II 

Calendar No. 18 

113TH CONGRESS 

1ST SESSION S. 388 

To appropriately limit sequestration, to eliminate tax loopholes, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 26, 2013 

Mr. REID (for Ms. MIKULSKI (for herself, Mrs. MURRAY, and Mr. REID)) introduced the following bill; which was read twice and placed on the calendar pursuant to the order of February 14, 2013 

A BILL 

To appropriately limit sequestration, to eliminate tax 

loopholes, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Family Eco5 nomic Protection Act of 2013’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 


tkelley on DSK3SPTVN1PROD with BILLS
2 

•S 388 PCS

TITLE I—BUDGET PROVISIONS 

Sec. 101. Adjustments to discretionary spending limits. 

Sec. 102. Treatment of sequester. 

Sec. 103. Budgetary effects. 

TITLE II—AGRICULTURAL PROGRAMS 

Sec. 201. Extension of agricultural programs. 

Sec. 202. Supplemental agricultural disaster assistance programs. 

Sec. 203. Noninsured crop assistance program. 

Sec. 204. Exemption of agriculture, nutrition, and forestry from BCA sequestration. 

Sec. 205. Effective date. 

TITLE III—REVENUE PROVISIONS 

Sec. 301. Reference. 

Sec. 302. Fair share tax on high-income taxpayers. 

Sec. 303. Denial of deduction for outsourcing expenses. 

Sec. 304. Modifications to the tax on petroleum. 

1 TITLE I—BUDGET PROVISIONS 

2 SEC. 101. ADJUSTMENTS TO DISCRETIONARY SPENDING 

3 LIMITS. 

4 (a) IN GENERAL.—Section 251(c) of the Balanced 

5 Budget and Emergency Deficit Control Act of 1985 (2 

6 U.S.C. 901(c)) is amended by striking paragraphs (2) 

7 through (10) and inserting the following: 

8 ‘‘(2) For fiscal year 2013— 

9 ‘‘(A) for the security category, 

10 $684,000,000,000 in new budget authority; and 

11 ‘‘(B) for the nonsecurity category, 

12 $359,000,000,000 in new budget authority; 

13 ‘‘(3) for fiscal year 2014— 

14 ‘‘(A) for the revised security category, 

15 $552,000,000,000 in new budget authority; and 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•S 388 PCS

1 ‘‘(B) for the revised nonsecurity category, 

2 $506,000,000,000 in new budget authority; 

3 ‘‘(4) for fiscal year 2015— 

4 ‘‘(A) for the revised security category, 

5 $563,040,000,000 in new budget authority; and 

6 ‘‘(B) for the revised nonsecurity category, 

7 $520,000,000,000 in new budget authority; 

8 ‘‘(5) for fiscal year 2016— 

9 ‘‘(A) for the revised security category, 

10 $574,301,000,000 in new budget authority; and 

11 ‘‘(B) for the revised nonsecurity category, 

12 $530,000,000,000 in new budget authority; 

13 ‘‘(6) for fiscal year 2017— 

14 ‘‘(A) for the revised security category, 

15 $586,361,000,000 in new budget authority; and 

16 ‘‘(B) for the revised nonsecurity category, 

17 $541,000,000,000 in new budget authority; 

18 ‘‘(7) for fiscal year 2018— 

19 ‘‘(A) for the revised security category, 

20 $598,675,000,000 in new budget authority; and 

21 ‘‘(B) for the revised nonsecurity category, 

22 $553,000,000,000 in new budget authority; 

23 ‘‘(8) for fiscal year 2019— 

24 ‘‘(A) for the revised security category, 

25 $611,846,000,000 in new budget authority; and 


tkelley on DSK3SPTVN1PROD with BILLS
4 

•S 388 PCS

1 ‘‘(B) for the revised nonsecurity category, 

2 $566,000,000,000 in new budget authority; 

3 ‘‘(9) for fiscal year 2020— 

4 ‘‘(A) for the revised security category, 

5 $625,306,000,000 in new budget authority; and 

6 ‘‘(B) for the revised nonsecurity category, 

7 $578,000,000,000 in new budget authority; and 

8 ‘‘(10) for fiscal year 2021— 

9 ‘‘(A) for the revised security category, 

10 $638,972,000,000 in new budget authority; and 

11 ‘‘(B) for the revised nonsecurity category, 

12 $590,000,000,000 in new budget authority;’’. 

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

14 Part C of title II of the Balanced Budget and Emergency 

15 Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is 

16 amended— 

17 (1) in section 250(c)(4) (2 U.S.C. 900(c)(4)), 

18 by adding at the end the following: 

19 ‘‘(D) The term ‘revised security category’ 

20 means discretionary appropriations in budget func21 tion 050. 

22 ‘‘(E) The term ‘revised nonsecurity category’ 

23 means discretionary appropriations other than in 

24 budget function 050.’’; and 

25 (2) in section 251A (2 U.S.C. 901A)— 


tkelley on DSK3SPTVN1PROD with BILLS
5 

•S 388 PCS

1 (A) by striking the matter preceding para2 graph (1) and inserting the following: ‘‘The dis3 cretionary spending caps under section 251(c) 

4 shall be applied in accordance with this section 

5 as follows:’’; 

6 (B) by striking paragraphs (1) and (2); 

7 (C) by redesignating paragraphs (3) 

8 through (11) as paragraphs (1) through (9), re9 spectively; 

10 (D) in paragraph (2), as redesignated, by 

11 striking ‘‘paragraph (3)’’ and inserting ‘‘para12 graph (1)’’; 

13 (E) in paragraph (3), as redesignated, by 

14 striking ‘‘paragraph (4)’’ each place it appears 

15 and inserting ‘‘paragraph (2)’’; 

16 (F) in paragraph (4), as redesignated, by 

17 striking ‘‘paragraph (4)’’ each place it appears 

18 and inserting ‘‘paragraph (2)’’; 

19 (G) in paragraph (5), as redesignated— 

20 (i) by striking ‘‘paragraph (5)’’ each 

21 place it appears and inserting ‘‘paragraph 

22 (3)’’; and 

23 (ii) by striking ‘‘paragraph (6)’’ each 

24 place it appears and inserting ‘‘paragraph 

25 (4)’’; 


tkelley on DSK3SPTVN1PROD with BILLS
6 

•S 388 PCS

1 (H) in paragraph (6), as redesignated— 

2 (i) by striking ‘‘paragraph (4)’’ and 

3 inserting ‘‘paragraph (2)’’; and 

4 (ii) by striking ‘‘paragraphs (5) and 

5 (6)’’ and inserting ‘‘paragraphs (3) and 

6 (4)’’; 

7 (I) in paragraph (7), as redesignated— 

8 (i) by striking ‘‘paragraph (8)’’ and 

9 inserting ‘‘paragraph (6)’’; and 

10 (ii) by striking ‘‘paragraph (6)’’ each 

11 place it appears and inserting ‘‘paragraph 

12 (4)’’; and 

13 (J) in paragraph (9), as redesignated, by 

14 striking ‘‘paragraph (4)’’ and inserting ‘‘para15 graph (2)’’. 

16 SEC. 102. TREATMENT OF SEQUESTER. 

17 (a) ADJUSTMENT.—Section 251A(1) of the Balanced 

18 Budget and Emergency Deficit Control Act of 1985 (2 

19 U.S.C. 901a(1)), as redesignated by section 101 of this 

20 Act, is amended— 

21 (1) in subparagraph (D), by striking ‘‘and’’ at 

22 the end; 

23 (2) in subparagraph (E)— 

24 (A) by striking ‘‘$24,000,000,000’’ and in25 serting ‘‘$109,333,000,000’’; and 


tkelley on DSK3SPTVN1PROD with BILLS
7 

•S 388 PCS

1 (B) by striking the period at the end and 

2 inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(F) for fiscal year 2014, reducing the 

5 amount calculated under subparagraphs (A) 

6 through (D) by $25,500,000,000.’’. 

7 (b) POSTPONEMENT OF BUDGET CONTROL ACT SE8 QUESTER FOR CALENDAR YEAR 2013.— 

9 (1) REPEAL.—Section 901(e) of the American 

10 Taxpayer Relief Act of 2012 (Public Law 112–240) 

11 is repealed. 

12 (2) BBEDCA.—Section 251A of the Balanced 

13 Budget and Emergency Deficit Control Act (2 

14 U.S.C. 901a) is amended— 

15 (A) in paragraph (2), as redesignated by 

16 section 101 of this Act, by striking ‘‘On March 

17 1, 2013, for fiscal year 2013, and in its seques18 tration preview report for fiscal years 2014’’ 

19 and inserting ‘‘On January 2, 2014, for fiscal 

20 year 2014, and in its sequestration preview re21 port for fiscal years 2015’’; 

22 (B) in paragraph (3), as redesignated by 

23 section 101 of this Act, by striking ‘‘2013’’ and 

24 inserting ‘‘2014’’; 


tkelley on DSK3SPTVN1PROD with BILLS
8 

•S 388 PCS

1 (C) in paragraph (4), as redesignated by 

2 section 101 of this Act, by striking ‘‘2013’’ and 

3 inserting ‘‘2014’’; and 

4 (D) in paragraph (5), as redesignated by 

5 section 101 of this Act— 

6 (i) in subparagraph (A), by striking 

7 ‘‘FISCAL YEAR 2013.—On March 1, 2013, 

8 for fiscal year 2013’’ and inserting ‘‘FIS9 CAL YEAR 2014.—On January 2, 2014, for 

10 fiscal year 2014’’; and 

11 (ii) in subparagraph (B)— 

12 (I) by striking ‘‘FISCAL YEARS

13 2014–2021’’ and inserting ‘‘FISCAL

14 YEARS 2015–2021’’; and 

15 (II) by striking ‘‘2014’’ each 

16 place it appears and inserting ‘‘2015’’. 

17 SEC. 103. BUDGETARY EFFECTS. 

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

19 this Act shall not be entered on either PAYGO scorecard 

20 maintained pursuant to section 4(d) of the Statutory Pay21 As-You-Go Act of 2010 (2 U.S.C. 933(d)). 

22 (b) SENATE PAYGO SCORECARD.—The budgetary 

23 effects of this Act shall not be entered on any PAYGO 

24 scorecard maintained for purposes of section 201 of S. 

25 Con. Res. 21 (110th Congress). 


tkelley on DSK3SPTVN1PROD with BILLS
9 

•S 388 PCS

1 TITLE II—AGRICULTURAL 

2 PROGRAMS 

3 SEC. 201. EXTENSION OF AGRICULTURAL PROGRAMS. 

4 (a) COMMODITY PROGRAMS.—Section 701(b) of the 

5 American Taxpayer Relief Act of 2012 (Public Law 112– 

6 240; 126 Stat. 2362) is amended— 

7 (1) by striking ‘‘(1) IN GENERAL.—The terms’’ 

8 and inserting the following: 

9 ‘‘(1) COVERED AND LOAN COMMODITIES.— 

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

11 subparagraph (B), the terms’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(B) PAYMENT ACRES.—Notwithstanding 

14 any other provision of law, in the case of direct 

15 payments for the 2013 crop year, the payment 

16 acres in section 1001(11) and section 1301(5) 

17 of the Food, Conservation, and Energy Act of 

18 2008 (7 U.S.C. 8702(11), 8751(5)) shall be 0 

19 percent of the base acres for the covered com20 modities and peanuts on a farm on which direct 

21 payments are made.’’. 

22 (b) CONSERVATION PROGRAMS.— 

23 (1) CONSERVATION STEWARDSHIP PROGRAM.— 

24 Notwithstanding section 726 of the Consolidated 

25 and Further Continuing Appropriations Act, 2012 


tkelley on DSK3SPTVN1PROD with BILLS
10 

•S 388 PCS

1 (Public Law 112–55; 125 Stat. 584) and section 

2 101(a)(1) of the Continuing Appropriations Resolu3 tion, 2013 (Public Law 112–175; 126 Stat. 1313), 

4 the acreage enrollment requirement in section 

5 1238G(d)(1) of the Food Security Act of 1985 (16 

6 U.S.C. 3838g(d)(1)) shall apply for fiscal year 2013. 

7 (2) VOLUNTARY PUBLIC ACCESS.—Section 

8 1240R(f)(1) of the Food Security Act of 1985 (16 

9 U.S.C. 3839bb–5) is amended— 

10 (A) in the heading, by striking ‘‘FISCAL

11 YEARS 2009 THROUGH 2012’’ and inserting 

12 ‘‘MANDATORY FUNDING’’; and 

13 (B) by inserting ‘‘, and $5,000,000 for fis14 cal year 2013’’ before the period at the end. 

15 (3) DESERT TERMINAL LAKES.—Section 2507 

16 of the Farm Security and Rural Investment Act of 

17 2002 (43 U.S.C. 2211 note; Public Law 107–171) 

18 is amended by adding at the end the following: 

19 ‘‘(c) MANDATORY FUNDING.—Of the funds of the 

20 Commodity Credit Corporation, the Secretary of Agri21 culture shall use to carry out this section $35,000,000 for 

22 fiscal year 2013, to remain available until expended.’’. 

23 (c) SUPPLEMENTAL NUTRITION ASSISTANCE PRO24 GRAM.— 


tkelley on DSK3SPTVN1PROD with BILLS
11 

•S 388 PCS

1 (1) EMPLOYMENT AND TRAINING PROGRAM.— 

2 Section 16(h)(1)(A) of the Food and Nutrition Act 

3 of 2008 (7 U.S.C. 2025(h)(1)(A)) is amended by 

4 striking ‘‘, except that for fiscal year 2013, the 

5 amount shall be $79,000,000’’. 

6 (2) NUTRITION EDUCATION.—Section 28(d)(1) 

7 of the Food and Nutrition Act of 2008 (7 U.S.C. 

8 2036a(d)(1)) is amended— 

9 (A) in subparagraph (A), by adding ‘‘and’’ 

10 after the semicolon at the end; and 

11 (B) by striking subparagraphs (B) through 

12 (F) and inserting the following: 

13 ‘‘(B) for fiscal year 2012 and each subse14 quent fiscal year, the applicable amount during 

15 the preceding fiscal year, as adjusted to reflect 

16 any increases for the 12-month period ending 

17 the preceding June 30 in the Consumer Price 

18 Index for All Urban Consumers published by 

19 the Bureau of Labor Statistics of the Depart20 ment of Labor.’’. 

21 (d) RESEARCH PROGRAMS.— 

22 (1) ORGANIC AGRICULTURE RESEARCH AND EX23 TENSION INITIATIVE.—Section 1672B(f) of the 

24 Food, Agriculture, Conservation, and Trade Act of 

25 1990 (7 U.S.C. 5925b(f)) is amended— 


tkelley on DSK3SPTVN1PROD with BILLS
12 

•S 388 PCS

1 (A) in paragraph (1)— 

2 (i) in the heading, by striking ‘‘FOR

3 FISCAL YEARS 2009 THROUGH 2012’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘2012’’ and inserting ‘‘2013’’; 

6 (B) in paragraph (2)— 

7 (i) in the heading, by striking ‘‘FOR

8 FISCAL YEARS 2009 THROUGH 2012’’; and 

9 (ii) by striking ‘‘2012’’ and inserting 

10 ‘‘2013’’; and 

11 (C) by striking paragraph (3). 

12 (2) SPECIALTY CROP RESEARCH INITIATIVE.— 

13 Section 412(h) of the Agricultural Research, Exten14 sion, and Education Reform Act of 1998 (7 U.S.C. 

15 7632(h)) is amended— 

16 (A) in paragraph (1)— 

17 (i) in the heading, by striking ‘‘FOR

18 FISCAL YEARS 2008 THROUGH 2012’’; and 

19 (ii) by striking ‘‘2012’’ and inserting 

20 ‘‘2013’’; 

21 (B) in paragraph (2)— 

22 (i) in the heading, by striking ‘‘FOR

23 FISCAL YEARS 2008 THROUGH 2012’’; and 

24 (ii) by striking ‘‘2012’’ and inserting 

25 ‘‘2013’’; 


tkelley on DSK3SPTVN1PROD with BILLS
13 

•S 388 PCS

1 (C) by striking paragraph (3); and 

2 (D) by redesignating paragraphs (4) and 

3 (5) as paragraphs (3) and (4), respectively. 

4 (3) BEGINNING FARMER AND RANCHER DEVEL5 OPMENT PROGRAM.—Section 7405(h) of the Farm 

6 Security and Rural Investment Act of 2002 (7 

7 U.S.C. 3319f(h)) is amended— 

8 (A) in paragraph (1)— 

9 (i) in the heading, by striking ‘‘FOR

10 FISCAL YEARS 2009 THROUGH 2012’’; and 

11 (ii) in subparagraph (B), by striking 

12 ‘‘2012’’ and inserting ‘‘2013’’; 

13 (B) in paragraph (2)— 

14 (i) in the heading, by striking ‘‘FOR

15 FISCAL YEARS 2008 THROUGH 2012’’; and 

16 (ii) by striking ‘‘2012’’ and inserting 

17 ‘‘2013’’; and 

18 (C) by striking paragraph (3). 

19 (e) ENERGY PROGRAMS.— 

20 (1) BIOBASED MARKETS PROGRAM.—Section 

21 9002(h)(1)(B) of the Farm Security and Rural In22 vestment Act of 2002 (7 U.S.C. 8102(h)(1)(B)) is 

23 amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

24 (2) BIOREFINERY ASSISTANCE.—Section 

25 9003(h)(1) of the Farm Security and Rural InvestVerDate Mar 15 2010 23:04 Feb 26, 2013 Jkt 029200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S388.PCS S388

tkelley on DSK3SPTVN1PROD with BILLS
14 

•S 388 PCS

1 ment Act of 2002 (7 U.S.C. 8103(h)(1)) is amend2 ed— 

3 (A) in subparagraph (A), by striking 

4 ‘‘and’’ at the end; 

5 (B) in subparagraph (B), by striking the 

6 period at the end and inserting ‘‘; and’’; and 

7 (C) by adding at the end the following: 

8 ‘‘(C) $100,000,000 for fiscal year 2013.’’. 

9 (3) BIOENERGY PROGRAM FOR ADVANCED

10 BIOFUELS.—Section 9005(g)(1) of the Farm Secu11 rity and Rural Investment Act of 2002 (7 U.S.C. 

12 8105(g)(1)) is amended— 

13 (A) in subparagraph (C), by striking 

14 ‘‘and’’ at the end; 

15 (B) in subparagraph (D), by striking the 

16 period at the end and inserting ‘‘; and’’; and 

17 (C) by adding at the end the following: 

18 ‘‘(E) $55,000,000 for fiscal year 2013.’’. 

19 (4) BIODIESEL FUEL EDUCATION PROGRAM.— 

20 Section 9006(d)(1) of the Farm Security and Rural 

21 Investment Act of 2002 (7 U.S.C. 8106(d)(1)) is 

22 amended— 

23 (A) in the heading, by striking ‘‘FISCAL

24 YEARS 2009 THROUGH 2012.—’’ and inserting 

25 ‘‘MANDATORY FUNDING.—’’; and 


tkelley on DSK3SPTVN1PROD with BILLS
15 

•S 388 PCS

1 (B) by striking ‘‘2012’’ and inserting 

2 ‘‘2013.’’ 

3 (5) RURAL ENERGY FOR AMERICA PROGRAM.— 

4 Section 9007(g)(1) of the Farm Security and Rural 

5 Investment Act of 2002 (7 U.S.C. 8107(g)(1)) is 

6 amended— 

7 (A) in subparagraph (C), by striking 

8 ‘‘and’’ at the end; 

9 (B) in subparagraph (D), by striking the 

10 period at the end and inserting ‘‘; and’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(E) $51,000,000 for fiscal year 2013.’’. 

13 (6) BIOMASS RESEARCH AND DEVELOPMENT.— 

14 Section 9008(h)(1) of the Farm Security and Rural 

15 Investment Act of 2002 (7 U.S.C. 8108(h)(1)) is 

16 amended— 

17 (A) in subparagraph (C), by striking 

18 ‘‘and’’ at the end; 

19 (B) in subparagraph (D), by striking the 

20 period at the end and inserting ‘‘; and’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(E) $33,600,000 for fiscal year 2013.’’. 

23 (7) BIOMASS CROP ASSISTANCE PROGRAM.— 

24 Section 9011(f)(1) of the Farm Security and Rural 


tkelley on DSK3SPTVN1PROD with BILLS
16 

•S 388 PCS

1 Investment Act of 2002 (7 U.S.C. 8111(f)) is 

2 amended— 

3 (A) in the heading, by striking ‘‘FISCAL

4 YEARS 2008 THROUGH 2012’’ and inserting 

5 ‘‘MANDATORY FUNDING’’; and 

6 (B) by inserting ‘‘, and not more than 

7 $38,600,000 for fiscal year 2013’’ after 

8 ‘‘2012’’. 

9 (f) HORTICULTURE AND ORGANIC AGRICULTURE

10 PROGRAMS.— 

11 (1) FARMERS MARKET PROMOTION PROGRAM.— 

12 Section 6(e)(1) of the Farmer-to-Consumer Direct 

13 Marketing Act of 1976 (7 U.S.C. 3005(e)(1)) is 

14 amended— 

15 (A) in the heading, by striking ‘‘FISCAL

16 YEARS 2008 THROUGH 2012.—’’ and inserting 

17 ‘‘MANDATORY FUNDING.—’’; and 

18 (B) subparagraph (C), by striking ‘‘and 

19 2012’’ and inserting ‘‘through 2013’’. 

20 (2) NATIONAL CLEAN PLANT NETWORK.—Sec21 tion 10202(e)(1) of the Food, Conservation, and En22 ergy Act of 2008 (7 U.S.C. 7761(e)(1)) is amend23 ed— 


tkelley on DSK3SPTVN1PROD with BILLS
17 

•S 388 PCS

1 (A) in the heading, by striking ‘‘FISCAL

2 YEARS 2009 THROUGH 2012.—’’ and inserting 

3 ‘‘MANDATORY FUNDING.—’’; and 

4 (B) by striking ‘‘2012’’ and inserting 

5 ‘‘2013’’. 

6 (3) NATIONAL ORGANIC CERTIFICATION COST7 SHARE PROGRAM.—Section 10606(d)(1) of the Farm 

8 Security and Rural Investment Act of 2002 (7 

9 U.S.C. 6523(d)(1)) is amended by— 

10 (A) in the heading, by striking ‘‘FOR FIS11 CAL YEARS 2008 THROUGH 2012’’; and 

12 (B) by inserting ‘‘, and $5,000,000 for fis13 cal year 2013’’ after ‘‘2012’’. 

14 (4) ORGANIC PRODUCTION AND MARKET DATA

15 INITIATIVES.—Section 7407(d) of the Farm Security 

16 and Rural Investment Act of 2002 (7 U.S.C. 

17 5925c(d)) is amended by striking paragraph (1) and 

18 inserting the following: 

19 ‘‘(1) MANDATORY FUNDING.—Of the funds of 

20 the Commodity Credit Corporation, the Secretary 

21 shall use to carry out this section, to remain avail22 able until expended— 

23 ‘‘(A) $5,000,000 for each fiscal year 

24 through fiscal year 2012; and 

25 ‘‘(B) $1,000,000 for fiscal year 2013.’’. 


tkelley on DSK3SPTVN1PROD with BILLS
18 

•S 388 PCS

1 (g) OUTREACH AND ASSISTANCE FOR SOCIALLY DIS2 ADVANTAGED FARMERS AND RANCHERS.—Section 

3 2501(a)(4)(A) of the Food, Agriculture, Conservation, and 

4 Trade Act of 1990 (7 U.S.C. 2279(a)(4)(A)) is amend5 ed— 

6 (1) in the heading, by striking ‘‘FISCAL YEARS

7 2009 THROUGH 2012.—’’ and inserting ‘‘MANDATORY

8 FUNDING.—’’; 

9 (2) in clause (i), by striking ‘‘and’’ at the end; 

10 (3) in clause (ii), by striking the period at the 

11 end and inserting ‘‘; and’’; and 

12 (4) by adding at the end the following: 

13 ‘‘(iii) $15,000,000 for fiscal year 

14 2013.’’. 

15 (h) RURAL DEVELOPMENT.— 

16 (1) RURAL MICROENTREPRENEUR ASSISTANCE

17 PROGRAM.—Section 379E(d) of the Consolidated 

18 Farm and Rural Development Act (7 U.S.C. 

19 2008s(d)) is amended— 

20 (A) in paragraph (1)(B), by striking ‘‘fis21 cal year 2012’’ and inserting ‘‘for each of fiscal 

22 years 2012 and 2013’’; and 

23 (B) in paragraph (2), by striking ‘‘2012’’ 

24 and inserting ‘‘2013’’. 


tkelley on DSK3SPTVN1PROD with BILLS
19 

•S 388 PCS

1 (2) VALUE-ADDED AGRICULTURAL PRODUCT

2 MARKET DEVELOPMENT GRANTS.—Section 

3 231(b)(7) of the Agricultural Risk Protection Act of 

4 2000 (7 U.S.C. 1632a(b)(7)) is amended— 

5 (A) by striking subparagraph (A) and in6 serting the following: 

7 ‘‘(A) MANDATORY FUNDING.—Of the 

8 funds of the Commodity Credit Corporation, the 

9 Secretary shall make available to carry out this 

10 subsection, to remain available until ex11 pended— 

12 ‘‘(i) on October 1, 2008, $15,000,000; 

13 and 

14 ‘‘(ii) on October 1, 2012, 

15 $3,000,000.’’; and 

16 (B) in subparagraph (B), by striking 

17 ‘‘2012’’ and inserting ‘‘2013’’. 

18 SEC. 202. SUPPLEMENTAL AGRICULTURAL DISASTER AS19 SISTANCE PROGRAMS. 

20 (a) IN GENERAL.—Section 531 of the Federal Crop 

21 Insurance Act (7 U.S.C. 1531) is amended— 

22 (1) in subsection (b)— 

23 (A) in paragraph (1)(A), by striking ‘‘The 

24 Secretary shall use such sums as are necessary 

25 from the Trust Fund’’ and inserting ‘‘Of the 


tkelley on DSK3SPTVN1PROD with BILLS
20 

•S 388 PCS

1 funds of the Commodity Credit Corporation, the 

2 Secretary shall use such sums as are necessary 

3 for fiscal year 2012’’; 

4 (B) in paragraph (2)(A), in the matter 

5 preceding clause (i), by striking ‘‘60 percent’’ 

6 and inserting ‘‘52 percent’’; and 

7 (C) in paragraph (4)(A)(ii), by striking 

8 ‘‘15 percent’’ and inserting ‘‘100 percent’’; 

9 (2) in subsection (c), by adding at the end the 

10 following: 

11 ‘‘(4) MANDATORY FUNDING.—Of the funds of 

12 the Commodity Credit Corporation, the Secretary 

13 shall use such sums as are necessary to carry out 

14 this subsection for each of fiscal years 2012 and 

15 2013.’’; 

16 (3) in subsection (d), by adding at the end the 

17 following: 

18 ‘‘(8) MANDATORY FUNDING.—Of the funds of 

19 the Commodity Credit Corporation, the Secretary 

20 shall use such sums as are necessary to carry out 

21 this subsection for each of fiscal years 2012 and 

22 2013.’’; 

23 (4) in subsection (e), by adding at the end the 

24 following: 


tkelley on DSK3SPTVN1PROD with BILLS
21 

•S 388 PCS

1 ‘‘(4) MANDATORY FUNDING.—Of the funds of 

2 the Commodity Credit Corporation, the Secretary 

3 shall use up to $5,000,000 to carry out this sub4 section for each of fiscal years 2012 and 2013.’’; 

5 (5) in subsection (f), by adding at the end the 

6 following: 

7 ‘‘(6) MANDATORY FUNDING.—Of the funds of 

8 the Commodity Credit Corporation, the Secretary 

9 shall use such sums as are necessary to carry out 

10 this subsection for each of fiscal years 2012 and 

11 2013.’’; and 

12 (6) in subsection (i), by striking ‘‘September 

13 30, 2011’’ and inserting ‘‘September 30, 2012’’. 

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

15 subsection (a) take effect on October 1, 2011. 

16 SEC. 203. NONINSURED CROP ASSISTANCE PROGRAM. 

17 (a) IN GENERAL.—Section 196 of the Federal Agri18 culture Improvement and Reform Act of 1996 (7 U.S.C. 

19 7333) is amended— 

20 (1) in subsection (a)— 

21 (A) by striking paragraph (1) and insert22 ing the following: 

23 ‘‘(1) IN GENERAL.— 

24 ‘‘(A) COVERAGES.—In the case of an eligi25 ble crop described in paragraph (2), the SecVerDate Mar 15 2010 23:04 Feb 26, 2013 Jkt 029200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S388.PCS S388

tkelley on DSK3SPTVN1PROD with BILLS
22 

•S 388 PCS

1 retary of Agriculture shall operate a noninsured 

2 crop disaster assistance program to provide cov3 erages based on individual yields (other than 

4 for value-loss crops) equivalent to— 

5 ‘‘(i) catastrophic risk protection avail6 able under section 508(b) of the Federal 

7 Crop Insurance Act (7 U.S.C. 1508(b)); or 

8 ‘‘(ii) additional coverage available 

9 under subsections (c) and (h) of section 

10 508 of that Act (7 U.S.C. 1508) that does 

11 not exceed 65 percent. 

12 ‘‘(B) ADMINISTRATION.—The Secretary 

13 shall carry out this section through the Farm 

14 Service Agency (referred to in this section as 

15 the ‘Agency’).’’; and 

16 (B) in paragraph (2)— 

17 (i) in subparagraph (A)— 

18 (I) in clause (i), by striking 

19 ‘‘and’’ after the semicolon at the end; 

20 (II) by redesignating clause (ii) 

21 as clause (iii); and 

22 (III) by inserting after clause (i) 

23 the following: 

24 ‘‘(ii) for which additional 

25 coverage under subsections (c) 


tkelley on DSK3SPTVN1PROD with BILLS
23 

•S 388 PCS

1 and (h) of section 508 of that 

2 Act (7 U.S.C. 1508) is not avail3 able; and’’; and 

4 (ii) in subparagraph (B)— 

5 (I) by inserting ‘‘(except ferns)’’ 

6 after ‘‘floricultural’’; 

7 (II) by inserting ‘‘(except ferns)’’ 

8 after ‘‘ornamental nursery’’; and 

9 (III) by striking ‘‘(including or10 namental fish)’’ and inserting ‘‘(in11 cluding ornamental fish, but excluding 

12 tropical fish)’’; 

13 (2) in subsection (d), by striking ‘‘The Sec14 retary’’ and inserting ‘‘Subject to subsection (l), the 

15 Secretary’’; 

16 (3) in subsection (k)(1)— 

17 (A) in subparagraph (A), by striking 

18 ‘‘$250’’ and inserting ‘‘$260’’; and 

19 (B) in subparagraph (B)— 

20 (i) by striking ‘‘$750’’ and inserting 

21 ‘‘$780’’; and 

22 (ii) by striking ‘‘$1,875’’ and insert23 ing ‘‘$1,950’’; and 

24 (4) by adding at the end the following: 


tkelley on DSK3SPTVN1PROD with BILLS
24 

•S 388 PCS

1 ‘‘(l) PAYMENT EQUIVALENT TO ADDITIONAL COV2 ERAGE.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall make 

4 available to a producer eligible for noninsured assist5 ance under this section a payment equivalent to an 

6 indemnity for additional coverage under subsections 

7 (c) and (h) of section 508 of the Federal Crop In8 surance Act (7 U.S.C. 1508) that does not exceed 

9 65 percent, computed by multiplying— 

10 ‘‘(A) the quantity that is less than 50 to 

11 65 percent of the established yield for the crop, 

12 as determined by the Secretary, specified in in13 crements of 5 percent; 

14 ‘‘(B) 100 percent of the average market 

15 price for the crop, as determined by the Sec16 retary; and 

17 ‘‘(C) a payment rate for the type of crop, 

18 as determined by the Secretary, that reflects— 

19 ‘‘(i) in the case of a crop that is pro20 duced with a significant and variable har21 vesting expense, the decreasing cost in22 curred in the production cycle for the crop 

23 that is, as applicable— 

24 ‘‘(I) harvested; 


tkelley on DSK3SPTVN1PROD with BILLS
25 

•S 388 PCS

1 ‘‘(II) planted but not harvested; 

2 or 

3 ‘‘(III) prevented from being 

4 planted because of drought, flood, or 

5 other natural disaster, as determined 

6 by the Secretary; or 

7 ‘‘(ii) in the case of a crop that is pro8 duced without a significant and variable 

9 harvesting expense, such rate as shall be 

10 determined by the Secretary. 

11 ‘‘(2) PREMIUM.—To be eligible to receive a pay12 ment under this subsection, a producer shall pay— 

13 ‘‘(A) the service fee required by subsection 

14 (k); and 

15 ‘‘(B) a premium for the applicable crop 

16 year that is equal to— 

17 ‘‘(i) the product obtained by multi18 plying— 

19 ‘‘(I) the number of acres devoted 

20 to the eligible crop; 

21 ‘‘(II) the yield, as determined by 

22 the Secretary under subsection (e); 

23 ‘‘(III) the coverage level elected 

24 by the producer; 


tkelley on DSK3SPTVN1PROD with BILLS
26 

•S 388 PCS

1 ‘‘(IV) the average market price, 

2 as determined by the Secretary; and 

3 ‘‘(ii) 5.25-percent premium fee. 

4 ‘‘(3) LIMITED RESOURCE, BEGINNING, AND SO5 CIALLY DISADVANTAGED FARMERS.—The additional 

6 coverage made available under this subsection shall 

7 be available to limited resource, beginning, and so8 cially disadvantaged producers, as determined by the 

9 Secretary, in exchange for a premium that is 50 per10 cent of the premium determined for a producer 

11 under paragraph (2). 

12 ‘‘(4) ADDITIONAL AVAILABILITY.— 

13 ‘‘(A) IN GENERAL.—As soon as prac14 ticable, the Secretary shall make assistance 

15 available to producers of an otherwise eligible 

16 crop described in subsection (a)(2) that suffered 

17 losses— 

18 ‘‘(i) to a 2012 annual fruit crop 

19 grown on a bush or tree; and 

20 ‘‘(ii) in a county covered by a declara21 tion by the Secretary of a natural disaster 

22 for production losses due to a freeze or 

23 frost. 

24 ‘‘(B) ASSISTANCE.—The Secretary shall 

25 make assistance available under subparagraph 


tkelley on DSK3SPTVN1PROD with BILLS
27 

•S 388 PCS

1 (A) in an amount equivalent to assistance avail2 able under paragraph (1), less any fees not pre3 viously paid under paragraph (2).’’. 

4 (b) TERMINATION DATE.— 

5 (1) IN GENERAL.—Effective October 1, 2017, 

6 subsection (a) and the amendments made by sub7 section (a) (other than the amendments made by 

8 clauses (i)(I) and (ii) of subsection (a)(1)(B)) are re9 pealed 

10 (2) ADMINISTRATION.—Effective October 1, 

11 2017, section 196 of the Federal Agriculture Im12 provement and Reform Act of 1996 (7 U.S.C. 7333) 

13 shall be applied and administered as if subsection 

14 (a) and the amendments made by subsection (a) 

15 (other than the amendments made by clauses (i)(I) 

16 and (ii) of subsection (a)(1)(B)) had not been en17 acted. 

18 SEC. 204. EXEMPTION OF AGRICULTURE, NUTRITION, AND 

19 FORESTRY FROM BCA SEQUESTRATION. 

20 Section 251A(6) of the Balanced Budget and Emer21 gency Deficit Control Act of 1985 (2 U.S.C. 901a(6)), as 

22 redesignated by section 101 of this Act, is amended— 

23 (1) by striking ‘‘On the date’’ and inserting the 

24 following: 

25 ‘‘(A) IN GENERAL.—On the date’’; 


tkelley on DSK3SPTVN1PROD with BILLS
28 

•S 388 PCS

1 (2) in subparagraph (A), as so designated, in 

2 the second sentence, by inserting ‘‘subparagraph (B) 

3 of this paragraph and’’ after ‘‘the exemptions speci4 fied in’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(B) EXEMPTION OF AGRICULTURE, NU7 TRITION, AND FORESTRY.—The following shall 

8 be exempt from reduction under any order 

9 issued pursuant to this paragraph: 

10 ‘‘(i) All programs, projects, and activi11 ties of the Commodity Credit Corporation. 

12 ‘‘(ii) All programs, projects, and ac13 tivities of the Federal Crop Insurance Cor14 poration. 

15 ‘‘(iii) All programs, projects, and ac16 tivities carried out under section 32 of the 

17 Act of August 24, 1935 (7 U.S.C. 612c). 

18 ‘‘(iv) All other direct spending ac19 counts of the Department of Agriculture.’’. 

20 SEC. 205. EFFECTIVE DATE. 

21 Except as otherwise provided in this title, this title 

22 and the amendments made by this title take effect on the 

23 date of enactment of, and as if included in, the American 

24 Taxpayer Relief Act of 2012 (Public Law 112–240; 126 

25 Stat. 2313). 


tkelley on DSK3SPTVN1PROD with BILLS
29 

•S 388 PCS

1 TITLE III—REVENUE 

2 PROVISIONS 

3 SEC. 301. REFERENCE. 

4 Except as otherwise expressly provided, whenever in 

5 this title an amendment or repeal is expressed in terms 

6 of an amendment to, or repeal of, a section or other provi7 sion, the reference shall be considered to be made to a 

8 section or other provision of the Internal Revenue Code 

9 of 1986. 

10 SEC. 302. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 

11 (a) IN GENERAL.—Subchapter A of chapter 1 is 

12 amended by adding at the end the following new part: 

13 ‘‘PART VIII—FAIR SHARE TAX ON HIGH-INCOME 

14 TAXPAYERS 

‘‘Sec. 59B. Fair share tax. 

15 ‘‘SEC. 59B. FAIR SHARE TAX. 

16 ‘‘(a) GENERAL RULE.— 

17 ‘‘(1) PHASE-IN OF TAX.—In the case of any 

18 high-income taxpayer, there is hereby imposed for a 

19 taxable year (in addition to any other tax imposed 

20 by this subtitle) a tax equal to the product of— 

21 ‘‘(A) the amount determined under para22 graph (2), and 

23 ‘‘(B) a fraction (not to exceed 1)— 


tkelley on DSK3SPTVN1PROD with BILLS
30 

•S 388 PCS

1 ‘‘(i) the numerator of which is the ex2 cess of— 

3 ‘‘(I) the taxpayer’s adjusted 

4 gross income, over 

5 ‘‘(II) the dollar amount in effect 

6 under subsection (c)(1), and 

7 ‘‘(ii) the denominator of which is 

8 $4,000,000 ($2,000,000 in the case of a 

9 married individual who files a separate re10 turn). 

11 ‘‘(2) AMOUNT OF TAX.—The amount of tax de12 termined under this paragraph is an amount equal 

13 to the excess (if any) of— 

14 ‘‘(A) the tentative fair share tax for the 

15 taxable year, over 

16 ‘‘(B) the excess of— 

17 ‘‘(i) the sum of— 

18 ‘‘(I) the regular tax liability (as 

19 defined in section 26(b)) for the tax20 able year, determined without regard 

21 to any tax liability determined under 

22 this section, 

23 ‘‘(II) the tax imposed by section 

24 55 for the taxable year, plus 


tkelley on DSK3SPTVN1PROD with BILLS
31 

•S 388 PCS

1 ‘‘(III) the payroll tax for the tax2 able year, over 

3 ‘‘(ii) the credits allowable under part 

4 IV of subchapter A (other than sections 

5 27(a), 31, and 34). 

6 ‘‘(b) TENTATIVE FAIR SHARE TAX.—For purposes 

7 of this section— 

8 ‘‘(1) IN GENERAL.—The tentative fair share tax 

9 for the taxable year is 30 percent of the excess of— 

10 ‘‘(A) the adjusted gross income of the tax11 payer, over 

12 ‘‘(B) the modified charitable contribution 

13 deduction for the taxable year. 

14 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

15 DEDUCTION.—For purposes of paragraph (1)— 

16 ‘‘(A) IN GENERAL.—The modified chari17 table contribution deduction for any taxable 

18 year is an amount equal to the amount which 

19 bears the same ratio to the deduction allowable 

20 under section 170 (section 642(c) in the case of 

21 a trust or estate) for such taxable year as— 

22 ‘‘(i) the amount of itemized deduc23 tions allowable under the regular tax (as 

24 defined in section 55) for such taxable 


tkelley on DSK3SPTVN1PROD with BILLS
32 

•S 388 PCS

1 year, determined after the application of 

2 section 68, bears to 

3 ‘‘(ii) such amount, determined before 

4 the application of section 68. 

5 ‘‘(B) TAXPAYER MUST ITEMIZE.—In the 

6 case of any individual who does not elect to 

7 itemize deductions for the taxable year, the 

8 modified charitable contribution deduction shall 

9 be zero. 

10 ‘‘(c) HIGH-INCOME TAXPAYER.—For purposes of this 

11 section— 

12 ‘‘(1) IN GENERAL.—The term ‘high-income tax13 payer’ means, with respect to any taxable year, any 

14 taxpayer (other than a corporation) with an adjusted 

15 gross income for such taxable year in excess of 

16 $1,000,000 (50 percent of such amount in the case 

17 of a married individual who files a separate return). 

18 ‘‘(2) INFLATION ADJUSTMENT.— 

19 ‘‘(A) IN GENERAL.—In the case of a tax20 able year beginning after 2013, the $1,000,000 

21 amount under paragraph (1) shall be increased 

22 by an amount equal to— 

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

24 ‘‘(ii) the cost-of-living adjustment de25 termined under section 1(f)(3) for the calVerDate Mar 15 2010 23:04 Feb 26, 2013 Jkt 029200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S388.PCS S388

tkelley on DSK3SPTVN1PROD with BILLS
33 

•S 388 PCS

1 endar year in which the taxable year be2 gins, determined by substituting ‘calendar 

3 year 2012’ for ‘calendar year 1992’ in sub4 paragraph (B) thereof. 

5 ‘‘(B) ROUNDING.—If any amount as ad6 justed under subparagraph (A) is not a multiple 

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

8 the next lowest multiple of $10,000. 

9 ‘‘(d) PAYROLL TAX.—For purposes of this section, 

10 the payroll tax for any taxable year is an amount equal 

11 to the excess of— 

12 ‘‘(1) the taxes imposed on the taxpayer under 

13 sections 1401, 1411, 3101, 3201, and 3211(a) (to 

14 the extent such tax is attributable to the rate of tax 

15 in effect under section 3101) with respect to such 

16 taxable year or wages or compensation received dur17 ing such taxable year, over 

18 ‘‘(2) the deduction allowable under section 

19 164(f) for such taxable year. 

20 ‘‘(e) SPECIAL RULE FOR ESTATES AND TRUSTS.— 

21 For purposes of this section, in the case of an estate or 

22 trust, adjusted gross income shall be computed in the 

23 manner described in section 67(e). 

24 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP25 TER FOR CERTAIN PURPOSES.—The tax imposed under 


tkelley on DSK3SPTVN1PROD with BILLS
34 

•S 388 PCS

1 this section shall not be treated as tax imposed by this 

2 chapter for purposes of determining the amount of any 

3 credit under this chapter (other than the credit allowed 

4 under section 27(a)) or for purposes of section 55.’’. 

5 (b) CLERICAL AMENDMENT.—The table of parts for 

6 subchapter A of chapter 1 is amended by adding at the 

7 end the following new item: 

‘‘PART VIII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS’’. 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2013. 

11 SEC. 303. DENIAL OF DEDUCTION FOR OUTSOURCING EX12 PENSES. 

13 (a) IN GENERAL.—Part IX of subchapter B of chap14 ter 1 is amended by adding at the end the following new 

15 section: 

16 ‘‘SEC. 280I. OUTSOURCING EXPENSES. 

17 ‘‘(a) IN GENERAL.—No deduction otherwise allow18 able under this chapter shall be allowed for any specified 

19 outsourcing expense. 

20 ‘‘(b) SPECIFIED OUTSOURCING EXPENSE.—For pur21 poses of this section— 

22 ‘‘(1) IN GENERAL.—The term ‘specified out23 sourcing expense’ means— 

24 ‘‘(A) any eligible expense paid or incurred 

25 by the taxpayer in connection with the elimiVerDate Mar 15 2010 23:04 Feb 26, 2013 Jkt 029200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S388.PCS S388

tkelley on DSK3SPTVN1PROD with BILLS
35 

•S 388 PCS

1 nation of any business unit of the taxpayer (or 

2 of any member of any expanded affiliated group 

3 in which the taxpayer is also a member) located 

4 within the United States, and 

5 ‘‘(B) any eligible expense paid or incurred 

6 by the taxpayer in connection with the estab7 lishment of any business unit of the taxpayer 

8 (or of any member of any expanded affiliated 

9 group in which the taxpayer is also a member) 

10 located outside the United States, 

11 if such establishment constitutes the relocation of 

12 the business unit so eliminated. For purposes of the 

13 preceding sentence, a relocation shall not be treated 

14 as failing to occur merely because such elimination 

15 occurs in a different taxable year than such estab16 lishment. 

17 ‘‘(2) ELIGIBLE EXPENSES.—The term ‘eligible 

18 expenses’ means— 

19 ‘‘(A) any amount for which a deduction is 

20 allowed to the taxpayer under section 162, and 

21 ‘‘(B) permit and license fees, lease broker22 age fees, equipment installation costs, and, to 

23 the extent provided by the Secretary, other 

24 similar expenses. 


tkelley on DSK3SPTVN1PROD with BILLS
36 

•S 388 PCS

1 Such term does not include any compensation which 

2 is paid or incurred in connection with severance 

3 from employment and, to the extent provided by the 

4 Secretary, any similar amount. 

5 ‘‘(3) BUSINESS UNIT.—The term ‘business unit’ 

6 means— 

7 ‘‘(A) any trade or business, and 

8 ‘‘(B) any line of business, or functional 

9 unit, which is part of any trade or business. 

10 ‘‘(4) EXPANDED AFFILIATED GROUP.—The 

11 term ‘expanded affiliated group’ means an affiliated 

12 group as defined in section 1504(a), determined 

13 without regard to section 1504(b)(3) and by sub14 stituting ‘more than 50 percent’ for ‘at least 80 per15 cent’ each place it appears in section 1504(a). A 

16 partnership or any other entity (other than a cor17 poration) shall be treated as a member of an ex18 panded affiliated group if such entity is controlled 

19 (within the meaning of section 954(d)(3)) by mem20 bers of such group (including any entity treated as 

21 a member of such group by reason of this para22 graph). 

23 ‘‘(5) OPERATING EXPENSES NOT TAKEN INTO

24 ACCOUNT.—Any amount paid or incurred in connec25 tion with the on-going operation of a business unit 


tkelley on DSK3SPTVN1PROD with BILLS
37 

•S 388 PCS

1 shall not be treated as an amount paid or incurred 

2 in connection with the establishment or elimination 

3 of such business unit. 

4 ‘‘(c) SPECIAL RULES.— 

5 ‘‘(1) APPLICATION TO DEDUCTIONS FOR DE6 PRECIATION AND AMORTIZATION.—In the case of 

7 any portion of a specified outsourcing expense which 

8 is not deductible in the taxable year in which paid 

9 or incurred, such portion shall neither be chargeable 

10 to capital account nor amortizable. 

11 ‘‘(2) POSSESSIONS TREATED AS PART OF THE

12 UNITED STATES.—For purposes of this section, the 

13 term ‘United States’ shall be treated as including 

14 each possession of the United States (including the 

15 Commonwealth of Puerto Rico and the Common16 wealth of the Northern Mariana Islands). 

17 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

18 such regulations or other guidance as may be necessary 

19 or appropriate to carry out the purposes of this section, 

20 including regulations which provide (or create a rebuttable 

21 presumption) that certain establishments of business units 

22 outside the United States will be treated as relocations 

23 (based on timing or such other factors as the Secretary 

24 may provide) of business units eliminated within the 

25 United States.’’. 


tkelley on DSK3SPTVN1PROD with BILLS
38 

•S 388 PCS

1 (b) LIMITATION ON SUBPART F INCOME OF CON2 TROLLED FOREIGN CORPORATIONS DETERMINED WITH3 OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 

4 Subsection (c) of section 952 is amended by adding at the 

5 end the following new paragraph: 

6 ‘‘(4) EARNINGS AND PROFITS DETERMINED

7 WITHOUT REGARD TO SPECIFIED OUTSOURCING EX8 PENSES.—For purposes of this subsection, earnings 

9 and profits of any controlled foreign corporation 

10 shall be determined without regard to any specified 

11 outsourcing expense (as defined in section 

12 280I(b)).’’. 

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

14 for part IX of subchapter B of chapter 1 is amended by 

15 adding at the end the following new item: 

‘‘Sec. 280I. Outsourcing expenses.’’. 

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

17 this section shall apply to amounts paid or incurred after 

18 the date of the enactment of this Act. 

19 SEC. 304. MODIFICATIONS TO THE TAX ON PETROLEUM. 

20 (a) DEFINITION OF CRUDE OIL.—Paragraph (1) of 

21 section 4612(a) is amended to read as follows: 

22 ‘‘(1) CRUDE OIL.—The term ‘crude oil’ includes 

23 crude oil condensates, natural gasoline, any bitumen 

24 or bituminous mixture, and any oil derived from a 

25 bitumen or bituminous mixture.’’. 


tkelley on DSK3SPTVN1PROD with BILLS
39 

•S 388 PCS

1 (b) REMOVING RESTRICTIONS RELATING TO OIL

2 WELLS AND EXTRACTION METHODS.—Paragraph (2) of 

3 section 4612(a) is amended by striking ‘‘from a well lo4 cated’’. 

5 (c) CLERICAL AMENDMENT.—Subclause (I) of sec6 tion 4612(e)(2)(B)(ii) is amended by striking ‘‘tranferred’’ 

7 and inserting ‘‘transferred’’. 

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

9 subsections (a) and (b) shall apply to oil and petroleum 

10 products received or entered during calendar quarters be11 ginning more than 60 days after the date of the enactment 

12 of this Act. 


tkelley on DSK3SPTVN1PROD with BILLS
Calendar No. 18 

113TH CONGRESS 

1ST SESSION S. 388 

A BILL 

To appropriately limit sequestration, to eliminate 

tax loopholes, and for other purposes. 

FEBRUARY 26, 2013 

Read twice and placed on the calendar pursuant to the 

order of February 14, 2013 


tkelley on DSK3SPTVN1PROD with BILLS