I 
112TH CONGRESS 
2D SESSION 
H. R. 15 
To amend the Internal Revenue Code of 1986 to provide tax relief to middle- 
class families. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2012 
Mr. LEVIN (for himself, Ms. PELOSI, Mr. HOYER, Mr. CLYBURN, Mr. RAN-
GEL, Mr. MCDERMOTT, Mr. LEWIS of Georgia, Mr. NEAL, Mr. LARSON 
of Connecticut, Mr. BLUMENAUER, Mr. PASCRELL, Mr. CROWLEY, Mr. 
VAN HOLLEN, Mr. DICKS, Ms. CHU, Mr. HONDA, Mr. TONKO, Ms. 
HAHN, Mr. GEORGE MILLER of California, Mr. WELCH, Mr. RICHMOND, 
Mr. CICILLINE, Ms. SCHAKOWSKY, Ms. EDDIE BERNICE JOHNSON of 
Texas, Mr. SERRANO, Mrs. CAPPS, and Ms. PINGREE of Maine) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on the Budget, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax relief to middle-class families. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Middle Class Tax Cut Act’’. 
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(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment 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 provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—TEMPORARY EXTENSION OF TAX RELIEF 
Sec. 101. Temporary extension of 2001 tax relief. 
Sec. 102. Temporary extension of 2003 tax relief. 
Sec. 103. Temporary extension of 2010 tax relief. 
Sec. 104. Temporary extension of election to expense certain depreciable busi-
ness assets. 
TITLE II—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 201. Temporary extension of increased alternative minimum tax exemption 
amount. 
Sec. 202. Temporary extension of alternative minimum tax relief for nonrefund-
able personal credits. 
TITLE III—TREATMENT FOR PAYGO PURPOSES 
Sec. 301. Treatment for PAYGO purposes. 
TITLE I—TEMPORARY 
EXTENSION OF TAX RELIEF 
SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF. 
(a) TEMPORARY EXTENSION.— 
(1) IN
GENERAL.—Section 901(a)(1) of the 
Economic Growth and Tax Relief Reconciliation Act 
of 2001 is amended by striking ‘‘December 31, 
2012’’ and inserting ‘‘December 31, 2013’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect as if included in 
the enactment of the Economic Growth and Tax Re-
lief Reconciliation Act of 2001. 
(b) APPLICATION TO CERTAIN HIGH-INCOME TAX-
PAYERS.— 
(1) INCOME TAX RATES.— 
(A) TREATMENT OF 25- AND 28-PERCENT 
RATE
BRACKETS.—Paragraph (2) of section 
1(i) is amended to read as follows: 
‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.— 
The tables under subsections (a), (b), (c), (d), and 
(e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each 
place it appears (before the application of sub-
paragraph (B)), and 
‘‘(B) by substituting ‘28%’ for ‘31%’ each 
place it appears.’’. 
(B) 33-PERCENT
RATE
BRACKET.—Sub-
section (i) of section 1 is amended by redesig-
nating paragraph (3) as paragraph (4) and by 
inserting after paragraph (2) the following new 
paragraph: 
‘‘(3) 33-PERCENT RATE BRACKET.— 
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‘‘(A) IN GENERAL.—In the case of taxable 
years beginning after December 31, 2012— 
‘‘(i) the rate of tax under subsections 
(a), (b), (c), and (d) on a taxpayer’s tax-
able income in the fourth rate bracket shall 
be 33 percent to the extent such income 
does not exceed an amount equal to the ex-
cess of— 
‘‘(I) the applicable amount, over 
‘‘(II) the dollar amount at which 
such bracket begins, and 
‘‘(ii) the 36 percent rate of tax under 
such subsections shall apply only to the 
taxpayer’s taxable income in such bracket 
in excess of the amount to which clause (i) 
applies. 
‘‘(B) APPLICABLE AMOUNT.—For purposes 
of this paragraph, the term ‘applicable amount’ 
means the excess of— 
‘‘(i) the applicable threshold, over 
‘‘(ii) the sum of the following amounts 
in effect for the taxable year: 
‘‘(I) the basic standard deduction 
(within 
the 
meaning 
of 
section 
63(c)(2)), and 
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‘‘(II) 
the 
exemption 
amount 
(within 
the 
meaning 
of 
section 
151(d)(1)) (or, in the case of sub-
section 
(a), 
such 
exemption 
amounts). 
‘‘(C) APPLICABLE THRESHOLD.—For pur-
poses of this paragraph, the term ‘applicable 
threshold’ means— 
‘‘(i) $250,000 in the case of sub-
section (a), 
‘‘(ii) $225,000 in the case of sub-
section (b), 
‘‘(iii) $200,000 in the case of sub-
sections (c), and 
‘‘(iv) 1⁄2 the amount applicable under 
clause (i) (after adjustment, if any, under 
subparagraph (E)) in the case of sub-
section (d). 
‘‘(D) FOURTH RATE BRACKET.—For pur-
poses of this paragraph, the term ‘fourth rate 
bracket’ means the bracket which would (deter-
mined without regard to this paragraph) be the 
36-percent rate bracket. 
‘‘(E) INFLATION ADJUSTMENT.—For pur-
poses of this paragraph, with respect to taxable 
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years beginning in calendar years after 2012, 
each of the dollar amounts under clauses (i), 
(ii), and (iii) of subparagraph (C) shall be ad-
justed in the same manner as under paragraph 
(1)(C), except that subsection (f)(3)(B) shall be 
applied by substituting ‘2008’ for ‘1992’.’’. 
(2) PHASEOUT OF PERSONAL EXEMPTIONS AND 
ITEMIZED DEDUCTIONS.— 
(A) OVERALL
LIMITATION
ON
ITEMIZED 
DEDUCTIONS.—Section 68 is amended— 
(i) 
by 
striking 
‘‘the 
applicable 
amount’’ the first place it appears in sub-
section (a) and inserting ‘‘the applicable 
threshold in effect under section 1(i)(3)’’, 
(ii) 
by 
striking 
‘‘the 
applicable 
amount’’ in subsection (a)(1) and inserting 
‘‘such applicable threshold’’, 
(iii) by striking subsection (b) and re-
designating subsections (c), (d), and (e) as 
subsections (b), (c), and (d), respectively, 
and 
(iv) by striking subsections (f) and 
(g). 
(B) PHASEOUT OF DEDUCTIONS FOR PER-
SONAL EXEMPTIONS.— 
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(i) IN
GENERAL.—Paragraph (3) of 
section 151(d) is amended— 
(I) by striking ‘‘the threshold 
amount’’ in subparagraphs (A) and 
(B) and inserting ‘‘the applicable 
threshold in effect under section 
1(i)(3)’’, 
(II) by striking subparagraph (C) 
and redesignating subparagraph (D) 
as subparagraph (C), and 
(III) by striking subparagraphs 
(E) and (F). 
(ii) 
CONFORMING
AMENDMENTS.— 
Paragraph (4) of section 151(d) is amend-
ed— 
(I) by striking subparagraph (B), 
(II) by redesignating clauses (i) 
and (ii) of subparagraph (A) as sub-
paragraphs (A) and (B), respectively, 
and by indenting such subparagraphs 
(as so redesignated) accordingly, and 
(III) by striking all that precedes 
‘‘in a calendar year after 1989,’’ and 
inserting the following: 
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‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning’’. 
(c) EFFECTIVE DATE.—Except as otherwise pro-
vided, the amendments made by this section shall apply 
to taxable years beginning after December 31, 2012. 
(d) APPLICATION
OF
EGTRRA SUNSET.—Each 
amendment made by subsection (b) shall be subject to title 
IX of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 to the same extent and in the same manner 
as if such amendment was included in title I of such Act. 
SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF. 
(a) EXTENSION.— 
(1) IN GENERAL.—Section 303 of the Jobs and 
Growth Tax Relief Reconciliation Act of 2003 is 
amended by striking ‘‘December 31, 2012’’ and in-
serting ‘‘December 31, 2013’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect as if included in 
the enactment of the Jobs and Growth Tax Relief 
Reconciliation Act of 2003. 
(b) 20-PERCENT CAPITAL GAINS RATE FOR CERTAIN 
HIGH INCOME INDIVIDUALS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
1(h) is amended by striking subparagraph (C), by 
redesignating subparagraphs (D) and (E) as sub-
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paragraphs (E) and (F) and by inserting after sub-
paragraph (B) the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net cap-
ital gain (or, if less, taxable income) as ex-
ceeds the amount on which a tax is deter-
mined under subparagraph (B), or 
‘‘(ii) the excess (if any) of— 
‘‘(I) the amount of taxable in-
come which would (without regard to 
this paragraph) be taxed at a rate 
below 36 percent, over 
‘‘(II) the sum of the amounts on 
which a tax is determined under sub-
paragraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable income) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C),’’. 
(2) MINIMUM TAX.—Paragraph (3) of section 
55(b) is amended by striking subparagraph (C), by 
redesignating subparagraph (D) as subparagraph 
(E), and by inserting after subparagraph (B) the 
following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
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‘‘(i) so much of the adjusted net cap-
ital gain (or, if less, taxable excess) as ex-
ceeds the amount on which tax is deter-
mined under subparagraph (B), or 
‘‘(ii) the excess described in section 
1(h)(1)(C)(ii), plus 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable excess) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C), plus’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The following provisions are each amended 
by striking ‘‘15 percent’’ and inserting ‘‘20 per-
cent’’: 
(A) Section 531. 
(B) Section 541. 
(C) Section 1445(e)(1). 
(D) The second sentence of section 
7518(g)(6)(A). 
(E) Section 53511(f)(2) of title 46, United 
States Code. 
(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are 
each amended by striking ‘‘5 percent (0 percent in 
the case of taxable years beginning after 2007)’’ and 
inserting ‘‘0 percent’’. 
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(3) Section 1445(e)(6) is amended by striking 
‘‘15 percent (20 percent in the case of taxable years 
beginning after December 31, 2010)’’ and inserting 
‘‘20 percent’’. 
(d) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided, the amendments made by subsections (b) and 
(c) shall apply to taxable years beginning after De-
cember 31, 2012. 
(2) WITHHOLDING.—The amendments made by 
paragraphs (1)(C) and (3) of subsection (c) shall 
apply to amounts paid on or after January 1, 2013. 
(e) APPLICATION
OF
JGTRRA SUNSET.—Each 
amendment made by subsections (b) and (c) shall be sub-
ject to section 303 of the Jobs and Growth Tax Relief 
Reconciliation Act of 2003 to the same extent and in the 
same manner as if such amendment was included in title 
III of such Act. 
SEC. 103. TEMPORARY EXTENSION OF 2010 TAX RELIEF. 
(a) AMERICAN OPPORTUNITY TAX CREDIT.— 
(1) IN GENERAL.—Section 25A(i) is amended 
by striking ‘‘or 2012’’ and inserting ‘‘2012, or 
2013’’. 
(2) TREATMENT
OF
POSSESSIONS.—Section 
1004(c)(1) of division B of the American Recovery 
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and Reinvestment Tax Act of 2009 is amended by 
striking ‘‘and 2012’’ each place it appears and in-
serting ‘‘2012, and 2013’’. 
(b) CHILD TAX CREDIT.—Section 24(d)(4) is amend-
ed— 
(1) by striking ‘‘AND 2012’’ in the heading and 
inserting ‘‘2012, AND 2013’’, and 
(2) by striking ‘‘or 2012’’ and inserting ‘‘2012, 
or 2013’’. 
(c) EARNED INCOME TAX CREDIT.—Section 32(b)(3) 
is amended— 
(1) by striking ‘‘AND 2012’’ in the heading and 
inserting ‘‘2012, AND 2013’’, and 
(2) by striking ‘‘or 2012’’ and inserting ‘‘2012, 
or 2013’’. 
(d) 
TEMPORARY
EXTENSION
OF
RULE
DIS-
REGARDING REFUNDS IN THE ADMINISTRATION OF FED-
ERAL
PROGRAMS
AND
FEDERALLY
ASSISTED
PRO-
GRAMS.—Subsection (b) of section 6409 is amended by 
striking ‘‘December 31, 2012’’ and inserting ‘‘December 
31, 2013’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
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shall apply to taxable years beginning after Decem-
ber 31, 2012. 
(2) RULE DISREGARDING REFUNDS IN THE AD-
MINISTRATION
OF
CERTAIN
PROGRAMS.—The 
amendment made by subsection (d) shall apply to 
amounts received after December 31, 2012. 
SEC. 104. TEMPORARY EXTENSION OF ELECTION TO EX-
PENSE CERTAIN DEPRECIABLE BUSINESS AS-
SETS. 
(a) IN GENERAL.— 
(1) DOLLAR LIMITATION.—Section 179(b)(1) is 
amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C), 
(B) by redesignating subparagraph (D) as 
subparagraph (E), 
(C) by inserting after subparagraph (C) 
the following new subparagraph: 
‘‘(D) $250,000 in the case of taxable years 
beginning in 2013, and’’, and 
(D) in subparagraph (E), as so redesig-
nated, by striking ‘‘2012’’ and inserting 
‘‘2013’’. 
(2) 
REDUCTION
IN
LIMITATION.—Section 
179(b)(2) is amended— 
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