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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2260 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 366
113th CONGRESS
  2d Session
                                S. 2260

                          [Report No. 113-154]

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2014

   Mr. Wyden, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.

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

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Expiring 
Provisions Improvement, Reform, and Efficiency Act of 2014'' or the 
``EXPIRE Act of 2014''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
Sec. 2. Sense of the Senate.
                  TITLE I--PROVISIONS EXPIRING IN 2013

                  Subtitle A--Individual Tax Extenders

Sec. 101. Extension of health care tax credit.
Sec. 102. Extension of deduction for certain expenses of elementary and 
                            secondary school teachers.
Sec. 103. Extension of exclusion from gross income of discharge of 
                            qualified principal residence indebtedness.
Sec. 104. Extension of parity and modification of exclusion from income 
                            for employer-provided mass transit and 
                            parking benefits.
Sec. 105. Extension of mortgage insurance premiums treated as qualified 
                            residence interest.
Sec. 106. Extension of deduction of State and local general sales 
                            taxes.
Sec. 107. Extension of special rule for contributions of capital gain 
                            real property made for conservation 
                            purposes.
Sec. 108. Extension of above-the-line deduction for qualified tuition 
                            and related expenses.
Sec. 109. Extension of tax-free distributions from individual 
                            retirement plans for charitable purposes.
                   Subtitle B--Business Tax Extenders

Sec. 111. Extension and modification of research credit.
Sec. 112. Extension and modification of temporary minimum low-income 
                            housing tax credit rate for non-federally 
                            subsidized buildings.
Sec. 113. Extension of military housing allowance exclusion for 
                            determining whether a tenant in certain 
                            counties is low-income.
Sec. 114. Extension of Indian employment tax credit.
Sec. 115. Extension and modification of new markets tax credit.
Sec. 116. Extension of railroad track maintenance credit.
Sec. 117. Extension of mine rescue team training credit.
Sec. 118. Extension and modification of employer wage credit for 
                            employees who are active duty members of 
                            the uniformed services.
Sec. 119. Extension and modification of work opportunity tax credit.
Sec. 120. Extension and modification of qualified zone academy bonds.
Sec. 121. Extension of classification of certain race horses as 3-year 
                            property.
Sec. 122. Extension of 15-year straight-line cost recovery for 
                            qualified leasehold improvements, qualified 
                            restaurant buildings and improvements, and 
                            qualified retail improvements.
Sec. 123. Extension of 7-year recovery period for motorsports 
                            entertainment complexes.
Sec. 124. Extension of accelerated depreciation for business property 
                            on an Indian reservation.
Sec. 125. Extension of bonus depreciation.
Sec. 126. Extension of enhanced charitable deduction for contributions 
                            of food inventory.
Sec. 127. Extension and modification of increased expensing limitations 
                            and treatment of certain real property as 
                            section 179 property.
Sec. 128. Extension of election to expense mine safety equipment.
Sec. 129. Extension of special expensing rules for certain film and 
                            television productions; special expensing 
                            for live theatrical productions.
Sec. 130. Extension of deduction allowable with respect to income 
                            attributable to domestic production 
                            activities in Puerto Rico.
Sec. 131. Extension of modification of tax treatment of certain 
                            payments to controlling exempt 
                            organizations.
Sec. 132. Extension of treatment of certain dividends of regulated 
                            investment companies.
Sec. 133. Extension of RIC qualified investment entity treatment under 
                            FIRPTA.
Sec. 134. Extension of subpart F exception for active financing income.
Sec. 135. Extension of look-thru treatment of payments between related 
                            controlled foreign corporations under 
                            foreign personal holding company rules.
Sec. 136. Extension of temporary exclusion of 100 percent of gain on 
                            certain small business stock.
Sec. 137. Extension of basis adjustment to stock of S corporations 
                            making charitable contributions of 
                            property.
Sec. 138. Extension of reduction in S-corporation recognition period 
                            for built-in gains tax.
Sec. 139. Extension of empowerment zone tax incentives.
Sec. 140. Extension of temporary increase in limit on cover over of rum 
                            excise taxes to Puerto Rico and the Virgin 
                            Islands.
Sec. 141. Extension of American Samoa economic development credit.
                    Subtitle C--Energy Tax Extenders

Sec. 151. Extension and modification of credit for nonbusiness energy 
                            property.
Sec. 152. Extension of credit for 2-wheeled plug-in electric vehicles.
Sec. 153. Extension of second generation biofuel producer credit.
Sec. 154. Extension of incentives for biodiesel and renewable diesel.
Sec. 155. Extension and modification of production credit for Indian 
                            coal facilities placed in service before 
                            2009.
Sec. 156. Extension of credits with respect to facilities producing 
                            energy from certain renewable resources.
Sec. 157. Extension of credit for energy-efficient new homes.
Sec. 158. Extension of special allowance for second generation biofuel 
                            plant property.
Sec. 159. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 160. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 161. Extension of excise tax credits relating to certain fuels.
                 TITLE II--PROVISIONS EXPIRING IN 2014

                    Subtitle A--Energy Tax Extenders

Sec. 201. Extension of credit for new qualified fuel cell motor 
                            vehicles.
Sec. 202. Extension of credit for alternative fuel vehicle refueling 
                            property.
Subtitle B--Extenders Relating to Multiemployer Defined Benefit Pension 
                                 Plans

Sec. 251. Extension of automatic extension of amortization periods.
Sec. 252. Extension of funding improvement and rehabilitation plan 
                            rules.
                     TITLE III--REVENUE PROVISIONS

Sec. 301. Penalty for failure to meet due diligence requirements for 
                            the child tax credit.
Sec. 302. 100 percent continuous levy on payment to medicare providers 
                            and suppliers.
Sec. 303. Exclusion from gross income of certain clean coal power 
                            grants to non-corporate taxpayers.
Sec. 304. Reform of rules relating to qualified tax collection 
                            contracts.
Sec. 305. Special compliance personnel program.
Sec. 306. Exclusion of dividends from controlled foreign corporations 
                            from the definition of personal holding 
                            company income for purposes of the personal 
                            holding company rules.
Sec. 307. Inflation adjustment for certain civil penalties under the 
                            Internal Revenue Code of 1986.
                      TITLE IV--BUDGETARY EFFECTS

Sec. 401. Budgetary effects.

SEC. 2. SENSE OF THE SENATE.

    It is the sense of the Senate that--
            (1) a process of comprehensive tax reform should commence 
        in the 114th Congress and should conclude before January 1, 
        2016;
            (2) Congress should endeavor, as part of such a tax reform 
        process, to eliminate temporary provisions from the Internal 
        Revenue Code of 1986 by making permanent those provisions that 
        merit permanency and allowing others to expire;
            (3) a major focus of such tax reform process should be 
        fostering economic growth and lowering tax rates by broadening 
        the tax base; and
            (4) the chairman and ranking member of the Committee on 
        Finance of the Senate should consult with the chairman and 
        ranking member of the Committee on the Budget of the Senate to 
        ensure that the appropriate baseline is used in determining the 
        economic effects of, and rate adjustments under, tax reform.

                  TITLE I--PROVISIONS EXPIRING IN 2013

                  Subtitle A--Individual Tax Extenders

SEC. 101. EXTENSION OF HEALTH CARE TAX CREDIT.

    (a) In General.--Subparagraph (B) of section 35(b)(1) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after December 31, 2013.

SEC. 102. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
              SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2013'' and inserting ``2013, 2014, or 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 103. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF 
              QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

    (a) In General.--Subparagraph (E) of section 108(a)(1) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to indebtedness discharged after December 31, 2013.

SEC. 104. EXTENSION OF PARITY AND MODIFICATION OF EXCLUSION FROM INCOME 
              FOR EMPLOYER-PROVIDED MASS TRANSIT AND PARKING BENEFITS.

    (a) Extension.--
            (1) In general.--Paragraph (2) of section 132(f) is amended 
        by striking ``January 1, 2014'' and inserting ``January 1, 
        2016''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to months after December 31, 2013.
    (b) Use of a Bike Share Program as a Qualified Transportation 
Fringe.--
            (1) In general.--Section 132(f)(5)(F) is amended--
                    (A) in clause (i), by striking ``repair, and 
                storage, if such bicycle'' and inserting ``repair, and 
                storage (or use of a bike sharing program, in the case 
                of taxable years beginning before January 1, 2016), if 
                such bicycle or bike sharing program'', and
                    (B) in clause (iii)(I), by inserting ``or bike 
                sharing program'' after ``bicycle''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2013.

SEC. 105. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS QUALIFIED 
              RESIDENCE INTEREST.

    (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) is 
amended by striking ``December 31, 2013'' and inserting ``December 31, 
2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or accrued after December 31, 2013.

SEC. 106. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL SALES 
              TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 107. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAPITAL GAIN 
              REAL PROPERTY MADE FOR CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2013'' and inserting ``December 31, 2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2013.

SEC. 108. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION 
              AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 109. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
              RETIREMENT PLANS FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended 
by striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2013.

                   Subtitle B--Business Tax Extenders

SEC. 111. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) Extension.--
            (1) In general.--Paragraph (1) of section 41(h) is amended 
        by striking ``paid or incurred'' and all that follows and 
        inserting ``paid or incurred after December 31, 2015.''.
            (2) Conforming amendment.--Subparagraph (D) of section 
        45C(b)(1) is amended to read as follows:
                    ``(D) Special rule.--If section 41 is not in effect 
                for any period, such section shall be deemed to remain 
                in effect for such period for purposes of this 
                paragraph.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after December 31, 
        2013.
    (b) Treatment of Research Credit for Certain Startup Companies.--
            (1) In general.--Section 41 is amended by adding at the end 
        the following new subsection:
    ``(i) Treatment of Credit for Qualified Small Businesses.--
            ``(1) In general.--At the election of a qualified small 
        business for any taxable year, section 3111(f) shall apply to 
        the payroll tax credit portion of the credit otherwise 
        determined under subsection (a) for the taxable year and such 
        portion shall not be treated (other than for purposes of 
        section 280C) as a credit determined under subsection (a).
            ``(2) Payroll tax credit portion.--For purposes of this 
        subsection, the payroll tax credit portion of the credit 
        determined under subsection (a) with respect to any qualified 
        small business for any taxable year is the least of--
                    ``(A) the amount specified in the election made 
                under this subsection,
                    ``(B) the credit determined under subsection (a) 
                for the taxable year (determined before the application 
                of this subsection), or
                    ``(C) in the case of a qualified small business 
                other than a partnership or S corporation, the amount 
                of the business credit carryforward under section 39 
                carried from the taxable year (determined before the 
                application of this subsection to the taxable year).
            ``(3) Qualified small business.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified small 
                business' means, with respect to any taxable year--
                            ``(i) a corporation or partnership, if--
                                    ``(I) the gross receipts (as 
                                determined under the rules of section 
                                448(c)(3), without regard to 
                                subparagraph (A) thereof) of such 
                                entity for the taxable year is less 
                                than $5,000,000, and
                                    ``(II) such entity did not have 
                                gross receipts (as so determined) for 
                                any taxable year preceding the 5-
                                taxable-year period ending with such 
                                taxable year, and
                            ``(ii) any person (other than a corporation 
                        or partnership) who meets the requirements of 
                        subclauses (I) and (II) of clause (i), 
                        determined--
                                    ``(I) by substituting `person' for 
                                `entity' each place it appears, and
                                    ``(II) by only taking into account 
                                the aggregate gross receipts received 
                                by such person in carrying on all 
                                trades or businesses of such person.
                    ``(B) Limitation.--Such term shall not include an 
                organization which is exempt from taxation under 
                section 501.
            ``(4) Election.--
                    ``(A) In general.--Any election under this 
                subsection for any taxable year--
                            ``(i) shall specify the amount of the 
                        credit to which such election applies,
                            ``(ii) shall be made on or before the due 
                        date (including extensions) of--
                                    ``(I) in the case of a qualified 
                                small business which is a partnership, 
                                the return required to be filed under 
                                section 6031,
                                    ``(II) in the case of a qualified 
                                small business which is an S 
                                corporation, the return required to be 
                                filed under section 6037, and
                                    ``(III) in the case of any other 
                                qualified small business, the return of 
                                tax for the taxable year, and
                            ``(iii) may be revoked only with the 
                        consent of the Secretary.
                    ``(B) Limitations.--
                            ``(i) Amount.--The amount specified in any 
                        election made under this subsection shall not 
                        exceed $250,000.
                            ``(ii) Number of taxable years.--A person 
                        may not make an election under this subsection 
                        if such person (or any other person treated as 
                        a single taxpayer with such person under 
                        paragraph (5)(A)) has made an election under 
                        this subsection for 5 or more preceding taxable 
                        years.
                    ``(C) Special rule for partnerships and s 
                corporations.--In the case of a qualified small 
                business which is a partnership or S corporation, the 
                election made under this subsection shall be made at 
                the entity level.
            ``(5) Aggregation rules.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), all persons or entities treated as a 
                single taxpayer under subsection (f)(1) shall be 
                treated as a single taxpayer for purposes of this 
                subsection.
                    ``(B) Special rules.--For purposes of this 
                subsection and section 3111(f)--
                            ``(i) each of the persons treated as a 
                        single taxpayer under subparagraph (A) may 
                        separately make the election under paragraph 
                        (1) for any taxable year, and
                            ``(ii) the $250,000 amount under paragraph 
                        (4)(B)(i) shall be allocated among all persons 
                        treated as a single taxpayer under subparagraph 
                        (A) in the same manner as under subparagraph 
                        (A)(ii) or (B)(ii) of subsection (f)(1), 
                        whichever is applicable.
            ``(6) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection, including--
                    ``(A) regulations to prevent the avoidance of the 
                purposes of the limitations and aggregation rules under 
                this subsection through the use of successor companies 
                or other means,
                    ``(B) regulations to minimize compliance and 
                record-keeping burdens under this subsection, and
                    ``(C) regulations for recapturing the benefit of 
                credits determined under section 3111(f) in cases where 
                there is a subsequent adjustment to the payroll tax 
                credit portion of the credit determined under 
                subsection (a), including requiring amended income tax 
                returns in the cases where there is such an 
                adjustment.''.
            (2) Credit allowed against fica taxes.--Section 3111 is 
        amended by adding at the end the following new subsection:
    ``(f) Credit for Research Expenditures of Qualified Small 
Businesses.--
            ``(1) In general.--In the case of a taxpayer who has made 
        an election under section 41(i) for a taxable year, there shall 
        be allowed as a credit against the tax imposed by subsection 
        (a) for the first calendar quarter which begins after the date 
        on which the taxpayer files the return specified in section 
        41(i)(4)(A)(ii) an amount equal to the payroll tax credit 
        portion determined under section 41(i)(2).
            ``(2) Limitation.--The credit allowed by paragraph (1) 
        shall not exceed the tax imposed by subsection (a) for any 
        calendar quarter on the wages paid with respect to the 
        employment of all individuals in the employ of the employer.
            ``(3) Carryover of unused credit.--If the amount of the 
        credit under paragraph (1) exceeds the limitation of paragraph 
        (2) for any calendar quarter, such excess shall be carried to 
        the succeeding calendar quarter and allowed as a credit under 
        paragraph (1) for such quarter.
            ``(4) Deduction allowed for credited amounts.--The credit 
        allowed under paragraph (1) shall not be taken into account for 
        purposes of determining the amount of any deduction allowed 
        under chapter 1 for taxes imposed under subsection (a).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to credits determined for taxable years beginning 
        after December 31, 2013.
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subparagraph (B) of section 38(c)(4) is 
        amended--
                    (A) by redesignating clauses (ii), (iii), (iv), 
                (v), (vi), (vii), (viii), and (ix) as clauses (iii), 
                (iv), (v), (vi), (vii), (viii), (ix), and (x), 
                respectively, and
                    (B) by inserting after clause (i) the following new 
                clause:
                            ``(ii) the credit determined under section 
                        41 with respect to an eligible small business 
                        (as defined in paragraph (5)(C), after 
                        application of rules similar to the rules of 
                        paragraph (5)(D)),''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to credits determined for taxable years beginning 
        after December 31, 2013, and to carrybacks of such credits.

SEC. 112. EXTENSION AND MODIFICATION OF TEMPORARY MINIMUM LOW-INCOME 
              HOUSING TAX CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED 
              BUILDINGS.

    (a) In General.--Subparagraph (A) of section 42(b)(2) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Temporary Minimum Credit Rate for Non-federally Subsidized 
Existing Buildings.--Subsection (b) of section 42 is amended by 
redesignating paragraph (3) as paragraph (4) and by inserting after 
paragraph (2) the following new paragraph:
            ``(3) Temporary minimum credit rate for non-federally 
        subsidized existing buildings.--In the case of any existing 
        building--
                    ``(A) which is placed in service by the taxpayer 
                after the date of the enactment of the EXPIRE Act of 
                2014 with respect to housing credit dollar amount 
                allocations made before January 1, 2016, and
                    ``(B) which is not federally subsidized for the 
                taxable year,
        the applicable percentage shall not be less than 4 percent.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2014.

SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE EXCLUSION FOR 
              DETERMINING WHETHER A TENANT IN CERTAIN COUNTIES IS LOW-
              INCOME.

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 is amended by striking ``January 1, 2014'' 
each place it appears and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 3005 of the Housing 
Assistance Tax Act of 2008.

SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 115. EXTENSION AND MODIFICATION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) is amended 
by striking ``and 2013'' and inserting ``2013, 2014, and 2015''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 
45D(f) is amended by striking ``2018'' and inserting ``2020''.
    (c) Allocations Designated for Areas Impacted by Decline in 
Manufacturing.--Paragraph (3) of section 45D(f), as amended by 
subsection (b), is amended--
            (1) by striking ``If the new markets tax credit 
        limitation'' and inserting the following:
                    ``(A) In general.--If the new markets tax credit 
                limitation'',
            (2) by striking ``No'' in the last sentence and inserting 
        ``Except as provided in subparagraph (B), no'', and
            (3) by adding at the end, the following new subparagraph:
                    ``(B) Certain amounts available for areas impacted 
                by decline in manufacturing.--Any amount carried to a 
                calendar year after the year described in the second 
                sentence of subparagraph (A) shall be available only 
                for allocation to qualified community development 
                entities a significant mission of which is providing 
                investments and services to persons in the trade or 
                business of manufacturing products in communities which 
                have suffered major manufacturing job losses or a major 
                manufacturing job loss event, as designated by the 
                Secretary.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2013.

SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred in taxable years beginning after 
December 31, 2013.

SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 118. EXTENSION AND MODIFICATION OF EMPLOYER WAGE CREDIT FOR 
              EMPLOYEES WHO ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED 
              SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Applicability to All Employers.--
            (1) In general.--Subsection (a) of section 45P is amended 
        by striking ``, in the case of an eligible small business 
        employer''.
            (2) Conforming amendment.--Paragraph (3) of section 45P(b) 
        is amended to read as follows:
            ``(3) Controlled groups.--All persons treated as a single 
        employer under subsection (b), (c), (m), or (o) of section 414 
        shall be treated as a single employer.''.
    (c) Expansion to 100 Percent of Eligible Differential Wage 
Payments.--Subsection (a) of section 45P is amended by striking ``20 
percent of the sum'' and inserting ``the sum''.
    (d) Effective Date.--The amendments made by this section shall 
apply to payments made after December 31, 2013.

SEC. 119. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Paragraph (4) of section 51(c) is amended by 
striking ``for the employer'' and all that follows and inserting ``for 
the employer after December 31, 2015''.
    (b) Credit for Hiring Long-term Unemployment Recipients.--
            (1) In general.--Paragraph (1) of section 51(d) is amended 
        by striking ``or'' at the end of subparagraph (H), by striking 
        the period at the end of subparagraph (I) and inserting ``, 
        or'', and by adding at the end the following new subparagraph:
                    ``(J) a qualified long-term unemployment 
                recipient.''.
            (2) Qualified long-term unemployment recipient.--Subsection 
        (d) of section 51 is amended by adding at the end the following 
        new paragraph:
            ``(15) Qualified long-term unemployment recipient.--The 
        term `qualified long-term unemployment recipient' means any 
        individual who is certified by the designated local agency as 
        being in a period of unemployment which--
                    ``(A) is not less than 27 consecutive weeks, and
                    ``(B) includes a period in which the individual was 
                receiving unemployment compensation under State or 
                Federal law.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2013.

SEC. 120. EXTENSION AND MODIFICATION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Extension.--Paragraph (1) of section 54E(c) is amended by 
striking ``and 2013'' and inserting ``2013, 2014, and 2015''.
    (b) Reduction of Private Business Contribution Requirement.--
Subsection (b) of section 54E is amended by striking ``10 percent'' and 
inserting ``5 percent''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to obligations issued after December 31, 2013.
    (d) Technical Correction and Conforming Amendment.--
            (1) In general.--Clause (iii) of section 6431(f)(3)(A) is 
        amended--
                    (A) by striking ``2011'' and inserting ``years 
                after 2010'', and
                    (B) by striking ``of such allocation'' and 
                inserting ``of any such allocation''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in section 310 of the American 
        Taxpayer Relief Act of 2012.

SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES AS 3-YEAR 
              PROPERTY.

    (a) In General.--Clause (i) of section 168(e)(3)(A) is amended--
            (1) by striking ``January 1, 2014'' in subclause (I) and 
        inserting ``January 1, 2016'', and
            (2) by striking ``December 31, 2013'' in subclause (II) and 
        inserting ``December 31, 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 
              QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
              BUILDINGS AND IMPROVEMENTS, AND QUALIFIED RETAIL 
              IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) are each amended by striking ``January 1, 2014'' and 
inserting ``January 1, 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
              ENTERTAINMENT COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 124. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY 
              ON AN INDIAN RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 125. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2015'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2017'', and
            (2) by striking ``January 1, 2014'' each place it appears 
        and inserting ``January 1, 2016''.
    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) is amended by striking ``January 1, 2014 (January 
1, 2015'' and inserting ``January 1, 2016 (January 1, 2017''.
    (c) Extension of Election To Accelerate the AMT Credit in Lieu of 
Bonus Depreciation.--
            (1) In general.--Subclause (II) of section 
        168(k)(4)(D)(iii) is amended by striking ``January 1, 2014'' 
        and inserting ``January 1, 2016''.
            (2) Round 4 extension property.--Paragraph (4) of section 
        168(k) is amended by adding at the end the following new 
        subparagraph:
                    ``(K) Special rules for round 4 extension 
                property.--
                            ``(i) In general.--In the case of round 4 
                        extension property, in applying this paragraph 
                        to any taxpayer--
                                    ``(I) the limitation described in 
                                subparagraph (B)(i) and the business 
                                credit increase amount under 
                                subparagraph (E)(iii) thereof shall not 
                                apply, and
                                    ``(II) the bonus depreciation 
                                amount, maximum amount, and maximum 
                                increase amount shall be computed 
                                separately from amounts computed with 
                                respect to eligible qualified property 
                                which is not round 4 extension 
                                property.
                            ``(ii) Election.--
                                    ``(I) A taxpayer who has an 
                                election in effect under this paragraph 
                                for round 3 extension property shall be 
                                treated as having an election in effect 
                                for round 4 extension property unless 
                                the taxpayer elects to not have this 
                                paragraph apply to round 4 extension 
                                property.
                                    ``(II) A taxpayer who does not have 
                                an election in effect under this 
                                paragraph for round 3 extension 
                                property may elect to have this 
                                paragraph apply to round 4 extension 
                                property.
                            ``(iii) Round 4 extension property.--For 
                        purposes of this subparagraph, the term `round 
                        4 extension property' means property which is 
                        eligible qualified property solely by reason of 
                        the extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 215(a) of the EXPIRE 
                        Act of 2014 (and the application of such 
                        extension to this paragraph pursuant to the 
                        amendment made by section 215(c) of such 
                        Act).''.
    (d) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 is 
        amended by striking ``January 1, 2014'' and inserting ``January 
        1, 2016''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2014'' and inserting 
        ``pre-january 1, 2016''.
            (3) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2016''.
            (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2016''.
            (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (e) Technical Amendment Relating to Section 331 of the American 
Taxpayer Relief Act of 2012.--
            (1) In general.--Clause (iii) of section 168(k)(4)(J) is 
        amended by striking ``any taxable year'' and inserting ``its 
        first taxable year''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the provision of the 
        American Taxpayer Relief Act of 2012 to which it relates.
    (f) Effective Date.--Except as provided in subsection (e)(2), the 
amendments made by this section shall apply to property placed in 
service after December 31, 2013, in taxable years ending after such 
date.

SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS 
              OF FOOD INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2013.

SEC. 127. EXTENSION AND MODIFICATION OF INCREASED EXPENSING LIMITATIONS 
              AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 
              PROPERTY.

    (a) In General.--
            (1) Dollar limitation.--Section 179(b)(1) is amended--
                    (A) by striking ``beginning in 2010, 2011, 2012, or 
                2013'' in subparagraph (B) and inserting ``beginning 
                after 2009 and before 2016'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2015''.
            (2) Reduction in limitation.--Section 179(b)(2) is 
        amended--
                    (A) by striking ``beginning in 2010, 2011, 2012, or 
                2013'' in subparagraph (B) and inserting ``beginning 
                after 2009 and before 2016'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2015''.
    (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by 
striking ``2014'' and inserting ``2016''.
    (c) Election.--Section 179(c)(2) is amended by striking ``2014'' 
and inserting ``2016''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) is amended by striking 
        ``beginning in 2010, 2011, 2012, or 2013'' and inserting 
        ``beginning after 2009 and before 2016''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) is amended by 
                striking ``2013'' each place it appears and inserting 
                ``2015''.
                    (B) Conforming amendment.--The heading of 
                subparagraph (C) of section 179(f)(4) is amended by 
                striking ``2011 and 2012'' and inserting ``2011, 2012, 
                2013, and 2014''.
    (e) Adjustment for Inflation.--Subsection (b) of section 179 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(6) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2013, the $500,000 amount in paragraph 
                (1)(B) and the $2,000,000 amount in paragraph (2)(B) 
                shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting `calendar year 2012' for 
                        `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--
                            ``(i) Dollar limitation.--If the amount in 
                        paragraph (1)(B) as increased under 
                        subparagraph (A) is not a multiple of $1,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $1,000.
                            ``(ii) Phaseout amount.--If the amount in 
                        paragraph (2)(B) as increased under 
                        subparagraph (A) is not a multiple of $10,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $10,000.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
              TELEVISION PRODUCTIONS; SPECIAL EXPENSING FOR LIVE 
              THEATRICAL PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Application to Live Productions.--
            (1) In general.--Paragraph (1) of section 181(a) is amended 
        by inserting ``, and any qualified live theatrical 
        production,'' after ``any qualified film or television 
        production''.
            (2) Conforming amendments.--Section 181 is amended--
                    (A) by inserting ``or any qualified live theatrical 
                production'' after ``qualified film or television 
                production'' each place it appears in subsections 
                (a)(2), (b), and (c)(1),
                    (B) by inserting ``or qualified live theatrical 
                productions'' after ``qualified film or television 
                productions'' in subsection (f), and
                    (C) by inserting ``and live theatrical'' after 
                ``film and television'' in the heading.
            (3) Clerical amendment.--The item relating to section 181 
        in the table of sections for part VI of subchapter B of chapter 
        1 is amended to read as follows:

``Sec. 181. Treatment of certain qualified film and television and live 
                            theatrical productions.''.
    (c) Qualified Live Theatrical Production.--Section 181 is amended--
            (1) by redesignating subsections (e) and (f), as amended by 
        subsections (a) and (b), as subsections (f) and (g), 
        respectively, and
            (2) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Qualified Live Theatrical Production.--For purposes of this 
section--
            ``(1) In general.--The term `qualified live theatrical 
        production' means any production described in paragraph (2) if 
        75 percent of the total compensation of the production is 
        qualified compensation (as defined in subsection (d)(3)).
            ``(2) Production.--
                    ``(A) In general.--A production is described in 
                this paragraph if such production is a live staged 
                production of a play (with or without music) which is 
                derived from a written book or script and is produced 
                or presented by a taxable entity in any venue which has 
                an audience capacity of not more than 3,000 or a series 
                of venues the majority of which have an audience 
                capacity of not more than 3,000.
                    ``(B) Touring companies, etc.--In the case of 
                multiple live staged productions--
                            ``(i) for which the election under this 
                        section would be allowable to the same 
                        taxpayer, and
                            ``(ii) which are--
                                    ``(I) separate phases of a 
                                production, or
                                    ``(II) separate simultaneous 
                                stagings of the same production in 
                                different geographical locations (not 
                                including multiple performance 
                                locations of any one touring 
                                production),
                each such live staged production shall be treated as a 
                separate production.
                    ``(C) Phase.--For purposes of subparagraph (B), the 
                term `phase' with respect to any qualified live 
                theatrical production refers to each of the following, 
                but only if each of the following is treated by the 
                taxpayer as a separate activity for all purposes of 
                this title:
                            ``(i) The initial staging of a live 
                        theatrical production.
                            ``(ii) Subsequent additional stagings or 
                        touring of such production which are produced 
                        by the same producer as the initial staging.
                    ``(D) Exception.--A production is not described in 
                this paragraph if such production includes or consists 
                of any performance of conduct described in section 
                2257(h)(1) of title 18, United States Code.''.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to productions commencing after December 31, 2013.
            (2) Commencement.--For purposes of paragraph (1), the date 
        on which a qualified live theatrical production commences is 
        the date of the first public performance of such production for 
        a paying audience.

SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
              ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES IN PUERTO 
              RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
            (1) by striking ``first 8 taxable years'' and inserting 
        ``first 10 taxable years'', and
            (2) by striking ``January 1, 2014'' and inserting ``January 
        1, 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 131. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CERTAIN 
              PAYMENTS TO CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2013.

SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
              INVESTMENT COMPANIES.

    (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of section 
871(k) are each amended by striking ``December 31, 2013'' and inserting 
``December 31, 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
              FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        take effect on January 1, 2014. Notwithstanding the preceding 
        sentence, such amendment shall not apply with respect to the 
        withholding requirement under section 1445 of the Internal 
        Revenue Code of 1986 for any payment made before the date of 
        the enactment of this Act.
            (2) Amounts withheld on or before date of enactment.--In 
        the case of a regulated investment company--
                    (A) which makes a distribution after December 31, 
                2013, and before the date of the enactment of this Act, 
                and
                    (B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.

SEC. 134. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.

    (a) Exempt Insurance Income.--Paragraph (10) of section 953(e) is 
amended--
            (1) by striking ``January 1, 2014'' and inserting ``January 
        1, 2016'', and
            (2) by striking ``December 31, 2013'' and inserting 
        ``December 31, 2015''.
    (b) Special Rule for Income Derived in the Active Conduct of 
Banking, Financing, or Similar Businesses.--Paragraph (9) of section 
954(h) is amended by striking ``January 1, 2014'' and inserting 
``January 1, 2016''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2013, and to taxable years of United States shareholders with or 
within which any such taxable year of such foreign corporation ends.

SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
              CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL 
              HOLDING COMPANY RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2013, and to taxable years of United States shareholders with or within 
which such taxable years of foreign corporations end.

SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
              CERTAIN SMALL BUSINESS STOCK.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
            (1) by striking ``January 1, 2014'' and inserting ``January 
        1, 2016'', and
            (2) by striking ``and 2013'' in the heading and inserting 
        ``2013, 2014, and 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2013.

SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS 
              MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2013.

SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD 
              FOR BUILT-IN GAINS TAX.

    (a) In General.--Subparagraph (C) of section 1374(d)(7) is 
amended--
            (1) by striking ``2012 or 2013'' and inserting ``2012, 
        2013, 2014, or 2015'', and
            (2) by striking ``2012 and 2013'' in the heading and 
        inserting ``2012, 2013, 2014, and 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of an empowerment zone the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A)(i) of 
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.
    (c) Technical Amendments Relating to Section 753 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010; 
Extension of Nonrecognition of Gain on Rollover of Empowerment Zone 
Investments.--Subparagraph (A) of section 1397B(b)(1) is amended by 
striking ``and'' at the end of clause (ii), by striking the period at 
the end of clause (iii) and inserting ``, and'', and by adding at the 
end the following new clause:
                            ``(iv) `January 1, 2016' were substituted 
                        for `January 1, 2010' each place it appears.''.
    (d) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to periods after December 31, 2013.
            (2) Technical amendments.--The amendments made by 
        subsection (c) shall take effect as if included in section 753 
        of the Tax Relief, Unemployment Insurance Reauthorization, and 
        Job Creation Act of 2010.

SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
              EXCISE TAXES TO PUERTO RICO AND THE VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2013.

SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 is amended--
            (1) by striking ``January 1, 2014'' each place it appears 
        and inserting ``January 1, 2016'',
            (2) by striking ``first 8 taxable years'' in paragraph (1) 
        and inserting ``first 10 taxable years'', and
            (3) by striking ``first 2 taxable years'' in paragraph (2) 
        and inserting ``first 4 taxable years''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

                    Subtitle C--Energy Tax Extenders

SEC. 151. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Updated Energy Star Requirements for Windows, Doors, Skylights, 
and Roofing.--
            (1) In general.--Paragraph (1) of section 25C(c) is amended 
        by striking ``which meets'' and all that follows through 
        ``requirements)''.
            (2) Energy efficient building envelope component.--
        Subsection (c) of section 25C is amended by redesignating 
        paragraphs (2) and (3) as paragraphs (3) and (4), respectively, 
        and by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Energy efficient building envelope component.--The 
        term `energy efficient building envelope component' means a 
        building envelope component which meets--
                    ``(A) applicable Energy Star program requirements, 
                in the case of a roof or roof products,
                    ``(B) version 6.0 Energy Star program requirements, 
                in the case of an exterior window, a skylight, or an 
                exterior door, and
                    ``(C) the prescriptive criteria for such component 
                established by the 2009 International Energy 
                Conservation Code, as such Code (including supplements) 
                is in effect on the date of the enactment of the 
                American Recovery and Reinvestment Tax Act of 2009, in 
                the case of any other component.''.
            (3) Conforming amendment.--Subparagraph (D) of section 
        25C(c)(3), as so redesignated, is amended to read as follows:
                    ``(D) any roof or roof products which are installed 
                on a dwelling unit and are specifically and primarily 
                designed to reduce the heat gain of such dwelling 
                unit.''.
    (c) Separate Standards for Tankless and Storage Water Heaters.--
            (1) In general.--Subparagraph (D) of section 25C(d)(3) is 
        amended by striking ``which has either'' and all that follows 
        and inserting ``which has either--
                            ``(i) in the case of a storage water 
                        heater, an energy factor of at least 0.80 or a 
                        thermal efficiency of at least 90 percent, and
                            ``(ii) in the case of any other water 
                        heater, an energy factor of at least 0.90 or a 
                        thermal efficiency of at least 90 percent, 
                        and''.
            (2) Storage water heaters.--Paragraph (3) of section 25C(d) 
        is amended by adding at the end the following flush sentence:
        ``For purposes of subparagraph (D)(i), the term `storage water 
        heater' means a water heater that has a water storage capacity 
        of more than 20 gallons but not more than 55 gallons.''.
    (d) Modification of Testing Standards for Biomass Stoves.--
Subparagraph (E) of section 25C(d)(3) is amended by inserting before 
the period the following: ``, when tested using the higher heating 
value of the fuel and in accordance with the Canadian Standards 
Administration B415.1 test protocol''.
    (e) Separate Standard for Oil Hot Water Boilers.--Paragraph (4) of 
section 25C(d) is amended by striking ``95'' and inserting ``95 (90 in 
the case of an oil hot water boiler)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

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

    (a) In General.--Subparagraph (E) of section 30D(g)(3) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2014 
(January 1, 2016, in the case of a vehicle that has 2 wheels).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after December 31, 2013.

SEC. 153. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to qualified second generation biofuel production after December 
31, 2013.

SEC. 154. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fuel sold or used after December 31, 2013.

SEC. 155. EXTENSION AND MODIFICATION OF PRODUCTION CREDIT FOR INDIAN 
              COAL FACILITIES PLACED IN SERVICE BEFORE 2009.

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended 
by striking ``8-year period'' each place it appears and inserting ``10-
year period''.
    (b) Application to New Leases or Subleases.--Paragraph (10) of 
section 45(d) is amended by inserting before the period the following: 
``, and any new lease or sublease of such a facility''.
    (c) Effective Date.--The amendments made by this section shall 
apply to coal produced after December 31, 2013.

SEC. 156. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING 
              ENERGY FROM CERTAIN RENEWABLE RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each 
amended by striking ``January 1, 2014'' each place it appears and 
inserting ``January 1, 2016'':
            (1) Paragraph (1).
            (2) Paragraph (2)(A).
            (3) Paragraph (3)(A).
            (4) Paragraph (4)(B).
            (5) Paragraph (6).
            (6) Paragraph (7).
            (7) Paragraph (9).
            (8) Paragraph (11)(B).
    (b) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Clause (ii) of section 48(a)(5)(C) is amended by striking 
``January 1, 2014'' and inserting ``January 1, 2016''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect on January 1, 2014.

SEC. 157. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2013.

SEC. 158. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERATION BIOFUEL 
              PLANT PROPERTY.

    (a) In General.--Subparagraph (D) of section 168(l)(2) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 159. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Allocations to Indian Tribal Governments.--Paragraph (4) of 
section 179D(d) is amended by striking ``or local'' and inserting 
``local, or Indian tribal''.
    (c) Allocations to Certain Nonprofit Organizations.--
            (1) In general.--Paragraph (4) of section 179D(d), as 
        amended by subsection (b), is amended by inserting ``, or by an 
        organization that is described in section 501(c)(3) and exempt 
        from tax under section 501(a)'' after ``political subdivision 
        thereof''.
            (2) Clerical amendment.--The heading of paragraph (4) of 
        section 179D(d) is amended by inserting ``and property held by 
        certain non-profits'' after ``public property''.
    (d) Updated ASHRAE Standards for 2015.--
            (1) In general.--Paragraph (1) of section 179D(c) is 
        amended by striking ``Standard 90.1-2001'' each place it 
        appears and inserting ``Standard 90.1-2007''.
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 179D(c) is amended to 
                read as follows:
            ``(2) Standard 90.1-2007.--The term `Standard 90.1-2007' 
        means Standard 90.1-2007 of the American Society of Heating, 
        Refrigerating, and Air Conditioning Engineers and the 
        Illuminating Engineering Society of North America (as in effect 
        on the day before the date of the adoption of Standard 90.1-
        2010 of such Societies).''.
                    (B) Subsection (f) of section 179D is amended by 
                striking ``Standard 90.1-2001'' each place it appears 
                in paragraphs (1) and (2)(C)(i) and inserting 
                ``Standard 90.1-2007''.
                    (C) Paragraph (1) of section 179D(f) is amended--
                            (i) by striking ``Table 9.3.1.1'' and 
                        inserting ``Table 9.5.1'', and
                            (ii) by striking ``Table 9.3.1.2'' and 
                        inserting ``Table 9.6.1''.
            (3) Effective date.--The amendments made by this paragraph 
        shall apply to property placed in service after December 31, 
        2014.
    (e) Effective Date.--Except as provided in subsection (d)(3), the 
amendments made by this section shall apply to property placed in 
service after December 31, 2013.

SEC. 160. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
              IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
              QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2013.

SEC. 161. EXTENSION OF EXCISE TAX CREDITS RELATING TO CERTAIN FUELS.

    (a) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2013'' and inserting ``December 31, 2015''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2013'' and inserting ``December 31, 
        2015''.
    (b) Extension of Alternative Fuels Excise Tax Credits.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are 
        each amended by striking ``December 31, 2013'' and inserting 
        ``December 31, 2015''.
            (2) Outlay payments for alternative fuels.--Subparagraph 
        (C) of section 6427(e)(6) is amended by striking ``December 31, 
        2013'' and inserting ``December 31, 2015''.
    (c) Extension of Alternative Fuels Excise Tax Credits Relating to 
Liquefied Hydrogen.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3), as 
        amended by subsection (b), are each amended by striking 
        ``(September 30, 2014 in the case of any sale or use involving 
        liquefied hydrogen)''.
            (2) Outlay payments for alternative fuels.--Paragraph (6) 
        of section 6427(e) is amended--
                    (A) by striking ``except as provided in 
                subparagraph (D), any'' in subparagraph (C), as amended 
                by this Act, and inserting ``any'',
                    (B) by striking the comma at the end of 
                subparagraph (C) and inserting ``, and'', and
                    (C) by striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel sold or 
        used after December 31, 2013.
            (2) Liquefied hydrogen.--The amendments made by subsection 
        (c) shall apply to fuels sold or used after September 30, 2014.
    (e) Special Rule for Certain Periods During 2014.--Notwithstanding 
any other provision of law, in the case of--
            (1) any biodiesel mixture credit properly determined under 
        section 6426(c) of the Internal Revenue Code of 1986 for 
        periods after December 31, 2013, and before the date of the 
        enactment of this Act, and
            (2) any alternative fuel credit properly determined under 
        section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment attributable to 
such credit (including any payment under section 6427(e) of such Code) 
shall be made, only in such manner as the Secretary of the Treasury (or 
the Secretary's delegate) shall provide. Such Secretary shall issue 
guidance within 30 days after the date of the enactment of this Act 
providing for a one-time submission of claims covering periods 
described in the preceding sentence. Such guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after 
such guidance is issued. Such claims shall be paid by such Secretary 
not later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after 
the date of the filing of such claim, the claim shall be paid with 
interest from such date determined by using the overpayment rate and 
method under section 6621 of such Code.

                 TITLE II--PROVISIONS EXPIRING IN 2014

                    Subtitle A--Energy Tax Extenders

SEC. 201. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL MOTOR 
              VEHICLES.

    (a) In General.--Paragraph (1) of section 30B(k) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2014.

SEC. 202. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``placed in service'' and all that follows and inserting 
``placed in service after December 31, 2015.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

Subtitle B--Extenders Relating to Multiemployer Defined Benefit Pension 
                                 Plans

SEC. 251. EXTENSION OF AUTOMATIC EXTENSION OF AMORTIZATION PERIODS.

    (a) In General.--Subparagraph (C) of section 431(d)(1) is amended 
by striking ``December 31, 2014'' and inserting ``December 31, 2015''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Subparagraph (C) of section 304(d)(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1084(d)(1)(C)) is amended by striking 
``December 31, 2014'' and inserting ``December 31, 2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to applications submitted under section 431(d)(1)(A) of the 
Internal Revenue Code of 1986 and section 304(d)(1)(C) of the Employee 
Retirement Income Security Act of 1974 after December 31, 2014.

SEC. 252. EXTENSION OF FUNDING IMPROVEMENT AND REHABILITATION PLAN 
              RULES.

    (a) In General.--Paragraphs (1) and (2) of section 221(c) of the 
Pension Protection Act of 2006 are each amended by striking ``December 
31, 2014'' and inserting ``December 31, 2015''.
    (b) Conforming Amendment.--Paragraph (2) of section 221(c) of the 
Pension Protection Act of 2006 is amended by striking ``January 1, 
2015'' and inserting ``January 1, 2016''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

                     TITLE III--REVENUE PROVISIONS

SEC. 301. PENALTY FOR FAILURE TO MEET DUE DILIGENCE REQUIREMENTS FOR 
              THE CHILD TAX CREDIT.

    (a) In General.--Section 6695 is amended by adding at the end the 
following new subsection:
    ``(h) Failure to Be Diligent in Determining Eligibility for Child 
Tax Credit.--Any person who is a tax return preparer with respect to 
any return or claim for refund who fails to comply with due diligence 
requirements imposed by the Secretary by regulations with respect to 
determining eligibility for, or the amount of, the credit allowable by 
section 24 shall pay a penalty of $500 for each such failure.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

SEC. 302. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO MEDICARE PROVIDERS 
              AND SUPPLIERS.

    (a) In General.--Paragraph (3) of section 6331(h) is amended by 
striking the period at the end and inserting ``, or to a Medicare 
provider or supplier under title XVIII of the Social Security Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made on or after the date which is 180 days after the date 
of the enactment of this Act.

SEC. 303. EXCLUSION FROM GROSS INCOME OF CERTAIN CLEAN COAL POWER 
              GRANTS TO NON-CORPORATE TAXPAYERS.

    (a) General Rule.--In the case of an eligible taxpayer other than a 
corporation, gross income for purposes of the Internal Revenue Code of 
1986 shall not include any amount received under section 402 of the 
Energy Policy Act of 2005.
    (b) Reduction in Basis.--The basis of any property subject to the 
allowance for depreciation under the Internal Revenue Code of 1986 
which is acquired with any amount to which subsection (a) applies 
during the 12-month period beginning on the day such amount is received 
shall be reduced by an amount equal to such amount. The excess (if any) 
of such amount over the amount of the reduction under the preceding 
sentence shall be applied to the reduction (as of the last day of the 
period specified in the preceding sentence) of the basis of any other 
property held by the taxpayer. The particular properties to which the 
reductions required by this subsection are allocated shall be 
determined by the Secretary of the Treasury (or the Secretary's 
delegate) under regulations similar to the regulations under section 
362(c)(2) of such Code.
    (c) Limitation to Amounts Which Would Be Contributions to 
Capital.--Subsection (a) shall not apply to any amount unless such 
amount, if received by a corporation, would be excluded from gross 
income under section 118 of the Internal Revenue Code of 1986.
    (d) Eligible Taxpayer.--For purposes of this section, with respect 
to any amount received under section 402 of the Energy Policy Act of 
2005, the term ``eligible taxpayer'' means a taxpayer that makes a 
payment to the Secretary of the Treasury (or the Secretary's delegate) 
equal to 1.18 percent of the amount so received. Such payment shall be 
made at such time and in such manner as such Secretary (or the 
Secretary's delegate) shall prescribe. In the case of a partnership, 
such Secretary (or the Secretary's delegate) shall prescribe 
regulations to determine the allocation of such payment amount among 
the partners.
    (e) Effective Date.--This section shall apply to amounts received 
under section 402 of the Energy Policy Act of 2005 in taxable years 
beginning after December 31, 2011.

SEC. 304. REFORM OF RULES RELATING TO QUALIFIED TAX COLLECTION 
              CONTRACTS.

    (a) Requirement to Collect Certain Inactive Tax Receivables Under 
Qualified Tax Collection Contracts.--Section 6306 is amended by 
redesignating subsections (c) through (f) as subsections (d) through 
(g), respectively, and by inserting after subsection (b) the following 
new subsection:
    ``(c) Collection of Inactive Tax Receivables.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary shall enter into one or more qualified tax 
        collection contracts for the collection of all outstanding 
        inactive tax receivables.
            ``(2) Inactive tax receivables.--For purposes of this 
        section--
                    ``(A) In general.--The term `inactive tax 
                receivable' means any tax receivable if--
                            ``(i) at any time after assessment, the 
                        Internal Revenue Service removes such 
                        receivable from the active inventory for lack 
                        of resources or inability to locate the 
                        taxpayer,
                            ``(ii) more than \1/3\ of the period of the 
                        applicable statute of limitation has lapsed and 
                        such receivable has not been assigned for 
                        collection to any employee of the Internal 
                        Revenue Service, or
                            ``(iii) in the case of a receivable which 
                        has been assigned for collection, more than 365 
                        days have passed without interaction with the 
                        taxpayer or a third party for purposes of 
                        furthering the collection of such receivable.
                    ``(B) Tax receivable.--The term `tax receivable' 
                means any outstanding assessment which the Internal 
                Revenue Service includes in potentially collectible 
                inventory.''.
    (b) Certain Tax Receivables Not Eligible for Collection Under 
Qualified Tax Collection Contracts.--Section 6306, as amended by 
subsection (a), is amended by redesignating subsections (d) through (g) 
as subsections (e) through (h), respectively, and by inserting after 
subsection (c) the following new subsection:
    ``(d) Certain Tax Receivables Not Eligible for Collection Under 
Qualified Tax Collections Contracts.--A tax receivable shall not be 
eligible for collection pursuant to a qualified tax collection contract 
if such receivable--
            ``(1) is subject to a pending or active offer-in-compromise 
        or installment agreement,
            ``(2) is classified as an innocent spouse case,
            ``(3) involves a taxpayer identified by the Secretary as 
        being--
                    ``(A) deceased,
                    ``(B) under the age of 18,
                    ``(C) in a designated combat zone, or
                    ``(D) a victim of tax-related identity theft,
            ``(4) is currently under examination, litigation, criminal 
        investigation, or levy, or
            ``(5) is currently subject to a proper exercise of a right 
        of appeal under this title.''.
    (c) Contracting Priority.--Section 6306, as amended by the 
preceding provisions of this section, is amended by redesignating 
subsection (h) as subsection (i) and by inserting after subsection (g) 
the following new subsection:
    ``(h) Contracting Priority.--In contracting for the services of any 
person under this section, the Secretary shall utilize private 
collection contractors and debt collection centers on the schedule 
required under section 3711(g) of title 31, United States Code, 
including the technology and communications infrastructure established 
therein, to the extent such private collection contractors and debt 
collection centers are appropriate to carry out the purposes of this 
section.''.
    (d) Disclosure of Return Information.--Section 6103(k) is amended 
by adding at the end the following new paragraph:
            ``(11) Qualified tax collection contractors.--Persons 
        providing services pursuant to a qualified tax collection 
        contract under section 6306 may, if speaking to a person who 
        has identified himself or herself as having the name of the 
        taxpayer to which a tax receivable (within the meaning of such 
        section) relates, identify themselves as contractors of the 
        Internal Revenue Service and disclose the business name of the 
        contractor, and the nature, subject, and reason for the 
        contact. Disclosures under this paragraph shall be made only in 
        such situations and under such conditions as have been approved 
        by the Secretary.''.
    (e) Taxpayers Affected by Federally Declared Disasters.--Section 
6306, as amended by the preceding provisions of this section, is 
amended by redesignating subsection (i) as subsection (j) and by 
inserting after subsection (h) the following new subsection:
    ``(i) Taxpayers in Presidentially Declared Disaster Areas.--The 
Secretary may prescribe procedures under which a taxpayer determined to 
be affected by a Federally declared disaster (as defined by section 
165(h)(3)(C)) may request--
            ``(1) relief from immediate collection measures by 
        contractors under this section, and
            ``(2) a return of the inactive tax receivable to the 
        inventory of the Internal Revenue Service to be collected by an 
        employee thereof.''.
    (f) Report to Congress.--
            (1) In general.--Section 6306, as amended by the preceding 
        provisions of this section, is amended by redesignating 
        subsection (j) as subsection (k) and by inserting after 
        subsection (i) the following new subsection:
    ``(j) Report to Congress.--Not later than 90 days after the last 
day of each fiscal year (beginning with the first such fiscal year 
ending after the date of the enactment of this subsection), the 
Secretary shall submit to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the Senate a report 
with respect to qualified tax collection contracts under this section 
which shall include--
            ``(1) annually, with respect to such fiscal year--
                    ``(A) the total number and amount of tax 
                receivables provided to each contractor for collection 
                under this section,
                    ``(B) the total amounts collected (and amounts of 
                installment agreements entered into under subsection 
                (b)(1)(B)) with respect to each contractor and the 
                collection costs incurred (directly and indirectly) by 
                the Internal Revenue Service with respect to such 
                amounts,
                    ``(C) the impact of such contracts on the total 
                number and amount of unpaid assessments, and on the 
                number and amount of assessments collected by Internal 
                Revenue Service personnel after initial contact by a 
                contractor,
                    ``(D) the amount of fees retained by the Secretary 
                under subsection (e) and a description of the use of 
                such funds, and
                    ``(E) a disclosure safeguard report in a form 
                similar to that required under section 6103(p)(5), and
            ``(2) biannually (beginning with the second report 
        submitted under this subsection)--
                    ``(A) an independent evaluation of contractor 
                performance, and
                    ``(B) a measurement plan that includes a comparison 
                of the best practices used by the private collectors to 
                the collection techniques used by the Internal Revenue 
                Service and mechanisms to identify and capture 
                information on successful collection techniques used by 
                the contractors that could be adopted by the Internal 
                Revenue Service.''.
            (2) Repeal of existing reporting requirements with respect 
        to qualified tax collection contracts.--Section 881 of the 
        American Jobs Creation Act of 2004 is amended by striking 
        subsection (e).
    (g) Effective Dates.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to tax receivables identified by the Secretary 
        after the date of the enactment of this Act.
            (2) Contracting priority.--The Secretary shall begin 
        entering into contracts and agreements as described in the 
        amendment made by subsection (c) within 3 months after the date 
        of the enactment of this Act.
            (3) Disclosures.--The amendment made by subsection (d) 
        shall apply to disclosures made after the date of the enactment 
        of this Act.
            (4) Procedures; report to congress.--The amendments made by 
        subsections (e) and (f) shall take effect on the date of the 
        enactment of this Act.

SEC. 305. SPECIAL COMPLIANCE PERSONNEL PROGRAM.

    (a) In General.--Subsection (e) of section 6306, as redesignated by 
section 604, is amended by striking ``for collection enforcement 
activities of the Internal Revenue Service'' in paragraph (2) and 
inserting ``to fund the special compliance personnel program account 
under section 6307''.
    (b) Special Compliance Personnel Program Account.--Subchapter A of 
chapter 64 is amended by adding at the end the following new section:

``SEC. 6307. SPECIAL COMPLIANCE PERSONNEL PROGRAM ACCOUNT.

    ``(a) Establishment of a Special Compliance Personnel Program 
Account.--The Secretary shall establish an account within the 
Department for carrying out a program consisting of the hiring, 
training, and employment of special compliance personnel, and shall 
transfer to such account from time to time amounts retained by the 
Secretary under section 6306(e)(2).
    ``(b) Restrictions.--The program described in subsection (a) shall 
be subject to the following restrictions:
            ``(1) No funds shall be transferred to such account except 
        as described in subsection (a).
            ``(2) No other funds from any other source shall be 
        expended for special compliance personnel employed under such 
        program, and no funds from such account shall be expended for 
        the hiring of any personnel other than special compliance 
        personnel.
            ``(3) Notwithstanding any other authority, the Secretary is 
        prohibited from spending funds out of such account for any 
        purpose other than for costs under such program associated with 
        the employment of special compliance personnel and the 
        retraining and reassignment of current noncollections personnel 
        as special compliance personnel, and to reimburse the Internal 
        Revenue Service or other government agencies for the cost of 
        administering qualified tax collection contracts under section 
        6306.
    ``(c) Reporting.--Not later than March of each year, the 
Commissioner of Internal Revenue shall submit a report to the 
Committees on Finance and Appropriations of the Senate and the 
Committees on Ways and Means and Appropriations of the House of 
Representatives consisting of the following:
            ``(1) For the preceding fiscal year, all funds received in 
        the account established under subsection (a), administrative 
        and program costs for the program described in such subsection, 
        the number of special compliance personnel hired and employed 
        under the program, and the amount of revenue actually collected 
        by such personnel.
            ``(2) For the current fiscal year, all actual and estimated 
        funds received or to be received in the account, all actual and 
        estimated administrative and program costs, the number of all 
        actual and estimated special compliance personnel hired and 
        employed under the program, and the actual and estimated 
        revenue actually collected or to be collected by such 
        personnel.
            ``(3) For the following fiscal year, an estimate of all 
        funds to be received in the account, all estimated 
        administrative and program costs, the estimated number of 
        special compliance personnel hired and employed under the 
        program, and the estimated revenue to be collected by such 
        personnel.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Special compliance personnel.--The term `special 
        compliance personnel' means individuals employed by the 
        Internal Revenue Service as field function collection officers 
        or in a similar position, or employed to collect taxes using 
        the automated collection system or an equivalent replacement 
        system.
            ``(2) Program costs.--The term `program costs' means--
                    ``(A) total salaries (including locality pay and 
                bonuses), benefits, and employment taxes for special 
                compliance personnel employed or trained under the 
                program described in subsection (a), and
                    ``(B) direct overhead costs, salaries, benefits, 
                and employment taxes relating to support staff, rental 
                payments, office equipment and furniture, travel, data 
                processing services, vehicle costs, utilities, 
                telecommunications, postage, printing and reproduction, 
                supplies and materials, lands and structures, insurance 
                claims, and indemnities for special compliance 
                personnel hired and employed under this section.
        For purposes of subparagraph (B), the cost of management and 
        supervision of special compliance personnel shall be taken into 
        account as direct overhead costs to the extent such costs, when 
        included in total program costs under this paragraph, do not 
        represent more than 10 percent of such total costs.''.
    (c) Clerical Amendment.--The table of sections for subchapter A of 
chapter 64 is amended by inserting after the item relating to section 
6306 the following new item:

``Sec. 6307. Special compliance personnel program account.''.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts collected and retained by the Secretary after the date 
of the enactment of this Act.

SEC. 306. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS 
              FROM THE DEFINITION OF PERSONAL HOLDING COMPANY INCOME 
              FOR PURPOSES OF THE PERSONAL HOLDING COMPANY RULES.

    (a) In General.--Paragraph (1) of section 543(a) is amended by 
redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), 
respectively, and by inserting after subparagraph (B) the following new 
subparagraph:
                    ``(C) dividends received by a United States 
                shareholder (as defined in section 951(b)) from a 
                controlled foreign corporation (as defined in section 
                957(a)),''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after the date of the enactment of 
this Act.

SEC. 307. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES UNDER THE 
              INTERNAL REVENUE CODE OF 1986.

    (a) Failure to File Tax Return or Pay Tax.--Section 6651 is amended 
by adding at the end the following new subsection:
    ``(i) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $135 dollar 
        amount under subsection (a) shall be increased by such dollar 
        amount multiplied by the cost-of-living adjustment determined 
        under section 1(f)(3) determined by substituting `calendar year 
        2013' for `calendar year 1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (b) Failure to File Certain Information Returns, Registration 
Statements, etc.--
            (1) In general.--Section 6652(c) is amended by adding at 
        the end the following new paragraph:
            ``(6) Adjustment for inflation.--
                    ``(A) In general.--In the case of any failure 
                relating to a return required to be filed in a calendar 
                year beginning after 2014, each of the dollar amounts 
                under paragraphs (1), (2), and (3) shall be increased 
                by such dollar amount multiplied by the cost-of-living 
                adjustment determined under section 1(f)(3) determined 
                by substituting `calendar year 2013' for `calendar year 
                1992' in subparagraph (B) thereof.
                    ``(B) Rounding.--If any amount adjusted under 
                subparagraph (A)--
                            ``(i) is not less than $5,000 and is not a 
                        multiple of $500, such amount shall be rounded 
                        to the next lowest multiple of $500, and
                            ``(ii) is not described in clause (i) and 
                        is not a multiple of $5, such amount shall be 
                        rounded to the next lowest multiple of $5.''.
            (2) Conforming amendments.--
                    (A) The last sentence of section 6652(c)(1)(A) is 
                amended by striking ``the first sentence of this 
                subparagraph shall be applied by substituting `$100' 
                for `$20' and'' and inserting ``in applying the first 
                sentence of this subparagraph, the amount of the 
                penalty for each day during which a failure continues 
                shall be $100 in lieu of the amount otherwise 
                specified, and''.
                    (B) Clause (ii) of section 6652(c)(2)(C) is amended 
                by striking ``the first sentence of paragraph (1)(A)'' 
                and all that follows and inserting ``in applying the 
                first sentence of paragraph (1)(A), the amount of the 
                penalty for each day during which a failure continues 
                shall be $100 in lieu of the amount otherwise 
                specified, and in lieu of applying the second sentence 
                of paragraph (1)(A), the maximum penalty under 
                paragraph (1)(A) shall not exceed $50,000, and''.
    (c) Other Assessable Penalties With Respect to the Preparation of 
Tax Returns for Other Persons.--Section 6695 is amended by adding at 
the end the following new subsection:
    ``(h) Adjustment for Inflation.--
            ``(1) In general.--In the case of any failure relating to a 
        return or claim for refund filed in a calendar year beginning 
        after 2014, each of the dollar amounts under subsections (a), 
        (b), (c), (d), (e), (f), and (g) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under subparagraph 
        (A)--
                    ``(A) is not less than $5,000 and is not a multiple 
                of $500, such amount shall be rounded to the next 
                lowest multiple of $500, and
                    ``(B) is not described in clause (i) and is not a 
                multiple of $5, such amount shall be rounded to the 
                next lowest multiple of $5.''.
    (d) Failure to File Partnership Return.--Section 6698 is amended by 
adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $195 dollar 
        amount under subsection (b)(1) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (e) Failure to File S Corporation Return.--Section 6699 is amended 
by adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $195 dollar 
        amount under subsection (b)(1) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (f) Failure to File Correct Information Returns.--Paragraph (1) of 
section 6721(f) is amended by striking ``For each fifth calendar year 
beginning after 2012'' and inserting ``In the case of any failure 
relating to a return required to be filed in a calendar year beginning 
after 2014''.
    (g) Failure to Furnish Correct Payee Statements.--Paragraph (1) of 
section 6722(f) is amended by striking ``For each fifth calendar year 
beginning after 2012'' and inserting ``In the case of any failure 
relating to a statement required to be furnished in a calendar year 
beginning after 2014''.
    (h) Effective Date.--The amendments made by this section shall 
apply to returns required to be filed after December 31, 2014.

                      TITLE IV--BUDGETARY EFFECTS

SEC. 401. BUDGETARY EFFECTS.

    (a) Paygo Scorecard.--The budgetary effects of this Act shall not 
be entered on either PAYGO scorecard maintained pursuant to section 
4(d) of the Statutory Pay-As-You-Go Act of 2010.
    (b) Senate Paygo Scorecard.--The budgetary effects of this Act 
shall not be entered on any PAYGO scorecard maintained for purposes of 
section 201 of S. Con. Res. 21 (110th Congress).
                                                       Calendar No. 366

113th CONGRESS

  2d Session

                                S. 2260

                          [Report No. 113-154]

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.

_______________________________________________________________________

                             April 28, 2014

                 Read twice and placed on the calendar
```