II 

Calendar No. 367 

113TH CONGRESS 

2D SESSION S. 2261 

[Report No. 113–155] 

To amend the Internal Revenue Code of 1986 to make technical corrections, 

to remove provisions that are no longer applicable, and for other purposes.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 make 

technical corrections, to remove provisions that are no 

longer applicable, 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; AMENDMENT OF 1986 CODE; 

4 TABLE OF CONTENTS. 

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

6 ‘‘Tax Technical Corrections Act of 2014’’. 


smartinez on DSK6TPTVN1PROD with BILLS
2 

•S 2261 PCS

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

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

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

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

8 this Act is as follows: 

Sec. 1. Short title; amendment of 1986 Code; table of contents. 

Sec. 2. Amendment relating to Middle Class Tax Relief and Job Creation Act 

of 2012. 

Sec. 3. Amendments relating to American Taxpayer Relief Act of 2012. 

Sec. 4. Amendments relating to Regulated Investment Company Modernization 

Act of 2010. 

Sec. 5. Amendments relating to Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. 

Sec. 6. Amendments relating to Creating Small Business Jobs Act of 2010. 

Sec. 7. Clerical amendment relating to Hiring Incentives to Restore Employment Act. 

Sec. 8. Amendments relating to American Recovery and Reinvestment Tax Act 

of 2009. 

Sec. 9. Amendments relating to Energy Improvement and Extension Act of 

2008. 

Sec. 10. Amendments relating to Tax Extenders and Alternative Minimum Tax 

Relief Act of 2008. 

Sec. 11. Clerical amendments relating to Housing Assistance Tax Act of 2008. 

Sec. 12. Amendments and provision relating to Heroes Earnings Assistance and 

Relief Tax Act of 2008. 

Sec. 13. Amendments relating to Economic Stimulus Act of 2008. 

Sec. 14. Amendments relating to Tax Technical Corrections Act of 2007. 

Sec. 15. Amendment relating to Tax Relief and Health Care Act of 2006. 

Sec. 16. Amendment relating to Safe, Accountable, Flexible, Efficient Transportation Equity Act of 2005: A Legacy for Users. 

Sec. 17. Amendments relating to Energy Tax Incentives Act of 2005. 

Sec. 18. Amendments relating to American Jobs Creation Act of 2004. 

Sec. 19. Other clerical corrections. 

Sec. 20. Deadwood provisions. 

9 SEC. 2. AMENDMENT RELATING TO MIDDLE CLASS TAX RE10 LIEF AND JOB CREATION ACT OF 2012. 

11 (a) AMENDMENT RELATING TO SECTION 7001.— 

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


smartinez on DSK6TPTVN1PROD with BILLS
3 

•S 2261 PCS

1 Relief and Job Creation Act of 2012 is amended by strik2 ing ‘‘201(b)’’ and inserting ‘‘202(b)’’. 

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

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

5 7001 of the Middle Class Tax Relief and Job Creation 

6 Act of 2012. 

7 SEC. 3. AMENDMENTS RELATING TO AMERICAN TAXPAYER 

8 RELIEF ACT OF 2012. 

9 (a) AMENDMENT RELATING TO SECTION 102.— 

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

11 ‘‘described in section 1(h)(1)(B) shall be treated as a ref12 erence to such excess as determined’’ and inserting ‘‘de13 scribed in section 1(h)(1)(B), and the reference in section 

14 55(b)(3)(C)(ii) to the excess described in section 

15 1(h)(1)(C)(ii), shall each be treated as a reference to each 

16 such excess as determined’’. 

17 (b) AMENDMENTS RELATING TO SECTION 104.— 

18 (1) Clause (ii) of section 55(d)(4)(B) is amend19 ed by inserting ‘‘subparagraphs (A), (B), and (D) 

20 of’’ before ‘‘paragraph (1)’’. 

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

22 amended by striking ‘‘increase’’ and inserting ‘‘in23 creased amount’’. 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
4 

•S 2261 PCS

1 of the American Taxpayer Relief Act of 2012 to which 

2 they relate. 

3 SEC. 4. AMENDMENTS RELATING TO REGULATED INVEST4 MENT COMPANY MODERNIZATION ACT OF 

5 2010. 

6 (a) AMENDMENTS RELATING TO SECTION 101.— 

7 (1) Subsection (c) of section 101 of the Regu8 lated Investment Company Modernization Act of 

9 2010 is amended— 

10 (A) by striking ‘‘paragraph (2)’’ in para11 graph (1) and inserting ‘‘paragraphs (2) and 

12 (3)’’, and 

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

14 paragraph: 

15 ‘‘(3) EXCISE TAX.— 

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

17 subparagraph (B), for purposes of section 4982 

18 of the Internal Revenue Code of 1986, para19 graphs (1) and (2) shall apply by substituting 

20 ‘the 1-year periods taken into account under 

21 subsection (b)(1)(B) of such section with re22 spect to calendar years beginning after Decem23 ber 31, 2010’ for ‘taxable years beginning after 

24 the date of the enactment of this Act’. 


smartinez on DSK6TPTVN1PROD with BILLS
5 

•S 2261 PCS

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

2 company may elect to apply subparagraph (A) 

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

4 shall be made at such time and in such form 

5 and manner as the Secretary of the Treasury 

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

7 (2) The first sentence of paragraph (2) of sec8 tion 852(c) is amended— 

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

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

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

12 any capital loss arising on the first day of the 

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

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

15 the end. 

16 (b) AMENDMENT RELATING TO SECTION 304.— 

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

18 ‘‘on or’’ before ‘‘before’’. 

19 (c) AMENDMENTS RELATING TO SECTION 308.— 

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

21 by redesignating subparagraph (E) as subparagraph 

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

23 inserting the following new subparagraphs: 


smartinez on DSK6TPTVN1PROD with BILLS
6 

•S 2261 PCS

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

2 purposes of this paragraph, the term ‘post-Oc3 tober capital loss’ means— 

4 ‘‘(i) any net capital loss attributable 

5 to the portion of the taxable year after Oc6 tober 31, or 

7 ‘‘(ii) if there is no such loss— 

8 ‘‘(I) any net long-term capital 

9 loss attributable to such portion of the 

10 taxable year, or 

11 ‘‘(II) any net short-term capital 

12 loss attributable to such portion of the 

13 taxable year. 

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

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

16 ordinary loss’ means the sum of any post-Octo17 ber specified loss and any post-December ordi18 nary loss. 

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

20 For purposes of this paragraph, the term ‘post21 October specified loss’ means the excess (if any) 

22 of— 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
7 

•S 2261 PCS

1 the portion of the taxable year after Octo2 ber 31, over 

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

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

5 such portion of the taxable year. 

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

7 For purposes of this paragraph, the term ‘post8 December ordinary loss’ means the excess (if 

9 any) of— 

10 ‘‘(i) the ordinary losses not described 

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

12 the portion of the taxable year after De13 cember 31, over 

14 ‘‘(ii) the ordinary income not de15 scribed in subparagraph (E)(ii) and attrib16 utable to such portion of the taxable 

17 year.’’. 

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

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

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

21 (3) The first sentence of paragraph (2) of sec22 tion 852(c), as amended by subsection (a), is amend23 ed— 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
8 

•S 2261 PCS

1 (B) by inserting ‘‘, and with such other ad2 justments as the Secretary may prescribe’’ be3 fore the period at the end. 

4 (d) AMENDMENTS RELATING TO SECTION 402.— 

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

6 amended by inserting before the period at the end 

7 the following: ‘‘or which determines income by ref8 erence to the value of an item on the last day of the 

9 taxable year’’. 

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

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

12 follows through ‘‘any net ordinary loss’’ and insert13 ing ‘‘such company may elect to determine its ordi14 nary income and net ordinary loss (as defined in 

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

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

17 (e) CLERICAL AMENDMENT RELATING TO SECTION

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

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

20 (B)(i)’’. 

21 (f) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this section 

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


smartinez on DSK6TPTVN1PROD with BILLS
9 

•S 2261 PCS

1 Regulated Investment Company Modernization Act 

2 of 2010 to which they relate. 

3 (2) SAVINGS PROVISION.—In the case of a reg4 ulated investment company which, before the date of 

5 the enactment of this Act, elected under paragraph 

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

7 of 1986 (as in effect on the date of such election) 

8 for any taxable year ending before such date of en9 actment to treat any loss as arising in the following 

10 taxable year, the amendments made by paragraphs 

11 (1) and (2) of subsection (c) shall not apply with re12 spect to such election. 

13 SEC. 5. AMENDMENTS RELATING TO TAX RELIEF, UNEM14 PLOYMENT INSURANCE REAUTHORIZATION, 

15 AND JOB CREATION ACT OF 2010. 

16 (a) AMENDMENT RELATING TO SECTION 103.— 

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

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

19 (b) CLERICAL AMENDMENT RELATING TO SECTION

20 302.—Subsection (f) of section 302 of the Tax Relief, Un21 employment Insurance Reauthorization, and Job Creation 

22 Act of 2010 is amended by striking ‘‘subsection’’ and in23 serting ‘‘section’’. 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
10 

•S 2261 PCS

1 of the Tax Relief, Unemployment Insurance Reauthoriza2 tion, and Job Creation Act of 2010 to which they relate. 

3 SEC. 6. AMENDMENTS RELATING TO CREATING SMALL 

4 BUSINESS JOBS ACT OF 2010. 

5 (a) AMENDMENTS RELATING TO SECTION 2102.— 

6 (1) Subsection (h) of section 2102 of the Cre7 ating Small Business Jobs Act of 2010 is amended 

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

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

10 be filed’’. 

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

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

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

14 inserting ‘‘the date prescribed for furnishing such 

15 statement’’. 

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

17 amended by striking ‘‘filed’’ and inserting ‘‘fur18 nished’’. 

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

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

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

22 they relate. 


smartinez on DSK6TPTVN1PROD with BILLS
11 

•S 2261 PCS

1 SEC. 7. CLERICAL AMENDMENT RELATING TO HIRING IN2 CENTIVES TO RESTORE EMPLOYMENT ACT. 

3 (a) AMENDMENT RELATING TO SECTION 512.— 

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

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

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

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

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

9 of the Hiring Incentives to Restore Employment Act to 

10 which it relates. 

11 SEC. 8. AMENDMENTS RELATING TO AMERICAN RECOVERY 

12 AND REINVESTMENT TAX ACT OF 2009. 

13 (a) AMENDMENT RELATING TO SECTION 1003.— 

14 Paragraph (4) of section 24(d) is amended to read as fol15 lows: 

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

17 the case of any taxable year beginning after 2008 

18 and before 2018, paragraph (1)(B)(i) shall be ap19 plied by substituting ‘$3,000’ for ‘$10,000’.’’. 

20 (b) AMENDMENT RELATING TO SECTION 1004.— 

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

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

23 purposes of determining the Hope Scholarship Credit, sub24 section (f)(1)(A) shall be applied’’. 

25 (c) AMENDMENTS RELATING TO SECTION 1008.— 


smartinez on DSK6TPTVN1PROD with BILLS
12 

•S 2261 PCS

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

2 by striking subparagraph (E) and by redesignating 

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

4 and (F), respectively. 

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

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

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

8 (a)(6)’’. 

9 (d) AMENDMENT RELATING TO SECTION 1104.— 

10 Subparagraph (A) of section 48(d)(3) is amended by in11 serting ‘‘or alternative minimum taxable income’’ after 

12 ‘‘includible in the gross income’’ 

13 (e) AMENDMENTS RELATING TO SECTION 1141.— 

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

15 (A) by inserting ‘‘(determined without re16 gard to subsection (c))’’ before the period at the 

17 end of paragraph (1), and 

18 (B) by inserting ‘‘(determined without re19 gard to subsection (c))’’ before the period at the 

20 end of paragraph (2). 

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

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

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

24 applies shall be treated as of a character subject to 

25 an allowance for depreciation.’’ 


smartinez on DSK6TPTVN1PROD with BILLS
13 

•S 2261 PCS

1 (f) AMENDMENTS RELATING TO SECTION 1142.— 

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

3 striking ‘‘plus’’ at the end of paragraph (35), by re4 designating paragraph (36) as paragraph (37), and 

5 by inserting after paragraph (35) the following new 

6 paragraph: 

7 ‘‘(36) the portion of the qualified plug-in elec8 tric vehicle credit to which section 30(c)(1) applies, 

9 plus’’. 

10 (2)(A) Subsection (e) of section 30 is amend11 ed— 

12 (i) by inserting ‘‘(determined without re13 gard to subsection (c))’’ before the period at the 

14 end of paragraph (1), and 

15 (ii) by inserting ‘‘(determined without re16 gard to subsection (c))’’ before the period at the 

17 end of paragraph (2). 

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

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

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

21 applies shall be treated as of a character subject to 

22 an allowance for depreciation.’’ 

23 (g) AMENDMENT RELATING TO SECTION 1302.— 

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


smartinez on DSK6TPTVN1PROD with BILLS
14 

•S 2261 PCS

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

2 is treated’’. 

3 (h) AMENDMENTS RELATED TO SECTION 1541.— 

4 (1) Paragraph (2) of section 853A(a) is amend5 ed by inserting ‘‘(determined after the application of 

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

7 (2) Subsection (a) of section 853A is amend8 ed— 

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

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

11 the credits’’, and 

12 (B) by inserting ‘‘(determined without re13 gard to this section and sections 54(c), 

14 54A(c)(1), 54AA(c)(1), and 1397E(c))’’ after 

15 ‘‘credits allowable’’. 

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

17 to read as follows: 

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

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

20 for any taxable year— 

21 ‘‘(1) the regulated investment company— 

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

23 ‘‘(B) shall include in gross income (as in24 terest) for such taxable year the amount which 

25 would have been so included with respect to 


smartinez on DSK6TPTVN1PROD with BILLS
15 

•S 2261 PCS

1 such credits had the application of this section 

2 not been elected, 

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

4 the amount so included in gross income, and 

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

6 more distributions of money with respect to its 

7 stock equal to the amount of such credits on 

8 the date or dates (on or after the applicable 

9 date for any such credit) during such taxable 

10 year (or following the close of the taxable year 

11 pursuant to section 855) selected by the 

12 company, and 

13 ‘‘(2) each shareholder of such investment com14 pany shall— 

15 ‘‘(A) be treated as receiving such share16 holder’s proportionate share of any distribution 

17 of money which is treated as made by such in18 vestment company under paragraph (1)(D), and 

19 ‘‘(B) be allowed credits against the tax im20 posed by this chapter equal to the amount of 

21 such distribution, subject to the provisions of 

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

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

24 to read as follows: 


smartinez on DSK6TPTVN1PROD with BILLS
16 

•S 2261 PCS

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

2 treated as a distribution of money received by a share3 holder under subsection (b)(2)(A) (and as credits allowed 

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

5 exceed the amount so reported by the regulated invest6 ment company in a written statement furnished to such 

7 shareholder.’’. 

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

9 amended by inserting ‘‘other than a qualified bond 

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

11 section 54AA(d))’’. 

12 (i) AMENDMENTS RELATING TO SECTION 2202.— 

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

14 the division B of the American Recovery and Rein15 vestment Act of 2009 is amended by inserting ‘‘po16 litical subdivision of a State,’’ after ‘‘any State,’’. 

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

18 Recovery and Reinvestment Act of 2009 is amended 

19 by adding at the end the following new subsection: 

20 ‘‘(e) TREATMENT OF POSSESSIONS.— 

21 ‘‘(1) PAYMENTS TO MIRROR CODE POSSES22 SIONS.—The Secretary of the Treasury shall pay to 

23 each possession of the United States with a mirror 

24 code tax system amounts equal to the loss to that 

25 possession by reason of credits allowed under subVerDate Mar 15 2010 22:43 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.PCS S2261

smartinez on DSK6TPTVN1PROD with BILLS
17 

•S 2261 PCS

1 section (a) with respect to taxable years beginning in 

2 2009. Such amounts shall be determined by the Sec3 retary of the Treasury based on information pro4 vided by the government of the respective possession. 

5 ‘‘(2) COORDINATION WITH CREDIT ALLOWED

6 AGAINST UNITED STATES INCOME TAXES.—No cred7 it shall be allowed against United States income 

8 taxes for any taxable year under this section to any 

9 person to whom a credit is allowed against taxes im10 posed by the possession by reason of the credit al11 lowed under subsection (a) for such taxable year. 

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

13 ‘‘(A) POSSESSION OF THE UNITED

14 STATES.—For purposes of this subsection, the 

15 term ‘possession of the United States’ includes 

16 the Commonwealth of the Northern Mariana Is17 lands. 

18 ‘‘(B) MIRROR CODE TAX SYSTEM.—For 

19 purposes of this subsection, the term ‘mirror 

20 code tax system’ means, with respect to any 

21 possession of the United States, the income tax 

22 system of such possession if the income tax li23 ability of the residents of such possession under 

24 such system is determined by reference to the 


smartinez on DSK6TPTVN1PROD with BILLS
18 

•S 2261 PCS

1 income tax laws of the United States as if such 

2 possession were the United States. 

3 ‘‘(C) TREATMENT OF PAYMENTS.—For 

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

5 United States Code, the payments under this 

6 subsection shall be treated in the same manner 

7 as a refund due from the credit allowed under 

8 section 36A of the Internal Revenue Code of 

9 1986 (as added by this Act).’’. 

10 (j) CLERICAL AMENDMENTS.— 

11 (1) AMENDMENT RELATING TO SECTION

12 1131.—Paragraph (2) of section 45Q(d) is amended 

13 by striking ‘‘Administrator of the Environmental 

14 Protection Agency’’ and all that follows through 

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

16 Environmental Protection Agency, the Secretary of 

17 Energy, and the Secretary of the Interior, shall es18 tablish’’. 

19 (2) AMENDMENT RELATING TO SECTION

20 1141.—Paragraph (37) of section 1016(a) is amend21 ed by striking ‘‘section 30D(e)(4)’’ and inserting 

22 ‘‘section 30D(f)(1)’’. 

23 (3) AMENDMENT RELATING TO SECTION

24 3001.—Subparagraph (A) of section 3001(a)(14) of 

25 the American Recovery and Reinvestment Act of 


smartinez on DSK6TPTVN1PROD with BILLS
19 

•S 2261 PCS

1 2009 is amended by striking ‘‘is amended by redes2 ignating paragraph (9) as paragraph (10)’’ and in3 serting ‘‘, as amended by this Act, is amended by re4 designating paragraphs (9) and (10) as paragraphs 

5 (10) and (11), respectively,’’. 

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

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

8 of the American Recovery and Reinvestment Tax Act of 

9 2009 to which they relate. 

10 SEC. 9. AMENDMENTS RELATING TO ENERGY IMPROVE11 MENT AND EXTENSION ACT OF 2008. 

12 (a) AMENDMENT RELATING TO SECTION 108.—Sub13 paragraph (E) of section 45K(g)(2) is amended to read 

14 as follows: 

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

16 No credit shall be allowed with respect to any 

17 coke or coke gas which is produced using steel 

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

19 feedstock if a credit is allowed to any taxpayer 

20 under section 45 with respect to the production 

21 of such steel industry fuel.’’. 

22 (b) AMENDMENT RELATING TO SECTION 113.— 

23 Paragraph (1) of section 113(b) of the Energy Improve24 ment and Extension Act of 2008 is amended by adding 

25 at the end the following new subparagraph: 


smartinez on DSK6TPTVN1PROD with BILLS
20 

•S 2261 PCS

1 ‘‘(F) TRUST FUND.—The term ‘Trust 

2 Fund’ means the Black Lung Disability Trust 

3 Fund established under section 9501 of the In4 ternal Revenue Code of 1986.’’. 

5 (c) AMENDMENTS RELATING TO SECTION 306.— 

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

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

8 years’’. 

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

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

11 years’’. 

12 (d) AMENDMENT RELATING TO SECTION 308.— 

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

14 ‘‘section 168(k)’’ and inserting ‘‘subsection (k) (deter15 mined without regard to paragraph (4) thereof)’’. 

16 (e) AMENDMENT RELATING TO SECTION 402.—Sub17 paragraph (A) of section 907(f)(4) is amended by striking 

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

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

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

21 of the enactment of the Energy Improvement and Exten22 sion Act of 2008, shall apply to unused oil and gas extrac23 tion taxes carried from such unused credit year to a tax24 able year beginning after December 31, 2008.’’. 

25 (f) AMENDMENTS RELATING TO SECTION 403.— 


smartinez on DSK6TPTVN1PROD with BILLS
21 

•S 2261 PCS

1 (1) Subsection (c) of section 1012 is amend2 ed— 

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

4 for paragraph (2) and inserting ‘‘REGULATED

5 INVESTMENT COMPANIES’’, 

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

7 paragraph (2)(B), and 

8 (C) by striking ‘‘fund’’ each place it ap9 pears in paragraph (2) and inserting ‘‘regulated 

10 investment company’’. 

11 (2) Paragraph (1) of section 1012(d) is amend12 ed— 

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

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

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

16 inserting ‘‘a regulated investment company’’. 

17 (3) Paragraph (3) of section 1012(d) is amend18 ed to read as follows: 

19 ‘‘(3) SEPARATE ACCOUNTS; ELECTION FOR

20 TREATMENT AS SINGLE ACCOUNT.— 

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

22 rules of subsection (c)(2) shall apply for pur23 poses of this subsection. 

24 ‘‘(B) AVERAGE BASIS FOR PRE-2012

25 STOCK.—Notwithstanding paragraph (1), in the 


smartinez on DSK6TPTVN1PROD with BILLS
22 

•S 2261 PCS

1 case of an election under rules similar to the 

2 rules of subsection (c)(2)(B) with respect to 

3 stock held in connection with a dividend rein4 vestment plan, the average basis method is per5 missible with respect to all such stock without 

6 regard to the date of the acquisition of such 

7 stock.’’. 

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

9 by adding at the end the following new paragraph: 

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

11 IN CONNECTION WITH DIVIDEND REINVESTMENT

12 PLAN.—For purposes of this subsection, stock ac13 quired before January 1, 2012, in connection with a 

14 dividend reinvestment plan shall be treated as stock 

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

16 the broker with respect to such stock elects not to 

17 have this paragraph apply with respect to such 

18 stock).’’. 

19 (g) CLERICAL AMENDMENT RELATING TO SECTION

20 108.—Paragraph (2) of section 45(b) is amended by strik21 ing ‘‘$3 amount’’ and inserting ‘‘$2 amount’’. 

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

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

24 of the Energy Improvement and Extension Act of 2008 

25 to which they relate. 


smartinez on DSK6TPTVN1PROD with BILLS
23 

•S 2261 PCS

1 SEC. 10. AMENDMENTS RELATING TO TAX EXTENDERS AND 

2 ALTERNATIVE MINIMUM TAX RELIEF ACT OF 

3 2008. 

4 (a) AMENDMENT RELATING TO SECTION 208.—Sub5 section (b) of section 208 of the Tax Extenders and Alter6 native Minimum Tax Relief Act of 2008 is amended to 

7 read as follows: 

8 ‘‘(b) EFFECTIVE DATE.— 

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

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

11 Notwithstanding the preceding sentence, such 

12 amendment shall not apply with respect to the with13 holding requirement under section 1445 of the Inter14 nal Revenue Code of 1986 for any payment made 

15 before October 4, 2008. 

16 ‘‘(2) AMOUNTS WITHHELD ON OR BEFORE

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

18 investment company— 

19 ‘‘(A) which makes a distribution after De20 cember 31, 2007, and before October 4, 2008, 

21 and 

22 ‘‘(B) which would (but for the second sen23 tence of paragraph (1)) have been required to 

24 withhold with respect to such distribution under 

25 section 1445 of such Code, 


smartinez on DSK6TPTVN1PROD with BILLS
24 

•S 2261 PCS

1 such investment company shall not be liable to any 

2 person to whom such distribution was made for any 

3 amount so withheld and paid over to the Secretary 

4 of the Treasury.’’. 

5 (b) AMENDMENTS RELATING TO SECTION 305.— 

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

7 amended by inserting ‘‘which is not qualified leasehold im8 provement property’’ after ‘‘Property described in this 

9 paragraph’’. 

10 (c) CLERICAL AMENDMENTS.— 

11 (1) AMENDMENT RELATING TO SECTION 306.— 

12 Paragraph (5) of section 168(b) is amended by 

13 striking ‘‘(2)(C)’’ and inserting ‘‘(2)(D)’’. 

14 (2) AMENDMENTS RELATING TO SECTION

15 706.— 

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

17 amended by inserting ‘‘is’’ before 

18 ‘‘compulsorily’’. 

19 (B) Subclause (II) of section 

20 172(b)(1)(F)(ii) is amended by striking ‘‘sub21 section (h)(3)(C)(i)’’ and inserting ‘‘section 

22 165(h)(3)(C)(i)’’. 

23 (C) The heading for paragraph (1) of sec24 tion 165(h) is amended by striking ‘‘$100’’ and 

25 inserting ‘‘DOLLAR’’. 


smartinez on DSK6TPTVN1PROD with BILLS
25 

•S 2261 PCS

1 (3) AMENDMENT RELATING TO SECTION 709.— 

2 Subsection (k) of section 143 is amended by redesig3 nating the second paragraph (12) (relating to special 

4 rules for residences destroyed in Federally declared 

5 disasters) as paragraph (13). 

6 (4) AMENDMENT RELATING TO SECTION 712.— 

7 Section 712 of the Tax Extenders and Alternative 

8 Minimum Tax Relief Act of 2008 is amended by 

9 striking ‘‘section 702(c)(1)(A)’’ and inserting ‘‘sec10 tion 702(b)(1)(A)’’. 

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

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

13 of the Tax Extenders and Alternative Minimum Tax Relief 

14 Act of 2008 to which they relate. 

15 SEC. 11. CLERICAL AMENDMENTS RELATING TO HOUSING 

16 ASSISTANCE TAX ACT OF 2008. 

17 (a) AMENDMENT RELATING TO SECTION 3002.— 

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

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

20 following: ‘‘For purposes of this section— 

21 ‘‘(A) IN GENERAL.—The term’’. 

22 (b) AMENDMENT RELATING TO SECTION 3081.— 

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

24 ‘‘adjusted minimum tax’’ and inserting ‘‘adjusted net min25 imum tax’’. 


smartinez on DSK6TPTVN1PROD with BILLS
26 

•S 2261 PCS

1 (c) AMENDMENT RELATING TO SECTION 3092.— 

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

3 the second paragraph (4) (relating to exclusion of gain al4 located to nonqualified use) as paragraph (5). 

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

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

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

8 relate. 

9 SEC. 12. AMENDMENTS AND PROVISION RELATING TO HE10 ROES EARNINGS ASSISTANCE AND RELIEF 

11 TAX ACT OF 2008. 

12 (a) AMENDMENT RELATING TO SECTION 106.— 

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

14 Assistance and Relief Tax Act of 2008 is amended by 

15 striking ‘‘substituting for’’ and inserting ‘‘substituting 

16 ‘June 17, 2008’ for’’. 

17 (b) AMENDMENT RELATING TO SECTION 114.— 

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

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

20 plan)’’ before ‘‘merely’’. 

21 (c) CLERICAL AMENDMENTS.— 

22 (1) AMENDMENT RELATING TO SECTION 110.— 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
27 

•S 2261 PCS

1 (2) AMENDMENT RELATING TO SECTION 301.— 

2 Paragraph (2) of section 877(e) is amended by strik3 ing ‘‘subparagraph (A) or (B) of’’. 

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

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

6 of the Heroes Earnings Assistance and Relief Tax Act of 

7 2008 to which they relate. 

8 SEC. 13. AMENDMENTS RELATING TO ECONOMIC STIMULUS 

9 ACT OF 2008. 

10 (a) AMENDMENTS RELATING TO SECTION 101.— 

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

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

13 (L) and inserting ‘‘or 32’’, and 

14 (2) by striking ‘‘and’’ at the end of subpara15 graph (O), by striking the period at the end of sub16 paragraph (P) and inserting ‘‘, and’’, and by insert17 ing after subparagraph (P) the following new sub18 paragraph: 

19 ‘‘(Q) an omission of a correct TIN re20 quired under section 6428(h) (relating to 2008 

21 recovery rebates for individuals) to be included 

22 on a return.’’. 

23 (b) CLERICAL AMENDMENT RELATING TO SECTION

24 103.—Subclause (IV) of section 168(k)(2)(B)(i) is amendVerDate Mar 15 2010 22:43 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.PCS S2261

smartinez on DSK6TPTVN1PROD with BILLS
28 

•S 2261 PCS

1 ed by striking ‘‘clauses also apply’’ and inserting ‘‘clause 

2 also applies’’. 

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

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

5 of the Economic Stimulus Act of 2008 to which they re6 late. 

7 SEC. 14. AMENDMENTS RELATING TO TAX TECHNICAL COR8 RECTIONS ACT OF 2007. 

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

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

11 the end the following flush sentence: 

12 ‘‘For purposes of this paragraph, the amount ex13 cluded under subsection (a) shall be reduced by the 

14 aggregate amount of any deductions or exclusions 

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

16 such excluded amount.’’. 

17 (b) CLERICAL AMENDMENT RELATING TO SECTION

18 11(g).—Clause (iv) of section 56(g)(4)(C) is amended by 

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

20 and inserting ‘‘an organization to which part I of sub21 chapter T (relating to tax treatment of cooperatives) ap22 plies which is engaged in the marketing of agricultural or 

23 horticultural products’’. 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
29 

•S 2261 PCS

1 of the Tax Technical Corrections Act of 2007 to which 

2 they relate. 

3 SEC. 15. AMENDMENT RELATING TO TAX RELIEF AND 

4 HEALTH CARE ACT OF 2006. 

5 (a) AMENDMENT RELATING TO SECTION 105.—Sub6 paragraph (B) of section 45A(b)(1) is amended by adding 

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

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

9 51, the preceding sentence shall be applied by substituting 

10 ‘2-year period’ for ‘1-year period’.’’. 

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

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

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

14 it relates. 

15 SEC. 16. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, 

16 FLEXIBLE, EFFICIENT TRANSPORTATION EQ17 UITY ACT OF 2005: A LEGACY FOR USERS. 

18 (a) AMENDMENT RELATING TO SECTION 11161.— 

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

20 before the period at the end the following: ‘‘and taxes re21 ceived under section 4081 shall be determined without re22 gard to tax receipts attributable to the rate specified in 

23 section 4081(a)(2)(C)’’. 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
30 

•S 2261 PCS

1 of the Safe, Accountable, Flexible, Efficient Transpor2 tation Equity Act of 2005: A Legacy for Users to which 

3 it relates. 

4 SEC. 17. AMENDMENTS RELATING TO ENERGY TAX INCEN5 TIVES ACT OF 2005. 

6 (a) AMENDMENT RELATING TO SECTION 1341.— 

7 Subparagraph (B) of section 30B(h)(5) is amended by in8 serting ‘‘(determined without regard to subsection (g))’’ 

9 before the period at the end. 

10 (b) AMENDMENT RELATING TO SECTION 1342.— 

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

12 follows: 

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

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

15 credit is allowable under subsection (a) shall be re16 duced by the amount of such credit so allowed (de17 termined without regard to subsection (d)).’’. 

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

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

20 of the Energy Tax Incentives Act of 2005 to which it re21 lates. 

22 SEC. 18. AMENDMENTS RELATING TO AMERICAN JOBS CRE23 ATION ACT OF 2004. 

24 (a) AMENDMENT RELATING TO SECTION 101.—Sub25 section (d) of section 101 of the American Jobs Creation 


smartinez on DSK6TPTVN1PROD with BILLS
31 

•S 2261 PCS

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

2 new paragraph: 

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

4 subsection shall be applied without regard to any de5 duction allowable under section 199.’’. 

6 (b) AMENDMENTS RELATING TO SECTION 102.— 

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

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

9 after ‘‘in cases’’, and 

10 (2) by striking ‘‘AND DISPOSITIONS’’ and insert11 ing ‘‘, DISPOSITIONS, AND SHORT TAXABLE YEARS’’. 

12 (c) CLERICAL AMENDMENT RELATING TO SECTION

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

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

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

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

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

18 relate. 

19 SEC. 19. OTHER CLERICAL CORRECTIONS. 

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

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

22 except that’’. 

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

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


smartinez on DSK6TPTVN1PROD with BILLS
32 

•S 2261 PCS

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

2 end of paragraph (4). 

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

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

5 48D(b)(4)’’ after ‘‘under section 48(b)’’. 

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

7 striking ‘‘100 percent or more’’ and inserting ‘‘100 per8 cent’’. 

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

10 striking ‘‘statutory nontaxable benefits’’ each place it ap11 pears and inserting ‘‘qualified benefits’’. 

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

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

14 (h) Subparagraph (F) of section 163(h)(4) is amend15 ed by striking ‘‘Veterans Administration or the Rural 

16 Housing Administration’’ and inserting ‘‘Department of 

17 Veterans Affairs or the Rural Housing Service’’. 

18 (i) Subsection (a) of section 249 is amended by strik19 ing ‘‘1563(a)(1)’’ and inserting ‘‘1563(a)(1))’’. 

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

21 each amended by striking ‘‘subsection (a)(2)’’ and insert22 ing ‘‘subsection (a)(1)’’. 

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

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

25 ‘‘403(b)(7)(A)(ii)’’. 


smartinez on DSK6TPTVN1PROD with BILLS
33 

•S 2261 PCS

1 (l) Subsection (b) of section 858 is amended by strik2 ing ‘‘857(b)(8)’’ and inserting ‘‘857(b)(9)’’. 

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

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

5 section’’. 

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

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

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

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

11 bond’’. 

12 (p) Subsections (e)(3)(B) and (f)(7)(B) of section 

13 4943 are each amended by striking ‘‘January 1, 1970’’ 

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

15 (q) Paragraph (2) of section 4982(f) is amended by 

16 adding a comma at the end. 

17 (r) Paragraph (3) of section 6011(e) is amended by 

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

19 that’’. 

20 (s) Subsection (b) of section 6072 is amended by 

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

22 (t) Subsection (d) of section 6104 is amended by re23 designating the second paragraph (6) (relating to disclo24 sure of reports by Internal Revenue Service) and third 

25 paragraph (6) (relating to application to nonexempt chariVerDate Mar 15 2010 22:43 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.PCS S2261

smartinez on DSK6TPTVN1PROD with BILLS
34 

•S 2261 PCS

1 table trusts and nonexempt private foundations) as para2 graphs (7) and (8), respectively. 

3 (u) Subsection (c) of section 6662A is amended by 

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

5 6664(d)(3)(A)’’. 

6 (v) Subparagraph (FF) of section 6724(d)(2) is 

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

8 ‘‘section 6050W(f)’’. 

9 (w) Section 9802 is amended by redesignating the 

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

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

12 (x) Paragraph (3) of section 13(e) of the Worker, 

13 Homeownership, and Business Assistance Act of 2009 is 

14 amended by striking ‘‘subsection (d)’’ and inserting ‘‘sub15 section (c)’’. 

16 SEC. 20. DEADWOOD PROVISIONS. 

17 (a) IN GENERAL.— 

18 (1) ADJUSTMENTS IN TAX TABLES SO THAT IN19 FLATION WILL NOT RESULT IN TAX INCREASES.— 

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

21 follows: 

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

23 In prescribing tables under paragraph (1) which 

24 apply to taxable years beginning in a calendar year 

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


smartinez on DSK6TPTVN1PROD with BILLS
35 

•S 2261 PCS

1 making adjustments to the dollar amounts at which 

2 the 36 percent rate bracket begins or at which the 

3 39.6 percent rate bracket begins shall be determined 

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

5 ‘1992’.’’. 

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

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

8 of chapter 1 is amended by striking section 30 

9 (and by striking the item relating to such sec10 tion in the table of sections for such subpart). 

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

12 amended by section 8(f)(1) of this Act, is 

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

14 paragraph (35), by striking paragraph (36), 

15 and by redesignating paragraph (37) as para16 graph (36). 

17 (C) Subclause (VI) of section 

18 48C(c)(1)(A)(i) is amended by striking ‘‘, quali19 fied plug-in electric vehicles (as defined by sec20 tion 30(d)),’’. 

21 (D) Section 1016(a) is amended by strik22 ing paragraph (25). 

23 (E) Section 6501(m) is amended by strik24 ing ‘‘section 30(e)(6),’’. 

25 (3) EARNED INCOME CREDIT.— 


smartinez on DSK6TPTVN1PROD with BILLS
36 

•S 2261 PCS

1 (A) Paragraph (1) of section 32(b) is 

2 amended— 

3 (i) by striking subparagraphs (B) and 

4 (C), and 

5 (ii) by striking ‘‘(a) IN GENERAL.—In 

6 the case of taxable years beginning after 

7 1995:’’ in subparagraph (A) and moving 

8 the table 2 ems to the left. 

9 (B) Subparagraph (B) of section 32(b)(2) 

10 is amended by striking ‘‘increased by’’ and all 

11 that follows and inserting ‘‘increased by 

12 $3,000.’’. 

13 (4) FIRST-TIME HOMEBUYER CREDIT.—Section 

14 6213(g)(2) is amended by striking subparagraph 

15 (P), as amended by section 13(a)(2). 

16 (5) MAKING WORK PAY CREDIT.— 

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

18 of chapter 1 is amended by striking section 36A 

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

21 (B) Subparagraph (A) of section 

22 6211(b)(4) is amended by striking ‘‘, 36A’’. 

23 (C) Section 6213(g)(2) is amended by 

24 striking subparagraph (N). 


smartinez on DSK6TPTVN1PROD with BILLS
37 

•S 2261 PCS

1 (6) GENERAL BUSINESS CREDITS.—Subsection 

2 (d) of section 38 is amended by striking paragraph 

3 (3). 

4 (7) LOW-INCOME HOUSING CREDIT.—Subclause 

5 (I) of section 42(h)(3)(C)(ii) is amended by striking 

6 ‘‘($1.50 for 2001)’’. 

7 (8) MINIMUM TAX CREDIT.— 

8 (A)(i) Section 53 is amended by striking 

9 subsections (e) and (f). 

10 (ii) The amendment made by clause (i) 

11 striking subsection (f) of section 53 of the In12 ternal Revenue Code of 1986 shall not be con13 strued to allow any tax abated by reason of sec14 tion 53(f)(1) of such Code (as in effect before 

15 such amendment) to be included in the amount 

16 determined under section 53(b)(1) of such 

17 Code. 

18 (B) Paragraph (4) of section 6211(b)(4) is 

19 amended by striking ‘‘, 53(e)’’. 

20 (9) ADJUSTMENTS BASED ON ADJUSTED CUR21 RENT EARNINGS.—Clause (ii) of section 56(g)(4)(F) 

22 is amended by striking ‘‘In the case of any taxable 

23 year beginning after December 31, 1992, clause’’ 

24 and inserting ‘‘Clause’’. 


smartinez on DSK6TPTVN1PROD with BILLS
38 

•S 2261 PCS

1 (10) ITEMS OF TAX PREFERENCE; DEPLE2 TION.—Paragraph (1) of section 57(a) is amended 

3 by striking ‘‘Effective with respect to taxable years 

4 beginning after December 31, 1992, this’’ and in5 serting ‘‘This’’. 

6 (11) INTANGIBLE DRILLING COSTS.— 

7 (A) Clause (i) of section 57(a)(2)(E) is 

8 amended by striking ‘‘In the case of any taxable 

9 year beginning after December 31, 1992, this’’ 

10 and inserting ‘‘This’’. 

11 (B) Clause (ii) of section 57(a)(2)(E) is 

12 amended by striking ‘‘(30 percent in the case of 

13 taxable years beginning in 1993)’’. 

14 (12) ENVIRONMENTAL TAX.— 

15 (A) Subchapter A of chapter 1 is amended 

16 by striking part VII (and by striking the item 

17 relating to such part in the table of parts for 

18 such subchapter). 

19 (B) Paragraph (2) of section 26(b) is 

20 amended by striking subparagraph (B). 

21 (C) Section 30A(c) is amended by striking 

22 paragraph (1) and by redesignating paragraphs 

23 (2), (3), and (4) as paragraphs (1), (2), and 

24 (3), respectively. 


smartinez on DSK6TPTVN1PROD with BILLS
39 

•S 2261 PCS

1 (D) Subsection (a) of section 164 is 

2 amended by striking paragraph (5). 

3 (E) Section 275(a) is amended by striking 

4 the last sentence. 

5 (F) Section 882(a)(1) is amended by strik6 ing ‘‘, 59A’’. 

7 (G) Section 936(a)(3) is amended by strik8 ing subparagraph (A) and by redesignating sub9 paragraphs (B), (C), and (D) as subparagraphs 

10 (A), (B), and (C), respectively. 

11 (H) Section 1561(a) is amended— 

12 (i) by inserting ‘‘and’’ at the end of 

13 paragraph (2), by striking ‘‘, and’’ at the 

14 end of paragraph (3) and inserting a pe15 riod, and by striking paragraph (4), and 

16 (ii) by striking ‘‘, the amount speci17 fied in paragraph (3), and the amount 

18 specified in paragraph (4)’’ and inserting 

19 ‘‘and the amount specified in paragraph 

20 (3)’’. 

21 (I) Section 4611(e) is amended— 

22 (i) by striking ‘‘section 59A, this sec23 tion,’’ in paragraph (2)(B) and inserting 

24 ‘‘this section’’, and 

25 (ii) in paragraph (3)(A)— 


smartinez on DSK6TPTVN1PROD with BILLS
40 

•S 2261 PCS

1 (I) by striking ‘‘section 59A,’’, 

2 and 

3 (II) by striking the comma after 

4 ‘‘rate)’’. 

5 (J) Section 6425(c)(1)(A) is amended by 

6 inserting ‘‘plus’’ at end of clause (i), by striking 

7 ‘‘plus’’ and inserting ‘‘over’’ at the end of 

8 clause (ii), and by striking clause (iii). 

9 (K) Section 6655 is amended— 

10 (i) by striking clause (iii) of sub11 section (e)(2)(B) and inserting: 

12 ‘‘(iii) MODIFIED ALTERNATIVE MIN13 IMUM TAXABLE INCOME.—The term ‘modi14 fied alternative minimum taxable income’ 

15 means alternative minimum taxable income 

16 (as defined in section 55(b)(2)) but deter17 mined without regard to the alternative tax 

18 net operating loss deduction (as defined in 

19 section 56(d)).’’, and 

20 (ii) in subsection (g)(1)(A), by insert21 ing ‘‘plus’’ at the end of clause (ii), by 

22 striking clause (iii), and by redesignating 

23 clause (iv) as clause (iii). 

24 (L) Section 9507(b)(1) is amended by 

25 striking ‘‘ 59A,’’. 


smartinez on DSK6TPTVN1PROD with BILLS
41 

•S 2261 PCS

1 (13) STANDARD DEDUCTION.— 

2 (A) So much of paragraph (1) of section 

3 63(c) as follows ‘‘the sum of—‘‘ is amended to 

4 read as follows: 

5 ‘‘(A) the basic standard deduction, and 

6 ‘‘(B) the additional standard deduction.’’. 

7 (B) Subsection (e) of section 63 is amend8 ed by striking paragraphs (7), (8), and (9). 

9 (14) ANNUITIES; CERTAIN PROCEEDS OF EN10 DOWMENT AND LIFE INSURANCE CONTRACTS.—Sec11 tion 72 is amended— 

12 (A) in subsection (c)(4), by striking ‘‘; ex13 cept that if such date was before January 1, 

14 1954, then the annuity starting date is January 

15 1, 1954’’, and 

16 (B) in subsection (g)(3), by striking ‘‘Jan17 uary 1, 1954, or’’ and ‘‘, whichever is later’’. 

18 (15) UNEMPLOYMENT COMPENSATION.—Sec19 tion 85 is amended by striking subsection (c). 

20 (16) ACCIDENT AND HEALTH PLANS.—Section 

21 105(f) is amended by striking ‘‘or (d)’’. 

22 (17) FLEXIBLE SPENDING ARRANGEMENTS.— 

23 Section 106(c)(1) is amended by striking ‘‘Effective 

24 on and after January 1, 1997, gross’’ and inserting 

25 ‘‘Gross’’. 


smartinez on DSK6TPTVN1PROD with BILLS
42 

•S 2261 PCS

1 (18) CERTAIN COMBAT ZONE COMPENSATION

2 OF MEMBERS OF THE ARMED FORCES.—Subsection 

3 (c) of section 112 is amended— 

4 (A) by striking ‘‘(after June 24, 1950)’’ in 

5 paragraph (2), and 

6 (B) striking ‘‘such zone;’’ and all that fol7 lows in paragraph (3) and inserting ‘‘such 

8 zone.’’. 

9 (19) LEGAL SERVICE PLANS.— 

10 (A) Part III of subchapter B of chapter 1 

11 is amended by striking section 120 (and by 

12 striking the item relating to such section in the 

13 table of sections for such subpart). 

14 (B)(i) Section 414(n)(3)(C) is amended by 

15 striking ‘‘120,’’. 

16 (ii) Section 414(t)(2) is amended by strik17 ing ‘‘120,’’. 

18 (iii) Section 501(c) is amended by striking 

19 paragraph (20). 

20 (iv) Section 3121(a) is amended by strik21 ing paragraph (17). 

22 (v) Section 3231(e) is amended by striking 

23 paragraph (7). 

24 (vi) Section 3306(b) is amended by strik25 ing paragraph (12). 


smartinez on DSK6TPTVN1PROD with BILLS
43 

•S 2261 PCS

1 (vii) Section 6039D(d)(1) is amended by 

2 striking ‘‘120,’’. 

3 (viii) Section 209(a)(14) of the Social Se4 curity Act is amended— 

5 (I) by striking subparagraph (B), and 

6 (II) by striking ‘‘(14)(A)’’ and insert7 ing ‘‘(14)’’. 

8 (20) PRINCIPAL RESIDENCE.—Section 

9 121(b)(3) is amended— 

10 (A) by striking subparagraph (B), and 

11 (B) in subparagraph (A), by striking ‘‘(A) 

12 IN GENERAL.—’’ and moving the text 2 ems to 

13 the left. 

14 (21) CERTAIN REDUCED UNIFORMED SERVICES

15 RETIREMENT PAY.—Section 122(b)(1) is amended 

16 by striking ‘‘after December 31, 1965,’’. 

17 (22) GREAT PLAINS CONSERVATION PRO18 GRAM.—Section 126(a) is amended by striking para19 graph (6) and by redesignating paragraphs (7), (8), 

20 (9), and (10) as paragraphs (6), (7), (8), and (9), 

21 respectively. 

22 (23) TREBLE DAMAGE PAYMENTS UNDER THE

23 ANTITRUST LAW.—Section 162(g) is amended by 

24 striking the last sentence. 


smartinez on DSK6TPTVN1PROD with BILLS
44 

•S 2261 PCS

1 (24) STATE LEGISLATORS’ TRAVEL EXPENSES

2 AWAY FROM HOME.—Paragraph (4) of section 

3 162(h) is amended by striking ‘‘For taxable years 

4 beginning after December 31, 1980, this’’ and in5 serting ‘‘This’’. 

6 (25) INTEREST.— 

7 (A) Section 163 is amended— 

8 (i) by striking paragraph (6) of sub9 section (d), and 

10 (ii) by striking paragraph (5) of sub11 section (h). 

12 (B) Section 56(b)(1)(C) is amended by 

13 striking clause (ii) and by redesignating clauses 

14 (iii), (iv), and (v) as clauses (ii), (iii), and (iv), 

15 respectively. 

16 (26) QUALIFIED MOTOR VEHICLE TAXES.—Sec17 tion 164 is amended by striking subsections (a)(6) 

18 and (b)(6). 

19 (27) DISASTER LOSSES.— 

20 (A) Subsection (h) of section 165 is 

21 amended by striking paragraph (3). 

22 (B) Subsection (i) of section 165 is amend23 ed— 

24 (i) in paragraph (1)— 


smartinez on DSK6TPTVN1PROD with BILLS
45 

•S 2261 PCS

1 (I) by striking ‘‘(as defined by 

2 clause (ii) of subsection (h)(3)(C))’’, 

3 and 

4 (II) by striking ‘‘(as defined by 

5 clause (i) of such subsection)’’, 

6 (ii) by striking ‘‘(as defined by sub7 section (h)(3)(C)(i)’’ in paragraph (4), and 

8 (iii) by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(5) FEDERALLY DECLARED DISASTERS.—For 

11 purposes of this subsection— 

12 ‘‘(A) IN GENERAL.—The term ‘Federally 

13 declared disaster’ means any disaster subse14 quently determined by the President of the 

15 United States to warrant assistance by the Fed16 eral Government under the Robert T. Stafford 

17 Disaster Relief and Emergency Assistance Act. 

18 ‘‘(B) DISASTER AREA.—The term ‘disaster 

19 area’ means the area so determined to warrant 

20 such assistance.’’. 

21 (C) Section 1033(h)(3) is amended by 

22 striking ‘‘section 165(h)(3)(C)’’ and inserting 

23 ‘‘section 165(i))(5)’’. 

24 (28) CHARITABLE, ETC., CONTRIBUTIONS AND

25 GIFTS.—Section 170 is amended— 


smartinez on DSK6TPTVN1PROD with BILLS
46 

•S 2261 PCS

1 (A) by striking paragraph (3) of subsection 

2 (b), 

3 (B) by striking paragraph (6) of sub4 section (e), and 

5 (C) by striking subsection (k). 

6 (29) AMORTIZABLE BOND PREMIUM.— 

7 (A) Subparagraph (B) of section 171(b)(1) 

8 is amended to read as follows: 

9 ‘‘(B)(i) with reference to the amount pay10 able on maturity (or if it results in a smaller 

11 amortizable bond premium attributable to the 

12 period before the call date, with reference to the 

13 amount payable on the earlier call date), in the 

14 case of a bond described in subsection (a)(1), 

15 and 

16 ‘‘(ii) with reference to the amount payable 

17 on maturity or on an earlier call date, in the 

18 case of a bond described in subsection (a)(2).’’. 

19 (B) Paragraphs (2) and (3)(B) of section 

20 171(b) are each amended by striking ‘‘para21 graph (1)(B)(ii)’’ and inserting ‘‘paragraph 

22 (1)(B)(i)’’. 

23 (30) NET OPERATING LOSS CARRYBACKS, 

24 CARRYOVERS, AND CARRYFORWARDS.— 

25 (A) Section 172 is amended— 


smartinez on DSK6TPTVN1PROD with BILLS
47 

•S 2261 PCS

1 (i) by striking subparagraphs (D), 

2 (H), (I) and (J) of subsection (b)(1) and 

3 by redesignating subparagraphs (E), (F), 

4 and (G) as subparagraphs (D), (E), and 

5 (F), respectively, and 

6 (ii) by striking subsections (g) and (j) 

7 and by redesignating subsections (h), (i), 

8 and (k) as subsections (g), (h), and (i), re9 spectively. 

10 (B) Each of the following provisions of sec11 tion 172 (as redesignated by subparagraph (A)) 

12 are amended as follows: 

13 (i) By striking ‘‘ending after August 

14 2, 1989’’ in subsection (b)(1)(D)(i)(II). 

15 (ii) By striking ‘‘subsection (h)’’ in 

16 subsection (b)(1)(D)(ii) and inserting 

17 ‘‘subsection (g)’’. 

18 (iii) By striking ‘‘section 

19 165(h)(3)(C)(i)’’ in subsection 

20 (b)(1)(E)(ii)(II), as amended by this Act, 

21 and inserting ‘‘section 165(i)(5)’’. 

22 (iv) By striking ‘‘subsection (i)’’ and 

23 all that follows in the last sentence of sub24 section (b)(1)(E)(ii) and inserting ‘‘sub25 section (h)).’’. 


smartinez on DSK6TPTVN1PROD with BILLS
48 

•S 2261 PCS

1 (v) By striking ‘‘subsection (i)’’ in 

2 subsection (b)(1)(F) and inserting ‘‘sub3 section (h)’’. 

4 (vi) By striking subparagraph (F) of 

5 paragraph (2) of subsection (g). 

6 (vii) By striking ‘‘subsection 

7 (b)(1)(E)’’ each place it appears in sub8 section (g)(4) and inserting ‘‘subsection 

9 (b)(1)(D)’’. 

10 (viii) By striking the last sentence of 

11 subsection (h)(1). 

12 (ix) By striking ‘‘subsection 

13 (b)(1)(G)’’ each place it appears in sub14 section (h)(3) and inserting ‘‘subsection 

15 (b)(1)(F)’’. 

16 (C) Paragraph (5) of section 382(l) is 

17 amended by striking subparagraph (F) and by 

18 redesignating subparagraphs (G) and (H) as 

19 subparagraphs (F) and (G), respectively. 

20 (31) RESEARCH AND EXPERIMENTAL EXPENDI21 TURES.—Subparagraph (A) of section 174(a)(2) is 

22 amended to read as follows: 

23 ‘‘(I) WITHOUT CONSENT.—A taxpayer 

24 may, without the consent of the Secretary, 

25 adopt the method provided in this subsection 


smartinez on DSK6TPTVN1PROD with BILLS
49 

•S 2261 PCS

1 for his first taxable year for which expenditures 

2 described in paragraph (1) are paid or in3 curred.’’. 

4 (32) AMORTIZATION OF CERTAIN RESEARCH

5 AND EXPERIMENTAL EXPENDITURES.—Paragraph 

6 (2) of section 174(b) is amended by striking ‘‘begin7 ning after December 31, 1953’’. 

8 (33) SOIL AND WATER CONSERVATION EXPEND9 ITURES.—Paragraph (1) of section 175(d) is amend10 ed to read as follows: 

11 ‘‘(1) WITHOUT CONSENT.—A taxpayer may, 

12 without the consent of the Secretary, adopt the 

13 method provided in this section for the taxpayer’s 

14 first taxable year for which expenditures described in 

15 subsection (a) are paid or incurred.’’. 

16 (34) CLEAN-FUEL VEHICLES.— 

17 (A) Part VI of subchapter A of chapter 1 

18 is amended by striking section 179A (and by 

19 striking the item relating to such section in the 

20 table of sections for such part). 

21 (B) Section 30C(e) is amended by adding 

22 at the end the following: 

23 ‘‘(7) REFERENCE.—For purposes of this sec24 tion, any reference to section 179A shall be treated 


smartinez on DSK6TPTVN1PROD with BILLS
50 

•S 2261 PCS

1 as a reference to such section as in effect imme2 diately before its repeal.’’. 

3 (C) Section 62(a) is amended by striking 

4 paragraph (14). 

5 (D) Section 263(a)(1) is amended by strik6 ing subparagraph (H). 

7 (E) Section 280F(a)(1) is amended by 

8 striking subparagraph (C). 

9 (F) Section 312(k)(3) is amended by strik10 ing ‘‘179A,’’ each place it appears. 

11 (G) Section 1016(a) is amended by strik12 ing paragraph (24). 

13 (H) Section 1245(a) is amended by strik14 ing ‘‘179A,’’ each place it appears in para15 graphs (2)(C) and (3)(C). 

16 (35) QUALIFIED DISASTER EXPENSES.—Part 

17 VI of subchapter A of chapter 1 is amended by 

18 striking section 198A (and by striking the item re19 lating to such section in the table of sections for 

20 such part). 

21 (36) ACTIVITIES NOT ENGAGED IN FOR PROF22 IT.—Section 183(e)(1) is amended by striking the 

23 last sentence. 

24 (37) DOMESTIC PRODUCTION ACTIVITIES.— 


smartinez on DSK6TPTVN1PROD with BILLS
51 

•S 2261 PCS

1 (A) Subsection (a) of section 199 is 

2 amended by striking paragraph (2) and by 

3 striking ‘‘IN GENERAL.—’’, by redesignating 

4 subparagraphs (A) and (B) of paragraph (1) as 

5 paragraphs (1) and (2), and by moving para6 graphs (1) and (2) (as so redesignated) 2 ems 

7 to the left. 

8 (B) Paragraphs (2) and (6)(B) of section 

9 199(d) are each amended by striking 

10 ‘‘(a)(1)(B)’’ and inserting ‘‘(a)(2)’’. 

11 (38) RETIREMENT SAVINGS.— 

12 (A) Subparagraph (A) of section 219(b)(5) 

13 is amended to read as follows: 

14 ‘‘(A) IN GENERAL.—The deductible 

15 amount is $5,000.’’. 

16 (B) Clause (ii) of section 219(b)(5)(B) is 

17 amended to read: 

18 ‘‘(ii) APPLICABLE AMOUNT.—For pur19 poses of clause (i), the applicable amount 

20 is $1,000.’’. 

21 (C) Clause (ii) of section 219(g)(2)(A) is 

22 amended by striking ‘‘for a taxable year begin23 ning after December 31, 2006’’. 


smartinez on DSK6TPTVN1PROD with BILLS
52 

•S 2261 PCS

1 (D) Section 219(g)(3)(B) is amended by 

2 striking clauses (i) and (ii) and inserting the 

3 following: 

4 ‘‘(i) In the case of a taxpayer filing a 

5 joint return, $80,000. 

6 ‘‘(ii) In the case of any other taxpayer 

7 (other than a married individual filing a 

8 separate return), $50,000.’’. 

9 (E) Paragraph (8) of section 219(g) is 

10 amended by striking ‘‘the dollar amount in the 

11 last row of the table contained in paragraph 

12 (3)(B)(i), the dollar amount in the last row of 

13 the table contained in paragraph (3)(B)(ii), and 

14 the dollar amount contained in paragraph 

15 (7)(A),’’ and inserting ‘‘each of the dollar 

16 amounts in paragraphs (3)(B)(i), (3)(B)(ii), 

17 and (7)(A)’’. 

18 (39) REPORTS REGARDING QUALIFIED VOL19 UNTARY RETIREMENT CONTRIBUTIONS.— 

20 (A) Section 219 is amended by striking 

21 paragraph (4) of subsection (f) and subsection 

22 (h). 

23 (B) Section 6652 is amended by striking 

24 subsection (g). 


smartinez on DSK6TPTVN1PROD with BILLS
53 

•S 2261 PCS

1 (40) INTEREST ON EDUCATION LOANS.—Para2 graph (1) of section 221(b) is amended by striking 

3 ‘‘shall not exceed’’ and all that follows and inserting 

4 ‘‘shall not exceed $2,500.’’. 

5 (41) DIVIDENDS RECEIVED ON CERTAIN PRE6 FERRED STOCK; AND DIVIDENDS PAID ON CERTAIN

7 PREFERRED STOCK OF PUBLIC UTILITIES.— 

8 (A) Sections 244 and 247 are hereby re9 pealed, and the table of sections for part VIII 

10 of subchapter B of chapter 1 is amended by 

11 striking the items relating to sections 244 and 

12 247. 

13 (B) Paragraph (5) of section 172(d) is 

14 amended to read as follows: 

15 ‘‘(5) COMPUTATION OF DEDUCTION FOR DIVI16 DENDS RECEIVED.—The deductions allowed by sec17 tion 243 (relating to dividends received by corpora18 tions) and 245 (relating to dividends received from 

19 certain foreign corporations) shall be computed with20 out regard to section 246(b) (relating to limitation 

21 on aggregate amount of deductions).’’. 

22 (C) Paragraph (1) of section 243(c) is 

23 amended to read as follows: 

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

25 received from a 20-percent owned corporation, subVerDate Mar 15 2010 22:43 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.PCS S2261

smartinez on DSK6TPTVN1PROD with BILLS
54 

•S 2261 PCS

1 section (a)(1) shall be applied by substituting ’80 

2 percent’ for ‘70 percent’.’’. 

3 (D) Section 243(d) is amended by striking 

4 paragraph (4). 

5 (E) Section 246 is amended— 

6 (i) by striking ‘‘, 244,’’ in subsection 

7 (a)(1), 

8 (ii) in subsection (b)(1)— 

9 (I) by striking ‘‘sections 

10 243(a)(1), and 244(a),’’ the first 

11 place it appears and inserting ‘‘section 

12 243(a)(1)’’, 

13 (II) by striking ‘‘244(a),’’ the 

14 second place it appears, and 

15 (III) by striking ‘‘subsection (a) 

16 or (b) of section 245, and 247,’’ and 

17 inserting ‘‘and subsection (a) or (b) of 

18 section 245,’’, and 

19 (iii) by striking ‘‘, 244,’’ in subsection 

20 (c)(1). 

21 (F) Section 246A is amended by striking 

22 ‘‘, 244,’’ both places it appears in subsections 

23 (a) and (e). 

24 (G) Sections 263(g)(2)(B)(iii), 277(a), 

25 301(e)(2), 469(e)(4), 512(a)(3)(A), subparaVerDate Mar 15 2010 22:43 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.PCS S2261

smartinez on DSK6TPTVN1PROD with BILLS
55 

•S 2261 PCS

1 graphs (A), (C), and (D) of section 805(a)(4), 

2 805(b)(5), 812(e)(2)(A), 815(c)(2)(A)(iii), 

3 832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B) are 

4 each amended by striking ‘‘, 244,’’ each place 

5 it appears. 

6 (H) Section 1244(c)(2)(C) is amended by 

7 striking ‘‘244,’’. 

8 (I) Section 805(a)(4)(B) is amended by 

9 striking ‘‘, 244(a),’’ each place it appears. 

10 (J) Section 810(c)(2)(B) is amended by 

11 striking ‘‘244 (relating to dividends on certain 

12 preferred stock of public utilities),’’. 

13 (K) The amendments made by this para14 graph shall not apply to preferred stock issued 

15 before October 1, 1942 (determined in the same 

16 manner as under section 247 of the Internal 

17 Revenue Code of 1986 as in effect before its re18 peal by such amendments). 

19 (42) ORGANIZATION EXPENSES.—Section 

20 248(c) is amended by striking ‘‘beginning after De21 cember 31, 1953,’’ and by striking the last sentence. 

22 (43) BOND REPURCHASE PREMIUM.—Section 

23 249(b)(1) is amended by striking ‘‘, in the case of 

24 bonds or other evidences of indebtedness issued after 

25 February 28, 1913,’’. 


smartinez on DSK6TPTVN1PROD with BILLS
56 

•S 2261 PCS

1 (44) AMOUNT OF GAIN WHERE LOSS PRE2 VIOUSLY DISALLOWED.—Section 267(d) is amended 

3 by striking ‘‘(or by reason of section 24(b) of the In4 ternal Revenue Code of 1939)’’ in paragraph (1), by 

5 striking ‘‘after December 31, 1953,’’ in paragraph 

6 (2), by striking the second sentence, and by striking 

7 ‘‘or by reason of section 118 of the Internal Revenue 

8 Code of 1939’’ in the last sentence. 

9 (45) ACQUISITIONS MADE TO EVADE OR AVOID

10 INCOME TAX.—Paragraphs (1) and (2) of section 

11 269(a) are each amended by striking ‘‘or acquired 

12 on or after October 8, 1940,’’. 

13 (46) MEALS AND ENTERTAINMENT.—Para14 graph (3) of section 274(n) is amended— 

15 (A) by striking ‘‘(A) IN GENERAL.—’’, 

16 (B) by striking ‘‘substituting ‘the applica17 ble percentage’ for’’ and inserting ‘‘substituting 

18 ‘80 percent’ for’’, and 

19 (C) by striking subparagraph (B). 

20 (47) INTEREST ON INDEBTEDNESS INCURRED

21 BY CORPORATIONS TO ACQUIRE STOCK OR ASSETS

22 OF ANOTHER CORPORATION.— 

23 (A) Section 279 is amended— 

24 (i) by striking ‘‘after December 31, 

25 1967,’’ in subsection (a)(2), 


smartinez on DSK6TPTVN1PROD with BILLS
57 

•S 2261 PCS

1 (ii) by striking ‘‘after October 9, 

2 1969,’’ in subsection (b), 

3 (iii) by striking ‘‘after October 9, 

4 1969, and’’ in subsection (d)(5), and 

5 (iv) by striking subsection (i) and re6 designating subsection (j) as subsection (i). 

7 (B) The amendments made by this para8 graph shall not— 

9 (i) apply to obligations issued on or 

10 before October 9, 1969 (determined in the 

11 same manner as under section 279 of the 

12 Internal Revenue Code of 1986 as in effect 

13 before such amendments), and 

14 (ii) be construed to require interest on 

15 obligations issued on or before December 

16 31, 1967, to be taken into account under 

17 section 279(a)(2) of such Code (as in ef18 fect after such amendments). 

19 (48) BANK HOLDING COMPANIES.— 

20 (A) Clause (iii) of section 304(b)(3)(D) is 

21 repealed. 

22 (B) The heading of subparagraph (D) of 

23 section 304(b)(3) is amended by striking ‘‘AND

24 SPECIAL RULE.’’ 


smartinez on DSK6TPTVN1PROD with BILLS
58 

•S 2261 PCS

1 (49) EFFECT ON EARNINGS AND PROFITS.— 

2 Subsection (d) of section 312 is amended by striking 

3 paragraph (2) and redesignating paragraph (3) as 

4 paragraph (2). 

5 (50) DISQUALIFIED STOCK.—Paragraph (3) of 

6 section 355(d) is amended by striking ‘‘after Octo7 ber 9, 1990, and’’ each place it appears. 

8 (51) BASIS TO CORPORATIONS.—Section 362 is 

9 amended by striking ‘‘on or after June 22, 1954’’ in 

10 subsection (a) and by striking ‘‘, on or after June 

11 22, 1954,’’ each place it appears in subsection (c). 

12 (52) INDIVIDUAL RETIREMENT ACCOUNTS.— 

13 Clause (i) of section 408(p)(2)(E) is amended to 

14 read as follows: 

15 ‘‘(i) IN GENERAL.—For purposes of 

16 subparagraph (A)(ii), the applicable 

17 amount is $10,000.’’. 

18 (53) TAX CREDIT EMPLOYEE STOCK OWNER19 SHIP PLANS.—Section 409 is amended by striking 

20 subsection (q). 

21 (54) CATCH-UP CONTRIBUTIONS.—Subpara22 graph (B) of section 414(v)(2) is amended to read 

23 as follows: 

24 ‘‘(II)(i) In the case of an applicable em25 ployer plan other than a plan described in secVerDate Mar 15 2010 22:43 Apr 28, 2014 Jkt 039200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.PCS S2261

smartinez on DSK6TPTVN1PROD with BILLS
59 

•S 2261 PCS

1 tion 401(k)(11) or 408(p), the applicable dollar 

2 amount is $5,000. 

3 ‘‘(ii) In the case of an applicable employer 

4 plan described in section 401(k)(11) or 408(p), 

5 the applicable dollar amount is $2,500.’’. 

6 (55) EMPLOYEE STOCK PURCHASE PLANS.— 

7 Section 423(a) is amended by striking ‘‘after De8 cember 31, 1963,’’. 

9 (56) TRANSITION RULES.— 

10 (A)(i) Paragraph (5) of section 430(c) is 

11 amended by striking subparagraph (B) and by 

12 striking ‘‘(A) IN GENERAL.—’’ 

13 (ii) Paragraph (5) of section 303(c) of the 

14 Employee Retirement Income Security Act of 

15 1974 (29 U.S.C.1082(c)) is amended by strik16 ing subparagraph (B) and by striking ‘‘(A) IN

17 GENERAL.—’’ 

18 (B)(i) Paragraph (2) of section 430(h) is 

19 amended by striking subparagraph (G). 

20 (ii) Paragraph (2) of section 303(h) of the 

21 Employee Retirement Income Security Act of 

22 1974 (29 U.S.C.1082(h)) is amended by strik23 ing subparagraph (G). 


smartinez on DSK6TPTVN1PROD with BILLS
60 

•S 2261 PCS

1 (C)(i) Paragraph (3) of section 436(j) is 

2 amended by striking subparagraphs (B) and 

3 (C) and by striking ‘‘(A) IN GENERAL.—’’. 

4 (ii) Subparagraph (C) of section 206(g)(9) 

5 of the Employee Retirement Income Security 

6 Act of 1974 (29 U.S.C. 1056(g)(9)) is amended 

7 by striking clauses (ii) and (iii) and by striking 

8 ‘‘(i) IN GENERAL.—’’. 

9 (D)(i) Section 436 is amended by striking 

10 subsection (m). 

11 (ii) Section 206(g) of the Employee Retire12 ment Income Security Act of 1974 (29 U.S.C. 

13 1056(g)) is amended by striking paragraph 

14 (10). 

15 (57) LIMITATION ON DEDUCTIONS FOR CER16 TAIN FARMING.— 

17 (A) Section 464 is amended by striking 

18 ‘‘any farming syndicate (as defined in sub19 section (c))’’ both places it appears in sub20 sections (a) and (b) and inserting ‘‘any tax21 payer to whom subsection (d) applies’’. 

22 (B)(i) Subsection (c) of section 464 is 

23 hereby moved to the end of section 461 and re24 designated as subsection (j). 

25 (ii) Such subsection (j) is amended— 


smartinez on DSK6TPTVN1PROD with BILLS
61 

•S 2261 PCS

1 (I) by striking ‘‘For purposes of this 

2 section’’ in paragraph (1) and inserting 

3 ‘‘For purposes of subsection (i)(4)’’, and 

4 (II) by adding at the end the fol5 lowing new paragraphs: 

6 ‘‘(3) FARMING.—For purposes of this sub7 section, the term ‘farming’ has the meaning given to 

8 such term by section 464(e). 

9 ‘‘(4) LIMITED ENTREPRENEUR.—For purposes 

10 of this subsection, the term ‘limited entrepreneur’ 

11 means a person who— 

12 ‘‘(A) has an interest in an enterprise other 

13 than as a limited partner, and 

14 ‘‘(B) does not actively participate in the 

15 management of such enterprise.’’. 

16 (iii) Paragraph (4) of section 461(i) is 

17 amended by striking ‘‘section 464(c)’’ and 

18 inserting ‘‘subsection (j)’’. 

19 (C) Section 464 is amended— 

20 (i) by striking subsections (e) and (g) 

21 and redesignating subsections (d) and (f) 

22 as subsections (c) and (d), respectively, 

23 and 

24 (ii) by adding at the end the following 

25 new subsection: 


smartinez on DSK6TPTVN1PROD with BILLS
62 

•S 2261 PCS

1 ‘‘(e) FARMING.—For purposes of this section, the 

2 term ‘farming’ means the cultivation of land or the raising 

3 or harvesting of any agricultural or horticultural com4 modity including the raising, shearing, feeding, caring for, 

5 training, and management of animals. For purposes of the 

6 preceding sentence, trees (other than trees bearing fruit 

7 or nuts) shall not be treated as an agricultural or horti8 cultural commodity.’’. 

9 (D) Subsection (d) of section 464 of such 

10 Code (as redesignated by subparagraph (C)) is 

11 amended— 

12 (i) by striking paragraph (1) and re13 designating paragraphs (2), (3), and (4) as 

14 paragraphs (1), (2), and (3), respectively, 

15 and 

16 (ii) by striking ‘‘SUBSECTIONS (A) 

17 AND (B) TO APPLY TO’’ in the heading. 

18 (E) Subparagraph (A) of section 58(a)(2) 

19 is amended by striking ‘‘section 464(c)’’ and in20 serting ‘‘section 461(j)’’. 

21 (58) DEDUCTIONS LIMITED TO AMOUNT AT

22 RISK.—Subparagraph (A) of section 465(c)(3) is 

23 amended by striking ‘‘In the case of taxable years 

24 beginning after December 31, 1978, this’’ and in25 serting ‘‘This’’. 


smartinez on DSK6TPTVN1PROD with BILLS
63 

•S 2261 PCS

1 (59) PASSIVE ACTIVITY LOSSES AND CREDITS

2 LIMITED.— 

3 (A) Section 469 is amended by striking 

4 subsection (m). 

5 (B) Subsection (b) of section 58 is amend6 ed by adding ‘‘and’’ at the end of paragraph 

7 (1), by striking paragraph (2), and by redesig8 nating paragraph (3) as paragraph (2). 

9 (60) ADJUSTMENTS REQUIRED BY CHANGES IN

10 METHOD OF ACCOUNTING.—Section 481(b)(3) is 

11 amended by striking subparagraph (C). 

12 (61) EXEMPTION FROM TAX ON CORPORATIONS, 

13 CERTAIN TRUSTS, ETC.—Section 501 is amended by 

14 striking subsection (s). 

15 (62) REQUIREMENTS FOR EXEMPTION.— 

16 (A) Section 503(a)(1) is amended to read 

17 as follows: 

18 ‘‘(1) GENERAL RULE.—An organization de19 scribed in paragraph (17) or (18) of section 501(c), 

20 or described in section 401(a) and referred to in sec21 tion 4975(g)(2) or (3), shall not be exempt from 

22 taxation under section 501(a) if it has engaged in a 

23 prohibited transaction.’’. 

24 (B) Paragraph (2) of section 503(a) is 

25 amended by striking ‘‘described in section 


smartinez on DSK6TPTVN1PROD with BILLS
64 

•S 2261 PCS

1 501(c)(17) or (18) or paragraph (a)(1)(B)’’ and 

2 inserting ‘‘described in paragraph (1)’’. 

3 (C) Subsection (c) of section 503 is 

4 amended by striking ‘‘described in section 

5 501(c)(17) or (18) or subsection (a)(1)(B)’’ and 

6 inserting ‘‘described in subsection (a)(1)’’. 

7 (63) ACCUMULATED TAXABLE INCOME.—Para8 graph (1) of section 535(b) and paragraph (1) of 

9 section 545(b) are each amended by striking ‘‘sec10 tion 531’’ and all that follows and inserting ‘‘section 

11 531 or the personal holding company tax imposed by 

12 section 541.’’. 

13 (64) DEFINITION OF PROPERTY.—Subsection 

14 (b) of section 614 is amended— 

15 (A) by striking paragraphs (3)(C) and (5), 

16 and 

17 (B) in paragraph (4), by striking ‘‘which18 ever of the following years is later: The first 

19 taxable year beginning after December 31, 

20 1963, or’’. 

21 (65) AMOUNTS RECEIVED BY SURVIVING ANNU22 ITANT UNDER JOINT AND SURVIVOR ANNUITY CON23 TRACT.—Subparagraph (A) of section 691(d)(1) is 

24 amended by striking ‘‘after December 31, 1953, 

25 and’’. 


smartinez on DSK6TPTVN1PROD with BILLS
65 

•S 2261 PCS

1 (66) INCOME TAXES OF MEMBERS OF ARMED

2 FORCES ON DEATH.—Section 692(a)(1) is amended 

3 by striking ‘‘after June 24, 1950’’. 

4 (67) SPECIAL RULES FOR COMPUTING RE5 SERVES.—Paragraph (7) of section 807(e) is amend6 ed by striking subparagraph (B) and redesignating 

7 subparagraph (C) as subparagraph (B). 

8 (68) INSURANCE COMPANY TAXABLE INCOME.— 

9 (A) Section 832(e) is amended by striking 

10 ‘‘of taxable years beginning after December 31, 

11 1966,’’. 

12 (B) Section 832(e)(6) is amended by strik13 ing ‘‘In the case of any taxable year beginning 

14 after December 31, 1970, the’’ and inserting 

15 ‘‘The’’. 

16 (69) CAPITALIZATION OF CERTAIN POLICY AC17 QUISITION EXPENSES.—Section 848 is amended by 

18 striking subsection (j). 

19 (70) TAX ON NONRESIDENT ALIEN INDIVID20 UALS.—Subparagraph (B) of section 871(a)(1) is 

21 amended to read as follows: 

22 ‘‘(II) gains described in subsection (b) or 

23 (c) of section 631,’’. 


smartinez on DSK6TPTVN1PROD with BILLS
66 

•S 2261 PCS

1 (71) LIMITATION ON CREDIT.—Paragraph (2) 

2 of section 904(d) is amended by striking subpara3 graph (J). 

4 (72) FOREIGN EARNED INCOME.—Clause (i) of 

5 section 911(b)(2)(D) is amended to read as follows: 

6 ‘‘(i) IN GENERAL.—The exclusion 

7 amount for any calendar year is $80,000.’’. 

8 (73) BASIS OF PROPERTY ACQUIRED FROM DE9 CEDENT.—Section 1014 is amended— 

10 (A) by striking ‘‘or section 811(j) of the 

11 Internal Revenue Code of 1939 where the dece12 dent died after October 21, 1942’’ in subsection 

13 (a)(2), and 

14 (B) by striking paragraphs (7) and (8) of 

15 subsection (b). 

16 (74) ADJUSTED BASIS.—Section 1016(a) is 

17 amended by striking paragraph (12). 

18 (75) PROPERTY ON WHICH LESSEE HAS MADE

19 IMPROVEMENTS.—Section 1019 is amended by strik20 ing the last sentence. 

21 (76) INVOLUNTARY CONVERSION.—Section 

22 1033 is amended by striking subsection (j) and by 

23 redesignating subsections (k) and (l) as subsections 

24 (j) and (k), respectively. 


smartinez on DSK6TPTVN1PROD with BILLS
67 

•S 2261 PCS

1 (77) PROPERTY ACQUIRED DURING AFFILI2 ATION.—Section 1051 is hereby repealed, and the 

3 table of sections for part IV of subchapter O of 

4 chapter 1 is amended by striking the item relating 

5 to section 1051. 

6 (78) CAPITAL GAINS AND LOSSES.—Section 

7 1222 is amended by striking the last sentence. 

8 (79) HOLDING PERIOD OF PROPERTY.— 

9 (A) Paragraph (1) of section 1223 is 

10 amended by striking ‘‘after March 1, 1954,’’. 

11 (B) Paragraph (4) of section 1223 is 

12 amended by striking ‘‘ ‘(or under so much of 

13 section 1052(c) as refers to section 113(a)(23) 

14 of the Internal Revenue Code of 1939)’ ’’. 

15 (C) Paragraphs (6) and (8) of section 

16 1223 are repealed. 

17 (80) PROPERTY USED IN THE TRADE OR BUSI18 NESS AND INVOLUNTARY CONVERSIONS.—Subpara19 graph (A) of section 1231(c)(2) is amended by strik20 ing ‘‘beginning after December 31, 1981’’. 

21 (81) SALE OR EXCHANGE OF PATENTS.—Sec22 tion 1235 is amended— 

23 (A) by striking subsection (c) and by re24 designating subsections (d) and (e) as sub25 sections (c) and (d), respectively, and 


smartinez on DSK6TPTVN1PROD with BILLS
68 

•S 2261 PCS

1 (B) by striking ‘‘subsection (d)’’ in sub2 section (b)(2)(B) and inserting ‘‘subsection 

3 (c)’’. 

4 (82) DEALERS IN SECURITIES.—Subsection (b) 

5 of section 1236 is amended by striking ‘‘after No6 vember 19, 1951,’’. 

7 (83) SALE OF PATENTS.—Subsection (a) of sec8 tion 1249 is amended by striking ‘‘after December 

9 31, 1962,’’. 

10 (84) GAIN FROM DISPOSITION OF FARMLAND.— 

11 Paragraph (1) of section 1252(a) is amended— 

12 (A) by striking ‘‘after December 31, 1969’’ 

13 the first place it appears, and 

14 (B) by striking ‘‘after December 31, 

15 1969,’’ in subparagraph (A). 

16 (85) TREATMENT OF AMOUNTS RECEIVED ON

17 RETIREMENT OR SALE OR EXCHANGE OF DEBT IN18 STRUMENTS.—Subsection (c) of section 1271 is 

19 amended to read as follows: 

20 ‘‘(c) SPECIAL RULE FOR CERTAIN OBLIGATIONS

21 WITH RESPECT TO WHICH ORIGINAL ISSUE DISCOUNT

22 NOT CURRENTLY INCLUDIBLE.— 

23 ‘‘(1) IN GENERAL.—On the sale or exchange of 

24 debt instruments issued by a government or political 

25 subdivision thereof after December 31, 1954, and 


smartinez on DSK6TPTVN1PROD with BILLS
69 

•S 2261 PCS

1 before July 2, 1982, or by a corporation after De2 cember 31, 1954, and on or before May 27, 1969, 

3 any gain realized which does not exceed— 

4 ‘‘(A) an amount equal to the original issue 

5 discount, or 

6 ‘‘(B) if at the time of original issue there 

7 was no intention to call the debt instrument be8 fore maturity, an amount which bears the same 

9 ratio to the original issue discount as the num10 ber of complete months that the debt instru11 ment was held by the taxpayer bears to the 

12 number of complete months from the date of 

13 original issue to the date of maturity, shall be 

14 considered as ordinary income. 

15 ‘‘(2) SUBSECTION (A)(2)(A) NOT TO APPLY.— 

16 Subsection (a)(2)(A) shall not apply to any debt in17 strument referred to in paragraph (1) of this sub18 section. 

19 ‘‘(3) CROSS REFERENCE.—For current inclu20 sion of original issue discount, see section 1272.’’. 

21 (86) AMOUNT AND METHOD OF ADJUST22 MENT.—Section 1314 is amended by striking sub23 section (d) and by redesignating subsection (e) as 

24 subsection (d). 


smartinez on DSK6TPTVN1PROD with BILLS
70 

•S 2261 PCS

1 (87) ELECTION; REVOCATION; TERMINATION.— 

2 Clause (iii) of section 1362(d)(3)(A) is amended by 

3 striking ‘‘unless’’ and all that follows and inserting 

4 ‘‘unless the corporation was an S corporation for 

5 such taxable year.’’. 

6 (88) OLD-AGE, SURVIVORS, AND DISABILITY IN7 SURANCE.—Subsection (a) of section 1401 is amend8 ed by striking ‘‘the following percent’’ and all that 

9 follows and inserting ‘‘12.4 percent of the amount of 

10 the self-employment income for such taxable year.’’. 

11 (89) HOSPITAL INSURANCE.—Paragraph (1) of 

12 section 1401(b) is amended by striking: ‘‘the fol13 lowing percent’’ and all that follows and inserting 

14 ‘‘2.9 percent of the amount of the self-employment 

15 income for such taxable year.’’. 

16 (90) MINISTERS, MEMBERS OF RELIGIOUS OR17 DERS, AND CHRISTIAN SCIENCE PRACTITIONERS.— 

18 Paragraph (3) of section 1402(e) is amended— 

19 (A) by striking ‘‘whichever of the following 

20 dates is later: (A)’’ and 

21 (B) by striking ‘‘;or (B)’ ’’ and all that fol22 lows and inserting a period. 

23 (91) WITHHOLDING OF TAX ON NONRESIDENT

24 ALIENS.—The first sentence of subsection (b) of sec25 tion 1441 and the first sentence of paragraph (5) of 


smartinez on DSK6TPTVN1PROD with BILLS
71 

•S 2261 PCS

1 section 1441(c) are each amended by striking ‘‘gains 

2 subject to tax’’ and all that follows through ‘‘Octo3 ber 4, 1966’’ and inserting ‘‘and gains subject to tax 

4 under section 871(a)(1)(D)’’. 

5 (92) AFFILIATED GROUP DEFINED.—Subpara6 graph (A) of section 1504(a)(3) is amended by strik7 ing ‘‘for a taxable year which includes any period 

8 after December 31, 1984’’ in clause (i) and by strik9 ing ‘‘in a taxable year beginning after December 31, 

10 1984’’ in clause (ii). 

11 (93) DISALLOWANCE OF THE BENEFITS OF

12 THE GRADUATED CORPORATE RATES AND ACCUMU13 LATED EARNINGS CREDIT.— 

14 (A) Subsection (a) of section 1551 is 

15 amended— 

16 (i) by striking paragraph (1) and by 

17 redesignating paragraphs (2) and (3) as 

18 paragraphs (1) and (2), respectively, and 

19 (ii) by striking ‘‘after June 12, 1963,’’ 

20 each place it appears. 

21 (B) Section 1551(b) is amended— 

22 (i) by striking ‘‘or (2)’’ in paragraph 

23 (1), and 

24 (ii) by striking ‘‘(a)(3)’’ in paragraph 

25 (2) and inserting ‘‘(a)(2)’’. 


smartinez on DSK6TPTVN1PROD with BILLS
72 

•S 2261 PCS

1 (94) CREDIT FOR STATE DEATH TAXES.— 

2 (A)(i) Part II of subchapter A of chapter 

3 11 is amended by striking section 2011 (and by 

4 striking the item relating to such section in the 

5 table of sections for such subpart). 

6 (ii) Section 2106(a)(4) is amended by 

7 striking ‘‘section 2011(a)’’ and inserting 

8 ‘‘2058(a)’’. 

9 (B)(i) Subchapter A of chapter 13 is 

10 amended by striking section 2604 (and by strik11 ing the item relating to such section in the 

12 table of sections for such subpart). 

13 (ii) Clause (ii) of section 164(b)(4)(A) is 

14 amended by inserting ‘‘(as in effect before its 

15 repeal)’’ after ‘‘section 2604’’. 

16 (iii) Section 2654(a)(1) is amended by 

17 striking ‘‘(computed without regard to section 

18 2604)’’. 

19 (95) GROSS ESTATE.—Subsection (c) of section 

20 2031 is amended by striking paragraph (3) and by 

21 amending paragraph (1)(B) to read as follows: 

22 ‘‘(II) $500,000.’’. 

23 (96)(A) Part IV of subchapter A of chapter 11 

24 is amended by striking section 2057 (and by striking 


smartinez on DSK6TPTVN1PROD with BILLS
73 

•S 2261 PCS

1 the item relating to such section in the table of sec2 tions for such subpart). 

3 (B) Paragraph (10) of section 2031(c) is 

4 amended by inserting ‘‘(as in effect before its re5 peal)’’ immediately before the period at the end 

6 thereof. 

7 (97) PROPERTY WITHIN THE UNITED

8 STATES.—Subsection (c) of section 2104 is amended 

9 by striking ‘‘With respect to estates of decedents 

10 dying after December 31, 1969, deposits’’ and in11 serting ‘‘Deposits’’. 

12 (98) FICA TAXES.— 

13 (A) Subsection (a) of section 3101 is 

14 amended by striking ‘‘the following percent15 ages’’ and all that follows and inserting ‘‘6.2 

16 percent of the wages (as defined in section 

17 3121(a)) received by the individual with respect 

18 to employment (as defined in section 3121(b))’’. 

19 (B)(i) Subsection (a) of section 3111 is 

20 amended by striking ‘‘the following percent21 ages’’ and all that follows and inserting ‘‘6.2 

22 percent of the wages (as defined in section 

23 3121(a)) paid by the employer with respect to 

24 employment (as defined in section 3121(b)).’’ 


smartinez on DSK6TPTVN1PROD with BILLS
74 

•S 2261 PCS

1 (ii) Subsection (b) of section 3111 is 

2 amended by striking ‘‘the following percent3 ages’’ and all that follows and inserting ‘‘1.45 

4 percent of the wages (as defined in section 

5 3121(a)) paid by the employer with respect to 

6 employment (as defined in section 3121(b)).’’ 

7 (C)(i) Section 3121(b) is amended by 

8 striking paragraph (17). 

9 (ii) Section 210(a) of the Social Security 

10 Act is amended by striking paragraph (17). 

11 (99) RAILROAD RETIREMENT.— 

12 (A) Subsection (b) of section 3201 is 

13 amended to read as follows: 

14 ‘‘(b) TIER 2 TAX.—In addition to other taxes, there 

15 is hereby imposed on the income of each employee a tax 

16 equal to the percentage determined under section 3241 for 

17 any calendar year of the compensation received during 

18 such calendar year by such employee for services rendered 

19 by such employee.’’. 

20 (B) Subsection (b) of section 3211 is 

21 amended to read as follows: 

22 ‘‘(b) TIER 2 TAX.—In addition to other taxes, there 

23 is hereby imposed on the income of each employee rep24 resentative a tax equal to the percentage determined under 

25 section 3241 for any calendar year of the compensation 


smartinez on DSK6TPTVN1PROD with BILLS
75 

•S 2261 PCS

1 received during such calendar year by such employee rep2 resentative for services rendered by such employee rep3 resentative.’’. 

4 (C) Subsection (b) of section 3221 is 

5 amended to read as follows: 

6 ‘‘(b) TIER 2 TAX.—In addition to other taxes, there 

7 is hereby imposed on the income of each employer a tax 

8 equal to the percentage determined under section 3241 for 

9 any calendar year of the compensation paid during such 

10 calendar year by such employer for services rendered for 

11 such employer.’’. 

12 (D) Subsection (b) of section 3231 is 

13 amended— 

14 (i) by striking ‘‘compensation; except’’ 

15 and all that follows in the first sentence 

16 and inserting ‘‘compensation.’’, and 

17 (ii) by striking the second sentence. 

18 (100) CREDITS AGAINST FEDERAL UNEMPLOY19 MENT TAX.— 

20 (A) Paragraph (4) of section 3302(f) is 

21 amended— 

22 (i) by striking ‘‘subsection—’’ and all 

23 that follows through ‘‘(A) IN GENERAL.— 

24 The’’ and inserting ‘‘subsection, the’’ 

25 (ii) by striking subparagraph (B), 


smartinez on DSK6TPTVN1PROD with BILLS
76 

•S 2261 PCS

1 (iii) by redesignating clauses (i) and 

2 (ii) as subparagraphs (A) and (B), respec3 tively, and 

4 (iv) by moving the text of such sub5 paragraphs (as so redesignated) 2 ems to 

6 the left. 

7 (B) Paragraph (5) of section 3302(f) is 

8 amended by striking subparagraph (D) and by 

9 redesignating subparagraph (E) as subpara10 graph (D). 

11 (101) DOMESTIC SERVICE EMPLOYMENT

12 TAXES.—Section 3510(b) is amended by striking 

13 paragraph (4). 

14 (102) LUXURY PASSENGER AUTOMOBILES.— 

15 (A) Chapter 31 is amended by striking 

16 subchapter A (and by striking the item relating 

17 to such subchapter in the table of subchapters 

18 for such chapter). 

19 (B)(i) Section 4221 is amended— 

20 (I) in subsections (a) and (d)(1), by 

21 striking ‘‘subchapter A or’’ and inserting 

22 ‘‘subchapter’’, 

23 (II) in subsection (a), by striking ‘‘In 

24 the case of taxes imposed by subchapter A 


smartinez on DSK6TPTVN1PROD with BILLS
77 

•S 2261 PCS

1 of chapter 31, paragraphs (1), (3), (4), 

2 and (5) shall not apply.’’, and 

3 (III) in subsection (c), by striking 

4 ‘‘4001(c), 4001(d), or’’. 

5 (ii) Section 4222 is amended by striking 

6 ‘‘4001(c), 4001(d),’’. 

7 (iii) Section 4293 is amended by striking 

8 ‘‘subchapter A of chapter 31,’’. 

9 (103) TAX ON FUEL USED IN COMMERCIAL

10 TRANSPORTATION ON INLAND WATERWAYS.—Section 

11 4042(b)(2)(A) is amended to read as follows: 

12 ‘‘(I) The Inland Waterways Trust Fund fi13 nancing rate is 20 cents per gallon.’’. 

14 (104) TRANSPORTATION BY AIR.—Section 

15 4261(e) is amended— 

16 (A) in paragraph (1), by striking subpara17 graph (C), and 

18 (B) by striking paragraph (5). 

19 (105) TAXES ON FAILURE TO DISTRIBUTE IN20 COME.— 

21 (A) Subsection (g) of section 4942 is 

22 amended by striking ‘‘For all taxable years be23 ginning on or after January 1, 1975, subject’’ 

24 in paragraph (2)(A) and inserting ‘‘Subject’’. 


smartinez on DSK6TPTVN1PROD with BILLS
78 

•S 2261 PCS

1 (B) Section 4942(i)(2) is amended by 

2 striking ‘‘beginning after December 31, 1969, 

3 and’’. 

4 (106) TAXES ON TAXABLE EXPENDITURES.— 

5 Section 4945(f) is amended by striking ‘‘(excluding 

6 therefrom any preceding taxable year which begins 

7 before January 1, 1970)’’. 

8 (107) DEFINITIONS AND SPECIAL RULES.—Sec9 tion 4682(h) is amended— 

10 (A) by striking paragraph (1) and redesig11 nating paragraphs (2), (3), and (4) as para12 graphs (1), (2), and (3), respectively, and 

13 (B) in paragraph (1) (as so redesig14 nated)— 

15 (i) by striking the heading and insert16 ing ‘‘IN GENERAL’’, and 

17 (ii) by striking ‘‘after 1991’’ in sub18 paragraph (C). 

19 (108) RETURNS.—Subsection (a) of section 

20 6039D is amended by striking ‘‘beginning after De21 cember 31, 1984,’’. 

22 (109) INFORMATION RETURNS.—Subsection (c) 

23 of section 6060 is amended by striking ‘‘ ‘year’ ’’ and 

24 all that follows and inserting ‘‘year.’’. 


smartinez on DSK6TPTVN1PROD with BILLS
79 

•S 2261 PCS

1 (110) COLLECTION.—Section 6302 is amend2 ed— 

3 (A) in subsection (e)(2), by striking ‘‘im4 posed by’’ and all that follows through ‘‘with re5 spect to’’ and inserting ‘‘imposed by sections 

6 4251, 4261, or 4271 with respect to’’, 

7 (B) by striking the last sentence of sub8 section (f)(1), and 

9 (C) in subsection (h)— 

10 (i) by striking paragraph (2) and re11 designating paragraphs (3) and (4) as 

12 paragraphs (2) and (3), respectively, and 

13 (ii) by amending paragraph (3) (as so 

14 redesignated) to read as follows: 

15 ‘‘(3) COORDINATION WITH OTHER ELECTRONIC

16 FUND TRANSFER REQUIREMENTS.—Under regula17 tions, any tax required to be paid by electronic fund 

18 transfer under section 5061(e) or 5703(b) shall be 

19 paid in such a manner as to ensure that the require20 ments of the second sentence of paragraph (1)(A) of 

21 this subsection are satisfied.’’. 

22 (111) ABATEMENTS.—Section 6404(f) is 

23 amended by striking paragraph (3). 

24 (112) 2008 RECOVERY REBATE FOR INDIVID25 UALS.— 


smartinez on DSK6TPTVN1PROD with BILLS
80 

•S 2261 PCS

1 (A) Subchapter B of chapter 65 is amend2 ed by striking section 6428 (and by striking the 

3 item relating to such section in the table of sec4 tions for such subchapter). 

5 (B) Subparagraph (A) of section 

6 6211(b)(4) is amended by striking ‘‘6428,’’. 

7 (C) Paragraph (2) of section 6213(g), as 

8 amended by section 13(a)(2) and paragraphs 

9 (4) and (5)(C) of this subsection, is amended 

10 by striking subparagraph (Q), by redesignating 

11 subparagraph (O) as subparagraph (N), by in12 serting ‘‘and’’ at the end of subparagraph (M), 

13 and by striking the comma at the end of sub14 paragraph (N) (as so redesignated) and insert15 ing a period. 

16 (D) Paragraph (2) of section 1324(b) of 

17 title 31, United States Code, is amended by 

18 striking ‘‘6428, or 6431,’’ and inserting ‘‘or 

19 6431’’. 

20 (113) ADVANCE PAYMENT OF PORTION OF IN21 CREASED CHILD CREDIT FOR 2003.—Subchapter B 

22 of chapter 65 is amended by striking section 6429 

23 (and by striking the item relating to such section in 

24 the table of sections for such subchapter). 


smartinez on DSK6TPTVN1PROD with BILLS
81 

•S 2261 PCS

1 (114) FAILURE BY CORPORATION TO PAY ESTI2 MATED INCOME TAX.—Clause (i) of section 

3 6655(g)(4)(A) is amended by striking ‘‘(or the cor4 responding provisions of prior law)’’. 

5 (115) RETIREMENT.—Section 7447(i)(3)(B)(ii) 

6 is amended by striking ‘‘at 4 percent per annum to 

7 December 31, 1947, and at 3 percent per annum 

8 thereafter’’, and inserting ‘‘at 3 percent per 

9 annum’’. 

10 (116) ANNUITIES TO SURVIVING SPOUSES AND

11 DEPENDENT CHILDREN OF JUDGES.— 

12 (A) Paragraph (2) of section 7448(a) is 

13 amended— 

14 (i) by striking ‘‘or under section 1106 

15 of the Internal Revenue Code of 1939’’ 

16 and, 

17 (ii) by striking ‘‘or pursuant to sec18 tion 1106(d) of the Internal Revenue Code 

19 of 1939’’. 

20 (B) Subsection (g) of section 7448 is 

21 amended by striking ‘‘or other than pursuant to 

22 section 1106 of the Internal Revenue Code of 

23 1939’’. 

24 (C) Subsections (g), (j)(1), and (j)(2) of 

25 section 7448 are each amended by striking ‘‘at 


smartinez on DSK6TPTVN1PROD with BILLS
82 

•S 2261 PCS

1 4 percent per annum to December 31, 1947, 

2 and at 3 percent per annum thereafter’’ and in3 serting ‘‘at 3 percent per annum’’. 

4 (117) MERCHANT MARINE CAPITAL CONSTRUC5 TION FUNDS.—Paragraph (4) of section 7518(g) is 

6 amended by striking ‘‘any nonqualified withdrawal’’ 

7 and all that follows through ‘‘ ‘shall be determined’’ 

8 and inserting ‘‘any nonqualified withdrawal shall be 

9 determined’’. 

10 (118) VALUATION TABLES.— 

11 (A) Subsection (c) of section 7520 is 

12 amended by striking paragraph (2) and redesig13 nating paragraph (3) as paragraph (2). 

14 (B) Paragraph (2) of section 7520(c) (as 

15 redesignated by subparagraph (A)) is amend16 ed— 

17 (i) by striking ‘‘Not later than Decem18 ber 31, 1989, the’’ and inserting ‘‘The’’, 

19 and 

20 (ii) by striking ‘‘thereafter’’ in the last 

21 sentence thereof. 

22 (119) DEFINITION OF EMPLOYEE.—Section 

23 7701(a)(20) is amended by striking ‘‘chapter 21’’ 

24 and all that follows and inserting ‘‘chapter 21.’’. 

25 (b) EFFECTIVE DATE.— 


smartinez on DSK6TPTVN1PROD with BILLS
83 

•S 2261 PCS

1 (1) GENERAL RULE.—Except as otherwise pro2 vided in subsection (a) or paragraph (2) of this sub3 section, the amendments made by this section shall 

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

5 (2) SAVINGS PROVISION.—If— 

6 (A) any provision amended or repealed by 

7 the amendments made by this section applied 

8 to— 

9 (i) any transaction occurring before 

10 the date of the enactment of this Act, 

11 (ii) any property acquired before such 

12 date of enactment, or 

13 (iii) any item of income, loss, deduc14 tion, or credit taken into account before 

15 such date of enactment, and 

16 (B) the treatment of such transaction, 

17 property, or item under such provision would 

18 (without regard to the amendments or repeals 

19 made by this section) affect the liability for tax 

20 for periods ending after date of enactment, 

21 nothing in the amendments or repeals made by 

22 this section shall be construed to affect the 

23 treatment of such transaction, property, or item 

24 for purposes of determining liability for tax for 

25 periods ending after such date of enactment. 


smartinez on DSK6TPTVN1PROD with BILLS
Calendar No. 367 

113TH CONGRESS 

2D SESSION S. 2261 

[Report No. 113–155] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

poses. that are no longer applicable, and for other purmake technical corrections, to remove provisions 

APRIL 28, 2014 

Read twice and placed on the calendar 


smartinez on DSK6TPTVN1PROD with BILLS