I 
112TH CONGRESS 
1ST SESSION 
H. R. 206 
To amend the Internal Revenue Code of 1986 to prevent pending tax 
increases, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 6, 2011 
Mr. NEUGEBAUER (for himself, Mr. CHAFFETZ, Mr. KING of Iowa, Mr. GAR-
RETT, Mr. MCCAUL, Mr. BARTON of Texas, Mr. BURTON of Indiana, Mr. 
PAUL, Mr. LAMBORN, Ms. FOXX, Mr. BARTLETT, Mr. MCKINLEY, Mrs. 
MCMORRIS RODGERS, Mr. BURGESS, Mr. STEARNS, Mr. COFFMAN of 
Colorado, Mr. SIMPSON, Mr. BROUN of Georgia, Mr. MCKEON, Mr. MIL-
LER of Florida, Mr. LATTA, Mr. BISHOP of Utah, Mr. POE of Texas, Mr. 
CRAWFORD, and Mr. MARCHANT) introduced the following bill; which was 
referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to prevent 
pending tax increases, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EGTRRA, JGTRRA, AND CERTAIN OTHER TAX 
RELIEF MADE PERMANENT. 
(a) ECONOMIC GROWTH
AND TAX RELIEF REC-
ONCILIATION ACT OF 2001.—Title IX of the Economic 
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Growth and Tax Relief Reconciliation Act of 2001 is here-
by repealed. 
(b) INCOME TAX RATES ON DIVIDENDS AND NET 
CAPITAL GAIN.—Section 303 of the Jobs and Growth Tax 
Relief Reconciliation Act of 2003 is hereby repealed. 
(c) DEDUCTION
FOR STATE
AND LOCAL SALES 
TAXES.—Paragraph (5) of section 164(b) of the Internal 
Revenue Code of 1986 is amended by striking subpara-
graph (I). 
(d) DEDUCTION FOR TUITION AND RELATED EX-
PENSES.—Section 222 of such Code is amended by strik-
ing subsection (e). 
(e) INCREASED
EXPENSING
FOR
SMALL
BUSI-
NESS.— 
(1) DOLLAR
LIMITATION.—Paragraph (1) of 
section 179(b) of such Code is amended by striking 
subparagraphs (C) and (D) and inserting the fol-
lowing new subparagraph: 
‘‘(C) $125,000 in the case of taxable years 
beginning after 2011.’’. 
(2) INCREASE IN QUALIFYING INVESTMENT AT 
WHICH PHASEOUT BEGINS.—Paragraph (2) of sec-
tion 179(b) of such Code is amended by striking 
subparagraphs (C) and (D) and inserting the fol-
lowing new subparagraph: 
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‘‘(C) $500,000 in the case of taxable years 
beginning after 2011.’’. 
(3) INFLATION ADJUSTMENTS.—Paragraph (6) 
of section 179 of such Code is amended to read as 
follows: 
‘‘(6) INFLATION ADJUSTMENTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2012, the $125,000 and $500,000 amounts in 
paragraphs (1)(C) and (2)(C) shall each be in-
creased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 2011’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(B) ROUNDING.— 
‘‘(i) DOLLAR
LIMITATION.—If the 
amount in paragraph (1)(C), as increased 
under subparagraph (A), is not a multiple 
of $1,000, such amount shall be rounded 
to the nearest multiple of $1,000. 
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‘‘(ii) PHASEOUT
AMOUNT.—If the 
amount in paragraph (2)(C), as increased 
under subparagraph (A), is not a multiple 
of $10,000, such amount shall be rounded 
to the nearest multiple of $10,000.’’. 
(4) REVOCATION
OF
ELECTION.—Paragraph 
(2) of section 179(c) of such Code (relating to elec-
tion irrevocable) is amended by striking ‘‘and before 
2013’’. 
(5) COMPUTER SOFTWARE.—Clause (ii) of sec-
tion 179(d)(1)(A) of such Code is amended by strik-
ing ‘‘and before 2012’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Æ 
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