Cut Taxes for the Middle Class Act of 2014

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Cut Taxes for the 
Middle Class Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--STATE AND LOCAL SALES TAX DEDUCTION

Sec. 101. Extension of deduction of State and local general sales 
                            taxes.
        TITLE II--PROVISIONS RELATING TO EDUCATION TAX BENEFITS

Sec. 201. Extension of above-the-line deduction for qualified tuition 
                            and related expenses.
Sec. 202. Extension of deduction for certain expenses of elementary and 
                            secondary school teachers.
     TITLE III--PROVISIONS RELATING TO MEMBERS OF THE ARMED FORCES

Sec. 301. Extension of housing allowance exclusion for determining area 
                            median gross income for low-income housing 
                            credit and qualified residential rental 
                            project exempt facility bonds.
Sec. 302. Extension of employer wage credit for employees who are 
                            active duty members of the uniformed 
                            services.
              TITLE IV--PROVISIONS RELATING TO BUSINESSES

Sec. 401. Extension of work opportunity tax credit.
Sec. 402. Extension of new markets tax credit.
Sec. 403. Extension and modification of research credit.

              TITLE I--STATE AND LOCAL SALES TAX DEDUCTION

SEC. 101. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL SALES 
              TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) of the 
Internal Revenue Code of 1986 is amended by striking ``January 1, 
2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

        TITLE II--PROVISIONS RELATING TO EDUCATION TAX BENEFITS

SEC. 201. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION 
              AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and 
inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 202. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
              SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``or 2013'' and 
inserting ``2013, or 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

     TITLE III--PROVISIONS RELATING TO MEMBERS OF THE ARMED FORCES

SEC. 301. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR DETERMINING AREA 
              MEDIAN GROSS INCOME FOR LOW-INCOME HOUSING CREDIT AND 
              QUALIFIED RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY 
              BONDS.

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 is amended by striking ``January 1, 2014'' 
each place it appears and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of section 3005 of the Housing 
Assistance Tax Act of 2008.

SEC. 302. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE 
              ACTIVE DUTY MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and 
inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2013.

              TITLE IV--PROVISIONS RELATING TO BUSINESSES

SEC. 401. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Subparagraph (B) of section 51(c)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after December 31, 2013.

SEC. 402. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``and 2013'' and 
inserting ``2013, and 2014''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 
45D(f) of such Code is amended by striking ``2018'' and inserting 
``2019''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2013.

SEC. 403. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2014''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) of 
such Code is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2013.

Summary: Cut Taxes for the Middle Class Act of 2014 - Amends the Internal Revenue Code to extend through 2014: (1) the tax deduction for state and local general sales taxes in lieu of state and local income taxes, (2) the tax deduction&nbsp;for qualified tuition and related expenses, (3) the tax deduction for expenses of elementary and secondary school teachers, (4) the tax credit for differential wage payments to employees who are active duty members of the Uniformed Services, (5) the work opportunity tax credit, (6) the new markets tax credit, and (7) the tax credit for increasing research activities.  Amends the Housing Assistance&nbsp;Tax Act of 2008 to extend through 2014 the exemption of the basic military housing allowance from the income test for programs financed by tax-exempt housing bonds.&nbsp;