113TH CONGRESS 
2D SESSION 
H. R. 5771 
AN ACT 
To amend the Internal Revenue Code of 1986 to extend 
certain expiring provisions and make technical correc-
tions, to amend the Internal Revenue Code of 1986 
to provide for the tax treatment of ABLE accounts es-
tablished under State programs for the care of family 
members with disabilities, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
DIVISION A—TAX INCREASE 
PREVENTION ACT OF 2014 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Tax Increase Prevention Act of 2014’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
DIVISION A—TAX INCREASE PREVENTION ACT OF 2014 
Sec. 1. Short title, etc. 
TITLE I—CERTAIN EXPIRING PROVISIONS 
Subtitle A—Individual Tax Extenders 
Sec. 101. Extension of deduction for certain expenses of elementary and sec-
ondary school teachers. 
Sec. 102. Extension of exclusion from gross income of discharge of qualified 
principal residence indebtedness. 
Sec. 103. Extension of parity for employer-provided mass transit and parking 
benefits. 
Sec. 104. Extension of mortgage insurance premiums treated as qualified resi-
dence interest. 
Sec. 105. Extension of deduction of State and local general sales taxes. 
Sec. 106. Extension of special rule for contributions of capital gain real prop-
erty made for conservation purposes. 
Sec. 107. Extension of above-the-line deduction for qualified tuition and related 
expenses. 
Sec. 108. Extension of tax-free distributions from individual retirement plans 
for charitable purposes.
Subtitle B—Business Tax Extenders 
Sec. 111. Extension of research credit. 
Sec. 112. Extension of temporary minimum low-income housing tax credit rate 
for non-federally subsidized buildings. 
Sec. 113. Extension of military housing allowance exclusion for determining 
whether a tenant in certain counties is low-income. 
Sec. 114. Extension of Indian employment tax credit. 
Sec. 115. Extension of new markets tax credit. 
Sec. 116. Extension of railroad track maintenance credit. 
Sec. 117. Extension of mine rescue team training credit. 
Sec. 118. Extension of employer wage credit for employees who are active duty 
members of the uniformed services. 
Sec. 119. Extension of work opportunity tax credit. 
Sec. 120. Extension of qualified zone academy bonds. 
Sec. 121. Extension of classification of certain race horses as 3-year property. 
Sec. 122. Extension of 15-year straight-line cost recovery for qualified leasehold 
improvements, qualified restaurant buildings and improve-
ments, and qualified retail improvements. 
Sec. 123. Extension of 7-year recovery period for motorsports entertainment 
complexes. 
Sec. 124. Extension of accelerated depreciation for business property on an In-
dian reservation. 
Sec. 125. Extension of bonus depreciation. 
Sec. 126. Extension of enhanced charitable deduction for contributions of food 
inventory. 
Sec. 127. Extension of increased expensing limitations and treatment of certain 
real property as section 179 property. 
Sec. 128. Extension of election to expense mine safety equipment. 
Sec. 129. Extension of special expensing rules for certain film and television 
productions. 
Sec. 130. Extension of deduction allowable with respect to income attributable 
to domestic production activities in Puerto Rico. 
Sec. 131. Extension of modification of tax treatment of certain payments to 
controlling exempt organizations. 
Sec. 132. Extension of treatment of certain dividends of regulated investment 
companies. 
Sec. 133. Extension of RIC qualified investment entity treatment under 
FIRPTA. 
Sec. 134. Extension of subpart F exception for active financing income. 
Sec. 135. Extension of look-thru treatment of payments between related con-
trolled foreign corporations under foreign personal holding 
company rules. 
Sec. 136. Extension of temporary exclusion of 100 percent of gain on certain 
small business stock. 
Sec. 137. Extension of basis adjustment to stock of S corporations making 
charitable contributions of property. 
Sec. 138. Extension of reduction in S-corporation recognition period for built- 
in gains tax. 
Sec. 139. Extension of empowerment zone tax incentives. 
Sec. 140. Extension of temporary increase in limit on cover over of rum excise 
taxes to Puerto Rico and the Virgin Islands. 
Sec. 141. Extension of American Samoa economic development credit. 
Subtitle C—Energy Tax Extenders
Sec. 151. Extension of credit for nonbusiness energy property. 
Sec. 152. Extension of second generation biofuel producer credit. 
Sec. 153. Extension of incentives for biodiesel and renewable diesel. 
Sec. 154. Extension of production credit for Indian coal facilities placed in serv-
ice before 2009. 
Sec. 155. Extension of credits with respect to facilities producing energy from 
certain renewable resources. 
Sec. 156. Extension of credit for energy-efficient new homes. 
Sec. 157. Extension of special allowance for second generation biofuel plant 
property. 
Sec. 158. Extension of energy efficient commercial buildings deduction. 
Sec. 159. Extension of special rule for sales or dispositions to implement FERC 
or State electric restructuring policy for qualified electric utili-
ties. 
Sec. 160. Extension of excise tax credits relating to certain fuels. 
Sec. 161. Extension of credit for alternative fuel vehicle refueling property. 
Subtitle D—Extenders Relating to Multiemployer Defined Benefit Pension 
Plans 
Sec. 171. Extension of automatic extension of amortization periods. 
Sec. 172. Extension of shortfall funding method and endangered and critical 
rules. 
TITLE II—TECHNICAL CORRECTIONS 
Sec. 201. Short title. 
Sec. 202. Amendments relating to American Taxpayer Relief Act of 2012. 
Sec. 203. Amendment relating to Middle Class Tax Relief and Job Creation Act 
of 2012. 
Sec. 204. Amendment relating to FAA Modernization and Reform Act of 2012. 
Sec. 205. Amendments relating to Regulated Investment Company Moderniza-
tion Act of 2010. 
Sec. 206. Amendments relating to Tax Relief, Unemployment Insurance Reau-
thorization, and Job Creation Act of 2010. 
Sec. 207. Amendments relating to Creating Small Business Jobs Act of 2010. 
Sec. 208. Clerical amendment relating to Hiring Incentives to Restore Employ-
ment Act. 
Sec. 209. Amendments relating to American Recovery and Reinvestment Tax 
Act of 2009. 
Sec. 210. Amendments relating to Energy Improvement and Extension Act of 
2008. 
Sec. 211. Amendments relating to Tax Extenders and Alternative Minimum 
Tax Relief Act of 2008. 
Sec. 212. Clerical amendments relating to Housing Assistance Tax Act of 2008. 
Sec. 213. Amendments and provision relating to Heroes Earnings Assistance 
and Relief Tax Act of 2008. 
Sec. 214. Amendments relating to Economic Stimulus Act of 2008. 
Sec. 215. Amendments relating to Tax Technical Corrections Act of 2007. 
Sec. 216. Amendment relating to Tax Relief and Health Care Act of 2006. 
Sec. 217. Amendment relating to Safe, Accountable, Flexible, Efficient Trans-
portation Equity Act of 2005: A Legacy for Users. 
Sec. 218. Amendments relating to Energy Tax Incentives Act of 2005. 
Sec. 219. Amendments relating to American Jobs Creation Act of 2004. 
Sec. 220. Other clerical corrections. 
Sec. 221. Deadwood provisions.
TITLE III—JOINT COMMITTEE ON TAXATION 
Sec. 301. Increased refund and credit threshold for Joint Committee on Tax-
ation review of C corporation return. 
TITLE IV—BUDGETARY EFFECTS 
Sec. 401. Budgetary effects. 
DIVISION B—ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 
2014 
Sec. 1. Short title; etc. 
TITLE I—QUALIFIED ABLE PROGRAMS 
Sec. 101. Purposes. 
Sec. 102. Qualified ABLE programs. 
Sec. 103. Treatment of ABLE accounts under certain Federal programs. 
Sec. 104. Treatment of able accounts in bankruptcy. 
Sec. 105. Investment direction rule for 529 plans. 
TITLE II—OFFSETS 
Sec. 201. Correction to workers compensation offset age. 
Sec. 202. Accelerated application of relative value targets for misvalued services 
in the Medicare physician fee schedule. 
Sec. 203. Consistent treatment of vacuum erection systems in Medicare Parts 
B and D. 
Sec. 204. One-year delay of implementation of oral-only policy under Medicare 
ESRD prospective payment system. 
Sec. 205. Modification relating to Inland Waterways Trust Fund financing 
rate. 
Sec. 206. Certified professional employer organizations. 
Sec. 207. Exclusion of dividends from controlled foreign corporations from the 
definition of personal holding company income for purposes of 
the personal holding company rules. 
Sec. 208. Inflation adjustment for certain civil penalties under the Internal 
Revenue Code of 1986. 
Sec. 209. Increase in continuous levy.
TITLE I—CERTAIN EXPIRING 
PROVISIONS 
Subtitle A—Individual Tax 
Extenders 
SEC. 101. EXTENSION OF DEDUCTION FOR CERTAIN EX-
PENSES OF ELEMENTARY AND SECONDARY 
SCHOOL TEACHERS. 
(a) IN GENERAL.—Subparagraph (D) of section 
62(a)(2) is amended by striking ‘‘or 2013’’ and inserting 
‘‘2013, or 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 102. EXTENSION OF EXCLUSION FROM GROSS INCOME 
OF DISCHARGE OF QUALIFIED PRINCIPAL 
RESIDENCE INDEBTEDNESS. 
(a) IN GENERAL.—Subparagraph (E) of section 
108(a)(1) is amended by striking ‘‘January 1, 2014’’ and 
inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to indebtedness discharged after 
December 31, 2013.
SEC. 103. EXTENSION OF PARITY FOR EMPLOYER-PRO-
VIDED MASS TRANSIT AND PARKING BENE-
FITS. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) 
is amended by striking ‘‘January 1, 2014’’ and inserting 
‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to months after December 31, 
2013. 
SEC. 104. 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, 
2013’’ and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or accrued after 
December 31, 2013. 
SEC. 105. EXTENSION OF DEDUCTION OF STATE AND LOCAL 
GENERAL SALES TAXES. 
(a) IN
GENERAL.—Subparagraph (I) of section 
164(b)(5) is amended by striking ‘‘January 1, 2014’’ and 
inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013.
SEC. 106. EXTENSION OF SPECIAL RULE FOR CONTRIBU-
TIONS OF CAPITAL GAIN REAL PROPERTY 
MADE FOR CONSERVATION PURPOSES. 
(a) 
IN
GENERAL.—Clause 
(vi) 
of 
section 
170(b)(1)(E) is amended by striking ‘‘December 31, 
2013’’ and inserting ‘‘December 31, 2014’’. 
(b) CONTRIBUTIONS BY CERTAIN CORPORATE FARM-
ERS AND RANCHERS.—Clause (iii) of section 170(b)(2)(B) 
is amended by striking ‘‘December 31, 2013’’ and insert-
ing ‘‘December 31, 2014’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2013. 
SEC. 107. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 
QUALIFIED 
TUITION 
AND 
RELATED 
EX-
PENSES. 
(a) IN GENERAL.—Subsection (e) of section 222 is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013.
SEC. 108. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM 
INDIVIDUAL RETIREMENT PLANS FOR CHARI-
TABLE PURPOSES. 
(a) IN GENERAL.—Subparagraph (F) of section 
408(d)(8) is amended by striking ‘‘December 31, 2013’’ 
and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made in taxable 
years beginning after December 31, 2013. 
Subtitle B—Business Tax 
Extenders 
SEC. 111. EXTENSION OF RESEARCH CREDIT. 
(a) IN GENERAL.—Paragraph (1) of section 41(h) is 
amended by striking ‘‘paid or incurred’’ and all that fol-
lows and inserting ‘‘paid or incurred after December 31, 
2014.’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (D) 
of section 45C(b)(1) is amended to read as follows: 
‘‘(D) SPECIAL RULE.—If section 41 is not 
in effect for any period, such section shall be 
deemed to remain in effect for such period for 
purposes of this paragraph.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2013.
SEC. 112. EXTENSION OF TEMPORARY MINIMUM LOW-IN-
COME HOUSING TAX CREDIT RATE FOR NON- 
FEDERALLY SUBSIDIZED BUILDINGS. 
(a) IN GENERAL.—Subparagraph (A) of section 
42(b)(2) is amended by striking ‘‘January 1, 2014’’ and 
inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on January 1, 2014. 
SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE 
EXCLUSION FOR DETERMINING WHETHER A 
TENANT IN CERTAIN COUNTIES IS LOW-IN-
COME. 
(a) IN GENERAL.—Subsection (b) of section 3005 of 
the Housing Assistance Tax Act of 2008 is amended by 
striking ‘‘January 1, 2014’’ each place it appears and in-
serting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the enact-
ment of section 3005 of the Housing Assistance Tax Act 
of 2008. 
SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CRED-
IT. 
(a) IN GENERAL.—Subsection (f) of section 45A is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’.
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 115. EXTENSION OF NEW MARKETS TAX CREDIT. 
(a) IN GENERAL.—Subparagraph (G) of section 
45D(f)(1) is amended by striking ‘‘and 2013’’ and insert-
ing ‘‘2013, and 2014’’. 
(b) CARRYOVER
OF UNUSED LIMITATION.—Para-
graph (3) of section 45D(f) is amended by striking 
‘‘2018’’ and inserting ‘‘2019’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
December 31, 2013. 
SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE 
CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45G is 
amended by striking ‘‘January 1, 2014’’ and inserting 
‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2013.
SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING 
CREDIT. 
(a) IN GENERAL.—Subsection (e) of section 45N is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 118. EXTENSION OF EMPLOYER WAGE CREDIT FOR 
EMPLOYEES WHO ARE ACTIVE DUTY MEM-
BERS OF THE UNIFORMED SERVICES. 
(a) IN GENERAL.—Subsection (f) of section 45P is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments made after December 
31, 2013. 
SEC. 119. EXTENSION OF WORK OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 51(c) is 
amended by striking ‘‘for the employer’’ and all that fol-
lows and inserting ‘‘for the employer after December 31, 
2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to individuals who begin work for 
the employer after December 31, 2013.
SEC. 120. EXTENSION OF QUALIFIED ZONE ACADEMY 
BONDS. 
(a) EXTENSION.—Paragraph (1) of section 54E(c) is 
amended by striking ‘‘and 2013’’ and inserting ‘‘2013, 
and 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to obligations issued after Decem-
ber 31, 2013. 
SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN 
RACE HORSES AS 3-YEAR PROPERTY. 
(a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) 
is amended— 
(1) by striking ‘‘January 1, 2014’’ in subclause 
(I) and inserting ‘‘January 1, 2015’’, and 
(2) by striking ‘‘December 31, 2013’’ in sub-
clause (II) and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2013.
SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE-
COVERY FOR QUALIFIED LEASEHOLD IM-
PROVEMENTS, 
QUALIFIED 
RESTAURANT 
BUILDINGS 
AND 
IMPROVEMENTS, 
AND 
QUALIFIED RETAIL IMPROVEMENTS. 
(a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec-
tion 168(e)(3)(E) are each amended by striking ‘‘January 
1, 2014’’ and inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 
MOTORSPORTS 
ENTERTAINMENT 
COM-
PLEXES. 
(a) IN GENERAL.—Subparagraph (D) of section 
168(i)(15) is amended by striking ‘‘December 31, 2013’’ 
and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 124. EXTENSION OF ACCELERATED DEPRECIATION 
FOR BUSINESS PROPERTY ON AN INDIAN 
RESERVATION. 
(a) IN GENERAL.—Paragraph (8) of section 168(j) 
is amended by striking ‘‘December 31, 2013’’ and insert-
ing ‘‘December 31, 2014’’.
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 125. EXTENSION OF BONUS DEPRECIATION. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) 
is amended— 
(1) by striking ‘‘January 1, 2015’’ in subpara-
graph (A)(iv) and inserting ‘‘January 1, 2016’’, and 
(2) by striking ‘‘January 1, 2014’’ each place 
it appears and inserting ‘‘January 1, 2015’’. 
(b) SPECIAL RULE FOR FEDERAL LONG-TERM CON-
TRACTS.—Clause (ii) of section 460(c)(6)(B) is amended 
by striking ‘‘January 1, 2014 (January 1, 2015’’ and in-
serting ‘‘January 1, 2015 (January 1, 2016’’. 
(c) EXTENSION OF ELECTION TO ACCELERATE THE 
AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 
(1) IN
GENERAL.—Subclause (II) of section 
168(k)(4)(D)(iii) is amended by striking ‘‘January 
1, 2014’’ and inserting ‘‘January 1, 2015’’. 
(2) ROUND
EXTENSION
PROPERTY.—Para-
graph (4) of section 168(k) is amended by adding at 
the end the following new subparagraph: 
‘‘(K) SPECIAL RULES FOR ROUND 4 EX-
TENSION PROPERTY.—
‘‘(i) IN
GENERAL.—In the case of 
round 4 extension property, in applying 
this paragraph to any taxpayer— 
‘‘(I) the limitation described in 
subparagraph (B)(i) and the business 
credit increase amount under sub-
paragraph (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 4 exten-
sion property. 
‘‘(ii) ELECTION.— 
‘‘(I) A taxpayer who has an elec-
tion in effect under this paragraph for 
round 3 extension property shall be 
treated as having an election in effect 
for round 4 extension property unless 
the taxpayer elects to not have this 
paragraph apply to round 4 extension 
property.
‘‘(II) A taxpayer who does not 
have an election in effect under this 
paragraph for round 3 extension prop-
erty may elect to have this paragraph 
apply to round 4 extension property. 
‘‘(iii) ROUND
EXTENSION
PROP-
ERTY.—For purposes of this subpara-
graph, the term ‘round 4 extension prop-
erty’ means property which is eligible 
qualified property solely by reason of the 
extension of the application of the special 
allowance under paragraph (1) pursuant to 
the amendments made by section 125(a) of 
the Tax Increase Prevention Act of 2014 
(and the application of such extension to 
this paragraph pursuant to the amendment 
made by section 125(c) of such Act).’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (k) of section 
168 is amended by striking ‘‘JANUARY 1, 2014’’ and 
inserting ‘‘JANUARY 1, 2015’’. 
(2) The heading for clause (ii) of section 
168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY 
1, 2014’’ and inserting ‘‘PRE-JANUARY 1, 2015’’.
(3) Subparagraph (C) of section 168(n)(2) is 
amended by striking ‘‘January 1, 2014’’ and insert-
ing ‘‘January 1, 2015’’. 
(4) Subparagraph (D) of section 1400L(b)(2) is 
amended by striking ‘‘January 1, 2014’’ and insert-
ing ‘‘January 1, 2015’’. 
(5) Subparagraph (B) of section 1400N(d)(3) 
is amended by striking ‘‘January 1, 2014’’ and in-
serting ‘‘January 1, 2015’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2013, in taxable years ending after such 
date. 
SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUC-
TION FOR CONTRIBUTIONS OF FOOD INVEN-
TORY. 
(a) 
IN
GENERAL.—Clause 
(iv) 
of 
section 
170(e)(3)(C) is amended by striking ‘‘December 31, 
2013’’ and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made after De-
cember 31, 2013.
SEC. 127. EXTENSION OF INCREASED EXPENSING LIMITA-
TIONS AND TREATMENT OF CERTAIN REAL 
PROPERTY AS SECTION 179 PROPERTY. 
(a) IN GENERAL.— 
(1) DOLLAR LIMITATION.—Section 179(b)(1) is 
amended— 
(A) by striking ‘‘beginning in 2010, 2011, 
2012, or 2013’’ in subparagraph (B) and in-
serting ‘‘beginning after 2009 and before 
2015’’, and 
(B) by striking ‘‘2013’’ in subparagraph 
(C) and inserting ‘‘2014’’. 
(2) 
REDUCTION
IN
LIMITATION.—Section 
179(b)(2) is amended— 
(A) by striking ‘‘beginning in 2010, 2011, 
2012, or 2013’’ in subparagraph (B) and in-
serting ‘‘beginning after 2009 and before 
2015’’, and 
(B) by striking ‘‘2013’’ in subparagraph 
(C) and inserting ‘‘2014’’. 
(b) 
COMPUTER
SOFTWARE.—Section 
179(d)(1)(A)(ii) is amended by striking ‘‘2014’’ and in-
serting ‘‘2015’’. 
(c) ELECTION.—Section 179(c)(2) is amended by 
striking ‘‘2014’’ and inserting ‘‘2015’’.
(d) SPECIAL RULES FOR TREATMENT OF QUALIFIED 
REAL PROPERTY.— 
(1) IN GENERAL.—Section 179(f)(1) is amend-
ed by striking ‘‘beginning in 2010, 2011, 2012, or 
2013’’ and inserting ‘‘beginning after 2009 and be-
fore 2015’’. 
(2) CARRYOVER LIMITATION.— 
(A) IN
GENERAL.—Section 179(f)(4) is 
amended by striking ‘‘2013’’ each place it ap-
pears and inserting ‘‘2014’’. 
(B) 
CONFORMING
AMENDMENT.—The 
heading 
of 
subparagraph 
(C) 
of 
section 
179(f)(4) is amended by striking ‘‘2011
AND 
2012’’ and inserting ‘‘2011, 2012, AND 2013’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE 
SAFETY EQUIPMENT. 
(a) IN GENERAL.—Subsection (g) of section 179E is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013.
SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR 
CERTAIN FILM AND TELEVISION PRODUC-
TIONS. 
(a) IN GENERAL.—Subsection (f) of section 181 is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATES.—The amendment made by 
this section shall apply to productions commencing after 
December 31, 2013. 
SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH 
RESPECT TO INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES IN PUERTO 
RICO. 
(a) IN GENERAL.—Subparagraph (C) of section 
199(d)(8) is amended— 
(1) by striking ‘‘first 8 taxable years’’ and in-
serting ‘‘first 9 taxable years’’, and 
(2) by striking ‘‘January 1, 2014’’ and insert-
ing ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013.
SEC. 131. EXTENSION OF MODIFICATION OF TAX TREAT-
MENT OF CERTAIN PAYMENTS TO CONTROL-
LING EXEMPT ORGANIZATIONS. 
(a) 
IN
GENERAL.—Clause 
(iv) 
of 
section 
512(b)(13)(E) is amended by striking ‘‘December 31, 
2013’’ and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments received or accrued 
after December 31, 2013. 
SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVI-
DENDS OF REGULATED INVESTMENT COMPA-
NIES. 
(a) 
IN
GENERAL.—Paragraphs 
(1)(C)(v) 
and 
(2)(C)(v) of section 871(k) are each amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2014’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT EN-
TITY TREATMENT UNDER FIRPTA. 
(a) 
IN
GENERAL.—Clause 
(ii) 
of 
section 
897(h)(4)(A) is amended by striking ‘‘December 31, 
2013’’ and inserting ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendment made by 
this section shall take effect on January 1, 2014. 
Notwithstanding 
the 
preceding 
sentence, 
such 
amendment shall not apply with respect to the with-
holding requirement under section 1445 of the Inter-
nal Revenue Code of 1986 for any payment made 
before the date of the enactment of this Act. 
(2) AMOUNTS WITHHELD ON OR BEFORE DATE 
OF ENACTMENT.—In the case of a regulated invest-
ment company— 
(A) which makes a distribution after De-
cember 31, 2013, and before the date of the en-
actment of this Act, and 
(B) which would (but for the second sen-
tence of paragraph (1)) have been required to 
withhold with respect to such distribution under 
section 1445 of such Code, 
such investment company shall not be liable to any 
person to whom such distribution was made for any 
amount so withheld and paid over to the Secretary 
of the Treasury. 
SEC. 134. EXTENSION OF SUBPART F EXCEPTION FOR AC-
TIVE FINANCING INCOME. 
(a) EXEMPT INSURANCE INCOME.—Paragraph (10) 
of section 953(e) is amended—
(1) by striking ‘‘January 1, 2014’’ and insert-
ing ‘‘January 1, 2015’’, and 
(2) by striking ‘‘December 31, 2013’’ and in-
serting ‘‘December 31, 2014’’. 
(b) SPECIAL RULE FOR INCOME DERIVED IN THE 
ACTIVE CONDUCT OF BANKING, FINANCING, OR SIMILAR 
BUSINESSES.—Paragraph (9) of section 954(h) is amend-
ed by striking ‘‘January 1, 2014’’ and inserting ‘‘January 
1, 2015’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years of foreign corpora-
tions beginning after December 31, 2013, and to taxable 
years of United States shareholders with or within which 
any such taxable year of such foreign corporation ends. 
SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAY-
MENTS BETWEEN RELATED CONTROLLED 
FOREIGN CORPORATIONS UNDER FOREIGN 
PERSONAL HOLDING COMPANY RULES. 
(a) IN GENERAL.—Subparagraph (C) of section 
954(c)(6) is amended by striking ‘‘January 1, 2014’’ and 
inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years of foreign corpora-
tions beginning after December 31, 2013, and to taxable
years of United States shareholders with or within which 
such taxable years of foreign corporations end. 
SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 
PERCENT OF GAIN ON CERTAIN SMALL BUSI-
NESS STOCK. 
(a) IN GENERAL.—Paragraph (4) of section 1202(a) 
is amended— 
(1) by striking ‘‘January 1, 2014’’ and insert-
ing ‘‘January 1, 2015’’, and 
(2) by striking ‘‘AND 2013’’ in the heading and 
inserting ‘‘2013, AND 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after December 
31, 2013. 
SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF 
S CORPORATIONS MAKING CHARITABLE CON-
TRIBUTIONS OF PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 1367(a) 
is amended by striking ‘‘December 31, 2013’’ and insert-
ing ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2013.
SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION 
RECOGNITION PERIOD FOR BUILT-IN GAINS 
TAX. 
(a) IN GENERAL.—Subparagraph (C) of section 
1374(d)(7) is amended— 
(1) by striking ‘‘2012 or 2013’’ and inserting 
‘‘2012, 2013, or 2014’’, and 
(2) by striking ‘‘2012 AND 2013’’ in the heading 
and inserting ‘‘2012, 2013, AND 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCEN-
TIVES. 
(a) 
IN
GENERAL.—Clause 
(i) 
of 
section 
1391(d)(1)(A) is amended by striking ‘‘December 31, 
2013’’ and inserting ‘‘December 31, 2014’’. 
(b) TREATMENT OF CERTAIN TERMINATION DATES 
SPECIFIED IN NOMINATIONS.—In the case of a designa-
tion of an empowerment zone the nomination for which 
included a termination date which is contemporaneous 
with the date specified in subparagraph (A)(i) of section 
1391(d)(1) 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 des-
ignation if, after the date of the enactment of this section,
the entity which made such nomination amends the nomi-
nation to provide for a new termination date in such man-
ner as the Secretary of the Treasury (or the Secretary’s 
designee) may provide. 
(c) EFFECTIVE DATES.—The amendment made by 
this section shall apply to periods after December 31, 
2013. 
SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT 
ON COVER OVER OF RUM EXCISE TAXES TO 
PUERTO RICO AND THE VIRGIN ISLANDS. 
(a) IN GENERAL.—Paragraph (1) of section 7652(f) 
is amended by striking ‘‘January 1, 2014’’ and inserting 
‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distilled spirits brought into the 
United States after December 31, 2013. 
SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DE-
VELOPMENT CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 119 of 
division A of the Tax Relief and Health Care Act of 2006 
is amended— 
(1) by striking ‘‘January 1, 2014’’ each place 
it appears and inserting ‘‘January 1, 2015’’, 
(2) by striking ‘‘first 8 taxable years’’ in para-
graph (1) and inserting ‘‘first 9 taxable years’’, and
(3) by striking ‘‘first 2 taxable years’’ in para-
graph (2) and inserting ‘‘first 3 taxable years’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
Subtitle C—Energy Tax Extenders 
SEC. 151. EXTENSION OF CREDIT FOR NONBUSINESS EN-
ERGY PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 25C(g) 
is amended by striking ‘‘December 31, 2013’’ and insert-
ing ‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 152. EXTENSION OF SECOND GENERATION BIOFUEL 
PRODUCER CREDIT. 
(a) IN GENERAL.—Clause (i) of section 40(b)(6)(J) 
is amended by striking ‘‘January 1, 2014’’ and inserting 
‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to qualified second generation 
biofuel production after December 31, 2013.
SEC. 153. EXTENSION OF INCENTIVES FOR BIODIESEL AND 
RENEWABLE DIESEL. 
(a) CREDITS FOR BIODIESEL AND RENEWABLE DIE-
SEL USED AS FUEL.—Subsection (g) of section 40A is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to fuel sold or used after December 
31, 2013. 
SEC. 154. EXTENSION OF PRODUCTION CREDIT FOR INDIAN 
COAL FACILITIES PLACED IN SERVICE BE-
FORE 2009. 
(a) IN GENERAL.—Subparagraph (A) of section 
45(e)(10) is amended by striking ‘‘8-year period’’ each 
place it appears and inserting ‘‘9-year period’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to coal produced after December 
31, 2013. 
SEC. 155. EXTENSION OF CREDITS WITH RESPECT TO FA-
CILITIES PRODUCING ENERGY FROM CER-
TAIN RENEWABLE RESOURCES. 
(a) IN GENERAL.—The following provisions of sec-
tion 45(d) are each amended by striking ‘‘January 1, 
2014’’ each place it appears and inserting ‘‘January 1, 
2015’’: 
(1) Paragraph (1).
(2) Paragraph (2)(A). 
(3) Paragraph (3)(A). 
(4) Paragraph (4)(B). 
(5) Paragraph (6). 
(6) Paragraph (7). 
(7) Paragraph (9). 
(8) Paragraph (11)(B). 
(b) EXTENSION OF ELECTION TO TREAT QUALIFIED 
FACILITIES AS ENERGY PROPERTY.—Clause (ii) of sec-
tion 48(a)(5)(C) is amended by striking ‘‘January 1, 
2014’’ and inserting ‘‘January 1, 2015’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall take effect on January 1, 2014. 
SEC. 156. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
NEW HOMES. 
(a) IN GENERAL.—Subsection (g) of section 45L is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to homes acquired after December 
31, 2013.
SEC. 157. EXTENSION OF SPECIAL ALLOWANCE FOR SEC-
OND GENERATION BIOFUEL PLANT PROP-
ERTY. 
(a) IN GENERAL.—Subparagraph (D) of section 
168(l)(2) is amended by striking ‘‘January 1, 2014’’ and 
inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 158. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 
BUILDINGS DEDUCTION. 
(a) IN GENERAL.—Subsection (h) of section 179D is 
amended by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 159. EXTENSION OF SPECIAL RULE FOR SALES OR DIS-
POSITIONS TO IMPLEMENT FERC OR STATE 
ELECTRIC 
RESTRUCTURING 
POLICY 
FOR 
QUALIFIED ELECTRIC UTILITIES. 
(a) IN GENERAL.—Paragraph (3) of section 451(i) 
is amended by striking ‘‘January 1, 2014’’ and inserting 
‘‘January 1, 2015’’.
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to dispositions after December 31, 
2013. 
SEC. 160. EXTENSION OF EXCISE TAX CREDITS RELATING 
TO CERTAIN FUELS. 
(a) EXCISE TAX CREDITS AND OUTLAY PAYMENTS 
FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX-
TURES.— 
(1) Paragraph (6) of section 6426(c) is amend-
ed by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(2) Subparagraph (B) of section 6427(e)(6) is 
amended by striking ‘‘December 31, 2013’’ and in-
serting ‘‘December 31, 2014’’. 
(b) 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, 2013’’ and inserting ‘‘December 31, 2014’’. 
(2) OUTLAY
PAYMENTS
FOR
ALTERNATIVE 
FUELS.—Subparagraph (C) of section 6427(e)(6) is 
amended by striking ‘‘December 31, 2013’’ and in-
serting ‘‘December 31, 2014’’. 
(c) EXTENSION
OF ALTERNATIVE FUELS EXCISE 
TAX CREDITS RELATING TO LIQUEFIED HYDROGEN.—
(1) IN
GENERAL.—Sections 6426(d)(5) and 
6426(e)(3), as amended by subsection (b), are each 
amended by striking ‘‘(September 30, 2014 in the 
case of any sale or use involving liquefied hydro-
gen)’’. 
(2) OUTLAY
PAYMENTS
FOR
ALTERNATIVE 
FUELS.—Paragraph (6) of section 6427(e) is 
amended— 
(A) by striking ‘‘except as provided in sub-
paragraph (D), any’’ in subparagraph (C), as 
amended by this Act, and inserting ‘‘any’’, 
(B) by striking the comma at the end of 
subparagraph (C) and inserting ‘‘, and’’, and 
(C) by striking subparagraph (D) and re-
designating subparagraph (E) as subparagraph 
(D). 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuel sold or used after December 31, 
2013. 
(2) LIQUEFIED HYDROGEN.—The amendments 
made by subsection (c) shall apply to fuel sold or 
used after September 30, 2014.
by striking ‘‘December 31, 2014’’ and inserting ‘‘Decem-
ber 31, 2015’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to applications submitted under 
section 431(d)(1)(A) of the Internal Revenue Code of 
1986 and section 304(d)(1)(C) of the Employee Retire-
ment Income Security Act of 1974 after December 31, 
2014. 
SEC. 172. EXTENSION OF SHORTFALL FUNDING METHOD 
AND ENDANGERED AND CRITICAL RULES. 
(a) IN GENERAL.—Paragraphs (1) and (2) of section 
221(c) of the Pension Protection Act of 2006 are each 
amended by striking ‘‘December 31, 2014’’ and inserting 
‘‘December 31, 2015’’. 
(b) CONFORMING AMENDMENT.—Paragraph (2) of 
section 221(c) of the Pension Protection Act of 2006 is 
amended by striking ‘‘January 1, 2015’’ and inserting 
‘‘January 1, 2016’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2014.
TITLE II—TECHNICAL 
CORRECTIONS 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Tax Technical Correc-
tions Act of 2014’’. 
SEC. 202. AMENDMENTS RELATING TO AMERICAN TAX-
PAYER RELIEF ACT OF 2012. 
(a) AMENDMENT RELATING TO SECTION 101(b).— 
Subclause (I) of section 642(b)(2)(C)(i) is amended by 
striking ‘‘section 151(d)(3)(C)(iii)’’ and inserting ‘‘section 
68(b)(1)(C)’’. 
(b) AMENDMENT RELATING
TO SECTION 102.— 
Clause (ii) of section 911(f)(2)(B) is amended by striking 
‘‘described in section 1(h)(1)(B) shall be treated as a ref-
erence to such excess as determined’’ and inserting ‘‘de-
scribed in section 1(h)(1)(B), and the reference in section 
55(b)(3)(C)(ii) to the excess described in section 
1(h)(1)(C)(ii), shall each be treated as a reference to each 
such excess as determined’’. 
(c) AMENDMENTS RELATING TO SECTION 104.— 
(1) Clause (ii) of section 55(d)(4)(B) is amend-
ed by inserting ‘‘subparagraphs (A), (B), and (D) 
of’’ before ‘‘paragraph (1)’’.
(2) Subparagraph (C) of section 55(d)(4) is 
amended by striking ‘‘increase’’ and inserting ‘‘in-
creased amount’’. 
(d) AMENDMENTS RELATING TO SECTION 310.— 
Clause (iii) of section 6431(f)(3)(A) is amended— 
(1) by striking ‘‘2011’’ and inserting ‘‘years 
after 2010’’, and 
(2) by striking ‘‘of such allocation’’ and insert-
ing ‘‘of any such allocation’’. 
(e) AMENDMENT RELATING
TO SECTION 331.— 
Clause (iii) of section 168(k)(4)(J) is amended by striking 
‘‘any taxable year’’ and inserting ‘‘its first taxable year’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provision 
of the American Taxpayer Relief Act of 2012 to which 
they relate. 
SEC. 203. AMENDMENT RELATING TO MIDDLE CLASS TAX 
RELIEF AND JOB CREATION ACT OF 2012. 
(a) AMENDMENT RELATING TO SECTION 7001.— 
Paragraph (1) of section 7001 of the Middle Class Tax 
Relief and Job Creation Act of 2012 is amended by strik-
ing ‘‘201(b)’’ and inserting ‘‘202(b)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in section
7001 of the Middle Class Tax Relief and Job Creation 
Act of 2012. 
SEC. 204. AMENDMENT RELATING TO FAA MODERNIZATION 
AND REFORM ACT OF 2012. 
(a) AMENDMENT RELATING TO SECTION 1107.— 
Section 4281 is amended to read as follows: 
‘‘SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES. 
‘‘(a) IN GENERAL.—The taxes imposed by sections 
4261 and 4271 shall not apply to transportation by an 
aircraft having a maximum certificated takeoff weight of 
6,000 pounds or less, except when such aircraft is oper-
ated on an established line or when such aircraft is a jet 
aircraft. 
‘‘(b) MAXIMUM CERTIFICATED TAKEOFF WEIGHT.— 
For purposes of this section, the term ‘maximum certifi-
cated takeoff weight’ means the maximum such weight 
contained in the type certificate or airworthiness certifi-
cate. 
‘‘(c) SIGHTSEEING.—For purposes of this section, an 
aircraft shall not be considered as operated on an estab-
lished line at any time during which such aircraft is being 
operated on a flight the sole purpose of which is sight-
seeing.
‘‘(d) JET AIRCRAFT.—For purposes of this section, 
the term ‘jet aircraft’ shall not include any aircraft which 
is a rotorcraft or propeller aircraft.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in section 
1107 of the FAA Modernization and Reform Act of 2012. 
SEC. 205. AMENDMENTS RELATING TO REGULATED INVEST-
MENT COMPANY MODERNIZATION ACT OF 
2010. 
(a) AMENDMENTS RELATING TO SECTION 101.— 
(1) Subsection (c) of section 101 of the Regu-
lated Investment Company Modernization Act of 
2010 is amended— 
(A) by striking ‘‘paragraph (2)’’ in para-
graph (1) and inserting ‘‘paragraphs (2) and 
(3)’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) EXCISE TAX.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), for purposes of section 4982 
of the Internal Revenue Code of 1986, para-
graphs (1) and (2) shall apply by substituting 
‘the 1-year periods taken into account under 
subsection (b)(1)(B) of such section with re-
spect to calendar years beginning after Decem-
ber 31, 2010’ for ‘taxable years beginning after 
the date of the enactment of this Act’. 
‘‘(B) ELECTION.—A regulated investment 
company may elect to apply subparagraph (A) 
by substituting ‘2011’ for ‘2010’. Such election 
shall be made at such time and in such form 
and manner as the Secretary of the Treasury 
(or the Secretary’s delegate) shall prescribe.’’. 
(2) The first sentence of paragraph (2) of sec-
tion 852(c) is amended— 
(A) by striking ‘‘and without regard to’’ 
and inserting ‘‘, without regard to’’, and 
(B) by inserting ‘‘, and without regard to 
any capital loss arising on the first day of the 
taxable year by reason of clauses (ii) and (iii) 
of section 1212(a)(3)(A)’’ before the period at 
the end. 
(b) AMENDMENT RELATING
TO SECTION 304.— 
Paragraph (1) of section 855(a) is amended by inserting 
‘‘on or’’ before ‘‘before’’. 
(c) AMENDMENTS RELATING TO SECTION 308.— 
(1) Paragraph (8) of section 852(b) is amended 
by redesignating subparagraph (E) as subparagraph
(G) and by striking subparagraphs (C) and (D) and 
inserting the following new subparagraphs: 
‘‘(C) POST-OCTOBER CAPITAL LOSS.—For 
purposes of this paragraph, the term ‘post-Oc-
tober capital loss’ means— 
‘‘(i) any net capital loss attributable 
to the portion of the taxable year after Oc-
tober 31, or 
‘‘(ii) if there is no such loss— 
‘‘(I) any net long-term capital 
loss attributable to such portion of the 
taxable year, or 
‘‘(II) any net short-term capital 
loss attributable to such portion of the 
taxable year. 
‘‘(D) LATE-YEAR
ORDINARY
LOSS.—For 
purposes of this paragraph, the term ‘late-year 
ordinary loss’ means the sum of any post-Octo-
ber specified loss and any post-December ordi-
nary loss. 
‘‘(E) POST-OCTOBER
SPECIFIED
LOSS.— 
For purposes of this paragraph, the term ‘post- 
October specified loss’ means the excess (if any) 
of—
‘‘(i) the specified losses (as defined in 
section 4982(e)(5)(B)(ii)) attributable to 
the portion of the taxable year after Octo-
ber 31, over 
‘‘(ii) the specified gains (as defined in 
section 4982(e)(5)(B)(i)) attributable to 
such portion of the taxable year. 
‘‘(F) POST-DECEMBER ORDINARY LOSS.— 
For purposes of this paragraph, the term ‘post- 
December ordinary loss’ means the excess (if 
any) of— 
‘‘(i) the ordinary losses not described 
in subparagraph (E)(i) and attributable to 
the portion of the taxable year after De-
cember 31, over 
‘‘(ii) the ordinary income not de-
scribed in subparagraph (E)(ii) and attrib-
utable to such portion of the taxable 
year.’’. 
(2) Subparagraph (G) of section 852(b)(8), as 
so redesignated, is amended by striking ‘‘, (D)(i)(I), 
and (D)(ii)(I)’’ and inserting ‘‘and (E)’’. 
(3) The first sentence of paragraph (2) of sec-
tion 852(c), as amended by subsection (a), is amend-
ed—
(A) by striking ‘‘, and without regard to’’ 
and inserting ‘‘, without regard to’’, and 
(B) by inserting ‘‘, and with such other ad-
justments as the Secretary may prescribe’’ be-
fore the period at the end. 
(d) AMENDMENTS RELATING TO SECTION 402.— 
(1) Subparagraph (B) of section 4982(e)(6) is 
amended by inserting before the period at the end 
the following: ‘‘or which determines income by ref-
erence to the value of an item on the last day of the 
taxable year’’. 
(2) Subparagraph (A) of section 4982(e)(7) is 
amended by striking ‘‘such company’’ and all that 
follows through ‘‘any net ordinary loss’’ and insert-
ing ‘‘such company may elect to determine its ordi-
nary income and net ordinary loss (as defined in 
paragraph (2)(C)(ii)) for the calendar year without 
regard to any portion of any net ordinary loss’’. 
(e) CLERICAL AMENDMENT RELATING TO SECTION 
201.—Subparagraph (A) of section 851(d)(2) is amended 
by inserting ‘‘of this paragraph’’ after ‘‘subparagraph 
(B)(i)’’. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect as if included in the provision of the 
Regulated Investment Company Modernization Act 
of 2010 to which they relate. 
(2) SAVINGS
PROVISION.—In the case of an 
election by a regulated investment company under 
section 852(b)(8) of the Internal Revenue Code of 
1986 with respect to any taxable year beginning be-
fore the date of the enactment of this Act, such com-
pany may treat the amendments made by para-
graphs (1) and (2) of subsection (c) as not applying 
with respect to any such election. 
SEC. 206. AMENDMENTS RELATING TO TAX RELIEF, UNEM-
PLOYMENT INSURANCE REAUTHORIZATION, 
AND JOB CREATION ACT OF 2010. 
(a) AMENDMENT RELATING
TO SECTION 103.— 
Clause (ii) of section 32(b)(3)(B) is amended by striking 
‘‘in 2010’’ and inserting ‘‘after 2009’’. 
(b) CLERICAL AMENDMENTS RELATING TO SECTION 
302.— 
(1) Paragraph (1) of section 2801(a) is amend-
ed by striking ‘‘(or, if greater, the highest rate of 
tax specified in the table applicable under section 
2502(a) as in effect on the date)’’. 
(2) Subsection (f) of section 302 of the Tax Re-
lief, Unemployment Insurance Reauthorization, and
Job Creation Act of 2010 is amended by striking 
‘‘subsection’’ and inserting ‘‘section’’. 
(c) AMENDMENTS RELATING
TO SECTION 753.— 
Subparagraph (A) of section 1397B(b)(1) 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) the day after the date set forth 
in section 1391(d)(1)(A)(i) were sub-
stituted for ‘January 1, 2010’ each place it 
appears.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Tax Relief, Unemployment Insurance Reauthoriza-
tion, and Job Creation Act of 2010 to which they relate. 
SEC. 207. AMENDMENTS RELATING TO CREATING SMALL 
BUSINESS JOBS ACT OF 2010. 
(a) AMENDMENTS RELATING TO SECTION 2102.— 
(1) Subsection (h) of section 2102 of the Cre-
ating Small Business Jobs Act of 2010 is amended 
by inserting ‘‘, and payee statements required to be 
furnished,’’ after ‘‘information returns required to 
be filed’’. 
(2) Paragraphs (1) and (2) of subsection (b), 
and subsection (c)(1)(C), of section 6722 are each
amended by striking ‘‘the required filing date’’ and 
inserting ‘‘the date prescribed for furnishing such 
statement’’. 
(3) Subparagraph (B) of section 6722(c)(2) is 
amended by striking ‘‘filed’’ and inserting ‘‘fur-
nished’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provision 
of the Creating Small Business Jobs Act of 2010 to which 
they relate. 
SEC. 208. CLERICAL AMENDMENT RELATING TO HIRING IN-
CENTIVES TO RESTORE EMPLOYMENT ACT. 
(a) AMENDMENT RELATING
TO SECTION 512.— 
Paragraph (1) of section 512(a) of the Hiring Incentives 
to Restore Employment Act is amended by striking ‘‘after 
paragraph (6)’’ and inserting ‘‘after paragraph (5)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the provision 
of the Hiring Incentives to Restore Employment Act to 
which it relates. 
SEC. 209. AMENDMENTS RELATING TO AMERICAN RECOV-
ERY AND REINVESTMENT TAX ACT OF 2009. 
(a) AMENDMENT RELATING TO SECTION 1003.— 
Paragraph (4) of section 24(d) is amended to read as fol-
lows:
‘‘(4) SPECIAL RULE FOR CERTAIN YEARS.—In 
the case of any taxable year beginning after 2008 
and before 2018, paragraph (1)(B)(i) shall be ap-
plied by substituting ‘$3,000’ for ‘$10,000’.’’. 
(b) AMENDMENT RELATING TO SECTION 1004.— 
Paragraph (3) of section 25A(i) is amended by striking 
‘‘Subsection (f)(1)(A) shall be applied’’ and inserting ‘‘For 
purposes of determining the Hope Scholarship Credit, sub-
section (f)(1)(A) shall be applied’’. 
(c) AMENDMENTS RELATING TO SECTION 1008.— 
(1) Paragraph (6) of section 164(b) is amended 
by striking subparagraph (E) and by redesignating 
subparagraphs (F) and (G) as subparagraphs (E) 
and (F), respectively. 
(2) Subparagraphs (E) and (F) of section 
164(b)(6), as so redesignated, are each amended by 
striking ‘‘This paragraph’’ and inserting ‘‘Subsection 
(a)(6)’’. 
(d) AMENDMENT RELATING TO SECTION 1104.— 
Subparagraph (A) of section 48(d)(3) is amended by in-
serting ‘‘or alternative minimum taxable income’’ after 
‘‘includible in the gross income’’. 
(e) AMENDMENTS RELATING TO SECTION 1141.— 
(1) Subsection (f) of section 30D is amended—
(A) by inserting ‘‘(determined without re-
gard to subsection (c))’’ before the period at the 
end of paragraph (1), and 
(B) by inserting ‘‘(determined without re-
gard to subsection (c))’’ before the period at the 
end of paragraph (2). 
(2) Paragraph (3) of section 30D(f) is amended 
by adding at the end the following: ‘‘For purposes 
of subsection (c), property to which this paragraph 
applies shall be treated as of a character subject to 
an allowance for depreciation.’’. 
(f) AMENDMENTS RELATING TO SECTION 1142.— 
(1) Subsection (b) of section 38 is amended by 
striking ‘‘plus’’ at the end of paragraph (35), by re-
designating paragraph (36) as paragraph (37), and 
by inserting after paragraph (35) the following new 
paragraph: 
‘‘(36) the portion of the qualified plug-in elec-
tric vehicle credit to which section 30(c)(1) applies, 
plus’’. 
(2)(A) Subsection (e) of section 30 is amend-
ed— 
(i) by inserting ‘‘(determined without re-
gard to subsection (c))’’ before the period at the 
end of paragraph (1), and
(ii) by inserting ‘‘(determined without re-
gard to subsection (c))’’ before the period at the 
end of paragraph (2). 
(B) Paragraph (3) of section 30(e) is amended 
by adding at the end the following: ‘‘For purposes 
of subsection (c), property to which this paragraph 
applies shall be treated as of a character subject to 
an allowance for depreciation.’’. 
(g) AMENDMENT RELATING TO SECTION 1302.— 
Paragraph (3) of section 48C(b) is amended by inserting 
‘‘as the qualified investment’’ after ‘‘The amount which 
is treated’’. 
(h) AMENDMENTS RELATED TO SECTION 1541.— 
(1) Paragraph (2) of section 853A(a) is amend-
ed by inserting ‘‘(determined after the application of 
this section)’’ before the comma at the end. 
(2) Subsection (a) of section 853A is amend-
ed— 
(A) by striking ‘‘with respect to credits’’ 
and inserting ‘‘with respect to some or all of 
the credits’’, and 
(B) by inserting ‘‘(determined without re-
gard to this section and sections 54(c), 
54A(c)(1), 54AA(c)(1), and 1397E(c))’’ after 
‘‘credits allowable’’.
(3) Subsection (b) of section 853A is amended 
to read as follows: 
‘‘(b) EFFECT OF ELECTION.—If the election provided 
in subsection (a) is in effect with respect to any credits 
for any taxable year— 
‘‘(1) the regulated investment company— 
‘‘(A) shall not be allowed such credits, 
‘‘(B) shall include in gross income (as in-
terest) for such taxable year the amount which 
would have been so included with respect to 
such credits had the application of this section 
not been elected, 
‘‘(C) shall include in earnings and profits 
the amount so included in gross income, and 
‘‘(D) shall be treated as making one or 
more distributions of money with respect to its 
stock equal to the amount of such credits on 
the date or dates (on or after the applicable 
date for any such credit) during such taxable 
year (or following the close of the taxable year 
pursuant
to section 855)
selected by the 
company, and 
‘‘(2) each shareholder of such investment com-
pany shall—
‘‘(A) be treated as receiving such share-
holder’s proportionate share of any distribution 
of money which is treated as made by such in-
vestment company under paragraph (1)(D), and 
‘‘(B) be allowed credits against the tax im-
posed by this chapter equal to the amount of 
such distribution, subject to the provisions of 
this title applicable to the credit involved.’’. 
(4) Subsection (c) of section 853A is amended 
to read as follows: 
‘‘(c) NOTICE
TO
SHAREHOLDERS.—The amount 
treated as a distribution of money received by a share-
holder under subsection (b)(2)(A) (and as credits allowed 
to such shareholder under subsection (b)(2)(B)) shall not 
exceed the amount so reported by the regulated invest-
ment company in a written statement furnished to such 
shareholder.’’. 
(5) Clause (ii) of section 853A(e)(1)(A) is 
amended by inserting ‘‘other than a qualified bond 
described in section 54AA(g)’’ after ‘‘as defined in 
section 54AA(d))’’. 
(i) AMENDMENTS RELATING TO SECTION 2202.— 
(1) Subparagraph (A) of section 2202(b)(1) of 
division B of the American Recovery and Reinvest-
ment Act of 2009 is amended by inserting ‘‘political 
subdivision of a State,’’ after ‘‘any State,’’. 
(2) Section 2202 of division B of the American 
Recovery and Reinvestment Act of 2009 is amended 
by adding at the end the following new subsection: 
‘‘(e) TREATMENT OF POSSESSIONS.— 
‘‘(1) PAYMENTS
TO
MIRROR
CODE
POSSES-
SIONS.—The Secretary of the Treasury shall pay to 
each possession of the United States with a mirror 
code tax system amounts equal to the loss to that 
possession by reason of credits allowed under sub-
section (a) with respect to taxable years beginning in 
2009. Such amounts shall be determined by the Sec-
retary of the Treasury based on information pro-
vided by the government of the respective possession. 
‘‘(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes for any taxable year under this section to any 
person to whom a credit is allowed against taxes im-
posed by the possession by reason of the credit al-
lowed under subsection (a) for such taxable year. 
‘‘(3) DEFINITIONS AND SPECIAL RULES.— 
‘‘(A) 
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection, the
term ‘possession of the United States’ includes 
the Commonwealth of the Northern Mariana Is-
lands. 
‘‘(B) MIRROR
CODE
TAX
SYSTEM.—For 
purposes of this subsection, the term ‘mirror 
code tax system’ means, with respect to any 
possession of the United States, the income tax 
system of such possession if the income tax li-
ability of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
‘‘(C) TREATMENT
OF
PAYMENTS.—For 
purposes of section 1324(b)(2) of title 31, 
United States Code, the payments under this 
subsection shall be treated in the same manner 
as a refund due from the credit allowed under 
section 36A of the Internal Revenue Code of 
1986 (as added by this Act).’’. 
(j) CLERICAL AMENDMENTS.— 
(1) 
AMENDMENT
RELATING
TO
SECTION 
1131.—Paragraph (2) of section 45Q(d) is amended 
by striking ‘‘Administrator of the Environmental 
Protection Agency’’ and all that follows through 
‘‘shall establish’’ and inserting ‘‘Administrator of the
Environmental Protection Agency, the Secretary of 
Energy, and the Secretary of the Interior, shall es-
tablish’’. 
(2) 
AMENDMENT
RELATING
TO
SECTION 
1141.—Paragraph (37) of section 1016(a) is amend-
ed by striking ‘‘section 30D(e)(4)’’ and inserting 
‘‘section 30D(f)(1)’’. 
(3) 
AMENDMENT
RELATING
TO
SECTION 
3001.—Subparagraph (A) of section 3001(a)(14) of 
the American Recovery and Reinvestment Act of 
2009 is amended by striking ‘‘is amended by redes-
ignating paragraph (9) as paragraph (10)’’ and in-
serting ‘‘, as amended by this Act, is amended by re-
designating paragraphs (9) and (10) as paragraphs 
(10) and (11), respectively,’’. 
(k) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the American Recovery and Reinvestment Tax Act of 
2009 to which they relate. 
SEC. 210. AMENDMENTS RELATING TO ENERGY IMPROVE-
MENT AND EXTENSION ACT OF 2008. 
(a) AMENDMENT RELATING TO SECTION 108.—Sub-
paragraph (E) of section 45K(g)(2) is amended to read 
as follows:
‘‘(E) COORDINATION WITH SECTION 45.— 
No credit shall be allowed with respect to any 
coke or coke gas which is produced using steel 
industry fuel (as defined in section 45(c)(7)) as 
feedstock if a credit is allowed to any taxpayer 
under section 45 with respect to the production 
of such steel industry fuel.’’. 
(b) AMENDMENT RELATING
TO SECTION 113.— 
Paragraph (1) of section 113(b) of the Energy Improve-
ment and Extension Act of 2008 is amended by adding 
at the end the following new subparagraph: 
‘‘(F) TRUST
FUND.—The term ‘Trust 
Fund’ means the Black Lung Disability Trust 
Fund established under section 9501 of the In-
ternal Revenue Code of 1986.’’. 
(c) AMENDMENTS RELATING TO SECTION 306.— 
(1) Clause (ii) of section 168(i)(18)(A) is 
amended by striking ‘‘10 years’’ and inserting ‘‘16 
years’’. 
(2) Clause (ii) of section 168(i)(19)(A) is 
amended by striking ‘‘10 years’’ and inserting ‘‘16 
years’’. 
(d) AMENDMENT RELATING
TO SECTION 308.— 
Clause (i) of section 168(m)(2)(B) is amended by striking
‘‘section 168(k)’’ and inserting ‘‘subsection (k) (deter-
mined without regard to paragraph (4) thereof)’’. 
(e) AMENDMENT RELATING TO SECTION 402.—Sub-
paragraph (A) of section 907(f)(4) is amended by striking 
‘‘this subsection shall be applied’’ and all that follows 
through the period at the end and inserting the following: 
‘‘this subsection, as in effect on the day before the date 
of the enactment of the Energy Improvement and Exten-
sion Act of 2008, shall apply to unused oil and gas extrac-
tion taxes carried from such unused credit year to a tax-
able year beginning after December 31, 2008.’’. 
(f) AMENDMENTS RELATING TO SECTION 403.— 
(1) Subsection (c) of section 1012 is amend-
ed— 
(A) by striking ‘‘FUNDS’’ in the heading 
for paragraph (2) and inserting ‘‘REGULATED 
INVESTMENT COMPANIES’’, 
(B) by striking ‘‘FUND’’ in the heading for 
paragraph (2)(B), and 
(C) by striking ‘‘fund’’ each place it ap-
pears in paragraph (2) and inserting ‘‘regulated 
investment company’’. 
(2) Paragraph (1) of section 1012(d) is amend-
ed—
(A) by striking ‘‘December 31, 2010’’ and 
inserting ‘‘December 31, 2011’’, and 
(B) by striking ‘‘an open-end fund’’ and 
inserting ‘‘a regulated investment company’’. 
(3) Paragraph (3) of section 1012(d) is amend-
ed to read as follows: 
‘‘(3) SEPARATE
ACCOUNTS; 
ELECTION
FOR 
TREATMENT AS SINGLE ACCOUNT.— 
‘‘(A) IN GENERAL.—Rules similar to the 
rules of subsection (c)(2) shall apply for pur-
poses of this subsection. 
‘‘(B) AVERAGE BASIS METHOD.—Notwith-
standing paragraph (1), in the case of an elec-
tion under rules similar to the rules of sub-
section (c)(2)(B) with respect to stock held in 
connection with a dividend reinvestment plan, 
the average basis method is permissible with re-
spect to all such stock without regard to the 
date of the acquisition of such stock.’’. 
(4) Subsection (g) of section 6045 is amended 
by adding at the end the following new paragraph: 
‘‘(6) SPECIAL RULE FOR CERTAIN STOCK HELD 
IN
CONNECTION
WITH
DIVIDEND
REINVESTMENT 
PLAN.—For purposes of this subsection, stock ac-
quired before January 1, 2012, in connection with a
dividend reinvestment plan shall be treated as stock 
described in clause (ii) of paragraph (3)(C) (unless 
the broker with respect to such stock elects not to 
have this paragraph apply with respect to such 
stock).’’. 
(g) CLERICAL AMENDMENTS.— 
(1) AMENDMENT RELATING TO SECTION 108.— 
Paragraph (2) of section 45(b) is amended by strik-
ing ‘‘$3 amount’’ and inserting ‘‘$2 amount’’. 
(2) AMENDMENT RELATING TO SECTION 306.— 
(A) Paragraph (5) of section 168(b) is 
amended by striking ‘‘(2)(C)’’ and inserting 
‘‘(2)(D)’’. 
(B) 
The 
last 
sentence 
of 
section 
168(k)(4)(C)(i) 
is 
amended 
by 
striking 
‘‘(b)(2)(C)’’ and inserting ‘‘(b)(2)(D)’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Energy Improvement and Extension Act of 2008 
to which they relate. 
SEC. 211. AMENDMENTS RELATING TO TAX EXTENDERS 
AND ALTERNATIVE MINIMUM TAX RELIEF 
ACT OF 2008. 
(a) AMENDMENT RELATING TO SECTION 208.—Sub-
section (b) of section 208 of the Tax Extenders and Alter-
native Minimum Tax Relief Act of 2008 is amended to 
read as follows: 
‘‘(b) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—The amendment made by 
subsection (a) shall take effect on January 1, 2008. 
Notwithstanding 
the 
preceding 
sentence, 
such 
amendment shall not apply with respect to the with-
holding requirement under section 1445 of the Inter-
nal Revenue Code of 1986 for any payment made 
before October 4, 2008. 
‘‘(2) AMOUNTS
WITHHELD
ON
OR
BEFORE 
DATE OF ENACTMENT.—In the case of a regulated 
investment company— 
‘‘(A) which makes a distribution after De-
cember 31, 2007, and before October 4, 2008, 
and 
‘‘(B) which would (but for the second sen-
tence of paragraph (1)) have been required to 
withhold with respect to such distribution under 
section 1445 of such Code, 
such investment company shall not be liable to any 
person to whom such distribution was made for any 
amount so withheld and paid over to the Secretary 
of the Treasury.’’.
(b) AMENDMENTS RELATING TO SECTION 305.— 
Paragraphs (7)(B) and (8)(D) of section 168(e) are each 
amended by inserting ‘‘which is not qualified leasehold im-
provement property’’ after ‘‘Property described in this 
paragraph’’. 
(c) CLERICAL AMENDMENTS.— 
(1) AMENDMENTS
RELATING
TO
SECTION 
706.— 
(A) Paragraph (2) of section 1033(h) is 
amended 
by 
inserting 
‘‘is’’ 
before 
‘‘compulsorily’’. 
(B) 
Subclause 
(II) 
of 
section 
172(b)(1)(F)(ii) is amended by striking ‘‘sub-
section (h)(3)(C)(i)’’ and inserting ‘‘section 
165(h)(3)(C)(i)’’. 
(C) The heading for paragraph (1) of sec-
tion 165(h) is amended by striking ‘‘$100’’ and 
inserting ‘‘DOLLAR’’. 
(2) AMENDMENT RELATING TO SECTION 709.— 
Subsection (k) of section 143 is amended by redesig-
nating the second paragraph (12) (relating to special 
rules for residences destroyed in Federally declared 
disasters) as paragraph (13). 
(3) AMENDMENT RELATING TO SECTION 712.— 
Section 712 of the Tax Extenders and Alternative
Minimum Tax Relief Act of 2008 is amended by 
striking ‘‘section 702(c)(1)(A)’’ and inserting ‘‘sec-
tion 702(b)(1)(A)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Tax Extenders and Alternative Minimum Tax Relief 
Act of 2008 to which they relate. 
SEC. 212. CLERICAL AMENDMENTS RELATING TO HOUSING 
ASSISTANCE TAX ACT OF 2008. 
(a) AMENDMENT RELATING TO SECTION 3002.— 
Paragraph (1) of section 42(b) is amended by striking 
‘‘For purposes of this section, the term’’ and inserting the 
following: ‘‘For purposes of this section— 
‘‘(A) IN GENERAL.—The term’’. 
(b) AMENDMENT RELATING TO SECTION 3081.— 
Clause (iv) of section 168(k)(4)(E) is amended by striking 
‘‘adjusted minimum tax’’ and inserting ‘‘adjusted net min-
imum tax’’. 
(c) AMENDMENT RELATING TO SECTION 3092.— 
Subsection (b) of section 121 is amended by redesignating 
the second paragraph (4) (relating to exclusion of gain al-
located to nonqualified use) as paragraph (5). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions
of the Housing Assistance Tax Act of 2008 to which they 
relate. 
SEC. 213. AMENDMENTS AND PROVISION RELATING TO HE-
ROES EARNINGS ASSISTANCE AND RELIEF 
TAX ACT OF 2008. 
(a) AMENDMENT RELATING
TO SECTION 106.— 
Paragraph (2) of section 106(c) of the Heroes Earnings 
Assistance and Relief Tax Act of 2008 is amended by 
striking ‘‘substituting for’’ and inserting ‘‘substituting 
‘June 17, 2008’ for’’. 
(b) AMENDMENT RELATING
TO SECTION 114.— 
Paragraph (1) of section 125(h) is amended by inserting 
‘‘(and shall not fail to be treated as an accident or health 
plan)’’ before ‘‘merely’’. 
(c) CLERICAL AMENDMENTS.— 
(1) AMENDMENT RELATING TO SECTION 110.— 
Subparagraph (B) of section 121(d)(12) is amended 
by inserting ‘‘of paragraph (9)’’ after ‘‘and (D)’’. 
(2) AMENDMENT RELATING TO SECTION 301.— 
Paragraph (2) of section 877(e) is amended by strik-
ing ‘‘subparagraph (A) or (B) of’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Heroes Earnings Assistance and Relief Tax Act of 
2008 to which they relate.
SEC. 214. AMENDMENTS RELATING TO ECONOMIC STIM-
ULUS ACT OF 2008. 
(a) AMENDMENTS RELATING TO SECTION 101.— 
Paragraph (2) of section 6213(g) is amended— 
(1) by striking ‘‘32, or 6428’’ in subparagraph 
(L) and inserting ‘‘or 32’’, and 
(2) by striking ‘‘and’’ at the end of subpara-
graph (O), by striking the period at the end of sub-
paragraph (P) and inserting ‘‘, and’’, and by insert-
ing after subparagraph (P) the following new sub-
paragraph: 
‘‘(Q) an omission of a correct valid identi-
fication number required under section 6428(h) 
(relating to 2008 recovery rebates for individ-
uals) to be included on a return.’’. 
(b) CLERICAL AMENDMENT RELATING TO SECTION 
103.—Subclause (IV) of section 168(k)(2)(B)(i) is amend-
ed by striking ‘‘clauses also apply’’ and inserting ‘‘clause 
also applies’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Economic Stimulus Act of 2008 to which they re-
late.
SEC. 215. AMENDMENTS RELATING TO TAX TECHNICAL 
CORRECTIONS ACT OF 2007. 
(a) AMENDMENT RELATING
TO SECTION 4(c).— 
Paragraph (1) of section 911(f) is amended by adding at 
the end the following flush sentence: 
‘‘For purposes of this paragraph, the amount ex-
cluded under subsection (a) shall be reduced by the 
aggregate amount of any deductions or exclusions 
disallowed under subsection (d)(6) with respect to 
such excluded amount.’’. 
(b) CLERICAL AMENDMENT RELATING TO SECTION 
11(g).—Clause (iv) of section 56(g)(4)(C) is amended by 
striking ‘‘a cooperative described in section 927(a)(4)’’ 
and inserting ‘‘an organization to which part I of sub-
chapter T (relating to tax treatment of cooperatives) ap-
plies which is engaged in the marketing of agricultural or 
horticultural products’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Tax Technical Corrections Act of 2007 to which 
they relate. 
SEC. 216. AMENDMENT RELATING TO TAX RELIEF AND 
HEALTH CARE ACT OF 2006. 
(a) AMENDMENT RELATING TO SECTION 105.—Sub-
paragraph (B) of section 45A(b)(1) is amended by adding 
at the end the following: ‘‘If any portion of wages are
taken into account under subsection (e)(1)(A) of section 
51, the preceding sentence shall be applied by substituting 
‘2-year period’ for ‘1-year period’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the provision 
of the Tax Relief and Health Care Act of 2006 to which 
it relates. 
SEC. 217. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, 
FLEXIBLE, EFFICIENT TRANSPORTATION EQ-
UITY ACT OF 2005: A LEGACY FOR USERS. 
(a) AMENDMENT RELATING TO SECTION 11161.— 
Paragraph (1) of section 9503(b) is amended by inserting 
before the period at the end the following: ‘‘and taxes re-
ceived under section 4081 shall be determined without re-
gard to tax receipts attributable to the rate specified in 
section 4081(a)(2)(C)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the provision 
of the Safe, Accountable, Flexible, Efficient Transpor-
tation Equity Act of 2005: A Legacy for Users to which 
it relates. 
SEC. 218. AMENDMENTS RELATING TO ENERGY TAX INCEN-
TIVES ACT OF 2005. 
(a) AMENDMENT RELATING TO SECTION 1341.— 
Subparagraph (B) of section 30B(h)(5) is amended by in-
serting ‘‘(determined without regard to subsection (g))’’ 
before the period at the end. 
(b) AMENDMENT RELATING TO SECTION 1342.— 
Paragraph (1) of section 30C(e) is amended to read as 
follows: 
‘‘(1) REDUCTION IN BASIS.—For purposes of 
this subtitle, the basis of any property for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of such credit so allowed (de-
termined without regard to subsection (d)).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provision 
of the Energy Tax Incentives Act of 2005 to which it re-
lates. 
SEC. 219. AMENDMENTS RELATING TO AMERICAN JOBS 
CREATION ACT OF 2004. 
(a) AMENDMENT RELATING TO SECTION 101.—Sub-
section (d) of section 101 of the American Jobs Creation 
Act of 2004 is amended by adding at the end the following 
new paragraph: 
‘‘(3) COORDINATION WITH SECTION 199.—This 
subsection shall be applied without regard to any de-
duction allowable under section 199.’’. 
(b) AMENDMENTS RELATING TO SECTION 102.— 
Paragraph (3) of section 199(b) is amended—
(1) by inserting ‘‘of a short taxable year or’’ 
after ‘‘in cases’’, and 
(2) by striking ‘‘AND DISPOSITIONS’’ and insert-
ing ‘‘, DISPOSITIONS, AND SHORT TAXABLE YEARS’’. 
(c) CLERICAL AMENDMENT RELATING TO SECTION 
413.—Paragraph (7) of section 904(h) is amended by 
striking ‘‘as ordinary income under section 1246 or’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provision 
of the American Jobs Creation Act of 2004 to which they 
relate. 
SEC. 220. OTHER CLERICAL CORRECTIONS. 
(a) Paragraph (8) of section 30B(h) is amended by 
striking ‘‘vehicle)., except that’’ and inserting ‘‘vehicle), 
except that’’. 
(b) Subparagraph (A) of section 38(c)(2) is amended 
by striking ‘‘credit credit’’ and inserting ‘‘credit’’. 
(c) Section 46 is amended by adding a comma at the 
end of paragraph (4). 
(d) Subparagraph (E) of section 50(a)(2) is amended 
by inserting ‘‘, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 
48D(b)(4)’’ after ‘‘in section 48(b)’’. 
(e) Clause (i) of section 54A(d)(2)(A) is amended by 
striking ‘‘100 percent or more’’ and inserting ‘‘100 per-
cent’’.
(f) Paragraph (2) of section 125(b) is amended by 
striking ‘‘statutory nontaxable benefits’’ each place it ap-
pears and inserting ‘‘qualified benefits’’. 
(g) Paragraph (2) of section 125(h) is amended by 
striking ‘‘means, any’’ and inserting ‘‘means any’’. 
(h) Subparagraph (F) of section 163(h)(4) is amend-
ed by striking ‘‘Veterans Administration or the Rural 
Housing Administration’’ and inserting ‘‘Department of 
Veterans Affairs or the Rural Housing Service’’. 
(i) Subsection (a) of section 249 is amended by strik-
ing ‘‘1563(a)(1)’’ and inserting ‘‘1563(a)(1))’’. 
(j) Paragraphs (8) and (10) of section 280F(d) are 
each amended by striking ‘‘subsection (a)(2)’’ and insert-
ing ‘‘subsection (a)(1)’’. 
(k) Clause (iii) of section 402A(c)(4)(E) is amended 
by 
striking 
‘‘403(b)(7)(A)(i)’’ 
and 
inserting 
‘‘403(b)(7)(A)(ii)’’. 
(l) Section 527 is amended— 
(1) by striking ‘‘(2 U.S.C. 432(e))’’ in sub-
section (h)(2)(A)(i) and inserting ‘‘(52 U.S.C. 
30102(e))’’, and 
(2) by striking ‘‘(2 U.S.C. 431 et seq.)’’ in sub-
sections (i)(6) and (j)(5)(A) and inserting ‘‘(52 
U.S.C. 30101 et seq.)’’.
(m) Subsection (b) of section 858 is amended by 
striking ‘‘857(b)(8)’’ and inserting ‘‘857(b)(9)’’. 
(n) Subparagraph (A) of section 1012(c)(2) is 
amended by striking ‘‘section 1012’’ and inserting ‘‘this 
section’’. 
(o) The heading for section 1394(f) is amended by 
striking ‘‘DESIGNATED UNDER SECTION 1391(g)’’. 
(p) Paragraphs (1) and (2)(A) of section 1394(f) are 
each amended by striking ‘‘a new empowerment zone facil-
ity bond’’ and inserting ‘‘an empowerment zone facility 
bond’’. 
(q) Clause (i) of section 1400N(c)(3)(A) is amended 
by striking ‘‘section 42(d)(5)(C)(iii)’’ and inserting ‘‘sec-
tion 42(d)(5)(B)(iii)’’. 
(r) Subsections (e)(3)(B) and (f)(7)(B) of section 
4943 are each amended by striking ‘‘January 1, 1970’’ 
and inserting ‘‘January 1, 1971’’. 
(s) Paragraph (2) of section 4982(f) is amended by 
adding a comma at the end. 
(t) Paragraph (3) of section 6011(e) is amended by 
striking ‘‘shall require than’’ and inserting ‘‘shall require 
that’’. 
(u) Subsection (b) of section 6072 is amended by 
striking ‘‘6011(e)(2)’’ and inserting ‘‘6011(c)(2)’’.
(v) Subsection (d) of section 6104 is amended by re-
designating the second paragraph (6) (relating to disclo-
sure of reports by the Internal Revenue Service) and third 
paragraph (6) (relating to application to nonexempt chari-
table trusts and nonexempt private foundations) as para-
graphs (7) and (8), respectively. 
(w) Subsection (c) of section 6662A is amended by 
striking ‘‘section 6664(d)(2)(A)’’ and inserting ‘‘section 
6664(d)(3)(A)’’. 
(x) Subparagraph (FF) of section 6724(d)(2) is 
amended by striking ‘‘section 6050W(c)’’ and inserting 
‘‘section 6050W(f)’’. 
(y) Section 7122 is amended by redesignating the 
second subsection (f) (relating to frivolous submissions, 
etc.) as subsection (g). 
(z) Subsection (a) of section 9035 is amended by 
striking ‘‘section 320(b)(1)(A)’’ and inserting ‘‘section 
315(b)(1)(A)’’. 
(aa) Section 9802 is amended by redesignating the 
second subsection (f) (relating to genetic information of 
a fetus or embryo) as subsection (g). 
(bb) Paragraph (3) of section 13(e) of the Worker, 
Homeownership, and Business Assistance Act of 2009 is 
amended by striking ‘‘subsection (d)’’ and inserting ‘‘sub-
section (c)’’.
SEC. 221. DEADWOOD PROVISIONS. 
(a) IN GENERAL.— 
(1) ADJUSTMENTS IN TAX TABLES SO THAT IN-
FLATION WILL NOT RESULT IN TAX INCREASES.— 
Paragraph (7) of section 1(f) is amended to read as 
follows: 
‘‘(7) SPECIAL RULE FOR CERTAIN BRACKETS.— 
In prescribing tables under paragraph (1) which 
apply to taxable years beginning in a calendar year 
after 1994, the cost-of-living adjustment used in 
making adjustments to the dollar amounts at which 
the 36 percent rate bracket begins or at which the 
39.6 percent rate bracket begins shall be determined 
under paragraph (3) by substituting ‘1993’ for 
‘1992’.’’. 
(2) CERTAIN PLUG-IN ELECTRIC VEHICLES.— 
(A) Subpart B of part IV of subchapter A 
of chapter 1 is amended by striking section 30 
(and by striking the item relating to such sec-
tion in the table of sections for such subpart). 
(B) Subsection (b) of section 38, as 
amended by section 209(f)(1) of this Act, is 
amended by inserting ‘‘plus’’ at the end of 
paragraph (35), by striking paragraph (36), 
and by redesignating paragraph (37) as para-
graph (36).
(C) 
Subclause 
(VI) 
of 
section 
48C(c)(1)(A)(i) is amended by striking ‘‘, quali-
fied plug-in electric vehicles (as defined by sec-
tion 30(d)),’’. 
(D) Section 1016(a) is amended by strik-
ing paragraph (25). 
(E) Section 6501(m) is amended by strik-
ing ‘‘section 30(e)(6),’’. 
(3) EARNED INCOME CREDIT.— 
(A) Paragraph (1) of section 32(b) is 
amended— 
(i) by striking subparagraphs (B) and 
(C), and 
(ii) by striking ‘‘(A) IN GENERAL.— 
In the case of taxable years beginning 
after 1995:’’ in subparagraph (A) and 
moving the table 2 ems to the left. 
(B) Subparagraph (B) of section 32(b)(2) 
is amended by striking ‘‘increased by’’ and all 
that follows and inserting ‘‘increased by 
$3,000.’’. 
(4) FIRST-TIME HOMEBUYER CREDIT.—Section 
6213(g)(2), as amended by section 214(a)(2) of this 
Act, is amended by striking subparagraph (P). 
(5) MAKING WORK PAY CREDIT.—
(A) Subpart C of part IV of subchapter A 
of chapter 1 is amended by striking section 36A 
(and by striking the item relating to such sec-
tion in the table of sections for such subpart). 
(B) 
Subparagraph 
(A) 
of 
section 
6211(b)(4) is amended by striking ‘‘, 36A’’. 
(C) Section 6213(g)(2) is amended by 
striking subparagraph (N). 
(6) GENERAL BUSINESS CREDITS.—Subsection 
(d) of section 38 is amended by striking paragraph 
(3). 
(7) LOW-INCOME HOUSING CREDIT.—Subclause 
(I) of section 42(h)(3)(C)(ii) is amended by striking 
‘‘($1.50 for 2001)’’. 
(8) MINIMUM TAX CREDIT.— 
(A)(i) Section 53 is amended by striking 
subsections (e) and (f). 
(ii) The amendment made by clause (i) 
striking subsection (f) of section 53 of the In-
ternal Revenue Code of 1986 shall not be con-
strued to allow any tax abated by reason of sec-
tion 53(f)(1) of such Code (as in effect before 
such amendment) to be included in the amount 
determined under section 53(b)(1) of such 
Code.
(B) Paragraph (4) of section 6211(b)(4) is 
amended by striking ‘‘, 53(e)’’. 
(9) ADJUSTMENTS BASED ON ADJUSTED CUR-
RENT EARNINGS.—Clause (ii) of section 56(g)(4)(F) 
is amended by striking ‘‘In the case of any taxable 
year beginning after December 31, 1992, clause’’ 
and inserting ‘‘Clause’’. 
(10) ITEMS
OF
TAX
PREFERENCE; DEPLE-
TION.—Paragraph (1) of section 57(a) is amended 
by striking ‘‘Effective with respect to taxable years 
beginning after December 31, 1992, this’’ and in-
serting ‘‘This’’. 
(11) INTANGIBLE DRILLING COSTS.— 
(A) Clause (i) of section 57(a)(2)(E) is 
amended by striking ‘‘In the case of any taxable 
year beginning after December 31, 1992, this’’ 
and inserting ‘‘This’’. 
(B) Clause (ii) of section 57(a)(2)(E) is 
amended by striking ‘‘(30 percent in case of 
taxable years beginning in 1993)’’. 
(12) ENVIRONMENTAL TAX.— 
(A) Subchapter A of chapter 1 is amended 
by striking part VII (and by striking the item 
relating to such part in the table of parts for 
such subchapter).
(B) Paragraph (2) of section 26(b) is 
amended by striking subparagraph (B). 
(C) Section 30A(c) is amended by striking 
paragraph (1) and by redesignating paragraphs 
(2), (3), and (4) as paragraphs (1), (2), and 
(3), respectively. 
(D) Subsection (a) of section 164 is 
amended by striking paragraph (5). 
(E) Section 275(a) is amended by striking 
the last sentence. 
(F) Section 882(a)(1) is amended by strik-
ing ‘‘, 59A’’. 
(G) Section 936(a)(3) is amended by strik-
ing subparagraph (A) and by redesignating sub-
paragraphs (B), (C), and (D) as subparagraphs 
(A), (B), and (C), respectively. 
(H) Section 1561(a) is amended— 
(i) by inserting ‘‘and’’ at the end of 
paragraph (2), by striking ‘‘, and’’ at the 
end of paragraph (3) and inserting a pe-
riod, and by striking paragraph (4), and 
(ii) by striking ‘‘, the amount speci-
fied in paragraph (3), and the amount 
specified in paragraph (4)’’ and inserting
‘‘and the amount specified in paragraph 
(3)’’. 
(I) Section 4611(e) is amended— 
(i) by striking ‘‘section 59A, this sec-
tion,’’ in paragraph (2)(B) and inserting 
‘‘this section’’, and 
(ii) in paragraph (3)(A)— 
(I) by striking ‘‘section 59A,’’, 
and 
(II) by striking the comma after 
‘‘rate)’’. 
(J) Section 6425(c)(1)(A) is amended by 
inserting ‘‘plus’’ at end of clause (i), by striking 
‘‘plus’’ and inserting ‘‘over’’ at the end of 
clause (ii), and by striking clause (iii). 
(K) Section 6655 is amended— 
(i) in subsections (e)(2)(A)(i) and 
(e)(2)(B)(i), by striking ‘‘taxable income, 
alternative minimum taxable income, and 
modified alternative minimum taxable in-
come’’ and inserting ‘‘taxable income and 
alternative minimum taxable income’’, 
(ii) in subsection (e)(2)(B), by strik-
ing clause (iii), and
(iii) in subsection (g)(1)(A), by insert-
ing ‘‘plus’’ at the end of clause (ii), by 
striking clause (iii), and by redesignating 
clause (iv) as clause (iii). 
(L) Section 9507(b)(1) is amended by 
striking ‘‘59A,’’. 
(13) STANDARD DEDUCTION.— 
(A) So much of paragraph (1) of section 
63(c) as follows ‘‘the sum of—’’ is amended to 
read as follows: 
‘‘(A) the basic standard deduction, and 
‘‘(B) the additional standard deduction.’’. 
(B) Subsection (c) of section 63 is amend-
ed by striking paragraphs (7), (8), and (9). 
(14) ANNUITIES; CERTAIN PROCEEDS OF EN-
DOWMENT AND LIFE INSURANCE CONTRACTS.—Sec-
tion 72 is amended— 
(A) in subsection (c)(4), by striking ‘‘; ex-
cept that if such date was before January 1, 
1954, then the annuity starting date is January 
1, 1954’’, and 
(B) in subsection (g)(3), by striking ‘‘Jan-
uary 1, 1954, or’’ and ‘‘, whichever is later’’. 
(15) UNEMPLOYMENT
COMPENSATION.—Sec-
tion 85 is amended by striking subsection (c).
(16) ACCIDENT AND HEALTH PLANS.—Section 
105(f) is amended by striking ‘‘or (d)’’. 
(17) FLEXIBLE SPENDING ARRANGEMENTS.— 
Section 106(c)(1) is amended by striking ‘‘Effective 
on and after January 1, 1997, gross’’ and inserting 
‘‘Gross’’. 
(18) CERTAIN
COMBAT
ZONE
COMPENSATION 
OF MEMBERS OF THE ARMED FORCES.—Subsection 
(c) of section 112 is amended— 
(A) by striking ‘‘(after June 24, 1950)’’ in 
paragraph (2), and 
(B) by striking ‘‘such zone;’’ and all that 
follows in paragraph (3) and inserting ‘‘such 
zone.’’. 
(19) LEGAL SERVICE PLANS.— 
(A) Part III of subchapter B of chapter 1 
is amended by striking section 120 (and by 
striking the item relating to such section in the 
table of sections for such subpart). 
(B)(i) Section 414(n)(3)(C) is amended by 
striking ‘‘120,’’. 
(ii) Section 414(t)(2) is amended by strik-
ing ‘‘120,’’. 
(iii) Section 501(c) is amended by striking 
paragraph (20).
(iv) Section 3121(a) is amended by strik-
ing paragraph (17). 
(v) Section 3231(e) is amended by striking 
paragraph (7). 
(vi) Section 3306(b) is amended by strik-
ing paragraph (12). 
(vii) Section 6039D(d)(1) is amended by 
striking ‘‘120,’’. 
(viii) Section 209(a)(14) of the Social Se-
curity Act is amended— 
(I) by striking subparagraph (B), and 
(II) by striking ‘‘(14)(A)’’ and insert-
ing ‘‘(14)’’. 
(20) 
PRINCIPAL
RESIDENCE.—Section 
121(b)(3) is amended— 
(A) by striking subparagraph (B), and 
(B) in subparagraph (A), by striking ‘‘(A) 
IN GENERAL.—’’ and moving the text 2 ems to 
the left. 
(21) CERTAIN REDUCED UNIFORMED SERVICES 
RETIREMENT
PAY.—Section 122(b)(1) is amended 
by striking ‘‘after December 31, 1965,’’. 
(22) 
GREAT
PLAINS
CONSERVATION
PRO-
GRAM.—Section 126(a) is amended by striking para-
graph (6) and by redesignating paragraphs (7), (8),
(9), and (10) as paragraphs (6), (7), (8), and (9), 
respectively. 
(23) TREBLE DAMAGE PAYMENTS UNDER THE 
ANTITRUST
LAW.—Section 162(g) is amended by 
striking the last sentence. 
(24) STATE LEGISLATORS’ TRAVEL EXPENSES 
AWAY
FROM
HOME.—Paragraph (4) of section 
162(h) is amended by striking ‘‘For taxable years 
beginning after December 31, 1980, this’’ and in-
serting ‘‘This’’. 
(25) INTEREST.— 
(A) Section 163 is amended— 
(i) by striking paragraph (6) of sub-
section (d), and 
(ii) by striking paragraph (5) of sub-
section (h). 
(B) Section 56(b)(1)(C) is amended by 
striking clause (ii) and by redesignating clauses 
(iii), (iv), and (v) as clauses (ii), (iii), and (iv), 
respectively. 
(26) QUALIFIED MOTOR VEHICLE TAXES.—Sec-
tion 164, as amended by section 209(c) of this Act, 
is amended by striking subsections (a)(6) and (b)(6). 
(27) DISASTER LOSSES.—
(A) Subsection (h) of section 165 is 
amended by striking paragraph (3) and by re-
designating paragraphs (4) and (5) as para-
graphs (3) and (4), respectively. 
(B) Paragraph (3) of section 165(h), as so 
redesignated, is amended by striking ‘‘para-
graphs (2) and (3)’’ and inserting ‘‘paragraph 
(2)’’. 
(C) Subsection (i) of section 165 is amend-
ed— 
(i) in paragraph (1)— 
(I) by striking ‘‘(as defined by 
clause (ii) of subsection (h)(3)(C))’’, 
and 
(II) by striking ‘‘(as defined by 
clause (i) of such subsection)’’, 
(ii) by striking ‘‘(as defined by sub-
section (h)(3)(C)(i)’’ in paragraph (4), and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(5) FEDERALLY DECLARED DISASTERS.—For 
purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘Federally 
declared disaster’ means any disaster subse-
quently determined by the President of the
United States to warrant assistance by the Fed-
eral Government under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act. 
‘‘(B) DISASTER AREA.—The term ‘disaster 
area’ means the area so determined to warrant 
such assistance.’’. 
(D) Section 1033(h)(3) is amended by 
striking ‘‘section 165(h)(3)(C)’’ and inserting 
‘‘section 165(i)(5)’’. 
(28) CHARITABLE, ETC., CONTRIBUTIONS AND 
GIFTS.—Section 170 is amended— 
(A) by striking paragraph (3) of subsection 
(b), 
(B) by striking paragraph (6) of sub-
section (e), and 
(C) by striking subsection (k). 
(29) AMORTIZABLE BOND PREMIUM.— 
(A) Subparagraph (B) of section 171(b)(1) 
is amended to read as follows: 
‘‘(B)(i) with reference to the amount pay-
able on maturity (or if it results in a smaller 
amortizable bond premium attributable to the 
period before the call date, with reference to the 
amount payable on the earlier call date), in the
case of a bond described in subsection (a)(1), 
and 
‘‘(ii) with reference to the amount payable 
on maturity or on an earlier call date, in the 
case of a bond described in subsection (a)(2).’’. 
(B) Paragraphs (2) and (3)(B) of section 
171(b) are each amended by striking ‘‘para-
graph (1)(B)(ii)’’ and inserting ‘‘paragraph 
(1)(B)(i)’’. 
(30) NET
OPERATING
LOSS
CARRYBACKS, 
CARRYOVERS, AND CARRYFORWARDS.— 
(A) Section 172, as amended by section 
211(c)(1)(B) of this Act, is amended— 
(i) by striking subparagraphs (D), 
(H), (I), and (J) of subsection (b)(1) and 
by redesignating subparagraphs (E), (F), 
and (G) as subparagraphs (D), (E), and 
(F), respectively, and 
(ii) by striking subsections (g) and (j) 
and by redesignating subsections (h), (i), 
and (k) as subsections (g), (h), and (i), re-
spectively. 
(B) Each of the following provisions of sec-
tion 172 (as amended by section 211(c)(1)(B)
of this Act and as redesignated by subpara-
graph (A)) are amended as follows: 
(i) By striking ‘‘ending after August 
2, 1989’’ in subsection (b)(1)(D)(i)(II). 
(ii) By striking ‘‘subsection (h)’’ in 
subsection 
(b)(1)(D)(ii) 
and 
inserting 
‘‘subsection (g)’’. 
(iii) 
By 
striking 
‘‘section 
165(h)(3)(C)(i)’’ 
in 
subsection 
(b)(1)(E)(ii)(II) and inserting ‘‘section 
165(i)(5)’’. 
(iv) By striking ‘‘subsection (i)’’ and 
all that follows in the last sentence of sub-
section (b)(1)(E)(ii) and inserting ‘‘sub-
section (h)).’’. 
(v) By striking ‘‘subsection (i)’’ in 
subsection (b)(1)(F) and inserting ‘‘sub-
section (h)’’. 
(vi) By striking subparagraph (F) of 
paragraph (2) of subsection (g). 
(vii) 
By 
striking 
‘‘subsection 
(b)(1)(E)’’ each place it appears in sub-
section (g)(4) and inserting ‘‘subsection 
(b)(1)(D)’’.
(viii) By striking the last sentence of 
subsection (h)(1). 
(ix) 
By 
striking 
‘‘subsection 
(b)(1)(G)’’ each place it appears in sub-
section (h)(3) and inserting ‘‘subsection 
(b)(1)(F)’’. 
(C) Subsection (d) of section 56 is amend-
ed by striking paragraph (3). 
(D) Paragraph (5) of section 382(l) is 
amended by striking subparagraph (F) and by 
redesignating subparagraphs (G) and (H) as 
subparagraphs (F) and (G), respectively. 
(31) RESEARCH AND EXPERIMENTAL EXPENDI-
TURES.—Subparagraph (A) of section 174(a)(2) is 
amended to read as follows: 
‘‘(A) WITHOUT
CONSENT.—A taxpayer 
may, without the consent of the Secretary, 
adopt the method provided in this subsection 
for his first taxable year for which expenditures 
described in paragraph (1) are paid or in-
curred.’’. 
(32) AMORTIZATION
OF
CERTAIN
RESEARCH 
AND
EXPERIMENTAL
EXPENDITURES.—Paragraph 
(2) of section 174(b) is amended by striking ‘‘begin-
ning after December 31, 1953’’.
(33) SOIL AND WATER CONSERVATION EXPEND-
ITURES.—Paragraph (1) of section 175(d) is amend-
ed to read as follows: 
‘‘(1) WITHOUT
CONSENT.—A taxpayer may, 
without the consent of the Secretary, adopt the 
method provided in this section for the taxpayer’s 
first taxable year for which expenditures described in 
subsection (a) are paid or incurred.’’. 
(34) CLEAN-FUEL VEHICLES.— 
(A) Part VI of subchapter A of chapter 1 
is amended by striking section 179A (and by 
striking the item relating to such section in the 
table of sections for such part). 
(B) Section 30C(e) is amended by adding 
at the end the following: 
‘‘(7) REFERENCE.—For purposes of this sec-
tion, any reference to section 179A shall be treated 
as a reference to such section as in effect imme-
diately before its repeal.’’. 
(C) Section 62(a) is amended by striking 
paragraph (14). 
(D) Section 263(a)(1) is amended by strik-
ing subparagraph (H). 
(E) Section 280F(a)(1) is amended by 
striking subparagraph (C).
(F) Section 312(k)(3) is amended by strik-
ing ‘‘179A,’’ each place it appears. 
(G) Section 1016(a) is amended by strik-
ing paragraph (24). 
(H) Section 1245(a) is amended by strik-
ing ‘‘179A,’’ each place it appears in para-
graphs (2)(C) and (3)(C). 
(35) QUALIFIED
DISASTER
EXPENSES.—Part 
VI of subchapter A of chapter 1 is amended by 
striking section 198A (and by striking the item re-
lating to such section in the table of sections for 
such part). 
(36) ACTIVITIES NOT ENGAGED IN FOR PROF-
IT.—Section 183(e)(1) is amended by striking the 
last sentence. 
(37) DOMESTIC PRODUCTION ACTIVITIES.— 
(A) Subsection (a) of section 199 is 
amended— 
(i) by striking paragraph (2), 
(ii) by redesignating subparagraphs 
(A) and (B) of paragraph (1) as para-
graphs (1) and (2), respectively, and by 
moving paragraphs (1) and (2) (as so re-
designated) 2 ems to the left, and
(iii) by striking ‘‘ALLOWANCE OF DE-
DUCTION.—’’ and all that follows through 
‘‘There shall be allowed’’ and inserting the 
following: 
‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be 
allowed’’. 
(B) Paragraphs (2) and (6)(B) of section 
199(d) 
are 
each 
amended 
by 
striking 
‘‘(a)(1)(B)’’ and inserting ‘‘(a)(2)’’. 
(38) RETIREMENT SAVINGS.— 
(A) Subparagraph (A) of section 219(b)(5) 
is amended to read as follows: 
‘‘(A) 
IN
GENERAL.—The 
deductible 
amount is $5,000.’’. 
(B) Clause (ii) of section 219(b)(5)(B) is 
amended to read as follows: 
‘‘(ii) APPLICABLE AMOUNT.—For pur-
poses of clause (i), the applicable amount 
is $1,000.’’. 
(C) Paragraph (5) of section 219(b) is 
amended by striking subparagraph (C) and by 
redesignating subparagraph (D) as subpara-
graph (C).
(D) Clause (ii) of section 219(g)(2)(A) is 
amended by striking ‘‘for a taxable year begin-
ning after December 31, 2006’’. 
(E) Section 219(g)(3)(B) is amended by 
striking clauses (i) and (ii) and inserting the 
following: 
‘‘(i) In the case of a taxpayer filing a 
joint return, $80,000. 
‘‘(ii) In the case of any other taxpayer 
(other than a married individual filing a 
separate return), $50,000.’’. 
(F) Paragraph (8) of section 219(g) is 
amended by striking ‘‘the dollar amount in the 
last row of the table contained in paragraph 
(3)(B)(i), the dollar amount in the last row of 
the table contained in paragraph (3)(B)(ii), and 
the dollar amount contained in paragraph 
(7)(A),’’ and inserting ‘‘each of the dollar 
amounts in paragraphs (3)(B)(i), (3)(B)(ii), 
and (7)(A)’’. 
(39) REPORTS
REGARDING
QUALIFIED
VOL-
UNTARY RETIREMENT CONTRIBUTIONS.— 
(A) Section 219 is amended by striking 
paragraph (4) of subsection (f) and subsection 
(h).
(B) Section 6652 is amended by striking 
subsection (g). 
(40) INTEREST ON EDUCATION LOANS.—Para-
graph (1) of section 221(b) is amended by striking 
‘‘shall not exceed’’ and all that follows and inserting 
‘‘shall not exceed $2,500.’’. 
(41) DIVIDENDS RECEIVED ON CERTAIN PRE-
FERRED STOCK; AND DIVIDENDS PAID ON CERTAIN 
PREFERRED STOCK OF PUBLIC UTILITIES.— 
(A) Sections 244 and 247 are hereby re-
pealed, and the table of sections for part VIII 
of subchapter B of chapter 1 is amended by 
striking the items relating to sections 244 and 
247. 
(B) Paragraph (5) of section 172(d) is 
amended to read as follows: 
‘‘(5) COMPUTATION OF DEDUCTION FOR DIVI-
DENDS RECEIVED.—The deductions allowed by sec-
tion 243 (relating to dividends received by corpora-
tions) and 245 (relating to dividends received from 
certain foreign corporations) shall be computed with-
out regard to section 246(b) (relating to limitation 
on aggregate amount of deductions).’’. 
(C) Paragraph (1) of section 243(c) is 
amended to read as follows:
‘‘(1) IN GENERAL.—In the case of any dividend 
received from a 20-percent owned corporation, sub-
section (a)(1) shall be applied by substituting ‘80 
percent’ for ‘70 percent’.’’. 
(D) Section 243(d) is amended by striking 
paragraph (4). 
(E) Section 246 is amended— 
(i) by striking ‘‘, 244,’’ in subsection 
(a)(1), 
(ii) in subsection (b)(1)— 
(I) 
by 
striking 
‘‘sections 
243(a)(1), 244(a),’’ and inserting 
‘‘section 243(a)(1)’’, 
(II) by striking ‘‘244(a),’’ the 
second place it appears, and 
(III) by striking ‘‘subsection (a) 
or (b) of section 245, and 247,’’ and 
inserting ‘‘and subsection (a) or (b) of 
section 245,’’, and 
(iii) by striking ‘‘, 244,’’ in subsection 
(c)(1). 
(F) Section 246A is amended by striking 
‘‘, 244,’’ both places it appears in subsections 
(a) and (e).
(G) Sections 263(g)(2)(B)(iii), 277(a), 
301(e)(2), 469(e)(4), 512(a)(3)(A), subpara-
graphs (A), (C), and (D) of section 805(a)(4), 
805(b)(5), 
812(e)(2)(A), 
815(c)(2)(A)(iii), 
832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B) are 
each amended by striking ‘‘, 244,’’ each place 
it appears. 
(H) Section 1244(c)(2)(C) is amended by 
striking ‘‘244,’’. 
(I) Section 805(a)(4)(B) is amended by 
striking ‘‘, 244(a),’’ each place it appears. 
(J) Section 810(c)(2)(B) is amended by 
striking ‘‘244 (relating to dividends on certain 
preferred stock of public utilities),’’. 
(K) The amendments made by this para-
graph shall not apply to preferred stock issued 
before October 1, 1942 (determined in the same 
manner as under section 247 of the Internal 
Revenue Code of 1986 as in effect before its re-
peal by such amendments). 
(42) 
ORGANIZATION
EXPENSES.—Section 
248(c) is amended by striking ‘‘beginning after De-
cember 31, 1953,’’ and by striking the last sentence. 
(43) BOND
REPURCHASE
PREMIUM.—Section 
249(b)(1) is amended by striking ‘‘, in the case of
bonds or other evidences of indebtedness issued after 
February 28, 1913,’’. 
(44) AMOUNT
OF
GAIN
WHERE
LOSS
PRE-
VIOUSLY DISALLOWED.—Section 267(d) is amended 
by striking ‘‘(or by reason of section 24(b) of the In-
ternal Revenue Code of 1939)’’ in paragraph (1), by 
striking ‘‘after December 31, 1953,’’ in paragraph 
(2), by striking the second sentence, and by striking 
‘‘or by reason of section 118 of the Internal Revenue 
Code of 1939’’ in the last sentence. 
(45) ACQUISITIONS MADE TO EVADE OR AVOID 
INCOME TAX.—Paragraphs (1) and (2) of section 
269(a) are each amended by striking ‘‘or acquired 
on or after October 8, 1940,’’. 
(46) MEALS
AND
ENTERTAINMENT.—Para-
graph (3) of section 274(n) is amended— 
(A) by striking ‘‘(A) IN GENERAL.—’’, 
(B) by striking ‘‘substituting ‘the applica-
ble percentage’ for’’ and inserting ‘‘substituting 
‘80 percent’ for’’, and 
(C) by striking subparagraph (B). 
(47) INTEREST ON INDEBTEDNESS INCURRED 
BY CORPORATIONS TO ACQUIRE STOCK OR ASSETS 
OF ANOTHER CORPORATION.— 
(A) Section 279 is amended—
(i) by striking ‘‘after December 31, 
1967,’’ in subsection (a)(2), 
(ii) by striking ‘‘after October 9, 
1969,’’ in subsection (b), 
(iii) by striking ‘‘after October 9, 
1969, and’’ in subsection (d)(5), and 
(iv) by striking subsection (i) and re-
designating subsection (j) as subsection (i). 
(B) The amendments made by this para-
graph shall not— 
(i) apply to obligations issued on or 
before October 9, 1969 (determined in the 
same manner as under section 279 of the 
Internal Revenue Code of 1986 as in effect 
before such amendments), and 
(ii) be construed to require interest on 
obligations issued on or before December 
31, 1967, to be taken into account under 
section 279(a)(2) of such Code (as in ef-
fect after such amendments). 
(48) BANK HOLDING COMPANIES.— 
(A) Clause (iii) of section 304(b)(3)(D) is 
repealed.
(B) The heading of subparagraph (D) of 
section 304(b)(3) is amended by striking ‘‘AND 
SPECIAL RULE’’. 
(49) EFFECT
ON
EARNINGS
AND
PROFITS.— 
Subsection (d) of section 312 is amended by striking 
paragraph (2) and redesignating paragraph (3) as 
paragraph (2). 
(50) DISQUALIFIED STOCK.—Paragraph (3) of 
section 355(d) is amended by striking ‘‘after Octo-
ber 9, 1990, and’’ each place it appears. 
(51) BASIS TO CORPORATIONS.—Section 362 is 
amended by striking ‘‘on or after June 22, 1954’’ in 
subsection (a) and by striking ‘‘, on or after June 
22, 1954,’’ each place it appears in subsection (c). 
(52) TEMPORARY
WAIVER
OF
MINIMUM
RE-
QUIRED
DISTRIBUTION.—Section 
401(a)(9) 
is 
amended by striking subparagraph (H). 
(53) INDIVIDUAL
RETIREMENT
ACCOUNTS.— 
Clause (i) of section 408(p)(2)(E) is amended to 
read as follows: 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph 
(A)(ii), 
the 
applicable 
amount is $10,000.’’.
(54) TAX CREDIT EMPLOYEE STOCK OWNER-
SHIP PLANS.—Section 409 is amended by striking 
subsection (q). 
(55) CATCH-UP
CONTRIBUTIONS.—Clauses (i) 
and (ii) of section 414(v)(2)(B) are amended to read 
as follows: 
‘‘(i) In the case of an applicable em-
ployer plan other than a plan described in 
section 401(k)(11) or 408(p), the applica-
ble dollar amount is $5,000. 
‘‘(ii) In the case of an applicable em-
ployer plan described in section 401(k)(11) 
or 408(p), the applicable dollar amount is 
$2,500.’’. 
(56) EMPLOYEE
STOCK
PURCHASE
PLANS.— 
Section 423(a) is amended by striking ‘‘after De-
cember 31, 1963,’’. 
(57) PENSION RELATED TRANSITION RULES.— 
(A) Section 402(g)(1)(B) is amended by 
striking ‘‘shall be’’ and all that follows and in-
serting ‘‘is $15,000.’’. 
(B)(i) 
Subparagraph 
(D) 
of 
section 
417(e)(3) is amended— 
(I) by striking clauses (ii) and (iii),
(II) by striking ‘‘if—’’ and all that 
follows through ‘‘section 430(h)(2)(D)’’ 
and inserting ‘‘if section 430(h)(2)(D)’’, 
and 
(III) by striking ‘‘described in such 
section,’’ and inserting ‘‘described in such 
section.’’. 
(ii) Clause (iii) of section 205(g)(3)(B) of 
the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1055(g)(3)(B)) is amend-
ed— 
(I) by striking subclauses (II) and 
(III), 
(II) by striking ‘‘if—’’ and all that 
follows through ‘‘section 303(h)(2)(D)’’ 
and inserting ‘‘if section 303(h)(2)(D)’’, 
and 
(III) by striking ‘‘described in such 
section,’’ and inserting ‘‘described in such 
section.’’. 
(C)(i) Paragraph (5) of section 430(c) is 
amended by striking subparagraph (B) and by 
striking ‘‘(A) IN GENERAL.—’’. 
(ii) Paragraph (5) of section 303(c) of the 
Employee Retirement Income Security Act of
1974 (29 U.S.C. 1083(c)) is amended by strik-
ing subparagraph (B) and by striking ‘‘(A) IN 
GENERAL.—’’. 
(D)(i) Paragraph (2) of section 430(h) is 
amended by striking subparagraph (G). 
(ii) Paragraph (2) of section 303(h) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1083(h)) is amended by strik-
ing subparagraph (G). 
(E)(i) Paragraph (3) of section 436(j), as 
added by section 113(a)(1)(B) of the Pension 
Protection Act of 2006, is amended by striking 
subparagraphs (B) and (C) and by striking 
‘‘(A) IN GENERAL.—’’. 
(ii) Subparagraph (C) of section 206(g)(9) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1056(g)(9)) is amended 
by striking clauses (ii) and (iii) and by striking 
‘‘(i) IN GENERAL.—’’. 
(F)(i) Section 436(j) is amended by strik-
ing the paragraph (3) added by section 
203(a)(2) of the Preservation of Access to Care 
for Medicare Beneficiaries and Pension Relief 
Act of 2010.
100 
(ii) Section 206(g)(9) of the Employee Re-
tirement Income Security Act of 1974 (29 
U.S.C. 1056(g)(9)) is amended by striking sub-
paragraph (D). 
(G)(i) Section 436 is amended by striking 
subsection (m). 
(ii) Section 206(g) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1056(g)) is amended by striking paragraph 
(11). 
(H) Section 457(e)(15)(A) is amended by 
striking ‘‘shall be’’ and all that follows and in-
serting ‘‘is $15,000.’’. 
(58) LIMITATION
ON
DEDUCTIONS
FOR
CER-
TAIN FARMING.— 
(A) Section 464 is amended by striking 
‘‘any farming syndicate (as defined in sub-
section (c))’’ both places it appears in sub-
sections (a) and (b) and inserting ‘‘any tax-
payer to whom subsection (d) applies’’. 
(B)(i) Subsection (c) of section 464 is 
hereby moved to the end of section 461 and re-
designated as subsection (j). 
(ii) Such subsection (j) is amended—
101 
(I) by striking ‘‘For purposes of this 
section’’ in paragraph (1) and inserting 
‘‘For purposes of subsection (i)(4)’’, and 
(II) by adding at the end the fol-
lowing new paragraphs: 
‘‘(3) FARMING.—For purposes of this sub-
section, the term ‘farming’ has the meaning given to 
such term by section 464(e). 
‘‘(4) LIMITED ENTREPRENEUR.—For purposes 
of this subsection, the term ‘limited entrepreneur’ 
means a person who— 
‘‘(A) has an interest in an enterprise other 
than as a limited partner, and 
‘‘(B) does not actively participate in the 
management of such enterprise.’’. 
(iii) Paragraph (4) of section 461(i) is 
amended by striking ‘‘section 464(c)’’ and 
inserting ‘‘subsection (j)’’. 
(C) Section 464 is amended— 
(i) by striking subsections (e) and (g) 
and redesignating subsections (d) and (f) 
as subsections (c) and (d), respectively, 
and 
(ii) by adding at the end the following 
new subsection:
102 
‘‘(e) FARMING.—For purposes of this section, the 
term ‘farming’ means the cultivation of land or the raising 
or harvesting of any agricultural or horticultural com-
modity including the raising, shearing, feeding, caring for, 
training, and management of animals. For purposes of the 
preceding sentence, trees (other than trees bearing fruit 
or nuts) shall not be treated as an agricultural or horti-
cultural commodity.’’. 
(D) Subsection (d) of section 464 of such 
Code (as redesignated by subparagraph (C)) is 
amended— 
(i) by striking paragraph (1) and re-
designating paragraphs (2), (3), and (4) as 
paragraphs (1), (2), and (3), respectively, 
and 
(ii) by striking ‘‘SUBSECTIONS (A) 
AND (B) TO APPLY TO’’ in the heading. 
(E) Subparagraph (A) of section 58(a)(2) 
is amended by striking ‘‘section 464(c)’’ and in-
serting ‘‘section 461(j)’’. 
(59) DEDUCTIONS
LIMITED
TO
AMOUNT
AT 
RISK.—Subparagraph (A) of section 465(c)(3) is 
amended by striking ‘‘In the case of taxable years 
beginning after December 31, 1978, this’’ and in-
serting ‘‘This’’.
103 
(60) PASSIVE ACTIVITY LOSSES AND CREDITS 
LIMITED.— 
(A) Section 469 is amended by striking 
subsection (m). 
(B) Subsection (b) of section 58 is amend-
ed by adding ‘‘and’’ at the end of paragraph 
(1), by striking paragraph (2), and by redesig-
nating paragraph (3) as paragraph (2). 
(61) ADJUSTMENTS REQUIRED BY CHANGES IN 
METHOD
OF
ACCOUNTING.—Section 481(b)(3) is 
amended by striking subparagraph (C). 
(62) EXEMPTION FROM TAX ON CORPORATIONS, 
CERTAIN TRUSTS, ETC.—Section 501 is amended by 
striking subsection (s). 
(63) REQUIREMENTS FOR EXEMPTION.— 
(A) Section 503(a)(1) is amended to read 
as follows: 
‘‘(1) GENERAL
RULE.—An organization de-
scribed in paragraph (17) or (18) of section 501(c), 
or described in section 401(a) and referred to in sec-
tion 4975(g) (2) or (3), shall not be exempt from 
taxation under section 501(a) if it has engaged in a 
prohibited transaction.’’. 
(B) Paragraph (2) of section 503(a) is 
amended by striking ‘‘described in section
104 
501(c)(17) or (18) or paragraph (a)(1)(B)’’ and 
inserting ‘‘described in paragraph (1)’’. 
(C) Subsection (c) of section 503 is 
amended by striking ‘‘described in section 
501(c)(17) or (18) or subsection (a)(1)(B)’’ and 
inserting ‘‘described in subsection (a)(1)’’. 
(64) ACCUMULATED TAXABLE INCOME.—Para-
graph (1) of section 535(b) and paragraph (1) of 
section 545(b) are each amended by striking ‘‘sec-
tion 531’’ and all that follows and inserting ‘‘section 
531 or the personal holding company tax imposed by 
section 541.’’. 
(65) DEFINITION
OF
PROPERTY.—Subsection 
(b) of section 614 is amended— 
(A) by striking paragraphs (3)(C) and (5), 
and 
(B) in paragraph (4), by striking ‘‘which-
ever of the following years is later: The first 
taxable year beginning after December 31, 
1963, or’’. 
(66) AMOUNTS RECEIVED BY SURVIVING ANNU-
ITANT UNDER JOINT AND SURVIVOR ANNUITY CON-
TRACT.—Subparagraph (A) of section 691(d)(1) is 
amended by striking ‘‘after December 31, 1953, 
and’’.
105 
(67) INCOME TAXES OF MEMBERS OF ARMED 
FORCES ON DEATH.—Section 692(a)(1) is amended 
by striking ‘‘after June 24, 1950’’. 
(68) SPECIAL
RULES
FOR
COMPUTING
RE-
SERVES.—Paragraph (7) of section 807(e) is amend-
ed by striking subparagraph (B) and redesignating 
subparagraph (C) as subparagraph (B). 
(69) INSURANCE COMPANY TAXABLE INCOME.— 
(A) Section 832(e) is amended by striking 
‘‘of taxable years beginning after December 31, 
1966,’’. 
(B) Section 832(e)(6) is amended by strik-
ing ‘‘In the case of any taxable year beginning 
after December 31, 1970, the’’ and inserting 
‘‘The’’. 
(70) CAPITALIZATION OF CERTAIN POLICY AC-
QUISITION EXPENSES.—Section 848 is amended by 
striking subsection (j). 
(71) TAX
ON
NONRESIDENT
ALIEN
INDIVID-
UALS.—Subparagraph (B) of section 871(a)(1) is 
amended to read as follows: 
‘‘(B) gains described in subsection (b) or 
(c) of section 631,’’.
106 
(72) LIMITATION ON CREDIT.—Paragraph (2) 
of section 904(d) is amended by striking subpara-
graph (J). 
(73) FOREIGN EARNED INCOME.—Clause (i) of 
section 911(b)(2)(D) is amended to read as follows: 
‘‘(i) IN
GENERAL.—The exclusion 
amount for any calendar year is $80,000.’’. 
(74) BASIS OF PROPERTY ACQUIRED FROM DE-
CEDENT.— 
(A) Section 1014(a)(2) is amended to read 
as follows: 
‘‘(2) in the case of an election under section 
2032, its value at the applicable valuation date pre-
scribed by such section,’’. 
(B) Section 1014(b) is amended by strik-
ing paragraphs (7) and (8). 
(75) ADJUSTED
BASIS.—Section 1016(a) is 
amended by striking paragraph (12). 
(76) PROPERTY ON WHICH LESSEE HAS MADE 
IMPROVEMENTS.—Section 1019 is amended by strik-
ing the last sentence. 
(77) 
INVOLUNTARY
CONVERSION.—Section 
1033 is amended by striking subsection (j) and by 
redesignating subsections (k) and (l) as subsections 
(j) and (k), respectively.
107 
(78) PROPERTY
ACQUIRED
DURING
AFFILI-
ATION.—Section 1051 is hereby repealed, and the 
table of sections for part IV of subchapter O of 
chapter 1 is amended by striking the item relating 
to section 1051. 
(79) CAPITAL
GAINS
AND
LOSSES.—Section 
1222 is amended by striking the last sentence. 
(80) HOLDING PERIOD OF PROPERTY.— 
(A) Paragraph (1) of section 1223 is 
amended by striking ‘‘after March 1, 1954,’’. 
(B) Paragraph (4) of section 1223 is 
amended by striking ‘‘ ‘(or under so much of 
section 1052(c) as refers to section 113(a)(23) 
of the Internal Revenue Code of 1939)’ ’’. 
(C) Paragraphs (6) and (8) of section 
1223 are repealed. 
(81) PROPERTY USED IN THE TRADE OR BUSI-
NESS AND INVOLUNTARY CONVERSIONS.—Subpara-
graph (A) of section 1231(c)(2) is amended by strik-
ing ‘‘beginning after December 31, 1981’’. 
(82) SALE OR EXCHANGE OF PATENTS.—Sec-
tion 1235 is amended— 
(A) by striking subsection (c) and by re-
designating subsections (d) and (e) as sub-
sections (c) and (d), respectively, and
108 
(B) by striking ‘‘subsection (d)’’ in sub-
section (b)(2)(B) and inserting ‘‘subsection 
(c)’’. 
(83) DEALERS IN SECURITIES.—Subsection (b) 
of section 1236 is amended by striking ‘‘after No-
vember 19, 1951,’’. 
(84) SALE OF PATENTS.—Subsection (a) of sec-
tion 1249 is amended by striking ‘‘after December 
31, 1962,’’. 
(85) GAIN FROM DISPOSITION OF FARMLAND.— 
Paragraph (1) of section 1252(a) is amended— 
(A) by striking ‘‘after December 31, 1969’’ 
the first place it appears, and 
(B) by striking ‘‘after December 31, 
1969,’’ in subparagraph (A). 
(86) TREATMENT OF AMOUNTS RECEIVED ON 
RETIREMENT OR SALE OR EXCHANGE OF DEBT IN-
STRUMENTS.—Subsection (c) of section 1271 is 
amended to read as follows: 
‘‘(c) SPECIAL RULE
FOR CERTAIN OBLIGATIONS 
WITH RESPECT TO WHICH ORIGINAL ISSUE DISCOUNT 
NOT CURRENTLY INCLUDIBLE.— 
‘‘(1) IN GENERAL.—On the sale or exchange of 
debt instruments issued by a government or political 
subdivision thereof after December 31, 1954, and
109 
before July 2, 1982, or by a corporation after De-
cember 31, 1954, and on or before May 27, 1969, 
any gain realized which does not exceed— 
‘‘(A) an amount equal to the original issue 
discount, or 
‘‘(B) if at the time of original issue there 
was no intention to call the debt instrument be-
fore maturity, an amount which bears the same 
ratio to the original issue discount as the num-
ber of complete months that the debt instru-
ment was held by the taxpayer bears to the 
number of complete months from the date of 
original issue to the date of maturity, shall be 
considered as ordinary income. 
‘‘(2) SUBSECTION (a)(2)(A) NOT TO APPLY.— 
Subsection (a)(2)(A) shall not apply to any debt in-
strument referred to in paragraph (1) of this sub-
section. 
‘‘(3) CROSS
REFERENCE.—For current inclu-
sion of original issue discount, see section 1272.’’. 
(87) AMOUNT
AND
METHOD
OF
ADJUST-
MENT.—Section 1314 is amended by striking sub-
section (d) and by redesignating subsection (e) as 
subsection (d).
110 
(88) ELECTION; REVOCATION; TERMINATION.— 
Clause (iii) of section 1362(d)(3)(A) is amended by 
striking ‘‘unless’’ and all that follows and inserting 
‘‘unless the corporation was an S corporation for 
such taxable year.’’. 
(89) OLD-AGE, SURVIVORS, AND DISABILITY IN-
SURANCE.—Subsection (a) of section 1401 is amend-
ed by striking ‘‘the following percent’’ and all that 
follows and inserting ‘‘12.4 percent of the amount of 
the self-employment income for such taxable year.’’. 
(90) HOSPITAL INSURANCE.—Paragraph (1) of 
section 1401(b) is amended by striking: ‘‘the fol-
lowing percent’’ and all that follows and inserting 
‘‘2.9 percent of the amount of the self-employment 
income for such taxable year.’’. 
(91) MINISTERS, MEMBERS OF RELIGIOUS OR-
DERS, AND CHRISTIAN SCIENCE PRACTITIONERS.— 
Paragraph (3) of section 1402(e) is amended— 
(A) by striking ‘‘whichever of the following 
dates is later: (A)’’, and 
(B) by striking ‘‘;or (B)’ ’’ and all that fol-
lows and inserting a period. 
(92) WITHHOLDING OF TAX ON NONRESIDENT 
ALIENS.—The first sentence of subsection (b) of sec-
tion 1441 and the first sentence of paragraph (5) of
111 
section 1441(c) are each amended by striking ‘‘gains 
subject to tax’’ and all that follows through ‘‘Octo-
ber 4, 1966’’ and inserting ‘‘and gains subject to tax 
under section 871(a)(1)(D)’’. 
(93) AFFILIATED GROUP DEFINED.—Subpara-
graph (A) of section 1504(a)(3) is amended by strik-
ing ‘‘for a taxable year which includes any period 
after December 31, 1984’’ in clause (i) and by strik-
ing ‘‘in a taxable year beginning after December 31, 
1984’’ in clause (ii). 
(94) DISALLOWANCE
OF
THE
BENEFITS
OF 
THE GRADUATED CORPORATE RATES AND ACCUMU-
LATED EARNINGS CREDIT.— 
(A) Subsection (a) of section 1551 is 
amended— 
(i) by striking paragraph (1) and by 
redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively, and 
(ii) by striking ‘‘after June 12, 1963,’’ 
each place it appears. 
(B) Section 1551(b) is amended— 
(i) by striking ‘‘or (2)’’ in paragraph 
(1), and 
(ii) by striking ‘‘(a)(3)’’ in paragraph 
(2) and inserting ‘‘(a)(2)’’.
112 
(95) CREDIT FOR STATE DEATH TAXES.— 
(A)(i) Part II of subchapter A of chapter 
11 is amended by striking section 2011 (and by 
striking the item relating to such section in the 
table of sections for such subpart). 
(ii) Section 2106(a)(4) is amended by 
striking 
‘‘section 
2011(a)’’ 
and 
inserting 
‘‘2058(a)’’. 
(B)(i) Subchapter A of chapter 13 is 
amended by striking section 2604 (and by strik-
ing the item relating to such section in the 
table of sections for such subpart). 
(ii) Clause (ii) of section 164(b)(4)(A) is 
amended by inserting ‘‘(as in effect before its 
repeal)’’ after ‘‘section 2604’’. 
(iii) Section 2654(a)(1) is amended by 
striking ‘‘(computed without regard to section 
2604)’’. 
(96) GROSS ESTATE.—Subsection (c) of section 
2031 is amended by striking paragraph (3) and by 
amending paragraph (1)(B) to read as follows: 
‘‘(II) $500,000.’’. 
(97)(A) Part IV of subchapter A of chapter 11 
is amended by striking section 2057 (and by striking
113 
the item relating to such section in the table of sec-
tions for such subpart). 
(B) Paragraph (10) of section 2031(c) is 
amended by inserting ‘‘(as in effect before its re-
peal)’’ immediately before the period at the end 
thereof. 
(98) 
PROPERTY
WITHIN
THE
UNITED 
STATES.—Subsection (c) of section 2104 is amended 
by striking ‘‘With respect to estates of decedents 
dying after December 31, 1969, deposits’’ and in-
serting ‘‘Deposits’’. 
(99) FICA TAXES.— 
(A) Subsection (a) of section 3101 is 
amended by striking ‘‘the following percent-
ages’’ and all that follows and inserting ‘‘6.2 
percent of the wages (as defined in section 
3121(a)) received by the individual with respect 
to employment (as defined in section 3121(b))’’. 
(B)(i) Subsection (a) of section 3111 is 
amended by striking ‘‘the following percent-
ages’’ and all that follows and inserting ‘‘6.2 
percent of the wages (as defined in section 
3121(a)) paid by the employer with respect to 
employment (as defined in section 3121(b)).’’.
114 
(ii) Subsection (b) of section 3111 is 
amended by striking ‘‘the following percent-
ages’’ and all that follows and inserting ‘‘1.45 
percent of the wages (as defined in section 
3121(a)) paid by the employer with respect to 
employment (as defined in section 3121(b)).’’. 
(C)(i) Section 3121(b) is amended by 
striking paragraph (17). 
(ii) Section 210(a) of the Social Security 
Act is amended by striking paragraph (17). 
(100) RAILROAD RETIREMENT.— 
(A) Subsection (b) of section 3201 is 
amended to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employee a tax 
equal to the percentage determined under section 3241 for 
any calendar year of the compensation received during 
such calendar year by such employee for services rendered 
by such employee.’’. 
(B) Subsection (b) of section 3211 is 
amended to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employee rep-
resentative a tax equal to the percentage determined under 
section 3241 for any calendar year of the compensation
115 
received during such calendar year by such employee rep-
resentative for services rendered by such employee rep-
resentative.’’. 
(C) Subsection (b) of section 3221 is 
amended to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on every employer an excise tax, with 
respect to having individuals in his employ, equal to the 
percentage determined under section 3241 for any cal-
endar year of the compensation paid during such calendar 
year by such employer for services rendered to such em-
ployer.’’. 
(D) Subsection (b) of section 3231 is 
amended— 
(i) by striking ‘‘compensation; except’’ 
and all that follows in the first sentence 
and inserting ‘‘compensation.’’, and 
(ii) by striking the second sentence. 
(101) CREDITS AGAINST FEDERAL UNEMPLOY-
MENT TAX.— 
(A) Paragraph (4) of section 3302(f) is 
amended— 
(i) by striking ‘‘subsection—’’ and all 
that follows through ‘‘(A) IN GENERAL.— 
The’’ and inserting ‘‘subsection, the’’,
116 
(ii) by striking subparagraph (B), 
(iii) by redesignating clauses (i) and 
(ii) as subparagraphs (A) and (B), respec-
tively, and 
(iv) by moving the text of such sub-
paragraphs (as so redesignated) 2 ems to 
the left. 
(B) Paragraph (5) of section 3302(f) is 
amended by striking subparagraph (D) and by 
redesignating subparagraph (E) as subpara-
graph (D). 
(102) 
DOMESTIC
SERVICE
EMPLOYMENT 
TAXES.—Section 3510(b) is amended by striking 
paragraph (4). 
(103) LUXURY PASSENGER AUTOMOBILES.— 
(A) Chapter 31 is amended by striking 
subchapter A (and by striking the item relating 
to such subchapter in the table of subchapters 
for such chapter). 
(B)(i) Section 4221 is amended— 
(I) in subsections (a) and (d)(1), by 
striking ‘‘subchapter A or’’ and inserting 
‘‘subchapter’’, 
(II) in subsection (a), by striking ‘‘In 
the case of taxes imposed by subchapter A
117 
of chapter 31, paragraphs (1), (3), (4), 
and (5) shall not apply.’’, and 
(III) in subsection (c), by striking 
‘‘4001(c), 4001(d), or’’. 
(ii) Section 4222 is amended by striking 
‘‘4001(c), 4001(d),’’. 
(iii) Section 4293 is amended by striking 
‘‘subchapter A of chapter 31,’’. 
(104) 
TRANSPORTATION
BY
AIR.—Section 
4261(e) is amended— 
(A) in paragraph (1), by striking subpara-
graph (C), and 
(B) by striking paragraph (5). 
(105) TAXES ON FAILURE TO DISTRIBUTE IN-
COME.— 
(A) Subsection (g) of section 4942 is 
amended by striking ‘‘For all taxable years be-
ginning on or after January 1, 1975, subject’’ 
in paragraph (2)(A) and inserting ‘‘Subject’’. 
(B) Section 4942(i)(2) is amended by 
striking ‘‘beginning after December 31, 1969, 
and’’. 
(106) TAXES ON TAXABLE EXPENDITURES.— 
Section 4945(f) is amended by striking ‘‘(excluding
118 
therefrom any preceding taxable year which begins 
before January 1, 1970)’’. 
(107) DEFINITIONS AND SPECIAL RULES.—Sec-
tion 4682(h) is amended— 
(A) by striking paragraph (1) and redesig-
nating paragraphs (2), (3), and (4) as para-
graphs (1), (2), and (3), respectively, and 
(B) in paragraph (1) (as so redesig-
nated)— 
(i) by striking the heading and insert-
ing ‘‘IN GENERAL’’, and 
(ii) by striking ‘‘after 1991’’ in sub-
paragraph (C). 
(108) RETURNS.—Subsection (a) of section 
6039D is amended by striking ‘‘beginning after De-
cember 31, 1984,’’. 
(109) INFORMATION RETURNS.—Subsection (c) 
of section 6060 is amended by striking ‘‘ ‘year’ ’’ and 
all that follows and inserting ‘‘year.’’. 
(110) COLLECTION.—Section 6302 is amend-
ed— 
(A) in subsection (e)(2), by striking ‘‘im-
posed by’’ and all that follows through ‘‘with re-
spect to’’ and inserting ‘‘imposed by sections 
4251, 4261, or 4271 with respect to’’,
119 
(B) by striking the last sentence of sub-
section (f)(1), and 
(C) in subsection (h)— 
(i) by striking paragraph (2) and re-
designating paragraphs (3) and (4) as 
paragraphs (2) and (3), respectively, and 
(ii) by amending paragraph (3) (as so 
redesignated) to read as follows: 
‘‘(3) COORDINATION WITH OTHER ELECTRONIC 
FUND
TRANSFER
REQUIREMENTS.—Under regula-
tions, any tax required to be paid by electronic fund 
transfer under section 5061(e) or 5703(b) shall be 
paid in such a manner as to ensure that the require-
ments of the second sentence of paragraph (1)(A) of 
this subsection are satisfied.’’. 
(111) 
ABATEMENTS.—Section 
6404(f) 
is 
amended by striking paragraph (3). 
(112) 2008 RECOVERY REBATE FOR INDIVID-
UALS.— 
(A) Subchapter B of chapter 65 is amend-
ed by striking section 6428 (and by striking the 
item relating to such section in the table of sec-
tions for such subchapter). 
(B) 
Subparagraph 
(A) 
of 
section 
6211(b)(4) is amended by striking ‘‘6428,’’.
120 
(C) Paragraph (2) of section 6213(g), as 
amended by section 214(a)(2) of this Act and 
paragraphs (4) and (5)(C) of this subsection, is 
amended by striking subparagraph (Q), by re-
designating subparagraph (O) as subparagraph 
(N), by inserting ‘‘and’’ at the end of subpara-
graph (M), and by striking the comma at the 
end of subparagraph (N) (as so redesignated) 
and inserting a period. 
(D) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by 
striking ‘‘6428, or 6431,’’ and inserting ‘‘or 
6431’’. 
(113) ADVANCE PAYMENT OF PORTION OF IN-
CREASED CHILD CREDIT FOR 2003.—Subchapter B 
of chapter 65 is amended by striking section 6429 
(and by striking the item relating to such section in 
the table of sections for such subchapter). 
(114) FAILURE BY CORPORATION TO PAY ESTI-
MATED
INCOME
TAX.—Clause 
(i) 
of 
section 
6655(g)(4)(A) is amended by striking ‘‘(or the cor-
responding provisions of prior law)’’. 
(115) RETIREMENT.—Section 7447(i)(3)(B)(ii) 
is amended by striking ‘‘at 4 percent per annum to
121 
December 31, 1947, and 3 percent per annum there-
after’’, and inserting ‘‘at 3 percent per annum’’. 
(116) ANNUITIES TO SURVIVING SPOUSES AND 
DEPENDENT CHILDREN OF JUDGES.— 
(A) Paragraph (2) of section 7448(a) is 
amended— 
(i) by striking ‘‘or under section 1106 
of the Internal Revenue Code of 1939’’, 
and 
(ii) by striking ‘‘or pursuant to sec-
tion 1106(d) of the Internal Revenue Code 
of 1939’’. 
(B) Subsection (g) of section 7448 is 
amended by striking ‘‘or other than pursuant to 
section 1106 of the Internal Revenue Code of 
1939’’. 
(C) Subsections (g), (j)(1), and (j)(2) of 
section 7448 are each amended by striking ‘‘at 
4 percent per annum to December 31, 1947, 
and 3 percent per annum thereafter’’ and in-
serting ‘‘at 3 percent per annum’’. 
(117) MERCHANT MARINE CAPITAL CONSTRUC-
TION FUNDS.—Paragraph (4) of section 7518(g) is 
amended by striking ‘‘any nonqualified withdrawal’’ 
and all that follows through ‘‘ ‘shall be determined’’
122 
and inserting ‘‘any nonqualified withdrawal shall be 
determined’’. 
(118) VALUATION TABLES.— 
(A) Subsection (c) of section 7520 is 
amended by striking paragraph (2) and redesig-
nating paragraph (3) as paragraph (2). 
(B) Paragraph (2) of section 7520(c) (as 
redesignated by subparagraph (A)) is amend-
ed— 
(i) by striking ‘‘Not later than Decem-
ber 31, 1989, the’’ and inserting ‘‘The’’, 
and 
(ii) by striking ‘‘thereafter’’ in the last 
sentence thereof. 
(119) DEFINITION
OF
EMPLOYEE.—Section 
7701(a)(20) is amended by striking ‘‘chapter 21’’ 
and all that follows and inserting ‘‘chapter 21.’’. 
(b) EFFECTIVE DATE.— 
(1) GENERAL RULE.—Except as otherwise pro-
vided in subsection (a) or paragraph (2) of this sub-
section, the amendments made by this section shall 
take effect on the date of enactment of this Act. 
(2) SAVINGS PROVISION.—If—
123 
(A) any provision amended or repealed by 
the amendments made by this section applied 
to— 
(i) any transaction occurring before 
the date of the enactment of this Act, 
(ii) any property acquired before such 
date of enactment, or 
(iii) any item of income, loss, deduc-
tion, or credit taken into account before 
such date of enactment, and 
(B) the treatment of such transaction, 
property, or item under such provision would 
(without regard to the amendments or repeals 
made by this section) affect the liability for tax 
for periods ending after date of enactment, 
nothing in the amendments or repeals made by 
this section shall be construed to affect the 
treatment of such transaction, property, or item 
for purposes of determining liability for tax for 
periods ending after such date of enactment.
124 
TITLE III—JOINT COMMITTEE 
ON TAXATION 
SEC. 301. INCREASED REFUND AND CREDIT THRESHOLD 
FOR JOINT COMMITTEE ON TAXATION RE-
VIEW OF C CORPORATION RETURN. 
(a) IN GENERAL.—Subsections (a) and (b) of section 
6405 are each amended by inserting ‘‘($5,000,000 in the 
case of a C corporation)’’ after ‘‘$2,000,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act, except that such amendment shall not apply 
with respect to any refund or credit with respect to a re-
port that has been made before such date under section 
6405 of the Internal Revenue Code of 1986. 
TITLE IV—BUDGETARY EFFECTS 
SEC. 401. BUDGETARY EFFECTS. 
(a) PAYGO SCORECARD.—The budgetary effects of 
this Act shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay- 
As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARD.—The budgetary ef-
fects of this Act shall not be entered on any PAYGO score-
card maintained for purposes of section 201 of S. Con. 
Res. 21 (110th Congress).
125 
DIVISION B—ACHIEVING A BET-
TER LIFE EXPERIENCE ACT 
OF 2014 
SEC. 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Achieving a Better Life Experience Act of 2014’’ or the 
‘‘ABLE Act of 2014’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
TITLE I—QUALIFIED ABLE 
PROGRAMS 
SEC. 101. PURPOSES. 
The purposes of this title are as follows: 
(1) To encourage and assist individuals and 
families in saving private funds for the purpose of 
supporting individuals with disabilities to maintain 
health, independence, and quality of life. 
(2) To provide secure funding for disability-re-
lated expenses on behalf of designated beneficiaries 
with disabilities that will supplement, but not sup-
plant, benefits provided through private insurance,
126 
the Medicaid program under title XIX of the Social 
Security Act, the supplemental security income pro-
gram under title XVI of such Act, the beneficiary’s 
employment, and other sources. 
SEC. 102. QUALIFIED ABLE PROGRAMS. 
(a) IN GENERAL.—Subchapter F of chapter 1 is 
amended by inserting after section 529 the following new 
section: 
‘‘SEC. 529A. QUALIFIED ABLE PROGRAMS. 
‘‘(a) GENERAL RULE.—A qualified ABLE program 
shall be exempt from taxation under this subtitle. Not-
withstanding the preceding sentence, such program shall 
be subject to the taxes imposed by section 511 (relating 
to imposition of tax on unrelated business income of chari-
table organizations). 
‘‘(b) QUALIFIED ABLE PROGRAM.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified ABLE 
program’ means a program established and main-
tained by a State, or agency or instrumentality 
thereof— 
‘‘(A) under which a person may make con-
tributions for a taxable year, for the benefit of 
an individual who is an eligible individual for 
such taxable year, to an ABLE account which
127 
is established for the purpose of meeting the 
qualified disability expenses of the designated 
beneficiary of the account, 
‘‘(B) which limits a designated beneficiary 
to 1 ABLE account for purposes of this section, 
‘‘(C) which allows for the establishment of 
an ABLE account only for a designated bene-
ficiary who is a resident of such State or a resi-
dent of a contracting State, and 
‘‘(D) which meets the other requirements 
of this section. 
‘‘(2) CASH CONTRIBUTIONS.—A program shall 
not be treated as a qualified ABLE program unless 
it provides that no contribution will be accepted— 
‘‘(A) unless it is in cash, or 
‘‘(B) except in the case of contributions 
under subsection (c)(1)(C), if such contribution 
to an ABLE account would result in aggregate 
contributions from all contributors to the 
ABLE account for the taxable year exceeding 
the amount in effect under section 2503(b) for 
the calendar year in which the taxable year be-
gins.
128 
For purposes of this paragraph, rules similar to the 
rules of section 408(d)(4) (determined without re-
gard to subparagraph (B) thereof) shall apply. 
‘‘(3) SEPARATE ACCOUNTING.—A program shall 
not be treated as a qualified ABLE program unless 
it provides separate accounting for each designated 
beneficiary. 
‘‘(4) LIMITED
INVESTMENT
DIRECTION.—A 
program shall not be treated as a qualified ABLE 
program unless it provides that any designated bene-
ficiary under such program may, directly or indi-
rectly, direct the investment of any contributions to 
the program (or any earnings thereon) no more than 
2 times in any calendar year. 
‘‘(5) NO
PLEDGING
OF
INTEREST
AS
SECU-
RITY.—A program shall not be treated as a qualified 
ABLE program if it allows any interest in the pro-
gram or any portion thereof to be used as security 
for a loan. 
‘‘(6) PROHIBITION
ON
EXCESS
CONTRIBU-
TIONS.—A program shall not be treated as a quali-
fied ABLE program unless it provides adequate 
safeguards to prevent aggregate contributions on be-
half of a designated beneficiary in excess of the limit 
established by the State under section 529(b)(6).
129 
For purposes of the preceding sentence, aggregate 
contributions include contributions under any prior 
qualified ABLE program of any State or agency or 
instrumentality thereof. 
‘‘(c) TAX TREATMENT.— 
‘‘(1) DISTRIBUTIONS.— 
‘‘(A) 
IN
GENERAL.—Any 
distribution 
under a qualified ABLE program shall be in-
cludible in the gross income of the distributee 
in the manner as provided under section 72 to 
the extent not excluded from gross income 
under any other provision of this chapter. 
‘‘(B) DISTRIBUTIONS FOR QUALIFIED DIS-
ABILITY
EXPENSES.—For purposes of this 
paragraph, if distributions from a qualified 
ABLE program— 
‘‘(i) do not exceed the qualified dis-
ability expenses of the designated bene-
ficiary, no amount shall be includible in 
gross income, and 
‘‘(ii) in any other case, the amount 
otherwise includible in gross income shall 
be reduced by an amount which bears the 
same ratio to such amount as such ex-
penses bear to such distributions.
130 
‘‘(C) CHANGE
IN
DESIGNATED
BENE-
FICIARIES OR PROGRAMS.— 
‘‘(i) ROLLOVERS
FROM
ABLE
AC-
COUNTS.—Subparagraph (A) shall not 
apply to any amount paid or distributed 
from an ABLE account to the extent that 
the amount received is paid, not later than 
the 60th day after the date of such pay-
ment or distribution, into another ABLE 
account for the benefit of the same des-
ignated beneficiary or an eligible individual 
who is a family member of the designated 
beneficiary. 
‘‘(ii) CHANGE IN DESIGNATED BENE-
FICIARIES.—Any change in the designated 
beneficiary of an interest in a qualified 
ABLE program during a taxable year shall 
not be treated as a distribution for pur-
poses of subparagraph (A) if the new bene-
ficiary is an eligible individual for such 
taxable year and a member of the family of 
the former beneficiary. 
‘‘(iii) LIMITATION ON CERTAIN ROLL-
OVERS.—Clause (i) shall not apply to any 
transfer if such transfer occurs within 12
131 
months from the date of a previous trans-
fer to any qualified ABLE program for the 
benefit of the designated beneficiary. 
‘‘(D) OPERATING RULES.—For purposes of 
applying section 72— 
‘‘(i) except to the extent provided by 
the Secretary, all distributions during a 
taxable year shall be treated as one dis-
tribution, and 
‘‘(ii) except to the extent provided by 
the Secretary, the value of the contract, in-
come on the contract, and investment in 
the contract shall be computed as of the 
close of the calendar year in which the tax-
able year begins. 
‘‘(2) GIFT TAX RULES.—For purposes of chap-
ters 12 and 13— 
‘‘(A) CONTRIBUTIONS.—Any contribution 
to a qualified ABLE program on behalf of any 
designated beneficiary— 
‘‘(i) shall be treated as a completed 
gift to such designated beneficiary which is 
not a future interest in property, and 
‘‘(ii) shall not be treated as a qualified 
transfer under section 2503(e).
132 
‘‘(B) TREATMENT OF DISTRIBUTIONS.—In 
no event shall a distribution from an ABLE ac-
count to such account’s designated beneficiary 
be treated as a taxable gift. 
‘‘(C) TREATMENT OF TRANSFER TO NEW 
DESIGNATED
BENEFICIARY.—The taxes im-
posed by chapters 12 and 13 shall not apply to 
a transfer by reason of a change in the des-
ignated beneficiary under subsection (c)(1)(C). 
‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT 
USED FOR DISABILITY EXPENSES.— 
‘‘(A) IN GENERAL.—The tax imposed by 
this chapter for any taxable year on any tax-
payer who receives a distribution from a quali-
fied ABLE program which is includible in gross 
income shall be increased by 10 percent of the 
amount which is so includible. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply if the payment or distribution is 
made to a beneficiary (or to the estate of the 
designated beneficiary) on or after the death of 
the designated beneficiary. 
‘‘(C) CONTRIBUTIONS RETURNED BEFORE 
CERTAIN
DATE.—Subparagraph (A) shall not 
apply to the distribution of any contribution
133 
made during a taxable year on behalf of the 
designated beneficiary if— 
‘‘(i) such distribution is received on or 
before the day prescribed by law (including 
extensions of time) for filing such des-
ignated beneficiary’s return for such tax-
able year, and 
‘‘(ii) such distribution is accompanied 
by the amount of net income attributable 
to such excess contribution. 
Any net income described in clause (ii) shall be 
included in gross income for the taxable year in 
which such excess contribution was made. 
‘‘(4) LOSS OF ABLE ACCOUNT TREATMENT.—If 
an ABLE account is established for a designated 
beneficiary, no account subsequently established for 
such beneficiary shall be treated as an ABLE ac-
count. The preceding sentence shall not apply in the 
case of an account established for purposes of a roll-
over described in paragraph (1)(C)(i) of this section 
if the transferor account is closed as of the end of 
the 60th day referred to in paragraph (1)(C)(i). 
‘‘(d) REPORTS.— 
‘‘(1) IN GENERAL.—Each officer or employee 
having control of the qualified ABLE program or
134 
their designee shall make such reports regarding 
such program to the Secretary and to designated 
beneficiaries with respect to contributions, distribu-
tions, the return of excess contributions, and such 
other matters as the Secretary may require. 
‘‘(2) CERTAIN
AGGREGATED
INFORMATION.— 
For research purposes, the Secretary shall make 
available to the public reports containing aggregate 
information, by diagnosis and other relevant charac-
teristics, on contributions and distributions from the 
qualified ABLE program. In carrying out the pre-
ceding sentence an item may not be made available 
to the public if such item can be associated with, or 
otherwise identify, directly or indirectly, a particular 
individual. 
‘‘(3) NOTICE OF ESTABLISHMENT OF ABLE AC-
COUNT.—A qualified ABLE program shall submit a 
notice to the Secretary upon the establishment of an 
ABLE account. Such notice shall contain the name 
and State of residence of the designated beneficiary 
and such other information as the Secretary may re-
quire. 
‘‘(4) 
ELECTRONIC
DISTRIBUTION
STATE-
MENTS.—For purposes of section 4 of the Achieving 
a Better Life Experience Act of 2014, States shall
135 
submit electronically on a monthly basis to the Com-
missioner of Social Security, in the manner specified 
by the Commissioner, statements on relevant dis-
tributions and account balances from all ABLE ac-
counts. 
‘‘(5) REQUIREMENTS.—The reports and notices 
required by paragraphs (1), (2), and (3) shall be 
filed at such time and in such manner and furnished 
to such individuals at such time and in such manner 
as may be required by the Secretary. 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) ELIGIBLE INDIVIDUAL.—An individual is 
an eligible individual for a taxable year if during 
such taxable year— 
‘‘(A) the individual is entitled to benefits 
based on blindness or disability under title II or 
XVI of the Social Security Act, and such blind-
ness or disability occurred before the date on 
which the individual attained age 26, or 
‘‘(B) a disability certification with respect 
to such individual is filed with the Secretary for 
such taxable year. 
‘‘(2) DISABILITY CERTIFICATION.—
136 
‘‘(A) IN
GENERAL.—The term ‘disability 
certification’ means, with respect to an indi-
vidual, a certification to the satisfaction of the 
Secretary by the individual or the parent or 
guardian of the individual that— 
‘‘(i) certifies that— 
‘‘(I) the individual has a medi-
cally determinable physical or mental 
impairment, which results in marked 
and severe functional limitations, and 
which can be expected to result in 
death or which has lasted or can be 
expected to last for a continuous pe-
riod of not less than 12 months, or is 
blind (within the meaning of section 
1614(a)(2) of the Social Security 
Act), and 
‘‘(II) such blindness or disability 
occurred before the date on which the 
individual attained age 26, and 
‘‘(ii) includes a copy of the individ-
ual’s diagnosis relating to the individual’s 
relevant 
impairment 
or 
impairments, 
signed by a physician meeting the criteria
137 
of section 1861(r)(1) of the Social Security 
Act. 
‘‘(B) RESTRICTION ON USE OF CERTIFI-
CATION.—No inference may be drawn from a 
disability certification for purposes of estab-
lishing eligibility for benefits under title II, 
XVI, or XIX of the Social Security Act. 
‘‘(3) DESIGNATED
BENEFICIARY.—The term 
‘designated beneficiary’ in connection with an ABLE 
account established under a qualified ABLE pro-
gram means the eligible individual who established 
an ABLE account and is the owner of such account. 
‘‘(4) MEMBER OF FAMILY.—The term ‘member 
of the family’ means, with respect to any designated 
beneficiary, an individual who bears a relationship to 
such beneficiary which is described in subparagraph 
section 152(d)(2)(B). For purposes of the preceding 
sentence, a rule similar to the rule of section 
152(f)(1)(B) shall apply. 
‘‘(5) QUALIFIED DISABILITY EXPENSES.—The 
term ‘qualified disability expenses’ means any ex-
penses related to the eligible individual’s blindness 
or disability which are made for the benefit of an eli-
gible individual who is the designated beneficiary, in-
cluding the following expenses: education, housing,
138 
transportation, employment training and support, 
assistive technology and personal support services, 
health, prevention and wellness, financial manage-
ment and administrative services, legal fees, ex-
penses for oversight and monitoring, funeral and 
burial expenses, and other expenses, which are ap-
proved by the Secretary under regulations and con-
sistent with the purposes of this section. 
‘‘(6) ABLE ACCOUNT.—The term ‘ABLE ac-
count’ means an account established by an eligible 
individual, owned by such eligible individual, and 
maintained under a qualified ABLE program. 
‘‘(7) CONTRACTING
STATE.—The term ‘con-
tracting State’ means a State without a qualified 
ABLE program which has entered into a contract 
with a State with a qualified ABLE program to pro-
vide residents of the contracting State access to a 
qualified ABLE program. 
‘‘(f) TRANSFER
TO STATE.—Subject to any out-
standing payments due for qualified disability expenses, 
upon the death of the designated beneficiary, all amounts 
remaining in the qualified ABLE account not in excess 
of the amount equal to the total medical assistance paid 
for the designated beneficiary after the establishment of 
the account, net of any premiums paid from the account
139 
or paid by or on behalf of the beneficiary to a Medicaid 
Buy-In program under any State Medicaid plan estab-
lished under title XIX of the Social Security Act, shall 
be distributed to such State upon filing of a claim for pay-
ment by such State. For purposes of this paragraph, the 
State shall be a creditor of an ABLE account and not 
a beneficiary. Subsection (c)(3) shall not apply to a dis-
tribution under the preceding sentence. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as the Secretary deter-
mines necessary or appropriate to carry out the purposes 
of this section, including regulations— 
‘‘(1) to enforce the 1 ABLE account per eligible 
individual limit, 
‘‘(2) providing for the information required to 
be presented to open an ABLE account, 
‘‘(3) to generally define qualified disability ex-
penses, 
‘‘(4) developed in consultation with the Com-
missioner of Social Security, relating to disability 
certifications and determinations of disability, in-
cluding those conditions deemed to meet the require-
ments of subsection (e)(1)(B), 
‘‘(5) to prevent fraud and abuse with respect to 
amounts claimed as qualified disability expenses,
140 
‘‘(6) under chapters 11, 12, and 13 of this title, 
and 
‘‘(7) to allow for transfers from one ABLE ac-
count to another ABLE account.’’. 
(b) TAX ON EXCESS CONTRIBUTIONS.— 
(1) IN
GENERAL.—Subsection (a) of section 
4973 (relating to tax on excess contributions to cer-
tain tax-favored accounts and annuities) is amended 
by striking ‘‘or’’ at the end of paragraph (4), by in-
serting ‘‘or’’ at the end of paragraph (5), and by in-
serting after paragraph (5) the following new para-
graph: 
‘‘(6) an ABLE account (within the meaning of 
section 529A),’’. 
(2) EXCESS CONTRIBUTION.—Section 4973 is 
amended by adding at the end the following new 
subsection: 
‘‘(h) EXCESS
CONTRIBUTIONS
TO
ABLE AC-
COUNT.—For purposes of this section— 
‘‘(1) IN GENERAL.—In the case of an ABLE 
account (within the meaning of section 529A), the 
term ‘excess contributions’ means the amount by 
which the amount contributed for the taxable year to 
such account (other than contributions under section
141 
529A(c)(1)(C)) exceeds the contribution limit under 
section 529A(b)(2)(B). 
‘‘(2) SPECIAL RULE.—For purposes of this sub-
section, any contribution which is distributed out of 
the ABLE account in a distribution to which the 
last sentence of section 529A(b)(2) applies shall be 
treated as an amount not contributed.’’. 
(c) PENALTY FOR FAILURE TO FILE REPORTS.— 
Section 6693(a)(2) is amended by striking ‘‘and’’ at the 
end of subparagraph (D), by redesignating subparagraph 
(E) as subparagraph (F), and by inserting after subpara-
graph (D) the following: 
‘‘(E) section 529A(d) (relating to qualified 
ABLE programs), and’’. 
(d) RECORDS.—Section 552a(a)(8)(B) of title 5, 
United States Code, is amended— 
(1) in clause (viii), by striking ‘‘or’’ at the end; 
(2) in clause (ix), by adding ‘‘or’’ at the end; 
and 
(3) by adding at the end the following new 
clause: 
‘‘(x) matches performed pursuant to 
section 3(d)(4) of the Achieving a Better 
Life Experience Act of 2014;’’. 
(e) OTHER CONFORMING AMENDMENTS.—
142 
(1) Section 26(b)(2) is amended by striking 
‘‘and’’ at the end of subparagraph (W), by striking 
the period at the end of subparagraph (X) and in-
serting ‘‘, and’’, and by inserting after subparagraph 
(X) the following: 
‘‘(Y) section 529A(c)(3)(A) (relating to ad-
ditional tax on ABLE account distributions not 
used for qualified disability expenses).’’. 
(2) Section 877A is amended— 
(A) in subsection (e)(2) by inserting ‘‘a 
qualified ABLE program (as defined in section 
529A),’’ after ‘‘529),’’, and 
(B) in subsection (g)(6) by inserting 
‘‘529A(c)(3),’’ after ‘‘529(c)(6),’’. 
(3) Section 4965(c) is amended by striking 
‘‘or’’ at the end of paragraph (6), by striking the pe-
riod at the end of paragraph (7) and inserting ‘‘, 
or’’, and by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(8) a program described in section 529A.’’. 
(4) The heading for part VIII of subchapter F 
of chapter 1 is amended by striking ‘‘HIGHER EDU-
CATION’’ and inserting ‘‘CERTAIN’’.
143 
(5) The item in the table of parts for sub-
chapter F of chapter 1 relating to part VIII is 
amended to read as follows: 
‘‘PART VIII. CERTAIN SAVINGS ENTITIES.’’. 
(6) The table of sections for part VIII of sub-
chapter F of chapter 1 is amended by inserting after 
the item relating to section 529 the following new 
item: 
‘‘Sec. 529A. Qualified ABLE programs.’’. 
(7) Paragraph (4) of section 1027(g) of the 
Consumer Financial Protection Act of 2010 (12 
U.S.C. 5517(g)(4)) is amended by inserting ‘‘, 
529A’’ after ‘‘529’’. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2014. 
(2) REGULATIONS.—The Secretary of the 
Treasury (or the Secretary’s designee) shall promul-
gate the regulations or other guidance required 
under section 529A(g) of the Internal Revenue Code 
of 1986, as added by subsection (a), not later than 
6 months after the date of the enactment of this 
Act.
157 
a person who applies to be treated as a certified profes-
sional employer organization for purposes of section 3511 
and has been certified by the Secretary as meeting the 
requirements of subsection (b). 
‘‘(b) CERTIFICATION
REQUIREMENTS.—A person 
meets the requirements of this subsection if such person— 
‘‘(1) demonstrates that such person (and any 
owner, officer, and other persons as may be specified 
in regulations) meets such requirements as the Sec-
retary shall establish, including requirements with 
respect to tax status, background, experience, busi-
ness location, and annual financial audits, 
‘‘(2) agrees that it will satisfy the bond and 
independent financial review requirements of sub-
section (c) on an ongoing basis, 
‘‘(3) agrees that it will satisfy such reporting 
obligations as may be imposed by the Secretary, 
‘‘(4) computes its taxable income using an ac-
crual method of accounting unless the Secretary ap-
proves another method, 
‘‘(5) agrees to verify on such periodic basis as 
the Secretary may prescribe that it continues to 
meet the requirements of this subsection, and 
‘‘(6) agrees to notify the Secretary in writing 
within such time as the Secretary may prescribe of