178 
(1) any divorce or separation instrument (as de-
fined in section 71(b)(2) of the Internal Revenue 
Code of 1986 as in effect before the date of the en-
actment of this Act) executed after December 31, 
2014, and 
(2) any divorce or separation instrument (as so 
defined) executed on or before such date and modi-
fied after such date if the modification expressly 
provides that the amendments made by this section 
apply to such modification. 
SEC. 1412. REPEAL OF DEDUCTION FOR MOVING EX-
PENSES. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 is amended by striking section 217 (and by striking 
the item relating to such section in the table of sections 
for such part). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 62(a) is amended by striking para-
graph (15). 
(2)(A) Section 132(a) is amended by striking 
paragraph (6). 
(B) Section 82 is amended by striking ‘‘Except 
as provided in section 132(a)(6), there’’ and insert-
ing ‘‘There’’. 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00178
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
179 
(3)(A) Section 132 is amended by striking sub-
section (g). 
(B) Section 132(l) is amended by striking by 
striking ‘‘subsections (e) and (g)’’ and inserting 
‘‘subsection (e)’’. 
(4) Section 274(m)(3) is amended by striking 
‘‘(other than section 217)’’. 
(5) Section 3121(a) is amended by striking 
paragraph (11). 
(6) Section 209(a) of the Social Security Act is 
amended by striking paragraph (9). 
(7) Section 3306(b) is amended by striking 
paragraph (9). 
(8) Section 3401(a) is amended by striking 
paragraph (15). 
(9) Section 7872(f) is amended by striking 
paragraph (11). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00179
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
180 
SEC. 1413. TERMINATION OF DEDUCTION AND EXCLUSIONS 
FOR CONTRIBUTIONS TO MEDICAL SAVINGS 
ACCOUNTS. 
(a) TERMINATION OF INCOME TAX DEDUCTION.— 
Section 220 is amended by adding at the end the following 
new subsection: 
‘‘(k) TERMINATION.—No deduction shall be allowed 
under subsection (a) with respect to any taxable year be-
ginning after December 31, 2014.’’. 
(b) TERMINATION OF EXCLUSION FOR EMPLOYER- 
PROVIDED CONTRIBUTIONS.—Section 106 is amended by 
striking subsection (b). 
(c) CONFORMING AMENDMENTS.— 
(1) Section 62(a) is amended by striking para-
graph (16). 
(2) Section 106(d) is amended by striking para-
graph (2), by redesignating paragraph (3) as para-
graph (6), and by inserting after paragraph (1) the 
following new paragraphs: 
‘‘(2) NO CONSTRUCTIVE RECEIPT.—No amount 
shall be included in the gross income of any em-
ployee solely because the employee may choose be-
tween the contributions referred to in paragraph (1) 
and employer contributions to another health plan of 
the employer. 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00180
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
181 
‘‘(3) SPECIAL RULE FOR DEDUCTION OF EM-
PLOYER CONTRIBUTIONS.—Any employer contribu-
tion to a health savings account (as so defined), if 
otherwise allowable as a deduction under this chap-
ter, shall be allowed only for the taxable year in 
which paid. 
‘‘(4) EMPLOYER
HEALTH
SAVINGS
ACCOUNT 
CONTRIBUTION
REQUIRED
TO
BE
SHOWN
ON
RE-
TURN.—Every individual required to file a return 
under section 6012 for the taxable year shall include 
on such return the aggregate amount contributed by 
employers to the health savings accounts (as so de-
fined) of such individual or such individual’s spouse 
for such taxable year. 
‘‘(5) HEALTH
SAVINGS
ACCOUNT
CONTRIBU-
TIONS NOT PART OF COBRA COVERAGE.—Paragraph 
(1) shall not apply for purposes of section 4980B.’’. 
(3) Section 223(b)(4) is amended by striking 
subparagraph (A) and by redesignating subpara-
graphs (B) and (C) as subparagraphs (A) and (B), 
respectively. 
(4) Section 3231(e) is amended by striking 
paragraph (10) and by redesignating paragraphs 
(11) and (12) as paragraphs (10) and (11), respec-
tively. 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00181
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
182 
(5) Section 3306(b) is amended by striking 
paragraph (17). 
(6) Section 3401(a) is amended by striking 
paragraph (21). 
(7) Chapter 43 is amended by striking section 
4980E (and by striking the item relating to such 
section in the table of sections for such chapter). 
(8) Section 4980G is amended to read as fol-
lows: 
‘‘SEC. 4980G. FAILURE OF EMPLOYER TO MAKE COM-
PARABLE HEALTH SAVINGS ACCOUNT CON-
TRIBUTIONS. 
‘‘(a) IN GENERAL.—In the case of an employer who 
makes a contribution to the health savings account of any 
employee during a calendar year, there is hereby imposed 
a tax on the failure of such employer to meet the require-
ments of subsection (d) for such calendar year. 
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) on any failure for any calendar 
year is the amount equal to 35 percent of the aggregate 
amount contributed by the employer to health savings ac-
counts of employees for taxable years of such employees 
ending with or within such calendar year. 
‘‘(c) WAIVER BY SECRETARY.—In the case of a fail-
ure which is due to reasonable cause and not to willful 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00182
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
183 
neglect, the Secretary may waive part or all of the tax 
imposed by subsection (a) to the extent that the payment 
of such tax would be excessive relative to the failure in-
volved. 
‘‘(d) EMPLOYER REQUIRED TO MAKE COMPARABLE 
HEALTH SAVINGS ACCOUNT CONTRIBUTIONS FOR ALL 
PARTICIPATING EMPLOYEES.— 
‘‘(1) IN GENERAL.—An employer meets the re-
quirements of this subsection for any calendar year 
if the employer makes available comparable con-
tributions to the health savings accounts of all com-
parable participating employees for each coverage 
period during such calendar year. 
‘‘(2) COMPARABLE CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘comparable contributions’ 
means contributions— 
‘‘(i) which are the same amount, or 
‘‘(ii) which are the same percentage of 
the annual deductible limit under the high 
deductible health plan covering the employ-
ees. 
‘‘(B) PART-YEAR
EMPLOYEES.—In the 
case of an employee who is employed by the em-
ployer for only a portion of the calendar year, 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00183
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
184 
a contribution to the health savings account of 
such employee shall be treated as comparable if 
it is an amount which bears the same ratio to 
the comparable amount (determined without re-
gard to this subparagraph) as such portion 
bears to the entire calendar year. 
‘‘(3) COMPARABLE
PARTICIPATING
EMPLOY-
EES.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘comparable participating 
employees’ means all employees— 
‘‘(i) who are eligible individuals cov-
ered under any high deductible health plan 
of the employer, and 
‘‘(ii) who have the same category of 
coverage. 
‘‘(B) CATEGORIES
OF
COVERAGE.—For 
purposes of subparagraph (B), the categories of 
coverage are self-only and family coverage. 
‘‘(4) PART-TIME EMPLOYEES.— 
‘‘(A) IN GENERAL .—Paragraph (3) shall 
be applied separately with respect to part-time 
employees and other employees. 
‘‘(B) PART-TIME
EMPLOYEE.—For pur-
poses of subparagraph (A), the term ‘part-time 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00184
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
185 
employee’ means any employee who is custom-
arily employed for fewer than 30 hours per 
week. 
‘‘(5) SPECIAL
RULE
FOR
NON-HIGHLY
COM-
PENSATED EMPLOYEES.—For purposes of applying 
this section to a contribution to a health savings ac-
count of an employee who is not a highly com-
pensated employee (as defined in section 414(q)), 
highly compensated employees shall not be treated 
as comparable participating employees. 
‘‘(e) CONTROLLED GROUPS.—For purposes of this 
section, all persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 shall be treated 
as 1 employer. 
‘‘(f) DEFINITIONS.—Terms used in this section which 
are also used in section 223 have the respective meanings 
given such terms in section 223. 
‘‘(g) REGULATIONS.—The Secretary shall issue regu-
lations to carry out the purposes of this section.’’. 
(9) Section 6051(a) is amended by striking 
paragraph (11). 
(10) Section 6051(a)(14)(A) is amended by 
striking ‘‘paragraphs (11) and (12)’’ and inserting 
‘‘paragraph (12)’’. 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00185
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
186 
(d) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 1414. REPEAL OF 2-PERCENT FLOOR ON MISCELLA-
NEOUS ITEMIZED DEDUCTIONS. 
(a) IN GENERAL.—Part 1 of subchapter B of chapter 
1 is amended by striking section 67 (and the item relating 
to such section in the table of sections for such part). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 642(b)(2)(C)(i)(II) is amended to 
read as follows: 
‘‘(II) by determining the adjusted 
gross income of the trust under the 
rules of section 2(b)(2) (without the 
reference to section 642(b)).’’. 
(2) Section 162(o) is amended by striking para-
graph (2). 
(3) Section 302(b)(5) is amended by striking 
‘‘section 
67(c)(2)(B)’’ 
and 
inserting 
‘‘section 
562(c)(2)’’. 
(4) Section 562(c) is amended— 
(A) by striking ‘‘(as defined in section 
67(c)(2)(B))’’, 
(B) by striking ‘‘(as so defined)’’, 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00186
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
187 
(C) by striking ‘‘Except in the case of’’ 
and inserting the following: 
‘‘(1) IN GENERAL.—Except in the case of’’, and 
(D) by adding at the end the following new 
paragraph: 
‘‘(2) PUBLICLY OFFERED REGULATED INVEST-
MENT COMPANY.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘publicly of-
fered regulated investment company’ means a 
regulated investment company the shares of 
which are— 
‘‘(i) continuously offered pursuant to 
a public offering (within the meaning of 
section 4 of the Securities Act of 1933, as 
amended (15 U.S.C. 77a to 77aa)), 
‘‘(ii) regularly traded on an estab-
lished securities market, or 
‘‘(iii) held by or for no fewer than 500 
persons at all times during the taxable 
year. 
‘‘(B) SECRETARY MAY REDUCE 500 PER-
SON
REQUIREMENT.—The Secretary may by 
regulation decrease the minimum shareholder 
requirement of clause (i)(III) in the case of reg-
ulated investment companies which experience a 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00187
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
188 
loss of shareholders through net redemptions of 
their shares.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 1415. REPEAL OF OVERALL LIMITATION ON ITEMIZED 
DEDUCTIONS. 
(a) IN GENERAL.—Part 1 of subchapter B of chapter 
1 is amended by striking section 68 (and the item relating 
to such section in the table of sections for such part). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 1416. DEDUCTION FOR AMORTIZABLE BOND PREMIUM 
ALLOWED 
IN 
DETERMINING 
ADJUSTED 
GROSS INCOME. 
(a) IN GENERAL.—Subsection (a) of section 62, as 
amended by section 1411, is amended by inserting after 
paragraph (9) the following new paragraph: 
‘‘(10) AMORTIZABLE BOND PREMIUM.—The de-
duction allowed under section 171(a)(1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00188
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
190 
SEC. 1418. CLARIFICATION OF SPECIAL RULE FOR CERTAIN 
GOVERNMENTAL PLANS. 
(a) 
TREATMENT
OF
BENEFICIARIES.—Section 
105(j)(1) is amended— 
(1) by striking ‘‘the taxpayer’’ and inserting 
‘‘an employee, spouse, dependent (as defined for 
purposes of subsection (b)), or child (as so de-
fined)’’, and 
(2) by striking ‘‘deceased plan participant’s 
beneficiary’’ and inserting ‘‘deceased employee’s ben-
eficiary who is not a surviving spouse, dependent (as 
so defined), or child (as so defined)’’. 
(b) APPLICATION TO POLITICAL SUBDIVISIONS OF 
STATES.—Section 105(j)(2) 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 subparagraph (B) thereof. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments after the date of the 
enactment of this Act. 
SEC. 1419. LIMITATION ON EXCLUSION FOR EMPLOYER- 
PROVIDED HOUSING. 
(a) IN GENERAL.—Section 119 is amended by adding 
at the end the following new subsection: 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00190
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
191 
‘‘(e) LIMITATION ON EXCLUSION OF LODGING.— 
‘‘(1) IN GENERAL.—The aggregate amount ex-
cluded from gross income of the taxpayer under sub-
sections (a) and (d) with respect to lodging for any 
taxable year shall not exceed $50,000 (half such 
amount in the case of a married individual filing a 
separate return). 
‘‘(2) LIMITATION TO 1 HOME.—Subsections (a) 
and (d) (separately and in combination) shall not 
apply with respect to more than 1 residence of the 
taxpayer at any given time. In the case of a joint re-
turn, the preceding sentence shall apply separately 
to each spouse for any period during which each 
spouse resides separate from the other spouse in a 
residence which is provided in connection with the 
employment of each spouse, respectively.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 1420. FRINGE BENEFITS. 
(a) REPEAL OF SPECIAL RULE FOR AIR TRANSPOR-
TATION BY PARENT OF EMPLOYEE.—Subsection (h) of 
section 132 is amended by striking paragraph (3). 
(b) TRANSPORTATION AND PARKING.— 
(1) FREEZE AT CURRENT LEVELS.— 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00191
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
192 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 132(f) is amended— 
(i) in subparagraph (A) by striking 
‘‘$100’’ and inserting ‘‘$130’’, and 
(ii) in subparagraph (B) by striking 
‘‘$175’’ and inserting ‘‘$250’’. 
(B) INFLATION ADJUSTMENT.—Subsection 
(f) of such section is amended by striking para-
graph (6) and redesignating paragraph (7) as 
paragraph (6). 
(2) REPEAL OF BICYCLE BENEFIT.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 132(f) is amended by striking subpara-
graph (D). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 132(f)(2) is amended by 
inserting ‘‘and’’ at the end of subpara-
graph (A), by striking ‘‘and’’ at the end of 
subparagraph (B) and inserting a period, 
and by striking subparagraph (C). 
(ii) Section 132(f)(4) is amended by 
striking ‘‘(other than a qualified bicycle 
commuting reimbursement)’’. 
(iii) Section 132(f)(5) is amended by 
striking subparagraph (F). 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00192
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
193 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 1421. REPEAL OF EXCLUSION OF NET UNREALIZED AP-
PRECIATION IN EMPLOYER SECURITIES. 
(a) IN GENERAL.—Section 402(e) is amended by 
striking paragraph (4). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 401(k)(10) is amended by striking 
subparagraph (B) and inserting the following new 
subparagraphs: 
‘‘(B) DISTRIBUTIONS MUST BE LUMP SUM 
DISTRIBUTIONS.—A termination shall not be 
treated as described in subparagraph (A) with 
respect to any employee unless the employee re-
ceives a lump sum distribution by reason of the 
termination. 
‘‘(C) 
LUMP-SUM
DISTRIBUTION
DE-
FINED.—For purposes of this paragraph— 
‘‘(i) IN
GENERAL.—The term ‘lump 
sum distribution’ means the distribution or 
payment within one taxable year of the re-
cipient of the balance to the credit of an 
employee which becomes payable to the re-
cipient from a trust which forms a part of 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00193
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
194 
a plan described in section 401(a) and 
which is exempt from tax under section 
501 or from a plan described in section 
403(a). Such term includes a distribution 
of an annuity contract from— 
‘‘(I) a trust which forms a part 
of a plan described in section 401(a) 
and which is exempt from tax under 
section 501(a), or 
‘‘(II) an annuity plan described 
in section 403(a). 
For purposes of this clause, a distribution 
to two or more trusts shall be treated as 
a distribution to one recipient. 
‘‘(ii) 
AGGREGATION
OF
CERTAIN 
TRUSTS AND PLANS.—For purposes of de-
termining the balance to the credit of an 
employee under clause (i)— 
‘‘(I) all trusts which are part of 
a plan shall be treated as a single 
trust, all pension plans maintained by 
the employer shall be treated as a sin-
gle plan, all profit-sharing plans main-
tained by the employer shall be treat-
ed as a single plan, and all stock 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00194
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS
196 
ferred from such defined contribution plan 
to a qualified cost-of-living arrangement 
(within the meaning of section 415(k)(2)) 
under a defined benefit plan. (vii) 
‘‘(vi) LUMP-SUM
DISTRIBUTIONS
OF 
ALTERNATE PAYEES.—If any distribution 
or payment of the balance to the credit of 
an employee would be treated as a lump- 
sum distribution, then, for purposes of this 
paragraph, the payment under a qualified 
domestic relations order (within the mean-
ing of section 414(p)) of the balance to the 
credit of an alternate payee who is the 
spouse or former spouse of the employee 
shall be treated as a lump-sum distribu-
tion. For purposes of this clause, the bal-
ance to the credit of the alternate payee 
shall not include any amount payable to 
the employee. 
‘‘(vii) EXCLUSION
OF
ACCUMULATE 
DEDUCTIBLE
EMPLOYEE
CONTRIBU-
TIONS.—For purposes of this subpara-
graph, the balance to the credit of the em-
ployee does not include the accumulated 
deductible employee contributions under 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
Jkt 049200
PO 00000
Frm 00196
Fmt 6652
Sfmt 6201
E:\BILLS\H1.IH
H1
asabaliauskas on DSK5VPTVN1PROD with BILLS