I 
111TH CONGRESS 
2D SESSION 
H. R. 6467 
To amend the Internal Revenue Code of 1986 to provide middle class tax 
relief, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 1, 2010 
Mr. LEVIN introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on the Budget, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
middle class tax relief, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Middle Class Tax Relief Act of 2010’’. 
(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 
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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: 
Sec. 1. Short title; etc. 
TITLE I—MIDDLE CLASS TAX RELIEF MADE PERMANENT 
Sec. 101. Middle class tax relief made permanent. 
Sec. 102. Certain provisions not applicable to high income individuals. 
Sec. 103. Related amendments. 
TITLE II—EXPENSING BY SMALL BUSINESSES OF CERTAIN 
DEPRECIABLE ASSETS 
Sec. 201. Increased limitations on expensing by small businesses of certain de-
preciable assets. 
TITLE III—EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 301. Extension of alternative minimum tax relief for nonrefundable per-
sonal credits. 
Sec. 302. Extension of increased alternative minimum tax exemption amount. 
TITLE IV—BUDGETARY PROVISION 
Sec. 401. PAYGO compliance. 
TITLE I—MIDDLE CLASS TAX 
RELIEF MADE PERMANENT 
SEC. 101. MIDDLE CLASS TAX RELIEF MADE PERMANENT. 
(a) IN GENERAL.—Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 shall 
not apply to the following provisions of such Act (and to 
the amendments made by such provisions): 
(1) Title I (relating to individual income tax 
rate reductions). 
(2) Title II (relating to tax benefits related to 
children). 
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(3) Title III (relating to marriage penalty re-
lief). 
(4) Title IV (relating to affordable education 
provisions). 
(b) REDUCED RATES ON CAPITAL GAINS AND DIVI-
DENDS.—The Jobs and Growth Tax Relief Reconciliation 
Act of 2003 is amended by striking section 303. 
SEC. 102. CERTAIN PROVISIONS NOT APPLICABLE TO HIGH 
INCOME INDIVIDUALS. 
(a) INDIVIDUAL INCOME TAX RATES.—Subsection (i) 
of section 1 is amended by striking paragraph (2), by re-
designating paragraph (3) as paragraph (4), and by in-
serting after paragraph (1) the following new paragraphs: 
‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.— 
The tables under subsections (a), (b), (c), (d), and 
(e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each 
place it appears (before the application of sub-
paragraph (B)), and 
‘‘(B) by substituting ‘28%’ for ‘31%’ each 
place it appears. 
‘‘(3) 33-PERCENT RATE BRACKET.— 
‘‘(A) IN GENERAL.—In the case of taxable 
years beginning after December 31, 2010— 
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‘‘(i) the rate of tax under subsections 
(a), (b), (c), and (d) on a taxpayer’s tax-
able income in the fourth rate bracket shall 
be 33 percent to the extent such income 
does not exceed an amount equal to the ex-
cess of— 
‘‘(I) the applicable amount, over 
‘‘(II) the dollar amount at which 
such bracket begins, and 
‘‘(ii) the 36 percent rate of tax under 
such subsections shall apply only to the 
taxpayer’s taxable income in such bracket 
in excess of the amount to which clause (i) 
applies. 
‘‘(B) APPLICABLE AMOUNT.—For purposes 
of this paragraph, the term ‘applicable amount’ 
means the excess of— 
‘‘(i) the applicable threshold, over 
‘‘(ii) the sum of the following amounts 
in effect for the taxable year: 
‘‘(I) the basic standard deduction 
(within 
the 
meaning 
of 
section 
63(c)(2)), and 
‘‘(II) 
the 
exemption 
amount 
(within 
the 
meaning 
of 
section 
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151(d)(1)) (or, in the case of sub-
section 
(a), 
such 
exemption 
amounts). 
‘‘(C) APPLICABLE THRESHOLD.—For pur-
poses of this paragraph, the term ‘applicable 
threshold’ means— 
‘‘(i) $250,000 in the case of sub-
section (a), 
‘‘(ii) $200,000 in the case of sub-
sections (b) and (c), and 
‘‘(iii) 1⁄2 the amount applicable under 
clause (i) (after adjustment, if any, under 
subparagraph (E)) in the case of sub-
section (d). 
‘‘(D) FOURTH RATE BRACKET.—For pur-
poses of this paragraph, the term ‘fourth rate 
bracket’ means the bracket which would (deter-
mined without regard to this paragraph) be the 
36-percent rate bracket. 
‘‘(E) INFLATION ADJUSTMENT.—For pur-
poses of this paragraph, a rule similar to the 
rule of paragraph (1)(C) shall apply with re-
spect to taxable years beginning in calendar 
years after 2010, applied by substituting ‘2008’ 
for ‘1992’ in subsection (f)(3)(B).’’. 
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(b) PHASEOUT
OF PERSONAL EXEMPTIONS
AND 
ITEMIZED DEDUCTIONS.— 
(1) OVERALL LIMITATION ON ITEMIZED DEDUC-
TIONS.—Section 68 is amended— 
(A) by striking ‘‘the applicable amount’’ 
the first place it appears in subsection (a) and 
inserting ‘‘the applicable threshold in effect 
under section 1(i)(3)’’, 
(B) by striking ‘‘the applicable amount’’ in 
subsection (a)(1) and inserting ‘‘such applicable 
threshold’’, 
(C) by striking subsection (b) and redesig-
nating subsections (c), (d), and (e) as sub-
sections (b), (c), and (d), respectively, and 
(D) by striking subsections (f) and (g). 
(2) PHASEOUT OF DEDUCTIONS FOR PERSONAL 
EXEMPTIONS.— 
(A) IN GENERAL.—Paragraph (3) of sec-
tion 151(d) is amended— 
(i) by striking ‘‘the threshold amount’’ 
in subparagraphs (A) and (B) and insert-
ing ‘‘the applicable threshold in effect 
under section 1(i)(3)’’, 
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(ii) by striking subparagraph (C) and 
redesignating subparagraph (D) as sub-
paragraph (C), and 
(iii) by striking subparagraphs (E) 
and (F). 
(B) 
CONFORMING
AMENDMENT.—Para-
graph (4) of section 151(d) is amended— 
(i) by striking subparagraph (B), 
(ii) by redesignating clauses (i) and 
(ii) of subparagraph (A) as subparagraphs 
(A) and (B), respectively, and by indenting 
such subparagraphs (as so redesignated) 
accordingly, and 
(iii) by striking all that precedes ‘‘in 
a calendar year after 1989,’’ and inserting 
the following: 
‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning’’. 
(c) REDUCED RATE ON CAPITAL GAINS AND DIVI-
DENDS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
(1)(h) is amended by striking subparagraph (C), by 
redesignating subparagraphs (D) and (E) as sub-
paragraphs (E) and (F) and by inserting after sub-
paragraph (B) the following new subparagraphs: 
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‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net cap-
ital gain (or, if less, taxable income) as ex-
ceeds the amount on which a tax is deter-
mined under subparagraph (B), or 
‘‘(ii) the excess (if any) of— 
‘‘(I) the amount of taxable in-
come which would (without regard to 
this subsection) be taxed at a rate 
below 36 percent, over 
‘‘(II) the sum of the amounts on 
which tax is determined under sub-
paragraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable income) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C),’’. 
(2) DIVIDENDS.—Subparagraph (A) of section 
1(h)(11) is amended by striking ‘‘qualified dividend 
income’’ and inserting ‘‘so much of the qualified div-
idend income as does not exceed the excess (if any) 
of— 
‘‘(i) the amount of taxable income 
which would (without regard to this sub-
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section) be taxed at a rate below 36 per-
cent, over 
‘‘(ii) taxable income reduced by quali-
fied dividend income.’’. 
(3) MINIMUM TAX.—Section 55 is amended by 
adding at the end the following new subsection: 
‘‘(f) APPLICATION OF MAXIMUM RATE OF TAX ON 
NET CAPITAL GAIN OF NONCORPORATE TAXPAYERS.—In 
the case of taxable years beginning after December 31, 
2010, the amount determined under subparagraph (C) of 
subsection (b)(3) shall be the sum of— 
‘‘(1) 15 percent of the lesser of— 
‘‘(A) so much of the adjusted net capital 
gain (or, if less, taxable excess) as exceeds the 
amount on which tax is determined under sub-
paragraph (B) of subsection (b)(3), or 
‘‘(B) the excess described in section 
1(h)(1)(C)(ii), plus 
‘‘(2) 20 percent of the adjusted net capital gain 
(or, if less, taxable excess) in excess of the sum of 
the amounts on which tax is determined under sub-
section (b)(3)(B) and paragraph (1).’’. 
(4) CONFORMING AMENDMENTS.— 
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(A) The following provisions are amended 
by striking ‘‘15 percent’’ and inserting ‘‘20 per-
cent’’: 
(i) Section 1445(e)(1). 
(ii) The second sentence of section 
7518(g)(6)(A). 
(iii) Section 53511(f)(2) of title 46, 
United States Code. 
(B) Sections 531 and 541 are each amend-
ed by striking ‘‘15 percent of’’ and inserting 
‘‘the product of the highest rate of tax under 
section 1(c) and’’. 
(C) Section 1445(e)(6) is amended by 
striking ‘‘15 percent (20 percent in the case of 
taxable years beginning after December 31, 
2010)’’ and inserting ‘‘20 percent’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2010. 
(2) WITHHOLDING.—The amendments made by 
subparagraphs (A)(i) and (C) of subsection (c)(4) 
shall apply to amounts paid on or after January 1, 
2011. 
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SEC. 103. RELATED AMENDMENTS. 
(a) APPLICATION
OF INCREASE
IN REFUNDABLE 
PORTION OF CHILD TAX CREDIT.— 
(1) IN GENERAL.—Subsection (d) of section 24 
is amended— 
(A) by striking ‘‘$10,000’’ in paragraph 
(1)(B)(i) and inserting ‘‘$3,000’’, and 
(B) by striking paragraphs (3) and (4). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2010. 
(b) APPLICATION OF INCREASE IN EARNED INCOME 
TAX CREDIT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
32(b)(2) is amended to read as follows: 
‘‘(B) JOINT RETURNS.— 
‘‘(i) IN GENERAL.—In the case of a 
joint return filed by an eligible individual 
and such individual’s spouse, the phaseout 
amount determined under subparagraph 
(A) shall be increased by $5,000. 
‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any taxable year beginning 
after 2010, the $5,000 amount in clause 
(i) shall be increased by an amount equal 
to— 
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‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost of living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins determined by sub-
stituting ‘calendar year 2008’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
Subparagraph (A) of subsection (j)(2) 
shall apply after taking into account any 
increase under the preceding sentence.’’. 
(2) CONFORMING AMENDMENT.—Subsection (b) 
of section 32 is amended by striking paragraph (3). 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2010. 
(c) APPLICATION TO ADOPTION CREDIT AND ADOP-
TION ASSISTANCE PROGRAMS.—Subsection (c) of section 
10909 of the Patient Protection and Affordable Care Act 
is amended to read as follows: 
‘‘(c) The amendments made by this section shall not 
apply to taxable years beginning after December 31, 
2011.’’. 
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TITLE II—EXPENSING BY SMALL 
BUSINESSES OF CERTAIN DE-
PRECIABLE ASSETS 
SEC. 201. INCREASED LIMITATIONS ON EXPENSING BY 
SMALL BUSINESSES OF CERTAIN DEPRE-
CIABLE ASSETS. 
(a) DOLLAR LIMITATION.—Subparagraph (C) of sec-
tion 179(b)(1) is amended by striking ‘‘$25,000’’ and in-
serting ‘‘$125,000’’. 
(b) THRESHOLD AT WHICH PHASEOUT BEGINS.— 
Subparagraph (C) of section 179(b)(2) is amended by 
striking ‘‘$200,000’’ and inserting ‘‘$500,000’’. 
(c) INFLATION ADJUSTMENT.—Subsection (b) of sec-
tion 179 is amended by adding at the end the following 
new paragraph: 
‘‘(6) INFLATION ADJUSTMENTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable beginning in a calendar year after 2011, 
the $125,000 and $500,000 amounts in para-
graphs (1)(C) and (2)(C) shall each be in-
creased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
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gins determined by substituting ‘calendar 
year 2006’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.— 
‘‘(i) DOLLAR
LIMITATION.—If the 
amount in paragraph (1) as increased 
under subparagraph (A) is not a multiple 
of $1,000, such amount shall be rounded 
to the nearest multiple of $1,000. 
‘‘(ii) PHASEOUT
AMOUNT.—If the 
amount in paragraph (2) as increased 
under subparagraph (A) is not a multiple 
of $10,000, such amount shall be rounded 
to the nearest multiple of $10,000.’’. 
(d) AUTHORITY TO REVOKE ELECTION MADE PER-
MANENT.—Paragraph (2) of section 179(c) is amended by 
striking ‘‘and before 2012’’. 
(e) TREATMENT OF CERTAIN COMPUTER SOFTWARE 
AS SECTION 179 PROPERTY MADE PERMANENT.—Clause 
(ii) of section 179(d)(1)(A) is amended by striking ‘‘and 
before 2012’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
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TITLE III—EXTENSION OF AL-
TERNATIVE 
MINIMUM 
TAX 
RELIEF 
SEC. 301. EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF 
FOR 
NONREFUNDABLE 
PERSONAL 
CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) is 
amended— 
(1) by striking ‘‘2000, 2001, 2002, 2003, 2004, 
2005, 2006, 2007, 2008, or 2009’’ and inserting 
‘‘the period beginning with calendar year 2000 and 
ending with calendar year 2011’’, and 
(2) by striking ‘‘2009’’ in the heading thereof 
and inserting ‘‘2011’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 302. EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) is 
amended— 
(1) by striking ‘‘($70,950 in the case of taxable 
years beginning in 2009)’’ in subparagraph (A) and 
inserting ‘‘($72,450 in the case of taxable years be-
ginning in 2010 or 2011)’’, and 
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(2) by striking ‘‘($46,700 in the case of taxable 
years beginning in 2009)’’ in subparagraph (B) and 
inserting ‘‘($47,450 in the case of taxable years be-
ginning in 2010 or 2011)’’. 
(b) NONAPPLICATION OF EGTRRA SUNSET.—Sec-
tion 901 of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 shall not apply to the amendments 
made by section 701 of such Act. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
TITLE IV—BUDGETARY 
PROVISION 
SEC. 401. PAYGO COMPLIANCE. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Æ 
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