‘‘(B) in the case of an appropriation meas-
ure, any such measure that provides appropria-
tions for programs, projects, or activities falling 
within 2 or more section 302(b) suballocations. 
‘‘(11) TARGETED TAX BENEFIT.—(A) The term 
‘targeted tax benefit’ means any revenue-losing provi-
sion that provides a Federal tax deduction, credit, ex-
clusion, or preference to only one beneficiary (deter-
mined with respect to either present law or any pro-
vision of which the provision is a part) under the In-
ternal Revenue Code of 1986 in any year for which 
the provision is in effect; 
‘‘(B) for purposes of subparagraph (A)— 
‘‘(i) all businesses and associations that are 
members of the same controlled group of corpora-
tions (as defined in section 1563(a) of the Inter-
nal Revenue Code of 1986) shall be treated as a 
single beneficiary; 
‘‘(ii) all shareholders, partners, members, or 
beneficiaries of a corporation, partnership, asso-
ciation, or trust or estate, respectively, shall be 
treated as a single beneficiary; 
‘‘(iii) all employees of an employer shall be 
treated as a single beneficiary; 
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‘‘(iv) all qualified plans of an employer 
shall be treated as a single beneficiary; 
‘‘(v) all beneficiaries of a qualified plan 
shall be treated as a single beneficiary; 
‘‘(vi) all contributors to a charitable organi-
zation shall be treated as a single beneficiary; 
‘‘(vii) all holders of the same bond issue 
shall be treated as a single beneficiary; and 
‘‘(viii) if a corporation, partnership, asso-
ciation, trust or estate is the beneficiary of a 
provision, the shareholders of the corporation, the 
partners of the partnership, the members of the 
association, or the beneficiaries of the trust or es-
tate shall not also be treated as beneficiaries of 
such provision; 
‘‘(C) for the purpose of this paragraph, the term 
‘revenue-losing provision’ means any provision that is 
estimated to result in a reduction in Federal tax reve-
nues (determined with respect to either present law or 
any provision of which the provision is a part) for 
any one of the two following periods— 
‘‘(i) the first fiscal year for which the provi-
sion is effective; or 
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‘‘(ii) the period of the 5 fiscal years begin-
ning with the first fiscal year for which the pro-
vision is effective; and 
‘‘(D) the terms used in this paragraph shall have 
the same meaning as those terms have generally in 
the Internal Revenue Code of 1986, unless otherwise 
expressly provided. 
‘‘EXPIRATION 
‘‘SEC. 1018. This title shall have no force or effect on 
or after October 1, 2012.’’. 
SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) EXERCISE
OF RULEMAKING POWERS.—Section 
904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 
note) is amended— 
(1) in subsection (a), by striking ‘‘1017’’ and in-
serting ‘1012’’; and 
(2) in subsection (d), by striking ‘‘section 1017’’ 
and inserting ‘‘section 1012’’. 
(b) ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.— 
Section 402 of the Congressional Budget Act of 1974 is 
amended by inserting ‘‘(a)’’ after ‘‘402.’’ and by adding at 
the end the following new subsection: 
‘‘(b) Upon the receipt of a special message under sec-
tion 1011 proposing to cancel any item of direct spending, 
the Director of the Congressional Budget Office shall pre-
pare an estimate of the savings in budget authority or out-
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lays resulting from such proposed cancellation relative to 
the most recent levels calculated consistent with the method-
ology used to calculate a baseline under section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 
1985 and included with a budget submission under section 
1105(a) of title 31, United States Code, and transmit such 
estimate to the chairmen of the Committees on the Budget 
of the House of Representatives and Senate.’’. 
(c) CLERICAL AMENDMENTS.—(1) Section 1(a) of the 
Congressional Budget and Impoundment Control Act of 
1974 is amended by striking the last sentence. 
(2) Section 1022(c) of such Act (as redesignated) is 
amended is amended by striking ‘‘rescinded or that is to 
be reserved’’ and insert ‘‘canceled’’ and by striking ‘‘1012’’ 
and inserting ‘‘1011’’. 
(3) TABLE OF CONTENTS.—The table of contents set 
forth in section 1(b) of the Congressional Budget and Im-
poundment Control Act of 1974 is amended by deleting the 
contents for parts B and C of title X and inserting the fol-
lowing: 
‘‘PART B—LEGISLATIVE LINE ITEM VETO 
‘‘Sec. 1011. Line item veto authority. 
‘‘Sec. 1012. Procedures for expedited consideration. 
‘‘Sec. 1013. Presidential deferral authority. 
‘‘Sec. 1014. Identification of targeted tax benefits. 
‘‘Sec. 1015. Treatment of cancellations. 
‘‘Sec. 1016. Reports by Comptroller General. 
‘‘Sec. 1017. Definitions. 
‘‘Sec. 1018. Expiration. 
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‘‘Sec. 1019. Suits by Comptroller General. 
‘‘Sec. 1020. Proposed Deferrals of budget authority.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
Act shall take effect on the date of its enactment and apply 
only to any dollar amount of discretionary budget author-
ity, item of direct spending, or targeted tax benefit provided 
in an Act enacted on or after the date of enactment of this 
Act. 
SEC. 4. SENSE OF CONGRESS ON ABUSE OF PROPOSED CAN-
CELLATIONS. 
It is the sense of Congress no President or any execu-
tive branch official should condition the inclusion or exclu-
sion or threaten to condition the inclusion or exclusion of 
any proposed cancellation in any special message under 
this section upon any vote cast or to be cast by any Member 
of either House of Congress. 
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