Cut Taxes for the Middle Class Act of 2014

To amend the Internal Revenue Code of 1986 to extend certain expiring provisions for 1 year. 1. Short title; table of contents (a) Short title This Act may be cited as the Cut Taxes for the Middle Class Act of 2014 (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—State and local sales tax deduction Sec. 101. Extension of deduction of State and local general sales taxes. Title II—Provisions relating to education tax benefits Sec. 201. Extension of above-the-line deduction for qualified tuition and related expenses. Sec. 202. Extension of deduction for certain expenses of elementary and secondary school teachers. Title III—Provisions relating to members of the Armed Forces Sec. 301. Extension of housing allowance exclusion for determining area median gross income for low-income housing credit and qualified residential rental project exempt facility bonds. Sec. 302. Extension of employer wage credit for employees who are active duty members of the uniformed services. Title IV—Provisions relating to businesses Sec. 401. Extension of work opportunity tax credit. Sec. 402. Extension of new markets tax credit. Sec. 403. Extension and modification of research credit. I State and local sales tax deduction 101. Extension of deduction of State and local general sales taxes (a) In general Subparagraph (I) of section 164(b)(5) January 1, 2014 January 1, 2015 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. II Provisions relating to education tax benefits 201. Extension of above-the-line deduction for qualified tuition and related expenses (a) In general Subsection (e) of section 222 December 31, 2013 December 31, 2014 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. 202. Extension of deduction for certain expenses of elementary and secondary school teachers (a) In general Subparagraph (D) of section 62(a)(2) or 2013 2013, or 2014 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. III Provisions relating to members of the Armed Forces 301. Extension of housing allowance exclusion for determining area median gross income for low-income housing credit and qualified residential rental project exempt facility bonds (a) In general Subsection (b) of section 3005 of the Housing Assistance Tax Act of 2008 is amended by striking January 1, 2014 January 1, 2015 (b) Effective date The amendment made by this section shall take effect as if included in the enactment of section 3005 of the Housing Assistance Tax Act of 2008. 302. Extension of employer wage credit for employees who are active duty members of the uniformed services (a) In general Subsection (f) of section 45P December 31, 2013 December 31, 2014 (b) Effective date The amendment made by this section shall apply to payments made after December 31, 2013. IV Provisions relating to businesses 401. Extension of work opportunity tax credit (a) In general Subparagraph (B) of section 51(c)(4) December 31, 2013 December 31, 2014 (b) Effective date The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2013. 402. Extension of new markets tax credit (a) In general Subparagraph (G) of section 45D(f)(1) and 2013 2013, and 2014 (b) Carryover of unused limitation Paragraph (3) of section 45D(f) of such Code is amended by striking 2018 2019 (c) Effective date The amendments made by this section shall apply to calendar years beginning after December 31, 2013. 403. Extension and modification of research credit (a) In general Subparagraph (B) of section 41(h)(1) December 31, 2013 December 31, 2014 (b) Conforming amendment Subparagraph (D) of section 45C(b)(1) of such Code is amended by striking December 31, 2013 December 31, 2014 (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2013.

Summary: Cut Taxes for the Middle Class Act of 2014 - Amends the Internal Revenue Code to extend through 2014: (1) the tax deduction for state and local general sales taxes in lieu of state and local income taxes, (2) the tax deduction for qualified tuition and related expenses, (3) the tax deduction for expenses of elementary and secondary school teachers, (4) the tax credit for differential wage payments to employees who are active duty members of the Uniformed Services, (5) the work opportunity tax credit, (6) the new markets tax credit, and (7) the tax credit for increasing research activities. Amends the Housing Assistance Tax Act of 2008 to extend through 2014 the exemption of the basic military housing allowance from the income test for programs financed by tax-exempt housing bonds.