section 

23 417(e)(3) is amended— 

24 (I) by striking clauses (ii) and (iii), 


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1 (II) by striking ‘‘if—’’ and all that 

2 follows through ‘‘section 430(h)(2)(D)’’ 

3 and inserting ‘‘if section 430(h)(2)(D)’’, 

4 and 

5 (III) by striking ‘‘described in such 

6 section,’’ and inserting ‘‘described in such 

7 section.’’. 

8 (ii) Clause (iii) of section 205(g)(3)(B) of 

9 the Employee Retirement Income Security Act 

10 of 1974 (29 U.S.C. 1055(g)(3)(B)) is amend11 ed— 

12 (I) by striking subclauses (II) and 

13 (III), 

14 (II) by striking ‘‘if—’’ and all that 

15 follows through ‘‘section 303(h)(2)(D)’’ 

16 and inserting ‘‘if section 303(h)(2)(D)’’, 

17 and 

18 (III) by striking ‘‘described in such 

19 section,’’ and inserting ‘‘described in such 

20 section.’’. 

21 (C)(i) Paragraph (5) of section 430(c) is 

22 amended by striking subparagraph (B) and by 

23 striking ‘‘(A) IN GENERAL.—’’. 

24 (ii) Paragraph (5) of section 303(c) of the 

25 Employee Retirement Income Security Act of 


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1 1974 (29 U.S.C. 1083(c)) is amended by strik2 ing subparagraph (B) and by striking ‘‘(A) IN

3 GENERAL.—’’. 

4 (D)(i) Paragraph (2) of section 430(h) is 

5 amended by striking subparagraph (G). 

6 (ii) Paragraph (2) of section 303(h) of the 

7 Employee Retirement Income Security Act of 

8 1974 (29 U.S.C. 1083(h)) is amended by strik9 ing subparagraph (G). 

10 (E)(i) Paragraph (3) of section 436(j), as 

11 added by section 113(a)(1)(B) of the Pension 

12 Protection Act of 2006, is amended by striking 

13 subparagraphs (B) and (C) and by striking 

14 ‘‘(A) IN GENERAL.—’’. 

15 (ii) Subparagraph (C) of section 206(g)(9) 

16 of the Employee Retirement Income Security 

17 Act of 1974 (29 U.S.C. 1056(g)(9)) is amended 

18 by striking clauses (ii) and (iii) and by striking 

19 ‘‘(i) IN GENERAL.—’’. 

20 (F)(i) Section 436(j) is amended by strik21 ing the paragraph (3) added by section 

22 203(a)(2) of the Preservation of Access to Care 

23 for Medicare Beneficiaries and Pension Relief 

24 Act of 2010. 


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1 (ii) Section 206(g)(9) of the Employee Re2 tirement Income Security Act of 1974 (29 

3 U.S.C. 1056(g)(9)) is amended by striking sub4 paragraph (D). 

5 (G)(i) Section 436 is amended by striking 

6 subsection (m). 

7 (ii) Section 206(g) of the Employee Retire8 ment Income Security Act of 1974 (29 U.S.C. 

9 1056(g)) is amended by striking paragraph 

10 (11). 

11 (H) Section 457(e)(15)(A) is amended by 

12 striking ‘‘shall be’’ and all that follows and in13 serting ‘‘is $15,000.’’. 

14 (58) LIMITATION ON DEDUCTIONS FOR CER15 TAIN FARMING.— 

16 (A) Section 464 is amended by striking 

17 ‘‘any farming syndicate (as defined in sub18 section (c))’’ both places it appears in sub19 sections (a) and (b) and inserting ‘‘any tax20 payer to whom subsection (d) applies’’. 

21 (B)(i) Subsection (c) of section 464 is 

22 hereby moved to the end of section 461 and re23 designated as subsection (j). 

24 (ii) Such subsection (j) is amended— 


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1 (I) by striking ‘‘For purposes of this 

2 section’’ in paragraph (1) and inserting 

3 ‘‘For purposes of subsection (i)(4)’’, and 

4 (II) by adding at the end the fol5 lowing new paragraphs: 

6 ‘‘(3) FARMING.—For purposes of this sub7 section, the term ‘farming’ has the meaning given to 

8 such term by section 464(e). 

9 ‘‘(4) LIMITED ENTREPRENEUR.—For purposes 

10 of this subsection, the term ‘limited entrepreneur’ 

11 means a person who— 

12 ‘‘(A) has an interest in an enterprise other 

13 than as a limited partner, and 

14 ‘‘(B) does not actively participate in the 

15 management of such enterprise.’’. 

16 (iii) Paragraph (4) of section 461(i) is 

17 amended by striking ‘‘section 464(c)’’ and 

18 inserting ‘‘subsection (j)’’. 

19 (C) Section 464 is amended— 

20 (i) by striking subsections (e) and (g) 

21 and redesignating subsections (d) and (f) 

22 as subsections (c) and (d), respectively, 

23 and 

24 (ii) by adding at the end the following 

25 new subsection: 


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1 ‘‘(e) FARMING.—For purposes of this section, the 

2 term ‘farming’ means the cultivation of land or the raising 

3 or harvesting of any agricultural or horticultural com4 modity including the raising, shearing, feeding, caring for, 

5 training, and management of animals. For purposes of the 

6 preceding sentence, trees (other than trees bearing fruit 

7 or nuts) shall not be treated as an agricultural or horti8 cultural commodity.’’. 

9 (D) Subsection (d) of section 464 of such 

10 Code (as redesignated by subparagraph (C)) is 

11 amended— 

12 (i) by striking paragraph (1) and re13 designating paragraphs (2), (3), and (4) as 

14 paragraphs (1), (2), and (3), respectively, 

15 and 

16 (ii) by striking ‘‘SUBSECTIONS (A) 

17 AND (B) TO APPLY TO’’ in the heading. 

18 (E) Subparagraph (A) of section 58(a)(2) 

19 is amended by striking ‘‘section 464(c)’’ and in20 serting ‘‘section 461(j)’’. 

21 (59) DEDUCTIONS LIMITED TO AMOUNT AT

22 RISK.—Subparagraph (A) of section 465(c)(3) is 

23 amended by striking ‘‘In the case of taxable years 

24 beginning after December 31, 1978, this’’ and in25 serting ‘‘This’’. 


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1 (60) PASSIVE ACTIVITY LOSSES AND CREDITS

2 LIMITED.— 

3 (A) Section 469 is amended by striking 

4 subsection (m). 

5 (B) Subsection (b) of section 58 is amend6 ed by adding ‘‘and’’ at the end of paragraph 

7 (1), by striking paragraph (2), and by redesig8 nating paragraph (3) as paragraph (2). 

9 (61) ADJUSTMENTS REQUIRED BY CHANGES IN

10 METHOD OF ACCOUNTING.—Section 481(b)(3) is 

11 amended by striking subparagraph (C). 

12 (62) EXEMPTION FROM TAX ON CORPORATIONS, 

13 CERTAIN TRUSTS, ETC.—Section 501 is amended by 

14 striking subsection (s). 

15 (63) REQUIREMENTS FOR EXEMPTION.— 

16 (A) Section 503(a)(1) is amended to read 

17 as follows: 

18 ‘‘(1) GENERAL RULE.—An organization de19 scribed in paragraph (17) or (18) of section 501(c), 

20 or described in section 401(a) and referred to in sec21 tion 4975(g) (2) or (3), shall not be exempt from 

22 taxation under section 501(a) if it has engaged in a 

23 prohibited transaction.’’. 

24 (B) Paragraph (2) of section 503(a) is 

25 amended by striking ‘‘described in section 


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1 501(c)(17) or (18) or paragraph (a)(1)(B)’’ and 

2 inserting ‘‘described in paragraph (1)’’. 

3 (C) Subsection (c) of section 503 is 

4 amended by striking ‘‘described in section 

5 501(c)(17) or (18) or subsection (a)(1)(B)’’ and 

6 inserting ‘‘described in subsection (a)(1)’’. 

7 (64) ACCUMULATED TAXABLE INCOME.—Para8 graph (1) of section 535(b) and paragraph (1) of 

9 section 545(b) are each amended by striking ‘‘sec10 tion 531’’ and all that follows and inserting ‘‘section 

11 531 or the personal holding company tax imposed by 

12 section 541.’’. 

13 (65) DEFINITION OF PROPERTY.—Subsection 

14 (b) of section 614 is amended— 

15 (A) by striking paragraphs (3)(C) and (5), 

16 and 

17 (B) in paragraph (4), by striking ‘‘which18 ever of the following years is later: The first 

19 taxable year beginning after December 31, 

20 1963, or’’. 

21 (66) AMOUNTS RECEIVED BY SURVIVING ANNU22 ITANT UNDER JOINT AND SURVIVOR ANNUITY CON23 TRACT.—Subparagraph (A) of section 691(d)(1) is 

24 amended by striking ‘‘after December 31, 1953, 

25 and’’. 


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1 (67) INCOME TAXES OF MEMBERS OF ARMED

2 FORCES ON DEATH.—Section 692(a)(1) is amended 

3 by striking ‘‘after June 24, 1950’’. 

4 (68) SPECIAL RULES FOR COMPUTING RE5 SERVES.—Paragraph (7) of section 807(e) is amend6 ed by striking subparagraph (B) and redesignating 

7 subparagraph (C) as subparagraph (B). 

8 (69) INSURANCE COMPANY TAXABLE INCOME.— 

9 (A) Section 832(e) is amended by striking 

10 ‘‘of taxable years beginning after December 31, 

11 1966,’’. 

12 (B) Section 832(e)(6) is amended by strik13 ing ‘‘In the case of any taxable year beginning 

14 after December 31, 1970, the’’ and inserting 

15 ‘‘The’’. 

16 (70) CAPITALIZATION OF CERTAIN POLICY AC17 QUISITION EXPENSES.—Section 848 is amended by 

18 striking subsection (j). 

19 (71) TAX ON NONRESIDENT ALIEN INDIVID20 UALS.—Subparagraph (B) of section 871(a)(1) is 

21 amended to read as follows: 

22 ‘‘(B) gains described in subsection (b) or 

23 (c) of section 631,’’. 


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1 (72) LIMITATION ON CREDIT.—Paragraph (2) 

2 of section 904(d) is amended by striking subpara3 graph (J). 

4 (73) FOREIGN EARNED INCOME.—Clause (i) of 

5 section 911(b)(2)(D) is amended to read as follows: 

6 ‘‘(i) IN GENERAL.—The exclusion 

7 amount for any calendar year is $80,000.’’. 

8 (74) BASIS OF PROPERTY ACQUIRED FROM DE9 CEDENT.— 

10 (A) Section 1014(a)(2) is amended to read 

11 as follows: 

12 ‘‘(2) in the case of an election under section 

13 2032, its value at the applicable valuation date pre14 scribed by such section,’’. 

15 (B) Section 1014(b) is amended by strik16 ing paragraphs (7) and (8). 

17 (75) ADJUSTED BASIS.—Section 1016(a) is 

18 amended by striking paragraph (12). 

19 (76) PROPERTY ON WHICH LESSEE HAS MADE

20 IMPROVEMENTS.—Section 1019 is amended by strik21 ing the last sentence. 

22 (77) INVOLUNTARY CONVERSION.—Section 

23 1033 is amended by striking subsection (j) and by 

24 redesignating subsections (k) and (l) as subsections 

25 (j) and (k), respectively. 


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1 (78) PROPERTY ACQUIRED DURING AFFILI2 ATION.—Section 1051 is hereby repealed, and the 

3 table of sections for part IV of subchapter O of 

4 chapter 1 is amended by striking the item relating 

5 to section 1051. 

6 (79) CAPITAL GAINS AND LOSSES.—Section 

7 1222 is amended by striking the last sentence. 

8 (80) HOLDING PERIOD OF PROPERTY.— 

9 (A) Paragraph (1) of section 1223 is 

10 amended by striking ‘‘after March 1, 1954,’’. 

11 (B) Paragraph (4) of section 1223 is 

12 amended by striking ‘‘ ‘(or under so much of 

13 section 1052(c) as refers to section 113(a)(23) 

14 of the Internal Revenue Code of 1939)’ ’’. 

15 (C) Paragraphs (6) and (8) of section 

16 1223 are repealed. 

17 (81) PROPERTY USED IN THE TRADE OR BUSI18 NESS AND INVOLUNTARY CONVERSIONS.—Subpara19 graph (A) of section 1231(c)(2) is amended by strik20 ing ‘‘beginning after December 31, 1981’’. 

21 (82) SALE OR EXCHANGE OF PATENTS.—Sec22 tion 1235 is amended— 

23 (A) by striking subsection (c) and by re24 designating subsections (d) and (e) as sub25 sections (c) and (d), respectively, and 


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1 (B) by striking ‘‘subsection (d)’’ in sub2 section (b)(2)(B) and inserting ‘‘subsection 

3 (c)’’. 

4 (83) DEALERS IN SECURITIES.—Subsection (b) 

5 of section 1236 is amended by striking ‘‘after No6 vember 19, 1951,’’. 

7 (84) SALE OF PATENTS.—Subsection (a) of sec8 tion 1249 is amended by striking ‘‘after December 

9 31, 1962,’’. 

10 (85) GAIN FROM DISPOSITION OF FARMLAND.— 

11 Paragraph (1) of section 1252(a) is amended— 

12 (A) by striking ‘‘after December 31, 1969’’ 

13 the first place it appears, and 

14 (B) by striking ‘‘after December 31, 

15 1969,’’ in subparagraph (A). 

16 (86) TREATMENT OF AMOUNTS RECEIVED ON

17 RETIREMENT OR SALE OR EXCHANGE OF DEBT IN18 STRUMENTS.—Subsection (c) of section 1271 is 

19 amended to read as follows: 

20 ‘‘(c) SPECIAL RULE FOR CERTAIN OBLIGATIONS

21 WITH RESPECT TO WHICH ORIGINAL ISSUE DISCOUNT

22 NOT CURRENTLY INCLUDIBLE.— 

23 ‘‘(1) IN GENERAL.—On the sale or exchange of 

24 debt instruments issued by a government or political 

25 subdivision thereof after December 31, 1954, and 


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1 before July 2, 1982, or by a corporation after De2 cember 31, 1954, and on or before May 27, 1969, 

3 any gain realized which does not exceed— 

4 ‘‘(A) an amount equal to the original issue 

5 discount, or 

6 ‘‘(B) if at the time of original issue there 

7 was no intention to call the debt instrument be8 fore maturity, an amount which bears the same 

9 ratio to the original issue discount as the num10 ber of complete months that the debt instru11 ment was held by the taxpayer bears to the 

12 number of complete months from the date of 

13 original issue to the date of maturity, shall be 

14 considered as ordinary income. 

15 ‘‘(2) SUBSECTION (a)(2)(A) NOT TO APPLY.— 

16 Subsection (a)(2)(A) shall not apply to any debt in17 strument referred to in paragraph (1) of this sub18 section. 

19 ‘‘(3) CROSS REFERENCE.—For current inclu20 sion of original issue discount, see section 1272.’’. 

21 (87) AMOUNT AND METHOD OF ADJUST22 MENT.—Section 1314 is amended by striking sub23 section (d) and by redesignating subsection (e) as 

24 subsection (d). 


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1 (88) ELECTION; REVOCATION; TERMINATION.— 

2 Clause (iii) of section 1362(d)(3)(A) is amended by 

3 striking ‘‘unless’’ and all that follows and inserting 

4 ‘‘unless the corporation was an S corporation for 

5 such taxable year.’’. 

6 (89) OLD-AGE, SURVIVORS, AND DISABILITY IN7 SURANCE.—Subsection (a) of section 1401 is amend8 ed by striking ‘‘the following percent’’ and all that 

9 follows and inserting ‘‘12.4 percent of the amount of 

10 the self-employment income for such taxable year.’’. 

11 (90) HOSPITAL INSURANCE.—Paragraph (1) of 

12 section 1401(b) is amended by striking: ‘‘the fol13 lowing percent’’ and all that follows and inserting 

14 ‘‘2.9 percent of the amount of the self-employment 

15 income for such taxable year.’’. 

16 (91) MINISTERS, MEMBERS OF RELIGIOUS OR17 DERS, AND CHRISTIAN SCIENCE PRACTITIONERS.— 

18 Paragraph (3) of section 1402(e) is amended— 

19 (A) by striking ‘‘whichever of the following 

20 dates is later: (A)’’, and 

21 (B) by striking ‘‘;or (B)’ ’’ and all that fol22 lows and inserting a period. 

23 (92) WITHHOLDING OF TAX ON NONRESIDENT

24 ALIENS.—The first sentence of subsection (b) of sec25 tion 1441 and the first sentence of paragraph (5) of 


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1 section 1441(c) are each amended by striking ‘‘gains 

2 subject to tax’’ and all that follows through ‘‘Octo3 ber 4, 1966’’ and inserting ‘‘and gains subject to tax 

4 under section 871(a)(1)(D)’’. 

5 (93) AFFILIATED GROUP DEFINED.—Subpara6 graph (A) of section 1504(a)(3) is amended by strik7 ing ‘‘for a taxable year which includes any period 

8 after December 31, 1984’’ in clause (i) and by strik9 ing ‘‘in a taxable year beginning after December 31, 

10 1984’’ in clause (ii). 

11 (94) DISALLOWANCE OF THE BENEFITS OF

12 THE GRADUATED CORPORATE RATES AND ACCUMU13 LATED EARNINGS CREDIT.— 

14 (A) Subsection (a) of section 1551 is 

15 amended— 

16 (i) by striking paragraph (1) and by 

17 redesignating paragraphs (2) and (3) as 

18 paragraphs (1) and (2), respectively, and 

19 (ii) by striking ‘‘after June 12, 1963,’’ 

20 each place it appears. 

21 (B) Section 1551(b) is amended— 

22 (i) by striking ‘‘or (2)’’ in paragraph 

23 (1), and 

24 (ii) by striking ‘‘(a)(3)’’ in paragraph 

25 (2) and inserting ‘‘(a)(2)’’. 


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1 (95) CREDIT FOR STATE DEATH TAXES.— 

2 (A)(i) Part II of subchapter A of chapter 

3 11 is amended by striking section 2011 (and by 

4 striking the item relating to such section in the 

5 table of sections for such subpart). 

6 (ii) Section 2106(a)(4) is amended by 

7 striking ‘‘section 2011(a)’’ and inserting 

8 ‘‘2058(a)’’. 

9 (B)(i) Subchapter A of chapter 13 is 

10 amended by striking section 2604 (and by strik11 ing the item relating to such section in the 

12 table of sections for such subpart). 

13 (ii) Clause (ii) of section 164(b)(4)(A) is 

14 amended by inserting ‘‘(as in effect before its 

15 repeal)’’ after ‘‘section 2604’’. 

16 (iii) Section 2654(a)(1) is amended by 

17 striking ‘‘(computed without regard to section 

18 2604)’’. 

19 (96) GROSS ESTATE.—Subsection (c) of section 

20 2031 is amended by striking paragraph (3) and by 

21 amending paragraph (1)(B) to read as follows: 

22 ‘‘(II) $500,000.’’. 

23 (97)(A) Part IV of subchapter A of chapter 11 

24 is amended by striking section 2057 (and by striking 


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1 the item relating to such section in the table of sec2 tions for such subpart). 

3 (B) Paragraph (10) of section 2031(c) is 

4 amended by inserting ‘‘(as in effect before its re5 peal)’’ immediately before the period at the end 

6 thereof. 

7 (98) PROPERTY WITHIN THE UNITED

8 STATES.—Subsection (c) of section 2104 is amended 

9 by striking ‘‘With respect to estates of decedents 

10 dying after December 31, 1969, deposits’’ and in11 serting ‘‘Deposits’’. 

12 (99) FICA TAXES.— 

13 (A) Subsection (a) of section 3101 is 

14 amended by striking ‘‘the following percent15 ages’’ and all that follows and inserting ‘‘6.2 

16 percent of the wages (as defined in section 

17 3121(a)) received by the individual with respect 

18 to employment (as defined in section 3121(b))’’. 

19 (B)(i) Subsection (a) of section 3111 is 

20 amended by striking ‘‘the following percent21 ages’’ and all that follows and inserting ‘‘6.2 

22 percent of the wages (as defined in section 

23 3121(a)) paid by the employer with respect to 

24 employment (as defined in section 3121(b)).’’. 


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1 (ii) Subsection (b) of section 3111 is 

2 amended by striking ‘‘the following percent3 ages’’ and all that follows and inserting ‘‘1.45 

4 percent of the wages (as defined in section 

5 3121(a)) paid by the employer with respect to 

6 employment (as defined in section 3121(b)).’’. 

7 (C)(i) Section 3121(b) is amended by 

8 striking paragraph (17). 

9 (ii) Section 210(a) of the Social Security 

10 Act is amended by striking paragraph (17). 

11 (100) RAILROAD RETIREMENT.— 

12 (A) Subsection (b) of section 3201 is 

13 amended to read as follows: 

14 ‘‘(b) TIER 2 TAX.—In addition to other taxes, there 

15 is hereby imposed on the income of each employee a tax 

16 equal to the percentage determined under section 3241 for 

17 any calendar year of the compensation received during 

18 such calendar year by such employee for services rendered 

19 by such employee.’’. 

20 (B) Subsection (b) of section 3211 is 

21 amended to read as follows: 

22 ‘‘(b) TIER 2 TAX.—In addition to other taxes, there 

23 is hereby imposed on the income of each employee rep24 resentative a tax equal to the percentage determined under 

25 section 3241 for any calendar year of the compensation 


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1 received during such calendar year by such employee rep2 resentative for services rendered by such employee rep3 resentative.’’. 

4 (C) Subsection (b) of section 3221 is 

5 amended to read as follows: 

6 ‘‘(b) TIER 2 TAX.—In addition to other taxes, there 

7 is hereby imposed on every employer an excise tax, with 

8 respect to having individuals in his employ, equal to the 

9 percentage determined under section 3241 for any cal10 endar year of the compensation paid during such calendar 

11 year by such employer for services rendered to such em12 ployer.’’. 

13 (D) Subsection (b) of section 3231 is 

14 amended— 

15 (i) by striking ‘‘compensation; except’’ 

16 and all that follows in the first sentence 

17 and inserting ‘‘compensation.’’, and 

18 (ii) by striking the second sentence. 

19 (101) CREDITS AGAINST FEDERAL UNEMPLOY20 MENT TAX.— 

21 (A) Paragraph (4) of section 3302(f) is 

22 amended— 

23 (i) by striking ‘‘subsection—’’ and all 

24 that follows through ‘‘(A) IN GENERAL.— 

25 The’’ and inserting ‘‘subsection, the’’, 


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1 (ii) by striking subparagraph (B), 

2 (iii) by redesignating clauses (i) and 

3 (ii) as subparagraphs (A) and (B), respec4 tively, and 

5 (iv) by moving the text of such sub6 paragraphs (as so redesignated) 2 ems to 

7 the left. 

8 (B) Paragraph (5) of section 3302(f) is 

9 amended by striking subparagraph (D) and by 

10 redesignating subparagraph (E) as subpara11 graph (D). 

12 (102) DOMESTIC SERVICE EMPLOYMENT

13 TAXES.—Section 3510(b) is amended by striking 

14 paragraph (4). 

15 (103) LUXURY PASSENGER AUTOMOBILES.— 

16 (A) Chapter 31 is amended by striking 

17 subchapter A (and by striking the item relating 

18 to such subchapter in the table of subchapters 

19 for such chapter). 

20 (B)(i) Section 4221 is amended— 

21 (I) in subsections (a) and (d)(1), by 

22 striking ‘‘subchapter A or’’ and inserting 

23 ‘‘subchapter’’, 

24 (II) in subsection (a), by striking ‘‘In 

25 the case of taxes imposed by subchapter A 


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1 of chapter 31, paragraphs (1), (3), (4), 

2 and (5) shall not apply.’’, and 

3 (III) in subsection (c), by striking 

4 ‘‘4001(c), 4001(d), or’’. 

5 (ii) Section 4222 is amended by striking 

6 ‘‘4001(c), 4001(d),’’. 

7 (iii) Section 4293 is amended by striking 

8 ‘‘subchapter A of chapter 31,’’. 

9 (104) TRANSPORTATION BY AIR.—Section 

10 4261(e) is amended— 

11 (A) in paragraph (1), by striking subpara12 graph (C), and 

13 (B) by striking paragraph (5). 

14 (105) TAXES ON FAILURE TO DISTRIBUTE IN15 COME.— 

16 (A) Subsection (g) of section 4942 is 

17 amended by striking ‘‘For all taxable years be18 ginning on or after January 1, 1975, subject’’ 

19 in paragraph (2)(A) and inserting ‘‘Subject’’. 

20 (B) Section 4942(i)(2) is amended by 

21 striking ‘‘beginning after December 31, 1969, 

22 and’’. 

23 (106) TAXES ON TAXABLE EXPENDITURES.— 

24 Section 4945(f) is amended by striking ‘‘(excluding 


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1 therefrom any preceding taxable year which begins 

2 before January 1, 1970)’’. 

3 (107) DEFINITIONS AND SPECIAL RULES.—Sec4 tion 4682(h) is amended— 

5 (A) by striking paragraph (1) and redesig6 nating paragraphs (2), (3), and (4) as para7 graphs (1), (2), and (3), respectively, and 

8 (B) in paragraph (1) (as so redesig9 nated)— 

10 (i) by striking the heading and insert11 ing ‘‘IN GENERAL’’, and 

12 (ii) by striking ‘‘after 1991’’ in sub13 paragraph (C). 

14 (108) RETURNS.—Subsection (a) of section 

15 6039D is amended by striking ‘‘beginning after De16 cember 31, 1984,’’. 

17 (109) INFORMATION RETURNS.—Subsection (c) 

18 of section 6060 is amended by striking ‘‘ ‘year’ ’’ and 

19 all that follows and inserting ‘‘year.’’. 

20 (110) COLLECTION.—Section 6302 is amend21 ed— 

22 (A) in subsection (e)(2), by striking ‘‘im23 posed by’’ and all that follows through ‘‘with re24 spect to’’ and inserting ‘‘imposed by sections 

25 4251, 4261, or 4271 with respect to’’, 


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1 (B) by striking the last sentence of sub2 section (f)(1), and 

3 (C) in subsection (h)— 

4 (i) by striking paragraph (2) and re5 designating paragraphs (3) and (4) as 

6 paragraphs (2) and (3), respectively, and 

7 (ii) by amending paragraph (3) (as so 

8 redesignated) to read as follows: 

9 ‘‘(3) COORDINATION WITH OTHER ELECTRONIC

10 FUND TRANSFER REQUIREMENTS.—Under regula11 tions, any tax required to be paid by electronic fund 

12 transfer under section 5061(e) or 5703(b) shall be 

13 paid in such a manner as to ensure that the require14 ments of the second sentence of paragraph (1)(A) of 

15 this subsection are satisfied.’’. 

16 (111) ABATEMENTS.—Section 6404(f) is 

17 amended by striking paragraph (3). 

18 (112) 2008 RECOVERY REBATE FOR INDIVID19 UALS.— 

20 (A) Subchapter B of chapter 65 is amend21 ed by striking section 6428 (and by striking the 

22 item relating to such section in the table of sec23 tions for such subchapter). 

24 (B) Subparagraph (A) of section 

25 6211(b)(4) is amended by striking ‘‘6428,’’. 


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1 (C) Paragraph (2) of section 6213(g), as 

2 amended by section 214(a)(2) of this Act and 

3 paragraphs (4) and (5)(C) of this subsection, is 

4 amended by striking subparagraph (Q), by re5 designating subparagraph (O) as subparagraph 

6 (N), by inserting ‘‘and’’ at the end of subpara7 graph (M), and by striking the comma at the 

8 end of subparagraph (N) (as so redesignated) 

9 and inserting a period. 

10 (D) Paragraph (2) of section 1324(b) of 

11 title 31, United States Code, is amended by 

12 striking ‘‘6428, or 6431,’’ and inserting ‘‘or 

13 6431’’. 

14 (113) ADVANCE PAYMENT OF PORTION OF IN15 CREASED CHILD CREDIT FOR 2003.—Subchapter B 

16 of chapter 65 is amended by striking section 6429 

17 (and by striking the item relating to such section in 

18 the table of sections for such subchapter). 

19 (114) FAILURE BY CORPORATION TO PAY ESTI20 MATED INCOME TAX.—Clause (i) of section 

21 6655(g)(4)(A) is amended by striking ‘‘(or the cor22 responding provisions of prior law)’’. 

23 (115) RETIREMENT.—Section 7447(i)(3)(B)(ii) 

24 is amended by striking ‘‘at 4 percent per annum to 


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1 December 31, 1947, and 3 percent per annum there2 after’’, and inserting ‘‘at 3 percent per annum’’. 

3 (116) ANNUITIES TO SURVIVING SPOUSES AND

4 DEPENDENT CHILDREN OF JUDGES.— 

5 (A) Paragraph (2) of section 7448(a) is 

6 amended— 

7 (i) by striking ‘‘or under section 1106 

8 of the Internal Revenue Code of 1939’’, 

9 and 

10 (ii) by striking ‘‘or pursuant to sec11 tion 1106(d) of the Internal Revenue Code 

12 of 1939’’. 

13 (B) Subsection (g) of section 7448 is 

14 amended by striking ‘‘or other than pursuant to 

15 section 1106 of the Internal Revenue Code of 

16 1939’’. 

17 (C) Subsections (g), (j)(1), and (j)(2) of 

18 section 7448 are each amended by striking ‘‘at 

19 4 percent per annum to December 31, 1947, 

20 and 3 percent per annum thereafter’’ and in21 serting ‘‘at 3 percent per annum’’. 

22 (117) MERCHANT MARINE CAPITAL CONSTRUC23 TION FUNDS.—Paragraph (4) of section 7518(g) is 

24 amended by striking ‘‘any nonqualified withdrawal’’ 

25 and all that follows through ‘‘ ‘shall be determined’’ 


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1 and inserting ‘‘any nonqualified withdrawal shall be 

2 determined’’. 

3 (118) VALUATION TABLES.— 

4 (A) Subsection (c) of section 7520 is 

5 amended by striking paragraph (2) and redesig6 nating paragraph (3) as paragraph (2). 

7 (B) Paragraph (2) of section 7520(c) (as 

8 redesignated by subparagraph (A)) is amend9 ed— 

10 (i) by striking ‘‘Not later than Decem11 ber 31, 1989, the’’ and inserting ‘‘The’’, 

12 and 

13 (ii) by striking ‘‘thereafter’’ in the last 

14 sentence thereof. 

15 (119) DEFINITION OF EMPLOYEE.—Section 

16 7701(a)(20) is amended by striking ‘‘chapter 21’’ 

17 and all that follows and inserting ‘‘chapter 21.’’. 

18 (b) EFFECTIVE DATE.— 

19 (1) GENERAL RULE.—Except as otherwise pro20 vided in subsection (a) or paragraph (2) of this sub21 section, the amendments made by this section shall 

22 take effect on the date of enactment of this Act. 

23 (2) SAVINGS PROVISION.—If— 


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1 (A) any provision amended or repealed by 

2 the amendments made by this section applied 

3 to— 

4 (i) any transaction occurring before 

5 the date of the enactment of this Act, 

6 (ii) any property acquired before such 

7 date of enactment, or 

8 (iii) any item of income, loss, deduc9 tion, or credit taken into account before 

10 such date of enactment, and 

11 (B) the treatment of such transaction, 

12 property, or item under such provision would 

13 (without regard to the amendments or repeals 

14 made by this section) affect the liability for tax 

15 for periods ending after date of enactment, 

16 nothing in the amendments or repeals made by 

17 this section shall be construed to affect the 

18 treatment of such transaction, property, or item 

19 for purposes of determining liability for tax for 

20 periods ending after such date of enactment. 


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1 TITLE III—JOINT COMMITTEE 

2 ON TAXATION 

3 SEC. 301. INCREASED REFUND AND CREDIT THRESHOLD 

4 FOR JOINT COMMITTEE ON TAXATION RE5 VIEW OF C CORPORATION RETURN. 

6 (a) IN GENERAL.—Subsections (a) and (b) of section 

7 6405 are each amended by inserting ‘‘($5,000,000 in the 

8 case of a C corporation)’’ after ‘‘$2,000,000’’. 

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

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

11 of this Act, except that such amendment shall not apply 

12 with respect to any refund or credit with respect to a re13 port that has been made before such date under section 

14 6405 of the Internal Revenue Code of 1986. 

15 TITLE IV—BUDGETARY EFFECTS 

16 SEC. 401. BUDGETARY EFFECTS. 

17 (a) PAYGO SCORECARD.—The budgetary effects of 

18 this Act shall not be entered on either PAYGO scorecard 

19 maintained pursuant to section 4(d) of the Statutory Pay20 As-You-Go Act of 2010. 

21 (b) SENATE PAYGO SCORECARD.—The budgetary ef22 fects of this Act shall not be entered on any PAYGO score23 card maintained for purposes of section 201 of S. Con. 

24 Res. 21 (110th Congress). 


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1 DIVISION B—ACHIEVING A BET2 TER LIFE EXPERIENCE ACT 

3 OF 2014 

4 SEC. 1. SHORT TITLE; ETC. 

5 (a) SHORT TITLE.—This division may be cited as the 

6 ‘‘Achieving a Better Life Experience Act of 2014’’ or the 

7 ‘‘ABLE Act of 2014’’. 

8 (b) AMENDMENT OF 1986 CODE.—Except as other9 wise expressly provided, whenever in this Act an amend10 ment or repeal is expressed in terms of an amendment 

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

12 shall be considered to be made to a section or other provi13 sion of the Internal Revenue Code of 1986. 

14 TITLE I—QUALIFIED ABLE 

15 PROGRAMS 

16 SEC. 101. PURPOSES. 

17 The purposes of this title are as follows: 

18 (1) To encourage and assist individuals and 

19 families in saving private funds for the purpose of 

20 supporting individuals with disabilities to maintain 

21 health, independence, and quality of life. 

22 (2) To provide secure funding for disability-re23 lated expenses on behalf of designated beneficiaries 

24 with disabilities that will supplement, but not sup25 plant, benefits provided through private insurance, 


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1 the Medicaid program under title XIX of the Social 

2 Security Act, the supplemental security income pro3 gram under title XVI of such Act, the beneficiary’s 

4 employment, and other sources. 

5 SEC. 102. QUALIFIED ABLE PROGRAMS. 

6 (a) IN GENERAL.—Subchapter F of chapter 1 is 

7 amended by inserting after section 529 the following new 

8 section: 

9 ‘‘SEC. 529A. QUALIFIED ABLE PROGRAMS. 

10 ‘‘(a) GENERAL RULE.—A qualified ABLE program 

11 shall be exempt from taxation under this subtitle. Not12 withstanding the preceding sentence, such program shall 

13 be subject to the taxes imposed by section 511 (relating 

14 to imposition of tax on unrelated business income of chari15 table organizations). 

16 ‘‘(b) QUALIFIED ABLE PROGRAM.—For purposes of 

17 this section— 

18 ‘‘(1) IN GENERAL.—The term ‘qualified ABLE 

19 program’ means a program established and main20 tained by a State, or agency or instrumentality 

21 thereof— 

22 ‘‘(A) under which a person may make con23 tributions for a taxable year, for the benefit of 

24 an individual who is an eligible individual for 

25 such taxable year, to an ABLE account which 


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1 is established for the purpose of meeting the 

2 qualified disability expenses of the designated 

3 beneficiary of the account, 

4 ‘‘(B) which limits a designated beneficiary 

5 to 1 ABLE account for purposes of this section, 

6 ‘‘(C) which allows for the establishment of 

7 an ABLE account only for a designated bene8 ficiary who is a resident of such State or a resi9 dent of a contracting State, and 

10 ‘‘(D) which meets the other requirements 

11 of this section. 

12 ‘‘(2) CASH CONTRIBUTIONS.—A program shall 

13 not be treated as a qualified ABLE program unless 

14 it provides that no contribution will be accepted— 

15 ‘‘(A) unless it is in cash, or 

16 ‘‘(B) except in the case of contributions 

17 under subsection (c)(1)(C), if such contribution 

18 to an ABLE account would result in aggregate 

19 contributions from all contributors to the 

20 ABLE account for the taxable year exceeding 

21 the amount in effect under section 2503(b) for 

22 the calendar year in which the taxable year be23 gins. 


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1 For purposes of this paragraph, rules similar to the 

2 rules of section 408(d)(4) (determined without re3 gard to subparagraph (B) thereof) shall apply. 

4 ‘‘(3) SEPARATE ACCOUNTING.—A program shall 

5 not be treated as a qualified ABLE program unless 

6 it provides separate accounting for each designated 

7 beneficiary. 

8 ‘‘(4) LIMITED INVESTMENT DIRECTION.—A 

9 program shall not be treated as a qualified ABLE 

10 program unless it provides that any designated bene11 ficiary under such program may, directly or indi12 rectly, direct the investment of any contributions to 

13 the program (or any earnings thereon) no more than 

14 2 times in any calendar year. 

15 ‘‘(5) NO PLEDGING OF INTEREST AS SECU16 RITY.—A program shall not be treated as a qualified 

17 ABLE program if it allows any interest in the pro18 gram or any portion thereof to be used as security 

19 for a loan. 

20 ‘‘(6) PROHIBITION ON EXCESS CONTRIBU21 TIONS.—A program shall not be treated as a quali22 fied ABLE program unless it provides adequate 

23 safeguards to prevent aggregate contributions on be24 half of a designated beneficiary in excess of the limit 

25 established by the State under section 529(b)(6). 


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1 For purposes of the preceding sentence, aggregate 

2 contributions include contributions under any prior 

3 qualified ABLE program of any State or agency or 

4 instrumentality thereof. 

5 ‘‘(c) TAX TREATMENT.— 

6 ‘‘(1) DISTRIBUTIONS.— 

7 ‘‘(A) IN GENERAL.—Any distribution 

8 under a qualified ABLE program shall be in9 cludible in the gross income of the distributee 

10 in the manner as provided under section 72 to 

11 the extent not excluded from gross income 

12 under any other provision of this chapter. 

13 ‘‘(B) DISTRIBUTIONS FOR QUALIFIED DIS14 ABILITY EXPENSES.—For purposes of this 

15 paragraph, if distributions from a qualified 

16 ABLE program— 

17 ‘‘(i) do not exceed the qualified dis18 ability expenses of the designated bene19 ficiary, no amount shall be includible in 

20 gross income, and 

21 ‘‘(ii) in any other case, the amount 

22 otherwise includible in gross income shall 

23 be reduced by an amount which bears the 

24 same ratio to such amount as such ex25 penses bear to such distributions. 


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1 ‘‘(C) CHANGE IN DESIGNATED BENE2 FICIARIES OR PROGRAMS.— 

3 ‘‘(i) ROLLOVERS FROM ABLE AC4 COUNTS.—Subparagraph (A) shall not 

5 apply to any amount paid or distributed 

6 from an ABLE account to the extent that 

7 the amount received is paid, not later than 

8 the 60th day after the date of such pay9 ment or distribution, into another ABLE 

10 account for the benefit of the same des11 ignated beneficiary or an eligible individual 

12 who is a family member of the designated 

13 beneficiary. 

14 ‘‘(ii) CHANGE IN DESIGNATED BENE15 FICIARIES.—Any change in the designated 

16 beneficiary of an interest in a qualified 

17 ABLE program during a taxable year shall 

18 not be treated as a distribution for pur19 poses of subparagraph (A) if the new bene20 ficiary is an eligible individual for such 

21 taxable year and a member of the family of 

22 the former beneficiary. 

23 ‘‘(iii) LIMITATION ON CERTAIN ROLL24 OVERS.—Clause (i) shall not apply to any 

25 transfer if such transfer occurs within 12 


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1 months from the date of a previous trans2 fer to any qualified ABLE program for the 

3 benefit of the designated beneficiary. 

4 ‘‘(D) OPERATING RULES.—For purposes of 

5 applying section 72— 

6 ‘‘(i) except to the extent provided by 

7 the Secretary, all distributions during a 

8 taxable year shall be treated as one dis9 tribution, and 

10 ‘‘(ii) except to the extent provided by 

11 the Secretary, the value of the contract, in12 come on the contract, and investment in 

13 the contract shall be computed as of the 

14 close of the calendar year in which the tax15 able year begins. 

16 ‘‘(2) GIFT TAX RULES.—For purposes of chap17 ters 12 and 13— 

18 ‘‘(A) CONTRIBUTIONS.—Any contribution 

19 to a qualified ABLE program on behalf of any 

20 designated beneficiary— 

21 ‘‘(i) shall be treated as a completed 

22 gift to such designated beneficiary which is 

23 not a future interest in property, and 

24 ‘‘(ii) shall not be treated as a qualified 

25 transfer under section 2503(e). 


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1 ‘‘(B) TREATMENT OF DISTRIBUTIONS.—In 

2 no event shall a distribution from an ABLE ac3 count to such account’s designated beneficiary 

4 be treated as a taxable gift. 

5 ‘‘(C) TREATMENT OF TRANSFER TO NEW

6 DESIGNATED BENEFICIARY.—The taxes im7 posed by chapters 12 and 13 shall not apply to 

8 a transfer by reason of a change in the des9 ignated beneficiary under subsection (c)(1)(C). 

10 ‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT

11 USED FOR DISABILITY EXPENSES.— 

12 ‘‘(A) IN GENERAL.—The tax imposed by 

13 this chapter for any taxable year on any tax14 payer who receives a distribution from a quali15 fied ABLE program which is includible in gross 

16 income shall be increased by 10 percent of the 

17 amount which is so includible. 

18 ‘‘(B) EXCEPTION.—Subparagraph (A) 

19 shall not apply if the payment or distribution is 

20 made to a beneficiary (or to the estate of the 

21 designated beneficiary) on or after the death of 

22 the designated beneficiary. 

23 ‘‘(C) CONTRIBUTIONS RETURNED BEFORE

24 CERTAIN DATE.—Subparagraph (A) shall not 

25 apply to the distribution of any contribution 


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1 made during a taxable year on behalf of the 

2 designated beneficiary if— 

3 ‘‘(i) such distribution is received on or 

4 before the day prescribed by law (including 

5 extensions of time) for filing such des6 ignated beneficiary’s return for such tax7 able year, and 

8 ‘‘(ii) such distribution is accompanied 

9 by the amount of net income attributable 

10 to such excess contribution. 

11 Any net income described in clause (ii) shall be 

12 included in gross income for the taxable year in 

13 which such excess contribution was made. 

14 ‘‘(4) LOSS OF ABLE ACCOUNT TREATMENT.—If 

15 an ABLE account is established for a designated 

16 beneficiary, no account subsequently established for 

17 such beneficiary shall be treated as an ABLE ac18 count. The preceding sentence shall not apply in the 

19 case of an account established for purposes of a roll20 over described in paragraph (1)(C)(i) of this section 

21 if the transferor account is closed as of the end of 

22 the 60th day referred to in paragraph (1)(C)(i). 

23 ‘‘(d) REPORTS.— 

24 ‘‘(1) IN GENERAL.—Each officer or employee 

25 having control of the qualified ABLE program or 


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1 their designee shall make such reports regarding 

2 such program to the Secretary and to designated 

3 beneficiaries with respect to contributions, distribu4 tions, the return of excess contributions, and such 

5 other matters as the Secretary may require. 

6 ‘‘(2) CERTAIN AGGREGATED INFORMATION.— 

7 For research purposes, the Secretary shall make 

8 available to the public reports containing aggregate 

9 information, by diagnosis and other relevant charac10 teristics, on contributions and distributions from the 

11 qualified ABLE program. In carrying out the pre12 ceding sentence an item may not be made available 

13 to the public if such item can be associated with, or 

14 otherwise identify, directly or indirectly, a particular 

15 individual. 

16 ‘‘(3) NOTICE OF ESTABLISHMENT OF ABLE AC17 COUNT.—A qualified ABLE program shall submit a 

18 notice to the Secretary upon the establishment of an 

19 ABLE account. Such notice shall contain the name 

20 and State of residence of the designated beneficiary 

21 and such other information as the Secretary may re22 quire. 

23 ‘‘(4) ELECTRONIC DISTRIBUTION STATE24 MENTS.—For purposes of section 4 of the Achieving 

25 a Better Life Experience Act of 2014, States shall 


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1 submit electronically on a monthly basis to the Com2 missioner of Social Security, in the manner specified 

3 by the Commissioner, statements on relevant dis4 tributions and account balances from all ABLE ac5 counts. 

6 ‘‘(5) REQUIREMENTS.—The reports and notices 

7 required by paragraphs (1), (2), and (3) shall be 

8 filed at such time and in such manner and furnished 

9 to such individuals at such time and in such manner 

10 as may be required by the Secretary. 

11 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 

12 For purposes of this section— 

13 ‘‘(1) ELIGIBLE INDIVIDUAL.—An individual is 

14 an eligible individual for a taxable year if during 

15 such taxable year— 

16 ‘‘(A) the individual is entitled to benefits 

17 based on blindness or disability under title II or 

18 XVI of the Social Security Act, and such blind19 ness or disability occurred before the date on 

20 which the individual attained age 26, or 

21 ‘‘(B) a disability certification with respect 

22 to such individual is filed with the Secretary for 

23 such taxable year. 

24 ‘‘(2) DISABILITY CERTIFICATION.— 


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1 ‘‘(A) IN GENERAL.—The term ‘disability 

2 certification’ means, with respect to an indi3 vidual, a certification to the satisfaction of the 

4 Secretary by the individual or the parent or 

5 guardian of the individual that— 

6 ‘‘(i) certifies that— 

7 ‘‘(I) the individual has a medi8 cally determinable physical or mental 

9 impairment, which results in marked 

10 and severe functional limitations, and 

11 which can be expected to result in 

12 death or which has lasted or can be 

13 expected to last for a continuous pe14 riod of not less than 12 months, or is 

15 blind (within the meaning of section 

16 1614(a)(2) of the Social Security 

17 Act), and 

18 ‘‘(II) such blindness or disability 

19 occurred before the date on which the 

20 individual attained age 26, and 

21 ‘‘(ii) includes a copy of the individ22 ual’s diagnosis relating to the individual’s 

23 relevant impairment or impairments, 

24 signed by a physician meeting the criteria 


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1 of section 1861(r)(1) of the Social Security 

2 Act. 

3 ‘‘(B) RESTRICTION ON USE OF CERTIFI4 CATION.—No inference may be drawn from a 

5 disability certification for purposes of estab6 lishing eligibility for benefits under title II, 

7 XVI, or XIX of the Social Security Act. 

8 ‘‘(3) DESIGNATED BENEFICIARY.—The term 

9 ‘designated beneficiary’ in connection with an ABLE 

10 account established under a qualified ABLE pro11 gram means the eligible individual who established 

12 an ABLE account and is the owner of such account. 

13 ‘‘(4) MEMBER OF FAMILY.—The term ‘member 

14 of the family’ means, with respect to any designated 

15 beneficiary, an individual who bears a relationship to 

16 such beneficiary which is described in subparagraph 

17 section 152(d)(2)(B). For purposes of the preceding 

18 sentence, a rule similar to the rule of section 

19 152(f)(1)(B) shall apply. 

20 ‘‘(5) QUALIFIED DISABILITY EXPENSES.—The 

21 term ‘qualified disability expenses’ means any ex22 penses related to the eligible individual’s blindness 

23 or disability which are made for the benefit of an eli24 gible individual who is the designated beneficiary, in25 cluding the following expenses: education, housing, 


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1 transportation, employment training and support, 

2 assistive technology and personal support services, 

3 health, prevention and wellness, financial manage4 ment and administrative services, legal fees, ex5 penses for oversight and monitoring, funeral and 

6 burial expenses, and other expenses, which are ap7 proved by the Secretary under regulations and con8 sistent with the purposes of this section. 

9 ‘‘(6) ABLE ACCOUNT.—The term ‘ABLE ac10 count’ means an account established by an eligible 

11 individual, owned by such eligible individual, and 

12 maintained under a qualified ABLE program. 

13 ‘‘(7) CONTRACTING STATE.—The term ‘con14 tracting State’ means a State without a qualified 

15 ABLE program which has entered into a contract 

16 with a State with a qualified ABLE program to pro17 vide residents of the contracting State access to a 

18 qualified ABLE program. 

19 ‘‘(f) TRANSFER TO STATE.—Subject to any out20 standing payments due for qualified disability expenses, 

21 upon the death of the designated beneficiary, all amounts 

22 remaining in the qualified ABLE account not in excess 

23 of the amount equal to the total medical assistance paid 

24 for the designated beneficiary after the establishment of 

25 the account, net of any premiums paid from the account 


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1 or paid by or on behalf of the beneficiary to a Medicaid 

2 Buy-In program under any State Medicaid plan estab3 lished under title XIX of the Social Security Act, shall 

4 be distributed to such State upon filing of a claim for pay5 ment by such State. For purposes of this paragraph, the 

6 State shall be a creditor of an ABLE account and not 

7 a beneficiary. Subsection (c)(3) shall not apply to a dis8 tribution under the preceding sentence. 

9 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

10 such regulations or other guidance as the Secretary deter11 mines necessary or appropriate to carry out the purposes 

12 of this section, including regulations— 

13 ‘‘(1) to enforce the 1 ABLE account per eligible 

14 individual limit, 

15 ‘‘(2) providing for the information required to 

16 be presented to open an ABLE account, 

17 ‘‘(3) to generally define qualified disability ex18 penses, 

19 ‘‘(4) developed in consultation with the Com20 missioner of Social Security, relating to disability 

21 certifications and determinations of disability, in22 cluding those conditions deemed to meet the require23 ments of subsection (e)(1)(B), 

24 ‘‘(5) to prevent fraud and abuse with respect to 

25 amounts claimed as qualified disability expenses, 


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1 ‘‘(6) under chapters 11, 12, and 13 of this title, 

2 and 

3 ‘‘(7) to allow for transfers from one ABLE ac4 count to another ABLE account.’’. 

5 (b) TAX ON EXCESS CONTRIBUTIONS.— 

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

7 4973 (relating to tax on excess contributions to cer8 tain tax-favored accounts and annuities) is amended 

9 by striking ‘‘or’’ at the end of paragraph (4), by in10 serting ‘‘or’’ at the end of paragraph (5), and by in11 serting after paragraph (5) the following new para12 graph: 

13 ‘‘(6) an ABLE account (within the meaning of 

14 section 529A),’’. 

15 (2) EXCESS CONTRIBUTION.—Section 4973 is 

16 amended by adding at the end the following new 

17 subsection: 

18 ‘‘(h) EXCESS CONTRIBUTIONS TO ABLE AC19 COUNT.—For purposes of this section— 

20 ‘‘(1) IN GENERAL.—In the case of an ABLE 

21 account (within the meaning of section 529A), the 

22 term ‘excess contributions’ means the amount by 

23 which the amount contributed for the taxable year to 

24 such account (other than contributions under section 


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1 529A(c)(1)(C)) exceeds the contribution limit under 

2 section 529A(b)(2)(B). 

3 ‘‘(2) SPECIAL RULE.—For purposes of this sub4 section, any contribution which is distributed out of 

5 the ABLE account in a distribution to which the 

6 last sentence of section 529A(b)(2) applies shall be 

7 treated as an amount not contributed.’’. 

8 (c) PENALTY FOR FAILURE TO FILE REPORTS.— 

9 Section 6693(a)(2) is amended by striking ‘‘and’’ at the 

10 end of subparagraph (D), by redesignating subparagraph 

11 (E) as subparagraph (F), and by inserting after subpara12 graph (D) the following: 

13 ‘‘(E) section 529A(d) (relating to qualified 

14 ABLE programs), and’’. 

15 (d) RECORDS.—Section 552a(a)(8)(B) of title 5, 

16 United States Code, is amended— 

17 (1) in clause (viii), by striking ‘‘or’’ at the end; 

18 (2) in clause (ix), by adding ‘‘or’’ at the end; 

19 and 

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

21 clause: 

22 ‘‘(x) matches performed pursuant to 

23 section 3(d)(4) of the Achieving a Better 

24 Life Experience Act of 2014;’’. 

25 (e) OTHER CONFORMING AMENDMENTS.— 


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1 (1) Section 26(b)(2) is amended by striking 

2 ‘‘and’’ at the end of subparagraph (W), by striking 

3 the period at the end of subparagraph (X) and in4 serting ‘‘, and’’, and by inserting after subparagraph 

5 (X) the following: 

6 ‘‘(Y) section 529A(c)(3)(A) (relating to ad7 ditional tax on ABLE account distributions not 

8 used for qualified disability expenses).’’. 

9 (2) Section 877A is amended— 

10 (A) in subsection (e)(2) by inserting ‘‘a 

11 qualified ABLE program (as defined in section 

12 529A),’’ after ‘‘529),’’, and 

13 (B) in subsection (g)(6) by inserting 

14 ‘‘529A(c)(3),’’ after ‘‘529(c)(6),’’. 

15 (3) Section 4965(c) is amended by striking 

16 ‘‘or’’ at the end of paragraph (6), by striking the pe17 riod at the end of paragraph (7) and inserting ‘‘, 

18 or’’, and by inserting after paragraph (7) the fol19 lowing new paragraph: 

20 ‘‘(8) a program described in section 529A.’’. 

21 (4) The heading for part VIII of subchapter F 

22 of chapter 1 is amended by striking ‘‘HIGHER EDU23 CATION’’ and inserting ‘‘CERTAIN’’. 


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1 (5) The item in the table of parts for sub2 chapter F of chapter 1 relating to part VIII is 

3 amended to read as follows: 

‘‘PART VIII. CERTAIN SAVINGS ENTITIES.’’. 

4 (6) The table of sections for part VIII of sub5 chapter F of chapter 1 is amended by inserting after 

6 the item relating to section 529 the following new 

7 item: 

‘‘Sec. 529A. Qualified ABLE programs.’’. 

8 (7) Paragraph (4) of section 1027(g) of the 

9 Consumer Financial Protection Act of 2010 (12 

10 U.S.C. 5517(g)(4)) is amended by inserting ‘‘, 

11 529A’’ after ‘‘529’’. 

12 (f) EFFECTIVE DATE.— 

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

14 this section shall apply to taxable years beginning 

15 after December 31, 2014. 

16 (2) REGULATIONS.—The Secretary of the 

17 Treasury (or the Secretary’s designee) shall promul18 gate the regulations or other guidance required 

19 under section 529A(g) of the Internal Revenue Code 

20 of 1986, as added by subsection (a), not later than 

21 6 months after the date of the enactment of this 

22 Act. 


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1 SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CER2 TAIN FEDERAL PROGRAMS. 

3 (a) ACCOUNT FUNDS DISREGARDED FOR PURPOSES

4 OF CERTAIN OTHER MEANS-TESTED FEDERAL PRO5 GRAMS.—Notwithstanding any other provision of Federal 

6 law that requires consideration of 1 or more financial cir7 cumstances of an individual, for the purpose of deter8 mining eligibility to receive, or the amount of, any assist9 ance or benefit authorized by such provision to be provided 

10 to or for the benefit of such individual, any amount (in11 cluding earnings thereon) in the ABLE account (within 

12 the meaning of section 529A of the Internal Revenue Code 

13 of 1986) of such individual, any contributions to the 

14 ABLE account of the individual, and any distribution for 

15 qualified disability expenses (as defined in subsection 

16 (e)(5) of such section) shall be disregarded for such pur17 pose with respect to any period during which such indi18 vidual maintains, makes contributions to, or receives dis19 tributions from such ABLE account, except that, in the 

20 case of the supplemental security income program under 

21 title XVI of the Social Security Act— 

22 (1) a distribution for housing expenses (within 

23 the meaning of such subsection) shall not be so dis24 regarded, and 

25 (2) in the case of such program, any amount 

26 (including such earnings) in such ABLE account 


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1 shall be considered a resource of the designated ben2 eficiary to the extent that such amount exceeds 

3 $100,000. 

4 (b) SUSPENSION OF SSI BENEFITS DURING PERI5 ODS OF EXCESSIVE ACCOUNT FUNDS.— 

6 (1) IN GENERAL.—The benefits of an individual 

7 under the supplemental security income program 

8 under title XVI of the Social Security Act shall not 

9 be terminated, but shall be suspended, by reason of 

10 excess resources of the individual attributable to an 

11 amount in the ABLE account (within the meaning 

12 of section 529A of the Internal Revenue Code of 

13 1986) of the individual not disregarded under sub14 section (a) of this section. 

15 (2) NO IMPACT ON MEDICAID ELIGIBILITY.—An 

16 individual who would be receiving payment of such 

17 supplemental security income benefits but for the 

18 application of paragraph (1) shall be treated for pur19 poses of title XIX of the Social Security Act as if 

20 the individual continued to be receiving payment of 

21 such benefits. 

22 (c) EFFECTIVE DATE.—This section shall take effect 

23 on the date of the enactment of this Act. 


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1 SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANK2 RUPTCY. 

3 (a) EXCLUSION FROM PROPERTY OF THE ESTATE.— 

4 Section 541(b) of the title 11, United States Code, is 

5 amended— 

6 (1) in paragraph (8), by striking ‘‘or’’ at the 

7 end; 

8 (2) in paragraph (9), by striking the period at 

9 the end and inserting a semicolon and ‘‘or’’; and 

10 (3) by inserting after paragraph (9) the fol11 lowing: 

12 ‘‘(10) funds placed in an account of a qualified 

13 ABLE program (as defined in section 529A(b) of 

14 the Internal Revenue Code of 1986) not later than 

15 365 days before the date of the filing of the petition 

16 in a case under this title, but— 

17 ‘‘(A) only if the designated beneficiary of 

18 such account was a child, stepchild, grandchild, 

19 or stepgrandchild of the debtor for the taxable 

20 year for which funds were placed in such ac21 count; 

22 ‘‘(B) only to the extent that such funds— 

23 ‘‘(i) are not pledged or promised to 

24 any entity in connection with any extension 

25 of credit; and 


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1 ‘‘(ii) are not excess contributions (as 

2 described in section 4973(h) of the Inter3 nal Revenue Code of 1986); and 

4 ‘‘(C) in the case of funds placed in all such 

5 accounts having the same designated bene6 ficiary not earlier than 720 days nor later than 

7 365 days before such date, only so much of 

8 such funds as does not exceed $6,225.’’. 

9 (b) DEBTOR’S MONTHLY EXPENSES.—Section 

10 707(b)(2)(A)(ii)(II) of title 11, United States Code, is 

11 amended by adding at the end ‘‘Such monthly expenses 

12 may include, if applicable, contributions to an account of 

13 a qualified ABLE program to the extent such contribu14 tions are not excess contributions (as described in section 

15 4973(h) of the Internal Revenue Code of 1986) and if the 

16 designated beneficiary of such account is a child, stepchild, 

17 grandchild, or stepgrandchild of the debtor.’’. 

18 (c) RECORD OF DEBTOR’S INTEREST.—Section 

19 521(c) of title 11, United States Code, is amended by in20 serting ‘‘, an interest in an account in a qualified ABLE 

21 program (as defined in section 529A(b) of such Code,’’ 

22 after ‘‘Internal Revenue Code of 1986)’’. 

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

24 this section shall apply with respect to cases commenced 


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1 under title 11, United States Code, on or after the date 

2 of the enactment of this Act. 

3 SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS. 

4 (a) AMENDMENTS RELATING TO INVESTMENT DI5 RECTION RULE FOR 529 PLANS.— 

6 (1) Paragraph (4) of section 529(b) is amended 

7 by striking ‘‘may not directly or indirectly’’ and all 

8 that follows and inserting ‘‘may, directly or indi9 rectly, direct the investment of any contributions to 

10 the program (or any earnings thereon) no more than 

11 2 times in any calendar year.’’. 

12 (2) The heading of paragraph (4) of section 

13 529(b)is amended by striking ‘‘NO’’ and inserting 

14 ‘‘LIMITED’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2014. 

18 TITLE II—OFFSETS 

19 SEC. 201. CORRECTION TO WORKERS COMPENSATION OFF20 SET AGE. 

21 (a) RETIREMENT AGE.—Section 224(a) of the Social 

22 Security Act (42 U.S.C. 424a(a)) is amended, in the mat23 ter preceding paragraph (1), by striking ‘‘the age of 65’’ 

24 and inserting ‘‘retirement age (as defined in section 

25 216(l)(1))’’. 


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

2 subsection (a) shall apply with respect to any individual 

3 who attains 65 years of age on or after the date that is 

4 12 months after the date of the enactment of this Act. 

5 SEC. 202. ACCELERATED APPLICATION OF RELATIVE 

6 VALUE TARGETS FOR MISVALUED SERVICES 

7 IN THE MEDICARE PHYSICIAN FEE SCHED8 ULE. 

9 Section 1848(c) of the Social Security Act (42 U.S.C. 

10 1395w–4(c)) is amended— 

11 (1) in subclause (VIII) of paragraph (2)(B)(v), 

12 as added by section 220(d)(2) of the Protecting Ac13 cess to Medicare Act of 2014 (Public Law 113– 

14 93)— 

15 (A) by striking ‘‘2017’’ and inserting 

16 ‘‘2016’’; and 

17 (B) by redesignating such subclause as 

18 subclause (IX); 

19 (2) in paragraph (2)(O)— 

20 (A) in the matter preceding clause (i), by 

21 striking ‘‘2017 through 2020’’ and inserting 

22 ‘‘2016 through 2018’’; 

23 (B) in clause (iii), by striking ‘‘2017’’ and 

24 inserting ‘‘2016’’; and 


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1 (C) in clause (v), by inserting ‘‘(or, for 

2 2016, 1.0 percent)’’ after ‘‘0.5 percent’’; and 

3 (3) in paragraph (7), by striking ‘‘2017’’ and 

4 inserting ‘‘2016’’. 

5 SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION 

6 SYSTEMS IN MEDICARE PARTS B AND D. 

7 Section 1834(a)(1) of the Social Security Act (42 

8 U.S.C. 1395m(a)(1)) is amended by adding at the end the 

9 following new subparagraph: 

10 ‘‘(I) TREATMENT OF VACUUM ERECTION

11 SYSTEMS.—Effective for items and services fur12 nished on and after July 1, 2015, vacuum erec13 tion systems described as prosthetic devices de14 scribed in section 1861(s)(8) shall be treated in 

15 the same manner as erectile dysfunction drugs 

16 are treated for purposes of section 1860D17 2(e)(2)(A).’’. 

18 SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL19 ONLY POLICY UNDER MEDICARE ESRD PRO20 SPECTIVE PAYMENT SYSTEM. 

21 Section 632(b)(1) of the American Taxpayer Relief 

22 Act of 2012 (42 U.S.C. 1395rr note), as amended by sec23 tion 217(a)(1) of the Protecting Access to Medicare Act 

24 of 2014 (Public Law 113-93), is amended by striking 

25 ‘‘2024’’ and inserting ‘‘2025’’. 


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1 SEC. 205. MODIFICATION RELATING TO INLAND WATER2 WAYS TRUST FUND FINANCING RATE. 

3 (a) IN GENERAL.—Section 4042(b)(2)(A) is amend4 ed to read as follows: 

5 ‘‘(A) The Inland Waterways Trust Fund 

6 financing rate is 29 cents per gallon.’’. 

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

8 this section shall apply to fuel used after March 31, 2015. 

9 SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANI10 ZATIONS. 

11 (a) EMPLOYMENT TAXES.—Chapter 25 is amended 

12 by adding at the end the following new section: 

13 ‘‘SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANI14 ZATIONS. 

15 ‘‘(a) GENERAL RULES.—For purposes of the taxes, 

16 and other obligations, imposed by this subtitle— 

17 ‘‘(1) a certified professional employer organiza18 tion shall be treated as the employer (and no other 

19 person shall be treated as the employer) of any work 

20 site employee performing services for any customer 

21 of such organization, but only with respect to remu22 neration remitted by such organization to such work 

23 site employee, and 

24 ‘‘(2) the exemptions, exclusions, definitions, and 

25 other rules which are based on type of employer and 

26 which would (but for paragraph (1)) apply shall 


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1 apply with respect to such taxes imposed on such re2 muneration. 

3 ‘‘(b) SUCCESSOR EMPLOYER STATUS.—For purposes 

4 of sections 3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)— 

5 ‘‘(1) a certified professional employer organiza6 tion entering into a service contract with a customer 

7 with respect to a work site employee shall be treated 

8 as a successor employer and the customer shall be 

9 treated as a predecessor employer during the term 

10 of such service contract, and 

11 ‘‘(2) a customer whose service contract with a 

12 certified professional employer organization is termi13 nated with respect to a work site employee shall be 

14 treated as a successor employer and the certified 

15 professional employer organization shall be treated 

16 as a predecessor employer. 

17 ‘‘(c) LIABILITY OF CERTIFIED PROFESSIONAL EM18 PLOYER ORGANIZATION.—Solely for purposes of its liabil19 ity for the taxes and other obligations imposed by this sub20 title— 

21 ‘‘(1) a certified professional employer organiza22 tion shall be treated as the employer of any indi23 vidual (other than a work site employee or a person 

24 described in subsection (f)) who is performing serv25 ices covered by a contract meeting the requirements 


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1 of section 7705(e)(2), but only with respect to remu2 neration remitted by such organization to such indi3 vidual, and 

4 ‘‘(2) the exemptions, exclusions, definitions, and 

5 other rules which are based on type of employer and 

6 which would (but for paragraph (1)) apply shall 

7 apply with respect to such taxes imposed on such re8 muneration. 

9 ‘‘(d) TREATMENT OF CREDITS.— 

10 ‘‘(1) IN GENERAL.—For purposes of any credit 

11 specified in paragraph (2)— 

12 ‘‘(A) such credit with respect to a work 

13 site employee performing services for the cus14 tomer applies to the customer, not the certified 

15 professional employer organization, 

16 ‘‘(B) the customer, and not the certified 

17 professional employer organization, shall take 

18 into account wages and employment taxes— 

19 ‘‘(i) paid by the certified professional 

20 employer organization with respect to the 

21 work site employee, and 

22 ‘‘(ii) for which the certified profes23 sional employer organization receives pay24 ment from the customer, and 


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1 ‘‘(C) the certified professional employer or2 ganization shall furnish the customer and the 

3 Secretary with any information necessary for 

4 the customer to claim such credit. 

5 ‘‘(2) CREDITS SPECIFIED.—A credit is specified 

6 in this paragraph if such credit is allowed under— 

7 ‘‘(A) section 41 (credit for increasing re8 search activity), 

9 ‘‘(B) section 45A (Indian employment 

10 credit), 

11 ‘‘(C) section 45B (credit for portion of em12 ployer social security taxes paid with respect to 

13 employee cash tips), 

14 ‘‘(D) section 45C (clinical testing expenses 

15 for certain drugs for rare diseases or condi16 tions), 

17 ‘‘(E) section 45R (employee health insur18 ance expenses of small employers), 

19 ‘‘(F) section 51 (work opportunity credit), 

20 ‘‘(G) section 1396 (empowerment zone em21 ployment credit), and 

22 ‘‘(H) any other section as provided by the 

23 Secretary. 

24 ‘‘(e) SPECIAL RULE FOR RELATED PARTY.—This 

25 section shall not apply in the case of a customer which 


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1 bears a relationship to a certified professional employer 

2 organization described in section 267(b) or 707(b). For 

3 purposes of the preceding sentence, such sections shall be 

4 applied by substituting ‘10 percent’ for ‘50 percent’. 

5 ‘‘(f) SPECIAL RULE FOR CERTAIN INDIVIDUALS.— 

6 For purposes of the taxes imposed under this subtitle, an 

7 individual with net earnings from self-employment derived 

8 from the customer’s trade or business (including a partner 

9 in a partnership that is a customer) is not a work site 

10 employee with respect to remuneration paid by a certified 

11 professional employer organization. 

12 ‘‘(g) REPORTING REQUIREMENTS AND OBLIGA13 TIONS.—The Secretary shall develop such reporting and 

14 recordkeeping rules, regulations, and procedures as the 

15 Secretary determines necessary or appropriate to ensure 

16 compliance with this title by certified professional em17 ployer organizations or persons that have been so certified. 

18 Such rules shall include— 

19 ‘‘(1) notification of the Secretary in such man20 ner as the Secretary shall prescribe in the case of 

21 the commencement or termination of a service con22 tract described in section 7705(e)(2) between such a 

23 person and a customer, and the employer identifica24 tion number of such customer, 


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1 ‘‘(2) such information as the Secretary deter2 mines necessary for the customer to claim the cred3 its identified in subsection (d) and the manner in 

4 which such information is to be provided, as pre5 scribed by the Secretary, and 

6 ‘‘(3) such other information as the Secretary 

7 determines is essential to promote compliance with 

8 respect to the credits identified in subsection (d) and 

9 section 3302, and 

10 shall be designed in a manner which streamlines, to the 

11 extent possible, the application of requirements of this sec12 tion and section 7705, the exchange of information be13 tween a certified professional employer organization and 

14 its customers, and the reporting and recordkeeping obliga15 tions of the certified professional employer organization. 

16 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 

17 such regulations as may be necessary or appropriate to 

18 carry out the purposes of this section.’’. 

19 (b) CERTIFIED PROFESSIONAL EMPLOYER ORGANI20 ZATION DEFINED.—Chapter 79 is amended by adding at 

21 the end the following new section: 

22 ‘‘SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANI23 ZATIONS. 

24 ‘‘(a) IN GENERAL.—For purposes of this title, the 

25 term ‘certified professional employer organization’ means 


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1 a person who applies to be treated as a certified profes2 sional employer organization for purposes of section 3511 

3 and has been certified by the Secretary as meeting the 

4 requirements of subsection (b). 

5 ‘‘(b) CERTIFICATION REQUIREMENTS.—A person 

6 meets the requirements of this subsection if such person— 

7 ‘‘(1) demonstrates that such person (and any 

8 owner, officer, and other persons as may be specified 

9 in regulations) meets such requirements as the Sec10 retary shall establish, including requirements with 

11 respect to tax status, background, experience, busi12 ness location, and annual financial audits, 

13 ‘‘(2) agrees that it will satisfy the bond and 

14 independent financial review requirements of sub15 section (c) on an ongoing basis, 

16 ‘‘(3) agrees that it will satisfy such reporting 

17 obligations as may be imposed by the Secretary, 

18 ‘‘(4) computes its taxable income using an ac19 crual method of accounting unless the Secretary ap20 proves another method, 

21 ‘‘(5) agrees to verify on such periodic basis as 

22 the Secretary may prescribe that it continues to 

23 meet the requirements of this subsection, and 

24 ‘‘(6) agrees to notify the Secretary in writing 

25 within such time as the Secretary may prescribe of 


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1 any change that materially affects the continuing ac2 curacy of any agreement or information that was 

3 previously made or provided under this subsection. 

4 ‘‘(c) BOND AND INDEPENDENT FINANCIAL RE5 VIEW.— 

6 ‘‘(1) IN GENERAL.—An organization meets the 

7 requirements of this paragraph if such organiza8 tion— 

9 ‘‘(A) meets the bond requirements of para10 graph (2), and 

11 ‘‘(B) meets the independent financial re12 view requirements of paragraph (3). 

13 ‘‘(2) BOND.— 

14 ‘‘(A) IN GENERAL.—A certified profes15 sional employer organization meets the require16 ments of this paragraph if the organization has 

17 posted a bond for the payment of taxes under 

18 subtitle C (in a form acceptable to the Sec19 retary) that is in an amount at least equal to 

20 the amount specified in subparagraph (B). 

21 ‘‘(B) AMOUNT OF BOND.—For the period 

22 April 1 of any calendar year through March 31 

23 of the following calendar year, the amount of 

24 the bond required is equal to the greater of— 


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1 ‘‘(i) 5 percent of the organization’s li2 ability under section 3511 for taxes im3 posed by subtitle C during the preceding 

4 calendar year (but not to exceed 

5 $1,000,000), or 

6 ‘‘(ii) $50,000. 

7 ‘‘(3) INDEPENDENT FINANCIAL REVIEW RE8 QUIREMENTS.—A certified professional employer or9 ganization meets the requirements of this paragraph 

10 if such organization— 

11 ‘‘(A) has, as of the most recent audit date, 

12 caused to be prepared and provided to the Sec13 retary (in such manner as the Secretary may 

14 prescribe) an opinion of an independent cer15 tified public accountant as to whether the cer16 tified professional employer organization’s fi17 nancial statements are presented fairly in ac18 cordance with generally accepted accounting 

19 principles, and 

20 ‘‘(B) provides to the Secretary an assertion 

21 regarding Federal employment tax payments 

22 and an examination level attestation on such 

23 assertion from an independent certified public 

24 accountant not later than the last day of the 


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1 second month beginning after the end of each 

2 calendar quarter. 

3 Such assertion shall state that the organization has 

4 withheld and made deposits of all taxes imposed by 

5 chapters 21, 22, and 24 in accordance with regula6 tions imposed by the Secretary for such calendar 

7 quarter and such examination level attestation shall 

8 state that such assertion is fairly stated, in all mate9 rial respects. 

10 ‘‘(4) CONTROLLED GROUP RULES.—For pur11 poses of the requirements of paragraphs (2) and (3), 

12 all certified professional employer organizations that 

13 are members of a controlled group within the mean14 ing of sections 414(b) and (c) shall be treated as a 

15 single organization. 

16 ‘‘(5) FAILURE TO FILE ASSERTION AND ATTES17 TATION.—If the certified professional employer orga18 nization fails to file the assertion and attestation re19 quired by paragraph (3) with respect to any cal20 endar quarter, then the requirements of paragraph 

21 (3) with respect to such failure shall be treated as 

22 not satisfied for the period beginning on the due 

23 date for such attestation. 


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1 ‘‘(6) AUDIT DATE.—For purposes of paragraph 

2 (3)(A), the audit date shall be six months after the 

3 completion of the organization’s fiscal year. 

4 ‘‘(d) SUSPENSION AND REVOCATION AUTHORITY.— 

5 The Secretary may suspend or revoke a certification of 

6 any person under subsection (b) for purposes of section 

7 3511 if the Secretary determines that such person is not 

8 satisfying the agreements or requirements of subsections 

9 (b) or (c), or fails to satisfy applicable accounting, report10 ing, payment, or deposit requirements. 

11 ‘‘(e) WORK SITE EMPLOYEE.—For purposes of this 

12 title— 

13 ‘‘(1) IN GENERAL.—The term ‘work site em14 ployee’ means, with respect to a certified profes15 sional employer organization, an individual who— 

16 ‘‘(A) performs services for a customer pur17 suant to a contract which is between such cus18 tomer and the certified professional employer 

19 organization and which meets the requirements 

20 of paragraph (2), and 

21 ‘‘(B) performs services at a work site 

22 meeting the requirements of paragraph (3). 

23 ‘‘(2) SERVICE CONTRACT REQUIREMENTS.—A 

24 contract meets the requirements of this paragraph 

25 with respect to an individual performing services for 


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1 a customer if such contract is in writing and pro2 vides that the certified professional employer organi3 zation shall— 

4 ‘‘(A) assume responsibility for payment of 

5 wages to such individual, without regard to the 

6 receipt or adequacy of payment from the cus7 tomer for such services, 

8 ‘‘(B) assume responsibility for reporting, 

9 withholding, and paying any applicable taxes 

10 under subtitle C, with respect to such individ11 ual’s wages, without regard to the receipt or 

12 adequacy of payment from the customer for 

13 such services, 

14 ‘‘(C) assume responsibility for any em15 ployee benefits which the service contract may 

16 require the certified professional employer orga17 nization to provide, without regard to the re18 ceipt or adequacy of payment from the cus19 tomer for such benefits, 

20 ‘‘(D) assume responsibility for recruiting, 

21 hiring, and firing workers in addition to the 

22 customer’s responsibility for recruiting, hiring, 

23 and firing workers, 

24 ‘‘(E) maintain employee records relating to 

25 such individual, and 


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1 ‘‘(F) agree to be treated as a certified pro2 fessional employer organization for purposes of 

3 section 3511 with respect to such individual. 

4 ‘‘(3) WORK SITE COVERAGE REQUIREMENT.— 

5 The requirements of this paragraph are met with re6 spect to an individual if at least 85 percent of the 

7 individuals performing services for the customer at 

8 the work site where such individual performs serv9 ices are subject to 1 or more contracts with the cer10 tified professional employer organization which meet 

11 the requirements of paragraph (2) (but not taking 

12 into account those individuals who are excluded em13 ployees within the meaning of section 414(q)(5)). 

14 ‘‘(f) PUBLIC DISCLOSURE.—The Secretary shall 

15 make available to the public the name and address of— 

16 ‘‘(1) each person certified as a professional em17 ployer organization under subsection (a), and 

18 ‘‘(2) each person whose certification as a pro19 fessional employer organization is suspended or re20 voked under subsection (d). 

21 ‘‘(g) DETERMINATION OF EMPLOYMENT STATUS.— 

22 Except to the extent necessary for purposes of section 

23 3511, nothing in this section shall be construed to affect 

24 the determination of who is an employee or employer for 

25 purposes of this title. 


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1 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be necessary or appropriate to 

3 carry out the purposes of this section.’’. 

4 (c) CONFORMING AMENDMENTS.— 

5 (1) Section 3302 is amended by adding at the 

6 end the following new subsection: 

7 ‘‘(h) TREATMENT OF CERTIFIED PROFESSIONAL EM8 PLOYER ORGANIZATIONS.—If a certified professional em9 ployer organization (as defined in section 7705), or a cus10 tomer of such organization, makes a contribution to the 

11 State’s unemployment fund with respect to wages paid to 

12 a work site employee, such certified professional employer 

13 organization shall be eligible for the credits available 

14 under this section with respect to such contribution.’’. 

15 (2) Section 3303(a) is amended— 

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

17 paragraph (3) and inserting ‘‘; and’’ and by in18 serting after paragraph (3) the following new 

19 paragraph: 

20 ‘‘(4) if the taxpayer is a certified professional 

21 employer organization (as defined in section 7705) 

22 that is treated as the employer under section 3511, 

23 such certified professional employer organization is 

24 permitted to collect and remit, in accordance with 

25 paragraphs (1), (2), and (3), contributions during 


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1 the taxable year to the State unemployment fund 

2 with respect to a work site employee.’’, and 

3 (B) in the last sentence— 

4 (i) by striking ‘‘paragraphs (1), (2), 

5 and (3)’’ and inserting ‘‘paragraphs (1), 

6 (2), (3), and (4)’’, and 

7 (ii) by striking ‘‘paragraph (1), (2), or 

8 (3)’’ and inserting ‘‘paragraph (1), (2), 

9 (3), or (4)’’. 

10 (3) Section 6053(c) is amended by adding at 

11 the end the following new paragraph: 

12 ‘‘(8) CERTIFIED PROFESSIONAL EMPLOYER OR13 GANIZATIONS.—For purposes of any report required 

14 by this subsection, in the case of a certified profes15 sional employer organization that is treated under 

16 section 3511 as the employer of a work site em17 ployee, the customer with respect to whom a work 

18 site employee performs services shall be the employer 

19 for purposes of reporting under this section and the 

20 certified professional employer organization shall 

21 furnish to the customer and the Secretary any infor22 mation the Secretary prescribes as necessary to com23 plete such reporting no later than such time as the 

24 Secretary shall prescribe.’’. 


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1 (4) Section 6652 is amended by adding at the 

2 end the following new subsection: 

3 ‘‘(n) FAILURE TO MAKE REPORTS REQUIRED

4 UNDER SECTIONS 3511, 6053(c)(8), AND 7705.—In the 

5 case of a failure to make a report required under section 

6 3511, 6053(c)(8), or 7705 which contains the information 

7 required by such section on the date prescribed therefor 

8 (determined with regard to any extension of time for fil9 ing), there shall be paid (on notice and demand by the 

10 Secretary and in the same manner as tax) by the person 

11 failing to make such report, an amount equal to $50 for 

12 each report with respect to which there was such a failure. 

13 In the case of any failure due to negligence or intentional 

14 disregard the preceding sentence shall be applied by sub15 stituting ‘$100’ for ‘$50’.’’. 

16 (d) CLERICAL AMENDMENTS.— 

17 (1) The table of sections for chapter 25 is 

18 amended by adding at the end the following new 

19 item: 

‘‘Sec. 3511. Certified professional employer organizations.’’. 

20 (2) The table of sections for chapter 79 is 

21 amended by inserting after the item relating to sec22 tion 7704 the following new item: 

‘‘Sec. 7705. Certified professional employer organizations.’’. 

23 (f) USER FEES.—Section 7528(b) is amended by 

24 adding at the end the following new paragraph: 


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1 ‘‘(4) CERTIFIED PROFESSIONAL EMPLOYER OR2 GANIZATIONS.—The fee charged under the program 

3 in connection with the certification by the Secretary 

4 of a professional employer organization under sec5 tion 7705 shall be an annual fee not to exceed 

6 $1,000 per year.’’. 

7 (g) EFFECTIVE DATES.— 

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

9 this section shall apply with respect to wages for 

10 services performed on or after January 1 of the first 

11 calendar year beginning more than 12 months after 

12 the date of the enactment of this Act. 

13 (2) CERTIFICATION PROGRAM.—The Secretary 

14 of the Treasury shall establish the certification pro15 gram described in section 7705(b) of the Internal 

16 Revenue Code of 1986, as added by subsection (b), 

17 not later than 6 months before the effective date de18 termined under paragraph (1). 

19 (h) NO INFERENCE.—Nothing contained in this sec20 tion or the amendments made by this section shall be con21 strued to create any inference with respect to the deter22 mination of who is an employee or employer— 

23 (1) for Federal tax purposes (other than the 

24 purposes set forth in the amendments made by this 

25 section), or 


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1 (2) for purposes of any other provision of law. 

2 SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED 

3 FOREIGN CORPORATIONS FROM THE DEFINI4 TION OF PERSONAL HOLDING COMPANY IN5 COME FOR PURPOSES OF THE PERSONAL 

6 HOLDING COMPANY RULES. 

7 (a) IN GENERAL.—Section 543(a)(1) is amended— 

8 (1) by redesignating subparagraphs (C) and 

9 (D) as subparagraphs (D) and (E), respectively, and 

10 (2) by inserting after subparagraph (B) the fol11 lowing: 

12 ‘‘(C) dividends received by a United States 

13 shareholder (as defined in section 951(b)) from 

14 a controlled foreign corporation (as defined in 

15 section 957(a)),’’. 

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

17 this Act shall apply to taxable years ending on or after 

18 the date of the enactment of this Act. 

19 SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL 

20 PENALTIES UNDER THE INTERNAL REVENUE 

21 CODE OF 1986. 

22 (a) FAILURE TO FILE TAX RETURN OR PAY TAX.— 

23 Section 6651 is amended by adding at the end the fol24 lowing new subsection: 

25 ‘‘(i) ADJUSTMENT FOR INFLATION.— 


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1 ‘‘(1) IN GENERAL.—In the case of any return 

2 required to be filed in a calendar year beginning 

3 after 2014, the $135 dollar amount under subsection 

4 (a) shall be increased by such dollar amount multi5 plied by the cost-of-living adjustment determined 

6 under section 1(f)(3) determined by substituting 

7 ‘calendar year 2013’ for ‘calendar year 1992’ in sub8 paragraph (B) thereof. 

9 ‘‘(2) ROUNDING.—If any amount adjusted 

10 under paragraph (1) is not a multiple of $5, such 

11 amount shall be rounded to the next lowest multiple 

12 of $5.’’. 

13 (b) FAILURE TO FILE CERTAIN INFORMATION RE14 TURNS, REGISTRATION STATEMENTS, ETC.— 

15 (1) IN GENERAL.—Section 6652(c) is amended 

16 by adding at the end the following new paragraph: 

17 ‘‘(6) ADJUSTMENT FOR INFLATION.— 

18 ‘‘(A) IN GENERAL.—In the case of any 

19 failure relating to a return required to be filed 

20 in a calendar year beginning after 2014, each 

21 of the dollar amounts under paragraphs (1), 

22 (2), and (3) shall be increased by such dollar 

23 amount multiplied by the cost-of-living adjust24 ment determined under section 1(f)(3) deter25 mined by substituting ‘calendar year 2013’ for 


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1 ‘calendar year 1992’ in subparagraph (B) 

2 thereof. 

3 ‘‘(B) ROUNDING.—If any amount adjusted 

4 under subparagraph (A)— 

5 ‘‘(i) is not less than $5,000 and is not 

6 a multiple of $500, such amount shall be 

7 rounded to the next lowest multiple of 

8 $500, and 

9 ‘‘(ii) is not described in clause (i) and 

10 is not a multiple of $5, such amount shall 

11 be rounded to the next lowest multiple of 

12 $5.’’. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) The last sentence of section 

15 6652(c)(1)(A) is amended by striking ‘‘the first 

16 sentence of this subparagraph shall be applied 

17 by substituting ‘$100’ for ‘$20’ and’’ and in18 serting ‘‘in applying the first sentence of this 

19 subparagraph, the amount of the penalty for 

20 each day during which a failure continues shall 

21 be $100 in lieu of the amount otherwise speci22 fied, and’’. 

23 (B) Section 6652(c)(2)(C)(ii) is amended 

24 by striking ‘‘the first sentence of paragraph 

25 (1)(A)’’ and all that follows and inserting ‘‘in 


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1 applying the first sentence of paragraph (1)(A), 

2 the amount of the penalty for each day during 

3 which a failure continues shall be $100 in lieu 

4 of the amount otherwise specified, and in lieu of 

5 applying the second sentence of paragraph 

6 (1)(A), the maximum penalty under paragraph 

7 (1)(A) shall not exceed $50,000, and’’. 

8 (c) OTHER ASSESSABLE PENALTIES WITH RESPECT

9 TO THE PREPARATION OF TAX RETURNS FOR OTHER

10 PERSONS.—Section 6695 is amended by adding at the end 

11 the following new subsection: 

12 ‘‘(h) ADJUSTMENT FOR INFLATION.— 

13 ‘‘(1) IN GENERAL.—In the case of any failure 

14 relating to a return or claim for refund filed in a 

15 calendar year beginning after 2014, each of the dol16 lar amounts under subsections (a), (b), (c), (d), (e), 

17 (f), and (g) shall be increased by such dollar amount 

18 multiplied by the cost-of-living adjustment deter19 mined under section 1(f)(3) determined by sub20 stituting ‘calendar year 2013’ for ‘calendar year 

21 1992’ in subparagraph (B) thereof. 

22 ‘‘(2) ROUNDING.—If any amount adjusted 

23 under subparagraph (A)— 


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1 ‘‘(A) is not less than $5,000 and is not a 

2 multiple of $500, such amount shall be rounded 

3 to the next lowest multiple of $500, and 

4 ‘‘(B) is not described in clause (i) and is 

5 not a multiple of $5, such amount shall be 

6 rounded to the next lowest multiple of $5.’’. 

7 (d) FAILURE TO FILE PARTNERSHIP RETURN.—Sec8 tion 6698 is amended by adding at the end the following 

9 new subsection: 

10 ‘‘(e) ADJUSTMENT FOR INFLATION.— 

11 ‘‘(1) IN GENERAL.—In the case of any return 

12 required to be filed in a calendar year beginning 

13 after 2014, the $195 dollar amount under subsection 

14 (b)(1) shall be increased by such dollar amount mul15 tiplied by the cost-of-living adjustment determined 

16 under section 1(f)(3) determined by substituting 

17 ‘calendar year 2013’ for ‘calendar year 1992’ in sub18 paragraph (B) thereof. 

19 ‘‘(2) ROUNDING.—If any amount adjusted 

20 under paragraph (1) is not a multiple of $5, such 

21 amount shall be rounded to the next lowest multiple 

22 of $5.’’. 

23 (e) FAILURE TO FILE S CORPORATION RETURN.— 

24 Section 6699 is amended by adding at the end the fol25 lowing new subsection: 


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1 ‘‘(e) ADJUSTMENT FOR INFLATION.— 

2 ‘‘(1) IN GENERAL.—In the case of any return 

3 required to be filed in a calendar year beginning 

4 after 2014, the $195 dollar amount under subsection 

5 (b)(1) shall be increased by such dollar amount mul6 tiplied by the cost-of-living adjustment determined 

7 under section 1(f)(3) determined by substituting 

8 ‘calendar year 2013’ for ‘calendar year 1992’ in sub9 paragraph (B) thereof. 

10 ‘‘(2) ROUNDING.—If any amount adjusted 

11 under paragraph (1) is not a multiple of $5, such 

12 amount shall be rounded to the next lowest multiple 

13 of $5.’’. 

14 (f) FAILURE TO FILE CORRECT INFORMATION RE15 TURNS.—Section 6721(f)(1) is amended by striking ‘‘For 

16 each fifth calendar year beginning after 2012’’ and insert17 ing ‘‘In the case of any failure relating to a return re18 quired to be filed in a calendar year beginning after 

19 2014’’. 

20 (g) FAILURE TO FURNISH CORRECT PAYEE STATE21 MENTS.—Section 6722(f)(1) is amended by striking ‘‘For 

22 each fifth calendar year beginning after 2012’’ and insert23 ing ‘‘In the case of any failure relating to a statement 

24 required to be furnished in a calendar year beginning after 

25 2014’’. 


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

2 this section shall apply to returns required to be filed after 

3 December 31, 2014. 

4 SEC. 209. INCREASE IN CONTINUOUS LEVY. 

5 (a) IN GENERAL.—Paragraph (3) of section 6331(h) 

6 is amended by striking the period at the end and inserting 

7 ‘‘and by substituting ‘30 percent’ for ‘15 percent’ in the 

8 case of any specified payment due to a Medicare provider 

9 or supplier under title XVIII of the Social Security Act.’’. 

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

11 this section shall apply to payments made after 180 days 

12 after the date of the enactment of this Act. 

Passed the House of Representatives December 3, 

2014. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 627 

113TH CONGRESS 

2D SESSION H. R. 5771 

AN ACT 

To amend the Internal Revenue Code of 1986 to 

abilities, and for other purposes. grams for the care of family members with disABLE accounts established under State proCode of 1986 to provide for the tax treatment of nical corrections, to amend the Internal Revenue extend certain expiring provisions and make techDECEMBER 9, 2014 

Read the second time and placed on the calendar 


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