H. R. 8—3 
Sec. 602. Work geographic adjustment. 
Sec. 603. Payment for outpatient therapy services. 
Sec. 604. Ambulance add-on payments. 
Sec. 605. Extension of Medicare inpatient hospital payment adjustment for low-vol-
ume hospitals. 
Sec. 606. Extension of the Medicare-dependent hospital (MDH) program. 
Sec. 607. Extension for specialized Medicare Advantage plans for special needs in-
dividuals. 
Sec. 608. Extension of Medicare reasonable cost contracts. 
Sec. 609. Performance improvement. 
Sec. 610. Extension of funding outreach and assistance for low-income programs. 
Subtitle B—Other Health Extensions 
Sec. 621. Extension of the qualifying individual (QI) program. 
Sec. 622. Extension of Transitional Medical Assistance (TMA). 
Sec. 623. Extension of Medicaid and CHIP Express Lane option. 
Sec. 624. Extension of family-to-family health information centers. 
Sec. 625. Extension of Special Diabetes Program for Type I diabetes and for Indi-
ans. 
Subtitle C—Other Health Provisions 
Sec. 631. IPPS documentation and coding adjustment for implementation of MS- 
DRGs. 
Sec. 632. Revisions to the Medicare ESRD bundled payment system to reflect find-
ings in the GAO report. 
Sec. 633. Treatment of multiple service payment policies for therapy services. 
Sec. 634. Payment for certain radiology services furnished under the Medicare hos-
pital outpatient department prospective payment system. 
Sec. 635. Adjustment of equipment utilization rate for advanced imaging services. 
Sec. 636. Medicare payment of competitive prices for diabetic supplies and elimi-
nation of overpayment for diabetic supplies. 
Sec. 637. Medicare payment adjustment for non-emergency ambulance transports 
for ESRD beneficiaries. 
Sec. 638. Removing obstacles to collection of overpayments. 
Sec. 639. Medicare advantage coding intensity adjustment. 
Sec. 640. Elimination of all funding for the Medicare Improvement Fund. 
Sec. 641. Rebasing of State DSH allotments. 
Sec. 642. Repeal of CLASS program. 
Sec. 643. Commission on Long-Term Care. 
Sec. 644. Consumer Operated and Oriented Plan program contingency fund. 
TITLE VII—EXTENSION OF AGRICULTURAL PROGRAMS 
Sec. 701. 1-year extension of agricultural programs. 
Sec. 702. Supplemental agricultural disaster assistance. 
TITLE VIII—MISCELLANEOUS PROVISIONS 
Sec. 801. Strategic delivery systems. 
Sec. 802. No cost of living adjustment in pay of members of congress. 
TITLE IX—BUDGET PROVISIONS 
Subtitle A—Modifications of Sequestration 
Sec. 901. Treatment of sequester. 
Sec. 902. Amounts in applicable retirement plans may be transferred to designated 
Roth accounts without distribution. 
Subtitle B—Budgetary Effects 
Sec. 911. Budgetary effects. 
TITLE I—GENERAL EXTENSIONS 
SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 2001 TAX 
RELIEF. 
(a) PERMANENT EXTENSION.— 
(1) IN GENERAL.—The Economic Growth and Tax Relief 
Reconciliation Act of 2001 is amended by striking title IX. 
(2) CONFORMING AMENDMENT.—The Tax Relief, Unemploy-
ment Insurance Reauthorization, and Job Creation Act of 2010 
is amended by striking section 304.
H. R. 8—4 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable, plan, or limitation years begin-
ning after December 31, 2012, and estates of decedents dying, 
gifts made, or generation skipping transfers after December 
31, 2012. 
(b) APPLICATION
OF INCOME TAX
TO CERTAIN HIGH-INCOME 
TAXPAYERS.— 
(1) INCOME TAX RATES.— 
(A) TREATMENT
OF
25-, 28-, AND
33-PERCENT
RATE 
BRACKETS.—Paragraph (2) of section 1(i) is amended to 
read as follows: 
‘‘(2) 25-, 28-, AND 33-PERCENT RATE BRACKETS.—The tables 
under subsections (a), (b), (c), (d), and (e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each place it 
appears (before the application of subparagraph (B)), 
‘‘(B) by substituting ‘28%’ for ‘31%’ each place it 
appears, and 
‘‘(C) by substituting ‘33%’ for ‘36%’ each place it 
appears.’’. 
(B) 35-PERCENT RATE BRACKET.—Subsection (i) of sec-
tion 1 is amended by redesignating paragraph (3) as para-
graph (4) and by inserting after paragraph (2) the following 
new paragraph: 
‘‘(3) MODIFICATIONS TO INCOME TAX BRACKETS FOR HIGH- 
INCOME TAXPAYERS.— 
‘‘(A) 35-PERCENT RATE BRACKET.—In the case of taxable 
years beginning after December 31, 2012— 
‘‘(i) the rate of tax under subsections (a), (b), (c), 
and (d) on a taxpayer’s taxable income in the highest 
rate bracket shall be 35 percent to the extent such 
income does not exceed an amount equal to the excess 
of— 
‘‘(I) the applicable threshold, over 
‘‘(II) the dollar amount at which such bracket 
begins, and 
‘‘(ii) the 39.6 percent rate of tax under such sub-
sections shall apply only to the taxpayer’s taxable 
income in such bracket in excess of the amount to 
which clause (i) applies. 
‘‘(B) APPLICABLE
THRESHOLD.—For purposes of this 
paragraph, the term ‘applicable threshold’ means— 
‘‘(i) $450,000 in the case of subsection (a), 
‘‘(ii) $425,000 in the case of subsection (b), 
‘‘(iii) $400,000 in the case of subsection (c), and 
‘‘(iv) 1⁄2 the amount applicable under clause (i) 
(after adjustment, if any, under subparagraph (C)) in 
the case of subsection (d). 
‘‘(C) INFLATION
ADJUSTMENT.—For purposes of this 
paragraph, with respect to taxable years beginning in cal-
endar years after 2013, each of the dollar amounts under 
clauses (i), (ii), and (iii) of subparagraph (B) shall be 
adjusted in the same manner as under paragraph (1)(C)(i), 
except that subsection (f)(3)(B) shall be applied by sub-
stituting ‘2012’ for ‘1992’.’’. 
(2) PHASEOUT
OF
PERSONAL
EXEMPTIONS
AND
ITEMIZED 
DEDUCTIONS.—
H. R. 8—5 
(A) OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.— 
Section 68 is amended— 
(i) by striking subsection (b) and inserting the 
following: 
‘‘(b) APPLICABLE AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘applicable amount’ means— 
‘‘(A) $300,000 in the case of a joint return or a surviving 
spouse (as defined in section 2(a)), 
‘‘(B) $275,000 in the case of a head of household (as 
defined in section 2(b)), 
‘‘(C) $250,000 in the case of an individual who is not 
married and who is not a surviving spouse or head of 
household, and 
‘‘(D) 1⁄2 the amount applicable under subparagraph 
(A) (after adjustment, if any, under paragraph (2)) in the 
case of a married individual filing a separate return. 
For purposes of this paragraph, marital status shall be deter-
mined under section 7703. 
‘‘(2) INFLATION ADJUSTMENT.—In the case of any taxable 
year beginning in calendar years after 2013, each of the dollar 
amounts under subparagraphs (A), (B), and (C) of paragraph 
(1) shall be 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, except that section 1(f)(3)(B) shall be applied 
by substituting ‘2012’ for ‘1992’. 
If any amount after adjustment under the preceding sentence 
is not a multiple of $50, such amount shall be rounded to 
the next lowest multiple of $50.’’, and 
(ii) by striking subsections (f) and (g). 
(B) PHASEOUT OF DEDUCTIONS FOR PERSONAL EXEMP-
TIONS.— 
(i) IN GENERAL.—Paragraph (3) of section 151(d) 
is amended— 
(I) by striking ‘‘the threshold amount’’ in sub-
paragraphs (A) and (B) and inserting ‘‘the 
applicable amount in effect under section 68(b)’’, 
(II) by striking subparagraph (C) and redesig-
nating subparagraph (D) as subparagraph (C), and 
(III) by striking subparagraphs (E) and (F). 
(ii) CONFORMING AMENDMENTS.—Paragraph (4) of 
section 151(d) is amended— 
(I) by striking subparagraph (B), 
(II) by redesignating clauses (i) and (ii) of 
subparagraph (A) as subparagraphs (A) and (B), 
respectively, and by indenting such subparagraphs 
(as so redesignated) accordingly, and 
(III) by striking all that precedes ‘‘in a cal-
endar year after 1989,’’ and inserting the following: 
‘‘(4) INFLATION ADJUSTMENT.—In the case of any taxable 
year beginning’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December 
31, 2012. 
(c) MODIFICATIONS OF ESTATE TAX.—
H. R. 8—6 
(1) MAXIMUM ESTATE TAX RATE EQUAL TO 40 PERCENT.— 
The table contained in subsection (c) of section 2001, as 
amended by section 302(a)(2) of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010, is 
amended by striking ‘‘Over $500,000’’ and all that follows and 
inserting the following: 
‘‘Over $500,000 but not over 
$750,000.
$155,800, plus 37 percent of the 
excess of such amount over 
$500,000. 
Over $750,000 but not over 
$1,000,000.
$248,300, plus 39 percent of the 
excess of such amount over 
$750,000. 
Over $1,000,000 ..........................
$345,800, plus 40 percent of the 
excess of such amount over 
$1,000,000.’’. 
(2) 
TECHNICAL
CORRECTION.—Clause 
(i) 
of 
section 
2010(c)(4)(B) is amended by striking ‘‘basic exclusion amount’’ 
and inserting ‘‘applicable exclusion amount’’. 
(3) EFFECTIVE DATES.— 
(A) IN GENERAL.—Except as otherwise provided by in 
this paragraph, the amendments made by this subsection 
shall apply to estates of decedents dying, generation-skip-
ping transfers, and gifts made, after December 31, 2012. 
(B) TECHNICAL
CORRECTION.—The amendment made 
by paragraph (2) shall take effect as if included in the 
amendments made by section 303 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Cre-
ation Act of 2010. 
SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX 
RELIEF. 
(a) PERMANENT EXTENSION.—The Jobs and Growth Tax Relief 
Reconciliation Act of 2003 is amended by striking section 303. 
(b) 20-PERCENT
CAPITAL
GAINS
RATE
FOR
CERTAIN
HIGH 
INCOME INDIVIDUALS.— 
(1) IN GENERAL.—Paragraph (1) of section 1(h) is amended 
by striking subparagraph (C), by redesignating subparagraphs 
(D) and (E) as subparagraphs (E) and (F) and by inserting 
after subparagraph (B) the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net capital gain (or, 
if less, taxable income) as exceeds the amount on which 
a tax is determined under subparagraph (B), or 
‘‘(ii) the excess of— 
‘‘(I) the amount of taxable income which would 
(without regard to this paragraph) be taxed at 
a rate below 39.6 percent, over 
‘‘(II) the sum of the amounts on which a tax 
is determined under subparagraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital gain (or, 
if less, taxable income) in excess of the sum of the amounts 
on which tax is determined under subparagraphs (B) and 
(C),’’.
H. R. 8—7 
(2) MINIMUM
TAX.—Paragraph (3) of section 55(b) is 
amended by striking subparagraph (C), by redesignating 
subparagraph (D) as subparagraph (E), and by inserting after 
subparagraph (B) the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net capital gain (or, 
if less, taxable excess) as exceeds the amount on which 
tax is determined under subparagraph (B), or 
‘‘(ii) the excess described in section 1(h)(1)(C)(ii), 
plus 
‘‘(D) 20 percent of the adjusted net capital gain (or, 
if less, taxable excess) in excess of the sum of the amounts 
on which tax is determined under subparagraphs (B) and 
(C), plus’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The following provisions are each amended by striking 
‘‘15 percent’’ and inserting ‘‘20 percent’’: 
(A) Section 531. 
(B) Section 541. 
(C) Section 1445(e)(1). 
(D) The second sentence of section 7518(g)(6)(A). 
(E) Section 53511(f)(2) of title 46, United States Code. 
(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended 
by striking ‘‘5 percent (0 percent in the case of taxable years 
beginning after 2007)’’ and inserting ‘‘0 percent’’. 
(3) Section 1445(e)(6) is amended by striking ‘‘15 percent 
(20 percent in the case of taxable years beginning after 
December 31, 2010)’’ and inserting ‘‘20 percent’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided, the amend-
ments made by subsections (b) and (c) shall apply to taxable 
years beginning after December 31, 2012. 
(2) WITHHOLDING.—The amendments made by paragraphs 
(1)(C) and (3) of subsection (c) shall apply to amounts paid 
on or after January 1, 2013. 
SEC. 103. EXTENSION OF 2009 TAX RELIEF. 
(a) 5-YEAR
EXTENSION
OF
AMERICAN
OPPORTUNITY
TAX 
CREDIT.— 
(1) IN GENERAL.—Section 25A(i) is amended by striking 
‘‘in 2009, 2010, 2011, or 2012’’ and inserting ‘‘after 2008 and 
before 2018’’. 
(2) TREATMENT OF POSSESSIONS.—Section 1004(c)(1) of divi-
sion B of the American Recovery and Reinvestment Tax Act 
of 2009 is amended by striking ‘‘in 2009, 2010, 2011, and 
2012’’ each place it appears and inserting ‘‘after 2008 and 
before 2018’’. 
(b) 5-YEAR EXTENSION OF CHILD TAX CREDIT.—Section 24(d)(4) 
is amended— 
(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the heading 
and inserting ‘‘FOR CERTAIN YEARS’’, and 
(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 
‘‘after 2008 and before 2018’’. 
(c) 5-YEAR EXTENSION OF EARNED INCOME TAX CREDIT.—Section 
32(b)(3) is amended— 
(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the heading 
and inserting ‘‘FOR CERTAIN YEARS’’, and
H. R. 8—8 
(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 
‘‘after 2008 and before 2018’’. 
(d) PERMANENT EXTENSION OF RULE DISREGARDING REFUNDS 
IN THE ADMINISTRATION OF FEDERAL PROGRAMS AND FEDERALLY 
ASSISTED PROGRAMS.—Section 6409 is amended to read as follows: 
‘‘SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FED-
ERAL PROGRAMS AND FEDERALLY ASSISTED PROGRAMS. 
‘‘Notwithstanding any other provision of law, any refund (or 
advance payment with respect to a refundable credit) made to 
any individual under this title shall not be taken into account 
as income, and shall not be taken into account as resources for 
a period of 12 months from receipt, for purposes of determining 
the eligibility of such individual (or any other individual) for benefits 
or assistance (or the amount or extent of benefits or assistance) 
under any Federal program or under any State or local program 
financed in whole or in part with Federal funds.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 2012. 
(2) RULE REGARDING DISREGARD OF REFUNDS.—The amend-
ment made by subsection (d) shall apply to amounts received 
after December 31, 2012. 
SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF. 
(a) 2012 EXEMPTION AMOUNTS MADE PERMANENT.— 
(1) IN
GENERAL.—Paragraph (1) of section 55(d) is 
amended— 
(A) by striking ‘‘$45,000’’ and all that follows through 
‘‘2011)’’ in subparagraph (A) and inserting ‘‘$78,750’’, 
(B) by striking ‘‘$33,750’’ and all that follows through 
‘‘2011)’’ in subparagraph (B) and inserting ‘‘$50,600’’, and 
(C) by striking ‘‘paragraph (1)(A)’’ in subparagraph (C) 
and inserting ‘‘subparagraph (A)’’. 
(b) EXEMPTION AMOUNTS INDEXED FOR INFLATION.— 
(1) IN GENERAL.—Subsection (d) of section 55 is amended 
by adding at the end the following new paragraph: 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any taxable year 
beginning in a calendar year after 2012, the amounts 
described in subparagraph (B) shall each 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 2011’ for ‘calendar year 1992’ in 
subparagraph (B) thereof. 
‘‘(B) AMOUNTS DESCRIBED.—The amounts described in 
this subparagraph are— 
‘‘(i) each of the dollar amounts contained in sub-
section (b)(1)(A)(i), 
‘‘(ii) each of the dollar amounts contained in para-
graph (1), and 
‘‘(iii) each of the dollar amounts in subparagraphs 
(A) and (B) of paragraph (3).
H. R. 8—9 
‘‘(C) ROUNDING.—Any increase determined under 
subparagraph (A) shall be rounded to the nearest multiple 
of $100.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Clause (iii) of section 55(b)(1)(A) is amended by 
striking ‘‘by substituting’’ and all that follows through 
‘‘appears.’’ and inserting ‘‘by substituting 50 percent of 
the dollar amount otherwise applicable under subclause 
(I) and subclause (II) thereof.’’. 
(B) Paragraph (3) of section 55(d) is amended— 
(i) by striking ‘‘or (2)’’ in subparagraph (A), 
(ii) by striking ‘‘and’’ at the end of subparagraph 
(B), and 
(iii) by striking subparagraph (C) and inserting 
the following new subparagraphs: 
‘‘(C) 50 percent of the dollar amount applicable under 
subparagraph (A) in the case of a taxpayer described in 
subparagraph (C) or (D) of paragraph (1), and 
‘‘(D) $150,000 in the case of a taxpayer described in 
paragraph (2).’’. 
(c) ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
CREDITS.— 
(1) IN GENERAL.—Subsection (a) of section 26 is amended 
to read as follows: 
‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The aggregate 
amount of credits allowed by this subpart for the taxable year 
shall not exceed the sum of— 
‘‘(1) the taxpayer’s regular tax liability for the taxable 
year reduced by the foreign tax credit allowable under section 
27(a), and 
‘‘(2) the tax imposed by section 55(a) for the taxable year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) ADOPTION CREDIT.— 
(i) Section 23(b) is amended by striking paragraph 
(4). 
(ii) Section 23(c) is amended by striking para-
graphs (1) and (2) and inserting the following: 
‘‘(1) IN GENERAL.—If the credit allowable under subsection 
(a) for any taxable year exceeds the limitation imposed by 
section 26(a) for such taxable year reduced by the sum of 
the credits allowable under this subpart (other than this section 
and sections 25D and 1400C), such excess shall be carried 
to the succeeding taxable year and added to the credit allowable 
under subsection (a) for such taxable year.’’. 
(iii) Section 23(c) is amended by redesignating 
paragraph (3) as paragraph (2). 
(B) CHILD TAX CREDIT.— 
(i) Section 24(b) is amended by striking paragraph 
(3). 
(ii) Section 24(d)(1) is amended— 
(I) by striking ‘‘section 26(a)(2) or subsection 
(b)(3), as the case may be,’’ each place it appears 
in subparagraphs (A) and (B) and inserting ‘‘sec-
tion 26(a)’’, and 
(II) by striking ‘‘section 26(a)(2) or subsection 
(b)(3), as the case may be’’ in the second last 
sentence and inserting ‘‘section 26(a)’’.
H. R. 8—10 
(C) CREDIT
FOR
INTEREST
ON
CERTAIN
HOME
MORT-
GAGES.—Section 25(e)(1)(C) is amended to read as follows: 
‘‘(C) APPLICABLE TAX LIMIT.—For purposes of this para-
graph, the term ‘applicable tax limit’ means the limitation 
imposed by section 26(a) for the taxable year reduced by 
the sum of the credits allowable under this subpart (other 
than this section and sections 23, 25D, and 1400C).’’. 
(D) HOPE AND LIFETIME LEARNING CREDITS.—Section 
25A(i) is amended— 
(i) by striking paragraph (5) and by redesignating 
paragraphs (6) and (7) as paragraphs (5) and (6), 
respectively, and 
(ii) by striking ‘‘section 26(a)(2) or paragraph (5), 
as the case may be’’ in paragraph (5), as redesignated 
by clause (i), and inserting ‘‘section 26(a)’’. 
(E) SAVERS’ CREDIT.—Section 25B is amended by 
striking subsection (g). 
(F) RESIDENTIAL ENERGY EFFICIENT PROPERTY.—Section 
25D(c) is amended to read as follows: 
‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by section 
26(a) for such taxable year reduced by the sum of the credits 
allowable under this subpart (other than this section), such excess 
shall be carried to the succeeding taxable year and added to the 
credit allowable under subsection (a) for such succeeding taxable 
year.’’. 
(G) CERTAIN
PLUG-IN
ELECTRIC
VEHICLES.—Section 
30(c)(2) is amended to read as follows: 
‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (determined 
after application of paragraph (1)) shall be treated as a credit 
allowable under subpart A for such taxable year.’’. 
(H) ALTERNATIVE
MOTOR
VEHICLE
CREDIT.—Section 
30B(g)(2) is amended to read as follows: 
‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (determined 
after application of paragraph (1)) shall be treated as a credit 
allowable under subpart A for such taxable year.’’. 
(I) 
NEW
QUALIFIED
PLUG-IN
ELECTRIC
VEHICLE 
CREDIT.—Section 30D(c)(2) is amended to read as follows: 
‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (determined 
after application of paragraph (1)) shall be treated as a credit 
allowable under subpart A for such taxable year.’’. 
(J) CROSS REFERENCES.—Section 55(c)(3) is amended 
by striking ‘‘26(a), 30C(d)(2),’’ and inserting ‘‘30C(d)(2)’’. 
(K) FOREIGN TAX CREDIT.—Section 904 is amended by 
striking subsection (i) and by redesignating subsections 
(j), (k), and (l) as subsections (i), (j), and (k), respectively. 
(L) FIRST-TIME HOME BUYER CREDIT FOR THE DISTRICT 
OF COLUMBIA.—Section 1400C(d) is amended to read as 
follows: 
‘‘(d) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by section 
26(a) for such taxable year reduced by the sum of the credits 
allowable under subpart A of part IV of subchapter A (other than 
this section and section 25D), such excess shall be carried to the
H. R. 8—11 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such taxable year.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
TITLE II—INDIVIDUAL TAX EXTENDERS 
SEC. 201. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
ELEMENTARY AND SECONDARY SCHOOL TEACHERS. 
(a) IN GENERAL.—Subparagraph (D) of section 62(a)(2) is 
amended by striking ‘‘or 2011’’ and inserting ‘‘2011, 2012, or 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DIS-
CHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBT-
EDNESS. 
(a) IN GENERAL.—Subparagraph (E) of section 108(a)(1) is 
amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to indebtedness discharged after December 31, 2012. 
SEC. 203. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR 
EMPLOYER-PROVIDED 
MASS 
TRANSIT 
AND 
PARKING 
BENEFITS. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) is amended 
by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to months after December 31, 2011. 
SEC. 204. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED 
AS QUALIFIED RESIDENCE INTEREST. 
(a) IN GENERAL.—Subclause (I) of section 163(h)(3)(E)(iv) is 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2013’’. 
(b) TECHNICAL AMENDMENTS.—Clause (i) of section 163(h)(4)(E) 
is amended— 
(1) by striking ‘‘Veterans Administration’’ and inserting 
‘‘Department of Veterans Affairs’’, and 
(2) by striking ‘‘Rural Housing Administration’’ and 
inserting ‘‘Rural Housing Service’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to amounts paid or accrued after December 31, 2011. 
SEC. 205. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL 
SALES TAXES. 
(a) IN GENERAL.—Subparagraph (I) of section 164(b)(5) is 
amended by striking ‘‘January 1, 2012’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011.
H. R. 8—12 
SEC. 206. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAP-
ITAL GAIN REAL PROPERTY MADE FOR CONSERVATION 
PURPOSES. 
(a) IN GENERAL.—Clause (vi) of section 170(b)(1)(E) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) CONTRIBUTIONS
BY CERTAIN CORPORATE FARMERS
AND 
RANCHERS.—Clause (iii) of section 170(b)(2)(B) is amended by 
striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made in taxable years beginning after 
December 31, 2011. 
SEC. 207. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALI-
FIED TUITION AND RELATED EXPENSES. 
(a) IN GENERAL.—Subsection (e) of section 222 is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 208. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
RETIREMENT PLANS FOR CHARITABLE PURPOSES. 
(a) IN GENERAL.—Subparagraph (F) of section 408(d)(8) is 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2013’’. 
(b) EFFECTIVE DATE; SPECIAL RULE.— 
(1) EFFECTIVE DATE.—The amendment made by this section 
shall apply to distributions made in taxable years beginning 
after December 31, 2011. 
(2) SPECIAL
RULES.—For purposes of subsections (a)(6), 
(b)(3), and (d)(8) of section 408 of the Internal Revenue Code 
of 1986, at the election of the taxpayer (at such time and 
in such manner as prescribed by the Secretary of the 
Treasury)— 
(A) any qualified charitable distribution made after 
December 31, 2012, and before February 1, 2013, shall 
be deemed to have been made on December 31, 2012, 
and 
(B) any portion of a distribution from an individual 
retirement account to the taxpayer after November 30, 
2012, and before January 1, 2013, may be treated as a 
qualified charitable distribution to the extent that— 
(i) such portion is transferred in cash after the 
distribution to an organization described in section 
408(d)(8)(B)(i) before February 1, 2013, and 
(ii) such portion is part of a distribution that would 
meet the requirements of section 408(d)(8) but for the 
fact that the distribution was not transferred directly 
to an organization described in section 408(d)(8)(B)(i). 
SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION AUTHOR-
IZING THE INTERNAL REVENUE SERVICE TO DISCLOSE 
CERTAIN RETURN AND RETURN INFORMATION TO CER-
TAIN PRISON OFFICIALS. 
(a) IN GENERAL.—Paragraph (10) of section 6103(k) is amended 
to read as follows: 
‘‘(10) DISCLOSURE
OF
CERTAIN
RETURNS
AND
RETURN 
INFORMATION TO CERTAIN PRISON OFFICIALS.—