In the Senate of the United States, 
January 1 (legislative day, December 30, 2012), 2013. 
Resolved, That the bill from the House of Representa-
tives (H.R. 8) entitled ‘‘An Act to extend certain tax relief 
provisions enacted in 2001 and 2003, and to provide for ex-
pedited consideration of a bill providing for comprehensive 
tax reform, and for other purposes.’’, do pass with the fol-
lowing 
AMENDMENTS: 
Strike all after the enacting clause and insert the 
following: 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Taxpayer Relief Act of 2012’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986.
† HR 8 EAS 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—GENERAL EXTENSIONS 
Sec. 101. Permanent extension and modification of 2001 tax relief. 
Sec. 102. Permanent extension and modification of 2003 tax relief. 
Sec. 103. Extension of 2009 tax relief. 
Sec. 104. Permanent alternative minimum tax relief. 
TITLE II—INDIVIDUAL TAX EXTENDERS 
Sec. 201. Extension of deduction for certain expenses of elementary and secondary 
school teachers. 
Sec. 202. Extension of exclusion from gross income of discharge of qualified prin-
cipal residence indebtedness. 
Sec. 203. Extension of parity for exclusion from income for employer-provided 
mass transit and parking benefits. 
Sec. 204. Extension of mortgage insurance premiums treated as qualified resi-
dence interest. 
Sec. 205. Extension of deduction of State and local general sales taxes. 
Sec. 206. Extension of special rule for contributions of capital gain real property 
made for conservation purposes. 
Sec. 207. Extension of above-the-line deduction for qualified tuition and related 
expenses. 
Sec. 208. Extension of tax-free distributions from individual retirement plans for 
charitable purposes. 
Sec. 209. Improve and make permanent the provision authorizing the Internal 
Revenue Service to disclose certain return and return informa-
tion to certain prison officials. 
TITLE III—BUSINESS TAX EXTENDERS 
Sec. 301. Extension and modification of research credit. 
Sec. 302. Extension of temporary minimum low-income tax credit rate for non- 
federally subsidized new buildings. 
Sec. 303. Extension of housing allowance exclusion for determining area median 
gross income for qualified residential rental project exempt facil-
ity bonds. 
Sec. 304. Extension of Indian employment tax credit. 
Sec. 305. Extension of new markets tax credit. 
Sec. 306. Extension of railroad track maintenance credit. 
Sec. 307. Extension of mine rescue team training credit. 
Sec. 308. Extension of employer wage credit for employees who are active duty 
members of the uniformed services. 
Sec. 309. Extension of work opportunity tax credit. 
Sec. 310. Extension of qualified zone academy bonds. 
Sec. 311. Extension of 15-year straight-line cost recovery for qualified leasehold 
improvements, qualified restaurant buildings and improvements, 
and qualified retail improvements. 
Sec. 312. Extension of 7-year recovery period for motorsports entertainment com-
plexes.
† HR 8 EAS 
Sec. 313. Extension of accelerated depreciation for business property on an In-
dian reservation. 
Sec. 314. Extension of enhanced charitable deduction for contributions of food in-
ventory. 
Sec. 315. Extension of increased expensing limitations and treatment of certain 
real property as section 179 property. 
Sec. 316. Extension of election to expense mine safety equipment. 
Sec. 317. Extension of special expensing rules for certain film and television pro-
ductions. 
Sec. 318. Extension of deduction allowable with respect to income attributable to 
domestic production activities in Puerto Rico. 
Sec. 319. Extension of modification of tax treatment of certain payments to con-
trolling exempt organizations. 
Sec. 320. Extension of treatment of certain dividends of regulated investment 
companies. 
Sec. 321. Extension of RIC qualified investment entity treatment under FIRPTA. 
Sec. 322. Extension of subpart F exception for active financing income. 
Sec. 323. Extension of look-thru treatment of payments between related controlled 
foreign corporations under foreign personal holding company 
rules. 
Sec. 324. Extension of temporary exclusion of 100 percent of gain on certain 
small business stock. 
Sec. 325. Extension of basis adjustment to stock of S corporations making chari-
table contributions of property. 
Sec. 326. Extension of reduction in S-corporation recognition period for built-in 
gains tax. 
Sec. 327. Extension of empowerment zone tax incentives. 
Sec. 328. Extension of tax-exempt financing for New York Liberty Zone. 
Sec. 329. Extension of temporary increase in limit on cover over of rum excise 
taxes to Puerto Rico and the Virgin Islands. 
Sec. 330. Modification and extension of American Samoa economic development 
credit. 
Sec. 331. Extension and modification of bonus depreciation. 
TITLE IV—ENERGY TAX EXTENDERS 
Sec. 401. Extension of credit for energy-efficient existing homes. 
Sec. 402. Extension of credit for alternative fuel vehicle refueling property. 
Sec. 403. Extension of credit for 2- or 3-wheeled plug-in electric vehicles. 
Sec. 404. Extension and modification of cellulosic biofuel producer credit. 
Sec. 405. Extension of incentives for biodiesel and renewable diesel. 
Sec. 406. Extension of production credit for Indian coal facilities placed in serv-
ice before 2009. 
Sec. 407. Extension and modification of credits with respect to facilities pro-
ducing energy from certain renewable resources. 
Sec. 408. Extension of credit for energy-efficient new homes. 
Sec. 409. Extension of credit for energy-efficient appliances. 
Sec. 410. Extension and modification of special allowance for cellulosic biofuel 
plant property. 
Sec. 411. Extension of special rule for sales or dispositions to implement FERC 
or State electric restructuring policy for qualified electric utili-
ties. 
Sec. 412. Extension of alternative fuels excise tax credits.
† HR 8 EAS 
TITLE V—UNEMPLOYMENT 
Sec. 501. Extension of emergency unemployment compensation program. 
Sec. 502. Temporary extension of extended benefit provisions. 
Sec. 503. Extension of funding for reemployment services and reemployment and 
eligibility assessment activities. 
Sec. 504. Additional extended unemployment benefits under the Railroad Unem-
ployment Insurance Act. 
TITLE VI—MEDICARE AND OTHER HEALTH EXTENSIONS 
Subtitle A—Medicare Extensions 
Sec. 601. Medicare physician payment update. 
Sec. 602. Work geographic adjustment. 
Sec. 603. Payment for outpatient therapy services. 
Sec. 604. Ambulance add-on payments. 
Sec. 605. Extension of Medicare inpatient hospital payment adjustment for low- 
volume hospitals. 
Sec. 606. Extension of the Medicare-dependent hospital (MDH) program. 
Sec. 607. Extension for specialized Medicare Advantage plans for special needs 
individuals. 
Sec. 608. Extension of Medicare reasonable cost contracts. 
Sec. 609. Performance improvement. 
Sec. 610. Extension of funding outreach and assistance for low-income programs. 
Subtitle B—Other Health Extensions 
Sec. 621. Extension of the qualifying individual (QI) program. 
Sec. 622. Extension of Transitional Medical Assistance (TMA). 
Sec. 623. Extension of Medicaid and CHIP Express Lane option. 
Sec. 624. Extension of family-to-family health information centers. 
Sec. 625. Extension of Special Diabetes Program for Type I diabetes and for In-
dians. 
Subtitle C—Other Health Provisions 
Sec. 631. IPPS documentation and coding adjustment for implementation of MS- 
DRGs. 
Sec. 632. Revisions to the Medicare ESRD bundled payment system to reflect 
findings in the GAO report. 
Sec. 633. Treatment of multiple service payment policies for therapy services. 
Sec. 634. Payment for certain radiology services furnished under the Medicare 
hospital outpatient department prospective payment system. 
Sec. 635. Adjustment of equipment utilization rate for advanced imaging services. 
Sec. 636. Medicare payment of competitive prices for diabetic supplies and elimi-
nation of overpayment for diabetic supplies. 
Sec. 637. Medicare payment adjustment for non-emergency ambulance transports 
for ESRD beneficiaries. 
Sec. 638. Removing obstacles to collection of overpayments. 
Sec. 639. Medicare advantage coding intensity adjustment. 
Sec. 640. Elimination of all funding for the Medicare Improvement Fund. 
Sec. 641. Rebasing of State DSH allotments. 
Sec. 642. Repeal of CLASS program. 
Sec. 643. Commission on Long-Term Care. 
Sec. 644. Consumer Operated and Oriented Plan program contingency fund.
† HR 8 EAS 
TITLE VII—EXTENSION OF AGRICULTURAL PROGRAMS 
Sec. 701. 1-year extension of agricultural programs. 
Sec. 702. Supplemental agricultural disaster assistance. 
TITLE VIII—MISCELLANEOUS PROVISIONS 
Sec. 801. Strategic delivery systems. 
Sec. 802. No cost of living adjustment in pay of members of congress. 
TITLE IX—BUDGET PROVISIONS 
Subtitle A—Modifications of Sequestration 
Sec. 901. Treatment of sequester. 
Sec. 902. Amounts in applicable retirement plans may be transferred to des-
ignated Roth accounts without distribution. 
Subtitle B—Budgetary Effects 
Sec. 911. Budgetary effects. 
TITLE I—GENERAL EXTENSIONS 
SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 
2001 TAX RELIEF. 
(a) PERMANENT EXTENSION.— 
(1) IN GENERAL.—The Economic Growth and 
Tax Relief Reconciliation Act of 2001 is amended by 
striking title IX. 
(2) CONFORMING AMENDMENT.—The Tax Relief, 
Unemployment Insurance Reauthorization, and Job 
Creation Act of 2010 is amended by striking section 
304. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable, plan, or lim-
itation years beginning after December 31, 2012, and 
estates of decedents dying, gifts made, or generation 
skipping transfers after December 31, 2012.
† HR 8 EAS 
(b) APPLICATION OF INCOME TAX TO CERTAIN HIGH- 
INCOME TAXPAYERS.— 
(1) INCOME TAX RATES.— 
(A) TREATMENT OF 25-, 28-, AND 33-PER-
CENT RATE BRACKETS.—Paragraph (2) of sec-
tion 1(i) is amended to read as follows: 
‘‘(2) 25-, 28-, AND
33-PERCENT
RATE
BRACK-
ETS.—The tables under subsections (a), (b), (c), (d), 
and (e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each 
place it appears (before the application of sub-
paragraph (B)), 
‘‘(B) by substituting ‘28%’ for ‘31%’ each 
place it appears, and 
‘‘(C) by substituting ‘33%’ for ‘36%’ each 
place it appears.’’. 
(B) 35-PERCENT
RATE
BRACKET.—Sub-
section (i) of section 1 is amended by redesig-
nating paragraph (3) as paragraph (4) and by 
inserting after paragraph (2) the following new 
paragraph: 
‘‘(3) MODIFICATIONS TO INCOME TAX BRACKETS 
FOR HIGH-INCOME TAXPAYERS.—
† HR 8 EAS 
‘‘(A) 35-PERCENT RATE BRACKET.—In the 
case of taxable years beginning after December 
31, 2012— 
‘‘(i) the rate of tax under subsections 
(a), (b), (c), and (d) on a taxpayer’s taxable 
income in the highest rate bracket shall be 
35 percent to the extent such income does 
not exceed an amount equal to the excess 
of— 
‘‘(I) the applicable threshold, over 
‘‘(II) the dollar amount at which 
such bracket begins, and 
‘‘(ii) the 39.6 percent rate of tax under 
such subsections shall apply only to the tax-
payer’s taxable income in such bracket in 
excess of the amount to which clause (i) ap-
plies. 
‘‘(B) APPLICABLE THRESHOLD.—For pur-
poses of this paragraph, the term ‘applicable 
threshold’ means— 
‘‘(i) $450,000 in the case of subsection 
(a), 
‘‘(ii) $425,000 in the case of subsection 
(b),
† HR 8 EAS 
‘‘(iii) $400,000 in the case of sub-
section (c), and 
‘‘(iv) 1⁄2 the amount applicable under 
clause (i) (after adjustment, if any, under 
subparagraph (C)) in the case of subsection 
(d). 
‘‘(C) INFLATION
ADJUSTMENT.—For pur-
poses of this paragraph, with respect to taxable 
years beginning in calendar years after 2013, 
each of the dollar amounts under clauses (i), (ii), 
and (iii) of subparagraph (B) shall be adjusted 
in the same manner as under paragraph 
(1)(C)(i), except that subsection (f)(3)(B) shall be 
applied by substituting ‘2012’ for ‘1992’.’’. 
(2) PHASEOUT OF PERSONAL EXEMPTIONS AND 
ITEMIZED DEDUCTIONS.— 
(A) OVERALL LIMITATION ON ITEMIZED DE-
DUCTIONS.—Section 68 is amended— 
(i) by striking subsection (b) and in-
serting the following: 
‘‘(b) APPLICABLE AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
the term ‘applicable amount’ means—
† HR 8 EAS 
‘‘(A) $300,000 in the case of a joint return 
or a surviving spouse (as defined in section 
2(a)), 
‘‘(B) $275,000 in the case of a head of 
household (as defined in section 2(b)), 
‘‘(C) $250,000 in the case of an individual 
who is not married and who is not a surviving 
spouse or head of household, and 
‘‘(D) 1⁄2 the amount applicable under sub-
paragraph (A) (after adjustment, if any, under 
paragraph (2)) in the case of a married indi-
vidual filing a separate return. 
For purposes of this paragraph, marital status shall 
be determined under section 7703. 
‘‘(2) INFLATION
ADJUSTMENT.—In the case of 
any taxable year beginning in calendar years after 
2013, each of the dollar amounts under subpara-
graphs (A), (B), and (C) of paragraph (1) shall be 
shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar year 
in which the taxable year begins, except that sec-
tion 1(f)(3)(B) shall be applied by substituting 
‘2012’ for ‘1992’.
† HR 8 EAS 
If any amount after adjustment under the preceding 
sentence is not a multiple of $50, such amount shall 
be rounded to the next lowest multiple of $50.’’, and 
(ii) by striking subsections (f) and (g). 
(B) PHASEOUT OF DEDUCTIONS FOR PER-
SONAL EXEMPTIONS.— 
(i) IN
GENERAL.—Paragraph (3) of 
section 151(d) is amended— 
(I) by striking ‘‘the threshold 
amount’’ in subparagraphs (A) and 
(B) and inserting ‘‘the applicable 
amount in effect under section 68(b)’’, 
(II) by striking subparagraph (C) 
and redesignating subparagraph (D) 
as subparagraph (C), and 
(III) by striking subparagraphs 
(E) and (F). 
(ii) 
CONFORMING
AMENDMENTS.— 
Paragraph (4) of section 151(d) is amend-
ed— 
(I) by striking subparagraph (B), 
(II) by redesignating clauses (i) 
and (ii) of subparagraph (A) as sub-
paragraphs (A) and (B), respectively,
† HR 8 EAS 
and by indenting such subparagraphs 
(as so redesignated) accordingly, and 
(III) by striking all that precedes 
‘‘in a calendar year after 1989,’’ and 
inserting the following: 
‘‘(4) INFLATION
ADJUSTMENT.—In the case of 
any taxable year beginning’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2012. 
(c) MODIFICATIONS OF ESTATE TAX.— 
(1) MAXIMUM ESTATE TAX RATE EQUAL TO 40 
PERCENT.—The table contained in subsection (c) of 
section 2001, as amended by section 302(a)(2) of the 
Tax Relief, Unemployment Insurance Reauthoriza-
tion, and Job Creation Act of 2010, is amended by 
striking ‘‘Over $500,000’’ and all that follows and in-
serting the following: 
‘‘Over $500,000 but not over $750,000 ..
$155,800, plus 37 percent of the excess 
of such amount over $500,000. 
Over $750,000 but not over $1,000,000
$248,300, plus 39 percent of the excess 
of such amount over $750,000. 
Over $1,000,000 .......................................
$345,800, plus 40 percent of the excess 
of such amount over $1,000,000.’’. 
(2) TECHNICAL CORRECTION.—Clause (i) of sec-
tion 2010(c)(4)(B) is amended by striking ‘‘basic ex-
clusion amount’’ and inserting ‘‘applicable exclusion 
amount’’.
† HR 8 EAS 
(3) EFFECTIVE DATES.— 
(A) IN GENERAL.—Except as otherwise pro-
vided by in this paragraph, the amendments 
made by this subsection shall apply to estates of 
decedents dying, generation-skipping transfers, 
and gifts made, after December 31, 2012. 
(B) TECHNICAL CORRECTION.—The amend-
ment made by paragraph (2) shall take effect as 
if included in the amendments made by section 
303 of the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010. 
SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 
2003 TAX RELIEF. 
(a) PERMANENT EXTENSION.—The Jobs and Growth 
Tax Relief Reconciliation Act of 2003 is amended by strik-
ing section 303. 
(b) 20-PERCENT CAPITAL GAINS RATE FOR CERTAIN 
HIGH INCOME INDIVIDUALS.— 
(1) IN GENERAL.—Paragraph (1) of section 1(h) 
is amended by striking subparagraph (C), by redesig-
nating subparagraphs (D) and (E) as subparagraphs 
(E) and (F) and by inserting after subparagraph (B) 
the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of—
† HR 8 EAS 
‘‘(i) so much of the adjusted net capital 
gain (or, if less, taxable income) as exceeds 
the amount on which a tax is determined 
under subparagraph (B), or 
‘‘(ii) the excess of— 
‘‘(I) the amount of taxable income 
which would (without regard to this 
paragraph) be taxed at a rate below 
39.6 percent, over 
‘‘(II) the sum of the amounts on 
which a tax is determined under sub-
paragraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable income) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C),’’. 
(2) MINIMUM
TAX.—Paragraph (3) of section 
55(b) is amended by striking subparagraph (C), by 
redesignating subparagraph (D) as subparagraph 
(E), and by inserting after subparagraph (B) the fol-
lowing new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net capital 
gain (or, if less, taxable excess) as exceeds
† HR 8 EAS 
the amount on which tax is determined 
under subparagraph (B), or 
‘‘(ii) the excess described in section 
1(h)(1)(C)(ii), plus 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable excess) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C), plus’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The following provisions are each amended 
by striking ‘‘15 percent’’ and inserting ‘‘20 percent’’: 
(A) Section 531. 
(B) Section 541. 
(C) Section 1445(e)(1). 
(D) 
The 
second 
sentence 
of 
section 
7518(g)(6)(A). 
(E) Section 53511(f)(2) of title 46, United 
States Code. 
(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each 
amended by striking ‘‘5 percent (0 percent in the case 
of taxable years beginning after 2007)’’ and inserting 
‘‘0 percent’’. 
(3) Section 1445(e)(6) is amended by striking 
‘‘15 percent (20 percent in the case of taxable years
† HR 8 EAS 
beginning after December 31, 2010)’’ and inserting 
‘‘20 percent’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided, 
the amendments made by subsections (b) and (c) shall 
apply to taxable years beginning after December 31, 
2012. 
(2) WITHHOLDING.—The amendments made by 
paragraphs (1)(C) and (3) of subsection (c) shall 
apply to amounts paid on or after January 1, 2013. 
SEC. 103. EXTENSION OF 2009 TAX RELIEF. 
(a) 5-YEAR EXTENSION OF AMERICAN OPPORTUNITY 
TAX CREDIT.— 
(1) IN GENERAL.—Section 25A(i) is amended by 
striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 
‘‘after 2008 and before 2018’’. 
(2) 
TREATMENT
OF
POSSESSIONS.—Section 
1004(c)(1) of division B of the American Recovery 
and Reinvestment Tax Act of 2009 is amended by 
striking ‘‘in 2009, 2010, 2011, and 2012’’ each place 
it appears and inserting ‘‘after 2008 and before 
2018’’. 
(b) 5-YEAR EXTENSION OF CHILD TAX CREDIT.—Sec-
tion 24(d)(4) is amended—
† HR 8 EAS 
(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the 
heading and inserting ‘‘FOR CERTAIN YEARS’’, and 
(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ 
and inserting ‘‘after 2008 and before 2018’’. 
(c) 5-YEAR EXTENSION
OF EARNED INCOME TAX 
CREDIT.—Section 32(b)(3) is amended— 
(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the 
heading and inserting ‘‘FOR CERTAIN YEARS’’, and 
(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ 
and inserting ‘‘after 2008 and before 2018’’. 
(d) PERMANENT EXTENSION OF RULE DISREGARDING 
REFUNDS
IN
THE ADMINISTRATION
OF FEDERAL PRO-
GRAMS AND FEDERALLY ASSISTED PROGRAMS.—Section 
6409 is amended to read as follows: 
‘‘SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRA-
TION OF FEDERAL PROGRAMS AND FEDER-
ALLY ASSISTED PROGRAMS. 
‘‘Notwithstanding any other provision of law, any re-
fund (or advance payment with respect to a refundable 
credit) made to any individual under this title shall not 
be taken into account as income, and shall not be taken 
into account as resources for a period of 12 months from 
receipt, for purposes of determining the eligibility of such 
individual (or any other individual) for benefits or assist-
ance (or the amount or extent of benefits or assistance)
† HR 8 EAS 
under any Federal program or under any State or local 
program financed in whole or in part with Federal funds.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to taxable years beginning after December 31, 
2012. 
(2) RULE
REGARDING
DISREGARD
OF
RE-
FUNDS.—The amendment made by subsection (d) 
shall apply to amounts received after December 31, 
2012. 
SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF. 
(a) 2012 EXEMPTION AMOUNTS MADE PERMANENT.— 
(1) IN
GENERAL.—Paragraph (1) of section 
55(d) is amended— 
(A) by striking ‘‘$45,000’’ and all that fol-
lows through ‘‘2011)’’ in subparagraph (A) and 
inserting ‘‘$78,750’’, 
(B) by striking ‘‘$33,750’’ and all that fol-
lows through ‘‘2011)’’ in subparagraph (B) and 
inserting ‘‘$50,600’’, and 
(C) by striking ‘‘paragraph (1)(A)’’ in sub-
paragraph (C) and inserting ‘‘subparagraph 
(A)’’. 
(b) EXEMPTION AMOUNTS INDEXED FOR INFLATION.—