1972 
(2) MODIFICATION.—The amendments made by 
subsection (b) shall apply to individuals who begin 
work for the employer after December 31, 2015. 
SEC. 143. EXTENSION AND MODIFICATION OF BONUS DE-
PRECIATION. 
(a) EXTENDED FOR 2015.— 
(1) IN GENERAL.—Section 168(k)(2) is amend-
ed— 
(A) by striking ‘‘January 1, 2016’’ in sub-
paragraph (A)(iv) and inserting ‘‘January 1, 
2017’’, and 
(B) by striking ‘‘January 1, 2015’’ each 
place it appears and inserting ‘‘January 1, 
2016’’. 
(2) SPECIAL
RULE
FOR
FEDERAL
LONG-TERM 
CONTRACTS.—Section 460(c)(6)(B)(ii) is amended by 
striking ‘‘January 1, 2015 (January 1, 2016’’ and 
inserting ‘‘January 1, 2016 (January 1, 2017’’. 
(3) EXTENSION OF ELECTION TO ACCELERATE 
AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 
(A) 
IN
GENERAL.—Section 
168(k)(4)(D)(iii)(II) is amended by striking 
‘‘January 1, 2015’’ and inserting ‘‘January 1, 
2016’’.
1973 
(B) ROUND 5 EXTENSION PROPERTY.—Sec-
tion 168(k)(4) is amended by adding at the end 
the following new subparagraph: 
‘‘(L) SPECIAL RULES FOR ROUND 5 EXTEN-
SION 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 subpara-
graph (E)(iii) thereof shall not apply, 
and 
‘‘(II) 
the 
bonus 
depreciation 
amount, maximum amount, and max-
imum increase amount shall be com-
puted separately from amounts com-
puted with respect to eligible qualified 
property which is not round 5 exten-
sion property. 
‘‘(ii) ELECTION.— 
‘‘(I) A taxpayer who has an elec-
tion in effect under this paragraph for 
round 4 extension property shall be 
treated as having an election in effect
1974 
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 prop-
erty may elect to have this paragraph 
apply to round 5 extension property. 
‘‘(iii) ROUND
EXTENSION
PROP-
ERTY.—For purposes of this subparagraph, 
the term ‘round 5 extension property’ means 
property which is eligible qualified property 
solely by reason of the extension of the ap-
plication of the special allowance under 
paragraph (1) pursuant to the amendments 
made by section 143(a)(1) of the Protecting 
Americans from Tax Hikes Act of 2015 
(and the application of such extension to 
this paragraph pursuant to the amendment 
made by section 143(a)(3) of such Act).’’. 
(4) CONFORMING AMENDMENTS.— 
(A) The heading for section 168(k) is 
amended by striking ‘‘JANUARY 1, 2015’’ and in-
serting ‘‘JANUARY 1, 2016’’.
1975 
(B) The heading for section 168(k)(2)(B)(ii) 
is amended by striking ‘‘PRE-JANUARY 1, 2015’’ 
and inserting ‘‘PRE-JANUARY 1, 2016’’. 
(5) EFFECTIVE DATE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the amendments made by this 
subsection shall apply to property placed in serv-
ice after December 31, 2014, in taxable years 
ending after such date. 
(B) ELECTION TO ACCELERATE AMT CRED-
IT.—The amendments made by paragraph (3) 
shall apply to taxable years ending after Decem-
ber 31, 2014. 
(b) EXTENDED AND MODIFIED FOR 2016 THROUGH 
2019.— 
(1) IN GENERAL.—Section 168(k)(2), as amend-
ed by subsection (a), is amended to read as follows: 
‘‘(2) QUALIFIED
PROPERTY.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property’ means property— 
‘‘(i)(I) to which this section applies 
which has a recovery period of 20 years or 
less,
1976 
‘‘(II) which is computer software (as 
defined in section 167(f)(1)(B)) for which a 
deduction is allowable under section 167(a) 
without regard to this subsection, 
‘‘(III) which is water utility property, 
or 
‘‘(IV) which is qualified improvement 
property, 
‘‘(ii) the original use of which com-
mences with the taxpayer, and 
‘‘(iii) which is placed in service by the 
taxpayer before January 1, 2020. 
‘‘(B) CERTAIN PROPERTY HAVING LONGER 
PRODUCTION PERIODS TREATED AS QUALIFIED 
PROPERTY.— 
‘‘(i) IN GENERAL.—The term ‘qualified 
property’ includes any property if such 
property— 
‘‘(I) meets the requirements of 
clauses (i) and (ii) of subparagraph 
(A), 
‘‘(II) is placed in service by the 
taxpayer before January 1, 2021, 
‘‘(III) is acquired by the taxpayer 
(or acquired pursuant to a written
1977 
contract entered into) before January 
1, 2020, 
‘‘(IV) has a recovery period of at 
least 10 years or is transportation 
property, 
‘‘(V) is subject to section 263A, 
and 
‘‘(VI) meets the requirements of 
clause (iii) of section 263A(f)(1)(B) 
(determined as if such clause also ap-
plies to property which has a long use-
ful life (within the meaning of section 
263A(f))). 
‘‘(ii) ONLY PRE-JANUARY 1, 2020 BASIS 
ELIGIBLE FOR ADDITIONAL ALLOWANCE.— 
In the case of property which is qualified 
property solely by reason of clause (i), 
paragraph (1) shall apply only to the extent 
of the adjusted basis thereof attributable to 
manufacture, construction, or production 
before January 1, 2020. 
‘‘(iii) TRANSPORTATION
PROPERTY.— 
For purposes of this subparagraph, the term 
‘transportation property’ means tangible
1978 
personal property used in the trade or busi-
ness of transporting persons or property. 
‘‘(iv) 
APPLICATION
OF
SUBPARA-
GRAPH.—This 
subparagraph 
shall 
not 
apply to any property which is described in 
subparagraph (C). 
‘‘(C) CERTAIN AIRCRAFT.—The term ‘quali-
fied property’ includes property— 
‘‘(i) which meets the requirements of 
subparagraph (A)(ii) and subclauses (II) 
and (III) of subparagraph (B)(i), 
‘‘(ii) which is an aircraft which is not 
a transportation property (as defined in 
subparagraph (B)(iii)) other than for agri-
cultural or firefighting purposes, 
‘‘(iii) which is purchased and on which 
such purchaser, at the time of the contract 
for purchase, has made a nonrefundable de-
posit of the lesser of— 
‘‘(I) 10 percent of the cost, or 
‘‘(II) $100,000, and 
‘‘(iv) which has— 
‘‘(I) an estimated production pe-
riod exceeding 4 months, and 
‘‘(II) a cost exceeding $200,000.
1979 
‘‘(D) EXCEPTION FOR ALTERNATIVE DEPRE-
CIATION PROPERTY.—The term ‘qualified prop-
erty’ shall not include any property to which the 
alternative depreciation system under subsection 
(g) applies, determined— 
‘‘(i) without regard to paragraph (7) of 
subsection (g) (relating to election to have 
system apply), and 
‘‘(ii) 
after 
application 
of 
section 
280F(b) (relating to listed property with 
limited business use). 
‘‘(E) SPECIAL RULES.— 
‘‘(i) SELF-CONSTRUCTED PROPERTY.— 
In the case of a taxpayer manufacturing, 
constructing, or producing property for the 
taxpayer’s own use, the requirements of sub-
clause (III) of subparagraph (B)(i) shall be 
treated as met if the taxpayer begins manu-
facturing, constructing, or producing the 
property before January 1, 2020. 
‘‘(ii) 
SALE-LEASEBACKS.—For 
pur-
poses of clause (iii) and subparagraph 
(A)(ii), if property is— 
‘‘(I) originally placed in service 
by a person, and
1980 
‘‘(II) sold and leased back by such 
person within 3 months after the date 
such property was originally placed in 
service, 
such property shall be treated as originally 
placed in service not earlier than the date 
on which such property is used under the 
leaseback referred to in subclause (II). 
‘‘(iii) SYNDICATION.—For purposes of 
subparagraph (A)(ii), if— 
‘‘(I) property is originally placed 
in service by the lessor of such prop-
erty, 
‘‘(II) such property is sold by 
such lessor or any subsequent pur-
chaser within 3 months after the date 
such property was originally placed in 
service (or, in the case of multiple 
units of property subject to the same 
lease, within 3 months after the date 
the final unit is placed in service, so 
long as the period between the time the 
first unit is placed in service and the 
time the last unit is placed in service 
does not exceed 12 months), and
1981 
‘‘(III) the user of such property 
after the last sale during such 3-month 
period remains the same as when such 
property was originally placed in serv-
ice, 
such property shall be treated as originally 
placed in service not earlier than the date 
of such last sale. 
‘‘(F) COORDINATION WITH SECTION 280F.— 
For purposes of section 280F— 
‘‘(i) AUTOMOBILES.—In the case of a 
passenger automobile (as defined in section 
280F(d)(5)) which is qualified property, the 
Secretary shall increase the limitation 
under section 280F(a)(1)(A)(i) by $8,000. 
‘‘(ii) LISTED PROPERTY.—The deduc-
tion allowable under paragraph (1) shall be 
taken into account in computing any recap-
ture amount under section 280F(b)(2). 
‘‘(iii) PHASE DOWN.—In the case of a 
passenger automobile placed in service by 
the taxpayer after December 31, 2017, 
clause (i) shall be applied by substituting 
for ‘$8,000’—
1982 
‘‘(I) in the case of an automobile 
placed in service during 2018, $6,400, 
and 
‘‘(II) in the case of an automobile 
placed in service during 2019, $4,800. 
‘‘(G) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM TAX.—For purposes of determining al-
ternative minimum taxable income under section 
55, the deduction under section 167 for qualified 
property shall be determined without regard to 
any adjustment under section 56.’’. 
(2) QUALIFIED IMPROVEMENT PROPERTY.—Sec-
tion 168(k)(3) is amended to read as follows: 
‘‘(3) QUALIFIED IMPROVEMENT PROPERTY.—For 
purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘qualified im-
provement property’ means any improvement to 
an interior portion of a building which is non-
residential real property if such improvement is 
placed in service after the date such building was 
first placed in service. 
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to—
1983 
‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, or 
‘‘(iii) the internal structural frame-
work of the building.’’. 
(3) EXPANSION OF ELECTION TO ACCELERATE 
AMT CREDITS IN LIEU OF BONUS DEPRECIATION.— 
Section 168(k)(4), as amended by subsection (a), is 
amended to read as follows: 
‘‘(4) ELECTION TO ACCELERATE AMT CREDITS IN 
LIEU OF BONUS DEPRECIATION.— 
‘‘(A) IN GENERAL.—If a corporation elects 
to have this paragraph apply for any taxable 
year— 
‘‘(i) paragraphs (1) and (2)(F) shall 
not apply to any qualified property placed 
in service during such taxable year, 
‘‘(ii) the applicable depreciation meth-
od used under this section with respect to 
such property shall be the straight line 
method, and 
‘‘(iii) the limitation imposed by section 
53(c) for such taxable year shall be in-
creased by the bonus depreciation amount 
which is determined for such taxable year 
under subparagraph (B).
1984 
‘‘(B) BONUS DEPRECIATION AMOUNT.—For 
purposes of this paragraph— 
‘‘(i) IN GENERAL.—The bonus depre-
ciation amount for any taxable year is an 
amount equal to 20 percent of the excess (if 
any) of— 
‘‘(I) the aggregate amount of de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraph 
(1) applied to all such property (and, 
in the case of any such property which 
is a passenger automobile (as defined 
in section 280F(d)(5)), if paragraph 
(2)(F) applied to such automobile), 
over 
‘‘(II) the aggregate amount of de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraphs 
(1) and (2)(F) did not apply to any 
such property.
1985 
The aggregate amounts determined under 
subclauses (I) and (II) shall be determined 
without regard to any election made under 
subparagraph (A) or subsection (b)(2)(D), 
(b)(3)(D), or (g)(7). 
‘‘(ii) LIMITATION.—The bonus depre-
ciation amount for any taxable year shall 
not exceed the lesser of— 
‘‘(I) 50 percent of the minimum 
tax credit under section 53(b) for the 
first taxable year ending after Decem-
ber 31, 2015, or 
‘‘(II) the minimum tax credit 
under section 53(b) for such taxable 
year determined by taking into ac-
count only the adjusted net minimum 
tax for taxable years ending before 
January 1, 2016 (determined by treat-
ing credits as allowed on a first-in, 
first-out basis). 
‘‘(iii) AGGREGATION
RULE.—All cor-
porations which are treated as a single em-
ployer under section 52(a) shall be treat-
ed—
1986 
‘‘(I) as 1 taxpayer for purposes of 
this paragraph, and 
‘‘(II) as having elected the appli-
cation of this paragraph if any such 
corporation so elects. 
‘‘(C) CREDIT REFUNDABLE.—For purposes 
of section 6401(b), the aggregate increase in the 
credits allowable under part IV of subchapter A 
for any taxable year resulting from the applica-
tion of this paragraph shall be treated as allowed 
under subpart C of such part (and not any other 
subpart). 
‘‘(D) OTHER RULES.— 
‘‘(i) ELECTION.—Any election under 
this paragraph may be revoked only with 
the consent of the Secretary. 
‘‘(ii) PARTNERSHIPS
WITH
ELECTING 
PARTNERS.—In the case of a corporation 
which is a partner in a partnership and 
which makes an election under subpara-
graph (A) for the taxable year, for purposes 
of determining such corporation’s distribu-
tive share of partnership items under sec-
tion 702 for such taxable year—
1987 
‘‘(I) paragraphs (1) and (2)(F) 
shall not apply to any qualified prop-
erty placed in service during such tax-
able year, and 
‘‘(II) the applicable depreciation 
method used under this section with re-
spect to such property shall be the 
straight line method. 
‘‘(iii) CERTAIN
PARTNERSHIPS.—In 
the case of a partnership in which more 
than 50 percent of the capital and profits 
interests are owned (directly or indirectly) 
at all times during the taxable year by 1 
corporation (or by corporations treated as 1 
taxpayer under subparagraph (B)(iii)), 
each partner shall compute its bonus depre-
ciation amount under clause (i) of subpara-
graph (B) by taking into account its dis-
tributive share of the amounts determined 
by the partnership under subclauses (I) and 
(II) of such clause for the taxable year of 
the partnership ending with or within the 
taxable year of the partner.’’. 
(4) SPECIAL RULES FOR CERTAIN PLANTS BEAR-
ING FRUITS AND NUTS.—Section 168(k) is amended—
1989 
‘‘(i) any tree or vine which bears fruits 
or nuts, and 
‘‘(ii) any other plant which will have 
more than one yield of fruits or nuts and 
which generally has a pre-productive period 
of more than 2 years from the time of 
planting or grafting to the time at which 
such plant begins bearing fruits or nuts. 
Such term shall not include any property which 
is planted or grafted outside of the United 
States. 
‘‘(C) ELECTION
REVOCABLE
ONLY
WITH 
CONSENT.—An election under this paragraph 
may be revoked only with the consent of the Sec-
retary. 
‘‘(D) ADDITIONAL
DEPRECIATION
MAY
BE 
CLAIMED ONLY ONCE.—If this paragraph applies 
to any specified plant, such specified plant shall 
not be treated as qualified property in the tax-
able year in which placed in service. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM
TAX.—Rules similar to the rules of 
paragraph (2)(G) shall apply for purposes of 
this paragraph.
1990 
‘‘(F) PHASE DOWN.—In the case of a speci-
fied plant which is planted after December 31, 
2017 (or is grafted to a plant that has already 
been planted before such date), subparagraph 
(A)(i) shall be applied by substituting for ‘50 
percent’— 
‘‘(i) in the case of a plant which is 
planted (or so grafted) in 2018, ‘40 percent’, 
and 
‘‘(ii) in the case of a plant which is 
planted (or so grafted) during 2019, ‘30 
percent’.’’. 
(5) PHASE DOWN OF BONUS DEPRECIATION.— 
Section 168(k) is amended by adding at the end the 
following new paragraph: 
‘‘(6) PHASE
DOWN.—In the case of qualified 
property placed in service by the taxpayer after De-
cember 31, 2017, paragraph (1)(A) shall be applied 
by substituting for ‘50 percent’— 
‘‘(A) in the case of property placed in serv-
ice in 2018 (or in the case of property placed in 
service in 2019 and described in paragraph 
(2)(B) or (C) (determined by substituting ‘2019’ 
for ‘2020’ in paragraphs (2)(B)(i)(III) and (ii) 
and paragraph (2)(E)(i)), ‘40 percent’,
1991 
‘‘(B) in the case of property placed in serv-
ice in 2019 (or in the case of property placed in 
service in 2020 and described in paragraph 
(2)(B) or (C), ‘30 percent’.’’. 
(6) CONFORMING AMENDMENTS.— 
(A) Section 168(e)(6) is amended— 
(i) by redesignating subparagraphs (A) 
and (B) as subparagraphs (D) and (E), re-
spectively, 
(ii) by striking all that precedes sub-
paragraph (D) (as so redesignated) and in-
serting the following: 
‘‘(6) 
QUALIFIED
LEASEHOLD
IMPROVEMENT 
PROPERTY.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
leasehold improvement property’ means any im-
provement to an interior portion of a building 
which is nonresidential real property if— 
‘‘(i) such improvement is made under 
or pursuant to a lease (as defined in sub-
section (h)(7))— 
‘‘(I) by the lessee (or any subles-
see) of such portion, or 
‘‘(II) by the lessor of such portion,
1992 
‘‘(ii) such portion is to be occupied ex-
clusively by the lessee (or any sublessee) of 
such portion, and 
‘‘(iii) such improvement is placed in 
service more than 3 years after the date the 
building was first placed in service. 
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to— 
‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, 
‘‘(iii) any structural component bene-
fitting a common area, or 
‘‘(iv) the internal structural framework 
of the building. 
‘‘(C) DEFINITIONS AND SPECIAL RULES.— 
For purposes of this paragraph— 
‘‘(i) COMMITMENT TO LEASE TREATED 
AS LEASE.—A commitment to enter into a 
lease shall be treated as a lease, and the 
parties to such commitment shall be treated 
as lessor and lessee, respectively. 
‘‘(ii) RELATED PERSONS.—A lease be-
tween related persons shall not be considered
1993 
a lease. For purposes of the preceding sen-
tence, the term ‘related persons’ means— 
‘‘(I) members of an affiliated 
group (as defined in section 1504), and 
‘‘(II) persons having a relation-
ship described in subsection (b) of sec-
tion 267; except that, for purposes of 
this clause, the phrase ‘80 percent or 
more’ shall be substituted for the 
phrase ‘more than 50 percent’ each 
place it appears in such subsection.’’, 
and 
(iii) by striking ‘‘subparagraph (A)’’ 
in subparagraph (E) (as so redesignated) 
and inserting ‘‘subparagraph (D)’’. 
(B) Section 168(e)(7)(B) is amended by 
striking ‘‘qualified leasehold improvement prop-
erty’’ and inserting ‘‘qualified improvement 
property’’. 
(C) Section 168(e)(8) is amended by strik-
ing subparagraph (D). 
(D) Section 168(k), as amended by the pre-
ceding provisions of this section, is amended by 
adding at the end the following new paragraph:
1994 
‘‘(7) ELECTION OUT.—If a taxpayer makes an 
election under this paragraph with respect to any 
class of property for any taxable year, paragraphs (1) 
and (2)(F) shall not apply to any qualified property 
in such class placed in service during such taxable 
year. An election under this paragraph may be re-
voked only with the consent of the Secretary.’’. 
(E) Section 168(l)(3) is amended— 
(i) by striking ‘‘section 168(k)’’ in sub-
paragraph (A) and inserting ‘‘subsection 
(k)’’, and 
(ii) 
by 
striking 
‘‘section 
168(k)(2)(D)(i)’’ in subparagraph (B) and 
inserting ‘‘subsection (k)(2)(D)’’. 
(F) Section 168(l)(4) is amended by strik-
ing ‘‘subparagraph (E) of section 168(k)(2)’’ and 
all that follows and inserting ‘‘subsection 
(k)(2)(E) shall apply.’’. 
(G) Section 168(l)(5) is amended by strik-
ing ‘‘section 168(k)(2)(G)’’ and inserting ‘‘sub-
section (k)(2)(G)’’. 
(H) Section 263A(c) is amended by adding 
at the end the following new paragraph: 
‘‘(7) COORDINATION WITH SECTION 168(k)(5).— 
This section shall not apply to any amount allowed
1996 
and ending after December 31, 2015, the limita-
tion under section 168(k)(4)(B)(ii) of the Inter-
nal Revenue Code of 1986 (as amended by this 
section) shall be the sum of— 
(i) the product of— 
(I) the maximum increase amount 
(within 
the 
meaning 
of 
section 
168(k)(4)(C)(iii) of such Code, as in ef-
fect before the amendments made by 
this subsection), multiplied by 
(II) a fraction the numerator of 
which is the number of days in the tax-
able year before January 1, 2016, and 
the denominator of which is the num-
ber of days in the taxable year, plus 
(ii) the product of— 
(I) such limitation (determined 
without regard to this subparagraph), 
multiplied by 
(II) a fraction the numerator of 
which is the number of days in the tax-
able year after December 31, 2015, and 
the denominator of which is the num-
ber of days in the taxable year.
1997 
(C) SPECIAL RULES FOR CERTAIN PLANTS 
BEARING FRUITS AND NUTS.—The amendments 
made by paragraph (4) (other than subpara-
graph (A) thereof) shall apply to specified plants 
(as defined in section 168(k)(5)(B) of the Inter-
nal Revenue Code of 1986, as amended by this 
subsection) planted or grafted after December 31, 
2015. 
SEC. 144. EXTENSION OF LOOK-THRU TREATMENT OF PAY-
MENTS 
BETWEEN 
RELATED 
CONTROLLED 
FOREIGN CORPORATIONS UNDER FOREIGN 
PERSONAL HOLDING COMPANY RULES. 
(a) IN GENERAL.—Section 954(c)(6)(C) is amended by 
striking ‘‘January 1, 2015’’ and inserting ‘‘January 1, 
2020’’. 
(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.
1998 
Subtitle C—Extensions Through 
2016 
PART 1—TAX RELIEF FOR FAMILIES AND 
INDIVIDUALS 
SEC. 151. EXTENSION AND MODIFICATION OF EXCLUSION 
FROM GROSS INCOME OF DISCHARGE OF 
QUALIFIED PRINCIPAL RESIDENCE INDEBT-
EDNESS. 
(a) EXTENSION.—Section 108(a)(1)(E) is amended by 
striking ‘‘January 1, 2015’’ and inserting ‘‘January 1, 
2017’’. 
(b) MODIFICATION.—Section 108(a)(1)(E), as amend-
ed by subsection (a), is amended by striking ‘‘discharged 
before’’ and all that follows and inserting ‘‘discharged— 
‘‘(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 DATES.— 
(1) EXTENSION.—The amendment made by sub-
section (a) shall apply to discharges of indebtedness 
after December 31, 2014. 
(2) MODIFICATION.—The amendment made by 
subsection (b) shall apply to discharges of indebted-
ness after December 31, 2015.
1999 
SEC. 152. EXTENSION OF MORTGAGE INSURANCE PRE-
MIUMS TREATED AS QUALIFIED RESIDENCE 
INTEREST. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
163(h)(3)(E)(iv) is amended by striking ‘‘December 31, 
2014’’ and inserting ‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to amounts paid or accrued after Decem-
ber 31, 2014. 
SEC. 153. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 
QUALIFIED 
TUITION 
AND 
RELATED 
EX-
PENSES. 
(a) IN GENERAL.—Section 222(e) is amended by strik-
ing ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
PART 2—INCENTIVES FOR GROWTH, JOBS, 
INVESTMENT, AND INNOVATION 
SEC. 161. EXTENSION OF INDIAN EMPLOYMENT TAX CRED-
IT. 
(a) IN GENERAL.—Section 45A(f) is amended by strik-
ing ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’.
2000 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
SEC. 162. EXTENSION AND MODIFICATION OF RAILROAD 
TRACK MAINTENANCE CREDIT. 
(a) EXTENSION.—Section 45G(f) is amended by strik-
ing ‘‘January 1, 2015’’ and inserting ‘‘January 1, 2017’’. 
(b) MODIFICATION.—Section 45G(d) is amended by 
striking ‘‘January 1, 2005,’’ and inserting ‘‘January 1, 
2015,’’. 
(c) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendment made by sub-
section (a) shall apply to expenditures paid or in-
curred in taxable years beginning after December 31, 
2014. 
(2) MODIFICATION.—The amendment made by 
subsection (b) shall apply to expenditures paid or in-
curred in taxable years beginning after December 31, 
2015. 
SEC. 163. EXTENSION OF MINE RESCUE TEAM TRAINING 
CREDIT. 
(a) IN GENERAL.—Section 45N(e) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’.
2001 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
SEC. 164. EXTENSION OF QUALIFIED ZONE ACADEMY 
BONDS. 
(a) EXTENSION.—Section 54E(c)(1) is amended by 
striking ‘‘and 2014’’ and inserting ‘‘2014, 2015, and 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to obligations issued after December 31, 
2014. 
SEC. 165. EXTENSION OF CLASSIFICATION OF CERTAIN 
RACE HORSES AS 3-YEAR PROPERTY. 
(a) IN GENERAL.—Section 168(e)(3)(A)(i) is amend-
ed— 
(1) by striking ‘‘January 1, 2015’’ in subclause 
(I) and inserting ‘‘January 1, 2017’’, and 
(2) by striking ‘‘December 31, 2014’’ in sub-
clause (II) and inserting ‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2014.
2002 
SEC. 166. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 
MOTORSPORTS 
ENTERTAINMENT 
COM-
PLEXES. 
(a) IN GENERAL.—Section 168(i)(15)(D) is amended 
by striking ‘‘December 31, 2014’’ and inserting ‘‘December 
31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2014. 
SEC. 167. EXTENSION AND MODIFICATION OF ACCELER-
ATED DEPRECIATION FOR BUSINESS PROP-
ERTY ON AN INDIAN RESERVATION. 
(a) IN GENERAL.—Section 168(j)(8) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) ELECTION
TO
HAVE
SPECIAL
RULES
NOT 
APPLY.—Section 168(j) is amended by redesignating para-
graph (8), as amended by subsection (a), as paragraph (9), 
and by inserting after paragraph (7) the following new 
paragraph: 
‘‘(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.’’.
2003 
(c) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendment made by sub-
section (a) shall apply to property placed in service 
after December 31, 2014. 
(2) MODIFICATION.—The amendments made by 
subsection (b) shall apply to taxable years beginning 
after December 31, 2015. 
SEC. 168. EXTENSION OF ELECTION TO EXPENSE MINE 
SAFETY EQUIPMENT. 
(a) IN GENERAL.—Section 179E(g) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2014. 
SEC. 169. EXTENSION OF SPECIAL EXPENSING RULES FOR 
CERTAIN FILM AND TELEVISION PRODUC-
TIONS; SPECIAL EXPENSING FOR LIVE THEAT-
RICAL PRODUCTIONS. 
(a) IN GENERAL.—Section 181(f) is amended by strik-
ing ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) APPLICATION TO LIVE PRODUCTIONS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
181(a) is amended by inserting ‘‘, and any qualified
2004 
live theatrical production,’’ after ‘‘any qualified film 
or television production’’. 
(2) CONFORMING AMENDMENTS.—Section 181 is 
amended— 
(A) by inserting ‘‘or any qualified live the-
atrical production’’ after ‘‘qualified film or tele-
vision production’’ each place it appears in sub-
sections (a)(2), (b), and (c)(1), 
(B) by inserting ‘‘or qualified live theatrical 
productions’’ after ‘‘qualified film or television 
productions’’ in subsection (f), and 
(C) by inserting ‘‘AND
LIVE
THEAT-
RICAL’’ after ‘‘FILM AND TELEVISION’’ in the 
heading. 
(3) CLERICAL AMENDMENT.—The item relating 
to section 181 in the table of sections for part VI of 
subchapter B of chapter 1 is amended to read as fol-
lows: 
‘‘Sec. 181. Treatment of certain qualified film and television and live theatrical 
productions.’’. 
(c) QUALIFIED LIVE THEATRICAL PRODUCTION.—Sec-
tion 181 is amended— 
(1) by redesignating subsections (e) and (f), as 
amended by subsections (a) and (b), as subsections (f) 
and (g), respectively, and
2005 
(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 the-
atrical production’ means any production described 
in paragraph (2) if 75 percent of the total compensa-
tion of the production is qualified compensation (as 
defined in subsection (d)(3)). 
‘‘(2) PRODUCTION.— 
‘‘(A) IN
GENERAL.—A production is de-
scribed in this paragraph if such production is 
a live staged production of a play (with or with-
out music) which is derived from a written book 
or script and is produced or presented by a tax-
able 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 tax-
payer, and 
‘‘(ii) which are—
2006 
‘‘(I) separate phases of a produc-
tion, or 
‘‘(II) separate simultaneous stag-
ings of the same production in dif-
ferent geographical locations (not in-
cluding 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 subpara-
graph (B), the term ‘phase’ with respect to any 
qualified live theatrical production refers to each 
of the following, but only if each of the following 
is treated by the taxpayer as a separate activity 
for all purposes of this title: 
‘‘(i) The initial staging of a live theat-
rical production. 
‘‘(ii) Subsequent additional stagings or 
touring of such production which are pro-
duced 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 subpara-
graph (B) which is produced or presented
2007 
by a taxable entity for not more than 10 
weeks of the taxable year, subparagraph (A) 
shall be applied by substituting ‘6,500’ for 
‘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 pro-
duction is produced or presented during 
such taxable year by 12 and dividing the 
result by the number of months in such tax-
able year. 
‘‘(E) EXCEPTION.—A production is not de-
scribed in this paragraph if such production in-
cludes or consists of any performance of conduct 
described in section 2257(h)(1) of title 18, 
United States Code.’’. 
(d) EFFECTIVE DATE.— 
(1) EXTENSION.—The amendment made by sub-
section (a) shall apply to productions commencing 
after December 31, 2014. 
(2) MODIFICATIONS.—
2008 
(A) IN GENERAL.—The amendments made 
by subsections (b) and (c) shall apply to produc-
tions commencing after December 31, 2015. 
(B) COMMENCEMENT.—For purposes of sub-
paragraph (A), the date on which a qualified 
live theatrical production commences is the date 
of the first public performance of such produc-
tion for a paying audience. 
SEC. 170. EXTENSION OF DEDUCTION ALLOWABLE WITH RE-
SPECT TO INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES IN PUERTO 
RICO. 
(a) IN GENERAL.—Section 199(d)(8)(C) is amended— 
(1) by striking ‘‘first 9 taxable years’’ and in-
serting ‘‘first 11 taxable years’’, and 
(2) by striking ‘‘January 1, 2015’’ and inserting 
‘‘January 1, 2017’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
SEC. 171. EXTENSION AND MODIFICATION OF EMPOWER-
MENT ZONE TAX INCENTIVES. 
(a) IN GENERAL.—
2009 
(1) EXTENSION.—Section 1391(d)(1)(A)(i) is 
amended by striking ‘‘December 31, 2014’’ and insert-
ing ‘‘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 con-
temporaneous with the date specified in subparagraph 
(A)(i) of section 1391(d)(1) of the Internal Revenue 
Code of 1986 (as in effect before the enactment of this 
Act), subparagraph (B) of such section shall not 
apply with respect to such designation if, after the 
date of the enactment of this section, the entity which 
made such nomination amends the nomination to 
provide for a new termination date in such manner 
as the Secretary of the Treasury (or the Secretary’s 
designee) may provide. 
(b) 
MODIFICATION.—Section 
1394(b)(3)(B)(i) 
is 
amended— 
(1) by striking ‘‘References’’ and inserting the 
following: 
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), references’’, 
and
2010 
(2) by adding at the end the following new sub-
clause: 
‘‘(II) SPECIAL
RULE
FOR
EM-
PLOYEE
RESIDENCE
TEST.—For pur-
poses of subsection (b)(6) and (c)(5) of 
section 1397C, an employee shall be 
treated as a resident of an empower-
ment zone if such employee is a resi-
dent of an empowerment zone, an en-
terprise community, or a qualified low- 
income community within an applica-
ble nominating jurisdiction.’’. 
(c) DEFINITIONS.— 
(1) QUALIFIED LOW-INCOME COMMUNITY.—Sec-
tion 1394(b)(3) is amended by redesignating subpara-
graphs (C) and (D) as subparagraphs (D) and (E), 
respectively, and by inserting after subparagraph (B) 
the following new subparagraph: 
‘‘(C) 
QUALIFIED
LOW-INCOME
COMMU-
NITY.—For purposes of subparagraph (B)— 
‘‘(i) IN GENERAL.—The term ‘qualified 
low-income community’ means any popu-
lation census tract if— 
‘‘(I) the poverty rate for such 
tract is at least 20 percent, or
2011 
‘‘(II) the median family income 
for such tract does not exceed 80 per-
cent of statewide median family in-
come (or, in the case of a tract located 
within a metropolitan area, metropoli-
tan 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 posses-
sion of the United States. 
‘‘(ii) TARGETED
POPULATIONS.—The 
Secretary shall prescribe regulations under 
which 1 or more targeted populations (with-
in the meaning of section 103(20) of the 
Riegle Community Development and Regu-
latory Improvement Act of 1994) may be 
treated as qualified low-income commu-
nities. 
‘‘(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 de-
fining poverty areas) shall be used for pur-
2012 
poses of determining poverty rates and me-
dian family income. 
‘‘(iv) MODIFICATION
OF
INCOME
RE-
QUIREMENT
FOR
CENSUS
TRACTS
WITHIN 
HIGH MIGRATION RURAL COUNTIES.— 
‘‘(I) IN GENERAL.—In the case of 
a population census tract located with-
in a high migration rural county, 
clause (i)(II) shall be applied to areas 
not located within a metropolitan area 
by substituting ‘85 percent’ for ‘80 per-
cent’. 
‘‘(II) HIGH
MIGRATION
RURAL 
COUNTY.—For purposes of this clause, 
the term ‘high migration rural county’ 
means any county which, during the 
20-year period ending with the year in 
which the most recent census was con-
ducted, has a net out-migration of in-
habitants from the county of at least 
10 percent of the population of the 
county at the beginning of such pe-
riod.’’. 
(2) APPLICABLE
NOMINATING
JURISDICTION.— 
Section 1394(b)(3)(D), as redesignated by paragraph
2013 
(1), is amended by adding at the end the following 
new clause: 
‘‘(iii) APPLICABLE NOMINATING JURIS-
DICTION.—The term ‘applicable nominating 
jurisdiction’ means, with respect to any em-
powerment zone or enterprise community, 
any local government that nominated such 
community for designation under section 
1391.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 1394(b)(3)(B)(iii) is amended by 
striking ‘‘or an enterprise community’’ and inserting 
‘‘, an enterprise community, or a qualified low-in-
come community within an applicable nominating 
jurisdiction’’. 
(2) Section 1394(b)(3)(D), as redesignated by 
subsection (c)(1), is amended by striking ‘‘DEFINI-
TIONS’’ and inserting ‘‘OTHER DEFINITIONS’’. 
(e) EFFECTIVE DATES.— 
(1) EXTENSIONS.—The amendment made by sub-
section (a) shall apply to taxable years beginning 
after December 31, 2014. 
(2) MODIFICATIONS.—The amendments made by 
subsections (b), (c), and (d) shall apply to bonds 
issued after December 31, 2015.
2014 
SEC. 172. EXTENSION OF TEMPORARY INCREASE IN LIMIT 
ON COVER OVER OF RUM EXCISE TAXES TO 
PUERTO RICO AND THE VIRGIN ISLANDS. 
(a) IN GENERAL.—Section 7652(f)(1) is amended by 
striking ‘‘January 1, 2015’’ and inserting ‘‘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. 
SEC. 173. EXTENSION OF AMERICAN SAMOA ECONOMIC DE-
VELOPMENT CREDIT. 
(a) IN GENERAL.—Section 119(d) of division A of the 
Tax Relief and Health Care Act of 2006 is amended— 
(1) by striking ‘‘January 1, 2015’’ each place it 
appears and inserting ‘‘January 1, 2017’’, 
(2) by striking ‘‘first 9 taxable years’’ in para-
graph (1) and inserting ‘‘first 11 taxable years’’, and 
(3) by striking ‘‘first 3 taxable years’’ in para-
graph (2) and inserting ‘‘first 5 taxable years’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
SEC. 174. MORATORIUM ON MEDICAL DEVICE EXCISE TAX. 
(a) IN GENERAL.—Section 4191 is amended by adding 
at the end the following new subsection:
2015 
‘‘(c) MORATORIUM.—The tax imposed under subsection 
(a) shall not apply to sales during the period beginning 
on January 1, 2016, and ending on December 31, 2017.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to sales after December 31, 2015. 
PART 3—INCENTIVES FOR ENERGY PRODUCTION 
AND CONSERVATION 
SEC. 181. EXTENSION AND MODIFICATION OF CREDIT FOR 
NONBUSINESS ENERGY PROPERTY. 
(a) EXTENSION.—Section 25C(g)(2) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) UPDATED ENERGY STAR REQUIREMENTS.— 
(1) IN GENERAL.—Section 25C(c)(1) is amended 
by striking ‘‘which meets’’ and all that follows 
through ‘‘requirements)’’. 
(2) ENERGY
EFFICIENT
BUILDING
ENVELOPE 
COMPONENT.—Section 25C(c) is amended by redesig-
nating paragraphs (2) and (3) as paragraphs (3) and 
(4), respectively, and by inserting after paragraph (1) 
the following new paragraph: 
‘‘(2) ENERGY
EFFICIENT
BUILDING
ENVELOPE 
COMPONENT.—The term ‘energy efficient building en-
velope component’ means a building envelope compo-
nent which meets—
2016 
‘‘(A) applicable Energy Star program re-
quirements, in the case of a roof or roof products, 
‘‘(B) version 6.0 Energy Star program re-
quirements, in the case of an exterior window, a 
skylight, or an exterior door, and 
‘‘(C) the prescriptive criteria for such com-
ponent established by the 2009 International En-
ergy Conservation Code, as such Code (including 
supplements) is in effect on the date of the enact-
ment of the American Recovery and Reinvest-
ment Tax Act of 2009, in the case of any other 
component.’’. 
(c) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendment made by sub-
section (a) shall apply to property placed in service 
after December 31, 2014. 
(2) MODIFICATION.—The amendments made by 
subsection (b) shall apply to property placed in serv-
ice after December 31, 2015. 
SEC. 182. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 
VEHICLE REFUELING PROPERTY. 
(a) IN GENERAL.—Section 30C(g) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’.
2017 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2014. 
SEC. 183. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN 
ELECTRIC VEHICLES. 
(a) IN GENERAL.—Section 30D(g)(3)(E) is amended 
by striking ‘‘acquired’’ and all that follows and inserting 
the following: ‘‘acquired— 
‘‘(i) after December 31, 2011, and be-
fore January 1, 2014, or 
‘‘(ii) in the case of a vehicle that has 
2 wheels, after December 31, 2014, and be-
fore January 1, 2017.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to vehicles acquired after December 31, 
2014. 
SEC. 184. EXTENSION OF SECOND GENERATION BIOFUEL 
PRODUCER CREDIT. 
(a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 
by striking ‘‘January 1, 2015’’ and inserting ‘‘January 1, 
2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
subsection shall apply to qualified second generation biofuel 
production after December 31, 2014.
2018 
SEC. 185. EXTENSION OF BIODIESEL AND RENEWABLE DIE-
SEL INCENTIVES. 
(a) INCOME TAX CREDIT.— 
(1) IN GENERAL.—Subsection (g) of section 40A 
is amended by striking ‘‘December 31, 2014’’ and in-
serting ‘‘December 31, 2016’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to fuel sold or used after 
December 31, 2014. 
(b) EXCISE TAX INCENTIVES.— 
(1) IN GENERAL.—Section 6426(c)(6) is amend-
ed by striking ‘‘December 31, 2014’’ and inserting 
‘‘December 31, 2016’’. 
(2) 
PAYMENTS.—Section 
6427(e)(6)(B) 
is 
amended by striking ‘‘December 31, 2014’’ and insert-
ing ‘‘December 31, 2016’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to fuel sold or used 
after December 31, 2014. 
(4) SPECIAL RULE FOR 2015.—Notwithstanding 
any other provision of law, in the case of any bio-
diesel mixture credit properly determined under sec-
tion 6426(c) of the Internal Revenue Code of 1986 for 
the period beginning on January 1, 2015, and ending 
on December 31, 2015, such credit shall be allowed, 
and any refund or payment attributable to such cred-
2019 
it (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 de-
termined by using the overpayment rate and method 
under section 6621 of such Code. 
SEC. 186. EXTENSION AND MODIFICATION OF PRODUCTION 
CREDIT FOR INDIAN COAL FACILITIES. 
(a) IN GENERAL.—Section 45(e)(10)(A) is amended by 
striking ‘‘9-year period’’ each place it appears and insert-
ing ‘‘11-year period’’.
2020 
(b) REPEAL OF LIMITATION BASED ON DATE FACILITY 
IS PLACED IN SERVICE.—Section 45(d)(10) is amended to 
read as follows: 
‘‘(10) INDIAN COAL PRODUCTION FACILITY.—The 
term ‘Indian coal production facility’ means a facil-
ity that produces Indian coal.’’. 
(c) TREATMENT OF SALES TO RELATED PARTIES.— 
Section 45(e)(10)(A)(ii)(I) is amended by inserting ‘‘(either 
directly by the taxpayer or after sale or transfer to one or 
more related persons)’’ after ‘‘unrelated person’’. 
(d) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.— 
(1) 
IN
GENERAL.—Section 
38(c)(4)(B), 
as 
amended by the preceding provisions of this Act, is 
amended by redesignating clauses (v) through (x) as 
clauses (vi) through (xi), respectively, and by insert-
ing after clause (iv) the following new clause: 
‘‘(v) the credit determined under sec-
tion 45 to the extent that such credit is at-
tributable to section 45(e)(10) (relating to 
Indian coal production facilities),’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45(e)(10) is amended by striking subparagraph (D). 
(e) EFFECTIVE DATES.—
2021 
(1) EXTENSION.—The amendments made by sub-
section (a) shall apply to coal produced after Decem-
ber 31, 2014. 
(2) MODIFICATIONS.—The amendments made by 
subsections (b) and (c) shall apply to coal produced 
and sold after December 31, 2015, in taxable years 
ending after such date. 
(3) CREDIT
ALLOWED
AGAINST
ALTERNATIVE 
MINIMUM TAX.—The amendments made by subsection 
(d) shall apply to credits determined for taxable years 
beginning after December 31, 2015. 
SEC. 187. EXTENSION OF CREDITS WITH RESPECT TO FA-
CILITIES PRODUCING ENERGY FROM CER-
TAIN RENEWABLE RESOURCES. 
(a) IN GENERAL.—The following provisions of section 
45(d) are each amended by striking ‘‘January 1, 2015’’ 
each place it appears and inserting ‘‘January 1, 2017’’: 
(1) Paragraph (2)(A). 
(2) Paragraph (3)(A). 
(3) Paragraph (4)(B). 
(4) Paragraph (6). 
(5) Paragraph (7). 
(6) Paragraph (9). 
(7) Paragraph (11)(B).
2022 
(b) EXTENSION OF ELECTION TO TREAT QUALIFIED 
FACILITIES
AS
ENERGY
PROPERTY.—Section 
48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2015’’ 
and inserting ‘‘January 1, 2017’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall take effect on January 1, 2015. 
SEC. 188. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
NEW HOMES. 
(a) IN GENERAL.—Section 45L(g) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to homes acquired after December 31, 
2014. 
SEC. 189. EXTENSION OF SPECIAL ALLOWANCE FOR SEC-
OND GENERATION BIOFUEL PLANT PROP-
ERTY. 
(a) IN GENERAL.—Section 168(l)(2)(D) is amended by 
striking ‘‘January 1, 2015’’ and inserting ‘‘January 1, 
2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2014.
2023 
SEC. 190. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 
BUILDINGS DEDUCTION. 
(a) IN GENERAL.—Section 179D(h) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to property placed in service after 
December 31, 2014. 
SEC. 191. EXTENSION OF SPECIAL RULE FOR SALES OR DIS-
POSITIONS TO IMPLEMENT FERC OR STATE 
ELECTRIC 
RESTRUCTURING 
POLICY 
FOR 
QUALIFIED ELECTRIC UTILITIES. 
(a) IN GENERAL.—Section 451(i)(3) is amended by 
striking ‘‘January 1, 2015’’ and inserting ‘‘January 1, 
2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to dispositions after December 31, 2014. 
SEC. 192. EXTENSION OF EXCISE TAX CREDITS RELATING 
TO ALTERNATIVE FUELS. 
(a) EXTENSION OF ALTERNATIVE FUELS EXCISE TAX 
CREDITS.— 
(1) IN
GENERAL.—Sections 6426(d)(5) and 
6426(e)(3) are each amended by striking ‘‘December 
31, 2014’’ and inserting ‘‘December 31, 2016’’. 
(2) 
OUTLAY
PAYMENTS
FOR
ALTERNATIVE 
FUELS.—Section 6427(e)(6)(C) is amended by strik-
2024 
ing ‘‘December 31, 2014’’ and inserting ‘‘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 2015.—Notwithstanding any 
other provision of law, in the case of any alternative fuel 
credit properly determined under section 6426(d) of the In-
ternal Revenue Code of 1986 for the period beginning on 
January 1, 2015, and ending on December 31, 2015, such 
credit shall be allowed, and any refund or payment attrib-
utable 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 dele-
gate) 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 pe-
riods 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 Sec-
retary) 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
2025 
shall be paid with interest from such date determined by 
using the overpayment rate and method under section 6621 
of such Code. 
SEC. 193. EXTENSION OF CREDIT FOR NEW QUALIFIED 
FUEL CELL MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30B(k)(1) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property purchased after December 
31, 2014. 
TITLE II—PROGRAM INTEGRITY 
SEC. 201. MODIFICATION OF FILING DATES OF RETURNS 
AND STATEMENTS RELATING TO EMPLOYEE 
WAGE 
INFORMATION 
AND 
NONEMPLOYEE 
COMPENSATION TO IMPROVE COMPLIANCE. 
(a) IN GENERAL.—Section 6071 is amended by redes-
ignating subsection (c) as subsection (d), and by inserting 
after subsection (b) the following new subsection: 
‘‘(c) RETURNS AND STATEMENTS RELATING TO EM-
PLOYEE WAGE INFORMATION
AND NONEMPLOYEE COM-
PENSATION.—Forms W–2 and W–3 and any returns or 
statements required by the Secretary to report nonemployee 
compensation shall be filed on or before January 31 of the
2026 
year following the calendar year to which such returns re-
late.’’. 
(b) DATE FOR CERTAIN REFUNDS.—Section 6402 is 
amended by adding at the end the following new subsection: 
‘‘(m) EARLIEST DATE FOR CERTAIN REFUNDS.—No 
credit or refund of an overpayment for a taxable year shall 
be made to a taxpayer before the 15th day of the second 
month following the close of such taxable year if a credit 
is allowed to such taxpayer under section 24 (by reason of 
subsection (d) thereof) or 32 for such taxable year.’’. 
(c) CONFORMING AMENDMENT.—Section 6071(b) is 
amended by striking ‘‘subparts B and C of part III of this 
subchapter’’ and inserting ‘‘subpart B of part III of this 
subchapter (other than returns and statements required to 
be filed with respect to nonemployee compensation)’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to returns and statements relating to calendar 
years beginning after the date of the enactment of this 
Act. 
(2) DATE FOR CERTAIN REFUNDS.—The amend-
ment made by subsection (b) shall apply to credits or 
refunds made after December 31, 2016.
2027 
SEC. 202. SAFE HARBOR FOR DE MINIMIS ERRORS ON IN-
FORMATION RETURNS AND PAYEE STATE-
MENTS. 
(a) IN GENERAL.—Section 6721(c) is amended by add-
ing at the end the following new paragraph: 
‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS 
ERRORS.— 
‘‘(A) IN GENERAL.—If, with respect to an 
information return filed with the Secretary— 
‘‘(i) there are 1 or more failures de-
scribed in subsection (a)(2)(B) relating to 
an incorrect dollar amount, 
‘‘(ii) no single amount in error differs 
from the correct amount by more than $100, 
and 
‘‘(iii) no single amount reported for 
tax withheld on any information return dif-
fers from the correct amount by more than 
$25, 
then no correction shall be required and, for pur-
poses of this section, such return shall be treated 
as having been filed with all of the correct re-
quired information. 
‘‘(B) EXCEPTION.—Subparagraph (A) shall 
not apply with respect to any incorrect dollar 
amount to the extent that such error relates to an
2028 
amount with respect to which an election is 
made under section 6722(c)(3)(B). 
‘‘(C) REGULATORY
AUTHORITY.—The Sec-
retary may issue regulations to prevent the abuse 
of the safe harbor under this paragraph, includ-
ing regulations providing that this paragraph 
shall not apply to the extent necessary to prevent 
any such abuse.’’. 
(b) FAILURE TO FURNISH CORRECT PAYEE STATE-
MENT.—Section 6722(c) is amended by adding at the end 
the following new paragraph: 
‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS 
ERRORS.— 
‘‘(A) IN GENERAL.—If, with respect to any 
payee statement— 
‘‘(i) there are 1 or more failures de-
scribed in subsection (a)(2)(B) relating to 
an incorrect dollar amount, 
‘‘(ii) no single amount in error differs 
from the correct amount by more than $100, 
and 
‘‘(iii) no single amount reported for 
tax withheld on any information return dif-
fers from the correct amount by more than 
$25,
2029 
then no correction shall be required and, for pur-
poses of this section, such statement shall be 
treated as having been filed with all of the cor-
rect required information. 
‘‘(B) EXCEPTION.—Subparagraph (A) shall 
not apply to any payee statement if the person 
to whom such statement is required to be fur-
nished makes an election (at such time and in 
such manner as the Secretary may prescribe) 
that subparagraph (A) not apply with respect to 
such statement. 
‘‘(C) REGULATORY
AUTHORITY.—The Sec-
retary may issue regulations to prevent the abuse 
of the safe harbor under this paragraph, includ-
ing regulations providing that this paragraph 
shall not apply to the extent necessary to prevent 
any such abuse.’’. 
(c) APPLICATION TO BROKER REPORTING OF BASIS.— 
Section 6045(g)(2)(B) is amended by adding at the end the 
following new clause: 
‘‘(iii) TREATMENT
OF
UNCORRECTED 
DE MINIMIS ERRORS.—Except as otherwise 
provided by the Secretary, the customer’s 
adjusted basis shall be determined by treat-
ing any incorrect dollar amount which is
2030 
not required to be corrected by reason of sec-
tion 6721(c)(3) or section 6722(c)(3) as the 
correct amount.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 6721(c) is amended by striking ‘‘EX-
CEPTION FOR DE MINIMIS FAILURES TO INCLUDE 
ALL REQUIRED INFORMATION’’ in the heading and 
inserting ‘‘EXCEPTIONS FOR CERTAIN DE MINIMIS 
FAILURES’’. 
(2) Section 6721(c)(1) is amended by striking 
‘‘IN GENERAL’’ in the heading and inserting ‘‘EXCEP-
TION FOR DE MINIMIS FAILURE TO INCLUDE ALL RE-
QUIRED INFORMATION’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to returns required to be filed, and payee 
statements required to be provided, after December 31, 2016. 
SEC. 203. REQUIREMENTS FOR THE ISSUANCE OF ITINS. 
(a) IN GENERAL.—Section 6109 is amended by adding 
at the end the following new subsection: 
‘‘(i) SPECIAL RULES RELATING TO THE ISSUANCE OF 
ITINS.— 
‘‘(1) IN GENERAL.—The Secretary is authorized 
to issue an individual taxpayer identification number 
to an individual only if the applicant submits an ap-
2031 
plication, using such form as the Secretary may re-
quire and including the required documentation— 
‘‘(A) in the case of an applicant not de-
scribed in subparagraph (B)— 
‘‘(i) in person to an employee of the 
Internal Revenue Service or a community- 
based certified acceptance agent approved 
by the Secretary, or 
‘‘(ii) by mail, pursuant to rules pre-
scribed by the Secretary, or 
‘‘(B) in the case of an applicant who resides 
outside of the United States, by mail or in per-
son to an employee of the Internal Revenue Serv-
ice or a designee of the Secretary at a United 
States diplomatic mission or consular post. 
‘‘(2) REQUIRED DOCUMENTATION.—For purposes 
of this subsection— 
‘‘(A) IN GENERAL.—The term ‘required doc-
umentation’ includes such documentation as the 
Secretary may require that proves the individ-
ual’s identity, foreign status, and residency. 
‘‘(B) VALIDITY OF DOCUMENTS.—The Sec-
retary may accept only original documents or 
certified copies meeting the requirements of the 
Secretary.
2032 
‘‘(3) TERM OF ITIN.— 
‘‘(A) IN GENERAL.—An individual taxpayer 
identification number issued after December 31, 
2012, shall remain in effect unless the individual 
to whom such number is issued does not file a 
return of tax (or is not included as a dependent 
on the return of tax of another taxpayer) for 3 
consecutive taxable years. In the case of an indi-
vidual described in the preceding sentence, such 
number shall expire on the last day of such third 
consecutive taxable year. 
‘‘(B) SPECIAL RULE FOR EXISTING ITINS.— 
In the case of an individual with respect to 
whom an individual taxpayer identification 
number was issued before January 1, 2013, such 
number shall remain in effect until the earlier 
of— 
‘‘(i) the applicable date, or 
‘‘(ii) if the individual does not file a 
return of tax (or is not included as a de-
pendent on the return of tax of another tax-
payer) for 3 consecutive taxable years, the 
earlier of— 
‘‘(I) the last day of such third 
consecutive taxable year, or
2033 
‘‘(II) the last day of the taxable 
year that includes the date of the en-
actment of this subsection. 
‘‘(C) APPLICABLE DATE.—For purposes of 
subparagraph (B), the term ‘applicable date’ 
means— 
‘‘(i) January 1, 2017, in the case of an 
individual taxpayer identification number 
issued before January 1, 2008, 
‘‘(ii) January 1, 2018, in the case of 
an individual taxpayer identification num-
ber issued in 2008, 
‘‘(iii) January 1, 2019, in the case of 
an individual taxpayer identification num-
ber issued in 2009 or 2010, and 
‘‘(iv) January 1, 2020, in the case of 
an individual taxpayer identification num-
ber issued in 2011 or 2012. 
‘‘(4) DISTINGUISHING ITINS ISSUED SOLELY FOR 
PURPOSES
OF
TREATY
BENEFITS.—The Secretary 
shall implement a system that ensures that individual 
taxpayer identification numbers issued solely for pur-
poses of claiming tax treaty benefits are used only for 
such purposes, by distinguishing such numbers from
2034 
other individual taxpayer identification numbers 
issued.’’. 
(b) AUDIT BY TIGTA.—Not later than 2 years after 
the date of the enactment of this Act, and every 2 years 
thereafter, the Treasury Inspector General for Tax Adminis-
tration shall conduct an audit of the program of the Inter-
nal Revenue Service for the issuance of individual taxpayer 
identification numbers pursuant to section 6109(i) of the 
Internal Revenue Code of 1986 (as added by this section) 
and report the results of such audit to the Committee on 
Finance of the Senate and the Committee on the Ways and 
Means of the House of Representatives. 
(c) 
COMMUNITY-BASED
CERTIFIED
ACCEPTANCE 
AGENTS.—The Secretary of the Treasury, or the Secretary’s 
delegate, shall maintain a program for training and ap-
proving community-based certified acceptance agents for 
purposes of section 6109(i)(1)(A)(i) of the Internal Revenue 
Code of 1986 (as added by this section). Persons eligible 
to be acceptance agents under such program include— 
(1) financial institutions (as defined in section 
265(b)(5) of such Code and the regulations there-
under), 
(2) colleges and universities which are described 
in section 501(c)(3) of such Code and exempt from 
taxation under section 501(a) of such Code,
2035 
(3) Federal agencies (as defined in section 
6402(h) of such Code), 
(4) State and local governments, including agen-
cies responsible for vital records, 
(5) community-based organizations which are 
described in subsection (c)(3) or (d) of section 501 of 
such Code and exempt from taxation under section 
501(a) of such Code, 
(6) persons that provide assistance to taxpayers 
in the preparation of their tax returns, and 
(7) other persons or categories of persons as au-
thorized by regulations or other guidance of the Sec-
retary of the Treasury. 
(d) ITIN STUDY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, or the Secretary’s delegate, shall conduct a study 
on the effectiveness of the application process for indi-
vidual taxpayer identification numbers before the im-
plementation of the amendments made by this section, 
the effects of the amendments made by this section on 
such application process, the comparative effectiveness 
of an in-person review process for application versus 
other methods of reducing fraud in the ITIN program 
and improper payments to ITIN holders as a result,
2036 
and possible administrative and legislative rec-
ommendations to improve such process. 
(2) SPECIFIC REQUIREMENTS.—Such study shall 
include an evaluation of the following: 
(A) Possible administrative and legislative 
recommendations to reduce fraud and improper 
payments through the use of individual taxpayer 
identification numbers (hereinafter referred to as 
‘‘ITINs’’). 
(B) If data supports an in-person initial 
review of ITIN applications to reduce fraud and 
improper payments, the administrative and leg-
islative steps needed to implement such an in- 
person initial review of ITIN applications, in 
conjunction with an expansion of the commu-
nity-based certified acceptance agent program 
under subsection (c), with a goal of transitioning 
to such a program by 2020. 
(C) Strategies for more efficient processing 
of ITIN applications. 
(D) The acceptance agent program as in ex-
istence on the date of the enactment of this Act 
and ways to expand the geographic availability 
of agents through the community-based certified 
acceptance agent program under subsection (c).
2037 
(E) Strategies for the Internal Revenue 
Service to work with other Federal agencies, 
State and local governments, and other organiza-
tions and persons described in subsection (c) to 
encourage participation in the community-based 
certified acceptance agent program under sub-
section (c) to facilitate in-person initial review 
of ITIN applications. 
(F) Typical characteristics (derived from 
Form W–7 and other sources) of mail applica-
tions for ITINs as compared with typical char-
acteristics of in-person applications. 
(G) Typical characteristics (derived from 17 
Form W–7 and other sources) of ITIN applica-
tions before the Internal Revenue Service revised 
its application procedures in 2012 as compared 
with typical characteristics of ITIN applications 
made after such revisions went into effect. 
(3) REPORT.—The Secretary, or the Secretary’s 
delegate, shall submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of 
the House of Representatives a report detailing the 
study under paragraph (1) and its findings not later 
than 1 year after the date of the enactment of this 
Act.
2038 
(4) ADMINISTRATIVE STEPS.—The Secretary of 
the Treasury shall implement any administrative 
steps identified by the report under paragraph (3) not 
later than 180 days after submitting such report. 
(e) MATHEMATICAL OR CLERICAL ERROR AUTHOR-
ITY.—Paragraph (2) of section 6213(g) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘and’’ at the 
end of subparagraph (M), by striking the period at the end 
of subparagraph (N) and inserting ‘‘, and’’, and by insert-
ing after subparagraph (N) the following new subpara-
graph: 
‘‘(O) the inclusion on a return of an indi-
vidual taxpayer identification number issued 
under section 6109(i) which has expired, been re-
voked by the Secretary, or is otherwise invalid.’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply to applications for individual taxpayer 
identification numbers made after the date of the enactment 
of this Act. 
SEC. 204. PREVENTION OF RETROACTIVE CLAIMS OF 
EARNED INCOME CREDIT AFTER ISSUANCE 
OF SOCIAL SECURITY NUMBER. 
(a) IN GENERAL.—Section 32(m) is amended by in-
serting ‘‘on or before the due date for filing the return for 
the taxable year’’ before the period at the end.
2039 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by this section shall 
apply to any return of tax, and any amendment or 
supplement to any return of tax, which is filed after 
the date of the enactment of this Act. 
(2) EXCEPTION
FOR
TIMELY-FILED
2015
RE-
TURNS.—The amendment made by this section shall 
not apply to any return of tax (other than an amend-
ment or supplement to any return of tax) for any 
taxable year which includes the date of the enactment 
of this Act if such return is filed on or before the due 
date for such return of tax. 
SEC. 205. PREVENTION OF RETROACTIVE CLAIMS OF CHILD 
TAX CREDIT. 
(a) QUALIFYING CHILD IDENTIFICATION REQUIRE-
MENT.—Section 24(e) is amended by inserting ‘‘and such 
taxpayer identification number was issued on or before the 
due date for filing such return’’ before the period at the end. 
(b) TAXPAYER IDENTIFICATION REQUIREMENT.—Sec-
tion 24(e), as amended by subsection (a) is amended— 
(1) by striking ‘‘IDENTIFICATION
REQUIRE-
MENT.—No credit shall be allowed’’ and inserting the 
following: ‘‘IDENTIFICATION REQUIREMENTS.—
2040 
‘‘(1) QUALIFYING
CHILD
IDENTIFICATION
RE-
QUIREMENT.—No credit shall be allowed’’, and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) 
TAXPAYER
IDENTIFICATION
REQUIRE-
MENT.—No credit shall be allowed under this section 
if the identifying number of the taxpayer was issued 
after the due date for filing the return for the taxable 
year.’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to any return of tax, and any 
amendment or supplement to any return of tax, 
which is filed after the date of the enactment of this 
Act. 
(2) EXCEPTION
FOR
TIMELY-FILED
2015
RE-
TURNS.—The amendments made by this section shall 
not apply to any return of tax (other than an amend-
ment or supplement to any return of tax) for any 
taxable year which includes the date of the enactment 
of this Act if such return is filed on or before the due 
date for such return of tax. 
SEC. 206. PREVENTION OF RETROACTIVE CLAIMS OF AMER-
ICAN OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A(i) is amended—
2041 
(1) by striking paragraph (6), and 
(2) by inserting after paragraph (5) the fol-
lowing new paragraph: 
‘‘(6) IDENTIFICATION NUMBERS.— 
‘‘(A) STUDENT.—The requirements of sub-
section (g)(1) shall not be treated as met with re-
spect to the Hope Scholarship Credit unless the 
individual’s taxpayer identification number was 
issued on or before the due date for filing the re-
turn of tax for the taxable year. 
‘‘(B) TAXPAYER.—No Hope Scholarship 
Credit shall be allowed under this section if the 
identifying number of the taxpayer was issued 
after the due date for filing the return for the 
taxable year.’’. 
(b) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by subsection (a)(2) 
shall apply to any return of tax, and any amendment 
or supplement to any return of tax, which is filed 
after the date of the enactment of this Act. 
(2) EXCEPTION
FOR
TIMELY-FILED
2015
RE-
TURNS.—The amendment made by subsection (a)(2) 
shall not apply to any return of tax (other than an 
amendment or supplement to any return of tax) for
2042 
any taxable year which includes the date of the enact-
ment of this Act if such return is filed on or before 
the due date for such return of tax. 
(3) REPEAL
OF
DEADWOOD.—The amendment 
made by subsection (a)(1) shall take effect on the date 
of the enactment of this Act. 
SEC. 207. PROCEDURES TO REDUCE IMPROPER CLAIMS. 
(a) 
DUE
DILIGENCE
REQUIREMENTS.—Section 
6695(g) is amended— 
(1) by striking ‘‘section 32’’and inserting ‘‘sec-
tion 24, 25A(a)(1), or 32’’, and 
(2) in the heading by inserting ‘‘CHILD TAX 
CREDIT; AMERICAN OPPORTUNITY TAX CREDIT; AND’’ 
before ‘‘EARNED INCOME CREDIT’’. 
(b) RETURN PREPARER DUE DILIGENCE STUDY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, or his delegate, shall conduct a study of the effec-
tiveness of tax return preparer due diligence require-
ments for claiming the earned income tax credit 
under section 32 of the Internal Revenue Code of 
1986, the child tax credit under section 24 of such 
Code, and the American opportunity tax credit under 
section 25A(i) of such Code. 
(2) REQUIREMENTS.—Such study shall include 
an evaluation of the following:
2043 
(A) The effectiveness of the questions cur-
rently asked as part of the due-diligence require-
ment with respect to minimizing error and 
fraud. 
(B) Whether all such questions are nec-
essary and support improved compliance. 
(C) The comparative effectiveness of such 
questions relative to other means of determining 
(i) eligibility for these tax credits and (ii) the 
correct amount of tax credit. 
(D) Whether due diligence of this type 
should apply to other methods of tax filing and 
whether such requirements should vary based on 
the methods to increase effectiveness. 
(E) The effectiveness of the preparer penalty 
under section 6695(g) in enforcing the due dili-
gence requirements. 
(3) REPORT.—The Secretary, or his delegate, 
shall submit to the Committee on Ways and Means of 
the House of Representatives and the Committee on 
Finance of the Senate a report detailing the study 
and its findings— 
(A) in the case of the portion of the study 
that relates to the earned income tax credit, not
2044 
later than 1 year after the date of enactment of 
this Act, and 
(B) in the case of the portions of the study 
that relate to the child tax credit and the Amer-
ican opportunity tax credit, not later than 2 
years after the date of the enactment of this Act. 
(c) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015. 
SEC. 208. RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY 
CLAIMED CREDITS IN PRIOR YEAR. 
(a) RESTRICTIONS.— 
(1) CHILD TAX CREDIT.—Section 24 is amended 
by adding at the end the following new subsection: 
‘‘(g) RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY 
CLAIMED CREDIT IN PRIOR YEAR.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT OR 
RECKLESS CLAIMS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section for any taxable year in 
the disallowance period. 
‘‘(B) DISALLOWANCE
PERIOD.—For pur-
poses of subparagraph (A), the disallowance pe-
riod is—
2045 
‘‘(i) the period of 10 taxable years after 
the most recent taxable year for which there 
was a final determination that the tax-
payer’s claim of credit under this section 
was due to fraud, and 
‘‘(ii) the period of 2 taxable years after 
the most recent taxable year for which there 
was a final determination that the tax-
payer’s claim of credit under this section 
was due to reckless or intentional disregard 
of rules and regulations (but not due to 
fraud). 
‘‘(2) TAXPAYERS
MAKING
IMPROPER
PRIOR 
CLAIMS.—In the case of a taxpayer who is denied 
credit under this section for any taxable year as a re-
sult of the deficiency procedures under subchapter B 
of chapter 63, no credit shall be allowed under this 
section for any subsequent taxable year unless the tax-
payer provides such information as the Secretary 
may require to demonstrate eligibility for such cred-
it.’’. 
(2) AMERICAN OPPORTUNITY TAX CREDIT.—Sec-
tion 25A(i), as amended by the preceding provisions 
of this Act, is amended by adding at the end the fol-
lowing new paragraph:
2046 
‘‘(7) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY CLAIMED CREDIT IN PRIOR YEAR.— 
‘‘(A) TAXPAYERS MAKING PRIOR FRAUDU-
LENT OR RECKLESS CLAIMS.— 
‘‘(i) IN GENERAL.—No credit shall be 
allowed under this section for any taxable 
year in the disallowance period. 
‘‘(ii) 
DISALLOWANCE
PERIOD.—For 
purposes of clause (i), the disallowance pe-
riod is— 
‘‘(I) the period of 10 taxable years 
after the most recent taxable year for 
which there was a final determination 
that the taxpayer’s claim of credit 
under this section was due to fraud, 
and 
‘‘(II) the period of 2 taxable years 
after the most recent taxable year for 
which there was a final determination 
that the taxpayer’s claim of credit 
under this section was due to reckless 
or intentional disregard of rules and 
regulations (but not due to fraud). 
‘‘(B) TAXPAYERS MAKING IMPROPER PRIOR 
CLAIMS.—In the case of a taxpayer who is de-
2047 
nied credit under this section for any taxable 
year as a result of the deficiency procedures 
under subchapter B of chapter 63, no credit shall 
be allowed under this section for any subsequent 
taxable year unless the taxpayer provides such 
information as the Secretary may require to 
demonstrate eligibility for such credit.’’. 
(b) MATH ERROR AUTHORITY.— 
(1) EARNED
INCOME
TAX
CREDIT.—Section 
6213(g)(2)(K) is amended by inserting before the 
comma at the end the following: ‘‘or an entry on the 
return claiming the credit under section 32 for a tax-
able year for which the credit is disallowed under sub-
section (k)(1) thereof’’. 
(2) AMERICAN OPPORTUNITY TAX CREDIT AND 
CHILD TAX CREDIT.—Section 6213(g)(2), as amended 
by the preceding provisions of this Act, is amended by 
striking ‘‘and’’ at the end of subparagraph (N), by 
striking the period at the end of subparagraph (O), 
and by inserting after subparagraph (O) the following 
new subparagraphs: 
‘‘(P) an omission of information required 
by section 24(h)(2) or an entry on the return 
claiming the credit under section 24 for a tax-
2048 
able year for which the credit is disallowed 
under subsection (h)(1) thereof, and 
‘‘(Q) an omission of information required 
by section 25A(i)(8)(B) or an entry on the re-
turn claiming the credit determined under sec-
tion 25A(i) for a taxable year for which the cred-
it is disallowed under paragraph (8)(A) there-
of.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015. 
SEC. 209. TREATMENT OF CREDITS FOR PURPOSES OF CER-
TAIN PENALTIES. 
(a) APPLICATION OF UNDERPAYMENT PENALTIES.— 
Section 6664(a) is amended by adding at the end the fol-
lowing: ‘‘A rule similar to the rule of section 6211(b)(4) 
shall apply for purposes of this subsection.’’. 
(b) PENALTY
FOR ERRONEOUS CLAIM
OF CREDIT 
MADE APPLICABLE TO EARNED INCOME CREDIT.—Section 
6676(a) is amended by striking ‘‘(other than a claim for 
a refund or credit relating to the earned income credit 
under section 32)’’. 
(c) REASONABLE CAUSE EXCEPTION FOR ERRONEOUS 
CLAIM FOR REFUND OR CREDIT.—
2049 
(1) IN GENERAL.—Section 6676(a) is amended 
by striking ‘‘has a reasonable basis’’ and inserting ‘‘is 
due to reasonable cause’’. 
(2) NONECONOMIC SUBSTANCE TRANSACTIONS.— 
Section 6676(c) is amended by striking ‘‘having a 
reasonable basis’’ and inserting ‘‘due to reasonable 
cause’’. 
(d) EFFECTIVE DATES.— 
(1) UNDERPAYMENT
PENALTIES.—The amend-
ment made by subsection (a) shall apply to— 
(A) returns filed after the date of the enact-
ment of this Act, and 
(B) returns filed on or before such date if 
the period specified in section 6501 of the Inter-
nal Revenue Code of 1986 for assessment of the 
taxes with respect to which such return relates 
has not expired as of such date. 
(2) PENALTY FOR ERRONEOUS CLAIM OF CRED-
IT.—The amendment made by subsection (b) shall 
apply to claims filed after the date of the enactment 
of this Act.
2050 
SEC. 210. INCREASE THE PENALTY APPLICABLE TO PAID 
TAX PREPARERS WHO ENGAGE IN WILLFUL 
OR RECKLESS CONDUCT. 
(a) IN GENERAL.—Section 6694(b)(1)(B) is amended 
by striking ‘‘50 percent’’ and inserting ‘‘75 percent’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to returns prepared for taxable years 
ending after the date of the enactment of this Act. 
SEC. 211. EMPLOYER IDENTIFICATION NUMBER REQUIRED 
FOR AMERICAN OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A(i)(6), as added by this 
Act, is amended by adding at the end the following new 
subparagraph: 
‘‘(C) INSTITUTION.—No Hope Scholarship 
Credit shall be allowed under this section unless 
the taxpayer includes the employer identification 
number of any institution to which qualified tui-
tion and related expenses were paid with respect 
to the individual.’’. 
(b) INFORMATION REPORTING.—Section 6050S(b)(2) 
is amended by striking ‘‘and’’ at the end of subparagraph 
(B), by redesignating subparagraph (C) as subparagraph 
(D), and by inserting after subparagraph (B) the following 
new subparagraph: 
‘‘(C) the employer identification number of 
the institution, and’’.
2051 
(c) EFFECTIVE DATE.— 
(1) SUBSECTION (a).—The amendments made by 
subsection (a) shall apply to taxable years beginning 
after December 31, 2015. 
(2) SUBSECTION (b).—The amendments made by 
subsection (b) shall apply to expenses paid after De-
cember 31, 2015, for education furnished in academic 
periods beginning after such date. 
SEC. 212. HIGHER EDUCATION INFORMATION REPORTING 
ONLY TO INCLUDE QUALIFIED TUITION AND 
RELATED EXPENSES ACTUALLY PAID. 
(a) IN
GENERAL.—Section 6050S(b)(2)(B)(i) is 
amended by striking ‘‘or the aggregate amount billed’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (b) shall apply to expenses paid after December 31, 
2015, for education furnished in academic periods begin-
ning after such date. 
TITLE III—MISCELLANEOUS 
PROVISIONS 
Subtitle A—Family Tax Relief 
SEC. 301. EXCLUSION FOR AMOUNTS RECEIVED UNDER THE 
WORK COLLEGES PROGRAM. 
(a) IN GENERAL.—Paragraph (2) of section 117(c) is 
amended by striking ‘‘or’’ at the end of subparagraph (A), 
by striking the period at the end of subparagraph (B) and
2052 
inserting ‘‘, or’’, and by adding at the end the following 
new subparagraph: 
‘‘(C) a comprehensive student work-learn-
ing-service program (as defined in section 448(e) 
of the Higher Education Act of 1965) operated 
by a work college (as defined in such section).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts received in taxable years be-
ginning after the date of the enactment of this Act. 
SEC. 302. IMPROVEMENTS TO SECTION 529 ACCOUNTS. 
(a) COMPUTER TECHNOLOGY AND EQUIPMENT PERMA-
NENTLY ALLOWED AS A QUALIFIED HIGHER EDUCATION 
EXPENSE FOR SECTION 529 ACCOUNTS.— 
(1) IN
GENERAL.—Section 529(e)(3)(A)(iii) is 
amended to read as follows: 
‘‘(iii) expenses for the purchase of com-
puter or peripheral equipment (as defined 
in section 168(i)(2)(B)), computer software 
(as defined in section 197(e)(3)(B)), or 
Internet access and related services, if such 
equipment, software, or services are to be 
used primarily by the beneficiary during 
any of the years the beneficiary is enrolled 
at an eligible educational institution.’’.
2053 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to taxable years beginning 
after December 31, 2014. 
(b) ELIMINATION OF DISTRIBUTION AGGREGATION RE-
QUIREMENTS.— 
(1) IN GENERAL.—Section 529(c)(3) is amended 
by striking subparagraph (D). 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to distributions after De-
cember 31, 2014. 
(c) RECONTRIBUTION OF REFUNDED AMOUNTS.— 
(1) IN GENERAL.—Section 529(c)(3), as amended 
by subsection (b), is amended by adding at the end 
the following new subparagraph: 
‘‘(D) SPECIAL
RULE
FOR
CONTRIBUTIONS 
OF REFUNDED AMOUNTS.—In the case of a bene-
ficiary who receives a refund of any qualified 
higher education expenses from an eligible edu-
cational institution, subparagraph (A) shall not 
apply to that portion of any distribution for the 
taxable year which is recontributed to a qualified 
tuition program of which such individual is a 
beneficiary, but only to the extent such recon-
tribution is made not later than 60 days after
2054 
the date of such refund and does not exceed the 
refunded amount.’’. 
(2) EFFECTIVE DATE.— 
(A) IN
GENERAL.—The amendment made 
by this subsection shall apply with respect to re-
funds of qualified higher education expenses after 
December 31, 2014. 
(B) TRANSITION RULE.—In the case of a re-
fund of qualified higher education expenses re-
ceived after December 31, 2014, and before the 
date of the enactment of this Act, section 
529(c)(3)(D) of the Internal Revenue Code of 
1986 (as added by this subsection) shall be ap-
plied by substituting ‘‘not later than 60 days 
after the date of the enactment of this subpara-
graph’’ for ‘‘not later than 60 days after the date 
of such refund’’. 
SEC. 303. ELIMINATION OF RESIDENCY REQUIREMENT FOR 
QUALIFIED ABLE PROGRAMS. 
(a) IN GENERAL.—Section 529A(b)(1) is amended by 
striking subparagraph (C), by inserting ‘‘and’’ at the end 
of subparagraph (B), and by redesignating subparagraph 
(D) as subparagraph (C). 
(b) CONFORMING AMENDMENTS.—
2055 
(1) The second sentence of section 529A(d)(3) is 
amended by striking ‘‘and State of residence’’. 
(2) Section 529A(e) is amended by striking 
paragraph (7). 
(c) TECHNICAL AMENDMENTS.— 
(1) Section 529A(d)(4) is amended by striking 
‘‘section 4’’ and inserting ‘‘section 103’’. 
(2) Section 529A(c)(1)(C)(i) is amended by 
striking ‘‘family member’’ and inserting ‘‘member of 
the family’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
SEC. 304. EXCLUSION FOR WRONGFULLY INCARCERATED 
INDIVIDUALS. 
(a) IN GENERAL.—Part III of subchapter B of chapter 
1 is amended by inserting before section 140 the following 
new section: 
‘‘SEC. 139F. CERTAIN AMOUNTS RECEIVED BY WRONGFULLY 
INCARCERATED INDIVIDUALS. 
‘‘(a) EXCLUSION FROM GROSS INCOME.—In the case 
of any wrongfully incarcerated individual, gross income 
shall not include any civil damages, restitution, or other 
monetary award (including compensatory or statutory 
damages and restitution imposed in a criminal matter) re-
2056 
lating to the incarceration of such individual for the covered 
offense for which such individual was convicted. 
‘‘(b) WRONGFULLY INCARCERATED INDIVIDUAL.—For 
purposes of this section, the term ‘wrongfully incarcerated 
individual’ means an individual— 
‘‘(1) who was convicted of a covered offense, 
‘‘(2) who served all or part of a sentence of im-
prisonment relating to that covered offense, and 
‘‘(3)(A) who was pardoned, granted clemency, or 
granted amnesty for that covered offense because that 
individual was innocent of that covered offense, or 
‘‘(B)(i) for whom the judgment of conviction for 
that covered offense was reversed or vacated, and 
‘‘(ii) for whom the indictment, information, or 
other accusatory instrument for that covered offense 
was dismissed or who was found not guilty at a new 
trial after the judgment of conviction for that covered 
offense was reversed or vacated. 
‘‘(c) COVERED OFFENSE.—For purposes of this sec-
tion, the term ‘covered offense’ means any criminal offense 
under Federal or State law, and includes any criminal of-
fense arising from the same course of conduct as that crimi-
nal offense.’’. 
(b) CONFORMING AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 is amended by
2057 
inserting after the item relating to section 139E the fol-
lowing new item: 
‘‘Sec. 139F. Certain amounts received by wrongfully incarcerated individuals.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning before, on, 
or after the date of the enactment of this Act. 
(d) WAIVER OF LIMITATIONS.—If the credit or refund 
of any overpayment of tax resulting from the application 
of this Act to a period before the date of enactment of this 
Act is prevented as of such date by the operation of any 
law or rule of law (including res judicata), such credit or 
refund may nevertheless be allowed or made if the claim 
therefor is filed before the close of the 1-year period begin-
ning on the date of the enactment of this Act. 
SEC. 305. CLARIFICATION OF SPECIAL RULE FOR CERTAIN 
GOVERNMENTAL PLANS. 
(a) IN GENERAL.—Paragraph (1) of section 105(j) is 
amended— 
(1) by striking ‘‘the taxpayer’’ and inserting ‘‘a 
qualified taxpayer’’, and 
(2) by striking ‘‘deceased plan participant’s ben-
eficiary’’ and inserting ‘‘deceased employee’s bene-
ficiary (other than an individual described in para-
graph (3)(B))’’.
2058 
(b) QUALIFIED TAXPAYER.—Subsection (j) of section 
105 is amended by adding at the end the following new 
paragraph: 
‘‘(3) QUALIFIED
TAXPAYER.—For purposes of 
paragraph (1), with respect to an accident or health 
plan described in paragraph (2), the term ‘qualified 
taxpayer’ means a taxpayer who is— 
‘‘(A) an employee, or 
‘‘(B) the spouse, dependent (as defined for 
purposes of subsection (b)), or child (as defined 
for purposes of such subsection) of an employee.’’. 
(c) APPLICATION
TO POLITICAL SUBDIVISIONS
OF 
STATES.—Paragraph (2) of section 105(j) is amended— 
(1) by inserting ‘‘or established by or on behalf 
of a State or political subdivision thereof’’ after ‘‘pub-
lic retirement system’’, and 
(2) by inserting ‘‘or 501(c)(9)’’ after ‘‘section 
115’’ in subparagraph (B). 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to payments after the date of the enact-
ment of this Act.
2059 
SEC. 306. ROLLOVERS PERMITTED FROM OTHER RETIRE-
MENT PLANS INTO SIMPLE RETIREMENT AC-
COUNTS. 
(a) IN GENERAL.—Section 408(p)(1)(B) is amended 
by inserting ‘‘except in the case of a rollover contribution 
described in subsection (d)(3)(G) or a rollover contribution 
otherwise described in subsection (d)(3) or in section 402(c), 
403(a)(4), 403(b)(8), or 457(e)(16), which is made after the 
2-year period described in section 72(t)(6),’’ before ‘‘with 
respect to which the only contributions allowed’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made after the date of 
the enactment of this Act. 
SEC. 307. TECHNICAL AMENDMENT RELATING TO ROLL-
OVER 
OF 
CERTAIN 
AIRLINE 
PAYMENT 
AMOUNTS. 
(a) IN GENERAL.—Section 1106(a) of the FAA Mod-
ernization and Reform Act of 2012 (26 U.S.C. 408 note) 
is amended by adding at the end the following new para-
graph: 
‘‘(6) SPECIAL RULE FOR CERTAIN AIRLINE PAY-
MENT AMOUNTS.—In the case of any amount which 
became an airline payment amount by reason of the 
amendments made by section 1(b) of Public Law 
113–243 (26 U.S.C. 408 note), paragraph (1) shall be 
applied by substituting ‘(or, if later, within the pe-
2060 
riod beginning on December 18, 2014, and ending on 
the date which is 180 days after the date of enactment 
of the Protecting Americans from Tax Hikes Act of 
2015)’ for ‘(or, if later, within 180 days of the date 
of the enactment of this Act)’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in Public Law 113– 
243 (26 U.S.C. 408 note). 
SEC. 308. TREATMENT OF EARLY RETIREMENT DISTRIBU-
TIONS FOR NUCLEAR MATERIALS COURIERS, 
UNITED STATES CAPITOL POLICE, SUPREME 
COURT POLICE, AND DIPLOMATIC SECURITY 
SPECIAL AGENTS. 
(a) IN GENERAL.—Section 72(t)(10)(B)(ii), as added 
by Public Law 114–26, is amended by striking ‘‘or any’’ 
and inserting ‘‘any’’ and by inserting before the period at 
the end the following: ‘‘, any nuclear materials courier de-
scribed in section 8331(27) or 8401(33) of such title, any 
member of the United States Capitol Police, any member 
of the Supreme Court Police, or any diplomatic security 
special agent of the Department of State’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions after December 31, 2015.
2061 
SEC. 309. PREVENTION OF EXTENSION OF TAX COLLECTION 
PERIOD 
FOR 
MEMBERS 
OF 
THE 
ARMED 
FORCES WHO ARE HOSPITALIZED AS A RE-
SULT OF COMBAT ZONE INJURIES. 
(a) IN GENERAL.—Section 7508(e) is amended by add-
ing at the end the following new paragraph: 
‘‘(3) COLLECTION
PERIOD
AFTER
ASSESSMENT 
NOT EXTENDED AS A RESULT OF HOSPITALIZATION.— 
With respect to any period of continuous qualified 
hospitalization described in subsection (a) and the 
next 180 days thereafter, subsection (a) shall not 
apply in the application of section 6502.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxes assessed before, on, or after the 
date of the enactment of this Act. 
Subtitle B—Real Estate Investment 
Trusts 
SEC. 311. RESTRICTION ON TAX-FREE SPINOFFS INVOLVING 
REITS. 
(a) IN GENERAL.—Section 355 is amended by adding 
at the end the following new subsection: 
‘‘(h) RESTRICTION
ON
DISTRIBUTIONS
INVOLVING 
REAL ESTATE INVESTMENT TRUSTS.— 
‘‘(1) IN GENERAL.—This section (and so much of 
section 356 as relates to this section) shall not apply 
to any distribution if either the distributing corpora-
2062 
tion or controlled corporation is a real estate invest-
ment trust. 
‘‘(2) EXCEPTIONS FOR CERTAIN SPINOFFS.— 
‘‘(A) SPINOFFS OF A REAL ESTATE INVEST-
MENT TRUST BY ANOTHER REAL ESTATE INVEST-
MENT TRUST.—Paragraph (1) shall not apply to 
any distribution if, immediately after the dis-
tribution, the distributing corporation and the 
controlled corporation are both real estate invest-
ment trusts. 
‘‘(B) SPINOFFS OF CERTAIN TAXABLE REIT 
SUBSIDIARIES.—Paragraph (1) shall not apply 
to any distribution if— 
‘‘(i) the distributing corporation has 
been a real estate investment trust at all 
times during the 3-year period ending on 
the date of such distribution, 
‘‘(ii) the controlled corporation has 
been a taxable REIT subsidiary (as defined 
in section 856(l)) of the distributing cor-
poration at all times during such period, 
and 
‘‘(iii) the distributing corporation had 
control (as defined in section 368(c) applied 
by taking into account stock owned directly
2063 
or indirectly, including through one or more 
corporations or partnerships, by the distrib-
uting corporation) of the controlled corpora-
tion at all times during such period. 
A controlled corporation will be treated as meet-
ing the requirements of clauses (ii) and (iii) if 
the stock of such corporation was distributed by 
a taxable REIT subsidiary in a transaction to 
which this section (or so much of section 356 as 
relates to this section) applies and the assets of 
such corporation consist solely of the stock or as-
sets of assets held by one or more taxable REIT 
subsidiaries of the distributing corporation meet-
ing the requirements of clauses (ii) and (iii). For 
purposes of clause (iii), control of a partnership 
means ownership of 80 percent of the profits in-
terest and 80 percent of the capital interests.’’. 
(b) PREVENTION
OF REIT ELECTION FOLLOWING 
TAX-FREE SPIN OFF.—Section 856(c) is amended by redes-
ignating paragraph (8) as paragraph (9) and by inserting 
after paragraph (7) the following new paragraph: 
‘‘(8) ELECTION AFTER TAX-FREE REORGANIZA-
TION.—If a corporation was a distributing corpora-
tion or a controlled corporation (other than a con-
trolled corporation with respect to a distribution de-
2064 
scribed in section 355(h)(2)(A)) with respect to any 
distribution to which section 355 (or so much of sec-
tion 356 as relates to section 355) applied, such cor-
poration (and any successor corporation) shall not be 
eligible to make any election under paragraph (1) for 
any taxable year beginning before the end of the 10- 
year period beginning on the date of such distribu-
tion.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions on or after December 
7, 2015, but shall not apply to any distribution pursuant 
to a transaction described in a ruling request initially sub-
mitted to the Internal Revenue Service on or before such 
date, which request has not been withdrawn and with re-
spect to which a ruling has not been issued or denied in 
its entirety as of such date. 
SEC. 312. REDUCTION IN PERCENTAGE LIMITATION ON AS-
SETS OF REIT WHICH MAY BE TAXABLE REIT 
SUBSIDIARIES. 
(a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amend-
ed by striking ‘‘25 percent’’ and inserting ‘‘20 percent’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017.
2065 
SEC. 313. PROHIBITED TRANSACTION SAFE HARBORS. 
(a) ALTERNATIVE 3–YEAR AVERAGING TEST FOR PER-
CENTAGE OF ASSETS THAT CAN BE SOLD ANNUALLY.— 
(1) 
IN
GENERAL.—Clause 
(iii) 
of 
section 
857(b)(6)(C) is amended by inserting before the semi-
colon at the end the following: ‘‘, or (IV) the trust sat-
isfies the requirements of subclause (II) applied by 
substituting ‘20 percent’ for ‘10 percent’ and the 3- 
year average adjusted bases percentage for the taxable 
year (as defined in subparagraph (G)) does not exceed 
10 percent, or (V) the trust satisfies the requirements 
of subclause (III) applied by substituting ‘20 percent’ 
for ‘10 percent’ and the 3-year average fair market 
value percentage for the taxable year (as defined in 
subparagraph (H)) does not exceed 10 percent’’. 
(2) 3-YEAR AVERAGE ADJUSTED BASES AND FAIR 
MARKET
VALUE
PERCENTAGES.—Paragraph (6) of 
section 857(b) is amended by redesignating subpara-
graphs (G) and (H) as subparagraphs (I) and (J), re-
spectively, and by inserting after subparagraph (F) 
the following new subparagraphs: 
‘‘(G) 3-YEAR
AVERAGE
ADJUSTED
BASES 
PERCENTAGE.—The term ‘3-year average ad-
justed bases percentage’ means, with respect to 
any taxable year, the ratio (expressed as a per-
centage) of—
2066 
‘‘(i) the aggregate adjusted bases (as 
determined for purposes of computing earn-
ings and profits) of property (other than 
sales of foreclosure property or sales to 
which section 1033 applies) sold during the 
3 taxable year period ending with such tax-
able year, divided by 
‘‘(ii) the sum of the aggregate adjusted 
bases (as so determined) of all of the assets 
of the trust as of the beginning of each of 
the 3 taxable years which are part of the pe-
riod referred to in clause (i). 
‘‘(H) 3-YEAR AVERAGE FAIR MARKET VALUE 
PERCENTAGE.—The term ‘3-year average fair 
market value percentage’ means, with respect to 
any taxable year, the ratio (expressed as a per-
centage) of— 
‘‘(i) the fair market value of property 
(other than sales of foreclosure property or 
sales to which section 1033 applies) sold 
during the 3 taxable year period ending 
with such taxable year, divided by 
‘‘(ii) the sum of the fair market value 
of all of the assets of the trust as of the be-
ginning of each of the 3 taxable years which
2067 
are part of the period referred to in clause 
(i).’’. 
(3) CONFORMING AMENDMENTS.—Clause (iv) of 
section 857(b)(6)(D) is amended by adding ‘‘or’’ at 
the end of subclause (III) and by adding at the end 
the following new subclauses: 
‘‘(IV) the trust satisfies the re-
quirements of subclause (II) applied by 
substituting ‘20 percent’ for ‘10 per-
cent’ and the 3-year average adjusted 
bases percentage for the taxable year 
(as defined in subparagraph (G)) does 
not exceed 10 percent, or 
‘‘(V) the trust satisfies the require-
ments of subclause (III) applied by 
substituting ‘20 percent’ for ‘10 per-
cent’ and the 3-year average fair mar-
ket value percentage for the taxable 
year (as defined in subparagraph (H)) 
does not exceed 10 percent,’’. 
(b) APPLICATION OF SAFE HARBORS INDEPENDENT OF 
DETERMINATION WHETHER REAL ESTATE ASSET IS IN-
VENTORY PROPERTY.— 
(1) IN GENERAL.—Subparagraphs (C) and (D) 
of section 857(b)(6) are each amended by striking
2068 
‘‘and which is described in section 1221(a)(1)’’ in the 
matter preceding clause (i). 
(2) NO INFERENCE FROM SAFE HARBORS.—Sub-
paragraph (F) of section 857(b)(6) is amended to 
read as follows: 
‘‘(F) NO
INFERENCE
WITH
RESPECT
TO 
TREATMENT AS INVENTORY PROPERTY.—The de-
termination of whether property is described in 
section 1221(a)(1) shall be made without regard 
to this paragraph.’’. 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by 
subsection (a) shall apply to taxable years beginning 
after the date of the enactment of this Act. 
(2) APPLICATION OF SAFE HARBORS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the amendments made by 
subsection (b) shall take effect as if included in 
section 3051 of the Housing Assistance Tax Act 
of 2008. 
(B) RETROACTIVE APPLICATION OF NO IN-
FERENCE NOT APPLICABLE TO CERTAIN TIMBER 
PROPERTY PREVIOUSLY TREATED AS NOT INVEN-
TORY PROPERTY.—The amendment made by sub-
section (b)(2) shall not apply to any sale of
2069 
property to which section 857(b)(6)(G) of the In-
ternal Revenue Code of 1986 (as in effect on the 
day before the date of the enactment of this Act) 
applies. 
SEC. 314. REPEAL OF PREFERENTIAL DIVIDEND RULE FOR 
PUBLICLY OFFERED REITS. 
(a) IN GENERAL.—Section 562(c) is amended by in-
serting ‘‘or a publicly offered REIT’’ after ‘‘a publicly of-
fered regulated investment company (as defined in section 
67(c)(2)(B))’’. 
(b) PUBLICLY OFFERED REIT.—Section 562(c), as 
amended by subsection (a), is amended— 
(1) by striking ‘‘Except in the case of’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—Except in the case of’’, and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) PUBLICLY OFFERED REIT.—For purposes of 
this subsection, the term ‘publicly offered REIT’ 
means a real estate investment trust which is required 
to file annual and periodic reports with the Securities 
and Exchange Commission under the Securities Ex-
change Act of 1934.’’.
2070 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions in taxable years begin-
ning after December 31, 2014. 
SEC. 315. AUTHORITY FOR ALTERNATIVE REMEDIES TO AD-
DRESS CERTAIN REIT DISTRIBUTION FAIL-
URES. 
(a) IN GENERAL.—Subsection (e) of section 562 is 
amended— 
(1) by striking ‘‘In the case of a real estate in-
vestment trust’’ and inserting the following: 
‘‘(1) DETERMINATION OF EARNINGS AND PROFITS 
FOR PURPOSES OF DIVIDENDS PAID DEDUCTION.—In 
the case of a real estate investment trust’’, and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) AUTHORITY TO PROVIDE ALTERNATIVE REM-
EDIES FOR CERTAIN FAILURES.—In the case of a fail-
ure of a distribution by a real estate investment trust 
to comply with the requirements of subsection (c), the 
Secretary may provide an appropriate remedy to cure 
such failure in lieu of not considering the distribution 
to be a dividend for purposes of computing the divi-
dends paid deduction if—
2071 
‘‘(A) the Secretary determines that such 
failure is inadvertent or is due to reasonable 
cause and not due to willful neglect, or 
‘‘(B) such failure is of a type of failure 
which the Secretary has identified for purposes 
of this paragraph as being described in subpara-
graph (A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions in taxable years begin-
ning after December 31, 2015. 
SEC. 316. LIMITATIONS ON DESIGNATION OF DIVIDENDS BY 
REITS. 
(a) IN GENERAL.—Section 857 is amended by redesig-
nating subsection (g) as subsection (h) and by inserting 
after subsection (f) the following new subsection: 
‘‘(g) LIMITATIONS ON DESIGNATION OF DIVIDENDS.— 
‘‘(1) 
OVERALL
LIMITATION.—The 
aggregate 
amount of dividends designated by a real estate in-
vestment trust under subsections (b)(3)(C) and 
(c)(2)(A) with respect to any taxable year may not 
exceed the dividends paid by such trust with respect 
to such year. For purposes of the preceding sentence, 
dividends paid after the close of the taxable year de-
scribed in section 858 shall be treated as paid with 
respect to such year.
2072 
‘‘(2) PROPORTIONALITY.—The Secretary may 
prescribe regulations or other guidance requiring the 
proportionality of the designation of particular types 
of dividends among shares or beneficial interests of a 
real estate investment trust.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions in taxable years begin-
ning after December 31, 2015. 
SEC. 317. DEBT INSTRUMENTS OF PUBLICLY OFFERED 
REITS AND MORTGAGES TREATED AS REAL 
ESTATE ASSETS. 
(a) DEBT INSTRUMENTS
OF PUBLICLY OFFERED 
REITS TREATED AS REAL ESTATE ASSETS.— 
(1) IN GENERAL.—Subparagraph (B) of section 
856(c)(5) is amended— 
(A) by striking ‘‘and shares’’ and inserting 
‘‘, shares’’, and 
(B) by inserting ‘‘, and debt instruments 
issued by publicly offered REITs’’ before the pe-
riod at the end of the first sentence. 
(2) INCOME FROM NONQUALIFIED DEBT INSTRU-
MENTS OF PUBLICLY OFFERED REITS NOT QUALIFIED 
FOR
PURPOSES
OF
SATISFYING
THE
PERCENT 
GROSS INCOME TEST.—Subparagraph (H) of section 
856(c)(3) is amended by inserting ‘‘(other than a
2073 
nonqualified publicly offered REIT debt instrument)’’ 
after ‘‘real estate asset’’. 
(3) 25 PERCENT ASSET LIMITATION ON HOLDING 
OF NONQUALIFIED DEBT INSTRUMENTS OF PUBLICLY 
OFFERED
REITS.—Subparagraph (B) of section 
856(c)(4) is amended by redesignating clause (iii) as 
clause (iv) and by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) not more than 25 percent of the 
value of its total assets is represented by 
nonqualified publicly offered REIT debt in-
struments, and’’. 
(4) DEFINITIONS
RELATED
TO
DEBT
INSTRU-
MENTS
OF
PUBLICLY
OFFERED
REITS.—Paragraph 
(5) of section 856(c) is amended by adding at the end 
the following new subparagraph: 
‘‘(L) DEFINITIONS RELATED TO DEBT IN-
STRUMENTS OF PUBLICLY OFFERED REITS.— 
‘‘(i) PUBLICLY
OFFERED
REIT.—The 
term ‘publicly offered REIT’ has the mean-
ing given such term by section 562(c)(2). 
‘‘(ii) NONQUALIFIED
PUBLICLY
OF-
FERED REIT DEBT INSTRUMENT.—The term 
‘nonqualified publicly offered REIT debt in-
strument’ means any real estate asset which
2074 
would cease to be a real estate asset if sub-
paragraph (B) were applied without regard 
to the reference to ‘debt instruments issued 
by publicly offered REITs’.’’. 
(b) INTERESTS IN MORTGAGES ON INTERESTS IN REAL 
PROPERTY TREATED AS REAL ESTATE ASSETS.—Subpara-
graph (B) of section 856(c)(5) is amended by inserting ‘‘or 
on interests in real property’’ after ‘‘interests in mortgages 
on real property’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015. 
SEC. 318. ASSET AND INCOME TEST CLARIFICATION RE-
GARDING ANCILLARY PERSONAL PROPERTY. 
(a) IN GENERAL.—Subsection (c) of section 856, as 
amended by the preceding provisions of this Act, is amended 
by redesignating paragraph (9) as paragraph (10) and by 
inserting after paragraph (8) the following new paragraph: 
‘‘(9) SPECIAL
RULES
FOR
CERTAIN
PERSONAL 
PROPERTY
WHICH
IS
ANCILLARY
TO
REAL
PROP-
ERTY.— 
‘‘(A) 
CERTAIN
PERSONAL
PROPERTY 
LEASED
IN
CONNECTION
WITH
REAL
PROP-
ERTY.—Personal property shall be treated as a 
real estate asset for purposes of paragraph (4)(A)
2075 
to the extent that rents attributable to such per-
sonal property are treated as rents from real 
property under subsection (d)(1)(C). 
‘‘(B) CERTAIN PERSONAL PROPERTY MORT-
GAGED IN CONNECTION WITH REAL PROPERTY.— 
In the case of an obligation secured by a mort-
gage on both real property and personal prop-
erty, if the fair market value of such personal 
property does not exceed 15 percent of the total 
fair market value of all such property, such obli-
gation shall be treated— 
‘‘(i) for purposes of paragraph (3)(B), 
as an obligation described therein, and 
‘‘(ii) for purposes of paragraph (4)(A), 
as a real estate asset. 
For purposes of the preceding sentence, the fair 
market value of all such property shall be deter-
mined in the same manner as the fair market 
value of real property is determined for purposes 
of apportioning interest income between real 
property and personal property under para-
graph (3)(B).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015.
2076 
SEC. 319. HEDGING PROVISIONS. 
(a) MODIFICATION TO PERMIT THE TERMINATION OF 
A HEDGING TRANSACTION USING AN ADDITIONAL HEDGING 
INSTRUMENT.—Subparagraph (G) of section 856(c)(5) is 
amended by striking ‘‘and’’ at the end of clause (i), by strik-
ing the period at the end of clause (ii) and inserting ‘‘, 
and’’, and by adding at the end the following new clause: 
‘‘(iii) if— 
‘‘(I) a real estate investment trust 
enters into one or more positions de-
scribed in clause (i) with respect to in-
debtedness described in clause (i) or 
one or more positions described in 
clause (ii) with respect to property 
which generates income or gain de-
scribed in paragraph (2) or (3), 
‘‘(II) any portion of such indebt-
edness is extinguished or any portion 
of such property is disposed of, and 
‘‘(III) in connection with such ex-
tinguishment or disposition, such trust 
enters into one or more transactions 
which would be hedging transactions 
described in clause (ii) or (iii) of sec-
tion 1221(b)(2)(A) with respect to any
2077 
position referred to in subclause (I) if 
such position were ordinary property, 
any income of such trust from any position 
referred to in subclause (I) and from any 
transaction referred to in subclause (III) 
(including gain from the termination of 
any such position or transaction) shall not 
constitute gross income under paragraphs 
(2) and (3) to the extent that such trans-
action hedges such position.’’. 
(b) IDENTIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Subparagraph (G) of section 
856(c)(5), as amended by subsection (a), is amended 
by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, 
and’’, and by adding at the end the following new 
clause: 
‘‘(iv) clauses (i), (ii), and (iii) shall 
not apply with respect to any transaction 
unless such transaction satisfies the identi-
fication requirement described in section 
1221(a)(7) (determined after taking into ac-
count any curative provisions provided 
under the regulations referred to therein).’’.
2078 
(2) CONFORMING AMENDMENTS.—Subparagraph 
(G) of section 856(c)(5) is amended— 
(A) by striking ‘‘which is clearly identified 
pursuant to section 1221(a)(7)’’ in clause (i), 
and 
(B) by striking ‘‘, but only if such trans-
action is clearly identified as such before the 
close of the day on which it was acquired, origi-
nated, or entered into (or such other time as the 
Secretary may prescribe)’’ in clause (ii). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015. 
SEC. 320. MODIFICATION OF REIT EARNINGS AND PROFITS 
CALCULATION TO AVOID DUPLICATE TAX-
ATION. 
(a) EARNINGS
AND PROFITS NOT INCREASED
BY 
AMOUNTS ALLOWED IN COMPUTING TAXABLE INCOME IN 
PRIOR YEARS.—Section 857(d) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.—The earnings and profits of 
a real estate investment trust for any taxable year 
(but not its accumulated earnings) shall not be re-
duced by any amount which—
2079 
‘‘(A) is not allowable in computing its tax-
able income for such taxable year, and 
‘‘(B) was not allowable in computing its 
taxable income for any prior taxable year.’’, and 
(2) by adding at the end the following new para-
graphs: 
‘‘(4) REAL
ESTATE
INVESTMENT
TRUST.—For 
purposes of this subsection, the term ‘real estate in-
vestment trust’ includes a domestic corporation, trust, 
or association which is a real estate investment trust 
determined without regard to the requirements of sub-
section (a). 
‘‘(5) SPECIAL RULES FOR DETERMINING EARN-
INGS AND PROFITS FOR PURPOSES OF THE DEDUC-
TION FOR DIVIDENDS PAID.—For special rules for de-
termining the earnings and profits of a real estate in-
vestment trust for purposes of the deduction for divi-
dends paid, see section 562(e)(1).’’. 
(b) EXCEPTION
FOR PURPOSES
OF DETERMINING 
DIVIDENDS
PAID
DEDUCTION.—Section 562(e)(1), as 
amended by the preceding provisions of this Act, is amended 
by striking ‘‘deduction, the earnings’’ and all that follows 
and inserting the following: ‘‘deduction— 
‘‘(A) the earnings and profits of such trust 
for any taxable year (but not its accumulated
2080 
earnings) shall be increased by the amount of 
gain (if any) on the sale or exchange of real 
property which is taken into account in deter-
mining the taxable income of such trust for such 
taxable year (and not otherwise taken into ac-
count in determining such earnings and profits), 
and 
‘‘(B) section 857(d)(1) shall be applied 
without regard to subparagraph (B) thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015. 
SEC. 321. TREATMENT OF CERTAIN SERVICES PROVIDED BY 
TAXABLE REIT SUBSIDIARIES. 
(a) TAXABLE REIT SUBSIDIARIES TREATED IN SAME 
MANNER AS INDEPENDENT CONTRACTORS FOR CERTAIN 
PURPOSES.— 
(1) MARKETING AND DEVELOPMENT EXPENSES 
UNDER RENTAL PROPERTY SAFE HARBOR.—Clause (v) 
of section 857(b)(6)(C) is amended by inserting ‘‘or a 
taxable REIT subsidiary’’ before the period at the 
end. 
(2) MARKETING EXPENSES UNDER TIMBER SAFE 
HARBOR.—Clause (v) of section 857(b)(6)(D) is
2081 
amended by striking ‘‘, in the case of a sale on or be-
fore the termination date,’’. 
(3) FORECLOSURE PROPERTY GRACE PERIOD.— 
Subparagraph (C) of section 856(e)(4) is amended by 
inserting ‘‘or through a taxable REIT subsidiary’’ 
after ‘‘receive any income’’. 
(b) TAX ON REDETERMINED TRS SERVICE INCOME.— 
(1) IN GENERAL.—Subparagraph (A) of section 
857(b)(7) is amended by striking ‘‘and excess inter-
est’’ and inserting ‘‘excess interest, and redetermined 
TRS service income’’. 
(2) REDETERMINED
TRS
SERVICE
INCOME.— 
Paragraph (7) of section 857(b) is amended by redes-
ignating subparagraphs (E) and (F) as subpara-
graphs (F) and (G), respectively, and inserting after 
subparagraph (D) the following new subparagraph: 
‘‘(E) REDETERMINED
TRS
SERVICE
IN-
COME.— 
‘‘(i) IN GENERAL.—The term ‘redeter-
mined TRS service income’ means gross in-
come of a taxable REIT subsidiary of a real 
estate investment trust attributable to serv-
ices provided to, or on behalf of, such trust 
(less deductions properly allocable thereto) 
to the extent the amount of such income
2082 
(less such deductions) would (but for sub-
paragraph (F)) be increased on distribu-
tion, apportionment, or allocation under 
section 482. 
‘‘(ii) COORDINATION
WITH
REDETER-
MINED RENTS.—Clause (i) shall not apply 
with respect to gross income attributable to 
services furnished or rendered to a tenant of 
the real estate investment trust (or to deduc-
tions properly allocable thereto).’’. 
(3) CONFORMING AMENDMENTS.—Subparagraphs 
(B)(i) and (C) of section 857(b)(7) are each amended 
by striking ‘‘subparagraph (E)’’ and inserting ‘‘sub-
paragraph (F)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015. 
SEC. 322. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK 
OF REITS. 
(a) MODIFICATIONS OF OWNERSHIP RULES.— 
(1) IN GENERAL.—Section 897 is amended by 
adding at the end the following new subsection: 
‘‘(k) SPECIAL RULES RELATING TO REAL ESTATE IN-
VESTMENT TRUSTS.—
2083 
‘‘(1) INCREASE IN PERCENTAGE OWNERSHIP FOR 
EXCEPTIONS FOR PERSONS HOLDING PUBLICLY TRAD-
ED STOCK.— 
‘‘(A) DISPOSITIONS.—In the case of any 
disposition of stock in a real estate investment 
trust, paragraphs (3) and (6)(C) of subsection 
(c) shall each be applied by substituting ‘more 
than 10 percent’ for ‘more than 5 percent’. 
‘‘(B) DISTRIBUTIONS.—In the case of any 
distribution from a real estate investment trust, 
subsection (h)(1) shall be applied by substituting 
‘10 percent’ for ‘5 percent’. 
‘‘(2) STOCK
HELD
BY
QUALIFIED
SHARE-
HOLDERS NOT TREATED AS USRPI.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B)— 
‘‘(i) stock of a real estate investment 
trust which is held directly (or indirectly 
through 1 or more partnerships) by a quali-
fied shareholder shall not be treated as a 
United States real property interest, and 
‘‘(ii) notwithstanding subsection (h)(1), 
any distribution to a qualified shareholder 
shall not be treated as gain recognized from 
the sale or exchange of a United States real
2084 
property interest to the extent the stock of 
the real estate investment trust held by such 
qualified shareholder is not treated as a 
United States real property interest under 
clause (i). 
‘‘(B) EXCEPTION.—In the case of a quali-
fied shareholder with 1 or more applicable inves-
tors— 
‘‘(i) subparagraph (A)(i) shall not 
apply to so much of the stock of a real es-
tate investment trust held by a qualified 
shareholder as bears the same ratio to the 
value of the interests (other than interests 
held solely as a creditor) held by such appli-
cable investors in the qualified shareholder 
bears to value of all interests (other than in-
terests held solely as a creditor) in the 
qualified shareholder, and 
‘‘(ii) a percentage equal to the ratio de-
termined under clause (i) of the amounts re-
alized by the qualified shareholder with re-
spect to any disposition of stock in the real 
estate investment trust or with respect to 
any distribution from the real estate invest-
ment trust attributable to gain from sales or
2085 
exchanges of a United States real property 
interest shall be treated as amounts realized 
from the disposition of United States real 
property interests. 
‘‘(C) SPECIAL
RULE
FOR
CERTAIN
DIS-
TRIBUTIONS TREATED AS SALE OR EXCHANGE.— 
If a distribution by a real estate investment 
trust is treated as a sale or exchange of stock 
under section 301(c)(3), 302, or 331 with respect 
to a qualified shareholder— 
‘‘(i) in the case of an applicable inves-
tor, subparagraph (B) shall apply with re-
spect to such distribution, and 
‘‘(ii) in the case of any other person, 
such distribution shall be treated under sec-
tion 857(b)(3)(F) as a dividend from a real 
estate investment trust notwithstanding any 
other provision of this title. 
‘‘(D) APPLICABLE INVESTOR.—For purposes 
of this paragraph, the term ‘applicable investor’ 
means, with respect to any qualified shareholder 
holding stock in a real estate investment trust, a 
person (other than a qualified shareholder) 
which—
2086 
‘‘(i) holds an interest (other than an 
interest solely as a creditor) in such quali-
fied shareholder, and 
‘‘(ii) holds more than 10 percent of the 
stock of such real estate investment trust 
(whether or not by reason of the person’s 
ownership interest in the qualified share-
holder). 
‘‘(E) CONSTRUCTIVE OWNERSHIP RULES.— 
For purposes of subparagraphs (B)(i) and (C) 
and paragraph (4), the constructive ownership 
rules under subsection (c)(6)(C) shall apply. 
‘‘(3) QUALIFIED SHAREHOLDER.—For purposes 
of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
shareholder’ means a foreign person which— 
‘‘(i)(I) is eligible for benefits of a com-
prehensive income tax treaty with the 
United States which includes an exchange 
of information program and the principal 
class of interests of which is listed and regu-
larly traded on 1 or more recognized stock 
exchanges (as defined in such comprehensive 
income tax treaty), or
2087 
‘‘(II) is a foreign partnership that is 
created or organized under foreign law as a 
limited partnership in a jurisdiction that 
has an agreement for the exchange of infor-
mation with respect to taxes with the 
United States and has a class of limited 
partnership units which is regularly traded 
on the New York Stock Exchange or Nasdaq 
Stock Market and such class of limited 
partnership units value is greater than 50 
percent of the value of all the partnership 
units, 
‘‘(ii) is a qualified collective invest-
ment vehicle, and 
‘‘(iii) maintains records on the iden-
tity of each person who, at any time during 
the foreign person’s taxable year, holds di-
rectly 5 percent or more of the class of in-
terest described in subclause (I) or (II) of 
clause (i), as the case may be. 
‘‘(B) QUALIFIED COLLECTIVE INVESTMENT 
VEHICLE.—For purposes of this subsection, the 
term ‘qualified collective investment vehicle’ 
means a foreign person—
2088 
‘‘(i) which, under the comprehensive 
income tax treaty described in subpara-
graph (A)(i), is eligible for a reduced rate 
of withholding with respect to ordinary 
dividends paid by a real estate investment 
trust even if such person holds more than 10 
percent of the stock of such real estate in-
vestment trust, 
‘‘(ii) which— 
‘‘(I) is a publicly traded partner-
ship (as defined in section 7704(b)) to 
which subsection (a) of section 7704 
does not apply, 
‘‘(II) is a withholding foreign 
partnership for purposes of chapters 3, 
4, and 61, 
‘‘(III) if such foreign partnership 
were a United States corporation, 
would be a United States real property 
holding corporation (determined with-
out regard to paragraph (1)) at any 
time during the 5-year period ending 
on the date of disposition of, or dis-
tribution with respect to, such partner-
2089 
ship’s interests in a real estate invest-
ment trust, or 
‘‘(iii) which is designated as a quali-
fied collective investment vehicle by the Sec-
retary and is either— 
‘‘(I) fiscally transparent within 
the meaning of section 894, or 
‘‘(II) required to include divi-
dends in its gross income, but entitled 
to a deduction for distributions to per-
sons holding interests (other than in-
terests solely as a creditor) in such for-
eign person. 
‘‘(4) PARTNERSHIP ALLOCATIONS.— 
‘‘(A) IN GENERAL.—For the purposes of this 
subsection, in the case of an applicable investor 
who is a nonresident alien individual or a for-
eign corporation and is a partner in a partner-
ship that is a qualified shareholder, if such part-
ner’s proportionate share of USRPI gain for the 
taxable year exceeds such partner’s distributive 
share of USRPI gain for the taxable year, then 
‘‘(i) such partner’s distributive share of 
the amount of gain taken into account 
under subsection (a)(1) by the partner for
2090 
the taxable year (determined without regard 
to this paragraph) shall be increased by the 
amount of such excess, and 
‘‘(ii) such partner’s distributive share 
of items of income or gain for the taxable 
year that are not treated as gain taken into 
account under subsection (a)(1) (determined 
without regard to this paragraph) shall be 
decreased (but not below zero) by the 
amount of such excess. 
‘‘(B) USRPI GAIN.—For the purposes of 
this paragraph, the term ‘USRPI gain’ means 
the excess (if any) of— 
‘‘(i) the sum of— 
‘‘(I) any gain recognized from the 
disposition of a United States real 
property interest, and 
‘‘(II) any distribution by a real 
estate investment trust that is treated 
as gain recognized from the sale or ex-
change of a United States real prop-
erty interest, over 
‘‘(ii) any loss recognized from the dis-
position of a United States real property 
interest.
2091 
‘‘(C) PROPORTIONATE
SHARE
OF
USRPI 
GAIN.—For purposes of this paragraph, an ap-
plicable investor’s proportionate share of USRPI 
gain shall be determined on the basis of such in-
vestor’s share of partnership items of income or 
gain (excluding gain allocated under section 
704(c)), whichever results in the largest propor-
tionate share. If the investor’s share of partner-
ship items of income or gain (excluding gain al-
located under section 704(c)) may vary during 
the period such investor is a partner in the part-
nership, such share shall be the highest share 
such investor may receive.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 897(c)(1)(A) is amended by in-
serting ‘‘or subsection (k)’’ after ‘‘subparagraph 
(B)’’ in the matter preceding clause (i). 
(B) Section 857(b)(3)(F) is amended by in-
serting ‘‘or subparagraph (A)(ii) or (C) of sec-
tion 897(k)(2)’’ after ‘‘897(h)(1)’’. 
(b) DETERMINATION OF DOMESTIC CONTROL.— 
(1) SPECIAL OWNERSHIP RULES.— 
(A) IN
GENERAL.—Section 897(h)(4) is 
amended by adding at the end the following new 
subparagraph:
2092 
‘‘(E) SPECIAL
OWNERSHIP
RULES.—For 
purposes of determining the holder of stock under 
subparagraphs (B) and (C)— 
‘‘(i) in the case of any class of stock of 
the qualified investment entity which is reg-
ularly traded on an established securities 
market in the United States, a person hold-
ing less than 5 percent of such class of stock 
at all times during the testing period shall 
be treated as a United States person unless 
the qualified investment entity has actual 
knowledge that such person is not a United 
States person, 
‘‘(ii) any stock in the qualified invest-
ment entity held by another qualified in-
vestment entity— 
‘‘(I) any class of stock of which is 
regularly traded on an established se-
curities market, or 
‘‘(II) which is a regulated invest-
ment company which issues redeemable 
securities (within the meaning of sec-
tion 2 of the Investment Company Act 
of 1940),
2093 
shall be treated as held by a foreign person, 
except that if such other qualified invest-
ment entity is domestically controlled (de-
termined after application of this subpara-
graph), such stock shall be treated as held 
by a United States person, and 
‘‘(iii) any stock in the qualified invest-
ment entity held by any other qualified in-
vestment entity not described in subclause 
(I) or (II) of clause (ii) shall only be treated 
as held by a United States person in pro-
portion to the stock of such other qualified 
investment entity which is (or is treated 
under clause (ii) or (iii) as) held by a 
United States person.’’. 
(B) CONFORMING AMENDMENT.—The head-
ing for paragraph (4) of section 897(h) is 
amended by inserting ‘‘AND
SPECIAL
RULES’’ 
after ‘‘DEFINITIONS’’. 
(2) TECHNICAL AMENDMENT.—Clause (ii) of sec-
tion 897(h)(4)(A) is amended by inserting ‘‘and for 
purposes of determining whether a real estate invest-
ment trust is a domestically controlled qualified in-
vestment entity under this subsection’’ after ‘‘real es-
tate investment trust’’.
2094 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by 
subsection (a) shall take effect on the date of enact-
ment and shall apply to— 
(A) any disposition on and after the date of 
the enactment of this Act, and 
(B) any distribution by a real estate invest-
ment trust on or after the date of the enactment 
of this Act which is treated as a deduction for 
a taxable year of such trust ending after such 
date. 
(2) DETERMINATION OF DOMESTIC CONTROL.— 
The amendments made by subsection (b)(1) shall take 
effect on the date of the enactment of this Act. 
(3) TECHNICAL AMENDMENT.—The amendment 
made by subsection (b)(2) shall take effect on January 
1, 2015. 
SEC. 323. EXCEPTION FOR INTERESTS HELD BY FOREIGN 
RETIREMENT OR PENSION FUNDS. 
(a) IN GENERAL.—Section 897, as amended by the 
preceding provisions of this Act, is amended by adding at 
the end the following new subsection: 
‘‘(l) EXCEPTION FOR INTERESTS HELD BY FOREIGN 
PENSION FUNDS.—
2095 
‘‘(1) IN GENERAL.—This section shall not apply 
to any United States real property interest held di-
rectly (or indirectly through 1 or more partnerships) 
by, or to any distribution received from a real estate 
investment trust by— 
‘‘(A) a qualified foreign pension fund, or 
‘‘(B) any entity all of the interests of which 
are held by a qualified foreign pension fund. 
‘‘(2) QUALIFIED FOREIGN PENSION FUND.—For 
purposes of this subsection, the term ‘qualified foreign 
pension fund’ means any trust, corporation, or other 
organization or arrangement— 
‘‘(A) which is created or organized under 
the law of a country other than the United 
States, 
‘‘(B) which is established to provide retire-
ment or pension benefits to participants or bene-
ficiaries that are current or former employees (or 
persons designated by such employees) of one or 
more employers in consideration for services ren-
dered, 
‘‘(C) which does not have a single partici-
pant or beneficiary with a right to more than 
five percent of its assets or income,
2096 
‘‘(D) which is subject to government regula-
tion and provides annual information reporting 
about its beneficiaries to the relevant tax au-
thorities in the country in which it is established 
or operates, and 
‘‘(E) with respect to which, under the laws 
of the country in which it is established or oper-
ates— 
‘‘(i) contributions to such trust, cor-
poration, organization, or arrangement 
which would otherwise be subject to tax 
under such laws are deductible or excluded 
from the gross income of such entity or 
taxed at a reduced rate, or 
‘‘(ii) taxation of any investment in-
come of such trust, corporation, organiza-
tion or arrangement is deferred or such in-
come is taxed at a reduced rate. 
‘‘(3) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary or appro-
priate to carry out the purposes of this subsection.’’. 
(b) 
EXEMPTION
FROM
WITHHOLDING.—Section 
1445(f)(3) is amended by striking ‘‘any person’’ and all 
that follows and inserting the following: ‘‘any person other 
than—
2097 
‘‘(A) a United States person, and 
‘‘(B) except as otherwise provided by the 
Secretary, an entity with respect to which sec-
tion 897 does not apply by reason of subsection 
(l) thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to dispositions and distributions after 
the date of the enactment of this Act. 
SEC. 324. INCREASE IN RATE OF WITHHOLDING OF TAX ON 
DISPOSITIONS 
OF 
UNITED 
STATES 
REAL 
PROPERTY INTERESTS. 
(a) IN GENERAL.—Subsections (a), (e)(3), (e)(4), and 
(e)(5) of section 1445 are each amended by striking ‘‘10 
percent’’ and inserting ‘‘15 percent’’. 
(b) EXCEPTION FOR CERTAIN RESIDENCES.—Section 
1445(c) is amended by adding at the end the following new 
paragraph: 
‘‘(4) REDUCED RATE OF WITHHOLDING FOR RES-
IDENCE WHERE AMOUNT REALIZED DOES NOT EX-
CEED $1,000,000.—In the case of a disposition— 
‘‘(A) of property which is acquired by the 
transferee for use by the transferee as a residence, 
‘‘(B) with respect to which the amount real-
ized 
for 
such 
property 
does 
not 
exceed 
$1,000,000, and
2098 
‘‘(C) to which subsection (b)(5) does not 
apply, 
subsection (a) shall be applied by substituting ‘10 
percent’ for ‘15 percent’.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to dispositions after the date which is 
60 days after the date of the enactment of this Act. 
SEC. 325. INTERESTS IN RICS AND REITS NOT EXCLUDED 
FROM DEFINITION OF UNITED STATES REAL 
PROPERTY INTERESTS. 
(a) IN GENERAL.—Section 897(c)(1)(B) is amended by 
striking ‘‘and’’ at the end of clause (i), by striking the pe-
riod at the end of clause (ii)(II) and inserting ‘‘, and’’, and 
by adding at the end the following new clause: 
‘‘(iii) neither such corporation nor any 
predecessor of such corporation was a regu-
lated investment company or a real estate 
investment trust at any time during the 
shorter of the periods described in subpara-
graph (A)(ii).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to dispositions on or after the date of 
the enactment of this Act.
2099 
SEC. 326. DIVIDENDS DERIVED FROM RICS AND REITS IN-
ELIGIBLE 
FOR 
DEDUCTION 
FOR 
UNITED 
STATES SOURCE PORTION OF DIVIDENDS 
FROM CERTAIN FOREIGN CORPORATIONS. 
(a) IN GENERAL.—Section 245(a) is amended by add-
ing at the end the following new paragraph: 
‘‘(12) DIVIDENDS
DERIVED
FROM
RICS
AND 
REITS INELIGIBLE FOR DEDUCTION.—Regulated in-
vestment companies and real estate investment trusts 
shall not be treated as domestic corporations for pur-
poses of paragraph (5)(B).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to dividends received from regulated in-
vestment companies and real estate investment trusts on or 
after the date of the enactment of this Act. 
(c) NO INFERENCE.—Nothing contained in this section 
or the amendments made by this section shall be construed 
to create any inference with respect to the proper treatment 
under section 245 of the Internal Revenue Code of 1986 of 
dividends received from regulated investment companies or 
real estate investment trusts before the date of the enactment 
of this Act.
2100 
Subtitle C—Additional Provisions 
SEC. 331. DEDUCTIBILITY OF CHARITABLE CONTRIBUTIONS 
TO AGRICULTURAL RESEARCH ORGANIZA-
TIONS. 
(a) IN
GENERAL.—Subparagraph (A) of section 
170(b)(1) is amended by striking ‘‘or’’ at the end of clause 
(vii), by striking the comma at the end of clause (viii) and 
inserting ‘‘, or’’, and by inserting after clause (viii) the fol-
lowing new clause: 
‘‘(ix) an agricultural research organi-
zation directly engaged in the continuous 
active conduct of agricultural research (as 
defined in section 1404 of the Agricultural 
Research, Extension, and Teaching Policy 
Act of 1977) in conjunction with a land- 
grant college or university (as defined in 
such section) or a non-land grant college of 
agriculture (as defined in such section), and 
during the calendar year in which the con-
tribution is made such organization is com-
mitted to spend such contribution for such 
research before January 1 of the fifth cal-
endar year which begins after the date such 
contribution is made,’’.
2101 
(b) EXPENDITURES TO INFLUENCE LEGISLATION.— 
Paragraph (4) of section 501(h) is amended by redesig-
nating subparagraphs (E) and (F) as subparagraphs (F) 
and (G), respectively, and by inserting after subparagraph 
(D) the following new subparagraph: 
‘‘(E) section 170(b)(1)(A)(ix) (relating to 
agricultural research organizations),’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made on and after the 
date of the enactment of this Act. 
SEC. 332. REMOVAL OF BOND REQUIREMENTS AND EX-
TENDING FILING PERIODS FOR CERTAIN TAX-
PAYERS WITH LIMITED EXCISE TAX LIABIL-
ITY. 
(a) FILING REQUIREMENTS.—Paragraph (4) of section 
5061(d) of the Internal Revenue Code of 1986 is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘In the case of’’ and insert-
ing the following: 
‘‘(i) MORE THAN $1,000 AND NOT MORE 
THAN
$50,000
IN
TAXES.—Except as pro-
vided in clause (ii), in the case of’’, 
(B) by striking ‘‘under bond for deferred 
payment’’, and
2102 
(C) by adding at the end the following new 
clause: 
‘‘(ii) NOT
MORE
THAN
$1,000
IN 
TAXES.—In the case of any taxpayer who 
reasonably expects to be liable for not more 
than $1,000 in taxes imposed with respect 
to distilled spirits, wines, and beer under 
subparts A, C, and D and section 7652 for 
the calendar year and who was liable for 
not more than $1,000 in such taxes in the 
preceding calendar year, the last day for the 
payment of tax on withdrawals, removals, 
and entries (and articles brought into the 
United States from Puerto Rico) shall be 
the 14th day after the last day of the cal-
endar year.’’, and 
(2) in subparagraph (B)— 
(A) by striking ‘‘Subparagraph (A)’’ and 
inserting the following: 
‘‘(i) EXCEEDS
$50,000
LIMIT.—Sub-
paragraph (A)(i)’’, and 
(B) by adding at the end the following new 
clause: 
‘‘(ii) EXCEEDS
$1,000
LIMIT.—Sub-
paragraph (A)(ii) shall not apply to any
2103 
taxpayer for any portion of the calendar 
year following the first date on which the 
aggregate amount of tax due under subparts 
A, C, and D and section 7652 from such 
taxpayer during such calendar year exceeds 
$1,000, and any tax under such subparts 
which has not been paid on such date shall 
be due on the 14th day after the last day of 
the calendar quarter in which such date oc-
curs.’’. 
(b) BOND REQUIREMENTS.— 
(1) IN GENERAL.—Section 5551 of such Code is 
amended— 
(A) in subsection (a), by striking ‘‘No indi-
vidual’’ and inserting ‘‘Except as provided under 
subsection (d), no individual’’, and 
(B) by adding at the end the following new 
subsection: 
‘‘(d) REMOVAL OF BOND REQUIREMENTS.— 
‘‘(1) IN GENERAL.—During any period to which 
subparagraph (A) of section 5061(d)(4) applies to a 
taxpayer (determined after application of subpara-
graph (B) thereof), such taxpayer shall not be re-
quired to furnish any bond covering operations or
2104 
withdrawals of distilled spirits or wines for nonindus-
trial use or of beer. 
‘‘(2) SATISFACTION OF BOND REQUIREMENTS.— 
Any taxpayer for any period described in paragraph 
(1) shall be treated as if sufficient bond has been fur-
nished for purposes of covering operations and with-
drawals of distilled spirits or wines for nonindustrial 
use or of beer for purposes of any requirements relat-
ing to bonds under this chapter.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) 
BONDS
FOR
DISTILLED
SPIRITS 
PLANTS.—Section 5173(a) of such Code is 
amended— 
(i) in paragraph (1), by striking ‘‘No 
person’’ and inserting ‘‘Except as provided 
under section 5551(d), no person’’, and 
(ii) in paragraph (2), by striking ‘‘No 
distilled spirits’’ and inserting ‘‘Except as 
provided under section 5551(d), no distilled 
spirits’’. 
(B) BONDED WINE CELLARS.—Section 5351 
of such Code is amended— 
(i) by striking ‘‘Any person’’ and in-
serting the following: 
‘‘(a) IN GENERAL.—Any person’’,
2105 
(ii) by inserting ‘‘, except as provided 
under section 5551(d),’’ before ‘‘file bond’’, 
(iii) by striking ‘‘Such premises shall’’ 
and all that follows through the period, and 
(iv) by adding at the end the following 
new subsection: 
‘‘(b) DEFINITIONS.—For purposes of this chapter— 
‘‘(1) BONDED WINE CELLAR.—The term ‘bonded 
wine cellar’ means any premises described in sub-
section (a), including any such premises established 
by a taxpayer described in section 5551(d). 
‘‘(2) BONDED WINERY.—At the discretion of the 
Secretary, any bonded wine cellar that engages in 
production operations may be designated as a ‘bonded 
winery’.’’. 
(C) BONDS FOR BREWERIES.—Section 5401 
of such Code is amended by adding at the end 
the following new subsection: 
‘‘(c) EXCEPTION FROM BOND REQUIREMENTS
FOR 
CERTAIN BREWERIES.—Subsection (b) shall not apply to 
any taxpayer for any period described in section 5551(d).’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to any calendar quarters beginning more 
than 1 year after the date of the enactment of this Act.
2106 
SEC. 333. MODIFICATIONS TO ALTERNATIVE TAX FOR CER-
TAIN SMALL INSURANCE COMPANIES. 
(a) ADDITIONAL REQUIREMENT FOR COMPANIES TO 
WHICH ALTERNATIVE TAX APPLIES.— 
(1) ADDED REQUIREMENT.— 
(A) IN
GENERAL.—Subparagraph (A) of 
section 831(b)(2) is amended— 
(i) by striking ‘‘(including inter-
insurers and reciprocal underwriters)’’, and 
(ii) by striking ‘‘and’’ at the end of 
clause (i), by redesignating clause (ii) as 
clause (iii), and by inserting after clause (i) 
the following new clause: 
‘‘(ii) such company meets the diver-
sification requirements of subparagraph 
(B), and’’. 
(B) 
DIVERSIFICATION
REQUIREMENT.— 
Paragraph (2) of section 831(b) is amended by 
redesignating subparagraphs (B) as subpara-
graph (C) and by inserting after subparagraph 
(A) the following new subparagraph: 
‘‘(B) DIVERSIFICATION REQUIREMENTS.— 
‘‘(i) IN GENERAL.—An insurance com-
pany meets the requirements of this sub-
paragraph if—
2107 
‘‘(I) no more than 20 percent of 
the net written premiums (or, if great-
er, direct written premiums) of such 
company for the taxable year is attrib-
utable to any one policyholder, or 
‘‘(II) such insurance company 
does not meet the requirement of sub-
clause (I) and no person who holds (di-
rectly or indirectly) an interest in such 
insurance company is a specified hold-
er who holds (directly or indirectly) 
aggregate interests in such insurance 
company which constitute a percentage 
of the entire interests in such insur-
ance company which is more than a de 
minimis percentage higher than the 
percentage of interests in the specified 
assets with respect to such insurance 
company held (directly or indirectly) 
by such specified holder. 
‘‘(ii) DEFINITIONS.—For purposes of 
clause (i)(II)— 
‘‘(I) SPECIFIED
HOLDER.—The 
term ‘specified holder’ means, with re-
spect to any insurance company, any
2108 
individual who holds (directly or indi-
rectly) an interest in such insurance 
company and who is a spouse or lineal 
descendant (including by adoption) of 
an individual who holds an interest 
(directly or indirectly) in the specified 
assets with respect to such insurance 
company. 
‘‘(II) SPECIFIED
ASSETS.—The 
term ‘specified assets’ means, with re-
spect to any insurance company, the 
trades or businesses, rights, or assets 
with respect to which the net written 
premiums (or direct written pre-
miums) of such insurance company are 
paid. 
‘‘(III) INDIRECT
INTEREST.—An 
indirect interest includes any interest 
held through a trust, estate, partner-
ship, or corporation. 
‘‘(IV) DE
MINIMIS.—Except as 
otherwise provided by the Secretary in 
regulations or other guidance, 2 per-
centage points or less shall be treated 
as de minimis.’’.
2109 
(C) CONFORMING AMENDMENTS.—The sec-
ond sentence section 831(b)(2)(A) is amended— 
(i) by striking ‘‘clause (ii)’’ and insert-
ing ‘‘clause (iii)’’, and 
(ii) by striking ‘‘clause (i)’’ and insert-
ing ‘‘clauses (i) and (ii)’’. 
(2) TREATMENT OF RELATED POLICYHOLDERS.— 
Clause (i) of section 831(b)(2)(C), as redesignated by 
paragraph (1)(B), is amended— 
(A) by striking ‘‘For purposes of subpara-
graph (A), in determining’’ and inserting ‘‘For 
purposes of this paragraph— 
‘‘(I) in determining’’, 
(B) by striking the period at the end and 
inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
subclause: 
‘‘(II) in determining the attribu-
tion of premiums to any policyholder 
under subparagraph (B)(i), all policy-
holders which are related (within the 
meaning of section 267(b) or 707(b)) or 
are members of the same controlled 
group shall be treated as one policy-
holder.’’.
2110 
(3) REPORTING.—Section 831 is amended by re-
designating subsection (d) as subsection (e) and by 
inserting after subsection (c) the following new sub-
section: 
‘‘(d) REPORTING.—Every insurance company for 
which an election is in effect under subsection (b) for any 
taxable year shall furnish to the Secretary at such time and 
in such manner as the Secretary shall prescribe such infor-
mation for such taxable year as the Secretary shall require 
with 
respect 
to 
the 
requirements 
of 
subsection 
(b)(2)(A)(ii).’’. 
(b) INCREASE IN LIMITATION ON PREMIUMS.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
831(b)(2)(A) is amended by striking ‘‘$1,200,000’’ 
and inserting ‘‘$2,200,000’’. 
(2) INFLATION ADJUSTMENT.—Paragraph (2) of 
section 831(b), as amended by subsection (a)(1)(B), is 
amended by adding at the end the following new sub-
paragraph: 
‘‘(D) INFLATION ADJUSTMENT.—In the case 
of any taxable year beginning in a calendar year 
after 2015, the dollar amount set forth in sub-
paragraph (A)(i) shall be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by
2111 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for such cal-
endar year by substituting ‘calendar year 
2013’ for ‘calendar year 1992’ in subpara-
graph (B) thereof. 
If the amount as adjusted under the preceding 
sentence is not a multiple of $50,000, such 
amount shall be rounded to the next lowest mul-
tiple of $50,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2016. 
SEC. 334. TREATMENT OF TIMBER GAINS. 
(a) IN GENERAL.—Section 1201(b) is amended to read 
as follows: 
‘‘(b) SPECIAL RATE FOR QUALIFIED TIMBER GAINS.— 
‘‘(1) IN GENERAL.—If, for any taxable year be-
ginning in 2016, a corporation has both a net capital 
gain and qualified timber gain— 
‘‘(A) subsection (a) shall apply to such cor-
poration for the taxable year without regard to 
whether the applicable tax rate exceeds 35 per-
cent, and 
‘‘(B) the tax computed under subsection 
(a)(2) shall be equal to the sum of—
2112 
‘‘(i) 23.8 percent of the least of— 
‘‘(I) qualified timber gain, 
‘‘(II) net capital gain, or 
‘‘(III) taxable income, plus 
‘‘(ii) 35 percent of the excess (if any) 
of taxable income over the sum of the 
amounts for which a tax was determined 
under subsection (a)(1) and clause (i). 
‘‘(2) QUALIFIED TIMBER GAIN.—For purposes of 
this section, the term ‘qualified timber gain’ means, 
with respect to any taxpayer for any taxable year, the 
excess (if any) of— 
‘‘(A) the sum of the taxpayer’s gains de-
scribed in subsections (a) and (b) of section 631 
for such year, over 
‘‘(B) the sum of the taxpayer’s losses de-
scribed in such subsections for such year. 
For purposes of subparagraphs (A) and (B), only 
timber held more than 15 years shall be taken into 
account.’’. 
(b) CONFORMING
AMENDMENT.—Section 55(b) is 
amended by striking paragraph (4). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2015.
2113 
SEC. 335. MODIFICATION OF DEFINITION OF HARD CIDER. 
(a) IN GENERAL.—Section 5041 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in paragraph (6) of subsection (b), by strik-
ing ‘‘which is a still wine’’ and all that follows 
through ‘‘alcohol by volume’’, and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) HARD CIDER.—For purposes of subsection (b)(6), 
the term ‘hard cider’ means a wine— 
‘‘(1) containing not more than 0.64 gram of car-
bon dioxide per hundred milliliters of wine, except 
that the Secretary may by regulations prescribe such 
tolerances to this limitation as may be reasonably 
necessary in good commercial practice, 
‘‘(2) which is derived primarily— 
‘‘(A) from apples or pears, or 
‘‘(B) from— 
‘‘(i) apple juice concentrate or pear 
juice concentrate, and 
‘‘(ii) water, 
‘‘(3) which contains no fruit product or fruit fla-
voring other than apple or pear, and 
‘‘(4) which contains at least one-half of 1 percent 
and less than 8.5 percent alcohol by volume.’’.
2114 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to hard cider removed during calendar 
years beginning after December 31, 2016. 
SEC. 336. CHURCH PLAN CLARIFICATION. 
(a) APPLICATION OF CONTROLLED GROUP RULES TO 
CHURCH PLANS.— 
(1) IN GENERAL.—Section 414(c) is amended— 
(A) by striking ‘‘For purposes’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for purposes’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) SPECIAL
RULES
RELATING
TO
CHURCH 
PLANS.— 
‘‘(A) GENERAL RULE.—Except as provided 
in subparagraphs (B) and (C), for purposes of 
this subsection and subsection (m), an organiza-
tion that is otherwise eligible to participate in a 
church plan shall not be aggregated with another 
such organization and treated as a single em-
ployer with such other organization for a plan 
year beginning in a taxable year unless— 
‘‘(i) one such organization provides 
(directly or indirectly) at least 80 percent of
2117 
tion, once made, shall apply to all succeeding 
plan years unless revoked with notice provided to 
the Secretary in such manner as the Secretary 
shall prescribe.’’. 
(2) CLARIFICATION RELATING TO APPLICATION 
OF ANTI-ABUSE RULE.—The rule of 26 CFR 1.414(c)– 
5(f) shall continue to apply to each paragraph of sec-
tion 414(c) of the Internal Revenue Code of 1986, as 
amended by paragraph (1). 
(3) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall apply to years beginning be-
fore, on, or after the date of the enactment of this Act. 
(b) APPLICATION
OF CONTRIBUTION
AND FUNDING 
LIMITATIONS TO 403(b) GRANDFATHERED DEFINED BEN-
EFIT PLANS.— 
(1) IN GENERAL.—Section 251(e)(5) of the Tax 
Equity and Fiscal Responsibility Act of 1982 (Public 
Law 97–248), is amended— 
(A) by striking ‘‘403(b)(2)’’ and inserting 
‘‘403(b)’’, and 
(B) by inserting before the period at the end 
the following: ‘‘, and shall be subject to the appli-
cable limitations of section 415(b) of such Code 
as if it were a defined benefit plan under section
2118 
401(a) of such Code (and not to the limitations 
of section 415(c) of such Code).’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to years beginning be-
fore, on, or after the date of the enactment of this Act. 
(c) AUTOMATIC ENROLLMENT BY CHURCH PLANS.— 
(1) IN GENERAL.—This subsection shall super-
sede any law of a State that relates to wage, salary, 
or payroll payment, collection, deduction, garnish-
ment, assignment, or withholding which would di-
rectly or indirectly prohibit or restrict the inclusion 
in any church plan (as defined in section 414(e) of 
the Internal Revenue Code of 1986) of an automatic 
contribution arrangement. 
(2) DEFINITION
OF
AUTOMATIC
CONTRIBUTION 
ARRANGEMENT.—For purposes of this subsection, the 
term ‘‘automatic contribution arrangement’’ means 
an arrangement— 
(A) under which a participant may elect to 
have the plan sponsor or the employer make pay-
ments as contributions under the plan on behalf 
of the participant, or to the participant directly 
in cash, 
(B) under which a participant is treated as 
having elected to have the plan sponsor or the
2119 
employer make such contributions in an amount 
equal to a uniform percentage of compensation 
provided under the plan until the participant 
specifically elects not to have such contributions 
made (or specifically elects to have such con-
tributions made at a different percentage), and 
(C) under which the notice and election re-
quirements of paragraph (3), and the investment 
requirements of paragraph (4), are satisfied. 
(3) NOTICE REQUIREMENTS.— 
(A) IN GENERAL.—The plan sponsor of, or 
plan administrator or employer maintaining, an 
automatic contribution arrangement shall, with-
in a reasonable period before the first day of 
each plan year, provide to each participant to 
whom the arrangement applies for such plan 
year notice of the participant’s rights and obli-
gations under the arrangement which— 
(i) is sufficiently accurate and com-
prehensive to apprise the participant of 
such rights and obligations, and 
(ii) is written in a manner calculated 
to be understood by the average participant 
to whom the arrangement applies.
2120 
(B) ELECTION
REQUIREMENTS.—A notice 
shall not be treated as meeting the requirements 
of subparagraph (A) with respect to a partici-
pant unless— 
(i) the notice includes an explanation 
of the participant’s right under the arrange-
ment not to have elective contributions 
made on the participant’s behalf (or to elect 
to have such contributions made at a dif-
ferent percentage), 
(ii) the participant has a reasonable 
period of time, after receipt of the expla-
nation described in clause (i) and before the 
first elective contribution is made, to make 
such election, and 
(iii) the notice explains how contribu-
tions made under the arrangement will be 
invested in the absence of any investment 
election by the participant. 
(4) DEFAULT
INVESTMENT.—If no affirmative 
investment election has been made with respect to any 
automatic contribution arrangement, contributions to 
such arrangement shall be invested in a default in-
vestment selected with the care, skill, prudence, and
2121 
diligence that a prudent person selecting an invest-
ment option would use. 
(5) EFFECTIVE DATE.—This subsection shall take 
effect on the date of the enactment of this Act. 
(d) ALLOW CERTAIN PLAN TRANSFERS AND MERG-
ERS.— 
(1) IN GENERAL.—Section 414 is amended by 
adding at the end the following new subsection: 
‘‘(z) CERTAIN PLAN TRANSFERS AND MERGERS.— 
‘‘(1) IN GENERAL.—Under rules prescribed by 
the Secretary, except as provided in paragraph (2), 
no amount shall be includible in gross income by rea-
son of— 
‘‘(A) a transfer of all or a portion of the ac-
crued benefit of a participant or beneficiary, 
whether or not vested, from a church plan that 
is a plan described in section 401(a) or an an-
nuity contract described in section 403(b) to an 
annuity contract described in section 403(b), if 
such plan and annuity contract are both main-
tained by the same church or convention or asso-
ciation of churches, 
‘‘(B) a transfer of all or a portion of the ac-
crued benefit of a participant or beneficiary, 
whether or not vested, from an annuity contract
2122 
described in section 403(b) to a church plan that 
is a plan described in section 401(a), if such 
plan and annuity contract are both maintained 
by the same church or convention or association 
of churches, or 
‘‘(C) a merger of a church plan that is a 
plan described in section 401(a), or an annuity 
contract described in section 403(b), with an an-
nuity contract described in section 403(b), if 
such plan and annuity contract are both main-
tained by the same church or convention or asso-
ciation of churches. 
‘‘(2) LIMITATION.—Paragraph (1) shall not 
apply to a transfer or merger unless the participant’s 
or beneficiary’s total accrued benefit immediately 
after the transfer or merger is equal to or greater than 
the participant’s or beneficiary’s total accrued benefit 
immediately before the transfer or merger, and such 
total accrued benefit is nonforfeitable after the trans-
fer or merger. 
‘‘(3) QUALIFICATION.—A plan or annuity con-
tract shall not fail to be considered to be described in 
section 401(a) or 403(b) merely because such plan or 
annuity contract engages in a transfer or merger de-
scribed in this subsection.
2123 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) CHURCH OR CONVENTION OR ASSOCIA-
TION OF CHURCHES.—The term ‘church or con-
vention or association of churches’ includes an 
organization described in subparagraph (A) or 
(B)(ii) of subsection (e)(3). 
‘‘(B) ANNUITY CONTRACT.—The term ‘an-
nuity contract’ includes a custodial account de-
scribed in section 403(b)(7) and a retirement in-
come account described in section 403(b)(9). 
‘‘(C) ACCRUED
BENEFIT.—The term ‘ac-
crued benefit’ means— 
‘‘(i) in the case of a defined benefit 
plan, the employee’s accrued benefit deter-
mined under the plan, and 
‘‘(ii) in the case of a plan other than 
a defined benefit plan, the balance of the 
employee’s account under the plan.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to transfers or mergers oc-
curring after the date of the enactment of this Act. 
(e) INVESTMENTS BY CHURCH PLANS IN COLLECTIVE 
TRUSTS.— 
(1) IN GENERAL.—In the case of—
2124 
(A) a church plan (as defined in section 
414(e) of the Internal Revenue Code of 1986), in-
cluding a plan described in section 401(a) of 
such Code and a retirement income account de-
scribed in section 403(b)(9) of such Code, and 
(B) an organization described in section 
414(e)(3)(A) of such Code the principal purpose 
or function of which is the administration of 
such a plan or account, 
the assets of such plan, account, or organization (in-
cluding any assets otherwise permitted to be commin-
gled for investment purposes with the assets of such 
a plan, account, or organization) may be invested in 
a group trust otherwise described in Internal Revenue 
Service Revenue Ruling 81–100 (as modified by In-
ternal Revenue Service Revenue Rulings 2004–67, 
2011–1, and 2014–24), or any subsequent revenue 
ruling that supersedes or modifies such revenue rul-
ing, without adversely affecting the tax status of the 
group trust, such plan, account, or organization, or 
any other plan or trust that invests in the group 
trust. 
(2) EFFECTIVE
DATE.—This subsection shall 
apply to investments made after the date of the enact-
ment of this Act.
2125 
Subtitle D—Revenue Provisions 
SEC. 341. UPDATED ASHRAE STANDARDS FOR ENERGY EFFI-
CIENT COMMERCIAL BUILDINGS DEDUCTION. 
(a) IN GENERAL.—Paragraph (1) of section 179D(c) 
is amended by striking ‘‘Standard 90.1–2001’’ each place 
it appears and inserting ‘‘Standard 90.1–2007’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 179D(c) is amended 
to read as follows: 
‘‘(2) STANDARD 90.1–2007.—The term ‘Standard 
90.1–2007’ means Standard 90.1–2007 of the Amer-
ican Society of Heating, Refrigerating, and Air Con-
ditioning Engineers and the Illuminating Engineer-
ing Society of North America (as in effect on the day 
before the date of the adoption of Standard 90.1–2010 
of such Societies).’’. 
(2) Subsection (f) of section 179D is amended by 
striking ‘‘Standard 90.1–2001’’ each place it appears 
in paragraphs (1) and (2)(C)(i) and inserting 
‘‘Standard 90.1–2007’’. 
(3) Paragraph (1) of section 179D(f) is amend-
ed— 
(A) by striking ‘‘Table 9.3.1.1’’ and insert-
ing ‘‘Table 9.5.1’’, and
2126 
(B) by striking ‘‘Table 9.3.1.2’’ and insert-
ing ‘‘Table 9.6.1’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
subsection shall apply to property placed in service after 
December 31, 2015. 
SEC. 
342. 
EXCISE 
TAX 
CREDIT 
EQUIVALENCY 
FOR 
LIQUIFIED PETROLEUM GAS AND LIQUIFIED 
NATURAL GAS. 
(a) IN GENERAL.—Section 6426 is amended by adding 
at the end the following new subsection: 
‘‘(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 alter-
native 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 en-
ergy equivalent of a gallon of diesel, as defined in sec-
tion 4041(a)(2)(D).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuel sold or used after December 31, 
2015.
2127 
SEC. 343. EXCLUSION FROM GROSS INCOME OF CERTAIN 
CLEAN COAL POWER GRANTS TO NON-COR-
PORATE TAXPAYERS. 
(a) GENERAL RULE.—In the case of an eligible tax-
payer 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 re-
duced 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 sen-
tence) of the basis of any other property held by the tax-
payer. The particular properties to which the reductions re-
quired by this subsection are allocated shall be determined 
by the Secretary of the Treasury (or the Secretary’s dele-
gate) under regulations similar to the regulations under sec-
tion 362(c)(2) of such Code. 
(c) LIMITATION TO AMOUNTS WHICH WOULD BE CON-
TRIBUTIONS TO CAPITAL.—Subsection (a) shall not apply 
to any amount unless such amount, if received by a cor-
2128 
poration, would be excluded from gross income under sec-
tion 118 of the Internal Revenue Code of 1986. 
(d) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, with respect to any amount received under section 402 
of the Energy Policy Act of 2005, the term ‘‘eligible tax-
payer’’ means a taxpayer that makes a payment to the Sec-
retary of the Treasury (or the Secretary’s delegate) equal 
to 1.18 percent of the amount so received. Such payment 
shall be made at such time and in such manner as such 
Secretary (or the Secretary’s delegate) shall prescribe. In 
the case of a partnership, such Secretary (or the Secretary’s 
delegate) shall prescribe regulations to determine the alloca-
tion of such payment amount among the partners. 
(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. 
SEC. 344. CLARIFICATION OF VALUATION RULE FOR EARLY 
TERMINATION OF CERTAIN CHARITABLE RE-
MAINDER UNITRUSTS. 
(a) IN GENERAL.—Section 664(e) is amended— 
(1) by adding at the end the following: ‘‘In the 
case of the early termination of a trust which is a 
charitable remainder unitrust by reason of subsection 
(d)(3), the valuation of interests in such trust for pur-
2129 
poses of this section shall be made under rules similar 
to the rules of the preceding sentence.’’, and 
(2) by striking ‘‘FOR PURPOSES OF CHARITABLE 
CONTRIBUTION’’ in the heading thereof and inserting 
‘‘OF INTERESTS’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to terminations of trusts occurring after 
the date of the enactment of this Act. 
SEC. 345. PREVENTION OF TRANSFER OF CERTAIN LOSSES 
FROM TAX INDIFFERENT PARTIES. 
(a) IN GENERAL.—Section 267(d) is amended to read 
as follows: 
‘‘(d) AMOUNT OF GAIN WHERE LOSS PREVIOUSLY 
DISALLOWED.— 
‘‘(1) IN GENERAL.—If— 
‘‘(A) in the case of a sale or exchange of 
property to the taxpayer a loss sustained by the 
transferor is not allowable to the transferor as a 
deduction by reason of subsection (a)(1), and 
‘‘(B) the taxpayer sells or otherwise disposes 
of such property (or of other property the basis 
of which in the taxpayer’s hands is determined 
directly or indirectly by reference to such prop-
erty) at a gain,
2130 
then such gain shall be recognized only to the extent 
that it exceeds so much of such loss as is properly al-
locable to the property sold or otherwise disposed of 
by the taxpayer. 
‘‘(2) EXCEPTION FOR WASH SALES.—Paragraph 
(1) shall not apply if the loss sustained by the trans-
feror is not allowable to the transferor as a deduction 
by reason of section 1091 (relating to wash sales). 
‘‘(3) EXCEPTION FOR TRANSFERS FROM TAX IN-
DIFFERENT PARTIES.—Paragraph (1) shall not apply 
to the extent any loss sustained by the transferor (if 
allowed) would not be taken into account in deter-
mining a tax imposed under section 1 or 11 or a tax 
computed as provided by either of such sections.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to sales and other dispositions of prop-
erty acquired after December 31, 2015, by the taxpayer in 
a sale or exchange to which section 267(a)(1) of the Internal 
Revenue Code of 1986 applied. 
SEC. 346. TREATMENT OF CERTAIN PERSONS AS EMPLOY-
ERS 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:
2131 
‘‘SEC. 3512. TREATMENT OF CERTAIN PERSONS AS EMPLOY-
ERS 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 em-
ployer 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’ means 
any person if— 
‘‘(A) such person (directly or through affili-
ates)— 
‘‘(i) is a party to a written contract 
covering the services of motion picture 
project workers with respect to motion pic-
ture projects in the course of a client’s trade 
or business, 
‘‘(ii) is contractually obligated to pay 
remuneration to the motion picture project
2132 
workers without regard to payment or reim-
bursement by any other person, 
‘‘(iii) controls the payment (within the 
meaning of section 3401(d)(1)) of remu-
neration to the motion picture project work-
ers and pays such remuneration from its 
own account or accounts, 
‘‘(iv) is a signatory to one or more col-
lective bargaining agreements with a labor 
organization (as defined in 29 U.S.C. 
152(5)) that represents motion picture 
project workers, and 
‘‘(v) has treated substantially all mo-
tion picture project workers that such per-
son pays as employees and not as inde-
pendent contractors during such calendar 
year for purposes of determining employ-
ment 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’ means any indi-
vidual who provides services on motion picture
2133 
projects for clients who are not affiliated with the mo-
tion picture project employer. 
‘‘(3) MOTION PICTURE PROJECT.—The term ‘mo-
tion picture project’ means the production of any 
property described in section 168(f)(3). Such term 
does not include property with respect to which 
records are required to be maintained under section 
2257 of title 18, United States Code. 
‘‘(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 em-
ployer under subsection (b) or (c) of section 414.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
such chapter 25 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 3512. Treatment of certain persons as employers with respect to motion pic-
ture 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 infer-
ence on the law before the date of the enactment of this Act.
2134 
TITLE IV—TAX ADMINISTRATION 
Subtitle A—Internal Revenue 
Service Reforms 
SEC. 401. DUTY TO ENSURE THAT INTERNAL REVENUE 
SERVICE EMPLOYEES ARE FAMILIAR WITH 
AND ACT IN ACCORD WITH CERTAIN TAX-
PAYER RIGHTS. 
(a) IN GENERAL.—Section 7803(a) is amended by re-
designating paragraph (3) as paragraph (4) and by insert-
ing after paragraph (2) the following new paragraph: 
‘‘(3) EXECUTION OF DUTIES IN ACCORD WITH 
TAXPAYER
RIGHTS.—In discharging his duties, the 
Commissioner shall ensure that employees of the In-
ternal Revenue Service are familiar with and act in 
accord with taxpayer rights as afforded by other pro-
visions of this title, including— 
‘‘(A) the right to be informed, 
‘‘(B) the right to quality service, 
‘‘(C) the right to pay no more than the cor-
rect amount of tax, 
‘‘(D) the right to challenge the position of 
the Internal Revenue Service and be heard, 
‘‘(E) the right to appeal a decision of the 
Internal Revenue Service in an independent 
forum,
2135 
‘‘(F) the right to finality, 
‘‘(G) the right to privacy, 
‘‘(H) the right to confidentiality, 
‘‘(I) the right to retain representation, and 
‘‘(J) the right to a fair and just tax sys-
tem.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 402. IRS EMPLOYEES PROHIBITED FROM USING PER-
SONAL EMAIL ACCOUNTS FOR OFFICIAL BUSI-
NESS. 
No officer or employee of the Internal Revenue Service 
may use a personal email account to conduct any official 
business of the Government. 
SEC. 403. RELEASE OF INFORMATION REGARDING THE STA-
TUS OF CERTAIN INVESTIGATIONS. 
(a) IN GENERAL.—Section 6103(e) is amended by add-
ing at the end the following new paragraph: 
‘‘(11) DISCLOSURE OF INFORMATION REGARDING 
STATUS OF INVESTIGATION OF VIOLATION OF THIS 
SECTION.—In the case of a person who provides to the 
Secretary information indicating a violation of sec-
tion 7213, 7213A, or 7214 with respect to any return 
or return information of such person, the Secretary
2137 
to be described in section 501(c) may request an ad-
ministrative appeal (including a conference relating 
to such appeal if requested by the organization) to the 
Internal Revenue Service Office of Appeals of an ad-
verse determination described in paragraph (2). 
‘‘(2) ADVERSE DETERMINATIONS.—For purposes 
of paragraph (1), an adverse determination is de-
scribed in this paragraph if such determination is ad-
verse to an organization with respect to— 
‘‘(A) the initial qualification or continuing 
qualification of the organization as exempt from 
tax under section 501(a) or as an organization 
described in section 170(c)(2), 
‘‘(B) the initial classification or continuing 
classification of the organization as a private 
foundation under section 509(a), or 
‘‘(C) the initial classification or continuing 
classification of the organization as a private op-
erating foundation under section 4942(j)(3).’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to determinations made on or after 
May 19, 2014.
2138 
SEC. 405. ORGANIZATIONS REQUIRED TO NOTIFY SEC-
RETARY OF INTENT TO OPERATE UNDER 
501(c)(4). 
(a) IN GENERAL.—Part I of subchapter F of chapter 
1 is amended by adding at the end the following new sec-
tion: 
‘‘SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SEC-
RETARY OF INTENT TO OPERATE UNDER 
501(c)(4). 
‘‘(a) IN GENERAL.—An organization described in sec-
tion 501(c)(4) shall, not later than 60 days after the organi-
zation is established, notify the Secretary (in such manner 
as the Secretary shall by regulation prescribe) that it is 
operating as such. 
‘‘(b) CONTENTS
OF NOTICE.—The notice required 
under subsection (a) shall include the following informa-
tion: 
‘‘(1) The name, address, and taxpayer identifica-
tion number of the organization. 
‘‘(2) The date on which, and the State under the 
laws of which, the organization was organized. 
‘‘(3) A statement of the purpose of the organiza-
tion. 
‘‘(c) ACKNOWLEDGMENT OF RECEIPT.—Not later than 
60 days after receipt of such a notice, the Secretary shall 
send to the organization an acknowledgment of such receipt.
2139 
‘‘(d) EXTENSION FOR REASONABLE CAUSE.—The Sec-
retary may, for reasonable cause, extend the 60-day period 
described in subsection (a). 
‘‘(e) USER FEE.—The Secretary shall impose a reason-
able user fee for submission of the notice under subsection 
(a). 
‘‘(f) REQUEST FOR DETERMINATION.—Upon request 
by an organization to be treated as an organization de-
scribed in section 501(c)(4), the Secretary may issue a de-
termination with respect to such treatment. Such request 
shall be treated for purposes of section 6104 as an applica-
tion for exemption from taxation under section 501(a).’’. 
(b) SUPPORTING INFORMATION WITH FIRST RE-
TURN.—Section 6033(f) is amended— 
(1) by striking the period at the end and insert-
ing ‘‘, and’’, 
(2) by striking ‘‘include on the return required 
under subsection (a) the information’’ and inserting 
the following: ‘‘include on the return required under 
subsection (a)— 
‘‘(1) the information’’, and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) in the case of the first such return filed by 
such an organization after submitting a notice to the
2140 
Secretary under section 506(a), such information as 
the Secretary shall by regulation require in support 
of the organization’s treatment as an organization de-
scribed in section 501(c)(4).’’. 
(c) FAILURE TO FILE INITIAL NOTIFICATION.—Sec-
tion 6652(c) is amended by redesignating paragraphs (4), 
(5), and (6) as paragraphs (5), (6), and (7), respectively, 
and by inserting after paragraph (3) the following new 
paragraph: 
‘‘(4) NOTICES UNDER SECTION 506.— 
‘‘(A) PENALTY ON ORGANIZATION.—In the 
case of a failure to submit a notice required 
under section 506(a) (relating to organizations 
required to notify Secretary of intent to operate 
as 501(c)(4)) on the date and in the manner pre-
scribed therefor, there shall be paid by the orga-
nization failing to so submit $20 for each day 
during which such failure continues, but the 
total amount imposed under this subparagraph 
on any organization for failure to submit any 
one notice shall not exceed $5,000. 
‘‘(B) MANAGERS.—The Secretary may make 
written demand on an organization subject to 
penalty under subparagraph (A) specifying in 
such demand a reasonable future date by which
2141 
the notice shall be submitted for purposes of this 
subparagraph. If such notice is not submitted on 
or before such date, there shall be paid by the 
person failing to so submit $20 for each day 
after the expiration of the time specified in the 
written demand during which such failure con-
tinues, but the total amount imposed under this 
subparagraph on all persons for failure to sub-
mit any one notice shall not exceed $5,000.’’. 
(d) CLERICAL AMENDMENT.—The table of sections for 
part I of subchapter F of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 506. Organizations required to notify Secretary of intent to operate under 
501(c)(4).’’. 
(e) LIMITATION.—Notwithstanding any other provi-
sion of law, any fees collected pursuant to section 506(e) 
of the Internal Revenue Code of 1986, as added by sub-
section (a), shall not be expended by the Secretary of the 
Treasury or the Secretary’s delegate unless provided by an 
appropriations Act. 
(f) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to organizations which are de-
scribed in section 501(c)(4) of the Internal Revenue 
Code of 1986 and organized after the date of the en-
actment of this Act.
2142 
(2) CERTAIN EXISTING ORGANIZATIONS.—In the 
case of any other organization described in section 
501(c)(4) of such Code, the amendments made by this 
section shall apply to such organization only if, on or 
before the date of the enactment of this Act— 
(A) such organization has not applied for a 
written determination of recognition as an orga-
nization described in section 501(c)(4) of such 
Code, and 
(B) such organization has not filed at least 
one annual return or notice required under sub-
section (a)(1) or (i) (as the case may be) of sec-
tion 6033 of such Code. 
In the case of any organization to which the amend-
ments made by this section apply by reason of the 
preceding sentence, such organization shall submit the 
notice required by section 506(a) of such Code, as 
added by this Act, not later than 180 days after the 
date of the enactment of this Act. 
SEC. 406. DECLARATORY JUDGMENTS FOR 501(c)(4) AND 
OTHER EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Section 7428(a)(1) is amended by 
striking ‘‘or’’ at the end of subparagraph (C) and by insert-
ing after subparagraph (D) the following new subpara-
graph:
2143 
‘‘(E) with respect to the initial qualification 
or continuing qualification of an organization as 
an organization described in section 501(c) 
(other than paragraph (3)) or 501(d) and ex-
empt from tax under section 501(a), or’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to pleadings filed after the date of the 
enactment of this Act. 
SEC. 407. TERMINATION OF EMPLOYMENT OF INTERNAL 
REVENUE SERVICE EMPLOYEES FOR TAKING 
OFFICIAL 
ACTIONS 
FOR 
POLITICAL 
PUR-
POSES. 
(a) IN GENERAL.—Paragraph (10) of section 1203(b) 
of the Internal Revenue Service Restructuring and Reform 
Act of 1998 is amended to read as follows: 
‘‘(10) performing, delaying, or failing to perform 
(or threatening to perform, delay, or fail to perform) 
any official action (including any audit) with respect 
to a taxpayer for purpose of extracting personal gain 
or benefit or for a political purpose.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act.
2144 
SEC. 408. GIFT TAX NOT TO APPLY TO CONTRIBUTIONS TO 
CERTAIN EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Section 2501(a) is amended by 
adding at the end the following new paragraph: 
‘‘(6) TRANSFERS TO CERTAIN EXEMPT ORGANI-
ZATIONS.—Paragraph (1) shall not apply to the 
transfer of money or other property to an organiza-
tion described in paragraph (4), (5), or (6) of section 
501(c) and exempt from tax under section 501(a), for 
the use of such organization.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to gifts made after the date of the 
enactment of this Act. 
(c) NO INFERENCE.—Nothing in the amendment made 
by subsection (a) shall be construed to create any inference 
with respect to whether any transfer of property (whether 
made before, on, or after the date of the enactment of this 
Act) to an organization described in paragraph (4), (5), 
or (6) of section 501(c) of the Internal Revenue Code of 1986 
is a transfer of property by gift for purposes of chapter 12 
of such Code.
2145 
SEC. 409. EXTEND INTERNAL REVENUE SERVICE AUTHOR-
ITY TO REQUIRE TRUNCATED SOCIAL SECU-
RITY NUMBERS ON FORM W–2. 
(a) WAGES.—Section 6051(a)(2) is amended by strik-
ing ‘‘his social security account number’’ and inserting ‘‘an 
identifying number for the employee’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 410. CLARIFICATION OF ENROLLED AGENT CREDEN-
TIALS. 
Section 330 of title 31, United States Code, is amend-
ed— 
(1) by redesignating subsections (b), (c), and (d) 
as subsections (c), (d), and (e), respectively, and 
(2) by inserting after subsection (a) the following 
new subsection: 
‘‘(b) Any enrolled agents properly licensed to practice 
as required under rules promulgated under subsection (a) 
shall be allowed to use the credentials or designation of ‘en-
rolled agent’, ‘EA’, or ‘E.A.’.’’. 
SEC. 411. PARTNERSHIP AUDIT RULES. 
(a) CORRECTION AND CLARIFICATION TO MODIFICA-
TIONS TO IMPUTED UNDERPAYMENTS.— 
(1) Section 6225(c)(4)(A)(i) is amended by strik-
ing ‘‘in the case of ordinary income,’’.
2146 
(2) Section 6225(c) is amended by redesignating 
paragraphs (5) through (7) as paragraphs (6) 
through (8), respectively, and by inserting after para-
graph (4) the following new paragraph: 
‘‘(5) CERTAIN
PASSIVE
LOSSES
OF
PUBLICLY 
TRADED PARTNERSHIPS.— 
‘‘(A) IN GENERAL.—In the case of a pub-
licly traded partnership (as defined in section 
469(k)(2)), such procedures shall provide— 
‘‘(i) for determining the imputed un-
derpayment without regard to the portion 
thereof that the partnership demonstrates is 
attributable to a net decrease in a specified 
passive activity loss which is allocable to a 
specified partner, and 
‘‘(ii) for the partnership to take such 
net decrease into account as an adjustment 
in the adjustment year with respect to the 
specified partners to which such net de-
crease relates. 
‘‘(B) SPECIFIED PASSIVE ACTIVITY LOSS.— 
For purposes of this paragraph, the term ‘speci-
fied passive activity loss’ means, with respect to 
any specified partner of such publicly traded 
partnership, the lesser of—
2147 
‘‘(i) the passive activity loss of such 
partner which is separately determined 
with respect to such partnership under sec-
tion 469(k) with respect to such partner’s 
taxable year in which or with which the re-
viewed year of such partnership ends, or 
‘‘(ii) such passive activity loss so deter-
mined with respect to such partner’s taxable 
year in which or with which the adjustment 
year of such partnership ends. 
‘‘(C) SPECIFIED PARTNER.—For purposes of 
this paragraph, the term ‘specified partner’ 
means any person if such person— 
‘‘(i) is a partner of the publicly traded 
partnership referred to in subparagraph 
(A), 
‘‘(ii) is described in section 469(a)(2), 
and 
‘‘(iii) has a specified passive activity 
loss with respect to such publicly traded 
partnership, 
with respect to each taxable year of such person 
which is during the period beginning with the 
taxable year of such person in which or with 
which the reviewed year of such publicly traded
2148 
partnership ends and ending with the taxable 
year of such person in which or with which the 
adjustment year of such publicly traded partner-
ship ends.’’. 
(b) CORRECTION AND CLARIFICATION TO JUDICIAL 
REVIEW OF PARTNERSHIP ADJUSTMENT .— 
(1) Section 6226 is amended by adding at the 
end the following new subsection: 
‘‘(d) JUDICIAL REVIEW.—For the time period within 
which a partnership may file a petition for a readjustment, 
see section 6234(a).’’. 
(2) Subsections (a)(3), (b)(1), and (d) of section 
6234 are each amended by striking ‘‘the Claims 
Court’’ and inserting ‘‘the Court of Federal Claims’’. 
(3) The heading for section 6234(b) is amended 
by striking ‘‘CLAIMS COURT’’ and inserting ‘‘COURT 
OF FEDERAL CLAIMS’’. 
(c) CORRECTION AND CLARIFICATION TO PERIOD OF 
LIMITATIONS ON MAKING ADJUSTMENTS.— 
(1) Section 6235(a)(2) is amended by striking 
‘‘paragraph (4)’’ and inserting ‘‘paragraph (7)’’. 
(2) Section 6235(a)(3) is amended by striking 
‘‘270 days’’ and inserting ‘‘330 days (plus the number 
of days of any extension consented to by the Secretary 
under section 6225(c)(7)’’.
2149 
(d) TECHNICAL AMENDMENT.—Section 6031(b) is 
amended by striking the last sentence and inserting the fol-
lowing: ‘‘Except as provided in the procedures under section 
6225(c), with respect to statements under section 6226, or 
as otherwise provided by the Secretary, information re-
quired to be furnished by the partnership under this sub-
section may not be amended after the due date of the return 
under subsection (a) to which such information relates.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in section 1101 of 
the Bipartisan Budget Act of 2015. 
Subtitle B—United States Tax 
Court 
PART 1—TAXPAYER ACCESS TO UNITED STATES 
TAX COURT 
SEC. 421. FILING PERIOD FOR INTEREST ABATEMENT 
CASES. 
(a) IN GENERAL.—Subsection (h) of section 6404 is 
amended— 
(1) by striking ‘‘REVIEW
OF DENIAL’’ in the 
heading and inserting ‘‘JUDICIAL REVIEW’’, and 
(2) by striking ‘‘if such action is brought’’ and 
all that follows in paragraph (1) and inserting ‘‘if 
such action is brought— 
‘‘(A) at any time after the earlier of—
2150 
‘‘(i) the date of the mailing of the Sec-
retary’s final determination not to abate 
such interest, or 
‘‘(ii) the date which is 180 days after 
the date of the filing with the Secretary (in 
such form as the Secretary may prescribe) 
of a claim for abatement under this section, 
and 
‘‘(B) not later than the date which is 180 
days after the date described in subparagraph 
(A)(i).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to claims for abatement of interest filed 
with the Secretary of the Treasury after the date of the en-
actment of this Act. 
SEC. 422. SMALL TAX CASE ELECTION FOR INTEREST 
ABATEMENT CASES. 
(a) IN GENERAL.—Subsection (f) of section 7463 is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1), 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new para-
graph:
2151 
‘‘(3) a petition to the Tax Court under section 
6404(h) in which the amount of the abatement sought 
does not exceed $50,000.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to cases pending as of the day after the 
date of the enactment of this Act, and cases commenced after 
such date of enactment. 
SEC. 423. VENUE FOR APPEAL OF SPOUSAL RELIEF AND 
COLLECTION CASES. 
(a) IN GENERAL.—Paragraph (1) of section 7482(b) 
is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(D), 
(2) by striking the period at the end of subpara-
graph (E), and 
(3) by inserting after subparagraph (E) the fol-
lowing new subparagraphs: 
‘‘(F) in the case of a petition under section 
6015(e), the legal residence of the petitioner, or 
‘‘(G) in the case of a petition under section 
6320 or 6330— 
‘‘(i) the legal residence of the petitioner 
if the petitioner is an individual, and
2152 
‘‘(ii) the principal place of business or 
principal office or agency if the petitioner 
is an entity other than an individual.’’. 
(b) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to petitions filed after the date 
of enactment of this Act. 
(2) EFFECT ON EXISTING PROCEEDINGS.—Noth-
ing in this section shall be construed to create any in-
ference with respect to the application of section 7482 
of the Internal Revenue Code of 1986 with respect to 
court proceedings filed on or before the date of the en-
actment of this Act. 
SEC. 424. SUSPENSION OF RUNNING OF PERIOD FOR FIL-
ING PETITION OF SPOUSAL RELIEF AND COL-
LECTION CASES. 
(a) PETITIONS FOR SPOUSAL RELIEF.— 
(1) IN GENERAL.—Subsection (e) of section 6015 
is amended by adding at the end the following new 
paragraph: 
‘‘(6) SUSPENSION OF RUNNING OF PERIOD FOR 
FILING PETITION IN TITLE 11 CASES.—In the case of 
a person who is prohibited by reason of a case under 
title 11, United States Code, from filing a petition 
under paragraph (1)(A) with respect to a final deter-
2153 
mination of relief under this section, the running of 
the period prescribed by such paragraph for filing 
such a petition with respect to such final determina-
tion shall be suspended for the period during which 
the person is so prohibited from filing such a petition, 
and for 60 days thereafter.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to petitions filed under 
section 6015(e) of the Internal Revenue Code of 1986 
after the date of the enactment of this Act. 
(b) COLLECTION PROCEEDINGS.— 
(1) IN GENERAL.—Subsection (d) of section 6330 
is amended— 
(A) by striking ‘‘appeal such determination 
to the Tax Court’’ in paragraph (1) and insert-
ing ‘‘petition the Tax Court for review of such 
determination’’, 
(B) by striking ‘‘JUDICIAL REVIEW OF DE-
TERMINATION’’ in the heading of paragraph (1) 
and inserting ‘‘PETITION FOR REVIEW BY TAX 
COURT’’, 
(C) by redesignating paragraph (2) as 
paragraph (3), and 
(D) by inserting after paragraph (1) the fol-
lowing new paragraph:
2154 
‘‘(2) SUSPENSION OF RUNNING OF PERIOD FOR 
FILING PETITION IN TITLE 11 CASES.—In the case of 
a person who is prohibited by reason of a case under 
title 11, United States Code, from filing a petition 
under paragraph (1) with respect to a determination 
under this section, the running of the period pre-
scribed by such subsection for filing such a petition 
with respect to such determination shall be suspended 
for the period during which the person is so prohib-
ited from filing such a petition, and for 30 days 
thereafter, and’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to petitions filed under 
section 6330 of the Internal Revenue Code of 1986 
after the date of the enactment of this Act. 
(c) CONFORMING AMENDMENT.—Subsection (c) of sec-
tion 6320 is amended by striking ‘‘(2)(B)’’ and inserting 
‘‘(3)(B)’’. 
SEC. 425. APPLICATION OF FEDERAL RULES OF EVIDENCE. 
(a) IN GENERAL.—Section 7453 is amended by strik-
ing ‘‘the rules of evidence applicable in trials without a jury 
in the United States District Court of the District of Colum-
bia’’ and inserting ‘‘the Federal Rules of Evidence’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to proceedings commenced after the date
2155 
of the enactment of this Act and, to the extent that it is 
just and practicable, to all proceedings pending on such 
date. 
PART 2—UNITED STATES TAX COURT 
ADMINISTRATION 
SEC. 431. JUDICIAL CONDUCT AND DISABILITY PROCE-
DURES. 
(a) IN GENERAL.—Part II of subchapter C of chapter 
76 is amended by adding at the end the following new sec-
tion: 
‘‘SEC. 7466. JUDICIAL CONDUCT AND DISABILITY PROCE-
DURES. 
‘‘(a) IN GENERAL.—The Tax Court shall prescribe 
rules, consistent with the provisions of chapter 16 of title 
28, United States Code, establishing procedures for the fil-
ing of complaints with respect to the conduct of any judge 
or special trial judge of the Tax Court and for the investiga-
tion and resolution of such complaints. In investigating 
and taking action with respect to any such complaint, the 
Tax Court shall have the powers granted to a judicial coun-
cil under such chapter. 
‘‘(b) JUDICIAL COUNCIL.—The provisions of sections 
354(b) through 360 of title 28, United States Code, regard-
ing referral or certification to, and petition for review in 
the Judicial Conference of the United States, and action
2156 
thereon, shall apply to the exercise by the Tax Court of the 
powers of a judicial council under subsection (a). The deter-
mination pursuant to section 354(b) or 355 of title 28, 
United States Code, shall be made based on the grounds 
for removal of a judge from office under section 7443(f), 
and certification and transmittal by the Conference of any 
complaint shall be made to the President for consideration 
under section 7443(f). 
‘‘(c) HEARINGS.— 
‘‘(1) IN GENERAL.—In conducting hearings pur-
suant to subsection (a), the Tax Court may exercise 
the authority provided under section 1821 of title 28, 
United States Code, to pay the fees and allowances 
described in that section. 
‘‘(2) REIMBURSEMENT
FOR
EXPENSES.—The 
Tax Court shall have the power provided under sec-
tion 361 of such title 28 to award reimbursement for 
the reasonable expenses described in that section. Re-
imbursements under this paragraph shall be made out 
of any funds appropriated for purposes of the Tax 
Court.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
part II of subchapter C of chapter 76 is amended by adding 
at the end the following new item: 
‘‘Sec. 7466. Judicial conduct and disability procedures.’’.
2157 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to proceedings commenced after the date 
which is 180 days after the date of the enactment of this 
Act and, to the extent just and practicable, all proceedings 
pending on such date. 
SEC. 432. ADMINISTRATION, JUDICIAL CONFERENCE, AND 
FEES. 
(a) IN GENERAL.—Part III of subchapter C of chapter 
76 is amended by inserting before section 7471 the following 
new sections: 
‘‘SEC. 7470. ADMINISTRATION. 
‘‘Notwithstanding any other provision of law, the Tax 
Court may exercise, for purposes of management, adminis-
tration, and expenditure of funds of the Court, the authori-
ties provided for such purposes by any provision of law (in-
cluding any limitation with respect to such provision of 
law) applicable to a court of the United States (as that term 
is defined in section 451 of title 28, United States Code), 
except to the extent that such provision of law is incon-
sistent with a provision of this subchapter. 
‘‘SEC. 7470A. JUDICIAL CONFERENCE. 
‘‘(a) JUDICIAL CONFERENCE.—The chief judge may 
summon the judges and special trial judges of the Tax Court 
to an annual judicial conference, at such time and place 
as the chief judge shall designate, for the purpose of consid-
2158 
ering the business of the Tax Court and recommending 
means of improving the administration of justice within 
the jurisdiction of the Tax Court. The Tax Court shall pro-
vide by its rules for representation and active participation 
at such conferences by persons admitted to practice before 
the Tax Court and by other persons active in the legal pro-
fession. 
‘‘(b) REGISTRATION FEE.—The Tax Court may im-
pose a reasonable registration fee on persons (other than 
judges and special trial judges of the Tax Court) partici-
pating at judicial conferences convened pursuant to sub-
section (a). Amounts so received by the Tax Court shall be 
available to the Tax Court to defray the expenses of such 
conferences.’’. 
(b) DISPOSITION OF FEES.—Section 7473 is amended 
to read as follows: 
‘‘SEC. 7473. DISPOSITION OF FEES. 
‘‘Except as provided in sections 7470A and 7475, all 
fees received by the Tax Court pursuant to this title shall 
be deposited into a special fund of the Treasury to be avail-
able to offset funds appropriated for the operation and 
maintenance of the Tax Court.’’. 
(c) CLERICAL AMENDMENTS.—The table of sections for 
part III of subchapter C of chapter 76 is amended by insert-
2159 
ing before the item relating to section 7471 the following 
new items: 
‘‘Sec. 7470. Administration. 
‘‘Sec. 7470A. Judicial conference.’’. 
PART 3—CLARIFICATION RELATING TO UNITED 
STATES TAX COURT 
SEC. 441. CLARIFICATION RELATING TO UNITED STATES 
TAX COURT. 
Section 7441 is amended by adding at the end the fol-
lowing: ‘‘The Tax Court is not an agency of, and shall be 
independent of, the executive branch of the Government.’’. 
TITLE V—TRADE-RELATED 
PROVISIONS 
SEC. 501. MODIFICATION OF EFFECTIVE DATE OF PROVI-
SIONS RELATING TO TARIFF CLASSIFICATION 
OF RECREATIONAL PERFORMANCE OUTER-
WEAR. 
Section 601(c) of the Trade Preferences Extension Act 
of 2015 (Public Law 114–27; 129 Stat. 412) is amended— 
(1) in paragraph (1), by striking ‘‘the 180th day 
after the date of the enactment of this Act’’ and in-
serting ‘‘March 31, 2016’’; and 
(2) in paragraph (2), by striking ‘‘such 180th 
day’’ and inserting ‘‘March 31, 2016’’.
2160 
SEC. 502. AGREEMENT BY ASIA-PACIFIC ECONOMIC CO-
OPERATION MEMBERS TO REDUCE RATES OF 
DUTY ON CERTAIN ENVIRONMENTAL GOODS. 
Section 107 of the Bipartisan Congressional Trade 
Priorities and Accountability Act of 2015 (Public Law 
114–26; 19 U.S.C. 4206) is amended by adding at the end 
the following: 
‘‘(c) AGREEMENT
BY ASIA-PACIFIC ECONOMIC CO-
OPERATION MEMBERS TO REDUCE RATES OF DUTY ON 
CERTAIN ENVIRONMENTAL GOODS.—Notwithstanding the 
notification requirement described in section 103(a)(2), the 
President may exercise the proclamation authority provided 
for in section 103(a)(1)(B) to implement an agreement by 
members of the Asia-Pacific Economic Cooperation (APEC) 
to reduce any rate of duty on certain environmental goods 
included in Annex C of the APEC Leaders Declaration 
issued on September 9, 2012, if (and only if) the President, 
as soon as feasible after the date of the enactment of this 
subsection, and before exercising proclamation authority 
under section 103(a)(1)(B), notifies Congress of the negotia-
tions relating to the agreement and the specific United 
States objectives in the negotiations.’’. 
TITLE VI—BUDGETARY EFFECTS 
SEC. 601. BUDGETARY EFFECTS. 
(a) PAYGO SCORECARD.—The budgetary effects of this 
Act shall not be entered on either PAYGO scorecard main-
114TH CONGRESS 
1ST SESSION 
H.R. 2029 
HOUSE AMENDMENTS TO 
SENATE AMENDMENT