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‘‘(A) the basic exclusion amount, or 
‘‘(B) the excess of— 
‘‘(i) the basic exclusion amount of the 
last such deceased spouse of such surviving 
spouse, over 
‘‘(ii) the amount with respect to which 
the tentative tax is determined under sec-
tion 2001(b)(1) on the estate of such de-
ceased spouse. 
‘‘(5) SPECIAL RULES.— 
‘‘(A) ELECTION
REQUIRED.—A deceased 
spousal unused exclusion amount may not be 
taken into account by a surviving spouse under 
paragraph (2) unless the executor of the estate of 
the deceased spouse files an estate tax return on 
which such amount is computed and makes an 
election on such return that such amount may be 
so taken into account. Such election, once made, 
shall be irrevocable. No election may be made 
under this subparagraph if such return is filed 
after the time prescribed by law (including ex-
tensions) for filing such return. 
‘‘(B) EXAMINATION
OF
PRIOR
RETURNS 
AFTER EXPIRATION OF PERIOD OF LIMITATIONS 
WITH RESPECT TO DECEASED SPOUSAL UNUSED
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EXCLUSION AMOUNT.—Notwithstanding any pe-
riod of limitation in section 6501, after the time 
has expired under section 6501 within which a 
tax may be assessed under chapter 11 or 12 with 
respect to a deceased spousal unused exclusion 
amount, the Secretary may examine a return of 
the deceased spouse to make determinations with 
respect to such amount for purposes of carrying 
out this subsection. 
‘‘(6) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary or appro-
priate to carry out this subsection.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 2505(a), as amend-
ed by section 302(b)(1), is amended to read as follows: 
‘‘(1) the applicable credit amount in effect under 
section 2010(c) which would apply if the donor died 
as of the end of the calendar year, reduced by’’. 
(2) Section 2631(c) is amended by striking ‘‘the 
applicable exclusion amount’’ and inserting ‘‘the 
basic exclusion amount’’. 
(3) Section 6018(a)(1) is amended by striking 
‘‘applicable exclusion amount’’ and inserting ‘‘basic 
exclusion amount’’. 
(c) EFFECTIVE DATES.—
† HR 4853 EAS2 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to estates of decedents dying and gifts made 
after December 31, 2010. 
(2) CONFORMING
AMENDMENT
RELATING
TO 
GENERATION-SKIPPING TRANSFERS.—The amendment 
made by subsection (b)(2) shall apply to generation- 
skipping transfers after December 31, 2010. 
SEC. 304. APPLICATION OF EGTRRA SUNSET TO THIS TITLE. 
Section 901 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 shall apply to the amendments 
made by this title. 
TITLE IV—TEMPORARY EXTEN-
SION OF INVESTMENT INCEN-
TIVES 
SEC. 401. EXTENSION OF BONUS DEPRECIATION; TEM-
PORARY 100 PERCENT EXPENSING FOR CER-
TAIN BUSINESS ASSETS. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) is 
amended— 
(1) by striking ‘‘January 1, 2012’’ in subpara-
graph (A)(iv) and inserting ‘‘January 1, 2014’’, and 
(2) by striking ‘‘January 1, 2011’’ each place it 
appears and inserting ‘‘January 1, 2013’’.
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(b) TEMPORARY 100 PERCENT EXPENSING.—Sub-
section (k) of section 168 is amended by adding at the end 
the following new paragraph: 
‘‘(5) SPECIAL RULE FOR PROPERTY ACQUIRED 
DURING CERTAIN PRE-2012 PERIODS.—In the case of 
qualified property acquired by the taxpayer (under 
rules similar to the rules of clauses (ii) and (iii) of 
paragraph (2)(A)) after September 8, 2010, and be-
fore January 1, 2012, and which is placed in service 
by the taxpayer before January 1, 2012 (January 1, 
2013, in the case of property described in subpara-
graph (2)(B) or (2)(C)), paragraph (1)(A) shall be 
applied by substituting ‘100 percent’ for ‘50 per-
cent’.’’. 
(c) EXTENSION OF ELECTION TO ACCELERATE THE 
AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 
(1) 
EXTENSION.—Clause 
(iii) 
of 
section 
168(k)(4)(D) is amended by striking ‘‘or production’’ 
and all that follows and inserting ‘‘or production— 
‘‘(I) after March 31, 2008, and be-
fore January 1, 2010, and 
‘‘(II) after December 31, 2010, 
and before January 1, 2013, 
shall be taken into account under subpara-
graph (B)(ii) thereof,’’.
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(2) RULES
FOR
ROUND
EXTENSION
PROP-
ERTY.—Paragraph (4) of section 168(k) is amended 
by adding at the end the following new subparagraph: 
‘‘(I) SPECIAL RULES FOR ROUND 2 EXTEN-
SION PROPERTY.— 
‘‘(i) IN
GENERAL.—In the case of 
round 2 extension property, this paragraph 
shall be applied without regard to— 
‘‘(I) the limitation described in 
subparagraph (B)(i) thereof, and 
‘‘(II) the business credit increase 
amount under subparagraph (E)(iii) 
thereof. 
‘‘(ii) TAXPAYERS PREVIOUSLY ELECT-
ING ACCELERATION.—In the case of a tax-
payer who made the election under subpara-
graph (A) for its first taxable year ending 
after March 31, 2008, or a taxpayer who 
made the election under subparagraph 
(H)(ii) for its first taxable year ending 
after December 31, 2008— 
‘‘(I) the taxpayer may elect not to 
have this paragraph apply to round 2 
extension property, but
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‘‘(II) if the taxpayer does not 
make the election under subclause (I), 
in applying this paragraph to the tax-
payer the bonus depreciation amount, 
maximum amount, and maximum in-
crease amount shall be computed and 
applied to eligible qualified property 
which is round 2 extension property. 
The amounts described in subclause (II) 
shall be computed separately from any 
amounts computed with respect to eligible 
qualified property which is not round 2 ex-
tension property. 
‘‘(iii) TAXPAYERS
NOT
PREVIOUSLY 
ELECTING ACCELERATION.—In the case of a 
taxpayer who neither made the election 
under subparagraph (A) for its first taxable 
year ending after March 31, 2008, nor 
made the election under subparagraph 
(H)(ii) for its first taxable year ending 
after December 31, 2008— 
‘‘(I) the taxpayer may elect to 
have this paragraph apply to its first 
taxable year ending after December 31,
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2010, and each subsequent taxable 
year, and 
‘‘(II) if the taxpayer makes the 
election under subclause (I), this para-
graph shall only apply to eligible 
qualified property which is round 2 ex-
tension property. 
‘‘(iv) ROUND
EXTENSION
PROP-
ERTY.—For purposes of this subparagraph, 
the term ‘round 2 extension property’ means 
property which is eligible qualified property 
solely by reason of the extension of the ap-
plication of the special allowance under 
paragraph (1) pursuant to the amendments 
made by section 401(a) of the Tax Relief, 
Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010 (and the ap-
plication of such extension to this para-
graph pursuant to the amendment made by 
section 401(c)(1) of such Act).’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (k) of section 168 
is amended by striking ‘‘JANUARY 1, 2011’’ and in-
serting ‘‘JANUARY 1, 2013’’.
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(2) The heading for clause (ii) of section 
168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY 1, 
2011’’ and inserting ‘‘PRE-JANUARY 1, 2013’’. 
(3) Subparagraph (D) of section 168(k)(4) is 
amended— 
(A) by striking clauses (iv) and (v), 
(B) by inserting ‘‘and’’ at the end of clause 
(ii), and 
(C) by striking the comma at the end of 
clause (iii) and inserting a period. 
(4) Paragraph (5) of section 168(l) is amend-
ed— 
(A) by inserting ‘‘and’’ at the end of sub-
paragraph (A), 
(B) by striking subparagraph (B), and 
(C) by redesignating subparagraph (C) as 
subparagraph (B). 
(5) Subparagraph (C) of section 168(n)(2) is 
amended by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2013’’. 
(6) Subparagraph (D) of section 1400L(b)(2) is 
amended by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2013’’.
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(7) Subparagraph (B) of section 1400N(d)(3) is 
amended by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2013’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to property placed in service after December 
31, 2010, in taxable years ending after such date. 
(2) TEMPORARY 100 PERCENT EXPENSING.—The 
amendment made by subsection (b) shall apply to 
property placed in service after September 8, 2010, in 
taxable years ending after such date. 
SEC. 402. TEMPORARY EXTENSION OF INCREASED SMALL 
BUSINESS EXPENSING. 
(a) DOLLAR
LIMITATION.—Section 179(b)(1) is 
amended by striking ‘‘and’’ at the end of subparagraph (B) 
and by striking subparagraph (C) and inserting the fol-
lowing new subparagraphs: 
‘‘(C) $125,000 in the case of taxable years 
beginning in 2012, and 
‘‘(D) $25,000 in the case of taxable years 
beginning after 2012.’’. 
(b) REDUCTION IN LIMITATION.—Section 179(b)(2) is 
amended by striking ‘‘and’’ at the end of subparagraph (B)