H. R. 2029—795 
further, That the Government of the United States may charge 
fees for such loans, which shall be collected from borrowers in 
accordance with section 502(7) of the Congressional Budget Act 
of 1974: Provided further, That no funds made available to Iraq 
by the Department of State, Foreign Operations, and Related Pro-
grams Appropriations Act, 2016 or previous appropriations Acts 
may be used for payment of any fees associated with such loans: 
Provided further, That applicable provisions of section 3 of the 
Arms Export Control Act relating to restrictions on transfers, re- 
transfers and end-use shall apply to defense articles and services 
purchased with such loans: Provided further, That, in consultation 
with the Government of Iraq, special emphasis shall be placed 
on assistance to covered groups (as defined in section 1223(e)(2)(D) 
of Public Law 114–92) with the loans made available pursuant 
to this paragraph: Provided further, That such loans shall be repaid 
in not more than 12 years, including a grace period of up to 
1 year on repayment of principal. 
(b) CONSULTATION AND NOTIFICATION.—Funds made available 
pursuant to this section shall be subject to prior consultation with 
the appropriate congressional committees, and subject to the regular 
notification procedures of the Committees on Appropriations. 
(c) COMMITTEES.—For the purposes of this section, the terms 
‘‘appropriate congressional committees’’ and ‘‘Committees on Appro-
priations’’ have the same meaning as used in the Department 
of State, Foreign Operations and Related Programs Appropriations 
Act, 2016. 
(d) BUDGETARY EFFECTS.—Section 1001 of title X of this division 
shall not apply to this section. 
DIVISION P—TAX-RELATED PROVISIONS 
SEC. 1. TABLE OF CONTENTS. 
The table of contents for this division is as follows: 
Sec. 1. Table of contents. 
TITLE I—HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE EXCISE 
TAX PROVISIONS 
Sec. 101. Delay of excise tax on high cost employer-sponsored health coverage. 
Sec. 102. Deductibility of excise tax on high cost employer-sponsored health cov-
erage. 
Sec. 103. Study on suitable benchmarks for age and gender adjustment of excise 
tax on high cost employer-sponsored health coverage. 
TITLE II—ANNUAL FEE ON HEALTH INSURANCE PROVIDERS 
Sec. 201. Moratorium on annual fee on health insurance providers. 
TITLE III—MISCELLANEOUS PROVISIONS 
Sec. 301. Extension and phaseout of credits for wind facilities. 
Sec. 302. Extension of election to treat qualified facilities as energy property. 
Sec. 303. Extension and phaseout of solar energy credit. 
Sec. 304. Extension and phaseout of credits with respect to qualified solar electric 
property and qualified solar water heating property. 
Sec. 305. Treatment of transportation costs of independent refiners.
H. R. 2029—796 
TITLE I—HIGH COST EMPLOYER-SPON-
SORED HEALTH COVERAGE EXCISE 
TAX PROVISIONS 
SEC. 101. DELAY OF EXCISE TAX ON HIGH COST EMPLOYER-SPON-
SORED HEALTH COVERAGE. 
(a) IN GENERAL.—Sections 9001(c) and 10901(c) of the Patient 
Protection and Affordable Care Act, as amended by section 1401(b) 
of the Health Care and Education Reconciliation Act of 2010, are 
each amended by striking ‘‘2017’’ and inserting ‘‘2019’’. 
(b) 
CONFORMING
AMENDMENT.—Clause 
(v) 
of 
section 
4980I(b)(3)(C) of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘as in effect’’ and inserting ‘‘as determined 
for’’, and 
(2) by striking ‘‘as so in effect’’ and inserting ‘‘as so deter-
mined’’. 
SEC. 102. DEDUCTIBILITY OF EXCISE TAX ON HIGH COST EMPLOYER- 
SPONSORED HEALTH COVERAGE. 
Paragraph (10) of section 4980I(f) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(10) DEDUCTIBILITY OF TAX.—Section 275(a)(6) shall not 
apply to the tax imposed by subsection (a).’’. 
SEC. 103. STUDY ON SUITABLE BENCHMARKS FOR AGE AND GENDER 
ADJUSTMENT OF EXCISE TAX ON HIGH COST EMPLOYER- 
SPONSORED HEALTH COVERAGE. 
Not later than 18 months after the date of the enactment 
of this Act, the Comptroller General of the United States, in con-
sultation with the National Association of Insurance Commis-
sioners, shall report to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representa-
tives on— 
(1) the suitability of the use (in effect under section 
4980I(b)(3)(C)(iii)(II) of the Internal Revenue Code of 1986 as 
of the date of the enactment of this Act) of the premium 
cost of the Blue Cross/Blue Shield standard benefit option under 
the Federal Employees Health Benefits Plan as a benchmark 
for the age and gender adjustment of the applicable dollar 
limit with respect to the excise tax on high cost employer- 
sponsored health coverage under section 4980I of the Internal 
Revenue Code of 1986; and 
(2) recommendations regarding any more suitable bench-
marks for such age and gender adjustment. 
TITLE II—ANNUAL FEE ON HEALTH 
INSURANCE PROVIDERS 
SEC. 201. MORATORIUM ON ANNUAL FEE ON HEALTH INSURANCE PRO-
VIDERS. 
Subsection (j) of section 9010 of the Patient Protection and 
Affordable Care Act is amended to read as follows: 
‘‘(j) EFFECTIVE DATE.—This section shall apply to calendar 
years—
H. R. 2029—797 
‘‘(1) beginning after December 31, 2013, and ending before 
January 1, 2017, and 
‘‘(2) beginning after December 31, 2017.’’. 
TITLE III—MISCELLANEOUS 
PROVISIONS 
SEC. 301. EXTENSION AND PHASEOUT OF CREDITS FOR WIND FACILI-
TIES. 
(a) IN GENERAL.— 
(1) EXTENSION.—Paragraph (1) of section 45(d) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘January 
1, 2015’’ and inserting ‘‘January 1, 2020’’. 
(2) PHASEOUT.—Subsection (b) of section 45 of such Code 
is amended by adding at the end the following new paragraph: 
‘‘(5) PHASEOUT OF CREDIT FOR WIND FACILITIES.—In the 
case of any facility using wind to produce electricity, the amount 
of the credit determined under subsection (a) (determined after 
the application of paragraphs (1), (2), and (3) and without 
regard to this paragraph) shall be reduced by— 
‘‘(A) in the case of any facility the construction of 
which begins after December 31, 2016, and before January 
1, 2018, 20 percent, 
‘‘(B) in the case of any facility the construction of 
which begins after December 31, 2017, and before January 
1, 2019, 40 percent, and 
‘‘(C) in the case of any facility the construction of 
which begins after December 31, 2018, and before January 
1, 2020, 60 percent.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2015. 
SEC. 302. EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES 
AS ENERGY PROPERTY. 
(a) IN GENERAL.—Clause (ii) of section 48(a)(5)(C) is amended 
by inserting ‘‘(January 1, 2020, in the case of any facility which 
is described in paragraph (1) of section 45(d))’’ before ‘‘, and’’. 
(b) PHASEOUT FOR WIND FACILITIES.—Paragraph (5) of section 
48(a) is amended by adding at the end the following new subpara-
graph: 
‘‘(E) PHASEOUT OF CREDIT FOR WIND FACILITIES.—In 
the case of any facility using wind to produce electricity, 
the amount of the credit determined under this section 
(determined after the application of paragraphs (1) and 
(2) and without regard to this subparagraph) shall be 
reduced by— 
‘‘(i) in the case of any facility the construction 
of which begins after December 31, 2016, and before 
January 1, 2018, 20 percent, 
‘‘(ii) in the case of any facility the construction 
of which begins after December 31, 2017, and before 
January 1, 2019, 40 percent, and 
‘‘(iii) in the case of any facility the construction 
of which begins after December 31, 2018, and before 
January 1, 2020, 60 percent.’’.
H. R. 2029—798 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2015. 
SEC. 303. EXTENSION AND PHASEOUT OF SOLAR ENERGY CREDIT. 
(a) EXTENSION.—Subclause (II) of section 48(a)(2)(A)(i) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘periods 
ending before January 1, 2017’’ and inserting ‘‘property the 
construction of which begins before January 1, 2022’’. 
(b) PHASEOUT FOR SOLAR ENERGY PROPERTY.—Subsection (a) 
of section 48 of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(6) PHASEOUT FOR SOLAR ENERGY PROPERTY.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), in the 
case of any energy property described in paragraph (3)(A)(i) 
the construction of which begins before January 1, 2022, 
the energy percentage determined under paragraph (2) 
shall be equal to— 
‘‘(i) in the case of any property the construction 
of which begins after December 31, 2019, and before 
January 1, 2021, 26 percent, and 
‘‘(ii) in the case of any property the construction 
of which begins after December 31, 2020, and before 
January 1, 2022, 22 percent. 
‘‘(B) PLACED IN SERVICE DEADLINE.—In the case of any 
property energy property described in paragraph (3)(A)(i) 
the construction of which begins before January 1, 2022, 
and which is not placed in service before January 1, 2024, 
the energy percentage determined under paragraph (2) 
shall be equal to 10 percent.’’. 
(c) CONFORMING AMENDMENT.—Subparagraph (A) of section 
48(a)(2) of such Code is amended by striking ‘‘The energy percent-
age’’ and inserting ‘‘Except as provided in paragraph (6), the energy 
percentage’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 304. EXTENSION AND PHASEOUT OF CREDITS WITH RESPECT 
TO QUALIFIED SOLAR ELECTRIC PROPERTY AND QUALI-
FIED SOLAR WATER HEATING PROPERTY. 
(a) IN GENERAL.—Section 25D of the Internal Revenue Code 
of 1986 is amended— 
(1) in paragraphs (1) and (2) of subsection (a), by striking 
‘‘30 percent’’ each place it appears and inserting ‘‘the applicable 
percentage’’, 
(2) in subsection (g), by inserting ‘‘(December 31, 2021, 
in the case of any qualified solar electric property expenditures 
and qualified solar water heating property expenditures)’’ before 
the period at the end, 
(3) by redesignating subsection (g), as amended by para-
graph (2), as subsection (h), and 
(4) by inserting after subsection (f) the following new sub-
section: 
‘‘(g) APPLICABLE PERCENTAGE.—For purposes of paragraphs (1) 
and (2) of subsection (a), the applicable percentage shall be— 
‘‘(1) in the case of property placed in service after December 
31, 2016, and before January 1, 2020, 30 percent, 
‘‘(2) in the case of property placed in service after December 
31, 2019, and before January 1, 2021, 26 percent, and
H. R. 2029—799 
‘‘(3) in the case of property placed in service after December 
31, 2020, and before January 1, 2022, 22 percent.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2017. 
SEC. 305. TREATMENT OF TRANSPORTATION COSTS OF INDEPENDENT 
REFINERS. 
(a) IN GENERAL.—Paragraph (3) of section 199(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following 
new subparagraph: 
‘‘(C) 
TRANSPORTATION
COSTS
OF
INDEPENDENT 
REFINERS.— 
‘‘(i) IN GENERAL.—In the case of any taxpayer who 
is in the trade or business of refining crude oil and 
who is not a major integrated oil company (as defined 
in section 167(h)(5)(B), determined without regard to 
clause (iii) thereof) for the taxable year, in computing 
oil related qualified production activities income under 
subsection (d)(9)(B), the amount allocated to domestic 
production gross receipts under paragraph (1)(B) for 
costs related to the transportation of oil shall be 25 
percent of the amount properly allocable under such 
paragraph (determined without regard to this subpara-
graph). 
‘‘(ii) TERMINATION.—Clause (i) shall not apply to 
any taxable year beginning after December 31, 2021.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2015. 
DIVISION Q—PROTECTING AMERICANS 
FROM TAX HIKES ACT OF 2015 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the ‘‘Protecting 
Americans from Tax Hikes Act of 2015’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this division an amendment 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 provision of the Internal Revenue Code of 
1986. 
(c) TABLE OF CONTENTS.—The table of contents for this division 
is as follows: 
DIVISION Q—PROTECTING AMERICANS FROM TAX HIKES ACT OF 2015 
Sec. 1. Short title, etc. 
TITLE I—EXTENDERS 
Subtitle A—Permanent Extensions 
PART 1—TAX RELIEF FOR FAMILIES AND INDIVIDUALS 
Sec. 101. Enhanced child tax credit made permanent. 
Sec. 102. Enhanced American opportunity tax credit made permanent. 
Sec. 103. Enhanced earned income tax credit made permanent. 
Sec. 104. Extension and modification of deduction for certain expenses of elemen-
tary and secondary school teachers. 
Sec. 105. Extension of parity for exclusion from income for employer-provided mass 
transit and parking benefits.
H. R. 2029—800 
Sec. 106. Extension of deduction of State and local general sales taxes. 
PART 2—INCENTIVES FOR CHARITABLE GIVING 
Sec. 111. Extension and modification of special rule for contributions of capital gain 
real property made for conservation purposes. 
Sec. 112. Extension of tax-free distributions from individual retirement plans for 
charitable purposes. 
Sec. 113. Extension and modification of charitable deduction for contributions of 
food inventory. 
Sec. 114. Extension of modification of tax treatment of certain payments to control-
ling exempt organizations. 
Sec. 115. Extension of basis adjustment to stock of S corporations making chari-
table contributions of property. 
PART 3—INCENTIVES FOR GROWTH, JOBS, INVESTMENT, AND INNOVATION 
Sec. 121. Extension and modification of research credit. 
Sec. 122. Extension and modification of employer wage credit for employees who 
are active duty members of the uniformed services. 
Sec. 123. Extension of 15-year straight-line cost recovery for qualified leasehold im-
provements, qualified restaurant buildings and improvements, and 
qualified retail improvements. 
Sec. 124. Extension and modification of increased expensing limitations and treat-
ment of certain real property as section 179 property. 
Sec. 125. Extension of treatment of certain dividends of regulated investment com-
panies. 
Sec. 126. Extension of exclusion of 100 percent of gain on certain small business 
stock. 
Sec. 127. Extension of reduction in S-corporation recognition period for built-in 
gains tax. 
Sec. 128. Extension of subpart F exception for active financing income. 
PART 4—INCENTIVES FOR REAL ESTATE INVESTMENT 
Sec. 131. Extension of minimum low-income housing tax credit rate for non-Feder-
ally subsidized buildings. 
Sec. 132. Extension of military housing allowance exclusion for determining wheth-
er a tenant in certain counties is low-income. 
Sec. 133. Extension of RIC qualified investment entity treatment under FIRPTA. 
Subtitle B—Extensions Through 2019 
Sec. 141. Extension of new markets tax credit. 
Sec. 142. Extension and modification of work opportunity tax credit. 
Sec. 143. Extension and modification of bonus depreciation. 
Sec. 144. Extension of look-thru treatment of payments between related controlled 
foreign corporations under foreign personal holding company rules. 
Subtitle C—Extensions Through 2016 
PART 1—TAX RELIEF FOR FAMILIES AND INDIVIDUALS 
Sec. 151. Extension and modification of exclusion from gross income of discharge of 
qualified principal residence indebtedness. 
Sec. 152. Extension of mortgage insurance premiums treated as qualified residence 
interest. 
Sec. 153. Extension of above-the-line deduction for qualified tuition and related ex-
penses. 
PART 2—INCENTIVES FOR GROWTH, JOBS, INVESTMENT, AND INNOVATION 
Sec. 161. Extension of Indian employment tax credit. 
Sec. 162. Extension and modification of railroad track maintenance credit. 
Sec. 163. Extension of mine rescue team training credit. 
Sec. 164. Extension of qualified zone academy bonds. 
Sec. 165. Extension of classification of certain race horses as 3-year property. 
Sec. 166. Extension of 7-year recovery period for motorsports entertainment com-
plexes. 
Sec. 167. Extension and modification of accelerated depreciation for business prop-
erty on an Indian reservation. 
Sec. 168. Extension of election to expense mine safety equipment. 
Sec. 169. Extension of special expensing rules for certain film and television pro-
ductions; special expensing for live theatrical productions. 
Sec. 170. Extension of deduction allowable with respect to income attributable to 
domestic production activities in Puerto Rico.
H. R. 2029—801 
Sec. 171. Extension and modification of empowerment zone tax incentives. 
Sec. 172. Extension of temporary increase in limit on cover over of rum excise taxes 
to Puerto Rico and the Virgin Islands. 
Sec. 173. Extension of American Samoa economic development credit. 
Sec. 174. Moratorium on medical device excise tax. 
PART 3—INCENTIVES FOR ENERGY PRODUCTION AND CONSERVATION 
Sec. 181. Extension and modification of credit for nonbusiness energy property. 
Sec. 182. Extension of credit for alternative fuel vehicle refueling property. 
Sec. 183. Extension of credit for 2-wheeled plug-in electric vehicles. 
Sec. 184. Extension of second generation biofuel producer credit. 
Sec. 185. Extension of biodiesel and renewable diesel incentives. 
Sec. 186. Extension and modification of production credit for Indian coal facilities. 
Sec. 187. Extension of credits with respect to facilities producing energy from cer-
tain renewable resources. 
Sec. 188. Extension of credit for energy-efficient new homes. 
Sec. 189. Extension of special allowance for second generation biofuel plant prop-
erty. 
Sec. 190. Extension of energy efficient commercial buildings deduction. 
Sec. 191. Extension of special rule for sales or dispositions to implement FERC or 
State electric restructuring policy for qualified electric utilities. 
Sec. 192. Extension of excise tax credits relating to alternative fuels. 
Sec. 193. Extension of credit for new qualified fuel cell motor vehicles. 
TITLE II—PROGRAM INTEGRITY 
Sec. 201. Modification of filing dates of returns and statements relating to em-
ployee wage information and nonemployee compensation to improve 
compliance. 
Sec. 202. Safe harbor for de minimis errors on information returns and payee state-
ments. 
Sec. 203. Requirements for the issuance of ITINs. 
Sec. 204. Prevention of retroactive claims of earned income credit after issuance of 
social security number. 
Sec. 205. Prevention of retroactive claims of child tax credit. 
Sec. 206. Prevention of retroactive claims of American opportunity tax credit. 
Sec. 207. Procedures to reduce improper claims. 
Sec. 208. Restrictions on taxpayers who improperly claimed credits in prior year. 
Sec. 209. Treatment of credits for purposes of certain penalties. 
Sec. 210. Increase the penalty applicable to paid tax preparers who engage in will-
ful or reckless conduct. 
Sec. 211. Employer identification number required for American opportunity tax 
credit. 
Sec. 212. Higher education information reporting only to include qualified tuition 
and related expenses actually paid. 
TITLE III—MISCELLANEOUS PROVISIONS 
Subtitle A—Family Tax Relief 
Sec. 301. Exclusion for amounts received under the Work Colleges Program. 
Sec. 302. Improvements to section 529 accounts. 
Sec. 303. Elimination of residency requirement for qualified ABLE programs. 
Sec. 304. Exclusion for wrongfully incarcerated individuals. 
Sec. 305. Clarification of special rule for certain governmental plans. 
Sec. 306. Rollovers permitted from other retirement plans into simple retirement 
accounts. 
Sec. 307. Technical amendment relating to rollover of certain airline payment 
amounts. 
Sec. 308. Treatment of early retirement distributions for nuclear materials couri-
ers, United States Capitol Police, Supreme Court Police, and diplomatic 
security special agents. 
Sec. 309. Prevention of extension of tax collection period for members of the Armed 
Forces who are hospitalized as a result of combat zone injuries. 
Subtitle B—Real Estate Investment Trusts 
Sec. 311. Restriction on tax-free spinoffs involving REITs. 
Sec. 312. Reduction in percentage limitation on assets of REIT which may be tax-
able REIT subsidiaries. 
Sec. 313. Prohibited transaction safe harbors. 
Sec. 314. Repeal of preferential dividend rule for publicly offered REITs. 
Sec. 315. Authority for alternative remedies to address certain REIT distribution 
failures.
H. R. 2029—802 
Sec. 316. Limitations on designation of dividends by REITs. 
Sec. 317. Debt instruments of publicly offered REITs and mortgages treated as real 
estate assets. 
Sec. 318. Asset and income test clarification regarding ancillary personal property. 
Sec. 319. Hedging provisions. 
Sec. 320. Modification of REIT earnings and profits calculation to avoid duplicate 
taxation. 
Sec. 321. Treatment of certain services provided by taxable REIT subsidiaries. 
Sec. 322. Exception from FIRPTA for certain stock of REITs. 
Sec. 323. Exception for interests held by foreign retirement or pension funds. 
Sec. 324. Increase in rate of withholding of tax on dispositions of United States real 
property interests. 
Sec. 325. Interests in RICs and REITs not excluded from definition of United 
States real property interests. 
Sec. 326. Dividends derived from RICs and REITs ineligible for deduction for 
United States source portion of dividends from certain foreign corpora-
tions. 
Subtitle C—Additional Provisions 
Sec. 331. Deductibility of charitable contributions to agricultural research organiza-
tions. 
Sec. 332. Removal of bond requirements and extending filing periods for certain 
taxpayers with limited excise tax liability. 
Sec. 333. Modifications to alternative tax for certain small insurance companies. 
Sec. 334. Treatment of timber gains. 
Sec. 335. Modification of definition of hard cider. 
Sec. 336. Church plan clarification. 
Subtitle D—Revenue Provisions 
Sec. 341. Updated ASHRAE standards for energy efficient commercial buildings de-
duction. 
Sec. 342. Excise tax credit equivalency for liquified petroleum gas and liquified nat-
ural gas. 
Sec. 343. Exclusion from gross income of certain clean coal power grants to non- 
corporate taxpayers. 
Sec. 344. Clarification of valuation rule for early termination of certain charitable 
remainder unitrusts. 
Sec. 345. Prevention of transfer of certain losses from tax indifferent parties. 
Sec. 346. Treatment of certain persons as employers with respect to motion picture 
projects. 
TITLE IV—TAX ADMINISTRATION 
Subtitle A—Internal Revenue Service Reforms 
Sec. 401. Duty to ensure that Internal Revenue Service employees are familiar 
with and act in accord with certain taxpayer rights. 
Sec. 402. IRS employees prohibited from using personal email accounts for official 
business. 
Sec. 403. Release of information regarding the status of certain investigations. 
Sec. 404. Administrative appeal relating to adverse determinations of tax-exempt 
status of certain organizations. 
Sec. 405. Organizations required to notify Secretary of intent to operate under 
501(c)(4). 
Sec. 406. Declaratory judgments for 501(c)(4) and other exempt organizations. 
Sec. 407. Termination of employment of Internal Revenue Service employees for 
taking official actions for political purposes. 
Sec. 408. Gift tax not to apply to contributions to certain exempt organizations. 
Sec. 409. Extend Internal Revenue Service authority to require truncated Social Se-
curity numbers on Form W–2. 
Sec. 410. Clarification of enrolled agent credentials. 
Sec. 411. Partnership audit rules. 
Subtitle B—United States Tax Court 
PART 1—TAXPAYER ACCESS TO UNITED STATES TAX COURT 
Sec. 421. Filing period for interest abatement cases. 
Sec. 422. Small tax case election for interest abatement cases. 
Sec. 423. Venue for appeal of spousal relief and collection cases. 
Sec. 424. Suspension of running of period for filing petition of spousal relief and 
collection cases. 
Sec. 425. Application of Federal rules of evidence.
H. R. 2029—803 
PART 2—UNITED STATES TAX COURT ADMINISTRATION 
Sec. 431. Judicial conduct and disability procedures. 
Sec. 432. Administration, judicial conference, and fees. 
PART 3—CLARIFICATION RELATING TO UNITED STATES TAX COURT 
Sec. 441. Clarification relating to United States Tax Court. 
TITLE V—TRADE-RELATED PROVISIONS 
Sec. 501. Modification of effective date of provisions relating to tariff classification 
of recreational performance outerwear. 
Sec. 502. Agreement by Asia-Pacific Economic Cooperation members to reduce 
rates of duty on certain environmental goods. 
TITLE VI—BUDGETARY EFFECTS 
Sec. 601. Budgetary effects. 
TITLE I—EXTENDERS 
Subtitle A—Permanent Extensions 
PART 1—TAX RELIEF FOR FAMILIES AND 
INDIVIDUALS 
SEC. 101. ENHANCED CHILD TAX CREDIT MADE PERMANENT. 
(a) IN GENERAL.—Section 24(d)(1)(B)(i) is amended by striking 
‘‘$10,000’’ and inserting ‘‘$3,000’’. 
(b) CONFORMING AMENDMENT.—Section 24(d) is amended by 
striking paragraphs (3) and (4). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 102. ENHANCED AMERICAN OPPORTUNITY TAX CREDIT MADE 
PERMANENT. 
(a) IN GENERAL.—Section 25A(i) is amended by striking ‘‘and 
before 2018’’. 
(b) TREATMENT OF POSSESSIONS.—Section 1004(c)(1) of division 
B of the American Recovery and Reinvestment Tax Act of 2009 
by striking ‘‘and before 2018’’ each place it appears. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 103. ENHANCED EARNED INCOME TAX CREDIT MADE PERMA-
NENT. 
(a) INCREASE IN CREDIT PERCENTAGE FOR 3 OR MORE QUALI-
FYING CHILDREN MADE PERMANENT.—Section 32(b)(1) is amended 
to read as follows: 
‘‘(1) PERCENTAGES.—The credit percentage and the phase-
out percentage shall be determined as follows: 
‘‘In the case of 
an eligible individual with: 
The credit 
percentage is: 
The phaseout 
percentage is: 
1 qualifying child ........................
15.98
2 qualifying children ..................
21.06
3 or more qualifying children ....
21.06
H. R. 2029—804 
‘‘In the case of 
an eligible individual with: 
The credit 
percentage is: 
The phaseout 
percentage is: 
No qualifying children ...............
7.65 
7.65’’. 
(b) REDUCTION OF MARRIAGE PENALTY MADE PERMANENT.— 
(1) IN GENERAL.—Section 32(b)(2)(B) 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 2015, the $5,000 amount 
in clause (i) shall be increased by an amount equal 
to— 
‘‘(I) such dollar amount, multiplied by 
‘‘(II) the cost of living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins determined by substituting 
‘calendar year 2008’ for ‘calendar year 1992’ in 
subparagraph (B) thereof. 
‘‘(iii) ROUNDING.—Subparagraph (A) of subsection 
(j)(2) shall apply after taking into account any increase 
under clause (ii).’’. 
(c) CONFORMING AMENDMENT.—Section 32(b) is amended by 
striking paragraph (3). 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 104. EXTENSION AND MODIFICATION OF DEDUCTION FOR CER-
TAIN 
EXPENSES 
OF 
ELEMENTARY 
AND 
SECONDARY 
SCHOOL TEACHERS. 
(a) DEDUCTION
MADE
PERMANENT.—Section 62(a)(2)(D) is 
amended by striking ‘‘In the case of taxable years beginning during 
2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 
2013, or 2014, the deductions’’ and inserting ‘‘The deductions’’. 
(b) INFLATION ADJUSTMENT.—Section 62(d) is amended by 
adding at the end the following new paragraph: 
‘‘(3) INFLATION ADJUSTMENT.—In the case of any taxable 
year beginning after 2015, the $250 amount in subsection 
(a)(2)(D) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the taxable 
year begins, determined by substituting ‘calendar year 
2014’ for ‘calendar year 1992’ in subparagraph (B) thereof. 
Any increase determined under the preceding sentence shall 
be rounded to the nearest multiple of $50.’’. 
(c) 
PROFESSIONAL
DEVELOPMENT
EXPENSES.—Section 
62(a)(2)(D) is amended— 
(1) by striking ‘‘educator in connection’’ and all that follows 
and inserting ‘‘educator—’’, and 
(2) by inserting at the end the following:
H. R. 2029—807 
‘‘(ii) LIMITATION.—The aggregate amount of such 
contributions for any taxable year which may be taken 
into account under this section shall not exceed— 
‘‘(I) in the case of any taxpayer other than 
a C corporation, 15 percent of the taxpayer’s aggre-
gate net income for such taxable year from all 
trades or businesses from which such contributions 
were made for such year, computed without regard 
to this section, and 
‘‘(II) in the case of a C corporation, 15 percent 
of taxable income (as defined in subsection 
(b)(2)(D)). 
‘‘(iii) RULES RELATED TO LIMITATION.— 
‘‘(I) CARRYOVER.—If such aggregate amount 
exceeds the limitation imposed under clause (ii), 
such excess shall be treated (in a manner con-
sistent with the rules of subsection (d)) as a chari-
table contribution described in clause (i) in each 
of the 5 succeeding taxable years in order of time. 
‘‘(II) COORDINATION WITH OVERALL CORPORATE 
LIMITATION.—In the case of any charitable con-
tribution which is allowable after the application 
of clause (ii)(II), subsection (b)(2)(A) shall not apply 
to such contribution, but the limitation imposed 
by such subsection shall be reduced (but not below 
zero) by the aggregate amount of such contribu-
tions. For purposes of subsection (b)(2)(B), such 
contributions shall be treated as allowable under 
subsection (b)(2)(A). 
‘‘(iv) DETERMINATION OF BASIS FOR CERTAIN TAX-
PAYERS.—If a taxpayer— 
‘‘(I) does not account for inventories under sec-
tion 471, and 
‘‘(II) is not required to capitalize indirect costs 
under section 263A, 
the taxpayer may elect, solely for purposes of subpara-
graph (B), to treat the basis of any apparently whole-
some food as being equal to 25 percent of the fair 
market value of such food. 
‘‘(v) DETERMINATION OF FAIR MARKET VALUE.—In 
the case of any such contribution of apparently whole-
some food which cannot or will not be sold solely by 
reason of internal standards of the taxpayer, lack of 
market, or similar circumstances, or by reason of being 
produced by the taxpayer exclusively for the purposes 
of transferring the food to an organization described 
in subparagraph (A), the fair market value of such 
contribution shall be determined— 
‘‘(I) without regard to such internal standards, 
such lack of market, such circumstances, or such 
exclusive purpose, and 
‘‘(II) by taking into account the price at which 
the same or substantially the same food items 
(as to both type and quality) are sold by the tax-
payer at the time of the contribution (or, if not 
so sold at such time, in the recent past).’’ 
(c) EFFECTIVE DATES.—
H. R. 2029—808 
(1) EXTENSION.—The amendment made by subsection (a) 
shall apply to contributions made after December 31, 2014. 
(2) MODIFICATIONS.—The amendments made by subsection 
(b) shall apply to taxable years beginning after December 31, 
2015. 
SEC. 114. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CER-
TAIN PAYMENTS TO CONTROLLING EXEMPT ORGANIZA-
TIONS. 
(a) IN GENERAL.—Section 512(b)(13)(E) is amended by striking 
clause (iv). 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to payments received or accrued after December 31, 
2014. 
SEC. 115. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S COR-
PORATIONS MAKING CHARITABLE CONTRIBUTIONS OF 
PROPERTY. 
(a) IN GENERAL.—Section 1367(a)(2) is amended by striking 
the last sentence. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to contributions made in taxable years beginning after 
December 31, 2014. 
PART 3—INCENTIVES FOR GROWTH, JOBS, 
INVESTMENT, AND INNOVATION 
SEC. 121. EXTENSION AND MODIFICATION OF RESEARCH CREDIT. 
(a) MADE PERMANENT.— 
(1) IN GENERAL.—Section 41 is amended by striking sub-
section (h). 
(2) 
CONFORMING
AMENDMENT.—Section 
45C(b)(1) 
is 
amended by striking subparagraph (D). 
(b) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX IN 
CASE OF ELIGIBLE SMALL BUSINESS.—Section 38(c)(4)(B) is amended 
by redesignating clauses (ii) through (ix) as clauses (iii) through 
(x), respectively, and by inserting after clause (i) the following 
new clause: 
‘‘(ii) the credit determined under section 41 for 
the taxable year with respect to an eligible small busi-
ness (as defined in paragraph (5)(C), after application 
of rules similar to the rules of paragraph (5)(D)),’’. 
(c) TREATMENT OF RESEARCH CREDIT FOR CERTAIN STARTUP 
COMPANIES.— 
(1) IN GENERAL.—Section 41, as amended by subsection 
(a), is amended by adding at the end the following new sub-
section: 
‘‘(h) 
TREATMENT
OF
CREDIT
FOR
QUALIFIED
SMALL 
BUSINESSES.— 
‘‘(1) IN GENERAL.—At the election of a qualified small busi-
ness for any taxable year, section 3111(f) shall apply to the 
payroll tax credit portion of the credit otherwise determined 
under subsection (a) for the taxable year and such portion 
shall not be treated (other than for purposes of section 280C) 
as a credit determined under subsection (a).
H. R. 2029—809 
‘‘(2) PAYROLL TAX CREDIT PORTION.—For purposes of this 
subsection, the payroll tax credit portion of the credit deter-
mined under subsection (a) with respect to any qualified small 
business for any taxable year is the least of— 
‘‘(A) the amount specified in the election made under 
this subsection, 
‘‘(B) the credit determined under subsection (a) for 
the taxable year (determined before the application of this 
subsection), or 
‘‘(C) in the case of a qualified small business other 
than a partnership or S corporation, the amount of the 
business credit carryforward under section 39 carried from 
the taxable year (determined before the application of this 
subsection to the taxable year). 
‘‘(3) QUALIFIED SMALL BUSINESS.—For purposes of this sub-
section— 
‘‘(A) IN GENERAL.—The term ‘qualified small business’ 
means, with respect to any taxable year— 
‘‘(i) a corporation or partnership, if— 
‘‘(I) the gross receipts (as determined under 
the rules of section 448(c)(3), without regard to 
subparagraph (A) thereof) of such entity for the 
taxable year is less than $5,000,000, and 
‘‘(II) such entity did not have gross receipts 
(as so determined) for any taxable year preceding 
the 5-taxable-year period ending with such taxable 
year, and 
‘‘(ii) any person (other than a corporation or part-
nership) who meets the requirements of subclauses 
(I) and (II) of clause (i), determined— 
‘‘(I) by substituting ‘person’ for ‘entity’ each 
place it appears, and 
‘‘(II) by only taking into account the aggregate 
gross receipts received by such person in carrying 
on all trades or businesses of such person. 
‘‘(B) LIMITATION.—Such term shall not include an 
organization which is exempt from taxation under section 
501. 
‘‘(4) ELECTION.— 
‘‘(A) IN GENERAL.—Any election under this subsection 
for any taxable year— 
‘‘(i) shall specify the amount of the credit to which 
such election applies, 
‘‘(ii) shall be made on or before the due date 
(including extensions) of— 
‘‘(I) in the case of a qualified small business 
which is a partnership, the return required to 
be filed under section 6031, 
‘‘(II) in the case of a qualified small business 
which is an S corporation, the return required 
to be filed under section 6037, and 
‘‘(III) in the case of any other qualified small 
business, the return of tax for the taxable year, 
and 
‘‘(iii) may be revoked only with the consent of 
the Secretary. 
‘‘(B) LIMITATIONS.—
H. R. 2029—810 
‘‘(i) AMOUNT.—The amount specified in any elec-
tion made under this subsection shall not exceed 
$250,000. 
‘‘(ii) NUMBER OF TAXABLE YEARS.—A person may 
not make an election under this subsection if such 
person (or any other person treated as a single tax-
payer with such person under paragraph (5)(A)) has 
made an election under this subsection for 5 or more 
preceding taxable years. 
‘‘(C) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORA-
TIONS.—In the case of a qualified small business which 
is a partnership or S corporation, the election made under 
this subsection shall be made at the entity level. 
‘‘(5) AGGREGATION RULES.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), all persons or entities treated as a single taxpayer 
under subsection (f)(1) shall be treated as a single taxpayer 
for purposes of this subsection. 
‘‘(B) SPECIAL RULES.—For purposes of this subsection 
and section 3111(f)— 
‘‘(i) each of the persons treated as a single taxpayer 
under subparagraph (A) may separately make the elec-
tion under paragraph (1) for any taxable year, and 
‘‘(ii) the $250,000 amount under paragraph (4)(B)(i) 
shall be allocated among all persons treated as a single 
taxpayer under subparagraph (A) in the same manner 
as under subparagraph (A)(ii) or (B)(ii) of subsection 
(f)(1), whichever is applicable. 
‘‘(6) REGULATIONS.—The Secretary shall prescribe such 
regulations as may be necessary to carry out the purposes 
of this subsection, including— 
‘‘(A) regulations to prevent the avoidance of the pur-
poses of the limitations and aggregation rules under this 
subsection through the use of successor companies or other 
means, 
‘‘(B) regulations to minimize compliance and record- 
keeping burdens under this subsection, and 
‘‘(C) regulations for recapturing the benefit of credits 
determined under section 3111(f) in cases where there is 
a subsequent adjustment to the payroll tax credit portion 
of the credit determined under subsection (a), including 
requiring amended income tax returns in the cases where 
there is such an adjustment.’’. 
(2) CREDIT ALLOWED AGAINST FICA TAXES.—Section 3111 
is amended by adding at the end the following new subsection: 
‘‘(f) CREDIT FOR RESEARCH EXPENDITURES OF QUALIFIED SMALL 
BUSINESSES.— 
‘‘(1) IN GENERAL.—In the case of a taxpayer who has made 
an election under section 41(h) for a taxable year, there shall 
be allowed as a credit against the tax imposed by subsection 
(a) for the first calendar quarter which begins after the date 
on which the taxpayer files the return specified in section 
41(h)(4)(A)(ii) an amount equal to the payroll tax credit portion 
determined under section 41(h)(2). 
‘‘(2) LIMITATION.—The credit allowed by paragraph (1) shall 
not exceed the tax imposed by subsection (a) for any calendar
H. R. 2029—811 
quarter on the wages paid with respect to the employment 
of all individuals in the employ of the employer. 
‘‘(3) CARRYOVER OF UNUSED CREDIT.—If the amount of the 
credit under paragraph (1) exceeds the limitation of paragraph 
(2) for any calendar quarter, such excess shall be carried to 
the succeeding calendar quarter and allowed as a credit under 
paragraph (1) for such quarter. 
‘‘(4) DEDUCTION ALLOWED FOR CREDITED AMOUNTS.—The 
credit allowed under paragraph (1) shall not be taken into 
account for purposes of determining the amount of any deduc-
tion allowed under chapter 1 for taxes imposed under subsection 
(a).’’. 
(d) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendments made by subsection (a) 
shall apply to shall apply to amounts paid or incurred after 
December 31, 2014. 
(2) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX 
IN CASE OF ELIGIBLE SMALL BUSINESS.—The amendments made 
by subsection (b) shall apply to credits determined for taxable 
years beginning after December 31, 2015. 
(3) TREATMENT OF RESEARCH CREDIT FOR CERTAIN STARTUP 
COMPANIES.—The amendments made by subsection (c) shall 
apply to taxable years beginning after December 31, 2015. 
SEC. 122. EXTENSION AND MODIFICATION OF EMPLOYER WAGE 
CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY MEM-
BERS OF THE UNIFORMED SERVICES. 
(a) IN GENERAL.—Section 45P is amended by striking subsection 
(f). 
(b) APPLICABILITY TO ALL EMPLOYERS.— 
(1) IN GENERAL.—Section 45P(a) is amended by striking 
‘‘, in the case of an eligible small business employer’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45P(b)(3) 
is 
amended to read as follows: 
‘‘(3) CONTROLLED GROUPS.—All persons treated as a single 
employer under subsection (b), (c), (m), or (o) of section 414 
shall be treated as a single employer.’’. 
(c) EFFECTIVE DATE.— 
(1) EXTENSION.—The amendment made by subsection (a) 
shall apply to payments made after December 31, 2014. 
(2) MODIFICATION.—The amendments made by subsection 
(b) shall apply to taxable years beginning after December 31, 
2015. 
SEC. 123. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY 
FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED 
RESTAURANT 
BUILDINGS 
AND 
IMPROVEMENTS, 
AND 
QUALIFIED RETAIL IMPROVEMENTS. 
(a) QUALIFIED LEASEHOLD IMPROVEMENT PROPERTY AND QUALI-
FIED
RESTAURANT
PROPERTY.—Clauses (iv) and (v) of section 
168(e)(3)(E) are each amended by striking ‘‘placed in service before 
January 1, 2015’’. 
(b) 
QUALIFIED
RETAIL
IMPROVEMENT
PROPERTY.—Section 
168(e)(3)(E)(ix) is amended by striking ‘‘placed in service after 
December 31, 2008, and before January 1, 2015’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after December 31, 2014.
H. R. 2029—817 
‘‘(A) IN GENERAL.—The term ‘qualified property’ means 
property— 
‘‘(i)(I) to which this section applies which has a 
recovery period of 20 years or less, 
‘‘(II) which is computer software (as defined in 
section 167(f)(1)(B)) for which a deduction is allowable 
under section 167(a) without regard to this subsection, 
‘‘(III) which is water utility property, or 
‘‘(IV) which is qualified improvement property, 
‘‘(ii) the original use of which commences with 
the taxpayer, and 
‘‘(iii) which is placed in service by the taxpayer 
before January 1, 2020. 
‘‘(B) CERTAIN PROPERTY HAVING LONGER PRODUCTION 
PERIODS TREATED AS QUALIFIED PROPERTY.— 
‘‘(i) IN
GENERAL.—The term ‘qualified property’ 
includes any property if such property— 
‘‘(I) meets the requirements of clauses (i) and 
(ii) of subparagraph (A), 
‘‘(II) is placed in service by the taxpayer before 
January 1, 2021, 
‘‘(III) is acquired by the taxpayer (or acquired 
pursuant to a written contract entered into) before 
January 1, 2020, 
‘‘(IV) has a recovery period of at least 10 years 
or is transportation property, 
‘‘(V) is subject to section 263A, and 
‘‘(VI) meets the requirements of clause (iii) 
of section 263A(f)(1)(B) (determined as if such 
clause also applies to property which has a long 
useful life (within the meaning of section 263A(f))). 
‘‘(ii) ONLY PRE-JANUARY 1, 2020 BASIS ELIGIBLE FOR 
ADDITIONAL ALLOWANCE.—In the case of property which 
is qualified property solely by reason of clause (i), 
paragraph (1) shall apply only to the extent of the 
adjusted basis thereof attributable to manufacture, 
construction, or production before January 1, 2020. 
‘‘(iii) TRANSPORTATION PROPERTY.—For purposes of 
this subparagraph, the term ‘transportation property’ 
means tangible personal property used in the trade 
or business of transporting persons or property. 
‘‘(iv) 
APPLICATION
OF
SUBPARAGRAPH.—This 
subparagraph shall not apply to any property which 
is described in subparagraph (C). 
‘‘(C) CERTAIN AIRCRAFT.—The term ‘qualified property’ 
includes property— 
‘‘(i) which meets the requirements of subparagraph 
(A)(ii) and subclauses (II) and (III) of subparagraph 
(B)(i), 
‘‘(ii) which is an aircraft which is not a transpor-
tation property (as defined in subparagraph (B)(iii)) 
other than for agricultural or firefighting purposes, 
‘‘(iii) which is purchased and on which such pur-
chaser, at the time of the contract for purchase, has 
made a nonrefundable deposit of the lesser of— 
‘‘(I) 10 percent of the cost, or 
‘‘(II) $100,000, and
H. R. 2029—818 
‘‘(iv) which has— 
‘‘(I) an estimated production period exceeding 
4 months, and 
‘‘(II) a cost exceeding $200,000. 
‘‘(D) EXCEPTION FOR ALTERNATIVE DEPRECIATION PROP-
ERTY.—The term ‘qualified property’ shall not include any 
property to which the alternative depreciation system 
under subsection (g) applies, determined— 
‘‘(i) without regard to paragraph (7) of subsection 
(g) (relating to election to have system apply), and 
‘‘(ii) after application of section 280F(b) (relating 
to listed property with limited business use). 
‘‘(E) SPECIAL RULES.— 
‘‘(i) SELF-CONSTRUCTED PROPERTY.—In the case of 
a taxpayer manufacturing, constructing, or producing 
property for the taxpayer’s own use, the requirements 
of subclause (III) of subparagraph (B)(i) shall be treated 
as met if the taxpayer begins manufacturing, con-
structing, or producing the property before January 
1, 2020. 
‘‘(ii) SALE-LEASEBACKS.—For purposes of clause (iii) 
and subparagraph (A)(ii), if property is— 
‘‘(I) originally placed in service by a person, 
and 
‘‘(II) sold and leased back by such person 
within 3 months after the date such property was 
originally placed in service, 
such property shall be treated as originally placed 
in service not earlier than the date on which such 
property is used under the leaseback referred to in 
subclause (II). 
‘‘(iii) SYNDICATION.—For purposes of subparagraph 
(A)(ii), if— 
‘‘(I) property is originally placed in service by 
the lessor of such property, 
‘‘(II) such property is sold by such lessor or 
any subsequent purchaser within 3 months after 
the date such property was originally placed in 
service (or, in the case of multiple units of property 
subject to the same lease, within 3 months after 
the date the final unit is placed in service, so 
long as the period between the time the first unit 
is placed in service and the time the last unit 
is placed in service does not exceed 12 months), 
and 
‘‘(III) the user of such property after the last 
sale during such 3-month period remains the same 
as when such property was originally placed in 
service, 
such property shall be treated as originally placed 
in service not earlier than the date of such last sale. 
‘‘(F) COORDINATION WITH SECTION 280F.—For purposes 
of section 280F— 
‘‘(i) AUTOMOBILES.—In the case of a passenger 
automobile (as defined in section 280F(d)(5)) which 
is qualified property, the Secretary shall increase the 
limitation under section 280F(a)(1)(A)(i) by $8,000.
H. R. 2029—819 
‘‘(ii) LISTED PROPERTY.—The deduction allowable 
under paragraph (1) shall be taken into account in 
computing any recapture amount under section 
280F(b)(2). 
‘‘(iii) PHASE DOWN.—In the case of a passenger 
automobile placed in service by the taxpayer after 
December 31, 2017, clause (i) shall be applied by sub-
stituting for ‘$8,000’— 
‘‘(I) in the case of an automobile placed in 
service during 2018, $6,400, and 
‘‘(II) in the case of an automobile placed in 
service during 2019, $4,800. 
‘‘(G) DEDUCTION
ALLOWED
IN
COMPUTING
MINIMUM 
TAX.—For purposes of determining alternative minimum 
taxable income under section 55, the deduction under sec-
tion 167 for qualified property shall be determined without 
regard to any adjustment under section 56.’’. 
(2) QUALIFIED IMPROVEMENT PROPERTY.—Section 168(k)(3) 
is amended to read as follows: 
‘‘(3) QUALIFIED IMPROVEMENT PROPERTY.—For purposes of 
this subsection— 
‘‘(A) IN GENERAL.—The term ‘qualified improvement 
property’ means any improvement to an interior portion 
of a building which is nonresidential real property if such 
improvement is placed in service after the date such 
building was first placed in service. 
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
INCLUDED.—Such 
term shall not include any improvement for which the 
expenditure is attributable to— 
‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, or 
‘‘(iii) the internal structural framework of the 
building.’’. 
(3) EXPANSION OF ELECTION TO ACCELERATE AMT CREDITS 
IN
LIEU
OF
BONUS
DEPRECIATION.—Section 168(k)(4), as 
amended by subsection (a), is amended to read as follows: 
‘‘(4) ELECTION TO ACCELERATE AMT CREDITS IN LIEU OF 
BONUS DEPRECIATION.— 
‘‘(A) IN GENERAL.—If a corporation elects to have this 
paragraph apply for any taxable year— 
‘‘(i) paragraphs (1) and (2)(F) shall not apply to 
any qualified property placed in service during such 
taxable year, 
‘‘(ii) the applicable depreciation method used under 
this section with respect to such property shall be 
the straight line method, and 
‘‘(iii) the limitation imposed by section 53(c) for 
such taxable year shall be increased by the bonus 
depreciation amount which is determined for such tax-
able year under subparagraph (B). 
‘‘(B) BONUS DEPRECIATION AMOUNT.—For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The bonus depreciation amount 
for any taxable year is an amount equal to 20 percent 
of the excess (if any) of— 
‘‘(I) the aggregate amount of depreciation 
which would be allowed under this section for
H. R. 2029—820 
qualified property placed in service by the taxpayer 
during such taxable year if paragraph (1) applied 
to all such property (and, in the case of any such 
property which is a passenger automobile (as 
defined in section 280F(d)(5)), if paragraph (2)(F) 
applied to such automobile), over 
‘‘(II) the aggregate amount of depreciation 
which would be allowed under this section for 
qualified property placed in service by the taxpayer 
during such taxable year if paragraphs (1) and 
(2)(F) did not apply to any such property. 
The aggregate amounts determined under subclauses 
(I) and (II) shall be determined without regard to any 
election made under subparagraph (A) or subsection 
(b)(2)(D), (b)(3)(D), or (g)(7). 
‘‘(ii) LIMITATION.—The bonus depreciation amount 
for any taxable year shall not exceed the lesser of— 
‘‘(I) 50 percent of the minimum tax credit 
under section 53(b) for the first taxable year ending 
after December 31, 2015, or 
‘‘(II) the minimum tax credit under section 
53(b) for such taxable year determined by taking 
into account only the adjusted net minimum tax 
for taxable years ending before January 1, 2016 
(determined by treating credits as allowed on a 
first-in, first-out basis). 
‘‘(iii) AGGREGATION RULE.—All corporations which 
are treated as a single employer under section 52(a) 
shall be treated— 
‘‘(I) as 1 taxpayer for purposes of this para-
graph, and 
‘‘(II) as having elected the application of this 
paragraph if any such corporation so elects. 
‘‘(C) CREDIT
REFUNDABLE.—For purposes of section 
6401(b), the aggregate increase in the credits allowable 
under part IV of subchapter A for any taxable year 
resulting from the application of this paragraph shall be 
treated as allowed under subpart C of such part (and 
not any other subpart). 
‘‘(D) OTHER RULES.— 
‘‘(i) ELECTION.—Any election under this paragraph 
may be revoked only with the consent of the Secretary. 
‘‘(ii) PARTNERSHIPS WITH ELECTING PARTNERS.—In 
the case of a corporation which is a partner in a 
partnership and which makes an election under 
subparagraph (A) for the taxable year, for purposes 
of determining such corporation’s distributive share 
of partnership items under section 702 for such taxable 
year— 
‘‘(I) paragraphs (1) and (2)(F) shall not apply 
to any qualified property placed in service during 
such taxable year, and 
‘‘(II) the applicable depreciation method used 
under this section with respect to such property 
shall be the straight line method. 
‘‘(iii) CERTAIN
PARTNERSHIPS.—In the case of a 
partnership in which more than 50 percent of the
H. R. 2029—821 
capital and profits interests are owned (directly or 
indirectly) at all times during the taxable year by 
1 corporation (or by corporations treated as 1 taxpayer 
under subparagraph (B)(iii)), each partner shall com-
pute its bonus depreciation amount under clause (i) 
of subparagraph (B) by taking into account its distribu-
tive share of the amounts determined by the partner-
ship under subclauses (I) and (II) of such clause for 
the taxable year of the partnership ending with or 
within the taxable year of the partner.’’. 
(4) SPECIAL RULES FOR CERTAIN PLANTS BEARING FRUITS 
AND NUTS.—Section 168(k) is amended— 
(A) by striking paragraph (5), and 
(B) by inserting after paragraph (4) the following new 
paragraph: 
‘‘(5) SPECIAL RULES FOR CERTAIN PLANTS BEARING FRUITS 
AND NUTS.— 
‘‘(A) IN GENERAL.—In the case of any specified plant 
which is planted before January 1, 2020, or is grafted 
before such date to a plant that has already been planted, 
by the taxpayer in the ordinary course of the taxpayer’s 
farming business (as defined in section 263A(e)(4)) during 
a taxable year for which the taxpayer has elected the 
application of this paragraph— 
‘‘(i) a depreciation deduction equal to 50 percent 
of the adjusted basis of such specified plant shall be 
allowed under section 167(a) for the taxable year in 
which such specified plant is so planted or grafted, 
and 
‘‘(ii) the adjusted basis of such specified plant shall 
be reduced by the amount of such deduction. 
‘‘(B) SPECIFIED PLANT.—For purposes of this paragraph, 
the term ‘specified plant’ means— 
‘‘(i) any tree or vine which bears fruits or nuts, 
and 
‘‘(ii) any other plant which will have more than 
one yield of fruits or nuts and which generally has 
a pre-productive period of more than 2 years from 
the time of planting or grafting to the time at which 
such plant begins bearing fruits or nuts. 
Such term shall not include any property which is planted 
or grafted outside of the United States. 
‘‘(C) ELECTION REVOCABLE ONLY WITH CONSENT.—An 
election under this paragraph may be revoked only with 
the consent of the Secretary. 
‘‘(D) ADDITIONAL DEPRECIATION MAY BE CLAIMED ONLY 
ONCE.—If this paragraph applies to any specified plant, 
such specified plant shall not be treated as qualified prop-
erty in the taxable year in which placed in service. 
‘‘(E) DEDUCTION
ALLOWED
IN
COMPUTING
MINIMUM 
TAX.—Rules similar to the rules of paragraph (2)(G) shall 
apply for purposes of this paragraph. 
‘‘(F) PHASE DOWN.—In the case of a specified plant 
which is planted after December 31, 2017 (or is grafted 
to a plant that has already been planted before such date), 
subparagraph (A)(i) shall be applied by substituting for 
‘50 percent’—
H. R. 2029—828 
‘‘(ii) Subsequent additional stagings or touring of 
such production which are produced by the same pro-
ducer as the initial staging. 
‘‘(D) SEASONAL PRODUCTIONS.— 
‘‘(i) IN
GENERAL.—In the case of a live staged 
production not described in subparagraph (B) which 
is produced or presented by a taxable entity for not 
more than 10 weeks of the taxable year, subparagraph 
(A) shall be applied by substituting ‘6,500’ for ‘3,000’. 
‘‘(ii) SHORT
TAXABLE
YEARS.—For purposes of 
clause (i), in the case of any taxable year of less than 
12 months, the number of weeks for which a production 
is produced or presented shall be annualized by multi-
plying the number of weeks the production is produced 
or presented during such taxable year by 12 and 
dividing the result by the number of months in such 
taxable year. 
‘‘(E) EXCEPTION.—A production is not described in this 
paragraph if such production includes or consists of any 
performance of conduct described in section 2257(h)(1) of 
title 18, United States Code.’’. 
(d) EFFECTIVE DATE.— 
(1) EXTENSION.—The amendment made by subsection (a) 
shall apply to productions commencing after December 31, 2014. 
(2) MODIFICATIONS.— 
(A) IN
GENERAL.—The amendments made by sub-
sections (b) and (c) shall apply to productions commencing 
after December 31, 2015. 
(B) COMMENCEMENT.—For purposes of subparagraph 
(A), the date on which a qualified live theatrical production 
commences is the date of the first public performance of 
such production for a paying audience. 
SEC. 170. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO 
INCOME 
ATTRIBUTABLE 
TO 
DOMESTIC 
PRODUCTION 
ACTIVITIES IN PUERTO RICO. 
(a) IN GENERAL.—Section 199(d)(8)(C) is amended— 
(1) by striking ‘‘first 9 taxable years’’ and inserting ‘‘first 
11 taxable years’’, and 
(2) by striking ‘‘January 1, 2015’’ and inserting ‘‘January 
1, 2017’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2014. 
SEC. 171. EXTENSION AND MODIFICATION OF EMPOWERMENT ZONE 
TAX INCENTIVES. 
(a) IN GENERAL.— 
(1) EXTENSION.—Section 1391(d)(1)(A)(i) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(2) TREATMENT OF CERTAIN TERMINATION DATES SPECIFIED 
IN NOMINATIONS.—In the case of a designation of an empower-
ment 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 Rev-
enue Code of 1986 (as in effect before the enactment of this 
Act), subparagraph (B) of such section shall not apply with 
respect to such designation if, after the date of the enactment
H. R. 2029—829 
of this section, the entity which made such nomination amends 
the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary’s 
designee) may provide. 
(b) MODIFICATION.—Section 1394(b)(3)(B)(i) is amended— 
(1) by striking ‘‘References’’ and inserting the following: 
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), references’’, and 
(2) by adding at the end the following new subclause: 
‘‘(II) SPECIAL RULE FOR EMPLOYEE RESIDENCE 
TEST.—For purposes of subsection (b)(6) and (c)(5) 
of section 1397C, an employee shall be treated 
as a resident of an empowerment zone if such 
employee is a resident of an empowerment zone, 
an enterprise community, or a qualified low-income 
community within an applicable nominating juris-
diction.’’. 
(c) DEFINITIONS.— 
(1) QUALIFIED LOW-INCOME COMMUNITY.—Section 1394(b)(3) 
is amended by redesignating subparagraphs (C) and (D) as 
subparagraphs (D) and (E), respectively, and by inserting after 
subparagraph (B) the following new subparagraph: 
‘‘(C) QUALIFIED
LOW-INCOME
COMMUNITY.—For pur-
poses of subparagraph (B)— 
‘‘(i) IN GENERAL.—The term ‘qualified low-income 
community’ means any population census tract if— 
‘‘(I) the poverty rate for such tract is at least 
20 percent, or 
‘‘(II) the median family income for such tract 
does not exceed 80 percent of statewide median 
family income (or, in the case of a tract located 
within a metropolitan area, metropolitan area 
median family income if greater). 
Subclause (II) shall be applied using possessionwide 
median family income in the case of census tracts 
located within a possession of the United States. 
‘‘(ii) TARGETED POPULATIONS.—The Secretary shall 
prescribe regulations under which 1 or more targeted 
populations (within the meaning of section 103(20) of 
the Riegle Community Development and Regulatory 
Improvement Act of 1994) may be treated as qualified 
low-income communities. 
‘‘(iii) AREAS NOT WITHIN CENSUS TRACTS.—In the 
case of an area which is not tracted for population 
census tracts, the equivalent county divisions (as 
defined by the Bureau of the Census for purposes 
of defining poverty areas) shall be used for purposes 
of determining poverty rates and median family 
income. 
‘‘(iv) MODIFICATION OF INCOME REQUIREMENT FOR 
CENSUS TRACTS WITHIN HIGH MIGRATION RURAL COUN-
TIES.— 
‘‘(I) IN GENERAL.—In the case of a population 
census tract located within a high migration rural 
county, clause (i)(II) shall be applied to areas not 
located within a metropolitan area by substituting 
‘85 percent’ for ‘80 percent’.
H. R. 2029—830 
‘‘(II) HIGH
MIGRATION
RURAL
COUNTY.—For 
purposes of this clause, the term ‘high migration 
rural county’ means any county which, during the 
20-year period ending with the year in which the 
most recent census was conducted, has a net out- 
migration of inhabitants from the county of at 
least 10 percent of the population of the county 
at the beginning of such period.’’. 
(2) 
APPLICABLE
NOMINATING
JURISDICTION.—Section 
1394(b)(3)(D), as redesignated by paragraph (1), is amended 
by adding at the end the following new clause: 
‘‘(iii) APPLICABLE NOMINATING JURISDICTION.—The 
term ‘applicable nominating jurisdiction’ means, with 
respect to any empowerment zone or enterprise 
community, any local government that nominated such 
community for designation under section 1391.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 1394(b)(3)(B)(iii) is amended by striking ‘‘or 
an enterprise community’’ and inserting ‘‘, an enterprise 
community, or a qualified low-income community within an 
applicable nominating jurisdiction’’. 
(2) Section 1394(b)(3)(D), as redesignated by subsection 
(c)(1), is amended by striking ‘‘DEFINITIONS’’ and inserting 
‘‘OTHER DEFINITIONS’’. 
(e) EFFECTIVE DATES.— 
(1) EXTENSIONS.—The amendment made by subsection (a) 
shall apply to taxable years beginning after December 31, 2014. 
(2) MODIFICATIONS.—The amendments made by subsections 
(b), (c), and (d) shall apply to bonds issued after December 
31, 2015. 
SEC. 172. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER 
OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
VIRGIN ISLANDS. 
(a) IN GENERAL.—Section 7652(f)(1) is amended by striking 
‘‘January 1, 2015’’ and inserting ‘‘January 1, 2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to distilled spirits brought into the United States after 
December 31, 2014. 
SEC. 173. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT 
CREDIT. 
(a) IN GENERAL.—Section 119(d) of division A of the Tax Relief 
and Health Care Act of 2006 is amended— 
(1) by striking ‘‘January 1, 2015’’ each place it appears 
and inserting ‘‘January 1, 2017’’, 
(2) by striking ‘‘first 9 taxable years’’ in paragraph (1) 
and inserting ‘‘first 11 taxable years’’, and 
(3) by striking ‘‘first 3 taxable years’’ in paragraph (2) 
and inserting ‘‘first 5 taxable years’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2014. 
SEC. 174. MORATORIUM ON MEDICAL DEVICE EXCISE TAX. 
(a) IN GENERAL.—Section 4191 is amended by adding at the 
end the following new subsection:
H. R. 2029—831 
‘‘(c) MORATORIUM.—The tax imposed under subsection (a) shall 
not apply to sales during the period beginning on January 1, 2016, 
and ending on December 31, 2017.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to sales after December 31, 2015. 
PART 3—INCENTIVES FOR ENERGY 
PRODUCTION AND CONSERVATION 
SEC. 181. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSI-
NESS ENERGY PROPERTY. 
(a) EXTENSION.—Section 25C(g)(2) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 2016’’. 
(b) UPDATED ENERGY STAR REQUIREMENTS.— 
(1) IN GENERAL.—Section 25C(c)(1) is amended by striking 
‘‘which meets’’ and all that follows through ‘‘requirements)’’. 
(2) ENERGY EFFICIENT BUILDING ENVELOPE COMPONENT.— 
Section 25C(c) is amended by redesignating paragraphs (2) 
and (3) as paragraphs (3) and (4), respectively, and by inserting 
after paragraph (1) the following new paragraph: 
‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE COMPONENT.— 
The term ‘energy efficient building envelope component’ means 
a building envelope component which meets— 
‘‘(A) applicable Energy Star program requirements, in 
the case of a roof or roof products, 
‘‘(B) version 6.0 Energy Star program requirements, 
in the case of an exterior window, a skylight, or an exterior 
door, and 
‘‘(C) the prescriptive criteria for such component estab-
lished by the 2009 International Energy Conservation Code, 
as such Code (including supplements) is in effect on the 
date of the enactment of the American Recovery and 
Reinvestment Tax Act of 2009, in the case of any other 
component.’’. 
(c) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendment made by subsection (a) 
shall apply to property placed in service after December 31, 
2014. 
(2) MODIFICATION.—The amendments made by subsection 
(b) shall apply to property placed in service after December 
31, 2015. 
SEC. 182. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
REFUELING PROPERTY. 
(a) IN
GENERAL.—Section 30C(g) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2014. 
SEC. 183. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN ELECTRIC 
VEHICLES. 
(a) IN GENERAL.—Section 30D(g)(3)(E) is amended by striking 
‘‘acquired’’ and all that follows and inserting the following: 
‘‘acquired— 
‘‘(i) after December 31, 2011, and before January 
1, 2014, or
H. R. 2029—832 
‘‘(ii) in the case of a vehicle that has 2 wheels, 
after December 31, 2014, and before January 1, 2017.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to vehicles acquired after December 31, 2014. 
SEC. 184. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER 
CREDIT. 
(a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended by striking 
‘‘January 1, 2015’’ and inserting ‘‘January 1, 2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this subsection 
shall apply to qualified second generation biofuel production after 
December 31, 2014. 
SEC. 185. EXTENSION OF BIODIESEL AND RENEWABLE DIESEL INCEN-
TIVES. 
(a) INCOME TAX CREDIT.— 
(1) IN GENERAL.—Subsection (g) of section 40A is amended 
by striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to fuel sold or used after December 31, 
2014. 
(b) EXCISE TAX INCENTIVES.— 
(1) IN GENERAL.—Section 6426(c)(6) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 2016’’. 
(2) PAYMENTS.—Section 6427(e)(6)(B) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to fuel sold or used after December 31, 
2014. 
(4) SPECIAL RULE FOR 2015.—Notwithstanding any other 
provision of law, in the case of any biodiesel mixture credit 
properly determined under section 6426(c) of the Internal Rev-
enue Code of 1986 for the period beginning on January 1, 
2015, and ending on December 31, 2015, such credit shall 
be allowed, and any refund or payment attributable to such 
credit (including any payment under section 6427(e) of such 
Code) shall be made, only in such manner as the Secretary 
of the Treasury (or the Secretary’s delegate) shall provide. 
Such Secretary shall issue guidance within 30 days after the 
date of the enactment of this Act providing for a one-time 
submission of claims covering periods described in the preceding 
sentence. Such guidance shall provide for a 180-day period 
for the submission of such claims (in such manner as prescribed 
by such Secretary) to begin not later than 30 days after such 
guidance is issued. Such claims shall be paid by such Secretary 
not later than 60 days after receipt. If such Secretary has 
not paid pursuant to a claim filed under this subsection within 
60 days after the date of the filing of such claim, the claim 
shall be paid with interest from such date determined by using 
the overpayment rate and method under section 6621 of such 
Code. 
SEC. 186. EXTENSION AND MODIFICATION OF PRODUCTION CREDIT 
FOR INDIAN COAL FACILITIES. 
(a) IN GENERAL.—Section 45(e)(10)(A) is amended by striking 
‘‘9-year period’’ each place it appears and inserting ‘‘11-year period’’.
H. R. 2029—834 
SEC. 189. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERA-
TION BIOFUEL PLANT PROPERTY. 
(a) IN GENERAL.—Section 168(l)(2)(D) is amended by striking 
‘‘January 1, 2015’’ and inserting ‘‘January 1, 2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2014. 
SEC. 190. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION. 
(a) IN GENERAL.—Section 179D(h) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to property placed in service after December 31, 2014. 
SEC. 191. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS 
TO IMPLEMENT FERC OR STATE ELECTRIC RESTRUC-
TURING POLICY FOR QUALIFIED ELECTRIC UTILITIES. 
(a) IN GENERAL.—Section 451(i)(3) is amended by striking 
‘‘January 1, 2015’’ and inserting ‘‘January 1, 2017’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to dispositions after December 31, 2014. 
SEC. 192. EXTENSION OF EXCISE TAX CREDITS RELATING TO ALTER-
NATIVE FUELS. 
(a) 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, 2014’’ and inserting 
‘‘December 31, 2016’’. 
(2) OUTLAY PAYMENTS FOR ALTERNATIVE FUELS.—Section 
6427(e)(6)(C) is amended by striking ‘‘December 31, 2014’’ and 
inserting ‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel sold or used after December 31, 2014. 
(c) SPECIAL RULE FOR 2015.—Notwithstanding any other provi-
sion of law, in the case of any alternative fuel credit properly 
determined under section 6426(d) of the Internal Revenue Code 
of 1986 for the period beginning on January 1, 2015, and ending 
on December 31, 2015, such credit shall be allowed, and any refund 
or payment attributable to such credit (including any payment 
under section 6427(e) of such Code) shall be made, only in such 
manner as the Secretary of the Treasury (or the Secretary’s dele-
gate) shall provide. Such Secretary shall issue guidance within 
30 days after the date of the enactment of this Act providing 
for a one-time submission of claims covering periods described in 
the preceding sentence. Such guidance shall provide for a 180- 
day period for the submission of such claims (in such manner 
as prescribed by such Secretary) to begin not later than 30 days 
after such guidance is issued. Such claims shall be paid by such 
Secretary not later than 60 days after receipt. If such Secretary 
has not paid pursuant to a claim filed under this subsection within 
60 days after the date of the filing of such claim, the claim shall 
be paid with interest from such date determined by using the 
overpayment rate and method under section 6621 of such Code. 
SEC. 193. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL 
MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30B(k)(1) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 2016’’.
H. R. 2029—835 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property purchased after December 31, 2014. 
TITLE II—PROGRAM INTEGRITY 
SEC. 201. MODIFICATION OF FILING DATES OF RETURNS AND STATE-
MENTS RELATING TO EMPLOYEE WAGE INFORMATION 
AND 
NONEMPLOYEE 
COMPENSATION 
TO 
IMPROVE 
COMPLIANCE. 
(a) IN GENERAL.—Section 6071 is amended by redesignating 
subsection (c) as subsection (d), and by inserting after subsection 
(b) the following new subsection: 
‘‘(c) RETURNS AND STATEMENTS RELATING TO EMPLOYEE WAGE 
INFORMATION AND NONEMPLOYEE COMPENSATION.—Forms W–2 and 
W–3 and any returns or statements required by the Secretary 
to report nonemployee compensation shall be filed on or before 
January 31 of the year following the calendar year to which such 
returns relate.’’. 
(b) DATE FOR CERTAIN REFUNDS.—Section 6402 is amended 
by adding at the end the following new subsection: 
‘‘(m) EARLIEST DATE
FOR CERTAIN REFUNDS.—No credit or 
refund of an overpayment for a taxable year shall be made to 
a taxpayer before the 15th day of the second month following 
the close of such taxable year if a credit is allowed to such taxpayer 
under section 24 (by reason of subsection (d) thereof) or 32 for 
such taxable year.’’. 
(c) CONFORMING AMENDMENT.—Section 6071(b) is amended by 
striking ‘‘subparts B and C of part III of this subchapter’’ and 
inserting ‘‘subpart B of part III of this subchapter (other than 
returns and statements required to be filed with respect to non-
employee compensation)’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to returns and 
statements relating to calendar years beginning after the date 
of the enactment of this Act. 
(2) DATE FOR CERTAIN REFUNDS.—The amendment made 
by subsection (b) shall apply to credits or refunds made after 
December 31, 2016. 
SEC. 202. SAFE HARBOR FOR DE MINIMIS ERRORS ON INFORMATION 
RETURNS AND PAYEE STATEMENTS. 
(a) IN GENERAL.—Section 6721(c) is amended by adding at 
the end the following new paragraph: 
‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS ERRORS.— 
‘‘(A) IN GENERAL.—If, with respect to an information 
return filed with the Secretary— 
‘‘(i) there are 1 or more failures described in sub-
section (a)(2)(B) relating to an incorrect dollar amount, 
‘‘(ii) no single amount in error differs from the 
correct amount by more than $100, and 
‘‘(iii) no single amount reported for tax withheld 
on any information return differs from the correct 
amount by more than $25,
H. R. 2029—836 
then no correction shall be required and, for purposes of 
this section, such return shall be treated as having been 
filed with all of the correct required information. 
‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply 
with respect to any incorrect dollar amount to the extent 
that such error relates to an amount with respect to which 
an election is made under section 6722(c)(3)(B). 
‘‘(C) REGULATORY
AUTHORITY.—The Secretary may 
issue regulations to prevent the abuse of the safe harbor 
under this paragraph, including regulations providing that 
this paragraph shall not apply to the extent necessary 
to prevent any such abuse.’’. 
(b) FAILURE TO FURNISH CORRECT PAYEE STATEMENT.—Section 
6722(c) is amended by adding at the end the following new para-
graph: 
‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS ERRORS.— 
‘‘(A) IN GENERAL.—If, with respect to any payee state-
ment— 
‘‘(i) there are 1 or more failures described in sub-
section (a)(2)(B) relating to an incorrect dollar amount, 
‘‘(ii) no single amount in error differs from the 
correct amount by more than $100, and 
‘‘(iii) no single amount reported for tax withheld 
on any information return differs from the correct 
amount by more than $25, 
then no correction shall be required and, for purposes of 
this section, such statement shall be treated as having 
been filed with all of the correct required information. 
‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply 
to any payee statement if the person to whom such state-
ment is required to be furnished makes an election (at 
such time and in such manner as the Secretary may pre-
scribe) that subparagraph (A) not apply with respect to 
such statement. 
‘‘(C) REGULATORY
AUTHORITY.—The Secretary may 
issue regulations to prevent the abuse of the safe harbor 
under this paragraph, including regulations providing that 
this paragraph shall not apply to the extent necessary 
to prevent any such abuse.’’. 
(c) APPLICATION
TO BROKER REPORTING
OF BASIS.—Section 
6045(g)(2)(B) is amended by adding at the end the following new 
clause: 
‘‘(iii) TREATMENT
OF
UNCORRECTED
DE
MINIMIS 
ERRORS.—Except as otherwise provided by the Sec-
retary, the customer’s adjusted basis shall be deter-
mined by treating any incorrect dollar amount which 
is not required to be corrected by reason of section 
6721(c)(3) or section 6722(c)(3) as the correct amount.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 6721(c) is amended by striking ‘‘EXCEPTION 
FOR DE MINIMIS FAILURES TO INCLUDE ALL REQUIRED INFORMA-
TION’’ in the heading and inserting ‘‘EXCEPTIONS FOR CERTAIN 
DE MINIMIS FAILURES’’. 
(2) Section 6721(c)(1) is amended by striking ‘‘IN GENERAL’’ 
in the heading and inserting ‘‘EXCEPTION
FOR
DE
MINIMIS 
FAILURE TO INCLUDE ALL REQUIRED INFORMATION’’.
H. R. 2029—837 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to returns required to be filed, and payee statements 
required to be provided, after December 31, 2016. 
SEC. 203. REQUIREMENTS FOR THE ISSUANCE OF ITINS. 
(a) IN GENERAL.—Section 6109 is amended by adding at the 
end the following new subsection: 
‘‘(i) SPECIAL RULES RELATING TO THE ISSUANCE OF ITINS.— 
‘‘(1) IN
GENERAL.—The Secretary is authorized to issue 
an individual taxpayer identification number to an individual 
only if the applicant submits an application, using such form 
as the Secretary may require and including the required docu-
mentation— 
‘‘(A) in the case of an applicant not described in 
subparagraph (B)— 
‘‘(i) in person to an employee of the Internal Rev-
enue Service or a community-based certified acceptance 
agent approved by the Secretary, or 
‘‘(ii) by mail, pursuant to rules prescribed by the 
Secretary, or 
‘‘(B) in the case of an applicant who resides outside 
of the United States, by mail or in person to an employee 
of the Internal Revenue Service or a designee of the Sec-
retary at a United States diplomatic mission or consular 
post. 
‘‘(2) REQUIRED DOCUMENTATION.—For purposes of this sub-
section— 
‘‘(A) IN GENERAL.—The term ‘required documentation’ 
includes such documentation as the Secretary may require 
that proves the individual’s identity, foreign status, and 
residency. 
‘‘(B) VALIDITY
OF
DOCUMENTS.—The Secretary may 
accept only original documents or certified copies meeting 
the requirements of the Secretary. 
‘‘(3) TERM OF ITIN.— 
‘‘(A) IN GENERAL.—An individual taxpayer identifica-
tion number issued after December 31, 2012, shall remain 
in effect unless the individual to whom such number is 
issued does not file a return of tax (or is not included 
as a dependent on the return of tax of another taxpayer) 
for 3 consecutive taxable years. In the case of an individual 
described in the preceding sentence, such number shall 
expire on the last day of such third consecutive taxable 
year. 
‘‘(B) SPECIAL RULE FOR EXISTING ITINS.—In the case 
of an individual with respect to whom an individual tax-
payer identification number was issued before January 1, 
2013, such number shall remain in effect until the earlier 
of— 
‘‘(i) the applicable date, or 
‘‘(ii) if the individual does not file a return of 
tax (or is not included as a dependent on the return 
of tax of another taxpayer) for 3 consecutive taxable 
years, the earlier of— 
‘‘(I) the last day of such third consecutive tax-
able year, or
H. R. 2029—838 
‘‘(II) the last day of the taxable year that 
includes the date of the enactment of this sub-
section. 
‘‘(C) APPLICABLE DATE.—For purposes of subparagraph 
(B), the term ‘applicable date’ means— 
‘‘(i) January 1, 2017, in the case of an individual 
taxpayer identification number issued before January 
1, 2008, 
‘‘(ii) January 1, 2018, in the case of an individual 
taxpayer identification number issued in 2008, 
‘‘(iii) January 1, 2019, in the case of an individual 
taxpayer identification number issued in 2009 or 2010, 
and 
‘‘(iv) January 1, 2020, in the case of an individual 
taxpayer identification number issued in 2011 or 2012. 
‘‘(4) DISTINGUISHING ITINS ISSUED SOLELY FOR PURPOSES 
OF TREATY BENEFITS.—The Secretary shall implement a system 
that ensures that individual taxpayer identification numbers 
issued solely for purposes of claiming tax treaty benefits are 
used only for such purposes, by distinguishing such numbers 
from other individual taxpayer identification numbers issued.’’. 
(b) AUDIT BY TIGTA.—Not later than 2 years after the date 
of the enactment of this Act, and every 2 years thereafter, the 
Treasury Inspector General for Tax Administration shall conduct 
an audit of the program of the Internal Revenue Service for the 
issuance of individual taxpayer identification numbers pursuant 
to section 6109(i) of the Internal Revenue Code of 1986 (as added 
by this section) and report the results of such audit to the Com-
mittee on Finance of the Senate and the Committee on the Ways 
and Means of the House of Representatives. 
(c) COMMUNITY-BASED CERTIFIED ACCEPTANCE AGENTS.—The 
Secretary of the Treasury, or the Secretary’s delegate, shall main-
tain a program for training and approving community-based cer-
tified acceptance agents for purposes of section 6109(i)(1)(A)(i) of 
the Internal Revenue Code of 1986 (as added by this section). 
Persons eligible to be acceptance agents under such program 
include— 
(1) financial institutions (as defined in section 265(b)(5) 
of such Code and the regulations thereunder), 
(2) colleges and universities which are described in section 
501(c)(3) of such Code and exempt from taxation under section 
501(a) of such Code, 
(3) Federal agencies (as defined in section 6402(h) of such 
Code), 
(4) State and local governments, including agencies respon-
sible for vital records, 
(5) community-based organizations which are described in 
subsection (c)(3) or (d) of section 501 of such Code and exempt 
from taxation under section 501(a) of such Code, 
(6) persons that provide assistance to taxpayers in the 
preparation of their tax returns, and 
(7) other persons or categories of persons as authorized 
by regulations or other guidance of the Secretary of the 
Treasury. 
(d) ITIN STUDY.— 
(1) IN GENERAL.—The Secretary of the Treasury, or the 
Secretary’s delegate, shall conduct a study on the effectiveness
H. R. 2029—839 
of the application process for individual taxpayer identification 
numbers before the implementation of the amendments made 
by this section, the effects of the amendments made by this 
section on such application process, the comparative effective-
ness of an in-person review process for application versus other 
methods of reducing fraud in the ITIN program and improper 
payments to ITIN holders as a result, and possible administra-
tive and legislative recommendations to improve such process. 
(2) SPECIFIC REQUIREMENTS.—Such study shall include an 
evaluation of the following: 
(A) 
Possible 
administrative 
and 
legislative 
rec-
ommendations to reduce fraud and improper payments 
through the use of individual taxpayer identification num-
bers (hereinafter referred to as ‘‘ITINs’’). 
(B) If data supports an in-person initial review of ITIN 
applications to reduce fraud and improper payments, the 
administrative and legislative steps needed to implement 
such an in-person initial review of ITIN applications, in 
conjunction with an expansion of the community-based cer-
tified acceptance agent program under subsection (c), with 
a goal of transitioning to such a program by 2020. 
(C) Strategies for more efficient processing of ITIN 
applications. 
(D) The acceptance agent program as in existence on 
the date of the enactment of this Act and ways to expand 
the geographic availability of agents through the commu-
nity-based certified acceptance agent program under sub-
section (c). 
(E) Strategies for the Internal Revenue Service to work 
with other Federal agencies, State and local governments, 
and other organizations and persons described in sub-
section (c) to encourage participation in the community- 
based certified acceptance agent program under subsection 
(c) to facilitate in-person initial review of ITIN applications. 
(F) Typical characteristics (derived from Form W–7 
and other sources) of mail applications for ITINs as com-
pared with typical characteristics of in-person applications. 
(G) Typical characteristics (derived from 17 Form W– 
7 and other sources) of ITIN applications before the 
Internal Revenue Service revised its application procedures 
in 2012 as compared with typical characteristics of ITIN 
applications made after such revisions went into effect. 
(3) REPORT.—The Secretary, or the Secretary’s delegate, 
shall submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Representa-
tives a report detailing the study under paragraph (1) and 
its findings not later than 1 year after the date of the enactment 
of this Act. 
(4) ADMINISTRATIVE STEPS.—The Secretary of the Treasury 
shall implement any administrative steps identified by the 
report under paragraph (3) not later than 180 days after 
submitting such report. 
(e) MATHEMATICAL
OR CLERICAL ERROR AUTHORITY.—Para-
graph (2) of section 6213(g) of the Internal Revenue Code of 1986 
is amended by striking ‘‘and’’ at the end of subparagraph (M), 
by striking the period at the end of subparagraph (N) and inserting
H. R. 2029—840 
‘‘, and’’, and by inserting after subparagraph (N) the following 
new subparagraph: 
‘‘(O) the inclusion on a return of an individual taxpayer 
identification number issued under section 6109(i) which 
has expired, been revoked by the Secretary, or is otherwise 
invalid.’’. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to applications for individual taxpayer identification 
numbers made after the date of the enactment of this Act. 
SEC. 204. PREVENTION OF RETROACTIVE CLAIMS OF EARNED INCOME 
CREDIT AFTER ISSUANCE OF SOCIAL SECURITY NUMBER. 
(a) IN GENERAL.—Section 32(m) is amended by inserting ‘‘on 
or before the due date for filing the return for the taxable year’’ 
before the period at the end. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendment made by this section shall apply to any return 
of tax, and any amendment or supplement to any return of 
tax, which is filed after the date of the enactment of this 
Act. 
(2) EXCEPTION
FOR
TIMELY-FILED
2015
RETURNS.—The 
amendment made by this section shall not apply to any return 
of tax (other than an amendment or supplement to any return 
of tax) for any taxable year which includes the date of the 
enactment of this Act if such return is filed on or before the 
due date for such return of tax. 
SEC. 205. PREVENTION OF RETROACTIVE CLAIMS OF CHILD TAX 
CREDIT. 
(a) QUALIFYING CHILD IDENTIFICATION REQUIREMENT.—Section 
24(e) is amended by inserting ‘‘and such taxpayer identification 
number was issued on or before the due date for filing such return’’ 
before the period at the end. 
(b) TAXPAYER IDENTIFICATION REQUIREMENT.—Section 24(e), as 
amended by subsection (a) is amended— 
(1) by striking ‘‘IDENTIFICATION REQUIREMENT.—No credit 
shall be allowed’’ and inserting the following: ‘‘IDENTIFICATION 
REQUIREMENTS.— 
‘‘(1) QUALIFYING CHILD IDENTIFICATION REQUIREMENT.—No 
credit shall be allowed’’, and 
(2) by adding at the end the following new paragraph: 
‘‘(2) TAXPAYER
IDENTIFICATION
REQUIREMENT.—No credit 
shall be allowed under this section if the identifying number 
of the taxpayer was issued after the due date for filing the 
return for the taxable year.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by this section 
shall apply to any return of tax, and any amendment or supple-
ment to any return of tax, which is filed after the date of 
the enactment of this Act. 
(2) EXCEPTION
FOR
TIMELY-FILED
2015
RETURNS.—The 
amendments made by this section shall not apply to any return 
of tax (other than an amendment or supplement to any return 
of tax) for any taxable year which includes the date of the 
enactment of this Act if such return is filed on or before the 
due date for such return of tax.
H. R. 2029—841 
SEC. 206. PREVENTION OF RETROACTIVE CLAIMS OF AMERICAN 
OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A(i) is amended— 
(1) by striking paragraph (6), and 
(2) by inserting after paragraph (5) the following new para-
graph: 
‘‘(6) IDENTIFICATION NUMBERS.— 
‘‘(A) STUDENT.—The requirements of subsection (g)(1) 
shall not be treated as met with respect to the Hope Schol-
arship Credit unless the individual’s taxpayer identification 
number was issued on or before the due date for filing 
the return of tax for the taxable year. 
‘‘(B) TAXPAYER.—No Hope Scholarship Credit shall be 
allowed under this section if the identifying number of 
the taxpayer was issued after the due date for filing the 
return for the taxable year.’’. 
(b) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendment made by subsection (a)(2) shall apply to any return 
of tax, and any amendment or supplement to any return of 
tax, which is filed after the date of the enactment of this 
Act. 
(2) EXCEPTION
FOR
TIMELY-FILED
2015
RETURNS.—The 
amendment made by subsection (a)(2) shall not apply to any 
return of tax (other than an amendment or supplement to 
any return of tax) for any taxable year which includes the 
date of the enactment of this Act if such return is filed on 
or before the due date for such return of tax. 
(3) REPEAL OF DEADWOOD.—The amendment made by sub-
section (a)(1) shall take effect on the date of the enactment 
of this Act. 
SEC. 207. PROCEDURES TO REDUCE IMPROPER CLAIMS. 
(a) 
DUE
DILIGENCE
REQUIREMENTS.—Section 
6695(g) 
is 
amended— 
(1) by striking ‘‘section 32’’and inserting ‘‘section 24, 
25A(a)(1), or 32’’, and 
(2) in the heading by inserting ‘‘CHILD TAX CREDIT; AMER-
ICAN OPPORTUNITY TAX CREDIT; AND’’ before ‘‘EARNED INCOME 
CREDIT’’. 
(b) RETURN PREPARER DUE DILIGENCE STUDY.— 
(1) IN GENERAL.—The Secretary of the Treasury, or his 
delegate, shall conduct a study of the effectiveness of tax return 
preparer due diligence requirements for claiming the earned 
income tax credit under section 32 of the Internal Revenue 
Code of 1986, the child tax credit under section 24 of such 
Code, and the American opportunity tax credit under section 
25A(i) of such Code. 
(2) REQUIREMENTS.—Such study shall include an evaluation 
of the following: 
(A) The effectiveness of the questions currently asked 
as part of the due-diligence requirement with respect to 
minimizing error and fraud. 
(B) Whether all such questions are necessary and sup-
port improved compliance.
H. R. 2029—842 
(C) The comparative effectiveness of such questions 
relative to other means of determining (i) eligibility for 
these tax credits and (ii) the correct amount of tax credit. 
(D) Whether due diligence of this type should apply 
to other methods of tax filing and whether such require-
ments should vary based on the methods to increase 
effectiveness. 
(E) The effectiveness of the preparer penalty under 
section 6695(g) in enforcing the due diligence requirements. 
(3) REPORT.—The Secretary, or his delegate, shall submit 
to the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate a 
report detailing the study and its findings— 
(A) in the case of the portion of the study that relates 
to the earned income tax credit, not later than 1 year 
after the date of enactment of this Act, and 
(B) in the case of the portions of the study that relate 
to the child tax credit and the American opportunity tax 
credit, not later than 2 years after the date of the enact-
ment of this Act. 
(c) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 208. RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED 
CREDITS IN PRIOR YEAR. 
(a) RESTRICTIONS.— 
(1) CHILD TAX CREDIT.—Section 24 is amended by adding 
at the end the following new subsection: 
‘‘(g) RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED 
CREDIT IN PRIOR YEAR.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT OR RECKLESS 
CLAIMS.— 
‘‘(A) IN GENERAL.—No credit shall be allowed under 
this section for any taxable year in the disallowance period. 
‘‘(B) DISALLOWANCE PERIOD.—For purposes of subpara-
graph (A), the disallowance period is— 
‘‘(i) the period of 10 taxable years after the most 
recent taxable year for which there was a final deter-
mination that the taxpayer’s claim of credit under this 
section was due to fraud, and 
‘‘(ii) the period of 2 taxable years after the most 
recent taxable year for which there was a final deter-
mination that the taxpayer’s claim of credit under this 
section was due to reckless or intentional disregard 
of rules and regulations (but not due to fraud). 
‘‘(2) TAXPAYERS MAKING IMPROPER PRIOR CLAIMS.—In the 
case of a taxpayer who is denied credit under this section 
for any taxable year as a result of the deficiency procedures 
under subchapter B of chapter 63, no credit shall be allowed 
under this section for any subsequent taxable year unless the 
taxpayer provides such information as the Secretary may 
require to demonstrate eligibility for such credit.’’. 
(2) AMERICAN OPPORTUNITY TAX CREDIT.—Section 25A(i), 
as amended by the preceding provisions of this Act, is amended 
by adding at the end the following new paragraph: 
‘‘(7) RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED 
CREDIT IN PRIOR YEAR.—
H. R. 2029—843 
‘‘(A) TAXPAYERS MAKING PRIOR FRAUDULENT OR RECK-
LESS CLAIMS.— 
‘‘(i) IN GENERAL.—No credit shall be allowed under 
this section for any taxable year in the disallowance 
period. 
‘‘(ii) DISALLOWANCE
PERIOD.—For purposes of 
clause (i), the disallowance period is— 
‘‘(I) the period of 10 taxable years after the 
most recent taxable year for which there was a 
final determination that the taxpayer’s claim of 
credit under this section was due to fraud, and 
‘‘(II) the period of 2 taxable years after the 
most recent taxable year for which there was a 
final determination that the taxpayer’s claim of 
credit under this section was due to reckless or 
intentional disregard of rules and regulations (but 
not due to fraud). 
‘‘(B) TAXPAYERS MAKING IMPROPER PRIOR CLAIMS.—In 
the case of a taxpayer who is denied credit under this 
section for any taxable year as a result of the deficiency 
procedures under subchapter B of chapter 63, no credit 
shall be allowed under this section for any subsequent 
taxable year unless the taxpayer provides such information 
as the Secretary may require to demonstrate eligibility 
for such credit.’’. 
(b) MATH ERROR AUTHORITY.— 
(1) EARNED INCOME TAX CREDIT.—Section 6213(g)(2)(K) is 
amended by inserting before the comma at the end the fol-
lowing: ‘‘or an entry on the return claiming the credit under 
section 32 for a taxable year for which the credit is disallowed 
under subsection (k)(1) thereof’’. 
(2) AMERICAN
OPPORTUNITY
TAX
CREDIT
AND
CHILD
TAX 
CREDIT.—Section 6213(g)(2), as amended by the preceding provi-
sions of this Act, is amended by striking ‘‘and’’ at the end 
of subparagraph (N), by striking the period at the end of 
subparagraph (O), and by inserting after subparagraph (O) 
the following new subparagraphs: 
‘‘(P) an omission of information required by section 
24(h)(2) or an entry on the return claiming the credit 
under section 24 for a taxable year for which the credit 
is disallowed under subsection (h)(1) thereof, and 
‘‘(Q) an omission of information required by section 
25A(i)(8)(B) or an entry on the return claiming the credit 
determined under section 25A(i) for a taxable year for 
which the credit is disallowed under paragraph (8)(A) 
thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 209. TREATMENT OF CREDITS FOR PURPOSES OF CERTAIN PEN-
ALTIES. 
(a) 
APPLICATION
OF
UNDERPAYMENT
PENALTIES.—Section 
6664(a) is amended by adding at the end the following: ‘‘A rule 
similar to the rule of section 6211(b)(4) shall apply for purposes 
of this subsection.’’. 
(b) PENALTY
FOR
ERRONEOUS
CLAIM
OF
CREDIT
MADE 
APPLICABLE
TO
EARNED
INCOME
CREDIT.—Section 6676(a) is
H. R. 2029—846 
‘‘(D) SPECIAL RULE FOR CONTRIBUTIONS OF REFUNDED 
AMOUNTS.—In the case of a beneficiary who receives a 
refund of any qualified higher education expenses from 
an eligible educational institution, subparagraph (A) shall 
not apply to that portion of any distribution for the taxable 
year which is recontributed to a qualified tuition program 
of which such individual is a beneficiary, but only to the 
extent such recontribution is made not later than 60 days 
after the date of such refund and does not exceed the 
refunded amount.’’. 
(2) EFFECTIVE DATE.— 
(A) IN GENERAL.—The amendment made by this sub-
section shall apply with respect to refunds of qualified 
higher education expenses after December 31, 2014. 
(B) TRANSITION RULE.—In the case of a refund of quali-
fied higher education expenses received after December 
31, 2014, and before the date of the enactment of this 
Act, section 529(c)(3)(D) of the Internal Revenue Code of 
1986 (as added by this subsection) shall be applied by 
substituting ‘‘not later than 60 days after the date of the 
enactment of this subparagraph’’ for ‘‘not later than 60 
days after the date of such refund’’. 
SEC. 303. ELIMINATION OF RESIDENCY REQUIREMENT FOR QUALIFIED 
ABLE PROGRAMS. 
(a) IN GENERAL.—Section 529A(b)(1) is amended by striking 
subparagraph (C), by inserting ‘‘and’’ at the end of subparagraph 
(B), and by redesignating subparagraph (D) as subparagraph (C). 
(b) CONFORMING AMENDMENTS.— 
(1) The second sentence of section 529A(d)(3) is amended 
by striking ‘‘and State of residence’’. 
(2) Section 529A(e) is amended by striking paragraph (7). 
(c) TECHNICAL AMENDMENTS.— 
(1) Section 529A(d)(4) is amended by striking ‘‘section 4’’ 
and inserting ‘‘section 103’’. 
(2) Section 529A(c)(1)(C)(i) is amended by striking ‘‘family 
member’’ and inserting ‘‘member of the family’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2014. 
SEC. 304. EXCLUSION FOR WRONGFULLY INCARCERATED INDIVID-
UALS. 
(a) IN GENERAL.—Part III of subchapter B of chapter 1 is 
amended by inserting before section 140 the following new section: 
‘‘SEC. 139F. CERTAIN AMOUNTS RECEIVED BY WRONGFULLY INCAR-
CERATED INDIVIDUALS. 
‘‘(a) EXCLUSION FROM GROSS INCOME.—In the case of any 
wrongfully incarcerated individual, gross income shall not include 
any civil damages, restitution, or other monetary award (including 
compensatory or statutory damages and restitution imposed in a 
criminal matter) relating to the incarceration of such individual 
for the covered offense for which such individual was convicted. 
‘‘(b) WRONGFULLY INCARCERATED INDIVIDUAL.—For purposes of 
this section, the term ‘wrongfully incarcerated individual’ means 
an individual— 
‘‘(1) who was convicted of a covered offense,
H. R. 2029—847 
‘‘(2) who served all or part of a sentence of imprisonment 
relating to that covered offense, and 
‘‘(3)(A) who was pardoned, granted clemency, or granted 
amnesty for that covered offense because that individual was 
innocent of that covered offense, or 
‘‘(B)(i) for whom the judgment of conviction for that covered 
offense was reversed or vacated, and 
‘‘(ii) for whom the indictment, information, or other accusa-
tory instrument for that covered offense was dismissed or who 
was found not guilty at a new trial after the judgment of 
conviction for that covered offense was reversed or vacated. 
‘‘(c) COVERED OFFENSE.—For purposes of this section, the term 
‘covered offense’ means any criminal offense under Federal or State 
law, and includes any criminal offense arising from the same course 
of conduct as that criminal offense.’’. 
(b) CONFORMING AMENDMENT.—The table of sections for part 
III of subchapter B of chapter 1 is amended by inserting after 
the item relating to section 139E the following new item: 
‘‘Sec. 139F. Certain amounts received by wrongfully incarcerated individuals.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning before, on, or after the 
date of the enactment of this Act. 
(d) WAIVER OF LIMITATIONS.—If the credit or refund of any 
overpayment of tax resulting from the application of this Act to 
a period before the date of enactment of this Act is prevented 
as of such date by the operation of any law or rule of law (including 
res judicata), such credit or refund may nevertheless be allowed 
or made if the claim therefor is filed before the close of the 1- 
year period beginning on the date of the enactment of this Act. 
SEC. 305. CLARIFICATION OF SPECIAL RULE FOR CERTAIN GOVERN-
MENTAL PLANS. 
(a) IN GENERAL.—Paragraph (1) of section 105(j) is amended— 
(1) by striking ‘‘the taxpayer’’ and inserting ‘‘a qualified 
taxpayer’’, and 
(2) by striking ‘‘deceased plan participant’s beneficiary’’ 
and inserting ‘‘deceased employee’s beneficiary (other than an 
individual described in paragraph (3)(B))’’. 
(b) QUALIFIED TAXPAYER.—Subsection (j) of section 105 is 
amended by adding at the end the following new paragraph: 
‘‘(3) QUALIFIED TAXPAYER.—For purposes of paragraph (1), 
with respect to an accident or health plan described in para-
graph (2), the term ‘qualified taxpayer’ means a taxpayer who 
is— 
‘‘(A) an employee, or 
‘‘(B) the spouse, dependent (as defined for purposes 
of subsection (b)), or child (as defined for purposes of such 
subsection) of an employee.’’. 
(c) APPLICATION TO POLITICAL SUBDIVISIONS OF STATES.—Para-
graph (2) of section 105(j) is amended— 
(1) by inserting ‘‘or established by or on behalf of a State 
or political subdivision thereof’’ after ‘‘public retirement 
system’’, and 
(2) by inserting ‘‘or 501(c)(9)’’ after ‘‘section 115’’ in subpara-
graph (B).
H. R. 2029—848 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to payments after the date of the enactment of this 
Act. 
SEC. 306. ROLLOVERS PERMITTED FROM OTHER RETIREMENT PLANS 
INTO SIMPLE RETIREMENT ACCOUNTS. 
(a) IN GENERAL.—Section 408(p)(1)(B) is amended by inserting 
‘‘except in the case of a rollover contribution described in subsection 
(d)(3)(G) or a rollover contribution otherwise described in subsection 
(d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), which 
is made after the 2-year period described in section 72(t)(6),’’ before 
‘‘with respect to which the only contributions allowed’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made after the date of the enactment 
of this Act. 
SEC. 307. TECHNICAL AMENDMENT RELATING TO ROLLOVER OF CER-
TAIN AIRLINE PAYMENT AMOUNTS. 
(a) IN GENERAL.—Section 1106(a) of the FAA Modernization 
and Reform Act of 2012 (26 U.S.C. 408 note) is amended by adding 
at the end the following new paragraph: 
‘‘(6) 
SPECIAL
RULE
FOR
CERTAIN
AIRLINE
PAYMENT 
AMOUNTS.—In the case of any amount which became an airline 
payment amount by reason of the amendments made by section 
1(b) of Public Law 113–243 (26 U.S.C. 408 note), paragraph 
(1) shall be applied by substituting ‘(or, if later, within the 
period beginning on December 18, 2014, and ending on the 
date which is 180 days after the date of enactment of the 
Protecting Americans from Tax Hikes Act of 2015)’ for ‘(or, 
if later, within 180 days of the date of the enactment of this 
Act)’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in Public Law 113–243 (26 U.S.C. 
408 note). 
SEC. 308. TREATMENT OF EARLY RETIREMENT DISTRIBUTIONS FOR 
NUCLEAR MATERIALS COURIERS, UNITED STATES CAP-
ITOL POLICE, SUPREME COURT POLICE, AND DIPLOMATIC 
SECURITY SPECIAL AGENTS. 
(a) IN GENERAL.—Section 72(t)(10)(B)(ii), as added by Public 
Law 114–26, is amended by striking ‘‘or any’’ and inserting ‘‘any’’ 
and by inserting before the period at the end the following: ‘‘, 
any nuclear materials courier described in section 8331(27) or 
8401(33) of such title, any member of the United States Capitol 
Police, any member of the Supreme Court Police, or any diplomatic 
security special agent of the Department of State’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions after December 31, 2015. 
SEC. 309. PREVENTION OF EXTENSION OF TAX COLLECTION PERIOD 
FOR MEMBERS OF THE ARMED FORCES WHO ARE 
HOSPITALIZED AS A RESULT OF COMBAT ZONE INJURIES. 
(a) IN GENERAL.—Section 7508(e) is amended by adding at 
the end the following new paragraph: 
‘‘(3) COLLECTION PERIOD AFTER ASSESSMENT NOT EXTENDED 
AS A RESULT OF HOSPITALIZATION.—With respect to any period 
of continuous qualified hospitalization described in subsection
H. R. 2029—849 
(a) and the next 180 days thereafter, subsection (a) shall not 
apply in the application of section 6502.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxes assessed before, on, or after the date of the 
enactment of this Act. 
Subtitle B—Real Estate Investment Trusts 
SEC. 311. RESTRICTION ON TAX-FREE SPINOFFS INVOLVING REITS. 
(a) IN GENERAL.—Section 355 is amended by adding at the 
end the following new subsection: 
‘‘(h) RESTRICTION ON DISTRIBUTIONS INVOLVING REAL ESTATE 
INVESTMENT TRUSTS.— 
‘‘(1) IN GENERAL.—This section (and so much of section 
356 as relates to this section) shall not apply to any distribution 
if either the distributing corporation or controlled corporation 
is a real estate investment trust. 
‘‘(2) EXCEPTIONS FOR CERTAIN SPINOFFS.— 
‘‘(A) SPINOFFS OF A REAL ESTATE INVESTMENT TRUST 
BY ANOTHER REAL ESTATE INVESTMENT TRUST.—Paragraph 
(1) shall not apply to any distribution if, immediately after 
the distribution, the distributing corporation and the con-
trolled corporation are both real estate investment trusts. 
‘‘(B) SPINOFFS
OF
CERTAIN
TAXABLE
REIT
SUBSIDI-
ARIES.—Paragraph (1) shall not apply to any distribution 
if— 
‘‘(i) the distributing corporation has been a real 
estate investment trust at all times during the 3-year 
period ending on the date of such distribution, 
‘‘(ii) the controlled corporation has been a taxable 
REIT subsidiary (as defined in section 856(l)) of the 
distributing corporation at all times during such 
period, and 
‘‘(iii) the distributing corporation had control (as 
defined in section 368(c) applied by taking into account 
stock owned directly or indirectly, including through 
one or more corporations or partnerships, by the dis-
tributing corporation) of the controlled corporation at 
all times during such period. 
A controlled corporation will be treated as meeting the 
requirements of clauses (ii) and (iii) if the stock of such 
corporation was distributed by a taxable REIT subsidiary 
in a transaction to which this section (or so much of section 
356 as relates to this section) applies and the assets of 
such corporation consist solely of the stock or assets of 
assets held by one or more taxable REIT subsidiaries of 
the distributing corporation meeting the requirements of 
clauses (ii) and (iii). For purposes of clause (iii), control 
of a partnership means ownership of 80 percent of the 
profits interest and 80 percent of the capital interests.’’. 
(b) PREVENTION OF REIT ELECTION FOLLOWING TAX-FREE SPIN 
OFF.—Section 856(c) is amended by redesignating paragraph (8) 
as paragraph (9) and by inserting after paragraph (7) the following 
new paragraph:
H. R. 2029—850 
‘‘(8) ELECTION AFTER TAX-FREE REORGANIZATION.—If a cor-
poration was a distributing corporation or a controlled corpora-
tion (other than a controlled corporation with respect to a 
distribution described in section 355(h)(2)(A)) with respect to 
any distribution to which section 355 (or so much of section 
356 as relates to section 355) applied, such corporation (and 
any successor corporation) shall not be eligible to make any 
election under paragraph (1) for any taxable year beginning 
before the end of the 10-year period beginning on the date 
of such distribution.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions on or after December 7, 2015, but 
shall not apply to any distribution pursuant to a transaction 
described in a ruling request initially submitted to the Internal 
Revenue Service on or before such date, which request has not 
been withdrawn and with respect to which a ruling has not been 
issued or denied in its entirety as of such date. 
SEC. 312. REDUCTION IN PERCENTAGE LIMITATION ON ASSETS OF 
REIT WHICH MAY BE TAXABLE REIT SUBSIDIARIES. 
(a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amended by striking 
‘‘25 percent’’ and inserting ‘‘20 percent’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2017. 
SEC. 313. PROHIBITED TRANSACTION SAFE HARBORS. 
(a) ALTERNATIVE 3–YEAR AVERAGING TEST FOR PERCENTAGE 
OF ASSETS THAT CAN BE SOLD ANNUALLY.— 
(1) IN
GENERAL.—Clause (iii) of section 857(b)(6)(C) is 
amended by inserting before the semicolon at the end the 
following: ‘‘, or (IV) the trust satisfies the requirements of 
subclause (II) applied by substituting ‘20 percent’ for ‘10 per-
cent’ and the 3-year average adjusted bases percentage for 
the taxable year (as defined in subparagraph (G)) does not 
exceed 10 percent, or (V) the trust satisfies the requirements 
of subclause (III) applied by substituting ‘20 percent’ for ‘10 
percent’ and the 3-year average fair market value percentage 
for the taxable year (as defined in subparagraph (H)) does 
not exceed 10 percent’’. 
(2) 3-YEAR
AVERAGE
ADJUSTED
BASES
AND
FAIR
MARKET 
VALUE
PERCENTAGES.—Paragraph (6) of section 857(b) is 
amended by redesignating subparagraphs (G) and (H) as sub-
paragraphs (I) and (J), respectively, and by inserting after 
subparagraph (F) the following new subparagraphs: 
‘‘(G) 3-YEAR AVERAGE ADJUSTED BASES PERCENTAGE.— 
The term ‘3-year average adjusted bases percentage’ means, 
with respect to any taxable year, the ratio (expressed as 
a percentage) of— 
‘‘(i) the aggregate adjusted bases (as determined 
for purposes of computing earnings and profits) of prop-
erty (other than sales of foreclosure property or sales 
to which section 1033 applies) sold during the 3 taxable 
year period ending with such taxable year, divided 
by 
‘‘(ii) the sum of the aggregate adjusted bases (as 
so determined) of all of the assets of the trust as 
of the beginning of each of the 3 taxable years which 
are part of the period referred to in clause (i).
H. R. 2029—851 
‘‘(H) 3-YEAR AVERAGE FAIR MARKET VALUE PERCENT-
AGE.—The term ‘3-year average fair market value percent-
age’ means, with respect to any taxable year, the ratio 
(expressed as a percentage) of— 
‘‘(i) the fair market value of property (other than 
sales of foreclosure property or sales to which section 
1033 applies) sold during the 3 taxable year period 
ending with such taxable year, divided by 
‘‘(ii) the sum of the fair market value of all of 
the assets of the trust as of the beginning of each 
of the 3 taxable years which are part of the period 
referred to in clause (i).’’. 
(3) CONFORMING
AMENDMENTS.—Clause (iv) of section 
857(b)(6)(D) is amended by adding ‘‘or’’ at the end of subclause 
(III) and by adding at the end the following new subclauses: 
‘‘(IV) the trust satisfies the requirements of 
subclause (II) applied by substituting ‘20 percent’ 
for ‘10 percent’ and the 3-year average adjusted 
bases percentage for the taxable year (as defined 
in subparagraph (G)) does not exceed 10 percent, 
or 
‘‘(V) the trust satisfies the requirements of 
subclause (III) applied by substituting ‘20 percent’ 
for ‘10 percent’ and the 3-year average fair market 
value percentage for the taxable year (as defined 
in subparagraph (H)) does not exceed 10 percent,’’. 
(b) APPLICATION OF SAFE HARBORS INDEPENDENT OF DETER-
MINATION WHETHER REAL ESTATE ASSET IS INVENTORY PROPERTY.— 
(1) IN
GENERAL.—Subparagraphs (C) and (D) of section 
857(b)(6) are each amended by striking ‘‘and which is described 
in section 1221(a)(1)’’ in the matter preceding clause (i). 
(2) NO INFERENCE FROM SAFE HARBORS.—Subparagraph (F) 
of section 857(b)(6) is amended to read as follows: 
‘‘(F) NO INFERENCE WITH RESPECT TO TREATMENT AS 
INVENTORY PROPERTY.—The determination of whether prop-
erty is described in section 1221(a)(1) shall be made without 
regard to this paragraph.’’. 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by subsection 
(a) shall apply to taxable years beginning after the date of 
the enactment of this Act. 
(2) APPLICATION OF SAFE HARBORS.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), the amendments made by subsection (b) shall take 
effect as if included in section 3051 of the Housing Assist-
ance Tax Act of 2008. 
(B) RETROACTIVE APPLICATION OF NO INFERENCE NOT 
APPLICABLE
TO
CERTAIN
TIMBER
PROPERTY
PREVIOUSLY 
TREATED AS NOT INVENTORY PROPERTY.—The amendment 
made by subsection (b)(2) shall not apply to any sale of 
property to which section 857(b)(6)(G) of the Internal Rev-
enue Code of 1986 (as in effect on the day before the 
date of the enactment of this Act) applies.
H. R. 2029—852 
SEC. 314. REPEAL OF PREFERENTIAL DIVIDEND RULE FOR PUBLICLY 
OFFERED REITS. 
(a) IN GENERAL.—Section 562(c) is amended by inserting ‘‘or 
a publicly offered REIT’’ after ‘‘a publicly offered regulated invest-
ment company (as defined in section 67(c)(2)(B))’’. 
(b) PUBLICLY OFFERED REIT.—Section 562(c), as amended by 
subsection (a), is amended— 
(1) by striking ‘‘Except in the case of’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Except in the case of’’, and 
(2) by adding at the end the following new paragraph: 
‘‘(2) PUBLICLY OFFERED REIT.—For purposes of this sub-
section, the term ‘publicly offered REIT’ means a real estate 
investment trust which is required to file annual and periodic 
reports with the Securities and Exchange Commission under 
the Securities Exchange Act of 1934.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions in taxable years beginning after 
December 31, 2014. 
SEC. 315. AUTHORITY FOR ALTERNATIVE REMEDIES TO ADDRESS CER-
TAIN REIT DISTRIBUTION FAILURES. 
(a) IN GENERAL.—Subsection (e) of section 562 is amended— 
(1) by striking ‘‘In the case of a real estate investment 
trust’’ and inserting the following: 
‘‘(1) DETERMINATION OF EARNINGS AND PROFITS FOR PUR-
POSES OF DIVIDENDS PAID DEDUCTION.—In the case of a real 
estate investment trust’’, and 
(2) by adding at the end the following new paragraph: 
‘‘(2) AUTHORITY TO PROVIDE ALTERNATIVE REMEDIES FOR 
CERTAIN FAILURES.—In the case of a failure of a distribution 
by a real estate investment trust to comply with the require-
ments of subsection (c), the Secretary may provide an appro-
priate remedy to cure such failure in lieu of not considering 
the distribution to be a dividend for purposes of computing 
the dividends paid deduction if— 
‘‘(A) the Secretary determines that such failure is inad-
vertent or is due to reasonable cause and not due to willful 
neglect, or 
‘‘(B) such failure is of a type of failure which the 
Secretary has identified for purposes of this paragraph 
as being described in subparagraph (A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions in taxable years beginning after 
December 31, 2015. 
SEC. 316. LIMITATIONS ON DESIGNATION OF DIVIDENDS BY REITS. 
(a) IN GENERAL.—Section 857 is amended by redesignating 
subsection (g) as subsection (h) and by inserting after subsection 
(f) the following new subsection: 
‘‘(g) LIMITATIONS ON DESIGNATION OF DIVIDENDS.— 
‘‘(1) OVERALL LIMITATION.—The aggregate amount of divi-
dends designated by a real estate investment trust under sub-
sections (b)(3)(C) and (c)(2)(A) with respect to any taxable year 
may not exceed the dividends paid by such trust with respect 
to such year. For purposes of the preceding sentence, dividends
H. R. 2029—853 
paid after the close of the taxable year described in section 
858 shall be treated as paid with respect to such year. 
‘‘(2) PROPORTIONALITY.—The Secretary may prescribe regu-
lations or other guidance requiring the proportionality of the 
designation of particular types of dividends among shares or 
beneficial interests of a real estate investment trust.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions in taxable years beginning after 
December 31, 2015. 
SEC. 317. DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS AND 
MORTGAGES TREATED AS REAL ESTATE ASSETS. 
(a) DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS TREATED 
AS REAL ESTATE ASSETS.— 
(1) IN GENERAL.—Subparagraph (B) of section 856(c)(5) is 
amended— 
(A) by striking ‘‘and shares’’ and inserting ‘‘, shares’’, 
and 
(B) by inserting ‘‘, and debt instruments issued by 
publicly offered REITs’’ before the period at the end of 
the first sentence. 
(2) INCOME FROM NONQUALIFIED DEBT INSTRUMENTS OF PUB-
LICLY OFFERED REITS NOT QUALIFIED FOR PURPOSES OF SATIS-
FYING THE 75 PERCENT GROSS INCOME TEST.—Subparagraph (H) 
of section 856(c)(3) is amended by inserting ‘‘(other than a 
nonqualified publicly offered REIT debt instrument)’’ after ‘‘real 
estate asset’’. 
(3) 25 PERCENT ASSET LIMITATION ON HOLDING OF NON-
QUALIFIED DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS.— 
Subparagraph (B) of section 856(c)(4) is amended by redesig-
nating clause (iii) as clause (iv) and by inserting after clause 
(ii) the following new clause: 
‘‘(iii) not more than 25 percent of the value of 
its total assets is represented by nonqualified publicly 
offered REIT debt instruments, and’’. 
(4) DEFINITIONS RELATED TO DEBT INSTRUMENTS OF PUB-
LICLY
OFFERED
REITS.—Paragraph (5) of section 856(c) is 
amended by adding at the end the following new subparagraph: 
‘‘(L) DEFINITIONS RELATED TO DEBT INSTRUMENTS OF 
PUBLICLY OFFERED REITS.— 
‘‘(i) PUBLICLY OFFERED REIT.—The term ‘publicly 
offered REIT’ has the meaning given such term by 
section 562(c)(2). 
‘‘(ii) NONQUALIFIED PUBLICLY OFFERED REIT DEBT 
INSTRUMENT.—The term ‘nonqualified publicly offered 
REIT debt instrument’ means any real estate asset 
which would cease to be a real estate asset if subpara-
graph (B) were applied without regard to the reference 
to ‘debt instruments issued by publicly offered REITs’.’’. 
(b) INTERESTS IN MORTGAGES ON INTERESTS IN REAL PROPERTY 
TREATED AS REAL ESTATE ASSETS.—Subparagraph (B) of section 
856(c)(5) is amended by inserting ‘‘or on interests in real property’’ 
after ‘‘interests in mortgages on real property’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015.
H. R. 2029—854 
SEC. 318. ASSET AND INCOME TEST CLARIFICATION REGARDING 
ANCILLARY PERSONAL PROPERTY. 
(a) IN GENERAL.—Subsection (c) of section 856, as amended 
by the preceding provisions of this Act, is amended by redesignating 
paragraph (9) as paragraph (10) and by inserting after paragraph 
(8) the following new paragraph: 
‘‘(9) SPECIAL
RULES
FOR
CERTAIN
PERSONAL
PROPERTY 
WHICH IS ANCILLARY TO REAL PROPERTY.— 
‘‘(A) CERTAIN PERSONAL PROPERTY LEASED IN CONNEC-
TION
WITH
REAL
PROPERTY.—Personal property shall be 
treated as a real estate asset for purposes of paragraph 
(4)(A) to the extent that rents attributable to such personal 
property are treated as rents from real property under 
subsection (d)(1)(C). 
‘‘(B) CERTAIN
PERSONAL
PROPERTY
MORTGAGED
IN 
CONNECTION
WITH
REAL
PROPERTY.—In the case of an 
obligation secured by a mortgage on both real property 
and personal property, if the fair market value of such 
personal property does not exceed 15 percent of the total 
fair market value of all such property, such obligation 
shall be treated— 
‘‘(i) for purposes of paragraph (3)(B), as an obliga-
tion described therein, and 
‘‘(ii) for purposes of paragraph (4)(A), as a real 
estate asset. 
For purposes of the preceding sentence, the fair market 
value of all such property shall be determined in the same 
manner as the fair market value of real property is deter-
mined for purposes of apportioning interest income between 
real property and personal property under paragraph 
(3)(B).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 319. HEDGING PROVISIONS. 
(a) MODIFICATION TO PERMIT THE TERMINATION OF A HEDGING 
TRANSACTION
USING
AN
ADDITIONAL
HEDGING
INSTRUMENT.— 
Subparagraph (G) of section 856(c)(5) is amended by striking ‘‘and’’ 
at the end of clause (i), by striking the period at the end of 
clause (ii) and inserting ‘‘, and’’, and by adding at the end the 
following new clause: 
‘‘(iii) if— 
‘‘(I) a real estate investment trust enters into 
one or more positions described in clause (i) with 
respect to indebtedness described in clause (i) or 
one or more positions described in clause (ii) with 
respect to property which generates income or gain 
described in paragraph (2) or (3), 
‘‘(II) any portion of such indebtedness is extin-
guished or any portion of such property is disposed 
of, and 
‘‘(III) in connection with such extinguishment 
or disposition, such trust enters into one or more 
transactions which would be hedging transactions 
described 
in 
clause 
(ii) 
or 
(iii) 
of 
section 
1221(b)(2)(A) with respect to any position referred
H. R. 2029—855 
to in subclause (I) if such position were ordinary 
property, 
any income of such trust from any position referred 
to in subclause (I) and from any transaction referred 
to in subclause (III) (including gain from the termi-
nation of any such position or transaction) shall not 
constitute gross income under paragraphs (2) and (3) 
to the extent that such transaction hedges such posi-
tion.’’. 
(b) IDENTIFICATION REQUIREMENTS.— 
(1) IN GENERAL.—Subparagraph (G) of section 856(c)(5), 
as amended by subsection (a), 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) clauses (i), (ii), and (iii) shall not apply with 
respect to any transaction unless such transaction 
satisfies the identification requirement described in 
section 1221(a)(7) (determined after taking into account 
any curative provisions provided under the regulations 
referred to therein).’’. 
(2) CONFORMING AMENDMENTS.—Subparagraph (G) of sec-
tion 856(c)(5) is amended— 
(A) by striking ‘‘which is clearly identified pursuant 
to section 1221(a)(7)’’ in clause (i), and 
(B) by striking ‘‘, but only if such transaction is clearly 
identified as such before the close of the day on which 
it was acquired, originated, or entered into (or such other 
time as the Secretary may prescribe)’’ in clause (ii). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 320. MODIFICATION OF REIT EARNINGS AND PROFITS CALCULA-
TION TO AVOID DUPLICATE TAXATION. 
(a) EARNINGS
AND
PROFITS
NOT
INCREASED
BY
AMOUNTS 
ALLOWED IN COMPUTING TAXABLE INCOME IN PRIOR YEARS.—Section 
857(d) is amended— 
(1) by amending paragraph (1) to read as follows: 
‘‘(1) IN GENERAL.—The earnings and profits of a real estate 
investment trust for any taxable year (but not its accumulated 
earnings) shall not be reduced by any amount which— 
‘‘(A) is not allowable in computing its taxable income 
for such taxable year, and 
‘‘(B) was not allowable in computing its taxable income 
for any prior taxable year.’’, and 
(2) by adding at the end the following new paragraphs: 
‘‘(4) REAL ESTATE INVESTMENT TRUST.—For purposes of this 
subsection, the term ‘real estate investment trust’ includes 
a domestic corporation, trust, or association which is a real 
estate investment trust determined without regard to the 
requirements of subsection (a). 
‘‘(5) SPECIAL
RULES
FOR
DETERMINING
EARNINGS
AND 
PROFITS
FOR
PURPOSES
OF
THE
DEDUCTION
FOR
DIVIDENDS 
PAID.—For special rules for determining the earnings and 
profits of a real estate investment trust for purposes of the 
deduction for dividends paid, see section 562(e)(1).’’.
H. R. 2029—856 
(b) EXCEPTION FOR PURPOSES OF DETERMINING DIVIDENDS PAID 
DEDUCTION.—Section 562(e)(1), as amended by the preceding provi-
sions of this Act, is amended by striking ‘‘deduction, the earnings’’ 
and all that follows and inserting the following: ‘‘deduction— 
‘‘(A) the earnings and profits of such trust for any 
taxable year (but not its accumulated earnings) shall be 
increased by the amount of gain (if any) on the sale or 
exchange of real property which is taken into account in 
determining the taxable income of such trust for such tax-
able year (and not otherwise taken into account in deter-
mining such earnings and profits), and 
‘‘(B) section 857(d)(1) shall be applied without regard 
to subparagraph (B) thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 321. TREATMENT OF CERTAIN SERVICES PROVIDED BY TAXABLE 
REIT SUBSIDIARIES. 
(a) TAXABLE REIT SUBSIDIARIES TREATED IN SAME MANNER 
AS INDEPENDENT CONTRACTORS FOR CERTAIN PURPOSES.— 
(1) MARKETING AND DEVELOPMENT EXPENSES UNDER RENTAL 
PROPERTY SAFE HARBOR.—Clause (v) of section 857(b)(6)(C) is 
amended by inserting ‘‘or a taxable REIT subsidiary’’ before 
the period at the end. 
(2) MARKETING EXPENSES UNDER TIMBER SAFE HARBOR.— 
Clause (v) of section 857(b)(6)(D) is amended by striking ‘‘, 
in the case of a sale on or before the termination date,’’. 
(3) FORECLOSURE PROPERTY GRACE PERIOD.—Subparagraph 
(C) of section 856(e)(4) is amended by inserting ‘‘or through 
a taxable REIT subsidiary’’ after ‘‘receive any income’’. 
(b) TAX ON REDETERMINED TRS SERVICE INCOME.— 
(1) IN
GENERAL.—Subparagraph (A) of section 857(b)(7) 
is amended by striking ‘‘and excess interest’’ and inserting 
‘‘excess interest, and redetermined TRS service income’’. 
(2) REDETERMINED
TRS
SERVICE
INCOME.—Paragraph (7) 
of section 857(b) is amended by redesignating subparagraphs 
(E) and (F) as subparagraphs (F) and (G), respectively, and 
inserting after subparagraph (D) the following new subpara-
graph: 
‘‘(E) REDETERMINED TRS SERVICE INCOME.— 
‘‘(i) IN
GENERAL.—The term ‘redetermined TRS 
service income’ means gross income of a taxable REIT 
subsidiary of a real estate investment trust attrib-
utable to services provided to, or on behalf of, such 
trust (less deductions properly allocable thereto) to 
the extent the amount of such income (less such deduc-
tions) would (but for subparagraph (F)) be increased 
on distribution, apportionment, or allocation under sec-
tion 482. 
‘‘(ii) COORDINATION WITH REDETERMINED RENTS.— 
Clause (i) shall not apply with respect to gross income 
attributable to services furnished or rendered to a ten-
ant of the real estate investment trust (or to deductions 
properly allocable thereto).’’. 
(3) CONFORMING AMENDMENTS.—Subparagraphs (B)(i) and 
(C) of section 857(b)(7) are each amended by striking ‘‘subpara-
graph (E)’’ and inserting ‘‘subparagraph (F)’’.
H. R. 2029—857 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 322. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK OF REITS. 
(a) MODIFICATIONS OF OWNERSHIP RULES.— 
(1) IN GENERAL.—Section 897 is amended by adding at 
the end the following new subsection: 
‘‘(k) SPECIAL RULES RELATING TO REAL ESTATE INVESTMENT 
TRUSTS.— 
‘‘(1) INCREASE IN PERCENTAGE OWNERSHIP FOR EXCEPTIONS 
FOR PERSONS HOLDING PUBLICLY TRADED STOCK.— 
‘‘(A) DISPOSITIONS.—In the case of any disposition of 
stock in a real estate investment trust, paragraphs (3) 
and (6)(C) of subsection (c) shall each be applied by sub-
stituting ‘more than 10 percent’ for ‘more than 5 percent’. 
‘‘(B) DISTRIBUTIONS.—In the case of any distribution 
from a real estate investment trust, subsection (h)(1) shall 
be applied by substituting ‘10 percent’ for ‘5 percent’. 
‘‘(2) STOCK HELD BY QUALIFIED SHAREHOLDERS NOT TREATED 
AS USRPI.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B)— 
‘‘(i) stock of a real estate investment trust which 
is held directly (or indirectly through 1 or more part-
nerships) by a qualified shareholder shall not be 
treated as a United States real property interest, and 
‘‘(ii) notwithstanding subsection (h)(1), any dis-
tribution to a qualified shareholder shall not be treated 
as gain recognized from the sale or exchange of a 
United States real property interest to the extent the 
stock of the real estate investment trust held by such 
qualified shareholder is not treated as a United States 
real property interest under clause (i). 
‘‘(B) EXCEPTION.—In the case of a qualified shareholder 
with 1 or more applicable investors— 
‘‘(i) subparagraph (A)(i) shall not apply to so much 
of the stock of a real estate investment trust held 
by a qualified shareholder as bears the same ratio 
to the value of the interests (other than interests held 
solely as a creditor) held by such applicable investors 
in the qualified shareholder bears to value of all 
interests (other than interests held solely as a creditor) 
in the qualified shareholder, and 
‘‘(ii) a percentage equal to the ratio determined 
under clause (i) of the amounts realized by the qualified 
shareholder with respect to any disposition of stock 
in the real estate investment trust or with respect 
to any distribution from the real estate investment 
trust attributable to gain from sales or exchanges of 
a United States real property interest shall be treated 
as amounts realized from the disposition of United 
States real property interests. 
‘‘(C) 
SPECIAL
RULE
FOR
CERTAIN
DISTRIBUTIONS 
TREATED AS SALE OR EXCHANGE.—If a distribution by a 
real estate investment trust is treated as a sale or exchange 
of stock under section 301(c)(3), 302, or 331 with respect 
to a qualified shareholder—
H. R. 2029—858 
‘‘(i) in the case of an applicable investor, subpara-
graph (B) shall apply with respect to such distribution, 
and 
‘‘(ii) in the case of any other person, such distribu-
tion shall be treated under section 857(b)(3)(F) as a 
dividend from a real estate investment trust notwith-
standing any other provision of this title. 
‘‘(D) APPLICABLE INVESTOR.—For purposes of this para-
graph, the term ‘applicable investor’ means, with respect 
to any qualified shareholder holding stock in a real estate 
investment trust, a person (other than a qualified share-
holder) which— 
‘‘(i) holds an interest (other than an interest solely 
as a creditor) in such qualified shareholder, and 
‘‘(ii) holds more than 10 percent of the stock of 
such real estate investment trust (whether or not by 
reason of the person’s ownership interest in the quali-
fied shareholder). 
‘‘(E) CONSTRUCTIVE OWNERSHIP RULES.—For purposes 
of subparagraphs (B)(i) and (C) and paragraph (4), the 
constructive ownership rules under subsection (c)(6)(C) 
shall apply. 
‘‘(3) QUALIFIED SHAREHOLDER.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘qualified shareholder’ 
means a foreign person which— 
‘‘(i)(I) is eligible for benefits of a comprehensive 
income tax treaty with the United States which 
includes an exchange of information program and the 
principal class of interests of which is listed and regu-
larly traded on 1 or more recognized stock exchanges 
(as defined in such comprehensive income tax treaty), 
or 
‘‘(II) is a foreign partnership that is created or 
organized under foreign law as a limited partnership 
in a jurisdiction that has an agreement for the 
exchange of information with respect to taxes with 
the United States and has a class of limited partner-
ship units which is regularly traded on the New York 
Stock Exchange or Nasdaq Stock Market and such 
class of limited partnership units value is greater than 
50 percent of the value of all the partnership units, 
‘‘(ii) is a qualified collective investment vehicle, 
and 
‘‘(iii) maintains records on the identity of each 
person who, at any time during the foreign person’s 
taxable year, holds directly 5 percent or more of the 
class of interest described in subclause (I) or (II) of 
clause (i), as the case may be. 
‘‘(B) QUALIFIED COLLECTIVE INVESTMENT VEHICLE.—For 
purposes of this subsection, the term ‘qualified collective 
investment vehicle’ means a foreign person— 
‘‘(i) which, under the comprehensive income tax 
treaty described in subparagraph (A)(i), is eligible for 
a reduced rate of withholding with respect to ordinary 
dividends paid by a real estate investment trust even
H. R. 2029—859 
if such person holds more than 10 percent of the stock 
of such real estate investment trust, 
‘‘(ii) which— 
‘‘(I) is a publicly traded partnership (as defined 
in section 7704(b)) to which subsection (a) of sec-
tion 7704 does not apply, 
‘‘(II) is a withholding foreign partnership for 
purposes of chapters 3, 4, and 61, 
‘‘(III) if such foreign partnership were a United 
States corporation, would be a United States real 
property holding corporation (determined without 
regard to paragraph (1)) at any time during the 
5-year period ending on the date of disposition 
of, or distribution with respect to, such partner-
ship’s interests in a real estate investment trust, 
or 
‘‘(iii) which is designated as a qualified collective 
investment vehicle by the Secretary and is either— 
‘‘(I) fiscally transparent within the meaning 
of section 894, or 
‘‘(II) required to include dividends in its gross 
income, but entitled to a deduction for distributions 
to persons holding interests (other than interests 
solely as a creditor) in such foreign person. 
‘‘(4) PARTNERSHIP ALLOCATIONS.— 
‘‘(A) IN GENERAL.—For the purposes of this subsection, 
in the case of an applicable investor who is a nonresident 
alien individual or a foreign corporation and is a partner 
in a partnership that is a qualified shareholder, if such 
partner’s proportionate share of USRPI gain for the taxable 
year exceeds such partner’s distributive share of USRPI 
gain for the taxable year, then 
‘‘(i) such partner’s distributive share of the amount 
of gain taken into account under subsection (a)(1) by 
the partner for the taxable year (determined without 
regard to this paragraph) shall be increased by the 
amount of such excess, and 
‘‘(ii) such partner’s distributive share of items of 
income or gain for the taxable year that are not treated 
as gain taken into account under subsection (a)(1) 
(determined without regard to this paragraph) shall 
be decreased (but not below zero) by the amount of 
such excess. 
‘‘(B) USRPI GAIN.—For the purposes of this paragraph, 
the term ‘USRPI gain’ means the excess (if any) of— 
‘‘(i) the sum of— 
‘‘(I) any gain recognized from the disposition 
of a United States real property interest, and 
‘‘(II) any distribution by a real estate invest-
ment trust that is treated as gain recognized from 
the sale or exchange of a United States real prop-
erty interest, over 
‘‘(ii) any loss recognized from the disposition of 
a United States real property interest. 
‘‘(C) PROPORTIONATE SHARE OF USRPI GAIN.—For pur-
poses of this paragraph, an applicable investor’s propor-
tionate share of USRPI gain shall be determined on the
H. R. 2029—860 
basis of such investor’s share of partnership items of income 
or gain (excluding gain allocated under section 704(c)), 
whichever results in the largest proportionate share. If 
the investor’s share of partnership items of income or gain 
(excluding gain allocated under section 704(c)) may vary 
during the period such investor is a partner in the partner-
ship, such share shall be the highest share such investor 
may receive.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 897(c)(1)(A) is amended by inserting ‘‘or 
subsection (k)’’ after ‘‘subparagraph (B)’’ in the matter pre-
ceding clause (i). 
(B) Section 857(b)(3)(F) is amended by inserting ‘‘or 
subparagraph (A)(ii) or (C) of section 897(k)(2)’’ after 
‘‘897(h)(1)’’. 
(b) DETERMINATION OF DOMESTIC CONTROL.— 
(1) SPECIAL OWNERSHIP RULES.— 
(A) IN
GENERAL.—Section 897(h)(4) is amended by 
adding at the end the following new subparagraph: 
‘‘(E) SPECIAL
OWNERSHIP
RULES.—For purposes of 
determining the holder of stock under subparagraphs (B) 
and (C)— 
‘‘(i) in the case of any class of stock of the qualified 
investment entity which is regularly traded on an 
established securities market in the United States, 
a person holding less than 5 percent of such class 
of stock at all times during the testing period shall 
be treated as a United States person unless the quali-
fied investment entity has actual knowledge that such 
person is not a United States person, 
‘‘(ii) any stock in the qualified investment entity 
held by another qualified investment entity— 
‘‘(I) any class of stock of which is regularly 
traded on an established securities market, or 
‘‘(II) which is a regulated investment company 
which issues redeemable securities (within the 
meaning of section 2 of the Investment Company 
Act of 1940), 
shall be treated as held by a foreign person, except 
that if such other qualified investment entity is domes-
tically controlled (determined after application of this 
subparagraph), such stock shall be treated as held 
by a United States person, and 
‘‘(iii) any stock in the qualified investment entity 
held by any other qualified investment entity not 
described in subclause (I) or (II) of clause (ii) shall 
only be treated as held by a United States person 
in proportion to the stock of such other qualified invest-
ment entity which is (or is treated under clause (ii) 
or (iii) as) held by a United States person.’’. 
(B) CONFORMING AMENDMENT.—The heading for para-
graph (4) of section 897(h) is amended by inserting ‘‘AND 
SPECIAL RULES’’ after ‘‘DEFINITIONS’’. 
(2) 
TECHNICAL
AMENDMENT.—Clause 
(ii) 
of 
section 
897(h)(4)(A) is amended by inserting ‘‘and for purposes of deter-
mining whether a real estate investment trust is a domestically
H. R. 2029—861 
controlled qualified investment entity under this subsection’’ 
after ‘‘real estate investment trust’’. 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by subsection 
(a) shall take effect on the date of enactment and shall apply 
to— 
(A) any disposition on and after the date of the enact-
ment of this Act, and 
(B) any distribution by a real estate investment trust 
on or after the date of the enactment of this Act which 
is treated as a deduction for a taxable year of such trust 
ending after such date. 
(2) DETERMINATION OF DOMESTIC CONTROL.—The amend-
ments made by subsection (b)(1) shall take effect on the date 
of the enactment of this Act. 
(3) TECHNICAL
AMENDMENT.—The amendment made by 
subsection (b)(2) shall take effect on January 1, 2015. 
SEC. 323. EXCEPTION FOR INTERESTS HELD BY FOREIGN RETIREMENT 
OR PENSION FUNDS. 
(a) IN GENERAL.—Section 897, as amended by the preceding 
provisions of this Act, is amended by adding at the end the following 
new subsection: 
‘‘(l) EXCEPTION
FOR INTERESTS HELD
BY FOREIGN PENSION 
FUNDS.— 
‘‘(1) IN
GENERAL.—This section shall not apply to any 
United States real property interest held directly (or indirectly 
through 1 or more partnerships) by, or to any distribution 
received from a real estate investment trust by— 
‘‘(A) a qualified foreign pension fund, or 
‘‘(B) any entity all of the interests of which are held 
by a qualified foreign pension fund. 
‘‘(2) QUALIFIED FOREIGN PENSION FUND.—For purposes of 
this subsection, the term ‘qualified foreign pension fund’ means 
any trust, corporation, or other organization or arrangement— 
‘‘(A) which is created or organized under the law of 
a country other than the United States, 
‘‘(B) which is established to provide retirement or pen-
sion benefits to participants or beneficiaries that are cur-
rent or former employees (or persons designated by such 
employees) of one or more employers in consideration for 
services rendered, 
‘‘(C) which does not have a single participant or bene-
ficiary with a right to more than five percent of its assets 
or income, 
‘‘(D) which is subject to government regulation and 
provides annual information reporting about its bene-
ficiaries to the relevant tax authorities in the country in 
which it is established or operates, and 
‘‘(E) with respect to which, under the laws of the 
country in which it is established or operates— 
‘‘(i) contributions to such trust, corporation, 
organization, or arrangement which would otherwise 
be subject to tax under such laws are deductible or 
excluded from the gross income of such entity or taxed 
at a reduced rate, or
H. R. 2029—862 
‘‘(ii) taxation of any investment income of such 
trust, corporation, organization or arrangement is 
deferred or such income is taxed at a reduced rate. 
‘‘(3) REGULATIONS.—The Secretary shall prescribe such 
regulations as may be necessary or appropriate to carry out 
the purposes of this subsection.’’. 
(b) EXEMPTION
FROM
WITHHOLDING.—Section 1445(f)(3) is 
amended by striking ‘‘any person’’ and all that follows and inserting 
the following: ‘‘any person other than— 
‘‘(A) a United States person, and 
‘‘(B) except as otherwise provided by the Secretary, 
an entity with respect to which section 897 does not apply 
by reason of subsection (l) thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to dispositions and distributions after the date of the 
enactment of this Act. 
SEC. 324. INCREASE IN RATE OF WITHHOLDING OF TAX ON DISPOSI-
TIONS OF UNITED STATES REAL PROPERTY INTERESTS. 
(a) IN GENERAL.—Subsections (a), (e)(3), (e)(4), and (e)(5) of 
section 1445 are each amended by striking ‘‘10 percent’’ and 
inserting ‘‘15 percent’’. 
(b) EXCEPTION FOR CERTAIN RESIDENCES.—Section 1445(c) is 
amended by adding at the end the following new paragraph: 
‘‘(4) REDUCED RATE OF WITHHOLDING FOR RESIDENCE WHERE 
AMOUNT REALIZED DOES NOT EXCEED $1,000,000.—In the case 
of a disposition— 
‘‘(A) of property which is acquired by the transferee 
for use by the transferee as a residence, 
‘‘(B) with respect to which the amount realized for 
such property does not exceed $1,000,000, and 
‘‘(C) to which subsection (b)(5) does not apply, 
subsection (a) shall be applied by substituting ‘10 percent’ 
for ‘15 percent’.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to dispositions after the date which is 60 days after 
the date of the enactment of this Act. 
SEC. 325. INTERESTS IN RICS AND REITS NOT EXCLUDED FROM DEFI-
NITION OF UNITED STATES REAL PROPERTY INTERESTS. 
(a) IN GENERAL.—Section 897(c)(1)(B) is amended by striking 
‘‘and’’ at the end of clause (i), by striking the period at the end 
of clause (ii)(II) and inserting ‘‘, and’’, and by adding at the end 
the following new clause: 
‘‘(iii) neither such corporation nor any predecessor 
of such corporation was a regulated investment com-
pany or a real estate investment trust at any time 
during the shorter of the periods described in subpara-
graph (A)(ii).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to dispositions on or after the date of the enactment 
of this Act. 
SEC. 326. DIVIDENDS DERIVED FROM RICS AND REITS INELIGIBLE 
FOR DEDUCTION FOR UNITED STATES SOURCE PORTION 
OF DIVIDENDS FROM CERTAIN FOREIGN CORPORATIONS. 
(a) IN GENERAL.—Section 245(a) is amended by adding at the 
end the following new paragraph:
H. R. 2029—863 
‘‘(12) DIVIDENDS DERIVED FROM RICS AND REITS INELIGIBLE 
FOR
DEDUCTION.—Regulated investment companies and real 
estate investment trusts shall not be treated as domestic cor-
porations for purposes of paragraph (5)(B).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to dividends received from regulated investment compa-
nies and real estate investment trusts on or after the date of 
the enactment of this Act. 
(c) NO INFERENCE.—Nothing contained in this section or the 
amendments made by this section shall be construed to create 
any inference with respect to the proper treatment under section 
245 of the Internal Revenue Code of 1986 of dividends received 
from regulated investment companies or real estate investment 
trusts before the date of the enactment of this Act. 
Subtitle C—Additional Provisions 
SEC. 331. DEDUCTIBILITY OF CHARITABLE CONTRIBUTIONS TO AGRI-
CULTURAL RESEARCH ORGANIZATIONS. 
(a) IN GENERAL.—Subparagraph (A) of section 170(b)(1) is 
amended by striking ‘‘or’’ at the end of clause (vii), by striking 
the comma at the end of clause (viii) and inserting ‘‘, or’’, and 
by inserting after clause (viii) the following new clause: 
‘‘(ix) an agricultural research organization directly 
engaged in the continuous active conduct of agricul-
tural research (as defined in section 1404 of the Agri-
cultural Research, Extension, and Teaching Policy Act 
of 1977) in conjunction with a land-grant college or 
university (as defined in such section) or a non-land 
grant college of agriculture (as defined in such section), 
and during the calendar year in which the contribution 
is made such organization is committed to spend such 
contribution for such research before January 1 of the 
fifth calendar year which begins after the date such 
contribution is made,’’. 
(b) EXPENDITURES TO INFLUENCE LEGISLATION.—Paragraph (4) 
of section 501(h) is amended by redesignating subparagraphs (E) 
and (F) as subparagraphs (F) and (G), respectively, and by inserting 
after subparagraph (D) the following new subparagraph: 
‘‘(E) section 170(b)(1)(A)(ix) (relating to agricultural 
research organizations),’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made on and after the date of the 
enactment of this Act. 
SEC. 332. REMOVAL OF BOND REQUIREMENTS AND EXTENDING FILING 
PERIODS FOR CERTAIN TAXPAYERS WITH LIMITED EXCISE 
TAX LIABILITY. 
(a) FILING REQUIREMENTS.—Paragraph (4) of section 5061(d) 
of the Internal Revenue Code of 1986 is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘In the case of’’ and inserting the fol-
lowing: 
‘‘(i) MORE THAN $1,000 AND NOT MORE THAN $50,000 
IN TAXES.—Except as provided in clause (ii), in the 
case of’’,
H. R. 2029—864 
(B) by striking ‘‘under bond for deferred payment’’, 
and 
(C) by adding at the end the following new clause: 
‘‘(ii) NOT MORE THAN $1,000 IN TAXES.—In the case 
of any taxpayer who reasonably expects to be liable 
for not more than $1,000 in taxes imposed with respect 
to distilled spirits, wines, and beer under subparts 
A, C, and D and section 7652 for the calendar year 
and who was liable for not more than $1,000 in such 
taxes in the preceding calendar year, the last day 
for the payment of tax on withdrawals, removals, and 
entries (and articles brought into the United States 
from Puerto Rico) shall be the 14th day after the 
last day of the calendar year.’’, and 
(2) in subparagraph (B)— 
(A) by striking ‘‘Subparagraph (A)’’ and inserting the 
following: 
‘‘(i) EXCEEDS $50,000 LIMIT.—Subparagraph (A)(i)’’, 
and 
(B) by adding at the end the following new clause: 
‘‘(ii) EXCEEDS $1,000 LIMIT.—Subparagraph (A)(ii) 
shall not apply to any taxpayer for any portion of 
the calendar year following the first date on which 
the aggregate amount of tax due under subparts A, 
C, and D and section 7652 from such taxpayer during 
such calendar year exceeds $1,000, and any tax under 
such subparts which has not been paid on such date 
shall be due on the 14th day after the last day of 
the calendar quarter in which such date occurs.’’. 
(b) BOND REQUIREMENTS.— 
(1) IN GENERAL.—Section 5551 of such Code is amended— 
(A) in subsection (a), by striking ‘‘No individual’’ and 
inserting ‘‘Except as provided under subsection (d), no indi-
vidual’’, and 
(B) by adding at the end the following new subsection: 
‘‘(d) REMOVAL OF BOND REQUIREMENTS.— 
‘‘(1) IN GENERAL.—During any period to which subpara-
graph (A) of section 5061(d)(4) applies to a taxpayer (determined 
after application of subparagraph (B) thereof), such taxpayer 
shall not be required to furnish any bond covering operations 
or withdrawals of distilled spirits or wines for nonindustrial 
use or of beer. 
‘‘(2) SATISFACTION OF BOND REQUIREMENTS.—Any taxpayer 
for any period described in paragraph (1) shall be treated 
as if sufficient bond has been furnished for purposes of covering 
operations and withdrawals of distilled spirits or wines for 
nonindustrial use or of beer for purposes of any requirements 
relating to bonds under this chapter.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) BONDS
FOR
DISTILLED
SPIRITS
PLANTS.—Section 
5173(a) of such Code is amended— 
(i) in paragraph (1), by striking ‘‘No person’’ and 
inserting ‘‘Except as provided under section 5551(d), 
no person’’, and 
(ii) in paragraph (2), by striking ‘‘No distilled 
spirits’’ and inserting ‘‘Except as provided under section 
5551(d), no distilled spirits’’.
H. R. 2029—865 
(B) BONDED WINE CELLARS.—Section 5351 of such Code 
is amended— 
(i) by striking ‘‘Any person’’ and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.—Any person’’, 
(ii) by inserting ‘‘, except as provided under section 
5551(d),’’ before ‘‘file bond’’, 
(iii) by striking ‘‘Such premises shall’’ and all that 
follows through the period, and 
(iv) by adding at the end the following new sub-
section: 
‘‘(b) DEFINITIONS.—For purposes of this chapter— 
‘‘(1) BONDED WINE CELLAR.—The term ‘bonded wine cellar’ 
means any premises described in subsection (a), including any 
such premises established by a taxpayer described in section 
5551(d). 
‘‘(2) BONDED WINERY.—At the discretion of the Secretary, 
any bonded wine cellar that engages in production operations 
may be designated as a ‘bonded winery’.’’. 
(C) BONDS FOR BREWERIES.—Section 5401 of such Code 
is amended by adding at the end the following new sub-
section: 
‘‘(c) EXCEPTION FROM BOND REQUIREMENTS FOR CERTAIN BREW-
ERIES.—Subsection (b) shall not apply to any taxpayer for any 
period described in section 5551(d).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any calendar quarters beginning more than 1 year 
after the date of the enactment of this Act. 
SEC. 333. MODIFICATIONS TO ALTERNATIVE TAX FOR CERTAIN SMALL 
INSURANCE COMPANIES. 
(a) ADDITIONAL
REQUIREMENT
FOR
COMPANIES
TO
WHICH 
ALTERNATIVE TAX APPLIES.— 
(1) ADDED REQUIREMENT.— 
(A) IN GENERAL.—Subparagraph (A) of section 831(b)(2) 
is amended— 
(i) by striking ‘‘(including interinsurers and recip-
rocal underwriters)’’, and 
(ii) by striking ‘‘and’’ at the end of clause (i), by 
redesignating clause (ii) as clause (iii), and by inserting 
after clause (i) the following new clause: 
‘‘(ii) such company meets the diversification 
requirements of subparagraph (B), and’’. 
(B) DIVERSIFICATION REQUIREMENT.—Paragraph (2) of 
section 831(b) is amended by redesignating subparagraphs 
(B) as subparagraph (C) and by inserting after subpara-
graph (A) the following new subparagraph: 
‘‘(B) DIVERSIFICATION REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—An insurance company meets 
the requirements of this subparagraph if— 
‘‘(I) no more than 20 percent of the net written 
premiums (or, if greater, direct written premiums) 
of such company for the taxable year is attrib-
utable to any one policyholder, or 
‘‘(II) such insurance company does not meet 
the requirement of subclause (I) and no person 
who holds (directly or indirectly) an interest in
H. R. 2029—867 
‘‘(d) REPORTING.—Every insurance company for which an elec-
tion is in effect under subsection (b) for any taxable year shall 
furnish to the Secretary at such time and in such manner as 
the Secretary shall prescribe such information for such taxable 
year as the Secretary shall require with respect to the requirements 
of subsection (b)(2)(A)(ii).’’. 
(b) INCREASE IN LIMITATION ON PREMIUMS.— 
(1) IN
GENERAL.—Clause (i) of section 831(b)(2)(A) is 
amended by striking ‘‘$1,200,000’’ and inserting ‘‘$2,200,000’’. 
(2) INFLATION
ADJUSTMENT.—Paragraph (2) of section 
831(b), as amended by subsection (a)(1)(B), is amended by 
adding at the end the following new subparagraph: 
‘‘(D) INFLATION ADJUSTMENT.—In the case of any tax-
able year beginning in a calendar year after 2015, the 
dollar amount set forth in subparagraph (A)(i) shall be 
increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 2013’ for ‘calendar year 1992’ 
in subparagraph (B) thereof. 
If the amount as adjusted under the preceding sentence 
is not a multiple of $50,000, such amount shall be rounded 
to the next lowest multiple of $50,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2016. 
SEC. 334. TREATMENT OF TIMBER GAINS. 
(a) IN GENERAL.—Section 1201(b) is amended to read as follows: 
‘‘(b) SPECIAL RATE FOR QUALIFIED TIMBER GAINS.— 
‘‘(1) IN GENERAL.—If, for any taxable year beginning in 
2016, a corporation has both a net capital gain and qualified 
timber gain— 
‘‘(A) subsection (a) shall apply to such corporation for 
the taxable year without regard to whether the applicable 
tax rate exceeds 35 percent, and 
‘‘(B) the tax computed under subsection (a)(2) shall 
be equal to the sum of— 
‘‘(i) 23.8 percent of the least of— 
‘‘(I) qualified timber gain, 
‘‘(II) net capital gain, or 
‘‘(III) taxable income, plus 
‘‘(ii) 35 percent of the excess (if any) of taxable 
income over the sum of the amounts for which a tax 
was determined under subsection (a)(1) and clause (i). 
‘‘(2) QUALIFIED TIMBER GAIN.—For purposes of this section, 
the term ‘qualified timber gain’ means, with respect to any 
taxpayer for any taxable year, the excess (if any) of— 
‘‘(A) the sum of the taxpayer’s gains described in sub-
sections (a) and (b) of section 631 for such year, over 
‘‘(B) the sum of the taxpayer’s losses described in such 
subsections for such year. 
For purposes of subparagraphs (A) and (B), only timber held 
more than 15 years shall be taken into account.’’. 
(b) CONFORMING AMENDMENT.—Section 55(b) is amended by 
striking paragraph (4).
H. R. 2029—868 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2015. 
SEC. 335. MODIFICATION OF DEFINITION OF HARD CIDER. 
(a) IN GENERAL.—Section 5041 of the Internal Revenue Code 
of 1986 is amended— 
(1) in paragraph (6) of subsection (b), by striking ‘‘which 
is a still wine’’ and all that follows through ‘‘alcohol by volume’’, 
and 
(2) by adding at the end the following new subsection: 
‘‘(g) HARD CIDER.—For purposes of subsection (b)(6), the term 
‘hard cider’ means a wine— 
‘‘(1) containing not more than 0.64 gram of carbon dioxide 
per hundred milliliters of wine, except that the Secretary may 
by regulations prescribe such tolerances to this limitation as 
may be reasonably necessary in good commercial practice, 
‘‘(2) which is derived primarily— 
‘‘(A) from apples or pears, or 
‘‘(B) from— 
‘‘(i) apple juice concentrate or pear juice con-
centrate, and 
‘‘(ii) water, 
‘‘(3) which contains no fruit product or fruit flavoring other 
than apple or pear, and 
‘‘(4) which contains at least one-half of 1 percent and less 
than 8.5 percent alcohol by volume.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to hard cider removed during calendar years beginning 
after December 31, 2016. 
SEC. 336. CHURCH PLAN CLARIFICATION. 
(a) APPLICATION OF CONTROLLED GROUP RULES TO CHURCH 
PLANS.— 
(1) IN GENERAL.—Section 414(c) is amended— 
(A) by striking ‘‘For purposes’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
for purposes’’, and 
(B) by adding at the end the following new paragraph: 
‘‘(2) SPECIAL RULES RELATING TO CHURCH PLANS.— 
‘‘(A) GENERAL RULE.—Except as provided in subpara-
graphs (B) and (C), for purposes of this subsection and 
subsection (m), an organization that is otherwise eligible 
to participate in a church plan shall not be aggregated 
with another such organization and treated as a single 
employer with such other organization for a plan year 
beginning in a taxable year unless— 
‘‘(i) one such organization provides (directly or 
indirectly) at least 80 percent of the operating funds 
for the other organization during the preceding taxable 
year of the recipient organization, and 
‘‘(ii) there is a degree of common management 
or supervision between the organizations such that 
the organization providing the operating funds is 
directly involved in the day-to-day operations of the 
other organization. 
‘‘(B) NONQUALIFIED
CHURCH-CONTROLLED
ORGANIZA-
TIONS.—Notwithstanding subparagraph (A), for purposes
H. R. 2029—869 
of this subsection and subsection (m), an organization that 
is a nonqualified church-controlled organization shall be 
aggregated with 1 or more other nonqualified church-con-
trolled organizations, or with an organization that is not 
exempt from tax under section 501, and treated as a single 
employer with such other organization, if at least 80 per-
cent of the directors or trustees of such other organization 
are either representatives of, or directly or indirectly con-
trolled by, such nonqualified church-controlled organiza-
tion. For purposes of this subparagraph, the term ‘non-
qualified church-controlled organization’ means a church- 
controlled tax-exempt organization described in section 
501(c)(3) that is not a qualified church-controlled organiza-
tion (as defined in section 3121(w)(3)(B)). 
‘‘(C) 
PERMISSIVE
AGGREGATION
AMONG
CHURCH- 
RELATED
ORGANIZATIONS.—The church or convention or 
association of churches with which an organization 
described in subparagraph (A) is associated (within the 
meaning of subsection (e)(3)(D)), or an organization des-
ignated by such church or convention or association of 
churches, may elect to treat such organizations as a single 
employer for a plan year. Such election, once made, shall 
apply to all succeeding plan years unless revoked with 
notice provided to the Secretary in such manner as the 
Secretary shall prescribe. 
‘‘(D) PERMISSIVE DISAGGREGATION OF CHURCH-RELATED 
ORGANIZATIONS.—For purposes of subparagraph (A), in the 
case of a church plan, an employer may elect to treat 
churches (as defined in section 403(b)(12)(B)) separately 
from entities that are not churches (as so defined), without 
regard to whether such entities maintain separate church 
plans. Such election, once made, shall apply to all suc-
ceeding plan years unless revoked with notice provided 
to the Secretary in such manner as the Secretary shall 
prescribe.’’. 
(2) CLARIFICATION RELATING TO APPLICATION OF ANTI-ABUSE 
RULE.—The rule of 26 CFR 1.414(c)–5(f) shall continue to apply 
to each paragraph of section 414(c) of the Internal Revenue 
Code of 1986, as amended by paragraph (1). 
(3) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall apply to years beginning before, on, or after the date 
of the enactment of this Act. 
(b) APPLICATION OF CONTRIBUTION AND FUNDING LIMITATIONS 
TO 403(b) GRANDFATHERED DEFINED BENEFIT PLANS.— 
(1) IN GENERAL.—Section 251(e)(5) of the Tax Equity and 
Fiscal Responsibility Act of 1982 (Public Law 97–248), is 
amended— 
(A) by striking ‘‘403(b)(2)’’ and inserting ‘‘403(b)’’, and 
(B) by inserting before the period at the end the fol-
lowing: ‘‘, and shall be subject to the applicable limitations 
of section 415(b) of such Code as if it were a defined 
benefit plan under section 401(a) of such Code (and not 
to the limitations of section 415(c) of such Code).’’. 
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to years beginning before, on, or after the 
date of the enactment of this Act. 
(c) AUTOMATIC ENROLLMENT BY CHURCH PLANS.—
H. R. 2029—870 
(1) IN GENERAL.—This subsection shall supersede any law 
of a State that relates to wage, salary, or payroll payment, 
collection, deduction, garnishment, assignment, or withholding 
which would directly or indirectly prohibit or restrict the inclu-
sion in any church plan (as defined in section 414(e) of the 
Internal Revenue Code of 1986) of an automatic contribution 
arrangement. 
(2) DEFINITION
OF
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENT.—For purposes of this subsection, the term ‘‘automatic 
contribution arrangement’’ means an arrangement— 
(A) under which a participant may elect to have the 
plan sponsor or the employer make payments as contribu-
tions under the plan on behalf of the participant, or to 
the participant directly in cash, 
(B) under which a participant is treated as having 
elected to have the plan sponsor or the employer make 
such contributions in an amount equal to a uniform 
percentage of compensation provided under the plan until 
the participant specifically elects not to have such contribu-
tions made (or specifically elects to have such contributions 
made at a different percentage), and 
(C) under which the notice and election requirements 
of paragraph (3), and the investment requirements of para-
graph (4), are satisfied. 
(3) NOTICE REQUIREMENTS.— 
(A) IN GENERAL.—The plan sponsor of, or plan adminis-
trator or employer maintaining, an automatic contribution 
arrangement shall, within a reasonable period before the 
first day of each plan year, provide to each participant 
to whom the arrangement applies for such plan year notice 
of the participant’s rights and obligations under the 
arrangement which— 
(i) is sufficiently accurate and comprehensive to 
apprise the participant of such rights and obligations, 
and 
(ii) is written in a manner calculated to be under-
stood by the average participant to whom the arrange-
ment applies. 
(B) ELECTION REQUIREMENTS.—A notice shall not be 
treated as meeting the requirements of subparagraph (A) 
with respect to a participant unless— 
(i) the notice includes an explanation of the partici-
pant’s right under the arrangement not to have elective 
contributions made on the participant’s behalf (or to 
elect to have such contributions made at a different 
percentage), 
(ii) the participant has a reasonable period of time, 
after receipt of the explanation described in clause 
(i) and before the first elective contribution is made, 
to make such election, and 
(iii) the notice explains how contributions made 
under the arrangement will be invested in the absence 
of any investment election by the participant. 
(4) DEFAULT
INVESTMENT.—If no affirmative investment 
election has been made with respect to any automatic contribu-
tion arrangement, contributions to such arrangement shall be 
invested in a default investment selected with the care, skill,
H. R. 2029—871 
prudence, and diligence that a prudent person selecting an 
investment option would use. 
(5) EFFECTIVE DATE.—This subsection shall take effect on 
the date of the enactment of this Act. 
(d) ALLOW CERTAIN PLAN TRANSFERS AND MERGERS.— 
(1) IN GENERAL.—Section 414 is amended by adding at 
the end the following new subsection: 
‘‘(z) CERTAIN PLAN TRANSFERS AND MERGERS.— 
‘‘(1) IN GENERAL.—Under rules prescribed by the Secretary, 
except as provided in paragraph (2), no amount shall be includ-
ible in gross income by reason of— 
‘‘(A) a transfer of all or a portion of the accrued benefit 
of a participant or beneficiary, whether or not vested, from 
a church plan that is a plan described in section 401(a) 
or an annuity contract described in section 403(b) to an 
annuity contract described in section 403(b), if such plan 
and annuity contract are both maintained by the same 
church or convention or association of churches, 
‘‘(B) a transfer of all or a portion of the accrued benefit 
of a participant or beneficiary, whether or not vested, from 
an annuity contract described in section 403(b) to a church 
plan that is a plan described in section 401(a), if such 
plan and annuity contract are both maintained by the 
same church or convention or association of churches, or 
‘‘(C) a merger of a church plan that is a plan described 
in section 401(a), or an annuity contract described in sec-
tion 403(b), with an annuity contract described in section 
403(b), if such plan and annuity contract are both main-
tained by the same church or convention or association 
of churches. 
‘‘(2) LIMITATION.—Paragraph (1) shall not apply to a 
transfer or merger unless the participant’s or beneficiary’s total 
accrued benefit immediately after the transfer or merger is 
equal to or greater than the participant’s or beneficiary’s total 
accrued benefit immediately before the transfer or merger, and 
such total accrued benefit is nonforfeitable after the transfer 
or merger. 
‘‘(3) QUALIFICATION.—A plan or annuity contract shall not 
fail to be considered to be described in section 401(a) or 403(b) 
merely because such plan or annuity contract engages in a 
transfer or merger described in this subsection. 
‘‘(4) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) CHURCH
OR
CONVENTION
OR
ASSOCIATION
OF 
CHURCHES.—The term ‘church or convention or association 
of churches’ includes an organization described in subpara-
graph (A) or (B)(ii) of subsection (e)(3). 
‘‘(B) ANNUITY CONTRACT.—The term ‘annuity contract’ 
includes a custodial account described in section 403(b)(7) 
and a retirement income account described in section 
403(b)(9). 
‘‘(C) ACCRUED
BENEFIT.—The term ‘accrued benefit’ 
means— 
‘‘(i) in the case of a defined benefit plan, the 
employee’s accrued benefit determined under the plan, 
and
H. R. 2029—872 
‘‘(ii) in the case of a plan other than a defined 
benefit plan, the balance of the employee’s account 
under the plan.’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to transfers or mergers occurring after the 
date of the enactment of this Act. 
(e) INVESTMENTS BY CHURCH PLANS IN COLLECTIVE TRUSTS.— 
(1) IN GENERAL.—In the case of— 
(A) a church plan (as defined in section 414(e) of the 
Internal Revenue Code of 1986), including a plan described 
in section 401(a) of such Code and a retirement income 
account described in section 403(b)(9) of such Code, and 
(B) an organization described in section 414(e)(3)(A) 
of such Code the principal purpose or function of which 
is the administration of such a plan or account, 
the assets of such plan, account, or organization (including 
any assets otherwise permitted to be commingled for invest-
ment purposes with the assets of such a plan, account, or 
organization) may be invested in a group trust otherwise 
described in Internal Revenue Service Revenue Ruling 81– 
100 (as modified by Internal Revenue Service Revenue Rulings 
2004–67, 2011–1, and 2014–24), or any subsequent revenue 
ruling that supersedes or modifies such revenue ruling, without 
adversely affecting the tax status of the group trust, such 
plan, account, or organization, or any other plan or trust that 
invests in the group trust. 
(2) EFFECTIVE DATE.—This subsection shall apply to invest-
ments made after the date of the enactment of this Act. 
Subtitle D—Revenue Provisions 
SEC. 341. UPDATED ASHRAE STANDARDS FOR ENERGY EFFICIENT 
COMMERCIAL BUILDINGS DEDUCTION. 
(a) IN GENERAL.—Paragraph (1) of section 179D(c) is amended 
by striking ‘‘Standard 90.1–2001’’ each place it appears and 
inserting ‘‘Standard 90.1–2007’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 179D(c) is amended to read 
as follows: 
‘‘(2) STANDARD 90.1–2007.—The term ‘Standard 90.1–2007’ 
means Standard 90.1–2007 of the American Society of Heating, 
Refrigerating, and Air Conditioning Engineers and the Illu-
minating Engineering Society of North America (as in effect 
on the day before the date of the adoption of Standard 90.1– 
2010 of such Societies).’’. 
(2) Subsection (f) of section 179D is amended by striking 
‘‘Standard 90.1–2001’’ each place it appears in paragraphs (1) 
and (2)(C)(i) and inserting ‘‘Standard 90.1–2007’’. 
(3) Paragraph (1) of section 179D(f) is amended— 
(A) by striking ‘‘Table 9.3.1.1’’ and inserting ‘‘Table 
9.5.1’’, and 
(B) by striking ‘‘Table 9.3.1.2’’ and inserting ‘‘Table 
9.6.1’’. 
(c) EFFECTIVE DATE.—The amendments made by this subsection 
shall apply to property placed in service after December 31, 2015.
H. R. 2029—873 
SEC. 342. EXCISE TAX CREDIT EQUIVALENCY FOR LIQUIFIED PETRO-
LEUM GAS AND LIQUIFIED NATURAL GAS. 
(a) IN GENERAL.—Section 6426 is amended by adding at the 
end the following new subsection: 
‘‘(j) ENERGY EQUIVALENCY DETERMINATIONS
FOR LIQUEFIED 
PETROLEUM GAS AND LIQUEFIED NATURAL GAS.—For purposes of 
determining any credit under this section, any reference to the 
number of gallons of an alternative fuel or the gasoline gallon 
equivalent of such a fuel shall be treated as a reference to— 
‘‘(1) in the case of liquefied petroleum gas, the energy 
equivalent of a gallon of gasoline, as defined in section 
4041(a)(2)(C), and 
‘‘(2) in the case of liquefied natural gas, the energy equiva-
lent of a gallon of diesel, as defined in section 4041(a)(2)(D).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel sold or used after December 31, 2015. 
SEC. 343. EXCLUSION FROM GROSS INCOME OF CERTAIN CLEAN COAL 
POWER GRANTS TO NON-CORPORATE TAXPAYERS. 
(a) GENERAL RULE.—In the case of an eligible taxpayer other 
than a corporation, gross income for purposes of the Internal Rev-
enue Code of 1986 shall not include any amount received under 
section 402 of the Energy Policy Act of 2005. 
(b) REDUCTION IN BASIS.—The basis of any property subject 
to the allowance for depreciation under the Internal Revenue Code 
of 1986 which is acquired with any amount to which subsection 
(a) applies during the 12-month period beginning on the day such 
amount is received shall be reduced by an amount equal to such 
amount. The excess (if any) of such amount over the amount of 
the reduction under the preceding sentence shall be applied to 
the reduction (as of the last day of the period specified in the 
preceding sentence) of the basis of any other property held by 
the taxpayer. The particular properties to which the reductions 
required by this subsection are allocated shall be determined by 
the Secretary of the Treasury (or the Secretary’s delegate) under 
regulations similar to the regulations under section 362(c)(2) of 
such Code. 
(c) LIMITATION TO AMOUNTS WHICH WOULD BE CONTRIBUTIONS 
TO CAPITAL.—Subsection (a) shall not apply to any amount unless 
such amount, if received by a corporation, would be excluded from 
gross income under section 118 of the Internal Revenue Code of 
1986. 
(d) ELIGIBLE TAXPAYER.—For purposes of this section, with 
respect to any amount received under section 402 of the Energy 
Policy Act of 2005, the term ‘‘eligible taxpayer’’ means a taxpayer 
that makes a payment to the Secretary of the Treasury (or the 
Secretary’s delegate) equal to 1.18 percent of the amount so 
received. Such payment shall be made at such time and in such 
manner as such Secretary (or the Secretary’s delegate) shall pre-
scribe. In the case of a partnership, such Secretary (or the Sec-
retary’s delegate) shall prescribe regulations to determine the alloca-
tion of such payment amount among the partners. 
(e) EFFECTIVE DATE.—This section shall apply to amounts 
received under section 402 of the Energy Policy Act of 2005 in 
taxable years beginning after December 31, 2011.
H. R. 2029—874 
SEC. 344. CLARIFICATION OF VALUATION RULE FOR EARLY TERMI-
NATION 
OF 
CERTAIN 
CHARITABLE 
REMAINDER 
UNITRUSTS. 
(a) IN GENERAL.—Section 664(e) is amended— 
(1) by adding at the end the following: ‘‘In the case of 
the early termination of a trust which is a charitable remainder 
unitrust by reason of subsection (d)(3), the valuation of interests 
in such trust for purposes of this section shall be made under 
rules similar to the rules of the preceding sentence.’’, and 
(2) by striking ‘‘FOR PURPOSES OF CHARITABLE CONTRIBU-
TION’’ in the heading thereof and inserting ‘‘OF INTERESTS’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to terminations of trusts occurring after the date of 
the enactment of this Act. 
SEC. 345. PREVENTION OF TRANSFER OF CERTAIN LOSSES FROM TAX 
INDIFFERENT PARTIES. 
(a) IN GENERAL.—Section 267(d) is amended to read as follows: 
‘‘(d) AMOUNT OF GAIN WHERE LOSS PREVIOUSLY DISALLOWED.— 
‘‘(1) IN GENERAL.—If— 
‘‘(A) in the case of a sale or exchange of property 
to the taxpayer a loss sustained by the transferor is not 
allowable to the transferor as a deduction by reason of 
subsection (a)(1), and 
‘‘(B) the taxpayer sells or otherwise disposes of such 
property (or of other property the basis of which in the 
taxpayer’s hands is determined directly or indirectly by 
reference to such property) at a gain, 
then such gain shall be recognized only to the extent that 
it exceeds so much of such loss as is properly allocable to 
the property sold or otherwise disposed of by the taxpayer. 
‘‘(2) EXCEPTION FOR WASH SALES.—Paragraph (1) shall not 
apply if the loss sustained by the transferor is not allowable 
to the transferor as a deduction by reason of section 1091 
(relating to wash sales). 
‘‘(3) EXCEPTION FOR TRANSFERS FROM TAX INDIFFERENT PAR-
TIES.—Paragraph (1) shall not apply to the extent any loss 
sustained by the transferor (if allowed) would not be taken 
into account in determining a tax imposed under section 1 
or 11 or a tax computed as provided by either of such sections.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to sales and other dispositions of property acquired 
after December 31, 2015, by the taxpayer in a sale or exchange 
to which section 267(a)(1) of the Internal Revenue Code of 1986 
applied. 
SEC. 346. TREATMENT OF CERTAIN PERSONS AS EMPLOYERS WITH 
RESPECT TO MOTION PICTURE PROJECTS. 
(a) IN GENERAL.—Chapter 25 (relating to general provisions 
relating to employment taxes) is amended by adding at the end 
the following new section: 
‘‘SEC. 3512. TREATMENT OF CERTAIN PERSONS AS EMPLOYERS WITH 
RESPECT TO MOTION PICTURE PROJECTS. 
‘‘(a) IN GENERAL.—For purposes of sections 3121(a)(1) and 
3306(b)(1), remuneration paid to a motion picture project worker 
by a motion picture project employer during a calendar year shall 
be treated as remuneration paid with respect to employment of
H. R. 2029—875 
such worker by such employer during the calendar year. The 
identity of such employer for such purposes shall be determined 
as set forth in this section and without regard to the usual common 
law rules applicable in determining the employer-employee relation-
ship. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) MOTION
PICTURE
PROJECT
EMPLOYER.—The term 
‘motion picture project employer’ means any person if— 
‘‘(A) such person (directly or through affiliates)— 
‘‘(i) is a party to a written contract covering the 
services of motion picture project workers with respect 
to motion picture projects in the course of a client’s 
trade or business, 
‘‘(ii) is contractually obligated to pay remuneration 
to the motion picture project workers without regard 
to payment or reimbursement by any other person, 
‘‘(iii) controls the payment (within the meaning 
of section 3401(d)(1)) of remuneration to the motion 
picture project workers and pays such remuneration 
from its own account or accounts, 
‘‘(iv) is a signatory to one or more collective bar-
gaining agreements with a labor organization (as 
defined in 29 U.S.C. 152(5)) that represents motion 
picture project workers, and 
‘‘(v) has treated substantially all motion picture 
project workers that such person pays as employees 
and not as independent contractors during such cal-
endar year for purposes of determining employment 
taxes under this subtitle, and 
‘‘(B) at least 80 percent of all remuneration (to which 
section 3121 applies) paid by such person in such calendar 
year is paid to motion picture project workers. 
‘‘(2) MOTION PICTURE PROJECT WORKER.—The term ‘motion 
picture project worker’ means any individual who provides serv-
ices on motion picture projects for clients who are not affiliated 
with the motion picture project employer. 
‘‘(3) MOTION PICTURE PROJECT.—The term ‘motion picture 
project’ means the production of any property described in 
section 168(f)(3). Such term does not include property with 
respect to which records are required to be maintained under 
section 2257 of title 18, United States Code. 
‘‘(4) AFFILIATE; AFFILIATED.—A person shall be treated as 
an affiliate of, or affiliated with, another person if such persons 
are treated as a single employer under subsection (b) or (c) 
of section 414.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for such 
chapter 25 is amended by adding at the end the following new 
item: 
‘‘Sec. 3512. Treatment of certain persons as employers with respect to motion pic-
ture projects.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to remuneration paid after December 31, 2015. 
(d) NO INFERENCE.—Nothing in the amendments made by this 
section shall be construed to create any inference on the law before 
the date of the enactment of this Act.