Tax Extension Act of 1991
PL 102-227 (H.R.3909), enacted 12/11/1991

105 STAT. 1686 
PUBLIC LAW 102-227—DEC. 11, 1991 
Public Law 102-227 
102d Congress 
An Act 
Dec. 11, 1991 
[H.R. 3909] 
Tax Extension 
Act of 1991. 
26 u s e 1 note. 
To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, 
and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This Act may be cited as the "Tax Extension 
Act of 1991". 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section 
or other provision of the Internal Revenue Code of 1986. 
TITLE I—6-MONTH EXTENSION OF 
CERTAIN EXPIRING TAX PROVISIONS 
SEC. 101. ALLOCATION OF RESEARCH AND EXPERIMENTAL EXPENDI-
TURES. 
(a) EXTENSION.—Paragraph (5) of section 864(f) (relating to alloca-
tion of research and experimental expenditures) is amended to read 
as follows: 
"(5) YEARS TO WHICH RULE APPLIES.— 
"(A) IN GENERAL.—This subsection shall apply to the 
taxpayer's first 3 taxable years beginning after August 1, 
1989, and on or before August 1,1992. 
"(B) REDUCTION.—Notwithstanding subparagraph (A), in 
the case of the taxpayer's first taxable year beginning after 
August 1, 1991, this subsection shall only apply to qualified 
research and experimental expenditures incurred during 
the first 6 months of such taxable year." 
26 use 864 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to taxable years beginning after August 1,1989. 
SEC. 102. RESEARCH CREDIT. 
(a) EXTENSION.—Subsection (h) of section 41 (relating to credit for 
increasing research activities) is amended— 
(1) by striking "December 31, 1991" each place it appears and 
inserting "June 30,1992", and 
(2) by striking "January 1, 1992" each place it appears and 
inserting "July 1,1992". 
(b) 
CONFORMING AMENDMENT.—Subparagraph (D) of section 
28(b)(1) is amended by striking "December 31, 1991" and inserting 
"June 30, 1992". 
26 use 28 note. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to taxable years ending after December 31,1991. 
PUBLIC LAW 102-227—DEC. 11, 1991 
105 STAT. 1687 
SEC. 103. EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE. 
(a) EXTENSION.— 
(1) IN GENERAL.—Subsection (d) of section 127 (relating to 
educational assistance programs) is amended by striking 
"December 31,1991" and inserting "June 30,1992". 
(2) SPECIAL RULE.—In the case of any taxable year beginning 26 USC127 note, 
in 1992, only amounts paid before July 1, 1992, by the employer 
for educational assistance for the employee shall be taken into 
account in determining the amount excluded under section 127 
of the Internal Revenue Code of 1986 with respect to such 
employee for such taxable year. 
(b) EFFECTIVE DATE.—The amendment made by this section shall 26 use 127 note, 
apply to tEixable years beginning after December 31,1991. 
SEC. 104. EMPLOYER-PROVIDED GROUP LEGAL SERVICES PLANS. 
(a) EXTENSION.— 
(1) IN GENERAL.—Subsection (e) of section 120 (relating to 
amounts received under qualified group legal services plans) is 
amended by striking "December 31, 1991" and inserting "June 
30,1992". 
(2) SPECIAL RULE.—In the case of any taxable year beginning 
in 1992, only amounts paid before July 1,1992, by the employer 
for coverage for the employee, his spouse, or his dependents, 
under a qualified group legal services plan for periods before 
July 1, 1992, shall be taken into account in determining the 
amount excluded under section 120 of the Internal Revenue 
Code of 1986 with respect to such employee for such taxable 
year. 
(b) EFFECTIVE DATE.—The amendment made by this section shall 26 USC 120 note, 
apply to taxable years beginning after December 31,1991. 
SEC. 105. TARGETED JOBS CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 51(c) (relating to termi-
nation) is amended by striking "December 31, 1991" and inserting 
"June 30,1992". 
(b) EFFECTIVE DATE.—The amendment made by this section shall 26 use 51 note, 
apply to individuals who begin work for the employer after Decem-
ber 31,1991. 
SEC. 106. ENERGY INVESTMENT CREDIT FOR SOLAR AND GEOTHERMAL 
PROPERTY. 
Subparagraph (B) of section 48(aX2) (relating to energy percent-
age) is amended by striking "December 31, 1991" and inserting 
"June 30,1992". 
SEC. 107. LOW-INCOME HOUSING CREDIT. 
(a) EXTENSION.— 
(1) Paragraph (1) of section 42(o) is amended— 
(A) by striking ", for any calendar year after 1991", 
(B) by inserting before the comma at the end of subpara-
graph (A) "to any amount allocated after June 30, 1992", 
and 
(C) by striking "1991" in subparagraph (B) and inserting 
"June 30,1992". 
(2) Paragraph (2) of section 42(o) is amended— 
(A) by striking "1992" each place it appears and inserting 
"July 1,1992", 
105 STAT. 1688 
PUBLIC LAW 102-227—DEC. 11, 1991 
(B) by striking "December 31, 1991" in subparagraph (B) 
and inserting "June 30,1992", 
(C) by striking "December 31, 1993" in subparagraph (B) 
and inserting "June 30,1994", and 
(D) by striking "January 1,1994" in subparagraph (C) and 
inserting "July 1,1994". 
26 use 42 note. 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
apply to calendar years after 1991. 
SEC. 108. QUALIFIED MORTGAGE BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 143(a)(1) (defining 
qualified mortgage bond) is amended by striking "December 31, 
1991" each place it appears and inserting "June 30,1992". 
(b) MORTGAGE CREDIT CERTIFICATES.—Subsection (h) of section 25 
(relating to interest on certain home mortgages) is amended by 
striking "December 31,1991" and inserting "June 30,1992". 
(c) EFFECTIVE DATES.— 
26 use 143 note. 
(1) BoNDS.—The amendment made by subsection (a) shall 
apply to bonds issued after December 31,1991. 
26 use 25 note. 
(2) CERTIFICATES.—The amendment made by subsection (b) 
shall apply to elections for periods after December 31, 1991. 
SEC. 109. QUALIFIED SMALL ISSUE BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 144(a)(12) (relating 
to termination dates) is amended by striking "December 31, 1991" 
and inserting "June 30,1992". 
26 use 144 note. 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
apply to bonds issued after December 31,1991. 
SEC. 110. HEALTH INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS. 
(a) EXTENSION.— 
(1) IN GENERAL.—Paragraph (6) of section 162(1) (relating to 
special rules for health insurance costs of self-employed individ-
uals) is amended by striking "December 31, 1991" and inserting 
"June 30,1992". 
26 use 162 note. 
(2) SPECIAL RULE.—In the case of any taxable year beginning 
in 1992— 
(A) only amounts paid before July 1, 1992, by the individ-
ual for insurance coverage for periods before July 1, 1992, 
shall be taken into account in determining the amount 
deductible under section 162(1) of the Internal Revenue 
Code of 1986 with respect to such individual for such tax-
able year, and 
(B) for purposes of subparagraph (A) of section 162(1X2) of 
such Code, the amount of the earned income described in 
such subparagraph taken into account for such taxable year 
shall be the amount which bears the same ratio to the total 
amount of such earned income as the number of months in 
such taxable year ending before July 1, 1992, bears to the 
number of months in such taxable year. 
26 use 162 note. 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
apply to tsixable years beginning after December 31,1991. 
SEC. 
1
1
1
. 
EXPENSES 
FOR 
DRUGS 
FOR 
RARE 
CONDITIONS. 
(a) IN GENERAL.—Subsection (e) of section 28 (relating to clinical 
testing expenses for certain drugs for rare diseases or conditions) is 
PUBLIC LAW 102-227—DEC. 11, 1991 
105 STAT. 1689 
amended by striking "December 31, 1991" and inserting "June 30, 
1992". 
(b) EFFECTIVE DATE.—The amendment made by this section shall 26 use 28 note, 
apply to taxable years ending after December 31,1991. 
SEC. 112. CHARITABLE CONTRIBUTIONS OF APPRECIATED PROPERTY. 
Subparagraph (B) of section 57(aX6) (relating to appreciated prop-
erty charitable deduction) is amended by adding at the end thereof 
the following new sentence: "In the case of a contribution made 
before July 1, 1992, in a taxable year beginning in 1992, such term 
shall not include any tangible personal property," 
TITLE II—MODIFICATION TO CORPORATE 
ESTIMATED TAX PROVISIONS 
SEC. 201. TEMPORARY INCREASE IN AMOUNT OF CORPORATE ESTIMATED 
TAX PAYMENTS. 
(a) GENERAL RULE.—Subsection (d) of section 6655 (relating to 
amount of required installment) is amended by adding at the end 
thereof the following new paragraph: 
"(3) TEMPORARY INCREASE IN AMOUNT OF INSTALLMENT BASED 
ON CURRENT Y
E
A
R TAX.—In the case of any taxable year begin-
ning after 1991 and before 1997— 
"(A) Paragraph (l)(B)(i) and subsection (e)(3)(A)(i) shall be 
applied by substituting for '90 percent' each place it ap-
pears the current year percentage determined under the 
following table: 
In 
the 
case 
of 
a 
taxable 
year 
The current year 
beginning in: 
percentage 
is: 
1992 
93 
1993 
or 1994 
94 
1995 
or 1996 
95. 
"(B) Appropriate adjustments to the table contained in 
subsection (e)(2)(B)(ii) shall be made to reflect the provisions 
of subparagraph (A)." 
(b) CONFORMING AMENDMENT.—Paragraph (1) of section 6655(e) is 
amended by striking "modified by subsection (d)(2)" and inserting 
"modified by paragraphs (2) and (3) of subsection (d)". 
49-194 O - 92 - 24 : QL. 3 Part 2 
105 STAT. 1690 
PUBLIC LAW 102-227—DEC. 11, 1991 
26 use 6655 
(c) EFFECTIVE DATE.—^h© amendments made by subsection (a) 
^°^- 
shall apply to taxable years beginning after December 31, 1991. 
Approved December 11, 1991. 
LEGISLATIVE HISTORY—H.R. 3909 (S. 2042): 
HOUSE REPORTS: No. 102-377 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 137 (1991): 
Nov. 26, considered and passed House. 
Nov. 27, considered and passed Senate.