A bill to amend the Internal Revenue Code of 1986 to temporarily extend tax relief provisions enacted in 2001 and 2003, to provide for temporary alternative minimum tax relief, to extend increased expensing limitations, and to provide instructions for tax reform.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Hike Prevention Act of 2012''.

SEC. 2. TEMPORARY EXTENSION OF 2001 TAX RELIEF.

    (a) In General.--Section 901 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 is amended by striking ``December 31, 2012'' 
both places it appears and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of the Economic Growth and Tax 
Relief Reconciliation Act of 2001.

SEC. 3. TEMPORARY EXTENSION OF 2003 TAX RELIEF.

    (a) In General.--Section 303 of the Jobs and Growth Tax Relief 
Reconciliation Act of 2003 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 enactment of the Jobs and Growth Tax 
Relief Reconciliation Act of 2003.

SEC. 4. ALTERNATIVE MINIMUM TAX RELIEF.

    (a) Temporary Extension of Increased Alternative Minimum Tax 
Exemption Amount.--
            (1) In general.--Paragraph (1) of section 55(d) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``$72,450'' and all that follows 
                through ``2011'' in subparagraph (A) and inserting 
                ``$78,750 in the case of taxable years beginning in 
                2012 and $79,850 in the case of taxable years beginning 
                in 2013'', and
                    (B) 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 and $51,150 in the case of taxable years beginning 
                in 2013''.
    (b) Temporary Extension of Alternative Minimum Tax Relief for 
Nonrefundable Personal Credits.--
            (1) In general.--Paragraph (2) of section 26(a) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``or 2011'' and inserting ``2011, 
                2012, or 2013'', and
                    (B) by striking ``2011'' in the heading thereof and 
                inserting ``2013''.
    (c)  Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 5. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF 
              CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

    (a) In General.--
            (1) Dollar limitation.--Section 179(b)(1) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by striking ``2010 or 2011,'' in subparagraph 
                (B) and inserting ``2010, 2011, 2012, or 2013, and'',
                    (B) by striking subparagraph (C),
                    (C) by redesignating subparagraph (D) as 
                subparagraph (C), and
                    (D) in subparagraph (C), as so redesignated, by 
                striking ``2012'' and inserting ``2013''.
            (2) Reduction in limitation.--Section 179(b)(2) of such 
        Code is amended--
                    (A) by striking ``2010 or 2011,'' in subparagraph 
                (B) and inserting ``2010, 2011, 2012, or 2013, and'',
                    (B) by striking subparagraph (C),
                    (C) by redesignating subparagraph (D) as 
                subparagraph (C), and
                    (D) in subparagraph (C), as so redesignated, by 
                striking ``2012'' and inserting ``2013''.
            (3) Conforming amendment.--Subsection (b) of section 179 of 
        such Code is amended by striking paragraph (6).
    (b) Computer Software.--Section 179(d)(1)(A)(ii) of the Internal 
Revenue Code of 1986 is amended by striking ``2013'' and inserting 
``2014''.
    (c) Election.--Section 179(c)(2) of the Internal Revenue Code of 
1986 is amended by striking ``2013'' and inserting ``2014''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) of the Internal Revenue 
        Code of 1986 is amended by striking ``2010 or 2011'' and 
        inserting ``2010, 2011, 2012, or 2013''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) of such Code is 
                amended by striking ``2011'' each place it appears and 
                inserting ``2013''.
                    (B) Conforming amendment.--The heading for 
                subparagraph (C) of section 179(f)(4) of such Code is 
                amended by striking ``2010'' and inserting ``2010, 2011 
                and 2012''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 6. INSTRUCTIONS FOR TAX REFORM.

    (a) In General.--The Senate Committee on Finance shall report 
legislation not later than 12 months after the date of the enactment of 
this Act that consists of changes in laws within its jurisdiction which 
meet the requirements of subsection (b).
    (b) Requirements.--Legislation meets the requirements of this 
subsection if the legislation--
            (1) simplifies the Internal Revenue Code of 1986 by 
        reducing the number of tax preferences and reducing individual 
        tax rates proportionally, with the highest individual tax rate 
        significantly below 35 percent;
            (2) permanently repeals the alternative minimum tax;
            (3) is projected, when compared to the current tax policy 
        baseline, to be revenue neutral or result in revenue losses;
            (4) has a dynamic effect which is projected to stimulate 
        economic growth and lead to increased revenue;
            (5) applies any increased revenue from stimulated economic 
        growth to additional rate reductions and does not permit any 
        such increased revenue to be used for additional Federal 
        spending;
            (6) retains a progressive tax code; and
            (7) provides for revenue-neutral reform of the taxation of 
        corporations and businesses by--
                    (A) providing a top tax rate on corporations of no 
                more than 25 percent; and
                    (B) implementing a competitive territorial tax 
                system.

Summary: Tax Hike Prevention Act of 2012 - Extends through 2013: (1) the Economic Growth and Tax Relief Reconciliation Act of 2001, and (2) the reduction in the tax rates for dividend and capital gain income enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Amends the Internal Revenue Code to extend for an additional two years: (1) the increased exemption amount for the alternative minimum tax (AMT); (2) the offset against the AMT for certain nonrefundable personal tax credits; and (3) the increased expensing allowance for depreciable business assets, including computer software.

Directs the Senate Committee on Finance to report tax reform legislation not later than 12 months after the enactment of this Act.