I 
112TH CONGRESS 
2D SESSION 
H. R. 6262 
To amend the Internal Revenue Code of 1986 to provide tax relief to middle- 
class families, small businesses, and family farms. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2012 
Mr. LOEBSACK (for himself, Mr. BOSWELL, and Mr. GARAMENDI) introduced 
the following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax relief to middle-class families, small businesses, and 
family farms. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Middle Class and Small Business Tax Relief Act of 
2012’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
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shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; etc. 
Sec. 2. Permanent extension of certain 2001 tax relief for middle-class families, 
small businesses, and family farms. 
Sec. 3. Permanent extension of 2003 tax relief for middle-class families, small 
businesses, and family farms. 
Sec. 4. Temporary extension of 2009 tax relief. 
Sec. 5. Temporary extension of estate tax relief. 
Sec. 6. Temporary extension of increased alternative minimum tax exemption 
amount. 
Sec. 7. Temporary extension of alternative minimum tax relief for nonrefund-
able personal credits. 
SEC. 2. PERMANENT EXTENSION OF CERTAIN 2001 TAX RE-
LIEF FOR MIDDLE-CLASS FAMILIES, SMALL 
BUSINESSES, AND FAMILY FARMS. 
(a) IN GENERAL.—Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 is 
amended— 
(1) by striking ‘‘this Act shall not apply—’’ and 
all that follows through ‘‘in the case of title V,’’ in 
subsection (a) and inserting ‘‘title V shall not 
apply’’, and 
(2) by striking ‘‘years,’’ in subsection (b). 
(b) APPLICATION TO CERTAIN HIGH-INCOME TAX-
PAYERS.— 
(1) INCOME TAX RATES.— 
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(A) TREATMENT OF 25- AND 28-PERCENT 
RATE
BRACKETS.—Paragraph (2) of section 
1(i) is amended to read as follows: 
‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.— 
The tables under subsections (a), (b), (c), (d), and 
(e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each 
place it appears (before the application of sub-
paragraph (B)), and 
‘‘(B) by substituting ‘28%’ for ‘31%’ each 
place it appears.’’. 
(B) 33- AND
35-PERCENT
RATE
BRACK-
ETS.—Subsection (i) of section 1 is amended by 
redesignating paragraph (3) as paragraph (6) 
and by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) APPLICABLE AMOUNTS IN THE FOURTH 
RATE BRACKET.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer whose applicable amount for the taxable 
year is in the fourth rate bracket— 
‘‘(i) the rate of tax under subsections 
(a), (b), (c), and (d) on a taxpayer’s tax-
able income in the fourth rate bracket shall 
be 33 percent to the extent such income 
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does not exceed an amount equal to the ex-
cess of— 
‘‘(I) the applicable amount, over 
‘‘(II) the dollar amount at which 
such bracket begins, and 
‘‘(ii) the 36 percent rate of tax under 
such subsections shall apply only to the 
taxpayer’s taxable income in such bracket 
in excess of the amount to which clause (i) 
applies. 
‘‘(iii) FOURTH RATE BRACKET.—For 
purposes of this paragraph, the term 
‘fourth rate bracket’ means the bracket 
which would (determined without regard to 
this paragraph) be the 36-percent rate 
bracket. 
‘‘(4) APPLICABLE AMOUNTS IN THE HIGHEST 
RATE BRACKET.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer whose applicable amount for the taxable 
year is in the highest rate bracket— 
‘‘(i) the tables under subsections (a), 
(b), (c), and (d) shall be applied by sub-
stituting ‘33%’ for ‘36%’ each place it ap-
pears, 
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‘‘(ii) the rate of tax under subsections 
(a), (b), (c), and (d) on a taxpayer’s tax-
able income in the highest rate bracket 
shall be 35 percent to the extent such in-
come does not exceed an amount equal to 
the excess of— 
‘‘(I) the applicable amount, over 
‘‘(II) the dollar amount at which 
such bracket begins, and 
‘‘(iii) the 39.6 percent rate of tax 
under such subsections shall apply only to 
the taxpayer’s taxable income in such 
bracket in excess of the amount to which 
clause (i) applies. 
‘‘(B) HIGHEST RATE BRACKET.—For pur-
poses of this paragraph, the term ‘highest rate 
bracket’ means the bracket which would (deter-
mined without regard to this paragraph) be the 
39.6-percent rate bracket. 
‘‘(5) APPLICABLE AMOUNT.—For purposes of 
this subsection— 
‘‘(A) IN GENERAL.—The term ‘applicable 
amount’ means the excess of— 
‘‘(i) the applicable threshold, over 
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‘‘(ii) the sum of the following amounts 
in effect for the taxable year: 
‘‘(I) the basic standard deduction 
(within 
the 
meaning 
of 
section 
63(c)(2)), and 
‘‘(II) 
the 
exemption 
amount 
(within 
the 
meaning 
of 
section 
151(d)(1)) (or, in the case of sub-
section 
(a), 
such 
exemption 
amounts). 
‘‘(B) APPLICABLE THRESHOLD.—The term 
‘applicable threshold’ means, in the case of any 
taxpayer for any taxable year, the sum of— 
‘‘(i) the base amount, plus 
‘‘(ii) the small business and family 
farm income of such taxpayer for such tax-
able year. 
‘‘(C) BASE
AMOUNT.—The term ‘base 
amount’ means— 
‘‘(i) $250,000 in the case of sub-
section (a), 
‘‘(ii) $200,000 in the case of sub-
sections (b) and (c), and 
‘‘(iii) 1⁄2 the amount applicable under 
clause (i) (after adjustment, if any, under 
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subparagraph (G)) in the case of sub-
section (d). 
‘‘(D) SMALL BUSINESS AND FAMILY FARM 
INCOME.— 
‘‘(i) IN GENERAL.—The term ‘small 
business and family farm income’ means, 
with respect to any taxpayer for any tax-
able year, the gross income of the taxpayer 
for such taxable year which is attributable 
to— 
‘‘(I) any small trade or business 
of the taxpayer (other than the trade 
or business of being an employee), or 
‘‘(II) any dividends, distributions, 
or interest received from any small 
business. 
‘‘(ii) DEDUCTIONS
TAKEN
INTO
AC-
COUNT.—The amount of gross income 
taken into account under clause (i) shall be 
reduced by the amount of any deductions 
properly allocable thereto. 
‘‘(iii) SMALL
BUSINESS.—The term 
‘small business’ means any corporation or 
partnership which employed an average of 
less than 500 employees on business days 
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during the taxable year. A trade or busi-
ness shall be treated as a small trade or 
business if such trade or business would be 
a small business if such trade or business 
was a corporation. For purposes of this 
clause, all persons treated as a single em-
ployer under subsection (b), (c), (m), or 
(o) of section 414 shall be treated as a sin-
gle entity. 
‘‘(E) INFLATION ADJUSTMENT.—For pur-
poses of this paragraph, with respect to taxable 
years beginning in calendar years after 2012, 
each of the dollar amounts under clauses (i) 
and (ii) of subparagraph (C) shall be adjusted 
in the same manner as under paragraph (1)(C), 
except that subsection (f)(3)(B) shall be applied 
by substituting ‘2011’ for ‘1992’.’’. 
(2) PHASEOUT OF PERSONAL EXEMPTIONS AND 
ITEMIZED DEDUCTIONS.— 
(A) OVERALL
LIMITATION
ON
ITEMIZED 
DEDUCTIONS.—Section 68 is amended— 
(i) 
by 
striking 
‘‘the 
applicable 
amount’’ the first place it appears in sub-
section (a) and inserting ‘‘the applicable 
threshold in effect under section 1(i)(3)’’, 
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(ii) 
by 
striking 
‘‘the 
applicable 
amount’’ in subsection (a)(1) and inserting 
‘‘such applicable threshold’’, 
(iii) by striking subsection (b) and re-
designating subsections (c), (d), and (e) as 
subsections (b), (c), and (d), respectively, 
and 
(iv) by striking subsections (f) and 
(g). 
(B) PHASEOUT OF DEDUCTIONS FOR PER-
SONAL EXEMPTIONS.— 
(i) IN
GENERAL.—Paragraph (3) of 
section 151(d) is amended— 
(I) by striking ‘‘the threshold 
amount’’ in subparagraphs (A) and 
(B) and inserting ‘‘the applicable 
threshold in effect under section 
1(i)(3)’’, 
(II) by striking subparagraph (C) 
and redesignating subparagraph (D) 
as subparagraph (C), and 
(III) by striking subparagraphs 
(E) and (F). 
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(ii) 
CONFORMING
AMENDMENTS.— 
Paragraph (4) of section 151(d) is amend-
ed— 
(I) by striking subparagraph (B), 
(II) by redesignating clauses (i) 
and (ii) of subparagraph (A) as sub-
paragraphs (A) and (B), respectively, 
and by indenting such subparagraphs 
(as so redesignated) accordingly, and 
(III) by striking all that precedes 
‘‘in a calendar year after 1989,’’ and 
inserting the following: 
‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning’’. 
(c) EFFECTIVE DATE.—Except as otherwise pro-
vided, the amendments made by this section shall apply 
to taxable years beginning after December 31, 2012. 
SEC. 3. PERMANENT EXTENSION OF 2003 TAX RELIEF FOR 
MIDDLE-CLASS 
FAMILIES, 
SMALL 
BUSI-
NESSES, AND FAMILY FARMS. 
(a) PERMANENT EXTENSION.— 
(1) IN GENERAL.—Section 303 of the Jobs and 
Growth Tax Relief Reconciliation Act of 2003 is 
hereby repealed. 
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(2) EFFECTIVE
DATE.—The repeal made by 
this subsection shall take effect as if included in the 
enactment of the Jobs and Growth Tax Relief Rec-
onciliation Act of 2003. 
(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 sub-
paragraphs (E) and (F) and by inserting after sub-
paragraph (B) the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net cap-
ital gain (or, if less, taxable income) as ex-
ceeds the amount on which a tax is deter-
mined under subparagraph (B), or 
‘‘(ii) the excess (if any) of— 
‘‘(I) the amount of taxable in-
come which would (without regard to 
this paragraph) be taxed at a rate 
below 36 percent (39.6 percent in the 
case of a taxpayer whose applicable 
amount (as defined in subsection 
(i)(3)) is above the dollar amount at 
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which the highest rate bracket (as de-
fined in such subsection) begins), over 
‘‘(II) the sum of the amounts on 
which a tax is determined under sub-
paragraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable income) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C),’’. 
(2) 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 cap-
ital gain (or, if less, taxable excess) as ex-
ceeds the amount on which tax is deter-
mined 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’’. 
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(d) 
TEMPORARY
EXTENSION
OF
RULE
DIS-
REGARDING REFUNDS IN THE ADMINISTRATION OF FED-
ERAL
PROGRAMS
AND
FEDERALLY
ASSISTED
PRO-
GRAMS.—Subsection (b) of section 6409 is amended by 
striking ‘‘December 31, 2012’’ and inserting ‘‘December 
31, 2013’’. 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2012. 
SEC. 5. TEMPORARY EXTENSION OF ESTATE TAX RELIEF. 
(a) IN GENERAL.—Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001, as 
amended by this Act, is amended by striking ‘‘December 
31, 2012’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the enact-
ment of the Economic Growth and Tax Relief Reconcili-
ation Act of 2001. 
SEC. 6. TEMPORARY EXTENSION OF INCREASED ALTER-
NATIVE MINIMUM TAX EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) is 
amended— 
(1) by striking ‘‘$72,450’’ and all that follows 
through ‘‘2011’’ in subparagraph (A) and inserting 
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‘‘$78,750 in the case of taxable years beginning in 
2012’’, and 
(2) by striking ‘‘$47,450’’ and all that follows 
through ‘‘2011’’ in subparagraph (B) and inserting 
‘‘$50,600 in the case of taxable years beginning in 
2012’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 7. TEMPORARY EXTENSION OF ALTERNATIVE MIN-
IMUM TAX RELIEF FOR NONREFUNDABLE 
PERSONAL CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) is 
amended— 
(1) by striking ‘‘or 2011’’ and inserting ‘‘2011, 
or 2012’’, and 
(2) by striking ‘‘2011’’ in the heading thereof 
and inserting ‘‘2012’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
Æ 
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