(3) Section 832(b)(1) of such Code is amended 
by striking ‘‘rates provided in section 11(b)’’ and in-
serting ‘‘rate provided in section 11(b)’’. 
(4) 
Sections 
244(a)(2)(B), 
247(a)(2)(B), 
527(b)(1), 
835(e), 
852(b)(1), 
857(b)(4)(A), 
860G(c)(1), 904(b)(3)(E)(ii)(II), and 1375(a) of 
such Code is amended by striking ‘‘highest rate of 
tax’’ and inserting ‘‘rate of tax’’. 
(5) Sections 860E(e)(2)(B), 860E(e)(6)(A)(ii), 
860K(d)(2)(A)(ii), 
860K(e)(1)(B)(ii), 
1446(b)(2)(B), and 7874(e)(1)(B) of such Code are 
each amended by striking ‘‘highest rate of tax speci-
fied in section 11(b)(1)’’ and inserting ‘‘rate of tax 
specified in section 11(b)’’. 
(6) Section 904(b)(3)(D)(ii) of such Code is 
amended by striking ‘‘(determined without regard to 
the last sentence of section 11(b)(1))’’. 
(7) Section 962 of such Code is amended by 
striking subsection (c) and by redesignating sub-
section (d) as subsection (c). 
(8) Section 1201(a) of such Code is amended— 
(A) by striking ‘‘35 percent (determined 
without regard to the last 2 sentences of section 
11(b)(1))’’ and inserting ‘‘15 percent’’, and 
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(B) by striking ‘‘35 percent’’ in paragraph 
(2) and inserting ‘‘15 percent’’. 
(9) Section 1561(a) of such Code is amended— 
(A) by striking paragraph (1) and by re-
designating paragraphs (2), (3), and (4) as 
paragraphs (1), (2), and (3), respectively, 
(B) by striking ‘‘The amounts specified in 
paragraph (1), the’’ and inserting ‘‘The’’, 
(C) by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraph (1)’’, 
(D) by striking ‘‘paragraph (3)’’ both 
places it appears and inserting ‘‘paragraph 
(2)’’, 
(E) by striking ‘‘paragraph (4)’’ and in-
serting ‘‘paragraph (3)’’, and 
(F) by striking the fourth sentence. 
(10) Subsection (b) of section 1561 of such 
Code is amended to read as follows: 
‘‘(b) CERTAIN SHORT TAXABLE YEARS.—If a cor-
poration has a short taxable year which does not include 
a December 31 and is a component member of a controlled 
group of corporations with respect to such taxable year, 
then for purposes of this subtitle, the amount to be used 
in computing the accumulated earnings credit under sec-
tion 535(c)(2) and (3) of such corporation for such taxable 
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year shall be the amount specified in subsection (a)(1) di-
vided by the number of corporations which are component 
members of such group on the last day of such taxable 
year. For purposes of the preceding sentence, section 
1563(b) shall be applied as if such last day were sub-
stituted for December 31.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 4. ESTATE TAX REPEAL MADE PERMANENT. 
Section 901 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 shall not apply to title V of 
such Act. 
SEC. 5. ELECTION TO EXPENSE BUSINESS ASSETS. 
(a) IN GENERAL.—Section 179 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘SEC. 179. ELECTION TO EXPENSE CERTAIN DEPRECIABLE 
BUSINESS ASSETS. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any property to which this section 
applies as an expense which is not chargeable to capital 
account. Any cost so treated shall be allowed as a deduc-
tion for the taxable year in which such property is placed 
in service. 
‘‘(b) PROPERTY TO WHICH SECTION APPLIES.— 
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