Highway Investment, Job Creation, and Economic Growth Act of 2012

Bill: 112-s-2132
Sponsor: Sen. Baucus, Max [D-MT]
Introduced: 2012-02-27 in the Senate
Policy area: Taxation
Subjects: Alternative and renewable resources
Business investment and capital
Commuting
Corporate finance and management
Employee benefits and pensions
Government employee pay, benefits, personnel management
Government trust funds
Health care costs and insurance
Income tax credits
Income tax deductions
Income tax exclusion
Income tax rates
Infrastructure development
Interest, dividends, interest rates
Land use and conservation
Life, casualty, property insurance
Medicare
Motor fuels
Motor vehicles
Public transit
Roads and highways
Sales and excise taxes
Securities
Solid waste and recycling
State and local finance
Tariffs
Tax administration and collection, taxpayers
Transportation programs funding
Visas and passports
Water use and supply

Summary:
action_date: 2012-02-27
text: 
Highway Investment, Job Creation, and Economic Growth Act of 2012 - Amends the Internal Revenue Code to: (1) extend through September 30, 2013, the expenditure authority for the Highway Trust Fund; and (2) extend through September 30, 2015, current excise tax rates on motor fuels (i.e., gasoline, diesel fuel and kerosene, and special motor fuels), excise taxes on heavy highway vehicles and highway tires, and the use tax on heavy vehicles.
 
Extends through 2012: (1) the special exemption for small bond issuers from tax-exempt interest expense allocation rules, (2) the exemption of tax-exempt interest on private activity bonds from treatment as an item of tax preference for alternative minimum tax (AMT) purposes, and (3) the equalization of the tax exclusion for employer-provided mass transit and parking benefits. Exempts certain sewage and water facility bonds issued before January 1, 2018, from the volume cap applicable to private activity bonds.
 
Allows a state, through a state infrastructure bank, to issue transportation and regional infrastructure project (TRIP) bonds to be used for capital improvements to transportation infrastructure projects.
 
Transfers to the Highway Trust Fund: (1) $3 billion from the Leaking Underground Storage Tank (LUST) Trust Fund and amounts from a reduction in the LUST Trust Fund financing rate, (2) amounts received from the gas guzzler tax, and (3) tariffs on certain motor cars. 
 
Provides for the denial, revocation, or limitation of a passport for individuals with a seriously delinquent tax debt in excess of $50,000.
 
Imposes a 100% continuous levy on payments due to Medicare providers and suppliers for delinquent tax debts. 
 
Allows the enforcement of a federal tax levy on thrift savings plan accounts. 
 
Modifies rules for required distributions from tax-exempt pension plans.
 
Increases the recovery period for the depreciation of highway property subject to a long-term lease. 
 
Extends through 2021 the allowance of transfers of excess pension assets of a defined benefit plan to retiree health benefits accounts. Allows the transfer of such excess pension assets to retiree group term life insurance accounts.

action_date: 2012-02-27
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 
Highway Investment, Job Creation, and Economic Growth Act of 2012 - 
Title I: Extension of Highway Trust Fund Expenditure Authority and Related Taxes
 - (Sec. 101) Amends the Internal Revenue Code to: (1) extend through September 30, 2013, the expenditure authority for the Highway Trust Fund; and (2) extend through September 30, 2015, current excise tax rates on motor fuels (i.e., gasoline, diesel fuel and kerosene, and special motor fuels), excise taxes on heavy highway vehicles and highway tires, and the use tax on heavy vehicles.
 

Title II: Other Provisions 
- (Sec. 201) Extends through 2012: (1) the special exemption for small bond issuers (issuers of $10 million or less of tax-exempt obligations in a calendar year) from tax-exempt interest expense allocation rules, (2) the exemption of tax-exempt interest on private activity bonds from treatment as an item of tax preference for alternative minimum tax (AMT) purposes, and (3) the equalization of the tax exclusion for employer-provided mass transit and parking benefits. 
 
(Sec. 203) Allows a state, through a state infrastructure bank, to issue transportation and regional infrastructure project (TRIP) bonds and deposit proceeds into the TRIP bond account of the bank. Requires such proceeds to be used for capital improvements to any transportation infrastructure project of any governmental unit or other person, including roads, bridges, rail and transit systems, ports, and inland waterways. 
 
(Sec. 205) Exempts sewage and water facility bonds issued before January 1, 2018, from the volume cap applicable to private activity bonds.
 

Title III: Revenue Provisions
 - (Sec. 301) Transfers to the Highway Trust Fund: (1) $3 billion from the Leaking Underground Storage Tank (LUST) Trust Fund, (2) one-third of the LUST Trust Fund financing rate with respect to motor fuels, (3) revenue from the gas guzzler tax, (4) additional revenue from restrictions placed on the cellulosic biofuel producer tax credit by this Act, and (5) certain tariffs on motor cars and other motor vehicles with a specified cylinder capacity.
 
(Sec. 303) Prohibits after February 3, 2012, claims under the cellulosic biofuel producer tax credit for fuels containing more than a 4% combination of water and sediment, an ash content of more than 1%, or an acid number greater than 25.
 
(Sec. 305) Requires the Secretary of the Treasury to notify the Secretary of State of the identity of any individual who has a seriously delinquent tax debt in excess of $50,000 (adjusted for inflation after 2012) for action with respect to the denial, revocation, or limitation of a passport for such individual. 
 
(Sec. 306) Imposes the 100% continuous levy on payments due to Medicare providers and suppliers for delinquent tax debts.
 
(Sec. 308) Allows nonrecognition of gain for income tax purposes in a corporate reorganization for corporations that exchange property solely for stock other than nonqualified preferred stock.
 
(Sec. 309) Allows the enforcement of a federal tax levy on thrift savings plan accounts. 
 
(Sec. 310) Modifies rules for required distributions from tax-exempt pension plans to an employee who dies before such employee's entire interest is distributed to require such interest to be distributed within five years after the death of such employee, subject to exceptions for eligible designated beneficiaries and surviving spouses of such employee. Defines &quot;eligible designated beneficiary&quot; to include a disabled or chronically-ill individual.
 
Modifies the rule for required distributions from tax-exempt pension plans for an employee who becomes a 5% owner of the employer establishing such plan after reaching age 70-1/2 to allow distributions to begin after the date such employee obtains such ownership interest.
 
(Sec. 311) Requires a 45-year recovery period for the depreciation of applicable leased highway property, using the straight line method of depreciation. Defines &quot;applicable leased highway property&quot; as highway property subject to a lease to a private entity from a state or locality, under which such entity receives a right-of way on public lands underlying the highway property and a grant of a franchise permitting the entity to receive funds (e.g., tolls) from the operation of such highway.
 
Requires that the amortization period of intangibles relating to applicable leased highway property shall not be less than the term of the applicable lease for such property.
 
(Sec. 312) Extends through 2021 the authority for transfers of excess pension assets of a defined benefit plan to a retiree health benefits account. 
 
(Sec. 313) Allows the transfer of excess pension assets of a defined benefit plan to a retiree group term life insurance account.
 
 

 


Legislative actions:
action_date: 2012-02-27
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 327.
action_date: 2012-02-27
text: Committee on Finance. Original measure reported to Senate by Senator Baucus. With written report No. 112-152. Additional views filed.
action_date: 2012-02-27
text: Committee on Finance. Original measure reported to Senate by Senator Baucus. With written report No. 112-152. Additional views filed.
action_date: 2012-02-27
text: Introduced in Senate