II 

108TH CONGRESS 

1ST SESSION S. 1896

To provide extensions for certain expiring provisions of the Internal Revenue 

Code of 1986, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 19, 2003

Mr. GRASSLEY (for himself, Mr. BAUCUS, Mr. SMITH, Mr. ROCKEFELLER, 

Mr. HATCH, Mr. CONRAD, Mr. BUNNING, Mr. GRAHAM of Florida, Mr. 

SANTORUM, Mr. JEFFORDS, and Mr. BREAUX) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL

To provide extensions for certain expiring provisions of the 

Internal Revenue Code of 1986, and for other purposes.

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

3 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 

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

5 ‘‘Tax Relief Extension Act of 2003’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 
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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 TITLE I—EXTENSIONS OF 

4 CERTAIN EXPIRING PROVISIONS 

5 SEC. 101. PARITY IN THE APPLICATION OF CERTAIN LIMITS 

6 TO MENTAL HEALTH BENEFITS. 

7 (a) IN GENERAL.—Paragraph (2) of section 9812(f) 

8 is amended by striking ‘‘December 31, 2003’’ and insert9 ing ‘‘June 30, 2004’’. 

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

11 subsection (a) shall take effect on January 1, 2004. 

12 SEC. 102. CREDIT FOR ELECTRICITY PRODUCED FROM 

13 CERTAIN RENEWABLE RESOURCES. 

14 (a) IN GENERAL.—Subparagraphs (A), (B), and (C) 

15 of section 45(c)(3) are each amended by striking ‘‘January 

16 1, 2004’’ and inserting ‘‘July 1, 2004’’. 

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

18 subsection (a) shall apply to facilities placed in service 

19 after December 31, 2003. 

20 SEC. 103. WORK OPPORTUNITY CREDIT. 

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

22 51(c)(4) is amended by striking ‘‘December 31, 2003’’ and 

23 inserting ‘‘June 30, 2004’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply to individuals who begin work 

3 for the employer after December 31, 2003. 

4 SEC. 104. WELFARE-TO-WORK CREDIT. 

5 (a) IN GENERAL.—Subsection (f) of section 51A is 

6 amended by striking ‘‘December 31, 2003’’ and inserting 

7 ‘‘June 30, 2004’’. 

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

9 subsection (a) shall apply to individuals who begin work 

10 for the employer after December 31, 2003. 

11 SEC. 105. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLE12 TION FOR OIL AND NATURAL GAS PRODUCED 

13 FROM MARGINAL PROPERTIES. 

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

15 613A(c)(6) is amended—

16 (1) by striking ‘‘January 1, 2004’’ and insert17 ing ‘‘July 1, 2004’’, and 

18 (2) by adding at the end the following new sen19 tence: ‘‘In the case of any taxable year beginning 

20 after December 31, 2003, which includes June 30, 

21 2004, any increase in the allowance for depletion by 

22 reason of this subparagraph shall be equal to the 

23 amount which bears the same ratio to the increase 

24 in such allowance determined without regard to this 

25 sentence as the number of days in the taxable year 
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1 before July 1, 2004, bears to the total number of 

2 days in such taxable year.’’. 

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

4 subsection (a) shall apply to taxable years beginning after 

5 December 31, 2003. 

6 SEC. 106. QUALIFIED ZONE ACADEMY BONDS. 

7 (a) IN GENERAL.—Paragraph (1) of section 

8 1397E(e) is amended by inserting ‘‘$200,000,000 for the 

9 period beginning after December 31, 2003, and before 

10 July 1, 2004,’’ after ‘‘2003,’’. 

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

12 subsection (a) shall apply to obligations issued after De13 cember 31, 2003. 

14 SEC. 107. COVER OVER OF TAX ON DISTILLED SPIRITS. 

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

16 is amended by striking ‘‘January 1, 2004’’ and inserting 

17 ‘‘July 1, 2004’’. 

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

19 subsection (a) shall apply to articles brought into the 

20 United States after December 31, 2003. 

21 SEC. 108. DEDUCTION FOR CORPORATE DONATIONS OF 

22 COMPUTER TECHNOLOGY. 

23 (a) EXTENSION OF DEDUCTION.—Section 

24 170(e)(6)(G) (relating to termination) is amended by 

25 striking ‘‘contribution made during any taxable year be-
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1 ginning after December 31, 2003’’ and inserting ‘‘con2 tribution made after June 30, 2004’’. 

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

4 subsection (a) shall apply to contributions made after De5 cember 31, 2003. 

6 SEC. 109. CREDIT FOR QUALIFIED ELECTRIC VEHICLES. 

7 (a) IN GENERAL.—Section 30 is amended—

8 (1) in subsection (b)(2)—

9 (A) by striking ‘‘December 31, 2003,’’ and 

10 inserting ‘‘June 30, 2004,’’, 

11 (B) in subparagraph (A), by striking ‘‘cal12 endar year 2004’’ and inserting ‘‘after June 30, 

13 2004, and before July 1, 2005’’, 

14 (C) in subparagraph (B), by striking ‘‘cal15 endar year 2005’’ and inserting ‘‘after June 30, 

16 2005, and before July 1, 2006’’, and 

17 (D) in subparagraph (C), by striking ‘‘cal18 endar year 2006’’ and inserting ‘‘after June 30, 

19 2006, and before July 1, 2007’’, and 

20 (2) in subsection (e), by striking ‘‘December 31, 

21 2006’’ and inserting ‘‘June 30, 2007’’. 

22 (b) CONFORMING AMENDMENT.—Clause (iii) of sec23 tion 280F(a)(1)(C) is amended by striking ‘‘January 1, 

24 2007’’ and inserting ‘‘July 1, 2007’’.
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2003. 

4 SEC. 110. DEDUCTION FOR CLEAN-FUEL VEHICLES AND 

5 CERTAIN REFUELING PROPERTY. 

6 (a) IN GENERAL.—Section 179A is amended—

7 (1) in subsection (b)(1)(B)—

8 (A) by striking ‘‘December 31, 2003,’’ and 

9 inserting ‘‘June 30, 2004,’’, 

10 (B) in clause (i), by striking ‘‘calendar 

11 year 2004’’ and inserting ‘‘after June 30, 2004, 

12 and before July 1, 2005’’, 

13 (C) in clause (ii), by striking ‘‘calendar 

14 year 2005’’ and inserting ‘‘after June 30, 2005, 

15 and before July 1, 2006’’, and 

16 (D) in clause (iii), by striking ‘‘calendar 

17 year 2006’’ and inserting ‘‘after June 30, 2006, 

18 and before July 1, 2007’’, and 

19 (2) in subsection (f), by striking ‘‘December 31, 

20 2006’’ and inserting ‘‘June 30, 2007’’. 

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

22 subsection (a) shall apply to property placed in service 

23 after December 31, 2003. 
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1 SEC. 111. DEDUCTION FOR CERTAIN EXPENSES OF SCHOOL 

2 TEACHERS. 

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

4 62(a)(2) is amended—

5 (1) by inserting ‘‘and the period beginning after 

6 December 31, 2003, and before July 1, 2004,’’ after 

7 ‘‘2003,’’, and 

8 (2) by inserting ‘‘for each taxable year or $125 

9 for such period’’ after ‘‘$250’’. 

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

11 subsection (a) shall apply to expenses paid or incurred 

12 after December 31, 2003. 

13 SEC. 112. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS. 

14 (a) IN GENERAL.—Paragraphs (2) and (3)(B) of sec15 tion 220(i) (defining cut-off year) are each amended by 

16 striking ‘‘2003’’ each place it appears and inserting 

17 ‘‘2004’’. 

18 (b) CONFORMING AMENDMENTS.—

19 (1) Paragraph (2) of section 220(j) is amended 

20 by striking ‘‘1998, 1999, 2001, or 2002’’ each place 

21 it appears and inserting ‘‘1998, 1999, 2001, 2002, 

22 or 2003’’. 

23 (2) Subparagraph (A) of section 220(j)(4) is 

24 amended by striking ‘‘and 2002’’ and inserting 

25 ‘‘2002, and 2003’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on January 1, 2004. 

3 SEC. 113. EXPENSING OF ENVIRONMENTAL REMEDIATION 

4 COSTS. 

5 (a) EXTENSION OF TERMINATION DATE.—Sub6 section (h) of section 198 is amended by striking ‘‘Decem7 ber 31, 2003’’ and inserting ‘‘June 30, 2004’’. 

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

9 subsection (a) shall apply to expenditures paid or incurred 

10 after December 31, 2003. 

11 SEC. 114. EXPANSION OF WOTC TO NEW YORK LIBERTY 

12 ZONE. 

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

14 1400L(a)(2)(D)(iv) is amended by inserting ‘‘or the pe15 riod beginning after December 31, 2003, and before July 

16 1, 2004’’ after ‘‘2003’’. 

17 (b) CONFORMING AMENDMENT.—Subclause (II) of 

18 section 1400L(a)(2)(D)(iv) is amended by inserting ‘‘or 

19 period described in subclause (I)’’ after ‘‘year’’. 

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

21 this section shall apply to individuals who begin work for 

22 the employer after December 31, 2003. 
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1 SEC. 115. TEMPORARY SPECIAL RULES FOR TAXATION OF 

2 LIFE INSURANCE COMPANIES. 

3 (a) IN GENERAL.—Subsection (j) of section 809 is 

4 amended by striking ‘‘or 2003’’ and inserting ‘‘2003, or 

5 2004’’. 

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

7 subsection (a) shall apply to taxable years beginning after 

8 December 31, 2003. 

9 SEC. 116. TAX INCENTIVES FOR INVESTMENT IN THE DIS10 TRICT OF COLUMBIA. 

11 (a) DESIGNATION OF ZONE.—Subsection (f) of sec12 tion 1400 is amended by striking ‘‘December 31, 2003’’ 

13 both places it appears and inserting ‘‘June 30, 2004’’. 

14 (b) TAX-EXEMPT ECONOMIC DEVELOPMENT

15 BONDS.—Subsection (b) of section 1400A is amended by 

16 striking ‘‘December 31, 2003’’ and inserting ‘‘June 30, 

17 2004’’. 

18 (c) ZERO PERCENT CAPITAL GAINS RATE.—

19 (1) IN GENERAL.—Subsection (b) of section 

20 1400B is amended by striking ‘‘January 1, 2004’’ 

21 each place it appears and inserting ‘‘July 1, 2004’’. 

22 (2) CONFORMING AMENDMENTS.—

23 (A) Section 1400B(e)(2) is amended—

24 (i) by striking ‘‘December 31, 2008’’ 

25 and inserting ‘‘June 30, 2009’’, and 
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1 (ii) by striking ‘‘2008’’ in the heading 

2 and inserting ‘‘JUNE 2009’’. 

3 (B) Section 1400B(g)(2) is amended by 

4 striking ‘‘December 31, 2008’’ and inserting 

5 ‘‘June 30, 2009’’. 

6 (C) Section 1400F(d) is amended by strik7 ing ‘‘December 31, 2008’’ and inserting ‘‘June 

8 30, 2009’’. 

9 (d) FIRST-TIME HOMEBUYER CREDIT.—Subsection 

10 (i) of section 1400C is amended by striking ‘‘January 1, 

11 2004’’ and inserting ‘‘July 1, 2004’’. 

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

13 this section shall take effect on January 1, 2004. 

14 SEC. 117. COMBINED EMPLOYMENT TAX REPORTING PRO15 GRAM. 

16 (a) IN GENERAL.—Paragraph (1) of section 976(b) 

17 of the Taxpayer Relief Act of 1997 is amended by striking 

18 ‘‘for a period ending with the date which is 5 years after 

19 the date of the enactment of this Act’’ and inserting ‘‘dur20 ing the period ending before July 1, 2004’’. 

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

22 subsection (a) shall apply to disclosures on or after the 

23 date of the enactment of this Act.
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1 TITLE II—REVENUE PROVISIONS 

2 SEC. 201. ADDITION OF VACCINES AGAINST HEPATITIS A 

3 TO LIST OF TAXABLE VACCINES. 

4 (a) IN GENERAL.—Section 4132(a)(1) (defining tax5 able vaccine) is amended by redesignating subparagraphs 

6 (I), (J), (K), and (L) as subparagraphs (J), (K), (L), and 

7 (M), respectively, and by inserting after subparagraph (H) 

8 the following new subparagraph: 

9 ‘‘(I) Any vaccine against hepatitis A.’’. 

10 (b) CONFORMING AMENDMENT.—Section 

11 9510(c)(1)(A) is amended by striking ‘‘October 18, 2000’’ 

12 and inserting ‘‘the date of the enactment of the Tax Relief 

13 Extension Act of 2003’’. 

14 (c) EFFECTIVE DATE.—

15 (1) SALES, ETC.—The amendments made by 

16 this section shall apply to sales and uses on or after 

17 the first day of the first month which begins more 

18 than 4 weeks after the date of the enactment of this 

19 Act. 

20 (2) DELIVERIES.—For purposes of paragraph 

21 (1) and section 4131 of the Internal Revenue Code 

22 of 1986, in the case of sales on or before the effec23 tive date described in such paragraph for which de24 livery is made after such date, the delivery date shall 

25 be considered the sale date. 
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1 SEC. 202. ADDITION OF VACCINES AGAINST INFLUENZA TO 

2 LIST OF TAXABLE VACCINES. 

3 (a) IN GENERAL.—Section 4132(a)(1) (defining tax4 able vaccine), as amended by this Act, is amended by add5 ing at the end the following new subparagraph: 

6 ‘‘(N) Any trivalent vaccine against influ7 enza.’’. 

8 (b) EFFECTIVE DATE.—

9 (1) SALES, ETC.—The amendment made by this 

10 section shall apply to sales and uses on or after the 

11 later of—

12 (A) the first day of the first month which 

13 begins more than 4 weeks after the date of the 

14 enactment of this Act, or 

15 (B) the date on which the Secretary of 

16 Health and Human Services lists any vaccine 

17 against influenza for purposes of compensation 

18 for any vaccine-related injury or death through 

19 the Vaccine Injury Compensation Trust Fund. 

20 (2) DELIVERIES.—For purposes of paragraph 

21 (1) and section 4131 of the Internal Revenue Code 

22 of 1986, in the case of sales on or before the effec23 tive date described in such paragraph for which de24 livery is made after such date, the delivery date shall 

25 be considered the sale date. 
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1 SEC. 203. EXTENSION OF TRANSFERS OF EXCESS PENSION 

2 ASSETS TO RETIREE HEALTH ACCOUNTS. 

3 (a) AMENDMENT OF INTERNAL REVENUE CODE OF

4 1986.—Paragraph (5) of section 420(b) (relating to expi5 ration) is amended by striking ‘‘December 31, 2005’’ and 

6 inserting ‘‘December 31, 2013’’. 

7 (b) AMENDMENTS OF ERISA.—

8 (1) Section 101(e)(3) of the Employee Retire9 ment Income Security Act of 1974 (29 U.S.C. 

10 1021(e)(3)) is amended by striking ‘‘Tax Relief Ex11 tension Act of 1999’’ and inserting ‘‘Tax Relief Ex12 tension Act of 2003’’. 

13 (2) Section 403(c)(1) of such Act (29 U.S.C. 

14 1103(c)(1)) is amended by striking ‘‘Tax Relief Ex15 tension Act of 1999’’ and inserting ‘‘Tax Relief Ex16 tension Act of 2003’’. 

17 (3) Paragraph (13) of section 408(b) of such 

18 Act (29 U.S.C. 1108(b)(3)) is amended—

19 (A) by striking ‘‘January 1, 2006’’ and in20 serting ‘‘January 1, 2014’’, and 

21 (B) by striking ‘‘Tax Relief Extension Act 

22 of 1999’’ and inserting ‘‘Tax Relief Extension 

23 Act of 2003’’. 
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1 SEC. 204. EXTENSION OF IRS USER FEES. 

2 (a) IN GENERAL.—Section 7528(c) (relating to ter3 mination) is amended by striking ‘‘December 31, 2004’’ 

4 and inserting ‘‘December 31, 2011’’. 

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

6 this section shall apply to requests after the date of the 

7 enactment of this Act.

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