Tax Relief Extension Act of 2015

To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. 1. Short title, etc (a) Short title This Act may be cited as the Tax Relief Extension Act of 2015 (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 that expired in 2014 Subtitle A—Individual tax extenders Sec. 101. Extension and modification of deduction for certain expenses of elementary and secondary school teachers. Sec. 102. Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness. Sec. 103. Extension of parity and modification of exclusion from income for employer-provided mass transit and parking benefits. Sec. 104. Extension of mortgage insurance premiums treated as qualified residence interest. Sec. 105. Extension of deduction of State and local general sales taxes. Sec. 106. Extension of special rule for contributions of capital gain real property made for conservation purposes. Sec. 107. Extension of above-the-line deduction for qualified tuition and related expenses. Sec. 108. 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 and modification 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 and modification 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 and modification 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 new qualified fuel cell motor vehicles. Sec. 153. Extension of credit for alternative fuel vehicle refueling property. Sec. 154. Extension of second generation biofuel producer credit. Sec. 155. Extension and reform of biodiesel tax incentives. Sec. 156. Extension of production credit for Indian coal facilities placed in service before 2009. Sec. 157. Extension of credits with respect to facilities producing energy from certain renewable resources. Sec. 158. Extension of credit for energy-efficient new homes. Sec. 159. Extension of special allowance for second generation biofuel plant property. Sec. 160. Extension and modification of energy efficient commercial buildings deduction. Sec. 161. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities. Sec. 162. Extension of excise tax credits relating to alternative fuels. TITLE II—Provision that expired in 2013 Sec. 201. Extension of credit for 2-wheeled plug-in electric vehicles. TITLE III—Revenue provisions Sec. 301. Exclusion from gross income of certain clean coal power grants to non-corporate taxpayers. Sec. 302. Treatment of certain persons as employers with respect to motion picture projects. Sec. 303. Equalization of excise tax and credits with respect to liquefied petroleum gas and liquefied natural gas. Sec. 304. Additional information on returns relating to mortgage interest. TITLE IV—Budgetary effects Sec. 401. Budgetary effects. 2. Sense of the Senate It is the sense of the Senate that— (1) Congress should pursue a process of comprehensive tax reform; (2) Congress should endeavor, as part of such 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; and (3) a major focus of such tax reform process should be fostering economic growth and lowering tax rates by broadening the tax base. I Provisions that expired in 2014 A Individual tax extenders 101. Extension and modification of deduction for certain expenses of elementary and secondary school teachers (a) In general Subparagraph (D) of section 62(a)(2) or 2014 2014, 2015, or 2016 (b) Adjustment for inflation Subparagraph (D) of section 62(a)(2), as amended by subsection (a), is amended— (1) by striking teachers teachers (i) In general In the case of , and (2) by adding at the end the following new clause: (ii) Adjustment for inflation In the case of any taxable year beginning after 2014, the $250 amount in clause (i) shall 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 2013 calendar year 1992 If any amount as increased under the preceding sentence is not a multiple of $25, such amount shall be rounded to the nearest multiple of $25. . (c) Inclusion of professional development expenses Clause (i) of section 62(a)(2)(D), as amended by subsections (a) and (b), is amended by striking the period at the end and inserting , and in connection with professional development activities of such educator. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 102. Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness (a) Extension Subparagraph (E) of section 108(a)(1) January 1, 2015 January 1, 2017 (b) Modification Subparagraph (E) of section 108(a)(1), as amended by subsection (a), is amended by striking discharged before (i) before January 1, 2017, or (ii) subject to an arrangement that is entered into and evidenced in writing before January 1, 2017. . (c) Effective date The amendments made by this section shall apply to discharges of indebtedness after December 31, 2014. 103. 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) January 1, 2015 January 1, 2017 (2) Effective date The amendment made by this subsection shall apply to months after December 31, 2014. (b) Use of a bike share program as a qualified transportation fringe (1) In general Section 132(f)(5)(F) (A) in clause (i), by striking repair, and storage, if such bicycle repair, and storage (or use of a bike sharing program, in the case of taxable years beginning before January 1, 2017), if such bicycle or bike sharing program (B) in clause (iii)(I), by inserting or bike sharing program bicycle (2) Effective date The amendments made by this subsection shall apply to months after December 31, 2014. 104. Extension of mortgage insurance premiums treated as qualified residence interest (a) In general Subclause (I) of section 163(h)(3)(E)(iv) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to amounts paid or accrued after December 31, 2014. 105. Extension of deduction of State and local general sales taxes (a) In general Subparagraph (I) of section 164(b)(5) January 1, 2015 January 1, 2017 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 106. 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) December 31, 2014 December 31, 2016 (b) Contributions by certain corporate farmers and ranchers Clause (iii) of section 170(b)(2)(B) December 31, 2014 December 31, 2016 (c) Effective date The amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2014. 107. Extension of above-the-line deduction for qualified tuition and related expenses (a) In general Subsection (e) of section 222 December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 108. Extension of tax-free distributions from individual retirement plans for charitable purposes (a) In general Subparagraph (F) of section 408(d)(8) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2014. B Business tax extenders 111. Extension and modification of research credit (a) Extension (1) In general Paragraph (1) of section 41(h) December 31, 2014 December 31, 2016 (2) Effective date The amendment made by this subsection shall apply to amounts paid or incurred after December 31, 2014. (b) Treatment of research credit for certain startup companies (1) In general Section 41 (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 (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 entity (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 (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, 2014. (c) Credit allowed against alternative minimum tax (1) In general Subparagraph (B) of section 38(c)(4) (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, 2014, and to carrybacks of such credits. 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) January 1, 2015 January 1, 2017 (b) Temporary minimum credit rate for non-federally subsidized existing buildings Subsection (b) of section 42 (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 Tax Relief Extension Act of 2015 (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, 2015. 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, 2015 January 1, 2017 (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. 114. Extension of Indian employment tax credit (a) In general Subsection (f) of section 45A December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 115. Extension and modification of new markets tax credit (a) In general Paragraph (1) of section 45D(f) , and (H) $3,940,000,000 for 2015 and 2016. . (b) Carryover of unused limitation Paragraph (3) of section 45D(f) 2019 2021 (c) Effective date The amendments made by this section shall apply to calendar years beginning after December 31, 2014. 116. Extension and modification of railroad track maintenance credit (a) In general Subsection (f) of section 45G January 1, 2015 January 1, 2017 (b) Expenditures Subsection (d) of section 45G January 1, 2005, January 1, 2015 (January 1, 2005, in the case of expenditures in taxable years beginning after December 31, 2004, and before January 1, 2015) (c) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2014. 117. Extension of mine rescue team training credit (a) In general Subsection (e) of section 45N December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014. 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 December 31, 2014 December 31, 2016 (b) Applicability to all employers (1) In general Subsection (a) of section 45P , in the case of an eligible small business employer (2) Conforming amendment Paragraph (3) of section 45P(b) (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 20 percent of the sum the sum (d) Effective date The amendments made by this section shall apply to payments made after December 31, 2014. 119. Extension and modification of work opportunity tax credit (a) In general Paragraph (4) of section 51(c) December 31, 2014 December 31, 2016 (b) Credit for hiring long-term unemployment recipients (1) In general Paragraph (1) of section 51(d) or , or (J) a qualified long-term unemployment recipient. . (2) Qualified long-term unemployment recipient Subsection (d) of section 51 (15) Qualified long-term unemployment recipient The term qualified long-term unemployment recipient (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, 2014. 120. Extension and modification of qualified zone academy bonds (a) Extension Paragraph (1) of section 54E(c) and 2014 2014, 2015, and 2016 (b) Reduction of private business contribution requirement Subsection (b) of section 54E 10 percent 5 percent (c) Effective date The amendments made by this section shall apply to obligations issued after December 31, 2014. 121. Extension of classification of certain race horses as 3-year property (a) In general Clause (i) of section 168(e)(3)(A) (1) by striking January 1, 2015 January 1, 2017 (2) by striking December 31, 2014 December 31, 2016 (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 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, 2015 January 1, 2017 (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 123. Extension of 7-year recovery period for motorsports entertainment complexes (a) In general Subparagraph (D) of section 168(i)(15) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 124. Extension and modification of accelerated depreciation for business property on an Indian reservation (a) In general Paragraph (8) of section 168(j) December 31, 2014 December 31, 2016 (b) Election to have special rules not apply Subsection (j) of section 168 (8) Election out If a taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year. Such election, once made, shall be irrevocable. . (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 125. Extension of bonus depreciation (a) In general Paragraph (2) of section 168(k) (1) by striking January 1, 2016 January 1, 2018 (2) by striking January 1, 2015 January 1, 2017 (b) Special rule for Federal long-Term contracts Clause (ii) of section 460(c)(6)(B) January 1, 2015 (January 1, 2016 January 1, 2017 (January 1, 2018 (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) January 1, 2015 January 1, 2017 (2) Round 5 extension property Paragraph (4) of section 168(k) (L) Special rules for round 5 extension property (i) In general In the case of round 5 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 5 extension property. (ii) Election (I) A taxpayer who has an election in effect under this paragraph for round 4 extension property shall be treated as having an election in effect for round 5 extension property unless the taxpayer elects to not have this paragraph apply to round 5 extension property. (II) A taxpayer who does not have an election in effect under this paragraph for round 4 extension property may elect to have this paragraph apply to round 5 extension property. (iii) Round 5 extension property For purposes of this subparagraph, the term round 5 extension property Tax Relief Extension Act of 2015 . (d) Conforming amendments (1) The heading for subsection (k) of section 168 January 1, 2015 January 1, 2017 (2) The heading for clause (ii) of section 168(k)(2)(B) pre-January 1, 2015 pre-January 1, 2017 (3) Subparagraph (C) of section 168(n)(2) January 1, 2015 January 1, 2017 (4) Subparagraph (D) of section 1400L(b)(2) January 1, 2015 January 1, 2017 (5) Subparagraph (B) of section 1400N(d)(3) January 1, 2015 January 1, 2017 (e) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014, in taxable years ending after such date. 126. Extension of enhanced charitable deduction for contributions of food inventory (a) In general Clause (iv) of section 170(e)(3)(C) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to contributions made after December 31, 2014. 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) (A) by striking 2015 2017 (B) by striking 2014 2016 (2) Reduction in limitation Section 179(b)(2) (A) by striking 2015 2017 (B) by striking 2014 2016 (b) Computer software Section 179(d)(1)(A)(ii) 2015 2017 (c) Election Section 179(c)(2) 2015 2017 (d) Special rules for treatment of qualified real property (1) In general Section 179(f)(1) 2015 2017 (2) Carryover limitation (A) In general Section 179(f)(4) 2014 2016 (B) Conforming amendment The heading of subparagraph (C) of section 179(f)(4) and 2013 2013, 2014, and 2015 (e) Adjustment for inflation Subsection (b) of section 179 (6) Inflation adjustment (A) In general In the case of any taxable year beginning after 2014, 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 2013 calendar year 1992 (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, 2014. 128. Extension of election to expense mine safety equipment (a) In general Subsection (g) of section 179E December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 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 December 31, 2014 December 31, 2016 (b) Application to live productions (1) In general Paragraph (1) of section 181(a) , and any qualified live theatrical production, any qualified film or television production (2) Conforming amendments Section 181 (A) by inserting or any qualified live theatrical production qualified film or television production (B) by inserting or qualified live theatrical productions qualified film or television productions (C) by inserting and live theatrical film and television (3) Clerical amendment The item relating to section 181 in the table of sections for part VI of subchapter B of chapter 1 Sec. 181. Treatment of certain qualified film and television and live theatrical productions. . (c) Qualified live theatrical production Section 181 (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 (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 (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) Seasonal productions (i) In general In the case of a live staged production not described in subparagraph (B) which is produced or presented by a taxable entity for not more than 10 weeks of the taxable year, subparagraph (A) shall be applied by substituting 6,500 3,000 (ii) Short taxable years For purposes of clause (i), in the case of any taxable year of less than 12 months, the number of weeks for which a production is produced or presented shall be annualized by multiplying the number of weeks the production is produced or presented during such taxable year by 12 and dividing the result by the number of months in such taxable year. (E) 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, 2014. (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. 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) (1) by striking first 9 taxable years first 11 taxable years (2) by striking January 1, 2015 January 1, 2017 (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 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) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to payments received or accrued after December 31, 2014. 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, 2014 December 31, 2016 (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 133. Extension of RIC qualified investment entity treatment under FIRPTA (a) In general Clause (ii) of section 897(h)(4)(A) December 31, 2014 December 31, 2016 (b) Effective date (1) In general The amendment made by this section shall take effect on January 1, 2015. Notwithstanding the preceding sentence, such amendment shall not apply with respect to the withholding requirement under section 1445 (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, 2014, 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. 134. Extension of subpart F exception for active financing income (a) Exempt insurance income Paragraph (10) of section 953(e) (1) by striking January 1, 2015 January 1, 2017 (2) by striking December 31, 2014 December 31, 2016 (b) Special rule for income derived in the active conduct of banking, financing, or similar businesses Paragraph (9) of section 954(h) January 1, 2015 January 1, 2017 (c) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders with or within which any such taxable year of such foreign corporation ends. 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) January 1, 2015 January 1, 2017 (b) Effective date The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end. 136. Extension of temporary exclusion of 100 percent of gain on certain small business stock (a) In general Paragraph (4) of section 1202(a) (1) by striking January 1, 2015 January 1, 2017 (2) by striking and 2014 2014, 2015, and 2016 (b) Effective date The amendments made by this section shall apply to stock acquired after December 31, 2014. 137. Extension of basis adjustment to stock of S corporations making charitable contributions of property (a) In general Paragraph (2) of section 1367(a) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2014. 138. Extension of reduction in S-corporation recognition period for built-in gains tax (a) In general Subparagraph (C) of section 1374(d)(7) (1) by striking or 2014 2014, 2015, or 2016 (2) by striking and 2014 2014, 2015, and 2016 (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 139. Extension and modification of empowerment zone tax incentives (a) In general (1) Extension Clause (i) of section 1391(d)(1)(A) December 31, 2014 December 31, 2016 (2) 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) (3) Effective date The amendment made by this subsection shall apply to periods after December 31, 2014. (b) Modification Clause (i) of section 1394(b)(3)(B) (1) by striking References (I) In general Except as provided in subclause (II), references , and (2) by adding at the end the following new subclause: (II) Special rule for employee residence test For purposes of subsection (b)(6) and (c)(5) of section 1397C, an employee shall be treated as a resident of an empowerment zone if such employee is a resident of an empowerment zone, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction. . (c) Definitions (1) Qualified low-income community Paragraph (3) of section 1394(b) (C) Qualified low-income community For purposes of subparagraph (B)— (i) In general The term qualified low-income community (I) the poverty rate for such tract is at least 20 percent, or (II) the median family income for such tract does not exceed 80 percent of statewide median family income (or, in the case of a tract located within a metropolitan area, metropolitan area median family income if greater). Subclause (II) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States. (ii) Targeted populations The Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994) may be treated as qualified low-income communities. (iii) Areas not within census tracts In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income. (iv) Modification of income requirement for census tracts within high migration rural counties (I) In general In the case of a population census tract located within a high migration rural county, clause (i)(II) shall be applied to areas not located within a metropolitan area by substituting 85 percent 80 percent (II) High migration rural county For purposes of this clause, the term high migration rural county . (2) Applicable nominating jurisdiction Subparagraph (D) of section 1394(b)(3), as redesignated by paragraph (1), is amended by adding at the end the following new clause: (iii) Applicable nominating jurisdiction The term applicable nominating jurisdiction . (d) Conforming amendments (1) Clause (iii) of section 1394(b)(3)(B) or an enterprise community , an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction (2) Subparagraph (D) of section 1394(b)(3), as redesignated by subsection (c)(1), is amended by striking Definitions Other definitions (e) Effective date The amendments made by subsections (b), (c), and (d) shall apply to bonds issued before, on, or after the date of the enactment of this Act and not redeemed before the date of the enactment of this Act. 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) January 1, 2015 January 1, 2017 (b) Effective date The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2014. 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, 2015 January 1, 2017 (2) by striking first 9 taxable years first 11 taxable years (3) by striking first 3 taxable years first 5 taxable years (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. C Energy tax extenders 151. Extension and modification of credit for nonbusiness energy property (a) In general Paragraph (2) of section 25C(g) December 31, 2014 December 31, 2016 (b) Updated Energy Star requirements for windows, doors, skylights, and roofing (1) In general Paragraph (1) of section 25C(c) which meets requirements) (2) Energy efficient building envelope component Subsection (c) of section 25C (2) Energy efficient building envelope component The term energy efficient building envelope component (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) 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) For purposes of subparagraph (D)(i), the term storage water heater . (d) Modification of testing standards for biomass stoves Subparagraph (E) of section 25C(d)(3) , 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) 95 95 (90 in the case of an oil hot water boiler) (f) Installation costs for qualified energy efficiency improvements Paragraph (1) of subsection (c) of section 25C Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the component. . (g) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 152. Extension of credit for new qualified fuel cell motor vehicles (a) In general Paragraph (1) of section 30B(k) December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to property purchased after December 31, 2014. 153. Extension of credit for alternative fuel vehicle refueling property (a) In general Subsection (g) of section 30C December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 154. Extension of second generation biofuel producer credit (a) In general Clause (i) of section 40(b)(6)(J) January 1, 2015 January 1, 2017 (b) Effective date The amendment made by this subsection shall apply to qualified second generation biofuel production after December 31, 2014. 155. Extension and reform of biodiesel tax incentives (a) Income tax credit (1) Extension (A) Credits for biodiesel and renewable diesel used as fuel Subsection (g) of section 40A December 31, 2014 December 31, 2016 (B) Effective date The amendment made by this paragraph shall apply to fuel sold or used after December 31, 2014. (2) Reform of income tax credit (A) In general So much of section 40A as precedes subsection (c) is amended to read as follows: 40A. Biodiesel fuels credit (a) In general For purposes of section 38, in the case of an eligible taxpayer, the biodiesel fuels credit determined under this section for the taxable year is $1.00 for each gallon of biodiesel produced by the taxpayer which during the taxable year— (1) is sold by the producer of such biodiesel to another person— (A) for use by such other person’s trade or business as a fuel or in the production of a biodiesel mixture (other than casual off-farm production), or (B) who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person, or (2) is used by such producer for any purpose described in paragraph (1). (b) Increased credit for small producers (1) In general In the case of any eligible small biodiesel producer, subsection (a) shall be applied by increasing the dollar amount contained therein by 10 cents. (2) Limitation Paragraph (1) shall only apply with respect to the first 15,000,000 gallons of biodiesel produced by any eligible small biodiesel producer during any taxable year. . (B) Definitions and special rules Section 40A(d) (2) Eligible taxpayer (A) In general The term eligible taxpayer (B) Special rule for eligible discretionary blenders For purposes of this section (other than subsection (b)), an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if— (i) the producer of such biodiesel (determined without regard to this subparagraph)— (I) did not pay the tax imposed under section 4081 with respect to such gallon, and (II) assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the Secretary, and (ii) such eligible discretionary blender pays the tax imposed under section 4081 with respect to such gallon. For purposes of the preceding sentence, an eligible discretionary blender shall be treated as producing a gallon of biodiesel in the taxable year in which the sale or use of the qualified biodiesel mixture occurs. (C) Eligible discretionary blender For purposes of subparagraph (B), the term eligible discretionary blender (i) is registered under section 4101 as a blender of qualified biodiesel mixtures, and (ii) has used 10,000,000 or more gallons of biodiesel in the production of qualified biodiesel mixtures in the preceding taxable year. (3) Biodiesel mixture; qualified biodiesel mixture (A) Biodiesel mixture The term biodiesel mixture (B) Qualified biodiesel mixture (i) In general The term qualified biodiesel mixture (I) sold by such eligible discretionary blender to any person for use as a fuel, or (II) used by such eligible discretionary blender as a fuel. (ii) Sale or use must be in trade or business, etc A biodiesel mixture shall not be treated as a qualified biodiesel mixture unless the sale or use described in clause (i) is in a trade or business of the eligible discretionary blender. (4) Biodiesel not used for a qualified purpose If— (A) any credit was determined with respect to any biodiesel under this section, and (B) any person uses such biodiesel for a purpose not described in subsection (a), then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (a) and the number of gallons of such biodiesel. (5) Pass-thru in the case of estates and trusts Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. (6) Limitation to biodiesel with connection to the united states No credit shall be determined under subsection (a) with respect to biodiesel unless such biodiesel is produced in the United States. For purposes of this paragraph, the term United States . (C) Rules for small biodiesel producers (i) In general Section 40A(e) (I) by striking agri-biodiesel biodiesel (II) by striking subsection (b)(4)(C) subsection (b)(2) (III) by striking subsection (a)(3) subsection (b) (ii) The heading for subsection (e) of section 40A agri-biodiesel biodiesel (iii) The headings for paragraphs (1) and (6) of section 40A(e) are each amended by striking agri-biodiesel biodiesel (D) Conforming amendments related to renewable diesel Section 40A(f) (i) by striking Subsection (b)(4) Subsection (b) (ii) by striking paragraph (4) and inserting the following: (4) Certain aviation fuel Except as provided in the last 3 sentences of paragraph (2), the term renewable diesel . (E) Registration of eligible discretionary blenders Section 4101(a)(1) (i) by striking and every person producing second generation biofuel (ii) by inserting , and every person producing qualified biodiesel mixtures (as defined in section 40A(d)(3)) section 40(b)(6)(E)) in excess of 10,000,000 gallons per year (F) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 Sec. 40A. Biodiesel fuels credit. . (G) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2015. (b) Excise tax incentives (1) Extension (A) In general Paragraph (6) of section 6426(c) December 31, 2014 December 31, 2016 (B) Payments Subparagraph (B) of section 6427(e)(6) December 31, 2014 December 31, 2016 (C) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2014. (D) Special rule for certain periods during 2015 Notwithstanding any other provision of law, in the case of any biodiesel mixture credit properly determined under section 6426(c) (2) Reform of excise tax credit (A) In general Subsection (c) of section 6426 (i) by striking all that precedes paragraph (6) and inserting the following: (c) Biodiesel production credit (1) In general For purposes of this section, in the case of an eligible taxpayer, the biodiesel production credit is $1.00 for each gallon of biodiesel produced by the taxpayer and which— (A) is sold by such producer to another person— (i) for use by such other person’s trade or business as a fuel or in the production of a biodiesel mixture (other than casual off-farm production), or (ii) who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person, or (B) is used by such producer for any purpose described in subparagraph (A). (2) Special rule for eligible discretionary blenders For purposes of this subsection and section 6427(e)(3), an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if— (A) the producer of such biodiesel (determined without regard to this subparagraph)— (i) did not pay the tax imposed under section 4081 with respect to such gallon, and (ii) assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the Secretary, and (B) such eligible discretionary blender pays the tax imposed under section 4081 with respect to such gallon. For purposes of the preceding sentence, an eligible discretionary blender shall not be treated as producing a gallon of biodiesel before the date on which the sale or use of the qualified biodiesel mixture occurs. (3) Definitions Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A. , and (ii) by redesignating paragraph (6), as amended by paragraph (1)(A), as paragraph (4). (B) Producer registration requirement Subsection (a) of section 6426 subsections (d) and (e) subsections (c), (d), and (e) (C) Recapture (i) In general Subsection (f) of section 6426 (I) by striking or biodiesel (II) by striking or biodiesel mixture (III) by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: (2) Biodiesel If any credit was determined under this section or paid pursuant to section 6427(e) with respect to the production of any biodiesel and any person uses such biodiesel for a purpose not described in subsection (c)(1), then there is hereby imposed on such person a tax equal to $1 for each gallon of such biodiesel. . (ii) Conforming amendments (I) Paragraph (3) of section 6426(f), as redesignated by clause (i)(III), is amended by inserting or (2) paragraph (1) (II) The heading for paragraph (1) of section 6426(f) Imposition of tax In general (D) Limitation Section 6426(i) (i) in paragraph (2)— (I) by striking biodiesel or (II) by striking Biodiesel and (ii) by inserting after paragraph (2) the following new paragraph: (3) Biodiesel No credit shall be determined under this section with respect to biodiesel unless such biodiesel is produced in the United States. . (E) Clerical amendments (i) The heading of section 6426 alcohol fuel, biodiesel, and alternative fuel mixtures alcohol fuel mixtures, biodiesel production, and alternative fuel mixtures (ii) The item relating to section 6426 in the table of sections for subchapter B of chapter 65 alcohol fuel, biodiesel, and alternative fuel mixtures alcohol fuel mixtures, biodiesel production, and alternative fuel mixtures (F) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2015. (3) Reform of excise payments of credit (A) In general Subsection (e) of section 6427 (i) by striking or the biodiesel mixture credit (ii) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively, and by inserting after paragraph (2) the following new paragraph: (3) Biodiesel production credit If any person produces biodiesel and sells or uses such biodiesel as provided in section 6426(c)(1), the Secretary shall pay (without interest) to such person an amount equal to the biodiesel production credit with respect to such biodiesel. , (iii) by striking paragraph (1) or (2) paragraph (1), (2), or (3) (iv) by striking alternative fuel fuel (v) by striking biodiesel mixture (as defined in section 6426(c)(3)) biodiesel (within the meaning of section 40A) (B) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2015. (c) Treatment of biodiesel as a taxable fuel (1) In general (A) Taxable fuel includes biodiesel Paragraph (1) of section 4083(a) and , and (D) biodiesel. . (B) Biodiesel defined Subsection (a) of section 4083 (4) Biodiesel The term biodiesel . (2) Biodiesel production facilities treated as refineries (A) In general Subsection (a) of section 4081 (5) Biodiesel production facilities and blending facilities treated as refineries For purposes of this part— (A) any facility which is used to produce biodiesel, and (B) any biodiesel blending facility, shall be treated as a refinery with respect to biodiesel. . (B) Biodiesel blending facility defined Section 4083 (e) Biodiesel blending facility For purposes of this subpart, the term biodiesel blending facility . (C) Bulk transfers Subparagraph (B) of section 4081(a)(1) (iii) Special rules for biodiesel The tax imposed by this paragraph shall not apply to the removal or entry of biodiesel to any refinery or terminal if the person removing or entering the biodiesel and the operator of the refinery or terminal are registered under section 4101. . (3) Rate of tax Subparagraph (A)(iii) of section 4081(a)(2) diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (4) Exemptions (A) In general Section 4082 diesel fuel and kerosene diesel fuel, kerosene, and biodiesel (B) Conforming amendment Subparagraph (A) of section 4082(d)(1) biodiesel, diesel fuel, (5) Other conforming amendments (A) The heading for paragraph (1) of section 4041(a) diesel fuel and kerosene diesel fuel, kerosene, and biodiesel (B) Paragraph (2) of section 6416(b) diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (C) Section 6427(l) (i) by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (ii) by striking diesel fuel and kerosene diesel fuel, kerosene, and biodiesel (iii) by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (D) Section 6715(c)(1) diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (6) Effective date The amendments made by this subsection shall apply to biodiesel sold or used after December 31, 2015. 156. Extension of production credit for Indian coal facilities placed in service before 2009 (a) In general Subparagraph (A) of section 45(e)(10) 9-year period 11-year period (b) Effective date The amendment made by this section shall apply to coal produced after December 31, 2014. 157. 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, 2015 January 1, 2017 (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) January 1, 2015 January 1, 2017 (c) Effective dates The amendments made by this section shall take effect on January 1, 2015. 158. Extension of credit for energy-efficient new homes (a) In general Subsection (g) of section 45L December 31, 2014 December 31, 2016 (b) Effective date The amendment made by this section shall apply to homes acquired after December 31, 2014. 159. Extension of special allowance for second generation biofuel plant property (a) In general Subparagraph (D) of section 168(l)(2) January 1, 2015 January 1, 2017 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 160. Extension and modification of energy efficient commercial buildings deduction (a) In general Subsection (h) of section 179D December 31, 2014 December 31, 2016 (b) Allocations to Indian tribal governments Paragraph (4) of section 179D(d) or local 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) political subdivision thereof (2) Clerical amendment The heading of paragraph (4) of section 179D(d) and property held by certain non-profits public property (d) Updated ASHRAE standards for 2016 (1) In general Paragraph (1) of section 179D(c) Standard 90.1-2001 Standard 90.1-2007 (2) Conforming amendments (A) Paragraph (2) of section 179D(c) (2) Standard 90.1-2007 The term Standard 90.1-2007 . (B) Subsection (f) of section 179D Standard 90.1-2001 Standard 90.1-2007 (C) Paragraph (1) of section 179D(f) (i) by striking Table 9.3.1.1 Table 9.5.1 (ii) by striking Table 9.3.1.2 Table 9.6.1 (3) Effective date The amendments made by this subsection shall apply to property placed in service after December 31, 2015. (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, 2014. 161. 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) January 1, 2015 January 1, 2017 (b) Effective date The amendment made by this section shall apply to dispositions after December 31, 2014. 162. Extension of excise tax credits relating to alternative fuels (a) Extension of alternative fuels excise tax credits (1) In general Sections 6426(d)(5) 6426(e)(3) December 31, 2014 December 31, 2016 (2) Outlay payments for alternative fuels Subparagraph (C) of section 6427(e)(7), as redesignated by section 155(b)(3)(A)(ii), December 31, 2014 December 31, 2016 (b) Effective date The amendments made by this section shall apply to fuel sold or used after December 31, 2014. (c) Special rule for certain periods during 2015 Notwithstanding any other provision of law, in the case of 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. II Provision that expired in 2013 201. Extension of credit for 2-wheeled plug-in electric vehicles (a) In general Subparagraph (E) of section 30D(g)(3) acquired (i) after December 31, 2011, and before January 1, 2014, and (ii) in the case of a vehicle that has 2 wheels— (I) during the period described in clause (i), or (II) after December 31, 2014, and before January 1, 2017. . (b) Effective date The amendment made by this section shall apply to vehicles acquired after December 31, 2014. III Revenue provisions 301. 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 (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 (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. 302. Treatment of certain persons as employers with respect to motion picture projects (a) In general Chapter 25 (relating to general provisions relating to employment taxes) is amended by adding at the end the following new section: 3512. Treatment of certain persons as employers with respect to motion picture projects (a) In general For purposes of sections 3121(a)(1) and 3306(b)(1), remuneration paid to a motion picture project worker by a motion picture project employer during a calendar year shall be treated as remuneration paid with respect to employment of such worker by such employer during the calendar year. The identity of such employer for such purposes shall be determined as set forth in this section and without regard to the usual common law rules applicable in determining the employer-employee relationship. (b) Definitions For purposes of this section— (1) Motion picture project employer The term motion picture project employer (A) such person (directly or through affiliates)— (i) is a party to a written contract covering the services of motion picture project workers with respect to motion picture projects in the course of a client's trade or business, (ii) is contractually obligated to pay remuneration to the motion picture project workers without regard to payment or reimbursement by any other person, (iii) controls the payment (within the meaning of section 3401(d)(1)) of remuneration to the motion picture project workers and pays such remuneration from its own account or accounts, (iv) is a signatory to one or more collective bargaining agreements with a labor organization (as defined in 29 U.S.C. 152(5) (v) has treated substantially all motion picture project workers that such person pays as employees and not as independent contractors during such calendar year for purposes of determining employment taxes under this subtitle, and (B) at least 80 percent of all remuneration (to which section 3121 applies) paid by such person in such calendar year is paid to motion picture project workers. (2) Motion picture project worker The term motion picture project worker (3) Motion picture project The term motion picture project (4) Affiliate; affiliated A person shall be treated as an affiliate of, or affiliated with, another person if such persons are treated as a single employer under subsection (b) or (c) of section 414. . (b) Clerical amendment The table of sections for such chapter 25 Sec. 3512. Treatment of certain persons as employers with respect to motion picture projects. (c) Effective date The amendments made by this section shall apply to remuneration paid after December 31, 2015. (d) No inference Nothing in the amendments made by this section shall be construed to create any inference on the law before the date of the enactment of this Act. 303. Equalization of excise tax and credits with respect to liquefied petroleum gas and liquefied natural gas (a) Liquefied petroleum gas (1) In general Subparagraph (B) of section 4041(a)(2) and (ii) in the case of liquefied petroleum gas, 18.3 cents per energy equivalent of a gallon of gasoline, and . (2) Energy equivalent of a gallon of gasoline Paragraph (2) of section 4041(a) (C) Energy equivalent of a gallon of gasoline For purposes of this paragraph, the term energy equivalent of a gallon of gasoline means, with respect to a liquefied petroleum gas fuel, the amount of such fuel having a Btu content of 115,400 (lower heating value). . (b) Liquefied natural gas (1) In general Subparagraph (B) of section 4041(a)(2), as amended by subsection (a)(1), is amended by striking and , and (iv) in the case of liquefied natural gas, 24.3 cents per energy equivalent of a gallon of diesel. . (2) Energy equivalent of a gallon of diesel Paragraph (2) of section 4041(a), as amended by subsection (a)(2), is amended by adding at the end the following: (D) Energy equivalent of a gallon of diesel For purposes of this paragraph, the term energy equivalent of a gallon of diesel means, with respect to a liquefied natural gas fuel, the amount of such fuel having a Btu content of 128,700 (lower heating value). . (3) Conforming amendments Section 4041(a)(2)(B)(iii), as redesignated by subsection (a)(1), is amended— (A) by striking liquefied natural gas, (B) by striking peat), and peat) and (c) Credits Section 6426 (j) Energy equivalency determinations for liquefied petroleum gas and liquefied natural gas For purposes of determining any credit under this section, any reference to the number of gallons of an alternative fuel or the gasoline gallon equivalent of such a fuel shall be treated as a reference to— (1) in the case of liquefied petroleum gas, the energy equivalent of a gallon of gasoline, as defined in section 4041(a)(2)(C), and (2) in the case of liquefied natural gas, the energy equivalent of a gallon of diesel, as defined in section 4041(a)(2)(D). . (d) Effective date The amendments made by this section shall apply to fuel sold or used after December 31, 2014. 304. Additional information on returns relating to mortgage interest (a) In general Paragraph (2) of section 6050H(b) and (D) the amount of outstanding principal on the mortgage at the beginning of the calendar year, (E) the address of the property securing such mortgage, (F) the date of the origination of such mortgage, and . (b) Payee statements Subsection (d) of section 6050H and , and (3) the information required to be included on the return under subparagraphs (D), (E), and (F) of subsection (b)(2). . (c) Effective date The amendments made by this section shall apply to returns and statements the due date for which (determined without regard to extensions) is after December 31, 2016. IV Budgetary effects 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). August 5, 2015 Read twice and placed on the calendar

Summary: Tax Relief Extension Act of 2015 Amends the Internal Revenue Code to extend expired and expiring tax provisions affecting individual and business taxpayers and the energy sector. (Sec. 2) Expresses the sense of the Senate that: (1) Congress should pursue a process of comprehensive tax reform, (2) Congress should eliminate temporary provisions in the Internal Revenue Code by making permanent those provisions that merit permanency and by allowing others to expire, and (3) a major focus of the tax reform process should be fostering economic growth and lowering tax rates by broadening the tax base. TITLE I--PROVISIONS THAT EXPIRED IN 2014 Subtitle A--Individual Tax Extenders (Sec. 101) Extends through 2016 the tax deduction for the expenses of elementary and secondary school teachers. Expands such deduction to include expenses in connection with the professional development activities of an educator. (Sec. 102) Extends through 2016 the exclusion from gross income of imputed income from the discharge of acquisition indebtedness for a principal residence. (Sec. 103) Extends through 2016 the equalization of the tax exclusion for employer-paid mass transit and parking benefits. Expands such exclusion to include bike sharing programs. (Sec. 104) Extends through 2016: the tax deduction for mortgage insurance premiums; the tax deduction for state and local general sales taxes in lieu of state and local income taxes; the tax deduction for contributions of property made for conservation purposes; the deduction from gross income for qualified tuition and related expenses; and tax-free distributions from individual retirement accounts for charitable purposes. Subtitle B--Business Tax Extenders (Sec. 111) Extends through 2016 the tax credit for research expenditures. Allows a qualified small business (i.e., a corporation or partnership with gross receipts less than $5 million in a taxable year) to elect a credit against payroll tax liability, up to $250,000, in lieu of taking a research tax credit. (Sec. 112) Extends through 2016 the low-income housing tax credit rate for newly constructed non-federally subsidized buildings. Allows through 2016 a 4% housing tax credit for non-federally subsidized existing buildings. (Sec. 113) Amends the Housing Assistance Tax Act of 2008 to extend through 2016 the exemption of the basic military housing allowance from the income test for programs financed by tax-exempt housing bonds. (Sec. 114) Extends through 2016: the Indian employment tax credit; the tax credit for railroad track maintenance expenditures; the tax credit for mine rescue team training expenditures; and differential wage payments to employees who are active duty members of the Uniformed Services. (Sec. 115) Increases the national limitation amount for the new markets tax credit through 2016. Extends through 2021 the period for carryover of unused limitation amounts. (Sec. 119) Extends through 2016 the work opportunity tax credit. Allows a credit for the hiring of a qualified long-term unemployment recipient (unemployed for not less than 27 consecutive weeks). (Sec. 120) Extends through 2016 the authority for issuing qualified zone academy bonds for the financing of public school facilities. Reduces the private business contribution requirement for such bonds from 10% to 5% of the proceeds of the bond issue. (Sec. 121) Extends through 2016: the classification, for depreciation purposes, of certain race horses as three-year property; accelerated depreciation of qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements; the classification, for depreciation purposes, of motorsports entertainment complexes as seven-year property; accelerated depreciation of business property on Indian reservations; the additional 50% depreciation allowance (bonus depreciation) for business assets and the election to accelerate the alternative minimum tax credit in lieu of bonus depreciation; the deduction for charitable deductions of food inventory by taxpayers other than C corporations; the increased expensing allowance for business assets, computer software, and qualified real property (i.e., leasehold improvement, restaurant property, and retail improvement property); the election to expense mine safety equipment; the expensing allowance for certain film and television productions and the cost of live theatrical productions; the deduction for income attributable to domestic production activities in Puerto Rico; tax rules relating to payments between controlled foreign corporations and dividends of regulated investment companies; the subpart F income exemption for income derived in the active conduct of a banking, finance, or insurance business; the tax rule exempting dividends, interest, rents, and royalties received or accrued from certain controlled foreign corporations by a related entity from treatment as foreign holding company income; the 100% exclusion from gross income of gain from the sale of small business stock; the basis adjustment rule for stock of an S corporation making charitable contributions of property; the reduction to five years of the recognition period for the built-in gains of S corporations; tax incentives for investment in empowerment zones; the increased amount of distilled spirit excise taxes paid to Puerto Rico and the Virgin Islands; and the American Samoa economic development tax credit. Subtitle C--Energy Tax Extenders (Sec. 151) Extends through 2016 the tax credit for residential energy efficiency improvements. Modifies energy efficiency standards for windows, doors, skylights, roofing, water heaters, biomass stoves, and oil furnace or hot water boilers. Extends through 2016: the tax credit for new qualified fuel cell motor vehicles; the tax credit for alternative fuel vehicle refueling property; the tax credit for second generation biofuel production; the tax credit for the production of electricity from Indian coal facilities placed in service before 2009; the tax credit for the production of electricity from wind, biomass, geothermal energy, landfill gas, trash, qualified hydropower, and marine and hydrokinetic renewable energy facilities; the tax credit for energy efficient new homes; the special depreciation allowance for second generation biofuel plant property; the tax deduction for energy efficient commercial buildings; tax deferral rules for sales or dispositions of qualified electric facilities; and the excise tax credit for alternative fuels. (Sec. 155) Modifies and extends through 2016 the income and excise tax credits for biodiesel and renewable diesel used as fuel. TITLE II--PROVISION THAT EXPIRED IN 2013 (Sec. 201) Revises and extends through 2016 the tax credit for two-wheeled plug-in electric vehicles. TITLE III--REVENUE PROVISIONS (Sec. 301) Excludes from gross income, for income tax purposes, any amount received by a non-corporate taxpayer as a clean coal power grant, award, or allowance under the Energy Policy Act of 2005. (Sec. 302) Allows the consolidation of remuneration paid to a motion picture project worker by a motion picture project employer in a calendar year for employment tax purposes. (Sec. 303) Equalizes the excise tax on liquefied petroleum gas and liquefied natural gas by establishing a rate of 18.3 cents per energy equivalent of a gallon of gasoline for liquefied petroleum gas and 24.3 cents per energy equivalent of a gallon of diesel for liquefied natural gas. (Sec. 304) Requires mortgage interest information returns to include: (1) the amount of the outstanding mortgage at the beginning of the calendar year, (2) the address of the property securing such mortgage, and (3) the date of the origination of the mortgage. TITLE IV--BUDGETARY EFFECTS (Sec. 401) Prohibits the budgetary effects of this Act from being entered on any PAYGO scorecard.