II 

Calendar No. 366 

113TH CONGRESS 

2D SESSION S. 2260 

[Report No. 113–154] 

To amend the Internal Revenue Code of 1986 to extend certain expiring 

provisions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 28, 2014 

Mr. WYDEN, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

certain expiring provisions, 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 SECTION 1. SHORT TITLE, ETC. 

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

5 ‘‘Expiring Provisions Improvement, Reform, and Effi6 ciency Act of 2014’’ or the ‘‘EXPIRE Act of 2014’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amendVerDate Mar 15 2010 23:56 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2260.PCS S2260

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1 ment or repeal is expressed in terms of an amendment 

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

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

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

6 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Sense of the Senate. 

TITLE I—PROVISIONS EXPIRING IN 2013 

Subtitle A—Individual Tax Extenders 

Sec. 101. Extension of health care tax credit. 

Sec. 102. Extension of deduction for certain expenses of elementary and secondary school teachers. 

Sec. 103. Extension of exclusion from gross income of discharge of qualified 

principal residence indebtedness. 

Sec. 104. Extension of parity and modification of exclusion from income for 

employer-provided mass transit and parking benefits. 

Sec. 105. Extension of mortgage insurance premiums treated as qualified residence interest. 

Sec. 106. Extension of deduction of State and local general sales taxes. 

Sec. 107. Extension of special rule for contributions of capital gain real property made for conservation purposes. 

Sec. 108. Extension of above-the-line deduction for qualified tuition and related 

expenses. 

Sec. 109. Extension of tax-free distributions from individual retirement plans 

for charitable purposes. 

Subtitle B—Business Tax Extenders 

Sec. 111. Extension and modification of research credit. 

Sec. 112. Extension and modification 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 and modification 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 and modification of employer wage credit for employees 

who are active duty members of the uniformed services. 

Sec. 119. Extension and modification of work opportunity tax credit. 

Sec. 120. Extension and modification of qualified zone academy bonds. 

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. 


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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 and modification 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; special expensing for live theatrical 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 and modification of credit for nonbusiness energy property. 

Sec. 152. Extension of credit for 2-wheeled plug-in electric vehicles. 

Sec. 153. Extension of second generation biofuel producer credit. 

Sec. 154. Extension of incentives for biodiesel and renewable diesel. 

Sec. 155. Extension and modification of production credit for Indian coal facilities placed in service before 2009. 

Sec. 156. Extension of credits with respect to facilities producing energy from 

certain renewable resources. 

Sec. 157. Extension of credit for energy-efficient new homes. 

Sec. 158. Extension of special allowance for second generation biofuel plant 

property. 

Sec. 159. Extension and modification of energy efficient commercial buildings 

deduction. 

Sec. 160. Extension of special rule for sales or dispositions to implement FERC 

or State electric restructuring policy for qualified electric utilities. 

Sec. 161. Extension of excise tax credits relating to certain fuels. 

TITLE II—PROVISIONS EXPIRING IN 2014 


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Subtitle A—Energy Tax Extenders 

Sec. 201. Extension of credit for new qualified fuel cell motor vehicles. 

Sec. 202. Extension of credit for alternative fuel vehicle refueling property. 

Subtitle B—Extenders Relating to Multiemployer Defined Benefit Pension 

Plans 

Sec. 251. Extension of automatic extension of amortization periods. 

Sec. 252. Extension of funding improvement and rehabilitation plan rules. 

TITLE III—REVENUE PROVISIONS 

Sec. 301. Penalty for failure to meet due diligence requirements for the child 

tax credit. 

Sec. 302. 100 percent continuous levy on payment to medicare providers and 

suppliers. 

Sec. 303. Exclusion from gross income of certain clean coal power grants to 

non-corporate taxpayers. 

Sec. 304. Reform of rules relating to qualified tax collection contracts. 

Sec. 305. Special compliance personnel program. 

Sec. 306. Exclusion of dividends from controlled foreign corporations from the 

definition of personal holding company income for purposes of 

the personal holding company rules. 

Sec. 307. Inflation adjustment for certain civil penalties under the Internal 

Revenue Code of 1986. 

TITLE IV—BUDGETARY EFFECTS 

Sec. 401. Budgetary effects. 

1 SEC. 2. SENSE OF THE SENATE. 

2 It is the sense of the Senate that— 

3 (1) a process of comprehensive tax reform 

4 should commence in the 114th Congress and should 

5 conclude before January 1, 2016; 

6 (2) Congress should endeavor, as part of such 

7 a tax reform process, to eliminate temporary provi8 sions from the Internal Revenue Code of 1986 by 

9 making permanent those provisions that merit per10 manency and allowing others to expire; 


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1 (3) a major focus of such tax reform process 

2 should be fostering economic growth and lowering 

3 tax rates by broadening the tax base; and 

4 (4) the chairman and ranking member of the 

5 Committee on Finance of the Senate should consult 

6 with the chairman and ranking member of the Com7 mittee on the Budget of the Senate to ensure that 

8 the appropriate baseline is used in determining the 

9 economic effects of, and rate adjustments under, tax 

10 reform. 

11 TITLE I—PROVISIONS EXPIRING 

12 IN 2013 

13 Subtitle A—Individual Tax 

14 Extenders 

15 SEC. 101. EXTENSION OF HEALTH CARE TAX CREDIT. 

16 (a) IN GENERAL.—Subparagraph (B) of section 

17 35(b)(1) is amended by striking ‘‘January 1, 2014’’ and 

18 inserting ‘‘January 1, 2016’’. 

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

20 this section shall apply to coverage months beginning after 

21 December 31, 2013. 


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1 SEC. 102. EXTENSION OF DEDUCTION FOR CERTAIN EX2 PENSES OF ELEMENTARY AND SECONDARY 

3 SCHOOL TEACHERS. 

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

5 62(a)(2) is amended by striking ‘‘or 2013’’ and inserting 

6 ‘‘2013, 2014, or 2015’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2013. 

10 SEC. 103. EXTENSION OF EXCLUSION FROM GROSS INCOME 

11 OF DISCHARGE OF QUALIFIED PRINCIPAL 

12 RESIDENCE INDEBTEDNESS. 

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

14 108(a)(1) is amended by striking ‘‘January 1, 2014’’ and 

15 inserting ‘‘January 1, 2016’’. 

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

17 this section shall apply to indebtedness discharged after 

18 December 31, 2013. 

19 SEC. 104. EXTENSION OF PARITY AND MODIFICATION OF 

20 EXCLUSION FROM INCOME FOR EMPLOYER21 PROVIDED MASS TRANSIT AND PARKING 

22 BENEFITS. 

23 (a) EXTENSION.— 

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

25 132(f) is amended by striking ‘‘January 1, 2014’’ 

26 and inserting ‘‘January 1, 2016’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to months after De3 cember 31, 2013. 

4 (b) USE OF A BIKE SHARE PROGRAM AS A QUALI5 FIED TRANSPORTATION FRINGE.— 

6 (1) IN GENERAL.—Section 132(f)(5)(F) is 

7 amended— 

8 (A) in clause (i), by striking ‘‘repair, and 

9 storage, if such bicycle’’ and inserting ‘‘repair, 

10 and storage (or use of a bike sharing program, 

11 in the case of taxable years beginning before 

12 January 1, 2016), if such bicycle or bike shar13 ing program’’, and 

14 (B) in clause (iii)(I), by inserting ‘‘or bike 

15 sharing program’’ after ‘‘bicycle’’. 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to taxable years begin18 ning after December 31, 2013. 

19 SEC. 105. 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, 2015’’. 


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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. 106. 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, 2016’’. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2013. 

12 SEC. 107. 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, 2015’’. 

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, 2015’’. 

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. 108. 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, 2015’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2013. 

10 SEC. 109. 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, 2015’’. 

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 AND MODIFICATION OF RESEARCH 

22 CREDIT. 

23 (a) EXTENSION.— 

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

25 41(h) is amended by striking ‘‘paid or incurred’’ and 


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1 all that follows and inserting ‘‘paid or incurred after 

2 December 31, 2015.’’. 

3 (2) CONFORMING AMENDMENT.—Subparagraph 

4 (D) of section 45C(b)(1) is amended to read as fol5 lows: 

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

7 in effect for any period, such section shall be 

8 deemed to remain in effect for such period for 

9 purposes of this paragraph.’’. 

10 (3) EFFECTIVE DATE.—The amendments made 

11 by this subsection shall apply to amounts paid or in12 curred after December 31, 2013. 

13 (b) TREATMENT OF RESEARCH CREDIT FOR CER14 TAIN STARTUP COMPANIES.— 

15 (1) IN GENERAL.—Section 41 is amended by 

16 adding at the end the following new subsection: 

17 ‘‘(i) TREATMENT OF CREDIT FOR QUALIFIED SMALL

18 BUSINESSES.— 

19 ‘‘(1) IN GENERAL.—At the election of a quali20 fied small business for any taxable year, section 

21 3111(f) shall apply to the payroll tax credit portion 

22 of the credit otherwise determined under subsection 

23 (a) for the taxable year and such portion shall not 

24 be treated (other than for purposes of section 280C) 

25 as a credit determined under subsection (a). 


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1 ‘‘(2) PAYROLL TAX CREDIT PORTION.—For 

2 purposes of this subsection, the payroll tax credit 

3 portion of the credit determined under subsection 

4 (a) with respect to any qualified small business for 

5 any taxable year is the least of— 

6 ‘‘(A) the amount specified in the election 

7 made under this subsection, 

8 ‘‘(B) the credit determined under sub9 section (a) for the taxable year (determined be10 fore the application of this subsection), or 

11 ‘‘(C) in the case of a qualified small busi12 ness other than a partnership or S corporation, 

13 the amount of the business credit carryforward 

14 under section 39 carried from the taxable year 

15 (determined before the application of this sub16 section to the taxable year). 

17 ‘‘(3) QUALIFIED SMALL BUSINESS.—For pur18 poses of this subsection— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 small business’ means, with respect to any tax21 able year— 

22 ‘‘(i) a corporation or partnership, if— 

23 ‘‘(I) the gross receipts (as deter24 mined under the rules of section 

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1 graph (A) thereof) of such entity for 

2 the taxable year is less than 

3 $5,000,000, and 

4 ‘‘(II) such entity did not have 

5 gross receipts (as so determined) for 

6 any taxable year preceding the 5-tax7 able-year period ending with such tax8 able year, and 

9 ‘‘(ii) any person (other than a cor10 poration or partnership) who meets the re11 quirements of subclauses (I) and (II) of 

12 clause (i), determined— 

13 ‘‘(I) by substituting ‘person’ for 

14 ‘entity’ each place it appears, and 

15 ‘‘(II) by only taking into account 

16 the aggregate gross receipts received 

17 by such person in carrying on all 

18 trades or businesses of such person. 

19 ‘‘(B) LIMITATION.—Such term shall not 

20 include an organization which is exempt from 

21 taxation under section 501. 

22 ‘‘(4) ELECTION.— 

23 ‘‘(A) IN GENERAL.—Any election under 

24 this subsection for any taxable year— 


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1 ‘‘(i) shall specify the amount of the 

2 credit to which such election applies, 

3 ‘‘(ii) shall be made on or before the 

4 due date (including extensions) of— 

5 ‘‘(I) in the case of a qualified 

6 small business which is a partnership, 

7 the return required to be filed under 

8 section 6031, 

9 ‘‘(II) in the case of a qualified 

10 small business which is an S corpora11 tion, the return required to be filed 

12 under section 6037, and 

13 ‘‘(III) in the case of any other 

14 qualified small business, the return of 

15 tax for the taxable year, and 

16 ‘‘(iii) may be revoked only with the 

17 consent of the Secretary. 

18 ‘‘(B) LIMITATIONS.— 

19 ‘‘(i) AMOUNT.—The amount specified 

20 in any election made under this subsection 

21 shall not exceed $250,000. 

22 ‘‘(ii) NUMBER OF TAXABLE YEARS.— 

23 A person may not make an election under 

24 this subsection if such person (or any other 

25 person treated as a single taxpayer with 


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1 such person under paragraph (5)(A)) has 

2 made an election under this subsection for 

3 5 or more preceding taxable years. 

4 ‘‘(C) SPECIAL RULE FOR PARTNERSHIPS

5 AND S CORPORATIONS.—In the case of a quali6 fied small business which is a partnership or S 

7 corporation, the election made under this sub8 section shall be made at the entity level. 

9 ‘‘(5) AGGREGATION RULES.— 

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

11 subparagraph (B), all persons or entities treat12 ed as a single taxpayer under subsection (f)(1) 

13 shall be treated as a single taxpayer for pur14 poses of this subsection. 

15 ‘‘(B) SPECIAL RULES.—For purposes of 

16 this subsection and section 3111(f)— 

17 ‘‘(i) each of the persons treated as a 

18 single taxpayer under subparagraph (A) 

19 may separately make the election under 

20 paragraph (1) for any taxable year, and 

21 ‘‘(ii) the $250,000 amount under 

22 paragraph (4)(B)(i) shall be allocated 

23 among all persons treated as a single tax24 payer under subparagraph (A) in the same 

25 manner as under subparagraph (A)(ii) or 


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1 (B)(ii) of subsection (f)(1), whichever is 

2 applicable. 

3 ‘‘(6) REGULATIONS.—The Secretary shall pre4 scribe such regulations as may be necessary to carry 

5 out the purposes of this subsection, including— 

6 ‘‘(A) regulations to prevent the avoidance 

7 of the purposes of the limitations and aggrega8 tion rules under this subsection through the use 

9 of successor companies or other means, 

10 ‘‘(B) regulations to minimize compliance 

11 and record-keeping burdens under this sub12 section, and 

13 ‘‘(C) regulations for recapturing the ben14 efit of credits determined under section 3111(f) 

15 in cases where there is a subsequent adjustment 

16 to the payroll tax credit portion of the credit 

17 determined under subsection (a), including re18 quiring amended income tax returns in the 

19 cases where there is such an adjustment.’’. 

20 (2) CREDIT ALLOWED AGAINST FICA TAXES.— 

21 Section 3111 is amended by adding at the end the 

22 following new subsection: 

23 ‘‘(f) CREDIT FOR RESEARCH EXPENDITURES OF

24 QUALIFIED SMALL BUSINESSES.— 


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1 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

2 who has made an election under section 41(i) for a 

3 taxable year, there shall be allowed as a credit 

4 against the tax imposed by subsection (a) for the 

5 first calendar quarter which begins after the date on 

6 which the taxpayer files the return specified in sec7 tion 41(i)(4)(A)(ii) an amount equal to the payroll 

8 tax credit portion determined under section 41(i)(2). 

9 ‘‘(2) LIMITATION.—The credit allowed by para10 graph (1) shall not exceed the tax imposed by sub11 section (a) for any calendar quarter on the wages 

12 paid with respect to the employment of all individ13 uals in the employ of the employer. 

14 ‘‘(3) CARRYOVER OF UNUSED CREDIT.—If the 

15 amount of the credit under paragraph (1) exceeds 

16 the limitation of paragraph (2) for any calendar 

17 quarter, such excess shall be carried to the suc18 ceeding calendar quarter and allowed as a credit 

19 under paragraph (1) for such quarter. 

20 ‘‘(4) DEDUCTION ALLOWED FOR CREDITED

21 AMOUNTS.—The credit allowed under paragraph (1) 

22 shall not be taken into account for purposes of de23 termining the amount of any deduction allowed 

24 under chapter 1 for taxes imposed under subsection 

25 (a).’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to credits determined 

3 for taxable years beginning after December 31, 

4 2013. 

5 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN6 IMUM TAX.— 

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

8 38(c)(4) is amended— 

9 (A) by redesignating clauses (ii), (iii), (iv), 

10 (v), (vi), (vii), (viii), and (ix) as clauses (iii), 

11 (iv), (v), (vi), (vii), (viii), (ix), and (x), respec12 tively, and 

13 (B) by inserting after clause (i) the fol14 lowing new clause: 

15 ‘‘(ii) the credit determined under sec16 tion 41 with respect to an eligible small 

17 business (as defined in paragraph (5)(C), 

18 after application of rules similar to the 

19 rules of paragraph (5)(D)),’’. 

20 (2) EFFECTIVE DATE.—The amendments made 

21 by this subsection shall apply to credits determined 

22 for taxable years beginning after December 31, 

23 2013, and to carrybacks of such credits. 


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1 SEC. 112. EXTENSION AND MODIFICATION OF TEMPORARY 

2 MINIMUM LOW-INCOME HOUSING TAX CRED3 IT RATE FOR NON-FEDERALLY SUBSIDIZED 

4 BUILDINGS. 

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

6 42(b)(2) is amended by striking ‘‘January 1, 2014’’ and 

7 inserting ‘‘January 1, 2016’’. 

8 (b) TEMPORARY MINIMUM CREDIT RATE FOR NON9 FEDERALLY SUBSIDIZED EXISTING BUILDINGS.—Sub10 section (b) of section 42 is amended by redesignating 

11 paragraph (3) as paragraph (4) and by inserting after 

12 paragraph (2) the following new paragraph: 

13 ‘‘(3) TEMPORARY MINIMUM CREDIT RATE FOR

14 NON-FEDERALLY SUBSIDIZED EXISTING BUILD15 INGS.—In the case of any existing building— 

16 ‘‘(A) which is placed in service by the tax17 payer after the date of the enactment of the 

18 EXPIRE Act of 2014 with respect to housing 

19 credit dollar amount allocations made before 

20 January 1, 2016, and 

21 ‘‘(B) which is not federally subsidized for 

22 the taxable year, 

23 the applicable percentage shall not be less than 4 

24 percent.’’. 

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

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


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1 SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE 

2 EXCLUSION FOR DETERMINING WHETHER A 

3 TENANT IN CERTAIN COUNTIES IS LOW-IN4 COME. 

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

6 the Housing Assistance Tax Act of 2008 is amended by 

7 striking ‘‘January 1, 2014’’ each place it appears and in8 serting ‘‘January 1, 2016’’. 

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

10 this section shall take effect as if included in the enact11 ment of section 3005 of the Housing Assistance Tax Act 

12 of 2008. 

13 SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CRED14 IT. 

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

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

17 ‘‘December 31, 2015’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2013. 

21 SEC. 115. EXTENSION AND MODIFICATION OF NEW MAR22 KETS TAX CREDIT. 

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

24 45D(f)(1) is amended by striking ‘‘and 2013’’ and insert25 ing ‘‘2013, 2014, and 2015’’. 


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1 (b) CARRYOVER OF UNUSED LIMITATION.—Para2 graph (3) of section 45D(f) is amended by striking 

3 ‘‘2018’’ and inserting ‘‘2020’’. 

4 (c) ALLOCATIONS DESIGNATED FOR AREAS IM5 PACTED BY DECLINE IN MANUFACTURING.—Paragraph 

6 (3) of section 45D(f), as amended by subsection (b), is 

7 amended— 

8 (1) by striking ‘‘If the new markets tax credit 

9 limitation’’ and inserting the following: 

10 ‘‘(A) IN GENERAL.—If the new markets 

11 tax credit limitation’’, 

12 (2) by striking ‘‘No’’ in the last sentence and 

13 inserting ‘‘Except as provided in subparagraph (B), 

14 no’’, and 

15 (3) by adding at the end, the following new sub16 paragraph: 

17 ‘‘(B) CERTAIN AMOUNTS AVAILABLE FOR

18 AREAS IMPACTED BY DECLINE IN MANUFAC19 TURING.—Any amount carried to a calendar 

20 year after the year described in the second sen21 tence of subparagraph (A) shall be available 

22 only for allocation to qualified community devel23 opment entities a significant mission of which is 

24 providing investments and services to persons in 

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1 ucts in communities which have suffered major 

2 manufacturing job losses or a major manufac3 turing job loss event, as designated by the Sec4 retary.’’. 

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

6 this section shall apply to calendar years beginning after 

7 December 31, 2013. 

8 SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE 

9 CREDIT. 

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

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

12 ‘‘January 1, 2016’’. 

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

14 this section shall apply to expenditures paid or incurred 

15 in taxable years beginning after December 31, 2013. 

16 SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING 

17 CREDIT. 

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

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

20 ‘‘December 31, 2015’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2013. 


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1 SEC. 118. EXTENSION AND MODIFICATION OF EMPLOYER 

2 WAGE CREDIT FOR EMPLOYEES WHO ARE AC3 TIVE DUTY MEMBERS OF THE UNIFORMED 

4 SERVICES. 

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

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

7 ‘‘December 31, 2015’’. 

8 (b) APPLICABILITY TO ALL EMPLOYERS.— 

9 (1) IN GENERAL.—Subsection (a) of section 

10 45P is amended by striking ‘‘, in the case of an eli11 gible small business employer’’. 

12 (2) CONFORMING AMENDMENT.—Paragraph (3) 

13 of section 45P(b) is amended to read as follows: 

14 ‘‘(3) CONTROLLED GROUPS.—All persons treat15 ed as a single employer under subsection (b), (c), 

16 (m), or (o) of section 414 shall be treated as a single 

17 employer.’’. 

18 (c) EXPANSION TO 100 PERCENT OF ELIGIBLE DIF19 FERENTIAL WAGE PAYMENTS.—Subsection (a) of section 

20 45P is amended by striking ‘‘20 percent of the sum’’ and 

21 inserting ‘‘the sum’’. 

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

23 this section shall apply to payments made after December 

24 31, 2013. 


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1 SEC. 119. EXTENSION AND MODIFICATION OF WORK OP2 PORTUNITY TAX CREDIT. 

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

4 amended by striking ‘‘for the employer’’ and all that fol5 lows and inserting ‘‘for the employer after December 31, 

6 2015’’. 

7 (b) CREDIT FOR HIRING LONG-TERM UNEMPLOY8 MENT RECIPIENTS.— 

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

10 51(d) is amended by striking ‘‘or’’ at the end of sub11 paragraph (H), by striking the period at the end of 

12 subparagraph (I) and inserting ‘‘, or’’, and by add13 ing at the end the following new subparagraph: 

14 ‘‘(J) a qualified long-term unemployment 

15 recipient.’’. 

16 (2) QUALIFIED LONG-TERM UNEMPLOYMENT

17 RECIPIENT.—Subsection (d) of section 51 is amend18 ed by adding at the end the following new para19 graph: 

20 ‘‘(15) QUALIFIED LONG-TERM UNEMPLOYMENT

21 RECIPIENT.—The term ‘qualified long-term unem22 ployment recipient’ means any individual who is cer23 tified by the designated local agency as being in a 

24 period of unemployment which— 

25 ‘‘(A) is not less than 27 consecutive weeks, 

26 and 


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1 ‘‘(B) includes a period in which the indi2 vidual was receiving unemployment compensa3 tion under State or Federal law.’’. 

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

5 this section shall apply to individuals who begin work for 

6 the employer after December 31, 2013. 

7 SEC. 120. EXTENSION AND MODIFICATION OF QUALIFIED 

8 ZONE ACADEMY BONDS. 

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

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

11 2014, and 2015’’. 

12 (b) REDUCTION OF PRIVATE BUSINESS CONTRIBU13 TION REQUIREMENT.—Subsection (b) of section 54E is 

14 amended by striking ‘‘10 percent’’ and inserting ‘‘5 per15 cent’’. 

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

17 subsections (a) and (b) shall apply to obligations issued 

18 after December 31, 2013. 

19 (d) TECHNICAL CORRECTION AND CONFORMING

20 AMENDMENT.— 

21 (1) IN GENERAL.—Clause (iii) of section 

22 6431(f)(3)(A) is amended— 

23 (A) by striking ‘‘2011’’ and inserting 

24 ‘‘years after 2010’’, and 


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1 (B) by striking ‘‘of such allocation’’ and 

2 inserting ‘‘of any such allocation’’. 

3 (2) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall take effect as if included in 

5 section 310 of the American Taxpayer Relief Act of 

6 2012. 

7 SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN 

8 RACE HORSES AS 3-YEAR PROPERTY. 

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

10 is amended— 

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

12 (I) and inserting ‘‘January 1, 2016’’, and 

13 (2) by striking ‘‘December 31, 2013’’ in sub14 clause (II) and inserting ‘‘December 31, 2015’’. 

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

16 this section shall apply to property placed in service after 

17 December 31, 2013. 

18 SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE19 COVERY FOR QUALIFIED LEASEHOLD IM20 PROVEMENTS, QUALIFIED RESTAURANT 

21 BUILDINGS AND IMPROVEMENTS, AND 

22 QUALIFIED RETAIL IMPROVEMENTS. 

23 (a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec24 tion 168(e)(3)(E) are each amended by striking ‘‘January 

25 1, 2014’’ and inserting ‘‘January 1, 2016’’. 


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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. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 

5 MOTORSPORTS ENTERTAINMENT COM6 PLEXES. 

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

8 168(i)(15) is amended by striking ‘‘December 31, 2013’’ 

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

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

11 this section shall apply to property placed in service after 

12 December 31, 2013. 

13 SEC. 124. EXTENSION OF ACCELERATED DEPRECIATION 

14 FOR BUSINESS PROPERTY ON AN INDIAN 

15 RESERVATION. 

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

17 is amended by striking ‘‘December 31, 2013’’ and insert18 ing ‘‘December 31, 2015’’. 

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

20 this section shall apply to property placed in service after 

21 December 31, 2013. 

22 SEC. 125. EXTENSION OF BONUS DEPRECIATION. 

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

24 is amended— 


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1 (1) by striking ‘‘January 1, 2015’’ in subpara2 graph (A)(iv) and inserting ‘‘January 1, 2017’’, and 

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

4 it appears and inserting ‘‘January 1, 2016’’. 

5 (b) SPECIAL RULE FOR FEDERAL LONG-TERM CON6 TRACTS.—Clause (ii) of section 460(c)(6)(B) is amended 

7 by striking ‘‘January 1, 2014 (January 1, 2015’’ and in8 serting ‘‘January 1, 2016 (January 1, 2017’’. 

9 (c) EXTENSION OF ELECTION TO ACCELERATE THE

10 AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 

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

12 168(k)(4)(D)(iii) is amended by striking ‘‘January 

13 1, 2014’’ and inserting ‘‘January 1, 2016’’. 

14 (2) ROUND 4 EXTENSION PROPERTY.—Para15 graph (4) of section 168(k) is amended by adding at 

16 the end the following new subparagraph: 

17 ‘‘(K) SPECIAL RULES FOR ROUND 4 EX18 TENSION PROPERTY.— 

19 ‘‘(i) IN GENERAL.—In the case of 

20 round 4 extension property, in applying 

21 this paragraph to any taxpayer— 

22 ‘‘(I) the limitation described in 

23 subparagraph (B)(i) and the business 

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1 paragraph (E)(iii) thereof shall not 

2 apply, and 

3 ‘‘(II) the bonus depreciation 

4 amount, maximum amount, and max5 imum increase amount shall be com6 puted separately from amounts com7 puted with respect to eligible qualified 

8 property which is not round 4 exten9 sion property. 

10 ‘‘(ii) ELECTION.— 

11 ‘‘(I) A taxpayer who has an elec12 tion in effect under this paragraph for 

13 round 3 extension property shall be 

14 treated as having an election in effect 

15 for round 4 extension property unless 

16 the taxpayer elects to not have this 

17 paragraph apply to round 4 extension 

18 property. 

19 ‘‘(II) A taxpayer who does not 

20 have an election in effect under this 

21 paragraph for round 3 extension prop22 erty may elect to have this paragraph 

23 apply to round 4 extension property. 

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1 graph, the term ‘round 4 extension prop2 erty’ means property which is eligible 

3 qualified property solely by reason of the 

4 extension of the application of the special 

5 allowance under paragraph (1) pursuant to 

6 the amendments made by section 215(a) of 

7 the EXPIRE Act of 2014 (and the appli8 cation of such extension to this paragraph 

9 pursuant to the amendment made by sec10 tion 215(c) of such Act).’’. 

11 (d) CONFORMING AMENDMENTS.— 

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

13 168 is amended by striking ‘‘JANUARY 1, 2014’’ and 

14 inserting ‘‘JANUARY 1, 2016’’. 

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

16 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

17 1, 2014’’ and inserting ‘‘PRE-JANUARY 1, 2016’’. 

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

19 amended by striking ‘‘January 1, 2014’’ and insert20 ing ‘‘January 1, 2016’’. 

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

22 amended by striking ‘‘January 1, 2014’’ and insert23 ing ‘‘January 1, 2016’’. 


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

2 is amended by striking ‘‘January 1, 2014’’ and in3 serting ‘‘January 1, 2016’’. 

4 (e) TECHNICAL AMENDMENT RELATING TO SECTION

5 331 OF THE AMERICAN TAXPAYER RELIEF ACT OF

6 2012.— 

7 (1) IN GENERAL.—Clause (iii) of section 

8 168(k)(4)(J) is amended by striking ‘‘any taxable 

9 year’’ and inserting ‘‘its first taxable year’’. 

10 (2) EFFECTIVE DATE.—The amendment made 

11 by this subsection shall take effect as if included in 

12 the provision of the American Taxpayer Relief Act 

13 of 2012 to which it relates. 

14 (f) EFFECTIVE DATE.—Except as provided in sub15 section (e)(2), the amendments made by this section shall 

16 apply to property placed in service after December 31, 

17 2013, in taxable years ending after such date. 

18 SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUC19 TION FOR CONTRIBUTIONS OF FOOD INVEN20 TORY. 

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

22 170(e)(3)(C) is amended by striking ‘‘December 31, 

23 2013’’ and inserting ‘‘December 31, 2015’’. 


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

2 this section shall apply to contributions made after De3 cember 31, 2013. 

4 SEC. 127. EXTENSION AND MODIFICATION OF INCREASED 

5 EXPENSING LIMITATIONS AND TREATMENT 

6 OF CERTAIN REAL PROPERTY AS SECTION 

7 179 PROPERTY. 

8 (a) IN GENERAL.— 

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

10 amended— 

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

12 2012, or 2013’’ in subparagraph (B) and in13 serting ‘‘beginning after 2009 and before 

14 2016’’, and 

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

16 (C) and inserting ‘‘2015’’. 

17 (2) REDUCTION IN LIMITATION.—Section 

18 179(b)(2) is amended— 

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

20 2012, or 2013’’ in subparagraph (B) and in21 serting ‘‘beginning after 2009 and before 

22 2016’’, and 

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

24 (C) and inserting ‘‘2015’’. 


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1 (b) COMPUTER SOFTWARE.—Section 

2 179(d)(1)(A)(ii) is amended by striking ‘‘2014’’ and in3 serting ‘‘2016’’. 

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

5 striking ‘‘2014’’ and inserting ‘‘2016’’. 

6 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

7 REAL PROPERTY.— 

8 (1) IN GENERAL.—Section 179(f)(1) is amend9 ed by striking ‘‘beginning in 2010, 2011, 2012, or 

10 2013’’ and inserting ‘‘beginning after 2009 and be11 fore 2016’’. 

12 (2) CARRYOVER LIMITATION.— 

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

14 amended by striking ‘‘2013’’ each place it ap15 pears and inserting ‘‘2015’’. 

16 (B) CONFORMING AMENDMENT.—The 

17 heading of subparagraph (C) of section 

18 179(f)(4) is amended by striking ‘‘2011 AND

19 2012’’ and inserting ‘‘2011, 2012, 2013, AND

20 2014’’. 

21 (e) ADJUSTMENT FOR INFLATION.—Subsection (b) 

22 of section 179 of the Internal Revenue Code of 1986 is 

23 amended by adding at the end the following new para24 graph: 

25 ‘‘(6) INFLATION ADJUSTMENT.— 


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1 ‘‘(A) IN GENERAL.—In the case of any 

2 taxable year beginning after 2013, the 

3 $500,000 amount in paragraph (1)(B) and the 

4 $2,000,000 amount in paragraph (2)(B) shall 

5 each be increased by an amount equal to— 

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

7 ‘‘(ii) the cost-of-living adjustment de8 termined under section 1(f)(3) for the cal9 endar year in which the taxable year be10 gins, by substituting ‘calendar year 2012’ 

11 for ‘calendar year 1992’ in subparagraph 

12 (B) thereof. 

13 ‘‘(B) ROUNDING.— 

14 ‘‘(i) DOLLAR LIMITATION.—If the 

15 amount in paragraph (1)(B) as increased 

16 under subparagraph (A) is not a multiple 

17 of $1,000, such amount shall be rounded 

18 to the nearest multiple of $1,000. 

19 ‘‘(ii) PHASEOUT AMOUNT.—If the 

20 amount in paragraph (2)(B) as increased 

21 under subparagraph (A) is not a multiple 

22 of $10,000, such amount shall be rounded 

23 to the nearest multiple of $10,000.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2013. 

4 SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE 

5 SAFETY EQUIPMENT. 

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

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

8 ‘‘December 31, 2015’’. 

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

10 this section shall apply to property placed in service after 

11 December 31, 2013. 

12 SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR 

13 CERTAIN FILM AND TELEVISION PRODUC14 TIONS; SPECIAL EXPENSING FOR LIVE THE15 ATRICAL PRODUCTIONS. 

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

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

18 ‘‘December 31, 2015’’. 

19 (b) APPLICATION TO LIVE PRODUCTIONS.— 

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

21 181(a) is amended by inserting ‘‘, and any qualified 

22 live theatrical production,’’ after ‘‘any qualified film 

23 or television production’’. 

24 (2) CONFORMING AMENDMENTS.—Section 181 

25 is amended— 


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1 (A) by inserting ‘‘or any qualified live the2 atrical production’’ after ‘‘qualified film or tele3 vision production’’ each place it appears in sub4 sections (a)(2), (b), and (c)(1), 

5 (B) by inserting ‘‘or qualified live theat6 rical productions’’ after ‘‘qualified film or tele7 vision productions’’ in subsection (f), and 

8 (C) by inserting ‘‘AND LIVE THEAT9 RICAL’’ after ‘‘FILM AND TELEVISION’’ in 

10 the heading. 

11 (3) CLERICAL AMENDMENT.—The item relating 

12 to section 181 in the table of sections for part VI 

13 of subchapter B of chapter 1 is amended to read as 

14 follows: 

‘‘Sec. 181. Treatment of certain qualified film and television and live theatrical 

productions.’’. 

15 (c) QUALIFIED LIVE THEATRICAL PRODUCTION.— 

16 Section 181 is amended— 

17 (1) by redesignating subsections (e) and (f), as 

18 amended by subsections (a) and (b), as subsections 

19 (f) and (g), respectively, and 

20 (2) by inserting after subsection (d) the fol21 lowing new subsection: 

22 ‘‘(e) QUALIFIED LIVE THEATRICAL PRODUCTION.— 

23 For purposes of this section— 


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1 ‘‘(1) IN GENERAL.—The term ‘qualified live 

2 theatrical production’ means any production de3 scribed in paragraph (2) if 75 percent of the total 

4 compensation of the production is qualified com5 pensation (as defined in subsection (d)(3)). 

6 ‘‘(2) PRODUCTION.— 

7 ‘‘(A) IN GENERAL.—A production is de8 scribed in this paragraph if such production is 

9 a live staged production of a play (with or with10 out music) which is derived from a written book 

11 or script and is produced or presented by a tax12 able entity in any venue which has an audience 

13 capacity of not more than 3,000 or a series of 

14 venues the majority of which have an audience 

15 capacity of not more than 3,000. 

16 ‘‘(B) TOURING COMPANIES, ETC.—In the 

17 case of multiple live staged productions— 

18 ‘‘(i) for which the election under this 

19 section would be allowable to the same tax20 payer, and 

21 ‘‘(ii) which are— 

22 ‘‘(I) separate phases of a produc23 tion, or 

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1 ferent geographical locations (not in2 cluding multiple performance locations 

3 of any one touring production), 

4 each such live staged production shall be treat5 ed as a separate production. 

6 ‘‘(C) PHASE.—For purposes of subpara7 graph (B), the term ‘phase’ with respect to any 

8 qualified live theatrical production refers to 

9 each of the following, but only if each of the fol10 lowing is treated by the taxpayer as a separate 

11 activity for all purposes of this title: 

12 ‘‘(i) The initial staging of a live theat13 rical production. 

14 ‘‘(ii) Subsequent additional stagings 

15 or touring of such production which are 

16 produced by the same producer as the ini17 tial staging. 

18 ‘‘(D) EXCEPTION.—A production is not de19 scribed in this paragraph if such production in20 cludes or consists of any performance of con21 duct described in section 2257(h)(1) of title 18, 

22 United States Code.’’. 

23 (d) EFFECTIVE DATES.— 


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

2 this section shall apply to productions commencing 

3 after December 31, 2013. 

4 (2) COMMENCEMENT.—For purposes of para5 graph (1), the date on which a qualified live theat6 rical production commences is the date of the first 

7 public performance of such production for a paying 

8 audience. 

9 SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH 

10 RESPECT TO INCOME ATTRIBUTABLE TO DO11 MESTIC PRODUCTION ACTIVITIES IN PUERTO 

12 RICO. 

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

14 199(d)(8) is amended— 

15 (1) by striking ‘‘first 8 taxable years’’ and in16 serting ‘‘first 10 taxable years’’, and 

17 (2) by striking ‘‘January 1, 2014’’ and insert18 ing ‘‘January 1, 2016’’. 

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

20 this section shall apply to taxable years beginning after 

21 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, 2015’’. 

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 2015’’. 

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, 2015’’. 

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, 2016’’, and 

3 (2) by striking ‘‘December 31, 2013’’ and in4 serting ‘‘December 31, 2015’’. 

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, 2016’’. 

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, 2016’’. 

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, 2016’’, and 

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

11 inserting ‘‘2013, 2014, AND 2015’’. 

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, 2015’’. 

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, 2014, or 2015’’, and 

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

9 and inserting ‘‘2012, 2013, 2014, AND 2015’’. 

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, 2015’’. 

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) TECHNICAL AMENDMENTS RELATING TO SEC6 TION 753 OF THE TAX RELIEF, UNEMPLOYMENT INSUR7 ANCE REAUTHORIZATION, AND JOB CREATION ACT OF

8 2010; EXTENSION OF NONRECOGNITION OF GAIN ON

9 ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS.— 

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

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

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

13 by adding at the end the following new clause: 

14 ‘‘(iv) ‘January 1, 2016’ were sub15 stituted for ‘January 1, 2010’ each place it 

16 appears.’’. 

17 (d) EFFECTIVE DATES.— 

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

19 subsection (a) shall apply to periods after December 

20 31, 2013. 

21 (2) TECHNICAL AMENDMENTS.—The amend22 ments made by subsection (c) shall take effect as if 

23 included in section 753 of the Tax Relief, Unemploy24 ment Insurance Reauthorization, and Job Creation 

25 Act of 2010. 


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1 SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT 

2 ON COVER OVER OF RUM EXCISE TAXES TO 

3 PUERTO RICO AND THE VIRGIN ISLANDS. 

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

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

6 ‘‘January 1, 2016’’. 

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

8 this section shall apply to distilled spirits brought into the 

9 United States after December 31, 2013. 

10 SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DE11 VELOPMENT CREDIT. 

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

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

14 is amended— 

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

16 it appears and inserting ‘‘January 1, 2016’’, 

17 (2) by striking ‘‘first 8 taxable years’’ in para18 graph (1) and inserting ‘‘first 10 taxable years’’, 

19 and 

20 (3) by striking ‘‘first 2 taxable years’’ in para21 graph (2) and inserting ‘‘first 4 taxable years’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2013. 


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1 Subtitle C—Energy Tax Extenders 

2 SEC. 151. EXTENSION AND MODIFICATION OF CREDIT FOR 

3 NONBUSINESS ENERGY PROPERTY. 

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

5 is amended by striking ‘‘December 31, 2013’’ and insert6 ing ‘‘December 31, 2015’’. 

7 (b) UPDATED ENERGY STAR REQUIREMENTS FOR

8 WINDOWS, DOORS, SKYLIGHTS, AND ROOFING.— 

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

10 25C(c) is amended by striking ‘‘which meets’’ and 

11 all that follows through ‘‘requirements)’’. 

12 (2) ENERGY EFFICIENT BUILDING ENVELOPE

13 COMPONENT.—Subsection (c) of section 25C is 

14 amended by redesignating paragraphs (2) and (3) as 

15 paragraphs (3) and (4), respectively, and by insert16 ing after paragraph (1) the following new para17 graph: 

18 ‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE

19 COMPONENT.—The term ‘energy efficient building 

20 envelope component’ means a building envelope com21 ponent which meets— 

22 ‘‘(A) applicable Energy Star program re23 quirements, in the case of a roof or roof prod24 ucts, 


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1 ‘‘(B) version 6.0 Energy Star program re2 quirements, in the case of an exterior window, 

3 a skylight, or an exterior door, and 

4 ‘‘(C) the prescriptive criteria for such com5 ponent established by the 2009 International 

6 Energy Conservation Code, as such Code (in7 cluding supplements) is in effect on the date of 

8 the enactment of the American Recovery and 

9 Reinvestment Tax Act of 2009, in the case of 

10 any other component.’’. 

11 (3) CONFORMING AMENDMENT.—Subparagraph 

12 (D) of section 25C(c)(3), as so redesignated, is 

13 amended to read as follows: 

14 ‘‘(D) any roof or roof products which are 

15 installed on a dwelling unit and are specifically 

16 and primarily designed to reduce the heat gain 

17 of such dwelling unit.’’. 

18 (c) SEPARATE STANDARDS FOR TANKLESS AND

19 STORAGE WATER HEATERS.— 

20 (1) IN GENERAL.—Subparagraph (D) of section 

21 25C(d)(3) is amended by striking ‘‘which has either’’ 

22 and all that follows and inserting ‘‘which has ei23 ther— 

24 ‘‘(i) in the case of a storage water 

25 heater, an energy factor of at least 0.80 or 


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1 a thermal efficiency of at least 90 percent, 

2 and 

3 ‘‘(ii) in the case of any other water 

4 heater, an energy factor of at least 0.90 or 

5 a thermal efficiency of at least 90 percent, 

6 and’’. 

7 (2) STORAGE WATER HEATERS.—Paragraph (3) 

8 of section 25C(d) is amended by adding at the end 

9 the following flush sentence: 

10 ‘‘For purposes of subparagraph (D)(i), the term 

11 ‘storage water heater’ means a water heater that has 

12 a water storage capacity of more than 20 gallons but 

13 not more than 55 gallons.’’. 

14 (d) MODIFICATION OF TESTING STANDARDS FOR

15 BIOMASS STOVES.—Subparagraph (E) of section 

16 25C(d)(3) is amended by inserting before the period the 

17 following: ‘‘, when tested using the higher heating value 

18 of the fuel and in accordance with the Canadian Standards 

19 Administration B415.1 test protocol’’. 

20 (e) SEPARATE STANDARD FOR OIL HOT WATER

21 BOILERS.—Paragraph (4) of section 25C(d) is amended 

22 by striking ‘‘95’’ and inserting ‘‘95 (90 in the case of an 

23 oil hot water boiler)’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2013. 

4 SEC. 152. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN 

5 ELECTRIC VEHICLES. 

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

7 30D(g)(3) is amended by striking ‘‘January 1, 2014’’ and 

8 inserting ‘‘January 1, 2014 (January 1, 2016, in the case 

9 of a vehicle that has 2 wheels).’’. 

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

11 this section shall apply to vehicles acquired after Decem12 ber 31, 2013. 

13 SEC. 153. EXTENSION OF SECOND GENERATION BIOFUEL 

14 PRODUCER CREDIT. 

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

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

17 ‘‘January 1, 2016’’. 

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

19 this subsection shall apply to qualified second generation 

20 biofuel production after December 31, 2013. 

21 SEC. 154. EXTENSION OF INCENTIVES FOR BIODIESEL AND 

22 RENEWABLE DIESEL. 

23 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE24 SEL USED AS FUEL.—Subsection (g) of section 40A is 


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

2 ‘‘December 31, 2015’’. 

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

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

5 31, 2013. 

6 SEC. 155. EXTENSION AND MODIFICATION OF PRODUCTION 

7 CREDIT FOR INDIAN COAL FACILITIES 

8 PLACED IN SERVICE BEFORE 2009. 

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

10 45(e)(10) is amended by striking ‘‘8-year period’’ each 

11 place it appears and inserting ‘‘10-year period’’. 

12 (b) APPLICATION TO NEW LEASES OR SUBLEASES.— 

13 Paragraph (10) of section 45(d) is amended by inserting 

14 before the period the following: ‘‘, and any new lease or 

15 sublease of such a facility’’. 

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

17 this section shall apply to coal produced after December 

18 31, 2013. 

19 SEC. 156. 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 2016’’: 


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1 (1) Paragraph (1). 

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

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

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

5 (5) Paragraph (6). 

6 (6) Paragraph (7). 

7 (7) Paragraph (9). 

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

9 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

10 FACILITIES AS ENERGY PROPERTY.—Clause (ii) of sec11 tion 48(a)(5)(C) is amended by striking ‘‘January 1, 

12 2014’’ and inserting ‘‘January 1, 2016’’. 

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

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

15 SEC. 157. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

16 NEW HOMES. 

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

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

19 ‘‘December 31, 2015’’. 

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

21 this section shall apply to homes acquired after December 

22 31, 2013. 


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1 SEC. 158. 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, 2016’’. 

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. 159. EXTENSION AND MODIFICATION OF ENERGY EF11 FICIENT COMMERCIAL BUILDINGS DEDUC12 TION. 

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

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

15 ‘‘December 31, 2015’’. 

16 (b) ALLOCATIONS TO INDIAN TRIBAL GOVERN17 MENTS.—Paragraph (4) of section 179D(d) is amended 

18 by striking ‘‘or local’’ and inserting ‘‘local, or Indian trib19 al’’. 

20 (c) ALLOCATIONS TO CERTAIN NONPROFIT ORGANI21 ZATIONS.— 

22 (1) IN GENERAL.—Paragraph (4) of section 

23 179D(d), as amended by subsection (b), is amended 

24 by inserting ‘‘, or by an organization that is de25 scribed in section 501(c)(3) and exempt from tax 


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1 under section 501(a)’’ after ‘‘political subdivision 

2 thereof’’. 

3 (2) CLERICAL AMENDMENT.—The heading of 

4 paragraph (4) of section 179D(d) is amended by in5 serting ‘‘AND PROPERTY HELD BY CERTAIN NON6 PROFITS’’ after ‘‘PUBLIC PROPERTY’’. 

7 (d) UPDATED ASHRAE STANDARDS FOR 2015.— 

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

9 179D(c) is amended by striking ‘‘Standard 90.1- 

10 2001’’ each place it appears and inserting ‘‘Stand11 ard 90.1-2007’’. 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) Paragraph (2) of section 179D(c) is 

14 amended to read as follows: 

15 ‘‘(2) STANDARD 90.1-2007.—The term ‘Standard 

16 90.1-2007’ means Standard 90.1-2007 of the Amer17 ican Society of Heating, Refrigerating, and Air Con18 ditioning Engineers and the Illuminating Engineer19 ing Society of North America (as in effect on the 

20 day before the date of the adoption of Standard 

21 90.1-2010 of such Societies).’’. 

22 (B) Subsection (f) of section 179D is 

23 amended by striking ‘‘Standard 90.1-2001’’ 

24 each place it appears in paragraphs (1) and 

25 (2)(C)(i) and inserting ‘‘Standard 90.1-2007’’. 


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1 (C) Paragraph (1) of section 179D(f) is 

2 amended— 

3 (i) by striking ‘‘Table 9.3.1.1’’ and in4 serting ‘‘Table 9.5.1’’, and 

5 (ii) by striking ‘‘Table 9.3.1.2’’ and 

6 inserting ‘‘Table 9.6.1’’. 

7 (3) EFFECTIVE DATE.—The amendments made 

8 by this paragraph shall apply to property placed in 

9 service after December 31, 2014. 

10 (e) EFFECTIVE DATE.—Except as provided in sub11 section (d)(3), the amendments made by this section shall 

12 apply to property placed in service after December 31, 

13 2013. 

14 SEC. 160. EXTENSION OF SPECIAL RULE FOR SALES OR DIS15 POSITIONS TO IMPLEMENT FERC OR STATE 

16 ELECTRIC RESTRUCTURING POLICY FOR 

17 QUALIFIED ELECTRIC UTILITIES. 

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

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

20 ‘‘January 1, 2016’’. 

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

22 this section shall apply to dispositions after December 31, 

23 2013. 


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1 SEC. 161. EXTENSION OF EXCISE TAX CREDITS RELATING 

2 TO CERTAIN FUELS. 

3 (a) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

4 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX5 TURES.— 

6 (1) Paragraph (6) of section 6426(c) is amend7 ed by striking ‘‘December 31, 2013’’ and inserting 

8 ‘‘December 31, 2015’’. 

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

10 amended by striking ‘‘December 31, 2013’’ and in11 serting ‘‘December 31, 2015’’. 

12 (b) EXTENSION OF ALTERNATIVE FUELS EXCISE

13 TAX CREDITS.— 

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

15 6426(e)(3) are each amended by striking ‘‘December 

16 31, 2013’’ and inserting ‘‘December 31, 2015’’. 

17 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

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

19 amended by striking ‘‘December 31, 2013’’ and in20 serting ‘‘December 31, 2015’’. 

21 (c) EXTENSION OF ALTERNATIVE FUELS EXCISE

22 TAX CREDITS RELATING TO LIQUEFIED HYDROGEN.— 

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

24 6426(e)(3), as amended by subsection (b), are each 

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


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1 case of any sale or use involving liquefied hydro2 gen)’’. 

3 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

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

5 amended— 

6 (A) by striking ‘‘except as provided in sub7 paragraph (D), any’’ in subparagraph (C), as 

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

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

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

11 (C) by striking subparagraph (D) and re12 designating subparagraph (E) as subparagraph 

13 (D). 

14 (d) EFFECTIVE DATES.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section 

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

18 2013. 

19 (2) LIQUEFIED HYDROGEN.—The amendments 

20 made by subsection (c) shall apply to fuels sold or 

21 used after September 30, 2014. 

22 (e) SPECIAL RULE FOR CERTAIN PERIODS DURING

23 2014.—Notwithstanding any other provision of law, in the 

24 case of— 


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1 (1) any biodiesel mixture credit properly deter2 mined under section 6426(c) of the Internal Revenue 

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

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

5 and 

6 (2) any alternative fuel credit properly deter7 mined under section 6426(d) of such Code for such 

8 periods, 

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

10 attributable to such credit (including any payment under 

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

12 manner as the Secretary of the Treasury (or the Sec13 retary’s delegate) shall provide. Such Secretary shall issue 

14 guidance within 30 days after the date of the enactment 

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

16 covering periods described in the preceding sentence. Such 

17 guidance shall provide for a 180-day period for the sub18 mission of such claims (in such manner as prescribed by 

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

20 guidance is issued. Such claims shall be paid by such Sec21 retary not later than 60 days after receipt. If such Sec22 retary has not paid pursuant to a claim filed under this 

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

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


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1 date determined by using the overpayment rate and meth2 od under section 6621 of such Code. 

3 TITLE II—PROVISIONS EXPIRING 

4 IN 2014 

5 Subtitle A—Energy Tax Extenders 

6 SEC. 201. EXTENSION OF CREDIT FOR NEW QUALIFIED 

7 FUEL CELL MOTOR VEHICLES. 

8 (a) IN GENERAL.—Paragraph (1) of section 30B(k) 

9 is amended by striking ‘‘December 31, 2014’’ and insert10 ing ‘‘December 31, 2015’’. 

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

12 this section shall apply to property purchased after De13 cember 31, 2014. 

14 SEC. 202. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

15 VEHICLE REFUELING PROPERTY. 

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

17 amended by striking ‘‘placed in service’’ and all that fol18 lows and inserting ‘‘placed in service after December 31, 

19 2015.’’. 

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

21 this section shall apply to property placed in service after 

22 December 31, 2013. 


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1 Subtitle B—Extenders Relating to 

2 Multiemployer Defined Benefit 

3 Pension Plans 

4 SEC. 251. EXTENSION OF AUTOMATIC EXTENSION OF AMOR5 TIZATION PERIODS. 

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

7 431(d)(1) is amended by striking ‘‘December 31, 2014’’ 

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

9 (b) AMENDMENT TO EMPLOYEE RETIREMENT IN10 COME SECURITY ACT OF 1974.—Subparagraph (C) of sec11 tion 304(d)(1) of the Employee Retirement Income Secu12 rity Act of 1974 (29 U.S.C. 1084(d)(1)(C)) is amended 

13 by striking ‘‘December 31, 2014’’ and inserting ‘‘Decem14 ber 31, 2015’’. 

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

16 this section shall apply to applications submitted under 

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

18 1986 and section 304(d)(1)(C) of the Employee Retire19 ment Income Security Act of 1974 after December 31, 

20 2014. 

21 SEC. 252. EXTENSION OF FUNDING IMPROVEMENT AND RE22 HABILITATION PLAN RULES. 

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

24 221(c) of the Pension Protection Act of 2006 are each 


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

2 ‘‘December 31, 2015’’. 

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

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

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

6 ‘‘January 1, 2016’’. 

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

8 this section shall apply to plan years beginning after De9 cember 31, 2014. 

10 TITLE III—REVENUE 

11 PROVISIONS 

12 SEC. 301. PENALTY FOR FAILURE TO MEET DUE DILIGENCE 

13 REQUIREMENTS FOR THE CHILD TAX CRED14 IT. 

15 (a) IN GENERAL.—Section 6695 is amended by add16 ing at the end the following new subsection: 

17 ‘‘(h) FAILURE TO BE DILIGENT IN DETERMINING

18 ELIGIBILITY FOR CHILD TAX CREDIT.—Any person who 

19 is a tax return preparer with respect to any return or 

20 claim for refund who fails to comply with due diligence 

21 requirements imposed by the Secretary by regulations with 

22 respect to determining eligibility for, or the amount of, 

23 the credit allowable by section 24 shall pay a penalty of 

24 $500 for each such failure.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

4 SEC. 302. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO 

5 MEDICARE PROVIDERS AND SUPPLIERS. 

6 (a) IN GENERAL.—Paragraph (3) of section 6331(h) 

7 is amended by striking the period at the end and inserting 

8 ‘‘, or to a Medicare provider or supplier under title XVIII 

9 of the Social Security Act.’’. 

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

11 this section shall apply to payments made on or after the 

12 date which is 180 days after the date of the enactment 

13 of this Act. 

14 SEC. 303. EXCLUSION FROM GROSS INCOME OF CERTAIN 

15 CLEAN COAL POWER GRANTS TO NON-COR16 PORATE TAXPAYERS. 

17 (a) GENERAL RULE.—In the case of an eligible tax18 payer other than a corporation, gross income for purposes 

19 of the Internal Revenue Code of 1986 shall not include 

20 any amount received under section 402 of the Energy Pol21 icy Act of 2005. 

22 (b) REDUCTION IN BASIS.—The basis of any prop23 erty subject to the allowance for depreciation under the 

24 Internal Revenue Code of 1986 which is acquired with any 

25 amount to which subsection (a) applies during the 12- 


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1 month period beginning on the day such amount is re2 ceived shall be reduced by an amount equal to such 

3 amount. The excess (if any) of such amount over the 

4 amount of the reduction under the preceding sentence 

5 shall be applied to the reduction (as of the last day of 

6 the period specified in the preceding sentence) of the basis 

7 of any other property held by the taxpayer. The particular 

8 properties to which the reductions required by this sub9 section are allocated shall be determined by the Secretary 

10 of the Treasury (or the Secretary’s delegate) under regula11 tions similar to the regulations under section 362(c)(2) of 

12 such Code. 

13 (c) LIMITATION TO AMOUNTS WHICH WOULD BE

14 CONTRIBUTIONS TO CAPITAL.—Subsection (a) shall not 

15 apply to any amount unless such amount, if received by 

16 a corporation, would be excluded from gross income under 

17 section 118 of the Internal Revenue Code of 1986. 

18 (d) ELIGIBLE TAXPAYER.—For purposes of this sec19 tion, with respect to any amount received under section 

20 402 of the Energy Policy Act of 2005, the term ‘‘eligible 

21 taxpayer’’ means a taxpayer that makes a payment to the 

22 Secretary of the Treasury (or the Secretary’s delegate) 

23 equal to 1.18 percent of the amount so received. Such pay24 ment shall be made at such time and in such manner as 

25 such Secretary (or the Secretary’s delegate) shall preVerDate Mar 15 2010 22:41 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S2260.PCS S2260

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1 scribe. In the case of a partnership, such Secretary (or 

2 the Secretary’s delegate) shall prescribe regulations to de3 termine the allocation of such payment amount among the 

4 partners. 

5 (e) EFFECTIVE DATE.—This section shall apply to 

6 amounts received under section 402 of the Energy Policy 

7 Act of 2005 in taxable years beginning after December 

8 31, 2011. 

9 SEC. 304. REFORM OF RULES RELATING TO QUALIFIED TAX 

10 COLLECTION CONTRACTS. 

11 (a) REQUIREMENT TO COLLECT CERTAIN INACTIVE

12 TAX RECEIVABLES UNDER QUALIFIED TAX COLLECTION

13 CONTRACTS.—Section 6306 is amended by redesignating 

14 subsections (c) through (f) as subsections (d) through (g), 

15 respectively, and by inserting after subsection (b) the fol16 lowing new subsection: 

17 ‘‘(c) COLLECTION OF INACTIVE TAX RECEIV18 ABLES.— 

19 ‘‘(1) IN GENERAL.—Notwithstanding any other 

20 provision of law, the Secretary shall enter into one 

21 or more qualified tax collection contracts for the col22 lection of all outstanding inactive tax receivables. 

23 ‘‘(2) INACTIVE TAX RECEIVABLES.—For pur24 poses of this section— 


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1 ‘‘(A) IN GENERAL.—The term ‘inactive tax 

2 receivable’ means any tax receivable if— 

3 ‘‘(i) at any time after assessment, the 

4 Internal Revenue Service removes such re5 ceivable from the active inventory for lack 

6 of resources or inability to locate the tax7 payer, 

‘‘(ii) more than 1 8 ⁄3 of the period of the 

9 applicable statute of limitation has lapsed 

10 and such receivable has not been assigned 

11 for collection to any employee of the Inter12 nal Revenue Service, or 

13 ‘‘(iii) in the case of a receivable which 

14 has been assigned for collection, more than 

15 365 days have passed without interaction 

16 with the taxpayer or a third party for pur17 poses of furthering the collection of such 

18 receivable. 

19 ‘‘(B) TAX RECEIVABLE.—The term ‘tax re20 ceivable’ means any outstanding assessment 

21 which the Internal Revenue Service includes in 

22 potentially collectible inventory.’’. 

23 (b) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR

24 COLLECTION UNDER QUALIFIED TAX COLLECTION CON25 TRACTS.—Section 6306, as amended by subsection (a), is 


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1 amended by redesignating subsections (d) through (g) as 

2 subsections (e) through (h), respectively, and by inserting 

3 after subsection (c) the following new subsection: 

4 ‘‘(d) CERTAIN TAX RECEIVABLES NOT ELIGIBLE

5 FOR COLLECTION UNDER QUALIFIED TAX COLLECTIONS

6 CONTRACTS.—A tax receivable shall not be eligible for col7 lection pursuant to a qualified tax collection contract if 

8 such receivable— 

9 ‘‘(1) is subject to a pending or active offer-in10 compromise or installment agreement, 

11 ‘‘(2) is classified as an innocent spouse case, 

12 ‘‘(3) involves a taxpayer identified by the Sec13 retary as being— 

14 ‘‘(A) deceased, 

15 ‘‘(B) under the age of 18, 

16 ‘‘(C) in a designated combat zone, or 

17 ‘‘(D) a victim of tax-related identity theft, 

18 ‘‘(4) is currently under examination, litigation, 

19 criminal investigation, or levy, or 

20 ‘‘(5) is currently subject to a proper exercise of 

21 a right of appeal under this title.’’. 

22 (c) CONTRACTING PRIORITY.—Section 6306, as 

23 amended by the preceding provisions of this section, is 

24 amended by redesignating subsection (h) as subsection (i) 


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1 and by inserting after subsection (g) the following new 

2 subsection: 

3 ‘‘(h) CONTRACTING PRIORITY.—In contracting for 

4 the services of any person under this section, the Secretary 

5 shall utilize private collection contractors and debt collec6 tion centers on the schedule required under section 

7 3711(g) of title 31, United States Code, including the 

8 technology and communications infrastructure established 

9 therein, to the extent such private collection contractors 

10 and debt collection centers are appropriate to carry out 

11 the purposes of this section.’’. 

12 (d) DISCLOSURE OF RETURN INFORMATION.—Sec13 tion 6103(k) is amended by adding at the end the fol14 lowing new paragraph: 

15 ‘‘(11) QUALIFIED TAX COLLECTION CONTRAC16 TORS.—Persons providing services pursuant to a 

17 qualified tax collection contract under section 6306 

18 may, if speaking to a person who has identified him19 self or herself as having the name of the taxpayer 

20 to which a tax receivable (within the meaning of 

21 such section) relates, identify themselves as contrac22 tors of the Internal Revenue Service and disclose the 

23 business name of the contractor, and the nature, 

24 subject, and reason for the contact. Disclosures 

25 under this paragraph shall be made only in such sitVerDate Mar 15 2010 22:41 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S2260.PCS S2260

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1 uations and under such conditions as have been ap2 proved by the Secretary.’’. 

3 (e) TAXPAYERS AFFECTED BY FEDERALLY DE4 CLARED DISASTERS.—Section 6306, as amended by the 

5 preceding provisions of this section, is amended by redes6 ignating subsection (i) as subsection (j) and by inserting 

7 after subsection (h) the following new subsection: 

8 ‘‘(i) TAXPAYERS IN PRESIDENTIALLY DECLARED

9 DISASTER AREAS.—The Secretary may prescribe proce10 dures under which a taxpayer determined to be affected 

11 by a Federally declared disaster (as defined by section 

12 165(h)(3)(C)) may request— 

13 ‘‘(1) relief from immediate collection measures 

14 by contractors under this section, and 

15 ‘‘(2) a return of the inactive tax receivable to 

16 the inventory of the Internal Revenue Service to be 

17 collected by an employee thereof.’’. 

18 (f) REPORT TO CONGRESS.— 

19 (1) IN GENERAL.—Section 6306, as amended 

20 by the preceding provisions of this section, is amend21 ed by redesignating subsection (j) as subsection (k) 

22 and by inserting after subsection (i) the following 

23 new subsection: 

24 ‘‘(j) REPORT TO CONGRESS.—Not later than 90 days 

25 after the last day of each fiscal year (beginning with the 


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1 first such fiscal year ending after the date of the enact2 ment of this subsection), the Secretary shall submit to the 

3 Committee on Ways and Means of the House of Rep4 resentatives and the Committee on Finance of the Senate 

5 a report with respect to qualified tax collection contracts 

6 under this section which shall include— 

7 ‘‘(1) annually, with respect to such fiscal year— 

8 ‘‘(A) the total number and amount of tax 

9 receivables provided to each contractor for col10 lection under this section, 

11 ‘‘(B) the total amounts collected (and 

12 amounts of installment agreements entered into 

13 under subsection (b)(1)(B)) with respect to 

14 each contractor and the collection costs in15 curred (directly and indirectly) by the Internal 

16 Revenue Service with respect to such amounts, 

17 ‘‘(C) the impact of such contracts on the 

18 total number and amount of unpaid assess19 ments, and on the number and amount of as20 sessments collected by Internal Revenue Service 

21 personnel after initial contact by a contractor, 

22 ‘‘(D) the amount of fees retained by the 

23 Secretary under subsection (e) and a descrip24 tion of the use of such funds, and 


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1 ‘‘(E) a disclosure safeguard report in a 

2 form similar to that required under section 

3 6103(p)(5), and 

4 ‘‘(2) biannually (beginning with the second re5 port submitted under this subsection)— 

6 ‘‘(A) an independent evaluation of con7 tractor performance, and 

8 ‘‘(B) a measurement plan that includes a 

9 comparison of the best practices used by the 

10 private collectors to the collection techniques 

11 used by the Internal Revenue Service and 

12 mechanisms to identify and capture information 

13 on successful collection techniques used by the 

14 contractors that could be adopted by the Inter15 nal Revenue Service.’’. 

16 (2) REPEAL OF EXISTING REPORTING REQUIRE17 MENTS WITH RESPECT TO QUALIFIED TAX COLLEC18 TION CONTRACTS.—Section 881 of the American 

19 Jobs Creation Act of 2004 is amended by striking 

20 subsection (e). 

21 (g) EFFECTIVE DATES.— 

22 (1) IN GENERAL.—The amendments made by 

23 subsections (a) and (b) shall apply to tax receivables 

24 identified by the Secretary after the date of the en25 actment of this Act. 


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1 (2) CONTRACTING PRIORITY.—The Secretary 

2 shall begin entering into contracts and agreements 

3 as described in the amendment made by subsection 

4 (c) within 3 months after the date of the enactment 

5 of this Act. 

6 (3) DISCLOSURES.—The amendment made by 

7 subsection (d) shall apply to disclosures made after 

8 the date of the enactment of this Act. 

9 (4) PROCEDURES; REPORT TO CONGRESS.—The 

10 amendments made by subsections (e) and (f) shall 

11 take effect on the date of the enactment of this Act. 

12 SEC. 305. SPECIAL COMPLIANCE PERSONNEL PROGRAM. 

13 (a) IN GENERAL.—Subsection (e) of section 6306, as 

14 redesignated by section 604, is amended by striking ‘‘for 

15 collection enforcement activities of the Internal Revenue 

16 Service’’ in paragraph (2) and inserting ‘‘to fund the spe17 cial compliance personnel program account under section 

18 6307’’. 

19 (b) SPECIAL COMPLIANCE PERSONNEL PROGRAM

20 ACCOUNT.—Subchapter A of chapter 64 is amended by 

21 adding at the end the following new section: 

22 ‘‘SEC. 6307. SPECIAL COMPLIANCE PERSONNEL PROGRAM 

23 ACCOUNT. 

24 ‘‘(a) ESTABLISHMENT OF A SPECIAL COMPLIANCE

25 PERSONNEL PROGRAM ACCOUNT.—The Secretary shall 


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1 establish an account within the Department for carrying 

2 out a program consisting of the hiring, training, and em3 ployment of special compliance personnel, and shall trans4 fer to such account from time to time amounts retained 

5 by the Secretary under section 6306(e)(2). 

6 ‘‘(b) RESTRICTIONS.—The program described in sub7 section (a) shall be subject to the following restrictions: 

8 ‘‘(1) No funds shall be transferred to such ac9 count except as described in subsection (a). 

10 ‘‘(2) No other funds from any other source 

11 shall be expended for special compliance personnel 

12 employed under such program, and no funds from 

13 such account shall be expended for the hiring of any 

14 personnel other than special compliance personnel. 

15 ‘‘(3) Notwithstanding any other authority, the 

16 Secretary is prohibited from spending funds out of 

17 such account for any purpose other than for costs 

18 under such program associated with the employment 

19 of special compliance personnel and the retraining 

20 and reassignment of current noncollections personnel 

21 as special compliance personnel, and to reimburse 

22 the Internal Revenue Service or other government 

23 agencies for the cost of administering qualified tax 

24 collection contracts under section 6306. 


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1 ‘‘(c) REPORTING.—Not later than March of each 

2 year, the Commissioner of Internal Revenue shall submit 

3 a report to the Committees on Finance and Appropria4 tions of the Senate and the Committees on Ways and 

5 Means and Appropriations of the House of Representa6 tives consisting of the following: 

7 ‘‘(1) For the preceding fiscal year, all funds re8 ceived in the account established under subsection 

9 (a), administrative and program costs for the pro10 gram described in such subsection, the number of 

11 special compliance personnel hired and employed 

12 under the program, and the amount of revenue actu13 ally collected by such personnel. 

14 ‘‘(2) For the current fiscal year, all actual and 

15 estimated funds received or to be received in the ac16 count, all actual and estimated administrative and 

17 program costs, the number of all actual and esti18 mated special compliance personnel hired and em19 ployed under the program, and the actual and esti20 mated revenue actually collected or to be collected by 

21 such personnel. 

22 ‘‘(3) For the following fiscal year, an estimate 

23 of all funds to be received in the account, all esti24 mated administrative and program costs, the esti25 mated number of special compliance personnel hired 


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1 and employed under the program, and the estimated 

2 revenue to be collected by such personnel. 

3 ‘‘(d) DEFINITIONS.—For purposes of this section— 

4 ‘‘(1) SPECIAL COMPLIANCE PERSONNEL.—The 

5 term ‘special compliance personnel’ means individ6 uals employed by the Internal Revenue Service as 

7 field function collection officers or in a similar posi8 tion, or employed to collect taxes using the auto9 mated collection system or an equivalent replace10 ment system. 

11 ‘‘(2) PROGRAM COSTS.—The term ‘program 

12 costs’ means— 

13 ‘‘(A) total salaries (including locality pay 

14 and bonuses), benefits, and employment taxes 

15 for special compliance personnel employed or 

16 trained under the program described in sub17 section (a), and 

18 ‘‘(B) direct overhead costs, salaries, bene19 fits, and employment taxes relating to support 

20 staff, rental payments, office equipment and 

21 furniture, travel, data processing services, vehi22 cle costs, utilities, telecommunications, postage, 

23 printing and reproduction, supplies and mate24 rials, lands and structures, insurance claims, 


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1 and indemnities for special compliance per2 sonnel hired and employed under this section. 

3 For purposes of subparagraph (B), the cost of man4 agement and supervision of special compliance per5 sonnel shall be taken into account as direct overhead 

6 costs to the extent such costs, when included in total 

7 program costs under this paragraph, do not rep8 resent more than 10 percent of such total costs.’’. 

9 (c) CLERICAL AMENDMENT.—The table of sections 

10 for subchapter A of chapter 64 is amended by inserting 

11 after the item relating to section 6306 the following new 

12 item: 

‘‘Sec. 6307. Special compliance personnel program account.’’. 

13 (d) EFFECTIVE DATE.—The amendment made by 

14 subsection (a) shall apply to amounts collected and re15 tained by the Secretary after the date of the enactment 

16 of this Act. 

17 SEC. 306. EXCLUSION OF DIVIDENDS FROM CONTROLLED 

18 FOREIGN CORPORATIONS FROM THE DEFINI19 TION OF PERSONAL HOLDING COMPANY IN20 COME FOR PURPOSES OF THE PERSONAL 

21 HOLDING COMPANY RULES. 

22 (a) IN GENERAL.—Paragraph (1) of section 543(a) 

23 is amended by redesignating subparagraphs (C) and (D) 

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1 ing after subparagraph (B) the following new subpara2 graph: 

3 ‘‘(C) dividends received by a United States 

4 shareholder (as defined in section 951(b)) from 

5 a controlled foreign corporation (as defined in 

6 section 957(a)),’’. 

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

8 this section shall apply to taxable years ending on or after 

9 the date of the enactment of this Act. 

10 SEC. 307. INFLATION ADJUSTMENT FOR CERTAIN CIVIL 

11 PENALTIES UNDER THE INTERNAL REVENUE 

12 CODE OF 1986. 

13 (a) FAILURE TO FILE TAX RETURN OR PAY TAX.— 

14 Section 6651 is amended by adding at the end the fol15 lowing new subsection: 

16 ‘‘(i) ADJUSTMENT FOR INFLATION.— 

17 ‘‘(1) IN GENERAL.—In the case of any return 

18 required to be filed in a calendar year beginning 

19 after 2014, the $135 dollar amount under subsection 

20 (a) shall be increased by such dollar amount multi21 plied by the cost-of-living adjustment determined 

22 under section 1(f)(3) determined by substituting 

23 ‘calendar year 2013’ for ‘calendar year 1992’ in sub24 paragraph (B) thereof. 


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1 ‘‘(2) ROUNDING.—If any amount adjusted 

2 under paragraph (1) is not a multiple of $5, such 

3 amount shall be rounded to the next lowest multiple 

4 of $5.’’. 

5 (b) FAILURE TO FILE CERTAIN INFORMATION RE6 TURNS, REGISTRATION STATEMENTS, ETC.— 

7 (1) IN GENERAL.—Section 6652(c) is amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(6) ADJUSTMENT FOR INFLATION.— 

10 ‘‘(A) IN GENERAL.—In the case of any 

11 failure relating to a return required to be filed 

12 in a calendar year beginning after 2014, each 

13 of the dollar amounts under paragraphs (1), 

14 (2), and (3) shall be increased by such dollar 

15 amount multiplied by the cost-of-living adjust16 ment determined under section 1(f)(3) deter17 mined by substituting ‘calendar year 2013’ for 

18 ‘calendar year 1992’ in subparagraph (B) 

19 thereof. 

20 ‘‘(B) ROUNDING.—If any amount adjusted 

21 under subparagraph (A)— 

22 ‘‘(i) is not less than $5,000 and is not 

23 a multiple of $500, such amount shall be 

24 rounded to the next lowest multiple of 

25 $500, and 


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1 ‘‘(ii) is not described in clause (i) and 

2 is not a multiple of $5, such amount shall 

3 be rounded to the next lowest multiple of 

4 $5.’’. 

5 (2) CONFORMING AMENDMENTS.— 

6 (A) The last sentence of section 

7 6652(c)(1)(A) is amended by striking ‘‘the first 

8 sentence of this subparagraph shall be applied 

9 by substituting ‘$100’ for ‘$20’ and’’ and in10 serting ‘‘in applying the first sentence of this 

11 subparagraph, the amount of the penalty for 

12 each day during which a failure continues shall 

13 be $100 in lieu of the amount otherwise speci14 fied, and’’. 

15 (B) Clause (ii) of section 6652(c)(2)(C) is 

16 amended by striking ‘‘the first sentence of para17 graph (1)(A)’’ and all that follows and inserting 

18 ‘‘in applying the first sentence of paragraph 

19 (1)(A), the amount of the penalty for each day 

20 during which a failure continues shall be $100 

21 in lieu of the amount otherwise specified, and in 

22 lieu of applying the second sentence of para23 graph (1)(A), the maximum penalty under 

24 paragraph (1)(A) shall not exceed $50,000, 

25 and’’. 


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1 (c) OTHER ASSESSABLE PENALTIES WITH RESPECT

2 TO THE PREPARATION OF TAX RETURNS FOR OTHER

3 PERSONS.—Section 6695 is amended by adding at the end 

4 the following new subsection: 

5 ‘‘(h) ADJUSTMENT FOR INFLATION.— 

6 ‘‘(1) IN GENERAL.—In the case of any failure 

7 relating to a return or claim for refund filed in a 

8 calendar year beginning after 2014, each of the dol9 lar amounts under subsections (a), (b), (c), (d), (e), 

10 (f), and (g) shall be increased by such dollar amount 

11 multiplied by the cost-of-living adjustment deter12 mined under section 1(f)(3) determined by sub13 stituting ‘calendar year 2013’ for ‘calendar year 

14 1992’ in subparagraph (B) thereof. 

15 ‘‘(2) ROUNDING.—If any amount adjusted 

16 under subparagraph (A)— 

17 ‘‘(A) is not less than $5,000 and is not a 

18 multiple of $500, such amount shall be rounded 

19 to the next lowest multiple of $500, and 

20 ‘‘(B) is not described in clause (i) and is 

21 not a multiple of $5, such amount shall be 

22 rounded to the next lowest multiple of $5.’’. 

23 (d) FAILURE TO FILE PARTNERSHIP RETURN.—Sec24 tion 6698 is amended by adding at the end the following 

25 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 (e) FAILURE TO FILE S CORPORATION RETURN.— 

15 Section 6699 is amended by adding at the end the fol16 lowing new subsection: 

17 ‘‘(e) ADJUSTMENT FOR INFLATION.— 

18 ‘‘(1) IN GENERAL.—In the case of any return 

19 required to be filed in a calendar year beginning 

20 after 2014, the $195 dollar amount under subsection 

21 (b)(1) shall be increased by such dollar amount mul22 tiplied by the cost-of-living adjustment determined 

23 under section 1(f)(3) determined by substituting 

24 ‘calendar year 2013’ for ‘calendar year 1992’ in sub25 paragraph (B) thereof. 


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1 ‘‘(2) ROUNDING.—If any amount adjusted 

2 under paragraph (1) is not a multiple of $5, such 

3 amount shall be rounded to the next lowest multiple 

4 of $5.’’. 

5 (f) FAILURE TO FILE CORRECT INFORMATION RE6 TURNS.—Paragraph (1) of section 6721(f) is amended by 

7 striking ‘‘For each fifth calendar year beginning after 

8 2012’’ and inserting ‘‘In the case of any failure relating 

9 to a return required to be filed in a calendar year begin10 ning after 2014’’. 

11 (g) FAILURE TO FURNISH CORRECT PAYEE STATE12 MENTS.—Paragraph (1) of section 6722(f) is amended by 

13 striking ‘‘For each fifth calendar year beginning after 

14 2012’’ and inserting ‘‘In the case of any failure relating 

15 to a statement required to be furnished in a calendar year 

16 beginning after 2014’’. 

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

18 this section shall apply to returns required to be filed after 

19 December 31, 2014. 

20 TITLE IV—BUDGETARY EFFECTS 

21 SEC. 401. BUDGETARY EFFECTS. 

22 (a) PAYGO SCORECARD.—The budgetary effects of 

23 this Act shall not be entered on either PAYGO scorecard 

24 maintained pursuant to section 4(d) of the Statutory Pay25 As-You-Go Act of 2010. 


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1 (b) SENATE PAYGO SCORECARD.—The budgetary ef2 fects of this Act shall not be entered on any PAYGO score3 card maintained for purposes of section 201 of S. Con. 

4 Res. 21 (110th Congress). 


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Calendar No. 366 

113TH CONGRESS 

2D SESSION S. 2260 

[Report No. 113–154] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

purposes. extend certain expiring provisions, and for other 

APRIL 28, 2014 

Read twice and placed on the calendar 


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