Tax Increase Prevention Act of 2014
PL 113-295 (H.R.5771), enacted 12/19/2014

[113th Congress Public Law 295]
[From the U.S. Government Publishing Office]



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                   TAX INCREASE PREVENTION AMENDMENTS

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Public Law 113-295
113th Congress

                                 An Act


 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions and make technical corrections, to amend the Internal Revenue 
     Code of 1986 to provide for the tax treatment of ABLE accounts 
  established under State programs for the care of family members with 
  disabilities, and for other purposes. <<NOTE: Dec. 19, 2014 -  [H.R. 
                                5771]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

DIVISION A-- <<NOTE: Tax Increase Prevention Act of 2014.>> TAX INCREASE 
PREVENTION ACT OF 2014
SECTION 1. SHORT TITLE, ETC.

    (a) <<NOTE: 26 USC 1 note.>>  Short Title.--This division may be 
cited as the ``Tax Increase Prevention Act of 2014''.

    (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.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

             DIVISION A--TAX INCREASE PREVENTION ACT OF 2014

Sec. 1. Short title, etc.

                  TITLE I--CERTAIN EXPIRING PROVISIONS

                  Subtitle A--Individual Tax Extenders

Sec. 101. Extension of deduction for certain expenses of elementary and 
           secondary school teachers.
Sec. 102. Extension of exclusion from gross income of discharge of 
           qualified principal residence indebtedness.
Sec. 103. Extension of parity for employer-provided mass transit and 
           parking benefits.
Sec. 104. Extension of mortgage insurance premiums treated as qualified 
           residence interest.
Sec. 105. Extension of deduction of State and local general sales taxes.
Sec. 106. Extension of special rule for contributions of capital gain 
           real property made for conservation purposes.
Sec. 107. Extension of above-the-line deduction for qualified tuition 
           and related expenses.
Sec. 108. Extension of tax-free distributions from individual retirement 
           plans for charitable purposes.

                   Subtitle B--Business Tax Extenders

Sec. 111. Extension of research credit.
Sec. 112. Extension of temporary minimum low-income housing tax credit 
           rate for non-federally subsidized buildings.
Sec. 113. Extension of military housing allowance exclusion for 
           determining whether a tenant in certain counties is low-
           income.

[[Page 128 STAT. 4011]]

Sec. 114. Extension of Indian employment tax credit.
Sec. 115. Extension of new markets tax credit.
Sec. 116. Extension of railroad track maintenance credit.
Sec. 117. Extension of mine rescue team training credit.
Sec. 118. Extension of employer wage credit for employees who are active 
           duty members of the uniformed services.
Sec. 119. Extension of work opportunity tax credit.
Sec. 120. Extension of qualified zone academy bonds.
Sec. 121. Extension of classification of certain race horses as 3-year 
           property.
Sec. 122. Extension of 15-year straight-line cost recovery for qualified 
           leasehold improvements, qualified restaurant buildings and 
           improvements, and qualified retail improvements.
Sec. 123. Extension of 7-year recovery period for motorsports 
           entertainment complexes.
Sec. 124. Extension of accelerated depreciation for business property on 
           an Indian reservation.
Sec. 125. Extension of bonus depreciation.
Sec. 126. Extension of enhanced charitable deduction for contributions 
           of food inventory.
Sec. 127. Extension of increased expensing limitations and treatment of 
           certain real property as section 179 property.
Sec. 128. Extension of election to expense mine safety equipment.
Sec. 129. Extension of special expensing rules for certain film and 
           television productions.
Sec. 130. Extension of deduction allowable with respect to income 
           attributable to domestic production activities in Puerto 
           Rico.
Sec. 131. Extension of modification of tax treatment of certain payments 
           to controlling exempt organizations.
Sec. 132. Extension of treatment of certain dividends of regulated 
           investment companies.
Sec. 133. Extension of RIC qualified investment entity treatment under 
           FIRPTA.
Sec. 134. Extension of subpart F exception for active financing income.
Sec. 135. Extension of look-thru treatment of payments between related 
           controlled foreign corporations under foreign personal 
           holding company rules.
Sec. 136. Extension of temporary exclusion of 100 percent of gain on 
           certain small business stock.
Sec. 137. Extension of basis adjustment to stock of S corporations 
           making charitable contributions of property.
Sec. 138. Extension of reduction in S-corporation recognition period for 
           built-in gains tax.
Sec. 139. Extension of empowerment zone tax incentives.
Sec. 140. Extension of temporary increase in limit on cover over of rum 
           excise taxes to Puerto Rico and the Virgin Islands.
Sec. 141. Extension of American Samoa economic development credit.

                    Subtitle C--Energy Tax Extenders

Sec. 151. Extension of credit for nonbusiness energy property.
Sec. 152. Extension of second generation biofuel producer credit.
Sec. 153. Extension of incentives for biodiesel and renewable diesel.
Sec. 154. Extension of production credit for Indian coal facilities 
           placed in service before 2009.
Sec. 155. Extension of credits with respect to facilities producing 
           energy from certain renewable resources.
Sec. 156. Extension of credit for energy-efficient new homes.
Sec. 157. Extension of special allowance for second generation biofuel 
           plant property.
Sec. 158. Extension of energy efficient commercial buildings deduction.
Sec. 159. Extension of special rule for sales or dispositions to 
           implement FERC or State electric restructuring policy for 
           qualified electric utilities.
Sec. 160. Extension of excise tax credits relating to certain fuels.
Sec. 161. Extension of credit for alternative fuel vehicle refueling 
           property.

Subtitle D--Extenders Relating to Multiemployer Defined Benefit Pension 
                                  Plans

Sec. 171. Extension of automatic extension of amortization periods.
Sec. 172. Extension of shortfall funding method and endangered and 
           critical rules.

                     TITLE II--TECHNICAL CORRECTIONS

Sec. 201. Short title.
Sec. 202. Amendments relating to American Taxpayer Relief Act of 2012.
Sec. 203. Amendment relating to Middle Class Tax Relief and Job Creation 
           Act of 2012.

[[Page 128 STAT. 4012]]

Sec. 204. Amendment relating to FAA Modernization and Reform Act of 
           2012.
Sec. 205. Amendments relating to Regulated Investment Company 
           Modernization Act of 2010.
Sec. 206. Amendments relating to Tax Relief, Unemployment Insurance 
           Reauthorization, and Job Creation Act of 2010.
Sec. 207. Amendments relating to Creating Small Business Jobs Act of 
           2010.
Sec. 208. Clerical amendment relating to Hiring Incentives to Restore 
           Employment Act.
Sec. 209. Amendments relating to American Recovery and Reinvestment Tax 
           Act of 2009.
Sec. 210. Amendments relating to Energy Improvement and Extension Act of 
           2008.
Sec. 211. Amendments relating to Tax Extenders and Alternative Minimum 
           Tax Relief Act of 2008.
Sec. 212. Clerical amendments relating to Housing Assistance Tax Act of 
           2008.
Sec. 213. Amendments and provision relating to Heroes Earnings 
           Assistance and Relief Tax Act of 2008.
Sec. 214. Amendments relating to Economic Stimulus Act of 2008.
Sec. 215. Amendments relating to Tax Technical Corrections Act of 2007.
Sec. 216. Amendment relating to Tax Relief and Health Care Act of 2006.
Sec. 217. Amendment relating to Safe, Accountable, Flexible, Efficient 
           Transportation Equity Act of 2005: A Legacy for Users.
Sec. 218. Amendments relating to Energy Tax Incentives Act of 2005.
Sec. 219. Amendments relating to American Jobs Creation Act of 2004.
Sec. 220. Other clerical corrections.
Sec. 221. Deadwood provisions.

                 TITLE III--JOINT COMMITTEE ON TAXATION

Sec. 301. Increased refund and credit threshold for Joint Committee on 
           Taxation review of C corporation return.

                       TITLE IV--BUDGETARY EFFECTS

Sec. 401. Budgetary effects.

       DIVISION B--ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014

Sec. 1. Short title; etc.

                    TITLE I--QUALIFIED ABLE PROGRAMS

Sec. 101. Purposes.
Sec. 102. Qualified ABLE programs.
Sec. 103. Treatment of ABLE accounts under certain Federal programs.
Sec. 104. Treatment of ABLE accounts in bankruptcy.
Sec. 105. Investment direction rule for 529 plans.

                            TITLE II--OFFSETS

Sec. 201. Correction to workers compensation offset age.
Sec. 202. Accelerated application of relative value targets for 
           misvalued services in the Medicare physician fee schedule.
Sec. 203. Consistent treatment of vacuum erection systems in Medicare 
           Parts B and D.
Sec. 204. One-year delay of implementation of oral-only policy under 
           Medicare ESRD prospective payment system.
Sec. 205. Modification relating to Inland Waterways Trust Fund financing 
           rate.
Sec. 206. Certified professional employer organizations.
Sec. 207. Exclusion of dividends from controlled foreign corporations 
           from the definition of personal holding company income for 
           purposes of the personal holding company rules.
Sec. 208. Inflation adjustment for certain civil penalties under the 
           Internal Revenue Code of 1986.
Sec. 209. Increase in continuous levy.

                  TITLE I--CERTAIN EXPIRING PROVISIONS

                  Subtitle A--Individual Tax Extenders

SEC. 101. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
                        ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) <<NOTE: 26 USC 
62.>>  is amended by striking ``or 2013'' and inserting ``2013, or 
2014''.

[[Page 128 STAT. 4013]]

    (b) <<NOTE: 26 USC 62 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 102. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF 
                        QUALIFIED PRINCIPAL RESIDENCE 
                        INDEBTEDNESS.

    (a) In General.--Subparagraph (E) of section 108(a)(1) <<NOTE: 26 
USC 108.>>  is amended by striking ``January 1, 2014'' and inserting 
``January 1, 2015''.

    (b) <<NOTE: 26 USC 108 note.>>  Effective Date.--The amendment made 
by this section shall apply to indebtedness discharged after December 
31, 2013.
SEC. 103. EXTENSION OF PARITY FOR EMPLOYER-PROVIDED MASS TRANSIT 
                        AND PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 132 note.>>  Effective Date.--The amendment made 
by this section shall apply to months after December 31, 2013.
SEC. 104. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS 
                        QUALIFIED RESIDENCE INTEREST.

    (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) is 
amended by striking ``December 31, 2013'' and inserting ``December 31, 
2014''.
    (b) <<NOTE: 26 USC 163 note.>>  Effective Date.--The amendment made 
by this section shall apply to amounts paid or accrued after December 
31, 2013.
SEC. 105. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL SALES 
                        TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 164 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 106. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAPITAL 
                        GAIN REAL PROPERTY MADE FOR CONSERVATION 
                        PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--Clause 
(iii) of section 170(b)(2)(B) is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2014''.
    (c) <<NOTE: 26 USC 170 note.>>  Effective Date.--The amendments made 
by this section shall apply to contributions made in taxable years 
beginning after December 31, 2013.
SEC. 107. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 
                        TUITION AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 222 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 108. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
                        RETIREMENT PLANS FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.

[[Page 128 STAT. 4014]]

    (b) <<NOTE: 26 USC 408 note.>>  Effective Date.--The amendment made 
by this section shall apply to distributions made in taxable years 
beginning after December 31, 2013.

                   Subtitle B--Business Tax Extenders

SEC. 111. EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Paragraph (1) of section 41(h) <<NOTE: 26 USC 
41.>>  is amended by striking ``paid or incurred'' and all that follows 
and inserting ``paid or incurred after December 31, 2014.''.

    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended to read as follows:
                    ``(D) Special rule.--If section 41 is not in effect 
                for any period, such section shall be deemed to remain 
                in effect for such period for purposes of this 
                paragraph.''.

    (c) <<NOTE: 26 USC 41 note.>>  Effective Date.--The amendments made 
by this section shall apply to amounts paid or incurred after December 
31, 2013.
SEC. 112. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME HOUSING TAX 
                        CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED 
                        BUILDINGS.

    (a) In General.--Subparagraph (A) of section 42(b)(2) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 42 note.>>  Effective Date.--The amendment made 
by this section shall take effect on January 1, 2014.
SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE EXCLUSION FOR 
                        DETERMINING WHETHER A TENANT IN CERTAIN 
                        COUNTIES IS LOW-INCOME.

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 <<NOTE: 26 USC 142 note.>>  is amended by 
striking ``January 1, 2014'' each place it appears and inserting 
``January 1, 2015''.

    (b) <<NOTE: 26 USC 142 note.>>  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. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A 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. 115. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) is amended by 
striking ``and 2013'' and inserting ``2013, and 2014''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 45D(f) 
is amended by striking ``2018'' and inserting ``2019''.
    (c) <<NOTE: 26 USC 45D note.>>  Effective Date.--The amendments made 
by this section shall apply to calendar years beginning after December 
31, 2013.
SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 45G note.>>  Effective Date.--The amendment made 
by this section shall apply to expenditures paid or incurred in taxable 
years beginning after December 31, 2013.

[[Page 128 STAT. 4015]]

SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N <<NOTE: 26 USC 
45N.>>  is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.

    (b) <<NOTE: 26 USC 45N note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 118. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE 
                        ACTIVE DUTY MEMBERS OF THE UNIFORMED 
                        SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 45P.>>  Effective Date.--The amendment made by 
this section shall apply to payments made after December 31, 2013.
SEC. 119. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Paragraph (4) of section 51(c) is amended by 
striking ``for the employer'' and all that follows and inserting ``for 
the employer after December 31, 2014''.
    (b) <<NOTE: 26 USC 51 note.>>  Effective Date.--The amendment made 
by this section shall apply to individuals who begin work for the 
employer after December 31, 2013.
SEC. 120. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Extension.--Paragraph (1) of section 54E(c) is amended by 
striking ``and 2013'' and inserting ``2013, and 2014''.
    (b) <<NOTE: 26 USC 54E note.>>  Effective Date.--The amendment made 
by this section shall apply to obligations issued after December 31, 
2013.
SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES AS 3-
                        YEAR PROPERTY.

    (a) In General.--Clause (i) of section 168(e)(3)(A) is amended--
            (1) by striking ``January 1, 2014'' in subclause (I) and 
        inserting ``January 1, 2015'', and
            (2) by striking ``December 31, 2013'' in subclause (II) and 
        inserting ``December 31, 2014''.

    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 
                        QUALIFIED LEASEHOLD IMPROVEMENTS, 
                        QUALIFIED RESTAURANT BUILDINGS AND 
                        IMPROVEMENTS, AND QUALIFIED RETAIL 
                        IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 168(e)(3)(E) 
are each amended by striking ``January 1, 2014'' and inserting ``January 
1, 2015''.
    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                        ENTERTAINMENT COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.

[[Page 128 STAT. 4016]]

SEC. 124. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS 
                        PROPERTY ON AN INDIAN RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) <<NOTE: 26 USC 
168.>>  is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.

    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 125. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2015'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2016'', and
            (2) by striking ``January 1, 2014'' each place it appears 
        and inserting ``January 1, 2015''.

    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) is amended by striking ``January 1, 2014 (January 
1, 2015'' and inserting ``January 1, 2015 (January 1, 2016''.
    (c) Extension of Election To Accelerate the AMT Credit in Lieu of 
Bonus Depreciation.--
            (1) In general.--Subclause (II) of section 168(k)(4)(D)(iii) 
        is amended by striking ``January 1, 2014'' and inserting 
        ``January 1, 2015''.
            (2) Round 4 extension property.--Paragraph (4) of section 
        168(k) is amended by adding at the end the following new 
        subparagraph:
                    ``(K) Special rules for round 4 extension 
                property.--
                          ``(i) In general.--In the case of round 4 
                      extension property, in applying this paragraph to 
                      any taxpayer--
                                    ``(I) the limitation described in 
                                subparagraph (B)(i) and the business 
                                credit increase amount under 
                                subparagraph (E)(iii) thereof shall not 
                                apply, and
                                    ``(II) the bonus depreciation 
                                amount, maximum amount, and maximum 
                                increase amount shall be computed 
                                separately from amounts computed with 
                                respect to eligible qualified property 
                                which is not round 4 extension property.
                          ``(ii) Election.--
                                    ``(I) A taxpayer who has an election 
                                in effect under this paragraph for round 
                                3 extension property shall be treated as 
                                having an election in effect for round 4 
                                extension property unless the taxpayer 
                                elects to not have this paragraph apply 
                                to round 4 extension property.
                                    ``(II) A taxpayer who does not have 
                                an election in effect under this 
                                paragraph for round 3 extension property 
                                may elect to have this paragraph apply 
                                to round 4 extension property.
                          ``(iii) Round 4 extension property.--For 
                      purposes of this subparagraph, the term `round 4 
                      extension property' means property which is 
                      eligible qualified property solely by reason of 
                      the extension of the application of the special 
                      allowance under paragraph (1) pursuant to the 
                      amendments made by section 125(a) of the Tax 
                      Increase Prevention Act of 2014 (and the 
                      application

[[Page 128 STAT. 4017]]

                      of such extension to this paragraph pursuant to 
                      the amendment made by section 125(c) of such 
                      Act).''.

    (d) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 <<NOTE: 26 
        USC 168.>>  is amended by striking ``January 1, 2014'' and 
        inserting ``January 1, 2015''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2014'' and inserting ``pre-
        january 1, 2015''.
            (3) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2015''.
            (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2015''.
            (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2015''.

    (e) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2013, in taxable years ending after such date.
SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                        CONTRIBUTIONS OF FOOD INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 170 note.>>  Effective Date.--The amendment made 
by this section shall apply to contributions made after December 31, 
2013.
SEC. 127. 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) is amended--
                    (A) by striking ``beginning in 2010, 2011, 2012, or 
                2013'' in subparagraph (B) and inserting ``beginning 
                after 2009 and before 2015'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2014''.
            (2) Reduction in limitation.--Section 179(b)(2) is amended--
                    (A) by striking ``beginning in 2010, 2011, 2012, or 
                2013'' in subparagraph (B) and inserting ``beginning 
                after 2009 and before 2015'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2014''.

    (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by 
striking ``2014'' and inserting ``2015''.
    (c) Election.--Section 179(c)(2) is amended by striking ``2014'' and 
inserting ``2015''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) is amended by striking 
        ``beginning in 2010, 2011, 2012, or 2013'' and inserting 
        ``beginning after 2009 and before 2015''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) is amended by 
                striking ``2013'' each place it appears and inserting 
                ``2014''.
                    (B) Conforming amendment.--The heading of 
                subparagraph (C) of section 179(f)(4) is amended by 
                striking ``2011 and 2012'' and inserting ``2011, 2012, 
                and 2013''.

[[Page 128 STAT. 4018]]

    (e) <<NOTE: 26 USC 179 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E <<NOTE: 26 USC 
179E.>>  is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.

    (b) <<NOTE: 26 USC 179E note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM 
                        AND TELEVISION PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 181 note.>>  Effective Dates.--The amendment made 
by this section shall apply to productions commencing after December 31, 
2013.
SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                        ATTRIBUTABLE TO DOMESTIC PRODUCTION 
                        ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
            (1) by striking ``first 8 taxable years'' and inserting 
        ``first 9 taxable years'', and
            (2) by striking ``January 1, 2014'' and inserting ``January 
        1, 2015''.

    (b) <<NOTE: 26 USC 199 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 131. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CERTAIN 
                        PAYMENTS TO CONTROLLING EXEMPT 
                        ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 512 note.>>  Effective Date.--The amendment made 
by this section shall apply to payments received or accrued after 
December 31, 2013.
SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
                        INVESTMENT COMPANIES.

    (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of section 
871(k) are each amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.
    (b) <<NOTE: 26 USC 871 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2013.
SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY TREATMENT 
                        UNDER FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 897 note.>>  Effective Date.--
            (1) In general.--The amendment made by this section shall 
        take effect on January 1, 2014. Notwithstanding the preceding 
        sentence, such amendment shall not apply with respect to the 
        withholding requirement under section 1445 of the Internal 
        Revenue Code of 1986 for any payment made before the date of the 
        enactment of this Act.

[[Page 128 STAT. 4019]]

            (2) Amounts withheld on or before date of enactment.--In the 
        case of a regulated investment company--
                    (A) which makes a distribution after December 31, 
                2013, and before the date of the enactment of this Act, 
                and
                    (B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.
SEC. 134. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE FINANCING 
                        INCOME.

    (a) Exempt Insurance Income.--Paragraph (10) of section 
953(e) <<NOTE: 26 USC 953.>>  is amended--
            (1) by striking ``January 1, 2014'' and inserting ``January 
        1, 2015'', and
            (2) by striking ``December 31, 2013'' and inserting 
        ``December 31, 2014''.

    (b) Special Rule for Income Derived in the Active Conduct of 
Banking, Financing, or Similar Businesses.--Paragraph (9) of section 
954(h) is amended by striking ``January 1, 2014'' and inserting 
``January 1, 2015''.
    (c) <<NOTE: 26 USC 953 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years of foreign corporations 
beginning after December 31, 2013, and to taxable years of United States 
shareholders with or within which any such taxable year of such foreign 
corporation ends.
SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS BETWEEN 
                        RELATED CONTROLLED FOREIGN CORPORATIONS 
                        UNDER FOREIGN PERSONAL HOLDING COMPANY 
                        RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 954 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years of foreign corporations 
beginning after December 31, 2013, and to taxable years of United States 
shareholders with or within which such taxable years of foreign 
corporations end.
SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN 
                        ON CERTAIN SMALL BUSINESS STOCK.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
            (1) by striking ``January 1, 2014'' and inserting ``January 
        1, 2015'', and
            (2) by striking ``and 2013'' in the heading and inserting 
        ``2013, and 2014''.

    (b) <<NOTE: 26 USC 1202 note.>>  Effective Date.--The amendments 
made by this section shall apply to stock acquired after December 31, 
2013.
SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS 
                        MAKING CHARITABLE CONTRIBUTIONS OF 
                        PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.

[[Page 128 STAT. 4020]]

    (b) <<NOTE: 26 USC 1367 note.>>  Effective Date.--The amendment made 
by this section shall apply to contributions made in taxable years 
beginning after December 31, 2013.
SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION 
                        PERIOD FOR BUILT-IN GAINS TAX.

    (a) In General.--Subparagraph (C) of section 1374(d)(7) <<NOTE: 26 
USC 1374.>>  is amended--
            (1) by striking ``2012 or 2013'' and inserting ``2012, 2013, 
        or 2014'', and
            (2) by striking ``2012 and 2013'' in the heading and 
        inserting ``2012, 2013, and 2014''.

    (b) <<NOTE: 26 USC 1367 note.>>  Effective Date.--The amendments 
made by this section shall apply to taxable years beginning after 
December 31, 2013.
SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 1391 note.>>  Treatment of Certain Termination 
Dates Specified in Nominations.--In the case of a designation of an 
empowerment zone the nomination for which included a termination date 
which is contemporaneous with the date specified in subparagraph (A)(i) 
of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.

    (c) <<NOTE: 26 USC 1391 note.>>  Effective Dates.--The amendment 
made by this section shall apply to periods after December 31, 2013.
SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER OVER 
                        OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
                        VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 7652 note.>>  Effective Date.--The amendment made 
by this section shall apply to distilled spirits brought into the United 
States after December 31, 2013.
SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 <<NOTE: 26 USC 30A note.>>  is 
amended--
            (1) by striking ``January 1, 2014'' each place it appears 
        and inserting ``January 1, 2015'',
            (2) by striking ``first 8 taxable years'' in paragraph (1) 
        and inserting ``first 9 taxable years'', and
            (3) by striking ``first 2 taxable years'' in paragraph (2) 
        and inserting ``first 3 taxable years''.

    (b) <<NOTE: 26 USC 30A note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2013.

[[Page 128 STAT. 4021]]

                    Subtitle C--Energy Tax Extenders

SEC. 151. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Paragraph (2) of section 25C(g) <<NOTE: 26 USC 
25C.>>  is amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.

    (b) <<NOTE: 26 USC 25C note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 152. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 40 note.>>  Effective Date.--The amendment made 
by this section shall apply to qualified second generation biofuel 
production after December 31, 2013.
SEC. 153. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE 
                        DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 40A note.>>  Effective Date.--The amendment made 
by this section shall apply to fuel sold or used after December 31, 
2013.
SEC. 154. EXTENSION OF PRODUCTION CREDIT FOR INDIAN COAL 
                        FACILITIES PLACED IN SERVICE BEFORE 2009.

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended by 
striking ``8-year period'' each place it appears and inserting ``9-year 
period''.
    (b) <<NOTE: 26 USC 45 note.>>  Effective Date.--The amendment made 
by this section shall apply to coal produced after December 31, 2013.
SEC. 155. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES 
                        PRODUCING ENERGY FROM CERTAIN RENEWABLE 
                        RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each 
amended by striking ``January 1, 2014'' each place it appears and 
inserting ``January 1, 2015'':
            (1) Paragraph (1).
            (2) Paragraph (2)(A).
            (3) Paragraph (3)(A).
            (4) Paragraph (4)(B).
            (5) Paragraph (6).
            (6) Paragraph (7).
            (7) Paragraph (9).
            (8) Paragraph (11)(B).

    (b) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Clause (ii) of section 48(a)(5)(C) is amended by striking 
``January 1, 2014'' and inserting ``January 1, 2015''.
    (c) <<NOTE: 26 USC 48 note.>>  Effective Dates.--The amendments made 
by this section shall take effect on January 1, 2014.
SEC. 156. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.

[[Page 128 STAT. 4022]]

    (b) <<NOTE: 26 USC 45L note.>>  Effective Date.--The amendment made 
by this section shall apply to homes acquired after December 31, 2013.
SEC. 157. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERATION 
                        BIOFUEL PLANT PROPERTY.

    (a) In General.--Subparagraph (D) of section 168(l)(2) <<NOTE: 26 
USC 168.>>  is amended by striking ``January 1, 2014'' and inserting 
``January 1, 2015''.

    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 158. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                        DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) <<NOTE: 26 USC 179D note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.
SEC. 159. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
                        IMPLEMENT FERC OR STATE ELECTRIC 
                        RESTRUCTURING POLICY FOR QUALIFIED 
                        ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) <<NOTE: 26 USC 451 note.>>  Effective Date.--The amendment made 
by this section shall apply to dispositions after December 31, 2013.
SEC. 160. EXTENSION OF EXCISE TAX CREDITS RELATING TO CERTAIN 
                        FUELS.

    (a) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2013'' and inserting ``December 31, 2014''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2013'' and inserting ``December 31, 
        2014''.

    (b) Extension of Alternative Fuels Excise Tax Credits.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are each 
        amended by striking ``December 31, 2013'' and inserting 
        ``December 31, 2014''.
            (2) Outlay payments for alternative fuels.--Subparagraph (C) 
        of section 6427(e)(6) is amended by striking ``December 31, 
        2013'' and inserting ``December 31, 2014''.

    (c) Extension of Alternative Fuels Excise Tax Credits Relating to 
Liquefied Hydrogen.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3), as 
        amended by subsection (b), are each amended by striking 
        ``(September 30, 2014 in the case of any sale or use involving 
        liquefied hydrogen)''.
            (2) Outlay payments for alternative fuels.--Paragraph (6) of 
        section 6427(e) is amended--
                    (A) by striking ``except as provided in subparagraph 
                (D), any'' in subparagraph (C), as amended by this Act, 
                and inserting ``any'',
                    (B) by striking the comma at the end of subparagraph 
                (C) and inserting ``, and'', and
                    (C) by striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).

    (d) <<NOTE: 26 USC 6426 note.>>  Effective Dates.--

[[Page 128 STAT. 4023]]

            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel sold or used 
        after December 31, 2013.
            (2) Liquefied hydrogen.--The amendments made by subsection 
        (c) shall apply to fuel sold or used after September 30, 2014.

    (e) <<NOTE: 26 USC 6426 note.>>  Special Rule for Certain Periods 
During 2014.--Notwithstanding any other provision of law, in the case 
of--
            (1) any biodiesel mixture credit properly determined under 
        section 6426(c) of the Internal Revenue Code of 1986 for periods 
        after December 31, 2013, and before the date of the enactment of 
        this Act, and
            (2) <<NOTE: Deadlines. Claims.>>  any alternative fuel 
        credit properly determined under section 6426(d) of such Code 
        for such periods,

such credit shall be allowed, and any refund or payment attributable to 
such credit (including any payment under section 6427(e) of such Code) 
shall be made, only in such manner as the Secretary of the Treasury (or 
the Secretary's delegate) shall provide. <<NOTE: Guidance.>>  Such 
Secretary shall issue guidance within 30 days after the date of the 
enactment of this Act providing for a one-time submission of claims 
covering periods described in the preceding sentence. Such guidance 
shall provide for a 180-day period for the submission of such claims (in 
such manner as prescribed by such Secretary) to begin not later than 30 
days after such guidance is issued. Such claims shall be paid by such 
Secretary not later than 60 days after receipt. If such Secretary has 
not paid pursuant to a claim filed under this subsection within 60 days 
after the date of the filing of such claim, the claim shall be paid with 
interest from such date determined by using the overpayment rate and 
method under section 6621 of such Code.
SEC. 161. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                        REFUELING PROPERTY.

    (a) In General.--Subsection (g) of section 30C <<NOTE: 26 USC 
30C.>>  is amended by striking ``placed in service'' and all that 
follows and inserting ``placed in service after December 31, 2014.''.

    (b) <<NOTE: 26 USC 30C note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2013.

Subtitle D--Extenders Relating to Multiemployer Defined Benefit Pension 
                                  Plans

SEC. 171. EXTENSION OF AUTOMATIC EXTENSION OF AMORTIZATION 
                        PERIODS.

    (a) In General.--Subparagraph (C) of section 431(d)(1) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2015''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Subparagraph (C) of section 304(d)(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1084(d)(1)(C)) is amended by striking 
``December 31, 2014'' and inserting ``December 31, 2015''.
    (c) <<NOTE: 26 USC 431 note.>>  Effective Date.--The amendments made 
by this section shall apply to applications submitted under section 
431(d)(1)(A) of the Internal Revenue Code of 1986 and section 
304(d)(1)(C)

[[Page 128 STAT. 4024]]

of the Employee Retirement Income Security Act of 1974 after December 
31, 2014.
SEC. 172. EXTENSION OF SHORTFALL FUNDING METHOD AND ENDANGERED AND 
                        CRITICAL RULES.

    (a) In General.--Paragraphs (1) and (2) of section 221(c) of the 
Pension Protection Act of 2006 <<NOTE: 26 USC 412 note.>>  are each 
amended by striking ``December 31, 2014'' and inserting ``December 31, 
2015''.

    (b) Conforming Amendment.--Paragraph (2) of section 221(c) of the 
Pension Protection Act of 2006 is amended by striking ``January 1, 
2015'' and inserting ``January 1, 2016''.
    (c) <<NOTE: 26 USC 412 note.>>  Effective Date.--The amendments made 
by this section shall apply to plan years beginning after December 31, 
2014.

 TITLE II-- <<NOTE: Tax Technical Corrections Act of 2014.>> TECHNICAL 
CORRECTIONS
SEC. <<NOTE: 26 USC 1 note.>>  201. SHORT TITLE.

    This title may be cited as the ``Tax Technical Corrections Act of 
2014''.
SEC. 202. AMENDMENTS RELATING TO AMERICAN TAXPAYER RELIEF ACT OF 
                        2012.

    (a) Amendment Relating to Section 101(b).--Subclause (I) of section 
642(b)(2)(C)(i) <<NOTE: 26 USC 642.>>  is amended by striking ``section 
151(d)(3)(C)(iii)'' and inserting ``section 68(b)(1)(C)''.

    (b) Amendment Relating to Section 102.--Clause (ii) of section 
911(f)(2)(B) is amended by striking ``described in section 1(h)(1)(B) 
shall be treated as a reference to such excess as determined'' and 
inserting ``described in section 1(h)(1)(B), and the reference in 
section 55(b)(3)(C)(ii) to the excess described in section 
1(h)(1)(C)(ii), shall each be treated as a reference to each such excess 
as determined''.
    (c) Amendments Relating to Section 104.--
            (1) Clause (ii) of section 55(d)(4)(B) is amended by 
        inserting ``subparagraphs (A), (B), and (D) of'' before 
        ``paragraph (1)''.
            (2) Subparagraph (C) of section 55(d)(4) is amended by 
        striking ``increase'' and inserting ``increased amount''.

    (d) Amendments Relating to Section 310.--Clause (iii) of section 
6431(f)(3)(A) is amended--
            (1) by striking ``2011'' and inserting ``years after 2010'', 
        and
            (2) by striking ``of such allocation'' and inserting ``of 
        any such allocation''.

    (e) Amendment Relating to Section 331.--Clause (iii) of section 
168(k)(4)(J) is amended by striking ``any taxable year'' and inserting 
``its first taxable year''.
    (f) <<NOTE: 26 USC 55 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provision of the 
American Taxpayer Relief Act of 2012 to which they relate.
SEC. 203. AMENDMENT RELATING TO MIDDLE CLASS TAX RELIEF AND JOB 
                        CREATION ACT OF 2012.

    (a) Amendment Relating to Section 7001.--Paragraph (1) of section 
7001 of the Middle Class Tax Relief and Job Creation Act of 
2012 <<NOTE: 26 USC 6655 note.>>  is amended by striking ``201(b)'' and 
inserting ``202(b)''.

[[Page 128 STAT. 4025]]

    (b) <<NOTE: 26 USC 6655 note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect as if included in section 7001 of 
the Middle Class Tax Relief and Job Creation Act of 2012.
SEC. 204. AMENDMENT RELATING TO FAA MODERNIZATION AND REFORM ACT 
                        OF 2012.

    (a) Amendment Relating to Section 1107.--Section 4281 <<NOTE: 26 USC 
4281.>>  is amended to read as follows:
``SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES.

    ``(a) In General.--The taxes imposed by sections 4261 and 4271 shall 
not apply to transportation by an aircraft having a maximum certificated 
takeoff weight of 6,000 pounds or less, except when such aircraft is 
operated on an established line or when such aircraft is a jet aircraft.
    ``(b) Maximum Certificated Takeoff Weight.--For purposes of this 
section, the term `maximum certificated takeoff weight' means the 
maximum such weight contained in the type certificate or airworthiness 
certificate.
    ``(c) Sightseeing.--For purposes of this section, an aircraft shall 
not be considered as operated on an established line at any time during 
which such aircraft is being operated on a flight the sole purpose of 
which is sightseeing.
    ``(d) Jet Aircraft.--For purposes of this section, the term `jet 
aircraft' shall not include any aircraft which is a rotorcraft or 
propeller aircraft.''.
    (b) <<NOTE: 26 USC 4281 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect as if included in section 1107 of 
the FAA Modernization and Reform Act of 2012.
SEC. 205. AMENDMENTS RELATING TO REGULATED INVESTMENT COMPANY 
                        MODERNIZATION ACT OF 2010.

    (a) Amendments Relating to Section 101.--
            (1) Subsection (c) of section 101 of the Regulated 
        Investment Company Modernization Act of 2010 <<NOTE: 26 USC 1212 
        note.>>  is amended--
                    (A) by striking ``paragraph (2)'' in paragraph (1) 
                and inserting ``paragraphs (2) and (3)'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Excise tax.--
                    ``(A) <<NOTE: Applicability. Time periods.>>  In 
                general.--Except as provided in subparagraph (B), for 
                purposes of section 4982 of the Internal Revenue Code of 
                1986, paragraphs (1) and (2) shall apply by substituting 
                `the 1-year periods taken into account under subsection 
                (b)(1)(B) of such section with respect to calendar years 
                beginning after December 31, 2010' for `taxable years 
                beginning after the date of the enactment of this Act'.
                    ``(B) Election.--A regulated investment company may 
                elect to apply subparagraph (A) by substituting `2011' 
                for `2010'. Such election shall be made at such time and 
                in such form and manner as the Secretary of the Treasury 
                (or the Secretary's delegate) shall prescribe.''.
            (2) The first sentence of paragraph (2) of section 852(c) is 
        amended--
                    (A) by striking ``and without regard to'' and 
                inserting ``, without regard to'', and
                    (B) by inserting ``, and without regard to any 
                capital loss arising on the first day of the taxable 
                year by reason

[[Page 128 STAT. 4026]]

                of clauses (ii) and (iii) of section 1212(a)(3)(A)'' 
                before the period at the end.

    (b) Amendment Relating to Section 304.--Paragraph (1) of section 
855(a) <<NOTE: 26 USC 855.>>  is amended by inserting ``on or'' before 
``before''.

    (c) Amendments Relating to Section 308.--
            (1) <<NOTE: Definitions.>>  Paragraph (8) of section 852(b) 
        is amended by redesignating subparagraph (E) as subparagraph (G) 
        and by striking subparagraphs (C) and (D) and inserting the 
        following new subparagraphs:
                    ``(C) Post-october capital loss.--For purposes of 
                this paragraph, the term `post-October capital loss' 
                means--
                          ``(i) any net capital loss attributable to the 
                      portion of the taxable year after October 31, or
                          ``(ii) if there is no such loss--
                                    ``(I) any net long-term capital loss 
                                attributable to such portion of the 
                                taxable year, or
                                    ``(II) any net short-term capital 
                                loss attributable to such portion of the 
                                taxable year.
                    ``(D) Late-year ordinary loss.--For purposes of this 
                paragraph, the term `late-year ordinary loss' means the 
                sum of any post-October specified loss and any post-
                December ordinary loss.
                    ``(E) Post-october specified loss.--For purposes of 
                this paragraph, the term `post-October specified loss' 
                means the excess (if any) of--
                          ``(i) the specified losses (as defined in 
                      section 4982(e)(5)(B)(ii)) attributable to the 
                      portion of the taxable year after October 31, over
                          ``(ii) the specified gains (as defined in 
                      section 4982(e)(5)(B)(i)) attributable to such 
                      portion of the taxable year.
                    ``(F) Post-december ordinary loss.--For purposes of 
                this paragraph, the term `post-December ordinary loss' 
                means the excess (if any) of--
                          ``(i) the ordinary losses not described in 
                      subparagraph (E)(i) and attributable to the 
                      portion of the taxable year after December 31, 
                      over
                          ``(ii) the ordinary income not described in 
                      subparagraph (E)(ii) and attributable to such 
                      portion of the taxable year.''.
            (2) Subparagraph (G) of section 852(b)(8), as so 
        redesignated, is amended by striking ``, (D)(i)(I), and 
        (D)(ii)(I)'' and inserting ``and (E)''.
            (3) The first sentence of paragraph (2) of section 852(c), 
        as amended by subsection (a), is amended--
                    (A) by striking ``, and without regard to'' and 
                inserting ``, without regard to'', and
                    (B) by inserting ``, and with such other adjustments 
                as the Secretary may prescribe'' before the period at 
                the end.

    (d) Amendments Relating to Section 402.--
            (1) Subparagraph (B) of section 4982(e)(6) is amended by 
        inserting before the period at the end the following: ``or which 
        determines income by reference to the value of an item on the 
        last day of the taxable year''.
            (2) Subparagraph (A) of section 4982(e)(7) is amended by 
        striking ``such company'' and all that follows through ``any

[[Page 128 STAT. 4027]]

        net ordinary loss'' and inserting ``such company may elect to 
        determine its ordinary income and net ordinary loss (as defined 
        in paragraph (2)(C)(ii)) for the calendar year without regard to 
        any portion of any net ordinary loss''.

    (e) Clerical Amendment Relating to Section 201.--Subparagraph (A) of 
section 851(d)(2) <<NOTE: 26 USC 851.>>  is amended by inserting ``of 
this paragraph'' after ``subparagraph (B)(i)''.

    (f) <<NOTE: 26 USC 852 note.>>  Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect as if included 
        in the provision of the Regulated Investment Company 
        Modernization Act of 2010 to which they relate.
            (2) Savings provision.--In the case of an election by a 
        regulated investment company under section 852(b)(8) of the 
        Internal Revenue Code of 1986 with respect to any taxable year 
        beginning before the date of the enactment of this Act, such 
        company may treat the amendments made by paragraphs (1) and (2) 
        of subsection (c) as not applying with respect to any such 
        election.
SEC. 206. AMENDMENTS RELATING TO TAX RELIEF, UNEMPLOYMENT 
                        INSURANCE REAUTHORIZATION, AND JOB 
                        CREATION ACT OF 2010.

    (a) Amendment Relating to Section 103.--Clause (ii) of section 
32(b)(3)(B) is amended by striking ``in 2010'' and inserting ``after 
2009''.
    (b) Clerical Amendments Relating to Section 302.--
            (1) Paragraph (1) of section 2801(a) is amended by striking 
        ``(or, if greater, the highest rate of tax specified in the 
        table applicable under section 2502(a) as in effect on the 
        date)''.
            (2) Subsection (f) of section 302 of the Tax Relief, 
        Unemployment Insurance Reauthorization, and Job Creation Act of 
        2010 <<NOTE: 26 USC 2001 note.>>  is amended by striking 
        ``subsection'' and inserting ``section''.

    (c) Amendments Relating to Section 753.--Subparagraph (A) of section 
1397B(b)(1) is amended by striking ``and'' at the end of clause (ii), by 
striking the period at the end of clause (iii) and inserting ``, and'', 
and by adding at the end the following new clause:
                          ``(iv) the day after the date set forth in 
                      section 1391(d)(1)(A)(i) were substituted for 
                      `January 1, 2010' each place it appears.''.

    (d) <<NOTE: 26 USC 32 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation 
Act of 2010 to which they relate.
SEC. 207. AMENDMENTS RELATING TO CREATING SMALL BUSINESS JOBS ACT 
                        OF 2010.

    (a) Amendments Relating to Section 2102.--
            (1) Subsection (h) of section 2102 of the Creating Small 
        Business Jobs Act of 2010 <<NOTE: 26 USC 6721 note.>>  is 
        amended by inserting ``, and payee statements required to be 
        furnished,'' after ``information returns required to be filed''.
            (2) Paragraphs (1) and (2) of subsection (b), and subsection 
        (c)(1)(C), of section 6722 are each amended by striking ``the 
        required filing date'' and inserting ``the date prescribed for 
        furnishing such statement''.

[[Page 128 STAT. 4028]]

            (3) Subparagraph (B) of section 6722(c)(2) <<NOTE: 26 USC 
        6722.>>  is amended by striking ``filed'' and inserting 
        ``furnished''.

    (b) <<NOTE: 26 USC 6722 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the provision 
of the Creating Small Business Jobs Act of 2010 to which they relate.
SEC. 208. CLERICAL AMENDMENT RELATING TO HIRING INCENTIVES TO 
                        RESTORE EMPLOYMENT ACT.

    (a) Amendment Relating to Section 512.--Paragraph (1) of section 
512(a) of the Hiring Incentives to Restore Employment Act <<NOTE: 26 USC 
6662.>>  is amended by striking ``after paragraph (6)'' and inserting 
``after paragraph (5)''.

    (b) <<NOTE: 26 USC 6662 note.>>  Effective Date.--The amendment made 
by this section shall take effect as if included in the provision of the 
Hiring Incentives to Restore Employment Act to which it relates.
SEC. 209. AMENDMENTS RELATING TO AMERICAN RECOVERY AND 
                        REINVESTMENT TAX ACT OF 2009.

    (a) Amendment Relating to Section 1003.--Paragraph (4) of section 
24(d) is amended to read as follows:
            ``(4) <<NOTE: Time period. Applicability.>>  Special rule 
        for certain years.--In the case of any taxable year beginning 
        after 2008 and before 2018, paragraph (1)(B)(i) shall be applied 
        by substituting `$3,000' for `$10,000'.''.

    (b) Amendment Relating to Section 1004.--Paragraph (3) of section 
25A(i) is amended by striking ``Subsection (f)(1)(A) shall be applied'' 
and inserting ``For purposes of determining the Hope Scholarship Credit, 
subsection (f)(1)(A) shall be applied''.
    (c) Amendments Relating to Section 1008.--
            (1) Paragraph (6) of section 164(b) is amended by striking 
        subparagraph (E) and by redesignating subparagraphs (F) and (G) 
        as subparagraphs (E) and (F), respectively.
            (2) Subparagraphs (E) and (F) of section 164(b)(6), as so 
        redesignated, are each amended by striking ``This paragraph'' 
        and inserting ``Subsection (a)(6)''.

    (d) Amendment Relating to Section 1104.--Subparagraph (A) of section 
48(d)(3) is amended by inserting ``or alternative minimum taxable 
income'' after ``includible in the gross income''.
    (e) Amendments Relating to Section 1141.--
            (1) Subsection (f) of section 30D is amended--
                    (A) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (1), and
                    (B) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (2).
            (2) Paragraph (3) of section 30D(f) is amended by adding at 
        the end the following: ``For purposes of subsection (c), 
        property to which this paragraph applies shall be treated as of 
        a character subject to an allowance for depreciation.''.

    (f) Amendments Relating to Section 1142.--
            (1) Subsection (b) of section 38 is amended by striking 
        ``plus'' at the end of paragraph (35), by redesignating 
        paragraph (36) as paragraph (37), and by inserting after 
        paragraph (35) the following new paragraph:
            ``(36) the portion of the qualified plug-in electric vehicle 
        credit to which section 30(c)(1) applies, plus''.
            (2)(A) Subsection (e) of section 30 is amended--

[[Page 128 STAT. 4029]]

                    (i) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (1), and
                    (ii) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (2).
            (B) Paragraph (3) of section 30(e) <<NOTE: 26 USC 30.>>  is 
        amended by adding at the end the 
        following: <<NOTE: Applicability.>>  ``For purposes of 
        subsection (c), property to which this paragraph applies shall 
        be treated as of a character subject to an allowance for 
        depreciation.''.

    (g) Amendment Relating to Section 1302.--Paragraph (3) of section 
48C(b) is amended by inserting ``as the qualified investment'' after 
``The amount which is treated''.
    (h) Amendments Related to Section 1541.--
            (1) Paragraph (2) of section 853A(a) is amended by inserting 
        ``(determined after the application of this section)'' before 
        the comma at the end.
            (2) Subsection (a) of section 853A is amended--
                    (A) by striking ``with respect to credits'' and 
                inserting ``with respect to some or all of the 
                credits'', and
                    (B) by inserting ``(determined without regard to 
                this section and sections 54(c), 54A(c)(1), 54AA(c)(1), 
                and 1397E(c))'' after ``credits allowable''.
            (3) Subsection (b) of section 853A is amended to read as 
        follows:

    ``(b) Effect of Election.--If the election provided in subsection 
(a) is in effect with respect to any credits for any taxable year--
            ``(1) the regulated investment company--
                    ``(A) shall not be allowed such credits,
                    ``(B) shall include in gross income (as interest) 
                for such taxable year the amount which would have been 
                so included with respect to such credits had the 
                application of this section not been elected,
                    ``(C) shall include in earnings and profits the 
                amount so included in gross income, and
                    ``(D) shall be treated as making one or more 
                distributions of money with respect to its stock equal 
                to the amount of such credits on the date or dates (on 
                or after the applicable date for any such credit) during 
                such taxable year (or following the close of the taxable 
                year pursuant  to section 855)  selected by the company, 
                and
            ``(2) each shareholder of such investment company shall--
                    ``(A) be treated as receiving such shareholder's 
                proportionate share of any distribution of money which 
                is treated as made by such investment company under 
                paragraph (1)(D), and
                    ``(B) be allowed credits against the tax imposed by 
                this chapter equal to the amount of such distribution, 
                subject to the provisions of this title applicable to 
                the credit involved.''.
            (4) Subsection (c) of section 853A is amended to read as 
        follows:

    ``(c) Notice to Shareholders.--The amount treated as a distribution 
of money received by a shareholder under subsection (b)(2)(A) (and as 
credits allowed to such shareholder under subsection (b)(2)(B)) shall 
not exceed the amount so reported by the

[[Page 128 STAT. 4030]]

regulated investment company in a written statement furnished to such 
shareholder.''.
            (5) Clause (ii) of section 853A(e)(1)(A) <<NOTE: 26 USC 
        853A.>>  is amended by inserting ``other than a qualified bond 
        described in section 54AA(g)'' after ``as defined in section 
        54AA(d))''.

    (i) Amendments Relating to Section 2202.--
            (1) Subparagraph (A) of section 2202(b)(1) of division B of 
        the American Recovery and Reinvestment Act of 2009 <<NOTE: 26 
        USC 6428 note.>>  is amended by inserting ``political 
        subdivision of a State,'' after ``any State,''.
            (2) Section 2202 of division B of the American Recovery and 
        Reinvestment Act of 2009 is amended by adding at the end the 
        following new subsection:

    ``(e) Treatment of Possessions.--
            ``(1) <<NOTE: Effective date.>>  Payments to mirror code 
        possessions.--The Secretary of the Treasury shall pay to each 
        possession of the United States with a mirror code tax system 
        amounts equal to the loss to that possession by reason of 
        credits allowed under subsection (a) with respect to taxable 
        years beginning in 2009. Such amounts shall be determined by the 
        Secretary of the Treasury based on information provided by the 
        government of the respective possession.
            ``(2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes for any taxable year under this section to any 
        person to whom a credit is allowed against taxes imposed by the 
        possession by reason of the credit allowed under subsection (a) 
        for such taxable year.
            ``(3) Definitions and special rules.--
                    ``(A) Possession of the united states.--For purposes 
                of this subsection, the term `possession of the United 
                States' includes the Commonwealth of the Northern 
                Mariana Islands.
                    ``(B) Mirror code tax system.--For purposes of this 
                subsection, the term `mirror code tax system' means, 
                with respect to any possession of the United States, the 
                income tax system of such possession if the income tax 
                liability of the residents of such possession under such 
                system is determined by reference to the income tax laws 
                of the United States as if such possession were the 
                United States.
                    ``(C) Treatment of payments.--For purposes of 
                section 1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from the credit allowed 
                under section 36A of the Internal Revenue Code of 1986 
                (as added by this Act).''.

    (j) Clerical Amendments.--
            (1) Amendment relating to section 1131.--Paragraph (2) of 
        section 45Q(d) is amended by striking ``Administrator of the 
        Environmental Protection Agency'' and all that follows through 
        ``shall establish'' and inserting ``Administrator of the 
        Environmental Protection Agency, the Secretary of Energy, and 
        the Secretary of the Interior, shall establish''.
            (2) Amendment relating to section 1141.--Paragraph (37) of 
        section 1016(a) is amended by striking ``section 30D(e)(4)'' and 
        inserting ``section 30D(f)(1)''.

[[Page 128 STAT. 4031]]

            (3) Amendment relating to section 3001.--Subparagraph (A) of 
        section 3001(a)(14) of the American Recovery and Reinvestment 
        Act of 2009 <<NOTE: 26 USC 35.>>  is amended by striking ``is 
        amended by redesignating paragraph (9) as paragraph (10)'' and 
        inserting ``, as amended by this Act, is amended by 
        redesignating paragraphs (9) and (10) as paragraphs (10) and 
        (11), respectively,''.

    (k) <<NOTE: 26 USC 24 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the American Recovery and Reinvestment Tax Act of 2009 to which they 
relate.
SEC. 210. AMENDMENTS RELATING TO ENERGY IMPROVEMENT AND EXTENSION 
                        ACT OF 2008.

    (a) Amendment Relating to Section 108.--Subparagraph (E) of section 
45K(g)(2) <<NOTE: 26 USC 45K.>>  is amended to read as follows:
                    ``(E) Coordination with section 45.--No credit shall 
                be allowed with respect to any coke or coke gas which is 
                produced using steel industry fuel (as defined in 
                section 45(c)(7)) as feedstock if a credit is allowed to 
                any taxpayer under section 45 with respect to the 
                production of such steel industry fuel.''.

    (b) Amendment Relating to Section 113.--Paragraph (1) of section 
113(b) of the Energy Improvement and Extension Act of 2008 <<NOTE: 26 
USC 9501 note.>>  is amended by adding at the end the following new 
subparagraph:
                    ``(F) <<NOTE: Definition.>>  Trust fund.--The term 
                `Trust Fund' means the Black Lung Disability Trust Fund 
                established under section 9501 of the Internal Revenue 
                Code of 1986.''.

    (c) Amendments Relating to Section 306.--
            (1) Clause (ii) of section 168(i)(18)(A) is amended by 
        striking ``10 years'' and inserting ``16 years''.
            (2) Clause (ii) of section 168(i)(19)(A) is amended by 
        striking ``10 years'' and inserting ``16 years''.

    (d) Amendment Relating to Section 308.--Clause (i) of section 
168(m)(2)(B) is amended by striking ``section 168(k)'' and inserting 
``subsection (k) (determined without regard to paragraph (4) thereof)''.
    (e) Amendment Relating to Section 402.--Subparagraph (A) of section 
907(f)(4) is amended by striking ``this subsection shall be applied'' 
and all that follows through the period at the end and inserting the 
following: ``this subsection, as in effect on the day before the date of 
the enactment of the Energy Improvement and Extension Act of 2008, shall 
apply to unused oil and gas extraction taxes carried from such unused 
credit year to a taxable year beginning after December 31, 2008.''.
    (f) Amendments Relating to Section 403.--
            (1) Subsection (c) of section 1012 is amended--
                    (A) by striking ``funds'' in the heading for 
                paragraph (2) and inserting ``regulated investment 
                companies'',
                    (B) by striking ``fund'' in the heading for 
                paragraph (2)(B), and
                    (C) by striking ``fund'' each place it appears in 
                paragraph (2) and inserting ``regulated investment 
                company''.
            (2) Paragraph (1) of section 1012(d) is amended--
                    (A) by striking ``December 31, 2010'' and inserting 
                ``December 31, 2011'', and
                    (B) by striking ``an open-end fund'' and inserting 
                ``a regulated investment company''.

[[Page 128 STAT. 4032]]

            (3) Paragraph (3) of section 1012(d) <<NOTE: 26 USC 1012.>>  
        is amended to read as follows:
            ``(3) Separate accounts; election for treatment as single 
        account.--
                    ``(A) <<NOTE: Applicability.>>  In general.--Rules 
                similar to the rules of subsection (c)(2) shall apply 
                for purposes of this subsection.
                    ``(B) Average basis method.--Notwithstanding 
                paragraph (1), in the case of an election under rules 
                similar to the rules of subsection (c)(2)(B) with 
                respect to stock held in connection with a dividend 
                reinvestment plan, the average basis method is 
                permissible with respect to all such stock without 
                regard to the date of the acquisition of such stock.''.
            (4) Subsection (g) of section 6045 is amended by adding at 
        the end the following new paragraph:
            ``(6) Special rule for certain stock held in connection with 
        dividend reinvestment plan.--For purposes of this subsection, 
        stock acquired before January 1, 2012, in connection with a 
        dividend reinvestment plan shall be treated as stock described 
        in clause (ii) of paragraph (3)(C) (unless the broker with 
        respect to such stock elects not to have this paragraph apply 
        with respect to such stock).''.

    (g) Clerical Amendments.--
            (1) Amendment relating to section 108.--Paragraph (2) of 
        section 45(b) is amended by striking ``$3 amount'' and inserting 
        ``$2 amount''.
            (2) Amendment relating to section 306.--
                    (A) Paragraph (5) of section 168(b) is amended by 
                striking ``(2)(C)'' and inserting ``(2)(D)''.
                    (B) The last sentence of section 168(k)(4)(C)(i) is 
                amended by striking ``(b)(2)(C)'' and inserting 
                ``(b)(2)(D)''.

    (h) <<NOTE: 26 USC 45 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Energy Improvement and Extension Act of 2008 to which they relate.
SEC. 211. AMENDMENTS RELATING TO TAX EXTENDERS AND ALTERNATIVE 
                        MINIMUM TAX RELIEF ACT OF 2008.

    (a) Amendment Relating to Section 208.--Subsection (b) of section 
208 of the Tax Extenders and Alternative Minimum Tax Relief Act of 
2008 <<NOTE: 26 USC 897 note.>>  is amended to read as follows:

    ``(b) Effective Date.--
            ``(1) In general.--The amendment made by subsection (a) 
        shall take effect on January 1, 2008. Notwithstanding the 
        preceding sentence, such amendment shall not apply with respect 
        to the withholding requirement under section 1445 of the 
        Internal Revenue Code of 1986 for any payment made before 
        October 4, 2008.
            ``(2) Amounts withheld on or before date of enactment.--In 
        the case of a regulated investment company--
                    ``(A) which makes a distribution after December 31, 
                2007, and before October 4, 2008, and
                    ``(B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.''.

[[Page 128 STAT. 4033]]

    (b) Amendments Relating to Section 305.--Paragraphs (7)(B) and 
(8)(D) of section 168(e) <<NOTE: 26 USC 168.>>  are each amended by 
inserting ``which is not qualified leasehold improvement property'' 
after ``Property described in this paragraph''.

    (c) Clerical Amendments.--
            (1) Amendments relating to section 706.--
                    (A) Paragraph (2) of section 1033(h) is amended by 
                inserting ``is'' before ``compulsorily''.
                    (B) Subclause (II) of section 172(b)(1)(F)(ii) is 
                amended by striking ``subsection (h)(3)(C)(i)'' and 
                inserting ``section 165(h)(3)(C)(i)''.
                    (C) The heading for paragraph (1) of section 165(h) 
                is amended by striking ``$100'' and inserting 
                ``Dollar''.
            (2) Amendment relating to section 709.--Subsection (k) of 
        section 143 is amended by redesignating the second paragraph 
        (12) (relating to special rules for residences destroyed in 
        Federally declared disasters) as paragraph (13).
            (3) Amendment relating to section 712.--Section 712 of the 
        Tax Extenders and Alternative Minimum Tax Relief Act of 
        2008 <<NOTE: 25 USC 56 note.>>  is amended by striking ``section 
        702(c)(1)(A)'' and inserting ``section 702(b)(1)(A)''.

    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Tax Extenders and 
Alternative Minimum Tax Relief Act of 2008 to which they relate.
SEC. 212. CLERICAL AMENDMENTS RELATING TO HOUSING ASSISTANCE TAX 
                        ACT OF 2008.

    (a) Amendment Relating to Section 3002.--Paragraph (1) of section 
42(b) is amended by striking ``For purposes of this section, the term'' 
and inserting the following: ``For purposes of this section--
                    ``(A) In general.--The term''.

    (b) Amendment Relating to Section 3081.--Clause (iv) of section 
168(k)(4)(E) is amended by striking ``adjusted minimum tax'' and 
inserting ``adjusted net minimum tax''.
    (c) Amendment Relating to Section 3092.--Subsection (b) of section 
121 is amended by redesignating the second paragraph (4) (relating to 
exclusion of gain allocated to nonqualified use) as paragraph (5).
    (d) <<NOTE: 26 USC 42 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Housing Assistance Tax Act of 2008 to which they relate.
SEC. 213. AMENDMENTS AND PROVISION RELATING TO HEROES EARNINGS 
                        ASSISTANCE AND RELIEF TAX ACT OF 2008.

    (a) Amendment Relating to Section 106.--Paragraph (2) of section 
106(c) of the Heroes Earnings Assistance and Relief Tax Act of 
2008 <<NOTE: 26 USC 6511 note.>>  is amended by striking ``substituting 
for'' and inserting ``substituting `June 17, 2008' for''.

    (b) Amendment Relating to Section 114.--Paragraph (1) of section 
125(h) is amended by inserting ``(and shall not fail to be treated as an 
accident or health plan)'' before ``merely''.
    (c) Clerical Amendments.--
            (1) Amendment relating to section 110.--Subparagraph (B) of 
        section 121(d)(12) is amended by inserting ``of paragraph (9)'' 
        after ``and (D)''.

[[Page 128 STAT. 4034]]

            (2) Amendment relating to section 301.--Paragraph (2) of 
        section 877(e) <<NOTE: 26 USC 877.>>  is amended by striking 
        ``subparagraph (A) or (B) of''.

    (d) <<NOTE: 26 USC 121 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Heroes Earnings Assistance and Relief Tax Act of 2008 to which they 
relate.
SEC. 214. AMENDMENTS RELATING TO ECONOMIC STIMULUS ACT OF 2008.

    (a) Amendments Relating to Section 101.--Paragraph (2) of section 
6213(g) is amended--
            (1) by striking ``32, or 6428'' in subparagraph (L) and 
        inserting ``or 32'', and
            (2) by striking ``and'' at the end of subparagraph (O), by 
        striking the period at the end of subparagraph (P) and inserting 
        ``, and'', and by inserting after subparagraph (P) the following 
        new subparagraph:
                    ``(Q) an omission of a correct valid identification 
                number required under section 6428(h) (relating to 2008 
                recovery rebates for individuals) to be included on a 
                return.''.

    (b) Clerical Amendment Relating to Section 103.--Subclause (IV) of 
section 168(k)(2)(B)(i) is amended by striking ``clauses also apply'' 
and inserting ``clause also applies''.
    (c) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Economic Stimulus Act of 2008 to which they relate.
SEC. 215. AMENDMENTS RELATING TO TAX TECHNICAL CORRECTIONS ACT OF 
                        2007.

    (a) Amendment Relating to Section 4(c).--Paragraph (1) of section 
911(f) is amended by adding at the end the following flush sentence:
        ``For purposes of this paragraph, the amount excluded under 
        subsection (a) shall be reduced by the aggregate amount of any 
        deductions or exclusions disallowed under subsection (d)(6) with 
        respect to such excluded amount.''.

    (b) Clerical Amendment Relating to Section 11(g).--Clause (iv) of 
section 56(g)(4)(C) is amended by striking ``a cooperative described in 
section 927(a)(4)'' and inserting ``an organization to which part I of 
subchapter T (relating to tax treatment of cooperatives) applies which 
is engaged in the marketing of agricultural or horticultural products''.
    (c) <<NOTE: 26 USC 56 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Tax Technical Corrections Act of 2007 to which they relate.
SEC. 216. AMENDMENT RELATING TO TAX RELIEF AND HEALTH CARE ACT OF 
                        2006.

    (a) Amendment Relating to Section 105.--Subparagraph (B) of section 
45A(b)(1) is amended by adding at the end the following: ``If any 
portion of wages are taken into account under subsection (e)(1)(A) of 
section 51, the preceding sentence shall be applied by substituting `2-
year period' for `1-year period'.''.
    (b) <<NOTE: 26 USC 45A note.>>  Effective Date.--The amendment made 
by this section shall take effect as if included in the provision of the 
Tax Relief and Health Care Act of 2006 to which it relates.

[[Page 128 STAT. 4035]]

SEC. 217. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, FLEXIBLE, 
                        EFFICIENT TRANSPORTATION EQUITY ACT OF 
                        2005: A LEGACY FOR USERS.

    (a) Amendment Relating to Section 11161.--Paragraph (1) of section 
9503(b) <<NOTE: 26 USC 9503.>>  is amended by inserting before the 
period at the end the following: ``and taxes received under section 4081 
shall be determined without regard to tax receipts attributable to the 
rate specified in section 4081(a)(2)(C)''.

    (b) <<NOTE: 26 USC 9503 note.>>  Effective Date.--The amendment made 
by this section shall take effect as if included in the provision of the 
Safe, Accountable, Flexible, Efficient Transportation Equity Act of 
2005: A Legacy for Users to which it relates.
SEC. 218. AMENDMENTS RELATING TO ENERGY TAX INCENTIVES ACT OF 
                        2005.

    (a) Amendment Relating to Section 1341.--Subparagraph (B) of section 
30B(h)(5) is amended by inserting ``(determined without regard to 
subsection (g))'' before the period at the end.
    (b) Amendment Relating to Section 1342.--Paragraph (1) of section 
30C(e) is amended to read as follows:
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (d)).''.

    (c) <<NOTE: 26 USC 30B note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provision of the 
Energy Tax Incentives Act of 2005 to which it relates.
SEC. 219. AMENDMENTS RELATING TO AMERICAN JOBS CREATION ACT OF 
                        2004.

    (a) Amendment Relating to Section 101.--Subsection (d) of section 
101 of the American Jobs Creation Act of 2004 <<NOTE: 26 USC 114 
note.>>  is amended by adding at the end the following new paragraph:
            ``(3) Coordination with section 199.--This subsection shall 
        be applied without regard to any deduction allowable under 
        section 199.''.

    (b) Amendments Relating to Section 102.--Paragraph (3) of section 
199(b) is amended--
            (1) by inserting ``of a short taxable year or'' after ``in 
        cases'', and
            (2) by striking ``and dispositions'' and inserting ``, 
        dispositions, and short taxable years''.

    (c) Clerical Amendment Relating to Section 413.--Paragraph (7) of 
section 904(h) is amended by striking ``as ordinary income under section 
1246 or''.
    (d) <<NOTE: 26 USC 199 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provision of the 
American Jobs Creation Act of 2004 to which they relate.
SEC. 220. OTHER CLERICAL CORRECTIONS.

    (a) Paragraph (8) of section 30B(h) is amended by striking 
``vehicle)., except that'' and inserting ``vehicle), except that''.
    (b) Subparagraph (A) of section 38(c)(2) is amended by striking 
``credit credit'' and inserting ``credit''.
    (c) Section 46 is amended by adding a comma at the end of paragraph 
(4).

[[Page 128 STAT. 4036]]

    (d) Subparagraph (E) of section 50(a)(2) <<NOTE: 26 USC 50.>>  is 
amended by inserting ``, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 48D(b)(4)'' 
after ``in section 48(b)''.

    (e) Clause (i) of section 54A(d)(2)(A) is amended by striking ``100 
percent or more'' and inserting ``100 percent''.
    (f) Paragraph (2) of section 125(b) is amended by striking 
``statutory nontaxable benefits'' each place it appears and inserting 
``qualified benefits''.
    (g) Paragraph (2) of section 125(h) is amended by striking ``means, 
any'' and inserting ``means any''.
    (h) Subparagraph (F) of section 163(h)(4) is amended by striking 
``Veterans Administration or the Rural Housing Administration'' and 
inserting ``Department of Veterans Affairs or the Rural Housing 
Service''.
    (i) Subsection (a) of section 249 is amended by striking 
``1563(a)(1)'' and inserting ``1563(a)(1))''.
    (j) Paragraphs (8) and (10) of section 280F(d) are each amended by 
striking ``subsection (a)(2)'' and inserting ``subsection (a)(1)''.
    (k) Clause (iii) of section 402A(c)(4)(E) is amended by striking 
``403(b)(7)(A)(i)'' and inserting ``403(b)(7)(A)(ii)''.
    (l) Section 527 is amended--
            (1) by striking ``(2 U.S.C. 432(e))'' in subsection 
        (h)(2)(A)(i) and inserting ``(52 U.S.C. 30102(e))'', and
            (2) by striking ``(2 U.S.C. 431 et seq.)'' in subsections 
        (i)(6) and (j)(5)(A) and inserting ``(52 U.S.C. 30101 et 
        seq.)''.

    (m) Subsection (b) of section 858 is amended by striking 
``857(b)(8)'' and inserting ``857(b)(9)''.
    (n) Subparagraph (A) of section 1012(c)(2) is amended by striking 
``section 1012'' and inserting ``this section''.
    (o) The heading for section 1394(f) is amended by striking 
``Designated Under Section 1391(g)''.
    (p) Paragraphs (1) and (2)(A) of section 1394(f) are each amended by 
striking ``a new empowerment zone facility bond'' and inserting ``an 
empowerment zone facility bond''.
    (q) Clause (i) of section 1400N(c)(3)(A) is amended by striking 
``section 42(d)(5)(C)(iii)'' and inserting ``section 42(d)(5)(B)(iii)''.
    (r) Subsections (e)(3)(B) and (f)(7)(B) of section 4943 are each 
amended by striking ``January 1, 1970'' and inserting ``January 1, 
1971''.
    (s) Paragraph (2) of section 4982(f) is amended by adding a comma at 
the end.
    (t) Paragraph (3) of section 6011(e) is amended by striking ``shall 
require than'' and inserting ``shall require that''.
    (u) Subsection (b) of section 6072 is amended by striking 
``6011(e)(2)'' and inserting ``6011(c)(2)''.
    (v) Subsection (d) of section 6104 is amended by redesignating the 
second paragraph (6) (relating to disclosure of reports by the Internal 
Revenue Service) and third paragraph (6) (relating to application to 
nonexempt charitable trusts and nonexempt private foundations) as 
paragraphs (7) and (8), respectively.
    (w) Subsection (c) of section 6662A is amended by striking ``section 
6664(d)(2)(A)'' and inserting ``section 6664(d)(3)(A)''.
    (x) Subparagraph (FF) of section 6724(d)(2) is amended by striking 
``section 6050W(c)'' and inserting ``section 6050W(f)''.
    (y) Section 7122 is amended by redesignating the second subsection 
(f) (relating to frivolous submissions, etc.) as subsection (g).

[[Page 128 STAT. 4037]]

    (z) Subsection (a) of section 9035 <<NOTE: 26 USC 9035.>>  is 
amended by striking ``section 320(b)(1)(A)'' and inserting ``section 
315(b)(1)(A)''.

    (aa) Section 9802 is amended by redesignating the second subsection 
(f) (relating to genetic information of a fetus or embryo) as subsection 
(g).
    (bb) Paragraph (3) of section 13(e) of the Worker, Homeownership, 
and Business Assistance Act of 2009 <<NOTE: 26 USC 56 note.>>  is 
amended by striking ``subsection (d)'' and inserting ``subsection (c)''.
SEC. 221. DEADWOOD PROVISIONS.

    (a) In General.--
            (1) Adjustments in tax tables so that inflation will not 
        result in tax increases.--Paragraph (7) of section 1(f) is 
        amended to read as follows:
            ``(7) Special rule for certain brackets.--In prescribing 
        tables under paragraph (1) which apply to taxable years 
        beginning in a calendar year after 1994, the cost-of-living 
        adjustment used in making adjustments to the dollar amounts at 
        which the 36 percent rate bracket begins or at which the 39.6 
        percent rate bracket begins shall be determined under paragraph 
        (3) by substituting `1993' for `1992'.''.
            (2) Certain plug-in electric vehicles.--
                    (A) <<NOTE: 26 USC prec. 27.>>  Subpart B of part IV 
                of subchapter A of chapter 1 is amended by striking 
                section 30 (and by striking the item relating to such 
                section in the table of sections for such subpart).
                    (B) Subsection (b) of section 38, as amended by 
                section 209(f)(1) of this Act, is amended by inserting 
                ``plus'' at the end of paragraph (35), by striking 
                paragraph (36), and by redesignating paragraph (37) as 
                paragraph (36).
                    (C) Subclause (VI) of section 48C(c)(1)(A)(i) is 
                amended by striking ``, qualified plug-in electric 
                vehicles (as defined by section 30(d)),''.
                    (D) Section 1016(a) is amended by striking paragraph 
                (25).
                    (E) Section 6501(m) is amended by striking ``section 
                30(e)(6),''.
            (3) Earned income credit.--
                    (A) Paragraph (1) of section 32(b) is amended--
                          (i) by striking subparagraphs (B) and (C), and
                          (ii) by striking ``(A) In General.--In the 
                      case of taxable years beginning after 1995:'' in 
                      subparagraph (A) and moving the table 2 ems to the 
                      left.
                    (B) Subparagraph (B) of section 32(b)(2) is amended 
                by striking ``increased by'' and all that follows and 
                inserting ``increased by $3,000.''.
            (4) First-time homebuyer credit.--Section 6213(g)(2), as 
        amended by section 214(a)(2) of this Act, is amended by striking 
        subparagraph (P).
            (5) Making work pay credit.--
                    (A) <<NOTE: 26 USC prec. 31.>>  Subpart C of part IV 
                of subchapter A of chapter 1 is amended by striking 
                section 36A (and by striking the item relating to such 
                section in the table of sections for such subpart).
                    (B) Subparagraph (A) of section 6211(b)(4) is 
                amended by striking ``, 36A''.

[[Page 128 STAT. 4038]]

                    (C) Section 6213(g)(2) <<NOTE: 26 USC 6213.>>  is 
                amended by striking subparagraph (N).
            (6) General business credits.--Subsection (d) of section 38 
        is amended by striking paragraph (3).
            (7) Low-income housing credit.--Subclause (I) of section 
        42(h)(3)(C)(ii) is amended by striking ``($1.50 for 2001)''.
            (8) Minimum tax credit.--
                    (A)(i) Section 53 is amended by striking subsections 
                (e) and (f).
                    (ii) The amendment made by clause (i) striking 
                subsection (f) of section 53 of the Internal Revenue 
                Code of 1986 shall not be construed to allow any tax 
                abated by reason of section 53(f)(1) of such Code (as in 
                effect before such amendment) to be included in the 
                amount determined under section 53(b)(1) of such Code.
                    (B) Paragraph (4) of section 6211(b)(4) is amended 
                by striking ``, 53(e)''.
            (9) Adjustments based on adjusted current earnings.--Clause 
        (ii) of section 56(g)(4)(F) is amended by striking ``In the case 
        of any taxable year beginning after December 31, 1992, clause'' 
        and inserting ``Clause''.
            (10) Items of tax preference; depletion.--Paragraph (1) of 
        section 57(a) is amended by striking ``Effective with respect to 
        taxable years beginning after December 31, 1992, this'' and 
        inserting ``This''.
            (11) Intangible drilling costs.--
                    (A) Clause (i) of section 57(a)(2)(E) is amended by 
                striking ``In the case of any taxable year beginning 
                after December 31, 1992, this'' and inserting ``This''.
                    (B) Clause (ii) of section 57(a)(2)(E) is amended by 
                striking ``(30 percent in case of taxable years 
                beginning in 1993)''.
            (12) Environmental tax.--
                    (A) Subchapter A of chapter 1 <<NOTE: 26 USC prec. 
                59A.>>  is amended by striking part VII (and by striking 
                the item relating to such part in the table of parts for 
                such subchapter).
                    (B) Paragraph (2) of section 26(b) is amended by 
                striking subparagraph (B).
                    (C) Section 30A(c) is amended by striking paragraph 
                (1) and by redesignating paragraphs (2), (3), and (4) as 
                paragraphs (1), (2), and (3), respectively.
                    (D) Subsection (a) of section 164 is amended by 
                striking paragraph (5).
                    (E) Section 275(a) is amended by striking the last 
                sentence.
                    (F) Section 882(a)(1) is amended by striking ``, 
                59A''.
                    (G) Section 936(a)(3) is amended by striking 
                subparagraph (A) and by redesignating subparagraphs (B), 
                (C), and (D) as subparagraphs (A), (B), and (C), 
                respectively.
                    (H) Section 1561(a) is amended--
                          (i) by inserting ``and'' at the end of 
                      paragraph (2), by striking ``, and'' at the end of 
                      paragraph (3) and inserting a period, and by 
                      striking paragraph (4), and
                          (ii) by striking ``, the amount specified in 
                      paragraph (3), and the amount specified in 
                      paragraph (4)'' and inserting ``and the amount 
                      specified in paragraph (3)''.

[[Page 128 STAT. 4039]]

                    (I) Section 4611(e) <<NOTE: 26 USC 4611.>>  is 
                amended--
                          (i) by striking ``section 59A, this section,'' 
                      in paragraph (2)(B) and inserting ``this 
                      section'', and
                          (ii) in paragraph (3)(A)--
                                    (I) by striking ``section 59A,'', 
                                and
                                    (II) by striking the comma after 
                                ``rate)''.
                    (J) Section 6425(c)(1)(A) is amended by inserting 
                ``plus'' at end of clause (i), by striking ``plus'' and 
                inserting ``over'' at the end of clause (ii), and by 
                striking clause (iii).
                    (K) Section 6655 is amended--
                          (i) in subsections (e)(2)(A)(i) and 
                      (e)(2)(B)(i), by striking ``taxable income, 
                      alternative minimum taxable income, and modified 
                      alternative minimum taxable income'' and inserting 
                      ``taxable income and alternative minimum taxable 
                      income'',
                          (ii) in subsection (e)(2)(B), by striking 
                      clause (iii), and
                          (iii) in subsection (g)(1)(A), by inserting 
                      ``plus'' at the end of clause (ii), by striking 
                      clause (iii), and by redesignating clause (iv) as 
                      clause (iii).
                    (L) Section 9507(b)(1) is amended by striking 
                ``59A,''.
            (13) Standard deduction.--
                    (A) So much of paragraph (1) of section 63(c) as 
                follows ``the sum of--'' is amended to read as follows:
                    ``(A) the basic standard deduction, and
                    ``(B) the additional standard deduction.''.
                    (B) Subsection (c) of section 63 is amended by 
                striking paragraphs (7), (8), and (9).
            (14) Annuities; certain proceeds of endowment and life 
        insurance contracts.--Section 72 is amended--
                    (A) in subsection (c)(4), by striking ``; except 
                that if such date was before January 1, 1954, then the 
                annuity starting date is January 1, 1954'', and
                    (B) in subsection (g)(3), by striking ``January 1, 
                1954, or'' and ``, whichever is later''.
            (15) Unemployment compensation.--Section 85 is amended by 
        striking subsection (c).
            (16) Accident and health plans.--Section 105(f) is amended 
        by striking ``or (d)''.
            (17) Flexible spending arrangements.--Section 106(c)(1) is 
        amended by striking ``Effective on and after January 1, 1997, 
        gross'' and inserting ``Gross''.
            (18) Certain combat zone compensation of members of the 
        armed forces.--Subsection (c) of section 112 is amended--
                    (A) by striking ``(after June 24, 1950)'' in 
                paragraph (2), and
                    (B) by striking ``such zone;'' and all that follows 
                in paragraph (3) and inserting ``such zone.''.
            (19) Legal service plans.--
                    (A) <<NOTE: 26 USC prec. 101.>>  Part III of 
                subchapter B of chapter 1 is amended by striking section 
                120 (and by striking the item relating to such section 
                in the table of sections for such subpart).
                    (B)(i) Section 414(n)(3)(C) is amended by striking 
                ``120,''.
                    (ii) Section 414(t)(2) is amended by striking 
                ``120,''.

[[Page 128 STAT. 4040]]

                    (iii) Section 501(c) <<NOTE: 26 USC 501.>>  is 
                amended by striking paragraph (20).
                    (iv) Section 3121(a) is amended by striking 
                paragraph (17).
                    (v) Section 3231(e) is amended by striking paragraph 
                (7).
                    (vi) Section 3306(b) is amended by striking 
                paragraph (12).
                    (vii) Section 6039D(d)(1) is amended by striking 
                ``120,''.
                    (viii) Section 209(a)(14) of the Social Security 
                Act <<NOTE: 26 USC 409.>>  is amended--
                          (I) by striking subparagraph (B), and
                          (II) by striking ``(14)(A)'' and inserting 
                      ``(14)''.
            (20) Principal residence.--Section 121(b)(3) is amended--
                    (A) by striking subparagraph (B), and
                    (B) in subparagraph (A), by striking ``(A) In 
                general.--'' and moving the text 2 ems to the left.
            (21) Certain reduced uniformed services retirement pay.--
        Section 122(b)(1) is amended by striking ``after December 31, 
        1965,''.
            (22) Great plains conservation program.--Section 126(a) is 
        amended by striking paragraph (6) and by redesignating 
        paragraphs (7), (8), (9), and (10) as paragraphs (6), (7), (8), 
        and (9), respectively.
            (23) Treble damage payments under the antitrust law.--
        Section 162(g) is amended by striking the last sentence.
            (24) State legislators' travel expenses away from home.--
        Paragraph (4) of section 162(h) is amended by striking ``For 
        taxable years beginning after December 31, 1980, this'' and 
        inserting ``This''.
            (25) Interest.--
                    (A) Section 163 is amended--
                          (i) by striking paragraph (6) of subsection 
                      (d), and
                          (ii) by striking paragraph (5) of subsection 
                      (h).
                    (B) Section 56(b)(1)(C) is amended by striking 
                clause (ii) and by redesignating clauses (iii), (iv), 
                and (v) as clauses (ii), (iii), and (iv), respectively.
            (26) Qualified motor vehicle taxes.--Section 164, as amended 
        by section 209(c) of this Act, is amended by striking 
        subsections (a)(6) and (b)(6).
            (27) Disaster losses.--
                    (A) Subsection (h) of section 165 is amended by 
                striking paragraph (3) and by redesignating paragraphs 
                (4) and (5) as paragraphs (3) and (4), respectively.
                    (B) Paragraph (3) of section 165(h), as so 
                redesignated, is amended by striking ``paragraphs (2) 
                and (3)'' and inserting ``paragraph (2)''.
                    (C) Subsection (i) of section 165 is amended--
                          (i) in paragraph (1)--
                                    (I) by striking ``(as defined by 
                                clause (ii) of subsection (h)(3)(C))'', 
                                and
                                    (II) by striking ``(as defined by 
                                clause (i) of such subsection)'',
                          (ii) by striking ``(as defined by subsection 
                      (h)(3)(C)(i)'' in paragraph (4), and
                          (iii) by adding at the end the following new 
                      paragraph:

[[Page 128 STAT. 4041]]

            ``(5) <<NOTE: Definitions.>>  Federally declared 
        disasters.--For purposes of this subsection--
                    ``(A) In general.--The term `Federally declared 
                disaster' means any disaster subsequently determined by 
                the President of the United States to warrant assistance 
                by the Federal Government under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act.
                    ``(B) Disaster area.--The term `disaster area' means 
                the area so determined to warrant such assistance.''.
                    (D) Section 1033(h)(3) <<NOTE: 26 USC 1033.>>  is 
                amended by striking ``section 165(h)(3)(C)'' and 
                inserting ``section 165(i)(5)''.
            (28) Charitable, etc., contributions and gifts.--Section 170 
        is amended--
                    (A) by striking paragraph (3) of subsection (b),
                    (B) by striking paragraph (6) of subsection (e), and
                    (C) by striking subsection (k).
            (29) Amortizable bond premium.--
                    (A) Subparagraph (B) of section 171(b)(1) is amended 
                to read as follows:
                    ``(B)(i) with reference to the amount payable on 
                maturity (or if it results in a smaller amortizable bond 
                premium attributable to the period before the call date, 
                with reference to the amount payable on the earlier call 
                date), in the case of a bond described in subsection 
                (a)(1), and
                    ``(ii) with reference to the amount payable on 
                maturity or on an earlier call date, in the case of a 
                bond described in subsection (a)(2).''.
                    (B) Paragraphs (2) and (3)(B) of section 171(b) are 
                each amended by striking ``paragraph (1)(B)(ii)'' and 
                inserting ``paragraph (1)(B)(i)''.
            (30) Net operating loss carrybacks, carryovers, and 
        carryforwards.--
                    (A) Section 172, as amended by section 211(c)(1)(B) 
                of this Act, is amended--
                          (i) by striking subparagraphs (D), (H), (I), 
                      and (J) of subsection (b)(1) and by redesignating 
                      subparagraphs (E), (F), and (G) as subparagraphs 
                      (D), (E), and (F), respectively, and
                          (ii) by striking subsections (g) and (j) and 
                      by redesignating subsections (h), (i), and (k) as 
                      subsections (g), (h), and (i), respectively.
                    (B) Each of the following provisions of section 172 
                (as amended by section 211(c)(1)(B) of this Act and as 
                redesignated by subparagraph (A)) are amended as 
                follows:
                          (i) By striking ``ending after August 2, 
                      1989'' in subsection (b)(1)(D)(i)(II).
                          (ii) By striking ``subsection (h)'' in 
                      subsection (b)(1)(D)(ii) and inserting 
                      ``subsection (g)''.
                          (iii) By striking ``section 165(h)(3)(C)(i)'' 
                      in subsection (b)(1)(E)(ii)(II) and inserting 
                      ``section 165(i)(5)''.
                          (iv) By striking ``subsection (i)'' and all 
                      that follows in the last sentence of subsection 
                      (b)(1)(E)(ii) and inserting ``subsection (h)).''.
                          (v) By striking ``subsection (i)'' in 
                      subsection (b)(1)(F) and inserting ``subsection 
                      (h)''.
                          (vi) By striking subparagraph (F) of paragraph 
                      (2) of subsection (g).

[[Page 128 STAT. 4042]]

                          (vii) By striking ``subsection (b)(1)(E)'' 
                      each place it appears in subsection (g)(4) and 
                      inserting ``subsection (b)(1)(D)''.
                          (viii) By striking the last sentence of 
                      subsection (h)(1).
                          (ix) By striking ``subsection (b)(1)(G)'' each 
                      place it appears in subsection (h)(3) and 
                      inserting ``subsection (b)(1)(F)''.
                    (C) Subsection (d) of section 56 <<NOTE: 26 USC 
                56.>>  is amended by striking paragraph (3).
                    (D) Paragraph (5) of section 382(l) is amended by 
                striking subparagraph (F) and by redesignating 
                subparagraphs (G) and (H) as subparagraphs (F) and (G), 
                respectively.
            (31) Research and experimental expenditures.--Subparagraph 
        (A) of section 174(a)(2) is amended to read as follows:
                    ``(A) Without consent.--A taxpayer may, without the 
                consent of the Secretary, adopt the method provided in 
                this subsection for his first taxable year for which 
                expenditures described in paragraph (1) are paid or 
                incurred.''.
            (32) Amortization of certain research and experimental 
        expenditures.--Paragraph (2) of section 174(b) is amended by 
        striking ``beginning after December 31, 1953''.
            (33) Soil and water conservation expenditures.--Paragraph 
        (1) of section 175(d) is amended to read as follows:
            ``(1) Without consent.--A taxpayer may, without the consent 
        of the Secretary, adopt the method provided in this section for 
        the taxpayer's first taxable year for which expenditures 
        described in subsection (a) are paid or incurred.''.
            (34) Clean-fuel vehicles.--
                    (A) <<NOTE: 26 USC prec. 161.>>  Part VI of 
                subchapter A of chapter 1 is amended by striking section 
                179A (and by striking the item relating to such section 
                in the table of sections for such part).
                    (B) Section 30C(e) is amended by adding at the end 
                the following:
            ``(7) Reference.--For purposes of this section, any 
        reference to section 179A shall be treated as a reference to 
        such section as in effect immediately before its repeal.''.
                    (C) Section 62(a) is amended by striking paragraph 
                (14).
                    (D) Section 263(a)(1) is amended by striking 
                subparagraph (H).
                    (E) Section 280F(a)(1) is amended by striking 
                subparagraph (C).
                    (F) Section 312(k)(3) is amended by striking 
                ``179A,'' each place it appears.
                    (G) Section 1016(a) is amended by striking paragraph 
                (24).
                    (H) Section 1245(a) is amended by striking ``179A,'' 
                each place it appears in paragraphs (2)(C) and (3)(C).
            (35) <<NOTE: 26 USC prec. 161.>>  Qualified disaster 
        expenses.--Part VI of subchapter A of chapter 1 is amended by 
        striking section 198A (and by striking the item relating to such 
        section in the table of sections for such part).
            (36) Activities not engaged in for profit.--Section 
        183(e)(1) is amended by striking the last sentence.

[[Page 128 STAT. 4043]]

            (37) Domestic production activities.--
                    (A) Subsection (a) of section 199 <<NOTE: 26 USC 
                199.>>  is amended--
                          (i) by striking paragraph (2),
                          (ii) by redesignating subparagraphs (A) and 
                      (B) of paragraph (1) as paragraphs (1) and (2), 
                      respectively, and by moving paragraphs (1) and (2) 
                      (as so redesignated) 2 ems to the left, and
                          (iii) by striking ``Allowance of Deduction.--
                      '' and all that follows through ``There shall be 
                      allowed'' and inserting the following:

    ``(a) Allowance of Deduction.--There shall be allowed''.
                    (B) Paragraphs (2) and (6)(B) of section 199(d) are 
                each amended by striking ``(a)(1)(B)'' and inserting 
                ``(a)(2)''.
            (38) Retirement savings.--
                    (A) Subparagraph (A) of section 219(b)(5) is amended 
                to read as follows:
                    ``(A) In general.--The deductible amount is 
                $5,000.''.
                    (B) Clause (ii) of section 219(b)(5)(B) is amended 
                to read as follows:
                          ``(ii) Applicable amount.--For purposes of 
                      clause (i), the applicable amount is $1,000.''.
                    (C) Paragraph (5) of section 219(b) is amended by 
                striking subparagraph (C) and by redesignating 
                subparagraph (D) as subparagraph (C).
                    (D) Clause (ii) of section 219(g)(2)(A) is amended 
                by striking ``for a taxable year beginning after 
                December 31, 2006''.
                    (E) Section 219(g)(3)(B) is amended by striking 
                clauses (i) and (ii) and inserting the following:
                          ``(i) In the case of a taxpayer filing a joint 
                      return, $80,000.
                          ``(ii) In the case of any other taxpayer 
                      (other than a married individual filing a separate 
                      return), $50,000.''.
                    (F) Paragraph (8) of section 219(g) is amended by 
                striking ``the dollar amount in the last row of the 
                table contained in paragraph (3)(B)(i), the dollar 
                amount in the last row of the table contained in 
                paragraph (3)(B)(ii), and the dollar amount contained in 
                paragraph (7)(A),'' and inserting ``each of the dollar 
                amounts in paragraphs (3)(B)(i), (3)(B)(ii), and 
                (7)(A)''.
            (39) Reports regarding qualified voluntary retirement 
        contributions.--
                    (A) Section 219 is amended by striking paragraph (4) 
                of subsection (f) and subsection (h).
                    (B) Section 6652 is amended by striking subsection 
                (g).
            (40) Interest on education loans.--Paragraph (1) of section 
        221(b) is amended by striking ``shall not exceed'' and all that 
        follows and inserting ``shall not exceed $2,500.''.
            (41) Dividends received on certain preferred stock; and 
        dividends paid on certain preferred stock of public utilities.--
                    (A) <<NOTE: 26 USC prec. 241.>>  Sections 244 and 
                247 are hereby repealed, and the table of sections for 
                part VIII of subchapter B of chapter 1 is amended by 
                striking the items relating to sections 244 and 247.

[[Page 128 STAT. 4044]]

                    (B) Paragraph (5) of section 172(d) <<NOTE: 26 USC 
                172.>>  is amended to read as follows:
            ``(5) Computation of deduction for dividends received.--The 
        deductions allowed by section 243 (relating to dividends 
        received by corporations) and 245 (relating to dividends 
        received from certain foreign corporations) shall be computed 
        without regard to section 246(b) (relating to limitation on 
        aggregate amount of deductions).''.
                    (C) Paragraph (1) of section 243(c) is amended to 
                read as follows:
            ``(1) In general.--In the case of any dividend received from 
        a 20-percent owned corporation, subsection (a)(1) shall be 
        applied by substituting `80 percent' for `70 percent'.''.
                    (D) Section 243(d) is amended by striking paragraph 
                (4).
                    (E) Section 246 is amended--
                          (i) by striking ``, 244,'' in subsection 
                      (a)(1),
                          (ii) in subsection (b)(1)--
                                    (I) by striking ``sections 
                                243(a)(1), 244(a),'' and inserting 
                                ``section 243(a)(1)'',
                                    (II) by striking ``244(a),'' the 
                                second place it appears, and
                                    (III) by striking ``subsection (a) 
                                or (b) of section 245, and 247,'' and 
                                inserting ``and subsection (a) or (b) of 
                                section 245,'', and
                          (iii) by striking ``, 244,'' in subsection 
                      (c)(1).
                    (F) Section 246A is amended by striking ``, 244,'' 
                both places it appears in subsections (a) and (e).
                    (G) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2), 
                469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), and (D) 
                of section 805(a)(4), 805(b)(5), 812(e)(2)(A), 
                815(c)(2)(A)(iii), 832(b)(5), 833(b)(3)(E), and 
                1059(b)(2)(B) are each amended by striking ``, 244,'' 
                each place it appears.
                    (H) Section 1244(c)(2)(C) is amended by striking 
                ``244,''.
                    (I) Section 805(a)(4)(B) is amended by striking ``, 
                244(a),'' each place it appears.
                    (J) Section 810(c)(2)(B) is amended by striking 
                ``244 (relating to dividends on certain preferred stock 
                of public utilities),''.
                    (K) <<NOTE: 26 USC 172 note.>>  The amendments made 
                by this paragraph shall not apply to preferred stock 
                issued before October 1, 1942 (determined in the same 
                manner as under section 247 of the Internal Revenue Code 
                of 1986 as in effect before its repeal by such 
                amendments).
            (42) Organization expenses.--Section 248(c) is amended by 
        striking ``beginning after December 31, 1953,'' and by striking 
        the last sentence.
            (43) Bond repurchase premium.--Section 249(b)(1) is amended 
        by striking ``, in the case of bonds or other evidences of 
        indebtedness issued after February 28, 1913,''.
            (44) Amount of gain where loss previously disallowed.--
        Section 267(d) is amended by striking ``(or by reason of section 
        24(b) of the Internal Revenue Code of 1939)'' in paragraph (1), 
        by striking ``after December 31, 1953,'' in paragraph (2), by 
        striking the second sentence, and by striking ``or by reason of 
        section 118 of the Internal Revenue Code of 1939'' in the last 
        sentence.

[[Page 128 STAT. 4045]]

            (45) Acquisitions made to evade or avoid income tax.--
        Paragraphs (1) and (2) of section 269(a) are each amended by 
        striking ``or acquired on or after October 8, 1940,''.
            (46) Meals and entertainment.--Paragraph (3) of section 
        274(n) is amended--
                    (A) by striking ``(A) In general.--'',
                    (B) by striking ``substituting `the applicable 
                percentage' for'' and inserting ``substituting `80 
                percent' for'', and
                    (C) by striking subparagraph (B).
            (47) Interest on indebtedness incurred by corporations to 
        acquire stock or assets of another corporation.--
                    (A) Section 279 is amended--
                          (i) by striking ``after December 31, 1967,'' 
                      in subsection (a)(2),
                          (ii) by striking ``after October 9, 1969,'' in 
                      subsection (b),
                          (iii) by striking ``after October 9, 1969, 
                      and'' in subsection (d)(5), and
                          (iv) by striking subsection (i) and 
                      redesignating subsection (j) as subsection (i).
                    (B) The amendments made by this paragraph shall 
                not--
                          (i) apply to obligations issued on or before 
                      October 9, 1969 (determined in the same manner as 
                      under section 279 of the Internal Revenue Code of 
                      1986 as in effect before such amendments), and
                          (ii) be construed to require interest on 
                      obligations issued on or before December 31, 1967, 
                      to be taken into account under section 279(a)(2) 
                      of such Code (as in effect after such amendments).
            (48) Bank holding companies.--
                    (A) Clause (iii) of section 304(b)(3)(D) is 
                repealed.
                    (B) The heading of subparagraph (D) of section 
                304(b)(3) is amended by striking ``and special rule''.
            (49) Effect on earnings and profits.--Subsection (d) of 
        section 312 is amended by striking paragraph (2) and 
        redesignating paragraph (3) as paragraph (2).
            (50) Disqualified stock.--Paragraph (3) of section 355(d) is 
        amended by striking ``after October 9, 1990, and'' each place it 
        appears.
            (51) Basis to corporations.--Section 362 is amended by 
        striking ``on or after June 22, 1954'' in subsection (a) and by 
        striking ``, on or after June 22, 1954,'' each place it appears 
        in subsection (c).
            (52) Temporary waiver of minimum required distribution.--
        Section 401(a)(9) is amended by striking subparagraph (H).
            (53) Individual retirement accounts.--Clause (i) of section 
        408(p)(2)(E) is amended to read as follows:
                          ``(i) In general.--For purposes of 
                      subparagraph (A)(ii), the applicable amount is 
                      $10,000.''.
            (54) Tax credit employee stock ownership plans.--Section 409 
        is amended by striking subsection (q).
            (55) Catch-up contributions.--Clauses (i) and (ii) of 
        section 414(v)(2)(B) are amended to read as follows:

[[Page 128 STAT. 4046]]

                          ``(i) In the case of an applicable employer 
                      plan other than a plan described in section 
                      401(k)(11) or 408(p), the applicable dollar amount 
                      is $5,000.
                          ``(ii) In the case of an applicable employer 
                      plan described in section 401(k)(11) or 408(p), 
                      the applicable dollar amount is $2,500.''.
            (56) Employee stock purchase plans.--Section <<NOTE: 26 USC 
        423.>>  423(a) is amended by striking ``after December 31, 
        1963,''.
            (57) Pension related transition rules.--
                    (A) Section 402(g)(1)(B) is amended by striking 
                ``shall be'' and all that follows and inserting ``is 
                $15,000.''.
                    (B)(i) Subparagraph (D) of section 417(e)(3) is 
                amended--
                          (I) by striking clauses (ii) and (iii),
                          (II) by striking ``if--'' and all that follows 
                      through ``section 430(h)(2)(D)'' and inserting 
                      ``if section 430(h)(2)(D)'', and
                          (III) by striking ``described in such 
                      section,'' and inserting ``described in such 
                      section.''.
                    (ii) Clause (iii) of section 205(g)(3)(B) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1055(g)(3)(B)) is amended--
                          (I) by striking subclauses (II) and (III),
                          (II) by striking ``if--'' and all that follows 
                      through ``section 303(h)(2)(D)'' and inserting 
                      ``if section 303(h)(2)(D)'', and
                          (III) by striking ``described in such 
                      section,'' and inserting ``described in such 
                      section.''.
                    (C)(i) Paragraph (5) of section 430(c) is amended by 
                striking subparagraph (B) and by striking ``(A) In 
                general.--''.
                    (ii) Paragraph (5) of section 303(c) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1083(c)) is amended by striking subparagraph (B) and by 
                striking ``(A) In general.--''.
                    (D)(i) Paragraph (2) of section 430(h) is amended by 
                striking subparagraph (G).
                    (ii) Paragraph (2) of section 303(h) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1083(h)) is amended by striking subparagraph (G).
                    (E)(i) Paragraph (3) of section 436(j), as added by 
                section 113(a)(1)(B) of the Pension Protection Act of 
                2006, is amended by striking subparagraphs (B) and (C) 
                and by striking ``(A) In general.--''.
                    (ii) Subparagraph (C) of section 206(g)(9) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1056(g)(9)) is amended by striking clauses (ii) 
                and (iii) and by striking ``(i) In general.--''.
                    (F)(i) Section 436(j) is amended by striking the 
                paragraph (3) added by section 203(a)(2) of the 
                Preservation of Access to Care for Medicare 
                Beneficiaries and Pension Relief Act of 2010.
                    (ii) Section 206(g)(9) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1056(g)(9)) is 
                amended by striking subparagraph (D).
                    (G)(i) Section 436 is amended by striking subsection 
                (m).

[[Page 128 STAT. 4047]]

                    (ii) Section 206(g) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1056(g)) is 
                amended by striking paragraph (11).
                    (H) Section 457(e)(15)(A) <<NOTE: 26 USC 457.>>  is 
                amended by striking ``shall be'' and all that follows 
                and inserting ``is $15,000.''.
            (58) Limitation on deductions for certain farming.--
                    (A) Section 464 is amended by striking ``any farming 
                syndicate (as defined in subsection (c))'' both places 
                it appears in subsections (a) and (b) and inserting 
                ``any taxpayer to whom subsection (d) applies''.
                    (B)(i) Subsection (c) of section 464 is hereby moved 
                to the end of section 461 <<NOTE: 26 USC 464, 461.>>  
                and redesignated as subsection (j).
                    (ii) Such subsection (j) is amended--
                          (I) by striking ``For purposes of this 
                      section'' in paragraph (1) and inserting ``For 
                      purposes of subsection (i)(4)'', and
                          (II) by adding at the end the following new 
                      paragraphs:
            ``(3) Farming.--For purposes of this subsection, the term 
        `farming' has the meaning given to such term by section 464(e).
            ``(4) Limited entrepreneur.--For purposes of this 
        subsection, the term `limited entrepreneur' means a person who--
                    ``(A) has an interest in an enterprise other than as 
                a limited partner, and
                    ``(B) does not actively participate in the 
                management of such enterprise.''.
                          (iii) Paragraph (4) of section 461(i) is 
                      amended by striking ``section 464(c)'' and 
                      inserting ``subsection (j)''.
                    (C) Section 464 is amended--
                          (i) by striking subsections (e) and (g) and 
                      redesignating subsections (d) and (f) as 
                      subsections (c) and (d), respectively, and
                          (ii) by adding at the end the following new 
                      subsection:

    ``(e) Farming.--For purposes of this section, the term `farming' 
means the cultivation of land or the raising or harvesting of any 
agricultural or horticultural commodity including the raising, shearing, 
feeding, caring for, training, and management of animals. For purposes 
of the preceding sentence, trees (other than trees bearing fruit or 
nuts) shall not be treated as an agricultural or horticultural 
commodity.''.
                    (D) Subsection (d) of section 464 of such Code (as 
                redesignated by subparagraph (C)) is amended--
                          (i) by striking paragraph (1) and 
                      redesignating paragraphs (2), (3), and (4) as 
                      paragraphs (1), (2), and (3), respectively, and
                          (ii) by striking ``Subsections (a) and (b) to 
                      Apply to'' in the heading.
                    (E) Subparagraph (A) of section 58(a)(2) is amended 
                by striking ``section 464(c)'' and inserting ``section 
                461(j)''.
            (59) Deductions limited to amount at risk.--Subparagraph (A) 
        of section 465(c)(3) is amended by striking ``In the case of 
        taxable years beginning after December 31, 1978, this'' and 
        inserting ``This''.
            (60) Passive activity losses and credits limited.--

[[Page 128 STAT. 4048]]

                    (A) Section 469 <<NOTE: 26 USC 469.>>  is amended by 
                striking subsection (m).
                    (B) Subsection (b) of section 58 is amended by 
                adding ``and'' at the end of paragraph (1), by striking 
                paragraph (2), and by redesignating paragraph (3) as 
                paragraph (2).
            (61) Adjustments required by changes in method of 
        accounting.--Section 481(b)(3) is amended by striking 
        subparagraph (C).
            (62) Exemption from tax on corporations, certain trusts, 
        etc.--Section 501 is amended by striking subsection (s).
            (63) Requirements for exemption.--
                    (A) Section 503(a)(1) is amended to read as follows:
            ``(1) General rule.--An organization described in paragraph 
        (17) or (18) of section 501(c), or described in section 401(a) 
        and referred to in section 4975(g) (2) or (3), shall not be 
        exempt from taxation under section 501(a) if it has engaged in a 
        prohibited transaction.''.
                    (B) Paragraph (2) of section 503(a) is amended by 
                striking ``described in section 501(c)(17) or (18) or 
                paragraph (a)(1)(B)'' and inserting ``described in 
                paragraph (1)''.
                    (C) Subsection (c) of section 503 is amended by 
                striking ``described in section 501(c)(17) or (18) or 
                subsection (a)(1)(B)'' and inserting ``described in 
                subsection (a)(1)''.
            (64) Accumulated taxable income.--Paragraph (1) of section 
        535(b) and paragraph (1) of section 545(b) are each amended by 
        striking ``section 531'' and all that follows and inserting 
        ``section 531 or the personal holding company tax imposed by 
        section 541.''.
            (65) Definition of property.--Subsection (b) of section 614 
        is amended--
                    (A) by striking paragraphs (3)(C) and (5), and
                    (B) in paragraph (4), by striking ``whichever of the 
                following years is later: The first taxable year 
                beginning after December 31, 1963, or''.
            (66) Amounts received by surviving annuitant under joint and 
        survivor annuity contract.--Subparagraph (A) of section 
        691(d)(1) is amended by striking ``after December 31, 1953, 
        and''.
            (67) Income taxes of members of armed forces on death.--
        Section 692(a)(1) is amended by striking ``after June 24, 
        1950''.
            (68) Special rules for computing reserves.--Paragraph (7) of 
        section 807(e) is amended by striking subparagraph (B) and 
        redesignating subparagraph (C) as subparagraph (B).
            (69) Insurance company taxable income.--
                    (A) Section 832(e) is amended by striking ``of 
                taxable years beginning after December 31, 1966,''.
                    (B) Section 832(e)(6) is amended by striking ``In 
                the case of any taxable year beginning after December 
                31, 1970, the'' and inserting ``The''.
            (70) Capitalization of certain policy acquisition 
        expenses.--Section 848 is amended by striking subsection (j).
            (71) Tax on nonresident alien individuals.--Subparagraph (B) 
        of section 871(a)(1) is amended to read as follows:
                    ``(B) gains described in subsection (b) or (c) of 
                section 631,''.

[[Page 128 STAT. 4049]]

            (72) Limitation on credit.--Paragraph (2) of section 904(d) 
        is amended by striking subparagraph (J).
            (73) Foreign earned income.--Clause (i) of section 
        911(b)(2)(D) is amended to read as follows:
                          ``(i) In general.--The exclusion amount for 
                      any calendar year is $80,000.''.
            (74) Basis of property acquired from decedent.--
                    (A) Section 1014(a)(2) is amended to read as 
                follows:
            ``(2) in the case of an election under section 2032, its 
        value at the applicable valuation date prescribed by such 
        section,''.
                    (B) Section 1014(b) is amended by striking 
                paragraphs (7) and (8).
            (75) Adjusted basis.--Section 1016(a) is amended by striking 
        paragraph (12).
            (76) Property on which lessee has made improvements.--
        Section 1019 is amended by striking the last sentence.
            (77) Involuntary conversion.--Section 1033 is amended by 
        striking subsection (j) and by redesignating subsections (k) and 
        (l) as subsections (j) and (k), respectively.
            (78) <<NOTE: 26 USC prec. 1051.>>  Property acquired during 
        affiliation.--Section 1051 is hereby repealed, and the table of 
        sections for part IV of subchapter O of chapter 1 is amended by 
        striking the item relating to section 1051.
            (79) Capital gains and losses.--Section 1222 is amended by 
        striking the last sentence.
            (80) Holding period of property.--
                    (A) Paragraph (1) of section 1223 is amended by 
                striking ``after March 1, 1954,''.
                    (B) Paragraph (4) of section 1223 is amended by 
                striking `` `(or under so much of section 1052(c) as 
                refers to section 113(a)(23) of the Internal Revenue 
                Code of 1939)' ''.
                    (C) Paragraphs (6) and (8) of section 1223 are 
                repealed.
            (81) Property used in the trade or business and involuntary 
        conversions.--Subparagraph (A) of section 1231(c)(2) is amended 
        by striking ``beginning after December 31, 1981''.
            (82) Sale or exchange of patents.--Section 1235 is amended--
                    (A) by striking subsection (c) and by redesignating 
                subsections (d) and (e) as subsections (c) and (d), 
                respectively, and
                    (B) by striking ``subsection (d)'' in subsection 
                (b)(2)(B) and inserting ``subsection (c)''.
            (83) Dealers in securities.--Subsection (b) of section 1236 
        is amended by striking ``after November 19, 1951,''.
            (84) Sale of patents.--Subsection (a) of section 1249 is 
        amended by striking ``after December 31, 1962,''.
            (85) Gain from disposition of farmland.--Paragraph (1) of 
        section 1252(a) is amended--
                    (A) by striking ``after December 31, 1969'' the 
                first place it appears, and
                    (B) by striking ``after December 31, 1969,'' in 
                subparagraph (A).
            (86) Treatment of amounts received on retirement or sale or 
        exchange of debt instruments.--Subsection (c) of section 1271 is 
        amended to read as follows:

[[Page 128 STAT. 4050]]

    ``(c) Special Rule for Certain Obligations With Respect to Which 
Original Issue Discount Not Currently Includible.--
            ``(1) In general.--On the sale or exchange of debt 
        instruments issued by a government or political subdivision 
        thereof after December 31, 1954, and before July 2, 1982, or by 
        a corporation after December 31, 1954, and on or before May 27, 
        1969, any gain realized which does not exceed--
                    ``(A) an amount equal to the original issue 
                discount, or
                    ``(B) if at the time of original issue there was no 
                intention to call the debt instrument before maturity, 
                an amount which bears the same ratio to the original 
                issue discount as the number of complete months that the 
                debt instrument was held by the taxpayer bears to the 
                number of complete months from the date of original 
                issue to the date of maturity, shall be considered as 
                ordinary income.
            ``(2) Subsection (a)(2)(A) not to apply.--Subsection 
        (a)(2)(A) shall not apply to any debt instrument referred to in 
        paragraph (1) of this subsection.
            ``(3) Cross reference.--For current inclusion of original 
        issue discount, see section 1272.''.
            (87) Amount and method of adjustment.--Section <<NOTE: 26 
        USC 1314.>>  1314 is amended by striking subsection (d) and by 
        redesignating subsection (e) as subsection (d).
            (88) Election; revocation; termination.--Clause (iii) of 
        section 1362(d)(3)(A) is amended by striking ``unless'' and all 
        that follows and inserting ``unless the corporation was an S 
        corporation for such taxable year.''.
            (89) Old-age, survivors, and disability insurance.--
        Subsection (a) of section 1401 is amended by striking ``the 
        following percent'' and all that follows and inserting ``12.4 
        percent of the amount of the self-employment income for such 
        taxable year.''.
            (90) Hospital insurance.--Paragraph (1) of section 1401(b) 
        is amended by striking: ``the following percent'' and all that 
        follows and inserting ``2.9 percent of the amount of the self-
        employment income for such taxable year.''.
            (91) Ministers, members of religious orders, and christian 
        science practitioners.--Paragraph (3) of section 1402(e) is 
        amended--
                    (A) by striking ``whichever of the following dates 
                is later: (A)'', and
                    (B) by striking ``;or (B)' '' and all that follows 
                and inserting a period.
            (92) Withholding of tax on nonresident aliens.--The first 
        sentence of subsection (b) of section 1441 and the first 
        sentence of paragraph (5) of section 1441(c) are each amended by 
        striking ``gains subject to tax'' and all that follows through 
        ``October 4, 1966'' and inserting ``and gains subject to tax 
        under section 871(a)(1)(D)''.
            (93) Affiliated group defined.--Subparagraph (A) of section 
        1504(a)(3) is amended by striking ``for a taxable year which 
        includes any period after December 31, 1984'' in clause (i) and 
        by striking ``in a taxable year beginning after December 31, 
        1984'' in clause (ii).

[[Page 128 STAT. 4051]]

            (94) Disallowance of the benefits of the graduated corporate 
        rates and accumulated earnings credit.--
                    (A) Subsection (a) of section 1551 <<NOTE: 26 USC 
                1551.>>  is amended--
                          (i) by striking paragraph (1) and by 
                      redesignating paragraphs (2) and (3) as paragraphs 
                      (1) and (2), respectively, and
                          (ii) by striking ``after June 12, 1963,'' each 
                      place it appears.
                    (B) Section 1551(b) is amended--
                          (i) by striking ``or (2)'' in paragraph (1), 
                      and
                          (ii) by striking ``(a)(3)'' in paragraph (2) 
                      and inserting ``(a)(2)''.
            (95) Credit for state death taxes.--
                    (A)(i) <<NOTE: 26 USC prec. 2010.>>  Part II of 
                subchapter A of chapter 11 is amended by striking 
                section 2011 (and by striking the item relating to such 
                section in the table of sections for such subpart).
                    (ii) Section 2106(a)(4) is amended by striking 
                ``section 2011(a)'' and inserting ``2058(a)''.
                    (B)(i) <<NOTE: 26 USC prec. 2601.>>  Subchapter A of 
                chapter 13 is amended by striking section 2604 (and by 
                striking the item relating to such section in the table 
                of sections for such subpart).
                    (ii) Clause (ii) of section 164(b)(4)(A) is amended 
                by inserting ``(as in effect before its repeal)'' after 
                ``section 2604''.
                    (iii) Section 2654(a)(1) is amended by striking 
                ``(computed without regard to section 2604)''.
            (96) Gross estate.--Subsection (c) of section 2031 is 
        amended by striking paragraph (3) and by amending paragraph 
        (1)(B) to read as follows:
                    ``(II) $500,000.''.
            (97)(A) <<NOTE: 26 USC prec. 2051.>>  Part IV of subchapter 
        A of chapter 11 is amended by striking section 2057 (and by 
        striking the item relating to such section in the table of 
        sections for such subpart).
            (B) Paragraph (10) of section 2031(c) is amended by 
        inserting ``(as in effect before its repeal)'' immediately 
        before the period at the end thereof.
            (98) Property within the united states.--Subsection (c) of 
        section 2104 is amended by striking ``With respect to estates of 
        decedents dying after December 31, 1969, deposits'' and 
        inserting ``Deposits''.
            (99) FICA taxes.--
                    (A) Subsection (a) of section 3101 is amended by 
                striking ``the following percentages'' and all that 
                follows and inserting ``6.2 percent of the wages (as 
                defined in section 3121(a)) received by the individual 
                with respect to employment (as defined in section 
                3121(b))''.
                    (B)(i) Subsection (a) of section 3111 is amended by 
                striking ``the following percentages'' and all that 
                follows and inserting ``6.2 percent of the wages (as 
                defined in section 3121(a)) paid by the employer with 
                respect to employment (as defined in section 
                3121(b)).''.
                    (ii) Subsection (b) of section 3111 is amended by 
                striking ``the following percentages'' and all that 
                follows and inserting ``1.45 percent of the wages (as 
                defined in section 3121(a)) paid by the employer with 
                respect to employment (as defined in section 
                3121(b)).''.

[[Page 128 STAT. 4052]]

                    (C)(i) Section 3121(b) <<NOTE: 26 USC 3121.>>  is 
                amended by striking paragraph (17).
                    (ii) Section 210(a) of the Social Security 
                Act <<NOTE: 42 USC 410.>>  is amended by striking 
                paragraph (17).
            (100) Railroad retirement.--
                    (A) Subsection (b) of section 3201 is amended to 
                read as follows:

    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby 
imposed on the income of each employee a tax equal to the percentage 
determined under section 3241 for any calendar year of the compensation 
received during such calendar year by such employee for services 
rendered by such employee.''.
                    (B) Subsection (b) of section 3211 is amended to 
                read as follows:

    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby 
imposed on the income of each employee representative a tax equal to the 
percentage determined under section 3241 for any calendar year of the 
compensation received during such calendar year by such employee 
representative for services rendered by such employee representative.''.
                    (C) Subsection (b) of section 3221 is amended to 
                read as follows:

    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby 
imposed on every employer an excise tax, with respect to having 
individuals in his employ, equal to the percentage determined under 
section 3241 for any calendar year of the compensation paid during such 
calendar year by such employer for services rendered to such 
employer.''.
                    (D) Subsection (b) of section 3231 is amended--
                          (i) by striking ``compensation; except'' and 
                      all that follows in the first sentence and 
                      inserting ``compensation.'', and
                          (ii) by striking the second sentence.
            (101) Credits against federal unemployment tax.--
                    (A) Paragraph (4) of section 3302(f) is amended--
                          (i) by striking ``subsection--'' and all that 
                      follows through ``(A) In general.--The'' and 
                      inserting ``subsection, the'',
                          (ii) by striking subparagraph (B),
                          (iii) by redesignating clauses (i) and (ii) as 
                      subparagraphs (A) and (B), respectively, and
                          (iv) by moving the text of such subparagraphs 
                      (as so redesignated) 2 ems to the left.
                    (B) Paragraph (5) of section 3302(f) is amended by 
                striking subparagraph (D) and by redesignating 
                subparagraph (E) as subparagraph (D).
            (102) Domestic service employment taxes.--Section 3510(b) is 
        amended by striking paragraph (4).
            (103) Luxury passenger automobiles.--
                    (A) <<NOTE: 26 USC prec. 4001, 4001-4003.>>  Chapter 
                31 is amended by striking subchapter A (and by striking 
                the item relating to such subchapter in the table of 
                subchapters for such chapter).
                    (B)(i) Section 4221 is amended--
                          (I) in subsections (a) and (d)(1), by striking 
                      ``subchapter A or'' and inserting ``subchapter'',

[[Page 128 STAT. 4053]]

                          (II) in subsection (a), by striking ``In the 
                      case of taxes imposed by subchapter A of chapter 
                      31, paragraphs (1), (3), (4), and (5) shall not 
                      apply.'', and
                          (III) in subsection (c), by striking 
                      ``4001(c), 4001(d), or''.
                    (ii) Section 4222 <<NOTE: 26 USC 4222.>>  is amended 
                by striking ``4001(c), 4001(d),''.
                    (iii) Section 4293 is amended by striking 
                ``subchapter A of chapter 31,''.
            (104) Transportation by air.--Section 4261(e) is amended--
                    (A) in paragraph (1), by striking subparagraph (C), 
                and
                    (B) by striking paragraph (5).
            (105) Taxes on failure to distribute income.--
                    (A) Subsection (g) of section 4942 is amended by 
                striking ``For all taxable years beginning on or after 
                January 1, 1975, subject'' in paragraph (2)(A) and 
                inserting ``Subject''.
                    (B) Section 4942(i)(2) is amended by striking 
                ``beginning after December 31, 1969, and''.
            (106) Taxes on taxable expenditures.--Section 4945(f) is 
        amended by striking ``(excluding therefrom any preceding taxable 
        year which begins before January 1, 1970)''.
            (107) Definitions and special rules.--Section 4682(h) is 
        amended--
                    (A) by striking paragraph (1) and redesignating 
                paragraphs (2), (3), and (4) as paragraphs (1), (2), and 
                (3), respectively, and
                    (B) in paragraph (1) (as so redesignated)--
                          (i) by striking the heading and inserting ``In 
                      general'', and
                          (ii) by striking ``after 1991'' in 
                      subparagraph (C).
            (108) Returns.--Subsection (a) of section 6039D is amended 
        by striking ``beginning after December 31, 1984,''.
            (109) Information returns.--Subsection (c) of section 6060 
        is amended by striking `` `year' '' and all that follows and 
        inserting ``year.''.
            (110) Collection.--Section 6302 is amended--
                    (A) in subsection (e)(2), by striking ``imposed by'' 
                and all that follows through ``with respect to'' and 
                inserting ``imposed by sections 4251, 4261, or 4271 with 
                respect to'',
                    (B) by striking the last sentence of subsection 
                (f)(1), and
                    (C) in subsection (h)--
                          (i) by striking paragraph (2) and 
                      redesignating paragraphs (3) and (4) as paragraphs 
                      (2) and (3), respectively, and
                          (ii) by amending paragraph (3) (as so 
                      redesignated) to read as follows:
            ``(3) Coordination with other electronic fund transfer 
        requirements.--Under regulations, any tax required to be paid by 
        electronic fund transfer under section 5061(e) or 5703(b) shall 
        be paid in such a manner as to ensure that the requirements of 
        the second sentence of paragraph (1)(A) of this subsection are 
        satisfied.''.

[[Page 128 STAT. 4054]]

            (111) Abatements.--Section 6404(f) <<NOTE: 26 USC 6404.>>  
        is amended by striking paragraph (3).
            (112) 2008 recovery rebate for individuals.--
                    (A) <<NOTE: 26 USC prec. 6428, prec. 6411.>>  
                Subchapter B of chapter 65 is amended by striking 
                section 6428 (and by striking the item relating to such 
                section in the table of sections for such subchapter).
                    (B) Subparagraph (A) of section 6211(b)(4) is 
                amended by striking ``6428,''.
                    (C) Paragraph (2) of section 6213(g), as amended by 
                section 214(a)(2) of this Act and paragraphs (4) and 
                (5)(C) of this subsection, is amended by striking 
                subparagraph (Q), by redesignating subparagraph (O) as 
                subparagraph (N), by inserting ``and'' at the end of 
                subparagraph (M), and by striking the comma at the end 
                of subparagraph (N) (as so redesignated) and inserting a 
                period.
                    (D) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by striking ``6428, or 
                6431,'' and inserting ``or 6431''.
            (113) <<NOTE: 26 USC prec. 6411.>>  Advance payment of 
        portion of increased child credit for 2003.--Subchapter B of 
        chapter 65 is amended by striking section 6429 (and by striking 
        the item relating to such section in the table of sections for 
        such subchapter).
            (114) Failure by corporation to pay estimated income tax.--
        Clause (i) of section 6655(g)(4)(A) is amended by striking ``(or 
        the corresponding provisions of prior law)''.
            (115) Retirement.--Section 7447(i)(3)(B)(ii) is amended by 
        striking ``at 4 percent per annum to December 31, 1947, and 3 
        percent per annum thereafter'', and inserting ``at 3 percent per 
        annum''.
            (116) Annuities to surviving spouses and dependent children 
        of judges.--
                    (A) Paragraph (2) of section 7448(a) is amended--
                          (i) by striking ``or under section 1106 of the 
                      Internal Revenue Code of 1939'', and
                          (ii) by striking ``or pursuant to section 
                      1106(d) of the Internal Revenue Code of 1939''.
                    (B) Subsection (g) of section 7448 is amended by 
                striking ``or other than pursuant to section 1106 of the 
                Internal Revenue Code of 1939''.
                    (C) Subsections (g), (j)(1), and (j)(2) of section 
                7448 are each amended by striking ``at 4 percent per 
                annum to December 31, 1947, and 3 percent per annum 
                thereafter'' and inserting ``at 3 percent per annum''.
            (117) Merchant marine capital construction funds.--Paragraph 
        (4) of section 7518(g) is amended by striking ``any nonqualified 
        withdrawal'' and all that follows through `` `shall be 
        determined'' and inserting ``any nonqualified withdrawal shall 
        be determined''.
            (118) Valuation tables.--
                    (A) Subsection (c) of section 7520 is amended by 
                striking paragraph (2) and redesignating paragraph (3) 
                as paragraph (2).
                    (B) Paragraph (2) of section 7520(c) (as 
                redesignated by subparagraph (A)) is amended--
                          (i) by striking ``Not later than December 31, 
                      1989, the'' and inserting ``The'', and

[[Page 128 STAT. 4055]]

                          (ii) by striking ``thereafter'' in the last 
                      sentence thereof.
            (119) Definition of employee.--Section <<NOTE: 26 USC 
        7701.>>  7701(a)(20) is amended by striking ``chapter 21'' and 
        all that follows and inserting ``chapter 21.''.

    (b) <<NOTE: 26 USC 1 note.>>  Effective Date.--
            (1) General rule.--Except as otherwise provided in 
        subsection (a) or paragraph (2) of this subsection, the 
        amendments made by this section shall take effect on the date of 
        enactment of this Act.
            (2) Savings provision.--If--
                    (A) any provision amended or repealed by the 
                amendments made by this section applied to--
                          (i) any transaction occurring before the date 
                      of the enactment of this Act,
                          (ii) any property acquired before such date of 
                      enactment, or
                          (iii) any item of income, loss, deduction, or 
                      credit taken into account before such date of 
                      enactment, and
                    (B) the treatment of such transaction, property, or 
                item under such provision would (without regard to the 
                amendments or repeals made by this section) affect the 
                liability for tax for periods ending after date of 
                enactment, nothing in the amendments or repeals made by 
                this section shall be construed to affect the treatment 
                of such transaction, property, or item for purposes of 
                determining liability for tax for periods ending after 
                such date of enactment.

                 TITLE III--JOINT COMMITTEE ON TAXATION

SEC. 301. INCREASED REFUND AND CREDIT THRESHOLD FOR JOINT 
                        COMMITTEE ON TAXATION REVIEW OF C 
                        CORPORATION RETURN.

    (a) In General.--Subsections (a) and (b) of section 6405 are each 
amended by inserting ``($5,000,000 in the case of a C corporation)'' 
after ``$2,000,000''.
    (b) <<NOTE: 26 USC 6405 note.>>  Effective Date.--The amendment made 
by this section shall take effect on the date of the enactment of this 
Act, except that such amendment shall not apply with respect to any 
refund or credit with respect to a report that has been made before such 
date under section 6405 of the Internal Revenue Code of 1986.

                       TITLE IV--BUDGETARY EFFECTS

SEC. 401. BUDGETARY EFFECTS.

    (a) Paygo Scorecard.--The budgetary effects of this Act shall not be 
entered on either PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010.
    (b) Senate Paygo Scorecard.--The budgetary effects of this Act shall 
not be entered on any PAYGO scorecard maintained for purposes of section 
201 of S. Con. Res. 21 (110th Congress).

[[Page 128 STAT. 4056]]

    DIVISION B-- <<NOTE: Stephen Beck, Jr., Achieving a Better Life 
Experience Act of 2014.>> ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014
SEC. 1. SHORT TITLE; ETC.

    (a) <<NOTE: 26 USC 1 note.>>  Short Title.--This division may be 
cited as the ``Stephen Beck, Jr., Achieving a Better Life Experience Act 
of 2014'' or the ``Stephen Beck, Jr., ABLE Act of 2014''.

    (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--QUALIFIED ABLE PROGRAMS

SEC. 101. <<NOTE: 26 USC 529A note.>>  PURPOSES.

    The purposes of this title are as follows:
            (1) To encourage and assist individuals and families in 
        saving private funds for the purpose of supporting individuals 
        with disabilities to maintain health, independence, and quality 
        of life.
            (2) To provide secure funding for disability-related 
        expenses on behalf of designated beneficiaries with disabilities 
        that will supplement, but not supplant, benefits provided 
        through private insurance, the Medicaid program under title XIX 
        of the Social Security Act, the supplemental security income 
        program under title XVI of such Act, the beneficiary's 
        employment, and other sources.
SEC. 102. QUALIFIED ABLE PROGRAMS.

    (a) In General.--Subchapter F of chapter 1 is amended by inserting 
after section 529 the following new section:
``SEC. 529A. <<NOTE: 26 USC 529A.>>  QUALIFIED ABLE PROGRAMS.

    ``(a) General Rule.--A qualified ABLE program shall be exempt from 
taxation under this subtitle. Notwithstanding the preceding sentence, 
such program shall be subject to the taxes imposed by section 511 
(relating to imposition of tax on unrelated business income of 
charitable organizations).
    ``(b) Qualified ABLE Program.--For purposes of this section--
            ``(1) <<NOTE: Definition.>>  In general.--The term 
        `qualified ABLE program' means a program established and 
        maintained by a State, or agency or instrumentality thereof--
                    ``(A) under which a person may make contributions 
                for a taxable year, for the benefit of an individual who 
                is an eligible individual for such taxable year, to an 
                ABLE account which is established for the purpose of 
                meeting the qualified disability expenses of the 
                designated beneficiary of the account,
                    ``(B) which limits a designated beneficiary to 1 
                ABLE account for purposes of this section,
                    ``(C) which allows for the establishment of an ABLE 
                account only for a designated beneficiary who is a 
                resident of such State or a resident of a contracting 
                State, and

[[Page 128 STAT. 4057]]

                    ``(D) which meets the other requirements of this 
                section.
            ``(2) Cash contributions.--A program shall not be treated as 
        a qualified ABLE program unless it provides that no contribution 
        will be accepted--
                    ``(A) unless it is in cash, or
                    ``(B) except in the case of contributions under 
                subsection (c)(1)(C), if such contribution to an ABLE 
                account would result in aggregate contributions from all 
                contributors to the ABLE account for the taxable year 
                exceeding the amount in effect under section 2503(b) for 
                the calendar year in which the taxable year begins.
        For <<NOTE: Applicability.>>  purposes of this paragraph, rules 
        similar to the rules of section 408(d)(4) (determined without 
        regard to subparagraph (B) thereof) shall apply.
            ``(3) Separate accounting.--A program shall not be treated 
        as a qualified ABLE program unless it provides separate 
        accounting for each designated beneficiary.
            ``(4) Limited investment direction.--A program shall not be 
        treated as a qualified ABLE program unless it provides that any 
        designated beneficiary under such program may, directly or 
        indirectly, direct the investment of any contributions to the 
        program (or any earnings thereon) no more than 2 times in any 
        calendar year.
            ``(5) No pledging of interest as security.--A program shall 
        not be treated as a qualified ABLE program if it allows any 
        interest in the program or any portion thereof to be used as 
        security for a loan.
            ``(6) Prohibition on excess contributions.--A program shall 
        not be treated as a qualified ABLE program unless it provides 
        adequate safeguards to prevent aggregate contributions on behalf 
        of a designated beneficiary in excess of the limit established 
        by the State under section 529(b)(6). For purposes of the 
        preceding sentence, aggregate contributions include 
        contributions under any prior qualified ABLE program of any 
        State or agency or instrumentality thereof.

    ``(c) Tax Treatment.--
            ``(1) Distributions.--
                    ``(A) In general.--Any distribution under a 
                qualified ABLE program shall be includible in the gross 
                income of the distributee in the manner as provided 
                under section 72 to the extent not excluded from gross 
                income under any other provision of this chapter.
                    ``(B) Distributions for qualified disability 
                expenses.--For purposes of this paragraph, if 
                distributions from a qualified ABLE program--
                          ``(i) do not exceed the qualified disability 
                      expenses of the designated beneficiary, no amount 
                      shall be includible in gross income, and
                          ``(ii) in any other case, the amount otherwise 
                      includible in gross income shall be reduced by an 
                      amount which bears the same ratio to such amount 
                      as such expenses bear to such distributions.
                    ``(C) Change in designated beneficiaries or 
                programs.--

[[Page 128 STAT. 4058]]

                          ``(i) Rollovers from able accounts.--
                      Subparagraph (A) shall not apply to any amount 
                      paid or distributed from an ABLE account to the 
                      extent that the amount received is paid, not later 
                      than the 60th day after the date of such payment 
                      or distribution, into another ABLE account for the 
                      benefit of the same designated beneficiary or an 
                      eligible individual who is a family member of the 
                      designated beneficiary.
                          ``(ii) Change in designated beneficiaries.--
                      Any change in the designated beneficiary of an 
                      interest in a qualified ABLE program during a 
                      taxable year shall not be treated as a 
                      distribution for purposes of subparagraph (A) if 
                      the new beneficiary is an eligible individual for 
                      such taxable year and a member of the family of 
                      the former beneficiary.
                          ``(iii) <<NOTE: Deadline.>>  Limitation on 
                      certain rollovers.--Clause (i) shall not apply to 
                      any transfer if such transfer occurs within 12 
                      months from the date of a previous transfer to any 
                      qualified ABLE program for the benefit of the 
                      designated beneficiary.
                    ``(D) Operating rules.--For purposes of applying 
                section 72--
                          ``(i) except to the extent provided by the 
                      Secretary, all distributions during a taxable year 
                      shall be treated as one distribution, and
                          ``(ii) except to the extent provided by the 
                      Secretary, the value of the contract, income on 
                      the contract, and investment in the contract shall 
                      be computed as of the close of the calendar year 
                      in which the taxable year begins.
            ``(2) Gift tax rules.--For purposes of chapters 12 and 13--
                    ``(A) Contributions.--Any contribution to a 
                qualified ABLE program on behalf of any designated 
                beneficiary--
                          ``(i) shall be treated as a completed gift to 
                      such designated beneficiary which is not a future 
                      interest in property, and
                          ``(ii) shall not be treated as a qualified 
                      transfer under section 2503(e).
                    ``(B) Treatment of distributions.--In no event shall 
                a distribution from an ABLE account to such account's 
                designated beneficiary be treated as a taxable gift.
                    ``(C) Treatment of transfer to new designated 
                beneficiary.--The taxes imposed by chapters 12 and 13 
                shall not apply to a transfer by reason of a change in 
                the designated beneficiary under subsection (c)(1)(C).
            ``(3) Additional tax for distributions not used for 
        disability expenses.--
                    ``(A) In general.--The tax imposed by this chapter 
                for any taxable year on any taxpayer who receives a 
                distribution from a qualified ABLE program which is 
                includible in gross income shall be increased by 10 
                percent of the amount which is so includible.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the payment or distribution is made to a beneficiary 
                (or to the estate of the designated beneficiary) on or 
                after the death of the designated beneficiary.

[[Page 128 STAT. 4059]]

                    ``(C) Contributions returned before certain date.--
                Subparagraph (A) shall not apply to the distribution of 
                any contribution made during a taxable year on behalf of 
                the designated beneficiary if--
                          ``(i) such distribution is received on or 
                      before the day prescribed by law (including 
                      extensions of time) for filing such designated 
                      beneficiary's return for such taxable year, and
                          ``(ii) such distribution is accompanied by the 
                      amount of net income attributable to such excess 
                      contribution.
                Any net income described in clause (ii) shall be 
                included in gross income for the taxable year in which 
                such excess contribution was made.
            ``(4) Loss of able account treatment.--If an ABLE account is 
        established for a designated beneficiary, no account 
        subsequently established for such beneficiary shall be treated 
        as an ABLE account. The preceding sentence shall not apply in 
        the case of an account established for purposes of a rollover 
        described in paragraph (1)(C)(i) of this section if the 
        transferor account is closed as of the end of the 60th day 
        referred to in paragraph (1)(C)(i).

    ``(d) Reports.--
            ``(1) In general.--Each officer or employee having control 
        of the qualified ABLE program or their designee shall make such 
        reports regarding such program to the Secretary and to 
        designated beneficiaries with respect to contributions, 
        distributions, the return of excess contributions, and such 
        other matters as the Secretary may require.
            ``(2) <<NOTE: Public information.>>  Certain aggregated 
        information.--For research purposes, the Secretary shall make 
        available to the public reports containing aggregate 
        information, by diagnosis and other relevant characteristics, on 
        contributions and distributions from the qualified ABLE program. 
        In carrying out the preceding sentence an item may not be made 
        available to the public if such item can be associated with, or 
        otherwise identify, directly or indirectly, a particular 
        individual.
            ``(3) Notice of establishment of able account.--A qualified 
        ABLE program shall submit a notice to the Secretary upon the 
        establishment of an ABLE account. Such notice shall contain the 
        name and State of residence of the designated beneficiary and 
        such other information as the Secretary may require.
            ``(4) Electronic distribution statements.--For purposes of 
        section 4 of the Achieving a Better Life Experience Act of 2014, 
        States shall submit electronically on a monthly basis to the 
        Commissioner of Social Security, in the manner specified by the 
        Commissioner, statements on relevant distributions and account 
        balances from all ABLE accounts.
            ``(5) Requirements.--The reports and notices required by 
        paragraphs (1), (2), and (3) shall be filed at such time and in 
        such manner and furnished to such individuals at such time and 
        in such manner as may be required by the Secretary.

    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--An individual is an eligible 
        individual for a taxable year if during such taxable year--

[[Page 128 STAT. 4060]]

                    ``(A) the individual is entitled to benefits based 
                on blindness or disability under title II or XVI of the 
                Social Security Act, and such blindness or disability 
                occurred before the date on which the individual 
                attained age 26, or
                    ``(B) a disability certification with respect to 
                such individual is filed with the Secretary for such 
                taxable year.
            ``(2) Disability certification.--
                    ``(A) In general.--The term `disability 
                certification' means, with respect to an individual, a 
                certification to the satisfaction of the Secretary by 
                the individual or the parent or guardian of the 
                individual that--
                          ``(i) certifies that--
                                    ``(I) the individual has a medically 
                                determinable physical or mental 
                                impairment, which results in marked and 
                                severe functional limitations, and which 
                                can be expected to result in death or 
                                which has lasted or can be expected to 
                                last for a continuous period of not less 
                                than 12 months, or is blind (within the 
                                meaning of section 1614(a)(2) of the 
                                Social Security Act), and
                                    ``(II) such blindness or disability 
                                occurred before the date on which the 
                                individual attained age 26, and
                          ``(ii) includes a copy of the individual's 
                      diagnosis relating to the individual's relevant 
                      impairment or impairments, signed by a physician 
                      meeting the criteria of section 1861(r)(1) of the 
                      Social Security Act.
                    ``(B) Restriction on use of certification.--No 
                inference may be drawn from a disability certification 
                for purposes of establishing eligibility for benefits 
                under title II, XVI, or XIX of the Social Security Act.
            ``(3) Designated beneficiary.--The term `designated 
        beneficiary' in connection with an ABLE account established 
        under a qualified ABLE program means the eligible individual who 
        established an ABLE account and is the owner of such account.
            ``(4) Member of family.--The term `member of the family' 
        means, with respect to any designated beneficiary, an individual 
        who bears a relationship to such beneficiary which is described 
        in subparagraph section 152(d)(2)(B). For purposes of the 
        preceding sentence, a rule similar to the rule of section 
        152(f)(1)(B) shall apply.
            ``(5) Qualified disability expenses.--The term `qualified 
        disability expenses' means any expenses related to the eligible 
        individual's blindness or disability which are made for the 
        benefit of an eligible individual who is the designated 
        beneficiary, including the following expenses: education, 
        housing, transportation, employment training and support, 
        assistive technology and personal support services, health, 
        prevention and wellness, financial management and administrative 
        services, legal fees, expenses for oversight and monitoring, 
        funeral and burial expenses, and other expenses, which are 
        approved by the Secretary under regulations and consistent with 
        the purposes of this section.
            ``(6) ABLE account.--The term `ABLE account' means an 
        account established by an eligible individual, owned by such

[[Page 128 STAT. 4061]]

        eligible individual, and maintained under a qualified ABLE 
        program.
            ``(7) Contracting state.--The term `contracting State' means 
        a State without a qualified ABLE program which has entered into 
        a contract with a State with a qualified ABLE program to provide 
        residents of the contracting State access to a qualified ABLE 
        program.

    ``(f) Transfer to State.--Subject to any outstanding payments due 
for qualified disability expenses, upon the death of the designated 
beneficiary, all amounts remaining in the qualified ABLE account not in 
excess of the amount equal to the total medical assistance paid for the 
designated beneficiary after the establishment of the account, net of 
any premiums paid from the account or paid by or on behalf of the 
beneficiary to a Medicaid Buy-In program under any State Medicaid plan 
established under title XIX of the Social Security Act, shall be 
distributed to such State upon filing of a claim for payment by such 
State. For purposes of this paragraph, the State shall be a creditor of 
an ABLE account and not a beneficiary. Subsection (c)(3) shall not apply 
to a distribution under the preceding sentence.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as the Secretary determines necessary or appropriate 
to carry out the purposes of this section, including regulations--
            ``(1) to enforce the 1 ABLE account per eligible individual 
        limit,
            ``(2) providing for the information required to be presented 
        to open an ABLE account,
            ``(3) to generally define qualified disability expenses,
            ``(4) developed in consultation with the Commissioner of 
        Social Security, relating to disability certifications and 
        determinations of disability, including those conditions deemed 
        to meet the requirements of subsection (e)(1)(B),
            ``(5) to prevent fraud and abuse with respect to amounts 
        claimed as qualified disability expenses,
            ``(6) under chapters 11, 12, and 13 of this title, and
            ``(7) to allow for transfers from one ABLE account to 
        another ABLE account.''.

    (b) Tax on Excess Contributions.--
            (1) In general.--Subsection (a) of section 4973 <<NOTE: 26 
        USC 4973.>>  (relating to tax on excess contributions to certain 
        tax-favored accounts and annuities) is amended by striking 
        ``or'' at the end of paragraph (4), by inserting ``or'' at the 
        end of paragraph (5), and by inserting after paragraph (5) the 
        following new paragraph:
            ``(6) an ABLE account (within the meaning of section 
        529A),''.
            (2) Excess contribution.--Section 4973 is amended by adding 
        at the end the following new subsection:

    ``(h) Excess Contributions to ABLE Account.--For purposes of this 
section--
            ``(1) In general.--In the case of an ABLE account (within 
        the meaning of section 529A), the term `excess contributions' 
        means the amount by which the amount contributed for the taxable 
        year to such account (other than contributions under section 
        529A(c)(1)(C)) exceeds the contribution limit under section 
        529A(b)(2)(B).

[[Page 128 STAT. 4062]]

            ``(2) <<NOTE: Applicability.>>  Special rule.--For purposes 
        of this subsection, any contribution which is distributed out of 
        the ABLE account in a distribution to which the last sentence of 
        section 529A(b)(2) applies shall be treated as an amount not 
        contributed.''.

    (c) <<NOTE: 26 USC 6693.>>  Penalty for Failure to File Reports.--
Section 6693(a)(2) is amended by striking ``and'' at the end of 
subparagraph (D), by redesignating subparagraph (E) as subparagraph (F), 
and by inserting after subparagraph (D) the following:
                    ``(E) section 529A(d) (relating to qualified ABLE 
                programs), and''.

    (d) Records.--Section 552a(a)(8)(B) of title 5, United States Code, 
is amended--
            (1) in clause (viii), by striking ``or'' at the end;
            (2) in clause (ix), by adding ``or'' at the end; and
            (3) by adding at the end the following new clause:
                          ``(x) matches performed pursuant to section 
                      3(d)(4) of the Achieving a Better Life Experience 
                      Act of 2014;''.

    (e) Other Conforming Amendments.--
            (1) Section 26(b)(2) is amended by striking ``and'' at the 
        end of subparagraph (W), by striking the period at the end of 
        subparagraph (X) and inserting ``, and'', and by inserting after 
        subparagraph (X) the following:
                    ``(Y) section 529A(c)(3)(A) (relating to additional 
                tax on ABLE account distributions not used for qualified 
                disability expenses).''.
            (2) Section 877A is amended--
                    (A) in subsection (e)(2) by inserting ``a qualified 
                ABLE program (as defined in section 529A),'' after 
                ``529),'', and
                    (B) in subsection (g)(6) by inserting 
                ``529A(c)(3),'' after ``529(c)(6),''.
            (3) Section 4965(c) is amended by striking ``or'' at the end 
        of paragraph (6), by striking the period at the end of paragraph 
        (7) and inserting ``, or'', and by inserting after paragraph (7) 
        the following new paragraph:
            ``(8) a program described in section 529A.''.
            (4) <<NOTE: 26 USC prec. 529.>>  The heading for part VIII 
        of subchapter F of chapter 1 is amended by striking ``higher 
        education'' and inserting ``certain''.
            (5) The item in the table of parts for subchapter F of 
        chapter 1 relating to part VIII <<NOTE: 26 USC prec. 501.>>  is 
        amended to read as follows:

                ``Part VIII. Certain Savings Entities.''.

            (6) The table of sections for part VIII of subchapter F of 
        chapter 1 <<NOTE: 26 USC prec. 529.>>  is amended by inserting 
        after the item relating to section 529 the following new item:

``Sec. 529A. Qualified ABLE programs.''.

            (7) Paragraph (4) of section 1027(g) of the Consumer 
        Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is 
        amended by inserting ``, 529A'' after ``529''.

    (f) <<NOTE: 5 USC 552a note.>>  Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2014.
            (2) <<NOTE: 26 USC 529A note.>>  Regulations.--The Secretary 
        of the Treasury (or the Secretary's designee) shall promulgate 
        the regulations or other

[[Page 128 STAT. 4063]]

        guidance required under section 529A(g) of the Internal Revenue 
        Code of 1986, as added by subsection (a), not later than 6 
        months after the date of the enactment of this Act.
SEC. 103. <<NOTE: 26 USC 529A note.>>  TREATMENT OF ABLE ACCOUNTS 
                        UNDER CERTAIN FEDERAL PROGRAMS.

    (a) Account Funds Disregarded for Purposes of Certain Other Means-
Tested Federal Programs.--Notwithstanding any other provision of Federal 
law that requires consideration of 1 or more financial circumstances of 
an individual, for the purpose of determining eligibility to receive, or 
the amount of, any assistance or benefit authorized by such provision to 
be provided to or for the benefit of such individual, any amount 
(including earnings thereon) in the ABLE account (within the meaning of 
section 529A of the Internal Revenue Code of 1986) of such individual, 
any contributions to the ABLE account of the individual, and any 
distribution for qualified disability expenses (as defined in subsection 
(e)(5) of such section) shall be disregarded for such purpose with 
respect to any period during which such individual maintains, makes 
contributions to, or receives distributions from such ABLE account, 
except that, in the case of the supplemental security income program 
under title XVI of the Social Security Act--
            (1) a distribution for housing expenses (within the meaning 
        of such subsection) shall not be so disregarded, and
            (2) in the case of such program, any amount (including such 
        earnings) in such ABLE account shall be considered a resource of 
        the designated beneficiary to the extent that such amount 
        exceeds $100,000.

    (b) Suspension of SSI Benefits During Periods of Excessive Account 
Funds.--
            (1) In general.--The benefits of an individual under the 
        supplemental security income program under title XVI of the 
        Social Security Act shall not be terminated, but shall be 
        suspended, by reason of excess resources of the individual 
        attributable to an amount in the ABLE account (within the 
        meaning of section 529A of the Internal Revenue Code of 1986) of 
        the individual not disregarded under subsection (a) of this 
        section.
            (2) No impact on medicaid eligibility.--An individual who 
        would be receiving payment of such supplemental security income 
        benefits but for the application of paragraph (1) shall be 
        treated for purposes of title XIX of the Social Security Act as 
        if the individual continued to be receiving payment of such 
        benefits.

    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.
SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.

    (a) Exclusion From Property of the Estate.--Section 541(b) of the 
title 11, United States Code, is amended--
            (1) in paragraph (8), by striking ``or'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting a semicolon and ``or''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) <<NOTE: Deadline.>>  funds placed in an account of a 
        qualified ABLE program (as defined in section 529A(b) of the 
        Internal Revenue Code of 1986) not later than 365 days before 
        the date of the filing of the petition in a case under this 
        title, but--

[[Page 128 STAT. 4064]]

                    ``(A) only if the designated beneficiary of such 
                account was a child, stepchild, grandchild, or 
                stepgrandchild of the debtor for the taxable year for 
                which funds were placed in such account;
                    ``(B) only to the extent that such funds--
                          ``(i) are not pledged or promised to any 
                      entity in connection with any extension of credit; 
                      and
                          ``(ii) are not excess contributions (as 
                      described in section 4973(h) of the Internal 
                      Revenue Code of 1986); and
                    ``(C) <<NOTE: Deadlines.>>  in the case of funds 
                placed in all such accounts having the same designated 
                beneficiary not earlier than 720 days nor later than 365 
                days before such date, only so much of such funds as 
                does not exceed $6,225.''.

    (b) Debtor's Monthly Expenses.--Section 707(b)(2)(A)(ii)(II) of 
title 11, United States Code, is amended by adding at the end ``Such 
monthly expenses may include, if applicable, contributions to an account 
of a qualified ABLE program to the extent such contributions are not 
excess contributions (as described in section 4973(h) of the Internal 
Revenue Code of 1986) and if the designated beneficiary of such account 
is a child, stepchild, grandchild, or stepgrandchild of the debtor.''.
    (c) Record of Debtor's Interest.--Section 521(c) of title 11, United 
States Code, is amended by inserting ``, an interest in an account in a 
qualified ABLE program (as defined in section 529A(b) of such Code,'' 
after ``Internal Revenue Code of 1986)''.
    (d) <<NOTE: 11 USC 521 note.>>  Effective Date.--The amendments made 
by this section shall apply with respect to cases commenced under title 
11, United States Code, on or after the date of the enactment of this 
Act.
SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.

    (a) Amendments Relating to Investment Direction Rule for 529 
Plans.--
            (1) Paragraph (4) of section 529(b) <<NOTE: 26 USC 529.>>  
        is amended by striking ``may not directly or indirectly'' and 
        all that follows and inserting ``may, directly or indirectly, 
        direct the investment of any contributions to the program (or 
        any earnings thereon) no more than 2 times in any calendar 
        year.''.
            (2) The heading of paragraph (4) of section 529(b) is 
        amended by striking ``No'' and inserting ``Limited''.

    (b) <<NOTE: 26 USC 529 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2014.

                            TITLE II--OFFSETS

SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.

    (a) Retirement Age.--Section 224(a) of the Social Security Act (42 
U.S.C. 424a(a)) is amended, in the matter preceding paragraph (1), by 
striking ``the age of 65'' and inserting ``retirement age (as defined in 
section 216(l)(1))''.
    (b) <<NOTE: 26 USC 424a note.>>  Effective Date.--The amendment made 
by subsection (a) shall apply with respect to any individual who attains 
65 years of age on or after the date that is 12 months after the date of 
the enactment of this Act.

[[Page 128 STAT. 4065]]

SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS FOR 
                        MISVALUED SERVICES IN THE MEDICARE 
                        PHYSICIAN FEE SCHEDULE.

    Section 1848(c) of the Social Security Act (42 U.S.C. 1395w-4(c)) is 
amended--
            (1) in subclause (VIII) of paragraph (2)(B)(v), as added by 
        section 220(d)(2) of the Protecting Access to Medicare Act of 
        2014 (Public Law 113-93)--
                    (A) by striking ``2017'' and inserting ``2016''; and
                    (B) by redesignating such subclause as subclause 
                (IX);
            (2) in paragraph (2)(O)--
                    (A) in the matter preceding clause (i), by striking 
                ``2017 through 2020'' and inserting ``2016 through 
                2018'';
                    (B) in clause (iii), by striking ``2017'' and 
                inserting ``2016''; and
                    (C) in clause (v), by inserting ``(or, for 2016, 1.0 
                percent)'' after ``0.5 percent''; and
            (3) in paragraph (7), by striking ``2017'' and inserting 
        ``2016''.
SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN 
                        MEDICARE PARTS B AND D.

     Section 1834(a)(1) of the Social Security Act (42 U.S.C. 
1395m(a)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(I) <<NOTE: Effective date.>>  Treatment of vacuum 
                erection systems.--Effective for items and services 
                furnished on and after July 1, 2015, vacuum erection 
                systems described as prosthetic devices described in 
                section 1861(s)(8) shall be treated in the same manner 
                as erectile dysfunction drugs are treated for purposes 
                of section 1860D-2(e)(2)(A).''.
SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY POLICY 
                        UNDER MEDICARE ESRD PROSPECTIVE PAYMENT 
                        SYSTEM.

    Section 632(b)(1) of the American Taxpayer Relief Act of 2012 (42 
U.S.C. 1395rr note), as amended by section 217(a)(1) of the Protecting 
Access to Medicare Act of 2014 (Public Law 113-93), is amended by 
striking ``2024'' and inserting ``2025''.
SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST FUND 
                        FINANCING RATE.

    (a) <<NOTE: 26 USC 4042.>>  In General.--Section 4042(b)(2)(A) is 
amended to read as follows:
                    ``(A) The Inland Waterways Trust Fund financing rate 
                is 29 cents per gallon.''.

    (b) <<NOTE: 26 USC 4042 note.>>  Effective Date.--The amendment made 
by this section shall apply to fuel used after March 31, 2015.
SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    (a) Employment Taxes.--Chapter 25 is amended by adding at the end 
the following new section:
``SEC. 3511. <<NOTE: 26 USC 3511.>>  CERTIFIED PROFESSIONAL 
                          EMPLOYER ORGANIZATIONS.

    ``(a) General Rules.--For purposes of the taxes, and other 
obligations, imposed by this subtitle--
            ``(1) a certified professional employer organization shall 
        be treated as the employer (and no other person shall be

[[Page 128 STAT. 4066]]

        treated as the employer) of any work site employee performing 
        services for any customer of such organization, but only with 
        respect to remuneration remitted by such organization to such 
        work site employee, and
            ``(2) <<NOTE: Applicability.>>  the exemptions, exclusions, 
        definitions, and other rules which are based on type of employer 
        and which would (but for paragraph (1)) apply shall apply with 
        respect to such taxes imposed on such remuneration.

    ``(b) <<NOTE: Contracts.>>  Successor Employer Status.--For purposes 
of sections 3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
            ``(1) a certified professional employer organization 
        entering into a service contract with a customer with respect to 
        a work site employee shall be treated as a successor employer 
        and the customer shall be treated as a predecessor employer 
        during the term of such service contract, and
            ``(2) a customer whose service contract with a certified 
        professional employer organization is terminated with respect to 
        a work site employee shall be treated as a successor employer 
        and the certified professional employer organization shall be 
        treated as a predecessor employer.

    ``(c) Liability of Certified Professional Employer Organization.--
Solely for purposes of its liability for the taxes and other obligations 
imposed by this subtitle--
            ``(1) a certified professional employer organization shall 
        be treated as the employer of any individual (other than a work 
        site employee or a person described in subsection (f)) who is 
        performing services covered by a contract meeting the 
        requirements of section 7705(e)(2), but only with respect to 
        remuneration remitted by such organization to such individual, 
        and
            ``(2) <<NOTE: Applicability.>>  the exemptions, exclusions, 
        definitions, and other rules which are based on type of employer 
        and which would (but for paragraph (1)) apply shall apply with 
        respect to such taxes imposed on such remuneration.

    ``(d) Treatment of Credits.--
            ``(1) In general.--For purposes of any credit specified in 
        paragraph (2)--
                    ``(A) such credit with respect to a work site 
                employee performing services for the customer applies to 
                the customer, not the certified professional employer 
                organization,
                    ``(B) the customer, and not the certified 
                professional employer organization, shall take into 
                account wages and employment taxes--
                          ``(i) paid by the certified professional 
                      employer organization with respect to the work 
                      site employee, and
                          ``(ii) for which the certified professional 
                      employer organization receives payment from the 
                      customer, and
                    ``(C) the certified professional employer 
                organization shall furnish the customer and the 
                Secretary with any information necessary for the 
                customer to claim such credit.
            ``(2) Credits specified.--A credit is specified in this 
        paragraph if such credit is allowed under--
                    ``(A) section 41 (credit for increasing research 
                activity),
                    ``(B) section 45A (Indian employment credit),
                    ``(C) section 45B (credit for portion of employer 
                social security taxes paid with respect to employee cash 
                tips),

[[Page 128 STAT. 4067]]

                    ``(D) section 45C (clinical testing expenses for 
                certain drugs for rare diseases or conditions),
                    ``(E) section 45R (employee health insurance 
                expenses of small employers),
                    ``(F) section 51 (work opportunity credit),
                    ``(G) section 1396 (empowerment zone employment 
                credit), and
                    ``(H) any other section as provided by the 
                Secretary.

    ``(e) Special Rule for Related Party.--This section shall not apply 
in the case of a customer which bears a relationship to a certified 
professional employer organization described in section 267(b) or 
707(b). <<NOTE: Applicability.>> For purposes of the preceding sentence, 
such sections shall be applied by substituting `10 percent' for `50 
percent'.

    ``(f) Special Rule for Certain Individuals.--For purposes of the 
taxes imposed under this subtitle, an individual with net earnings from 
self-employment derived from the customer's trade or business (including 
a partner in a partnership that is a customer) is not a work site 
employee with respect to remuneration paid by a certified professional 
employer organization.
    ``(g) <<NOTE: Records. Regulations. Procedures.>>  Reporting 
Requirements and Obligations.--The Secretary shall develop such 
reporting and recordkeeping rules, regulations, and procedures as the 
Secretary determines necessary or appropriate to ensure compliance with 
this title by certified professional employer organizations or persons 
that have been so certified. Such rules shall include--
            ``(1) notification of the Secretary in such manner as the 
        Secretary shall prescribe in the case of the commencement or 
        termination of a service contract described in section 
        7705(e)(2) between such a person and a customer, and the 
        employer identification number of such customer,
            ``(2) such information as the Secretary determines necessary 
        for the customer to claim the credits identified in subsection 
        (d) and the manner in which such information is to be provided, 
        as prescribed by the Secretary, and
            ``(3) such other information as the Secretary determines is 
        essential to promote compliance with respect to the credits 
        identified in subsection (d) and section 3302, and

shall be designed in a manner which streamlines, to the extent possible, 
the application of requirements of this section and section 7705, the 
exchange of information between a certified professional employer 
organization and its customers, and the reporting and recordkeeping 
obligations of the certified professional employer organization.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (b) Certified Professional Employer Organization Defined.--Chapter 
79 is amended by adding at the end the following new section:
``SEC. 7705. <<NOTE: 26 USC 7705.>>  CERTIFIED PROFESSIONAL 
                          EMPLOYER ORGANIZATIONS.

    ``(a) <<NOTE: Definition.>>  In General.--For purposes of this 
title, the term `certified professional employer organization' means a 
person who applies to be treated as a certified professional employer 
organization for purposes of section 3511 and has been certified by the 
Secretary as meeting the requirements of subsection (b).

[[Page 128 STAT. 4068]]

    ``(b) Certification Requirements.--A person meets the requirements 
of this subsection if such person--
            ``(1) demonstrates that such person (and any owner, officer, 
        and other persons as may be specified in regulations) meets such 
        requirements as the Secretary shall establish, including 
        requirements with respect to tax status, background, experience, 
        business location, and annual financial audits,
            ``(2) agrees that it will satisfy the bond and independent 
        financial review requirements of subsection (c) on an ongoing 
        basis,
            ``(3) agrees that it will satisfy such reporting obligations 
        as may be imposed by the Secretary,
            ``(4) computes its taxable income using an accrual method of 
        accounting unless the Secretary approves another method,
            ``(5) agrees to verify on such periodic basis as the 
        Secretary may prescribe that it continues to meet the 
        requirements of this subsection, and
            ``(6) <<NOTE: Notification.>>  agrees to notify the 
        Secretary in writing within such time as the Secretary may 
        prescribe of any change that materially affects the continuing 
        accuracy of any agreement or information that was previously 
        made or provided under this subsection.

    ``(c) Bond and Independent Financial Review.--
            ``(1) In general.--An organization meets the requirements of 
        this paragraph if such organization--
                    ``(A) meets the bond requirements of paragraph (2), 
                and
                    ``(B) meets the independent financial review 
                requirements of paragraph (3).
            ``(2) Bond.--
                    ``(A) In general.--A certified professional employer 
                organization meets the requirements of this paragraph if 
                the organization has posted a bond for the payment of 
                taxes under subtitle C (in a form acceptable to the 
                Secretary) that is in an amount at least equal to the 
                amount specified in subparagraph (B).
                    ``(B) Amount of bond.--For the period April 1 of any 
                calendar year through March 31 of the following calendar 
                year, the amount of the bond required is equal to the 
                greater of--
                          ``(i) 5 percent of the organization's 
                      liability under section 3511 for taxes imposed by 
                      subtitle C during the preceding calendar year (but 
                      not to exceed $1,000,000), or
                          ``(ii) $50,000.
            ``(3) Independent financial review requirements.--A 
        certified professional employer organization meets the 
        requirements of this paragraph if such organization--
                    ``(A) has, as of the most recent audit date, caused 
                to be prepared and provided to the Secretary (in such 
                manner as the Secretary may prescribe) an opinion of an 
                independent certified public accountant as to whether 
                the certified professional employer organization's 
                financial statements are presented fairly in accordance 
                with generally accepted accounting principles, and
                    ``(B) provides to the Secretary an assertion 
                regarding Federal employment tax payments and an 
                examination

[[Page 128 STAT. 4069]]

                level attestation on such assertion from an independent 
                certified public accountant not later than the last day 
                of the second month beginning after the end of each 
                calendar quarter.
        Such assertion shall state that the organization has withheld 
        and made deposits of all taxes imposed by chapters 21, 22, and 
        24 in accordance with regulations imposed by the Secretary for 
        such calendar quarter and such examination level attestation 
        shall state that such assertion is fairly stated, in all 
        material respects.
            ``(4) Controlled group rules.--For purposes of the 
        requirements of paragraphs (2) and (3), all certified 
        professional employer organizations that are members of a 
        controlled group within the meaning of sections 414(b) and (c) 
        shall be treated as a single organization.
            ``(5) <<NOTE: Time period.>>  Failure to file assertion and 
        attestation.--If the certified professional employer 
        organization fails to file the assertion and attestation 
        required by paragraph (3) with respect to any calendar quarter, 
        then the requirements of paragraph (3) with respect to such 
        failure shall be treated as not satisfied for the period 
        beginning on the due date for such attestation.
            ``(6) Audit date.--For purposes of paragraph (3)(A), the 
        audit date shall be six months after the completion of the 
        organization's fiscal year.

    ``(d) <<NOTE: Determination.>>  Suspension and Revocation 
Authority.--The Secretary may suspend or revoke a certification of any 
person under subsection (b) for purposes of section 3511 if the 
Secretary determines that such person is not satisfying the agreements 
or requirements of subsections (b) or (c), or fails to satisfy 
applicable accounting, reporting, payment, or deposit requirements.

    ``(e) Work Site Employee.--For purposes of this title--
            ``(1) <<NOTE: Definition.>>  In general.--The term `work 
        site employee' means, with respect to a certified professional 
        employer organization, an individual who--
                    ``(A) performs services for a customer pursuant to a 
                contract which is between such customer and the 
                certified professional employer organization and which 
                meets the requirements of paragraph (2), and
                    ``(B) performs services at a work site meeting the 
                requirements of paragraph (3).
            ``(2) Service contract requirements.--A contract meets the 
        requirements of this paragraph with respect to an individual 
        performing services for a customer if such contract is in 
        writing and provides that the certified professional employer 
        organization shall--
                    ``(A) assume responsibility for payment of wages to 
                such individual, without regard to the receipt or 
                adequacy of payment from the customer for such services,
                    ``(B) assume responsibility for reporting, 
                withholding, and paying any applicable taxes under 
                subtitle C, with respect to such individual's wages, 
                without regard to the receipt or adequacy of payment 
                from the customer for such services,
                    ``(C) assume responsibility for any employee 
                benefits which the service contract may require the 
                certified professional employer organization to provide, 
                without regard

[[Page 128 STAT. 4070]]

                to the receipt or adequacy of payment from the customer 
                for such benefits,
                    ``(D) assume responsibility for recruiting, hiring, 
                and firing workers in addition to the customer's 
                responsibility for recruiting, hiring, and firing 
                workers,
                    ``(E) maintain employee records relating to such 
                individual, and
                    ``(F) agree to be treated as a certified 
                professional employer organization for purposes of 
                section 3511 with respect to such individual.
            ``(3) Work site coverage requirement.--The requirements of 
        this paragraph are met with respect to an individual if at least 
        85 percent of the individuals performing services for the 
        customer at the work site where such individual performs 
        services are subject to 1 or more contracts with the certified 
        professional employer organization which meet the requirements 
        of paragraph (2) (but not taking into account those individuals 
        who are excluded employees within the meaning of section 
        414(q)(5)).

    ``(f) Public Disclosure.--The Secretary shall make available to the 
public the name and address of--
            ``(1) each person certified as a professional employer 
        organization under subsection (a), and
            ``(2) each person whose certification as a professional 
        employer organization is suspended or revoked under subsection 
        (d).

    ``(g) Determination of Employment Status.--Except to the extent 
necessary for purposes of section 3511, nothing in this section shall be 
construed to affect the determination of who is an employee or employer 
for purposes of this title.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (c) Conforming Amendments.--
            (1) Section 3302 <<NOTE: 26 USC 3302.>>  is amended by 
        adding at the end the following new subsection:

    ``(h) Treatment of Certified Professional Employer Organizations.--
If a certified professional employer organization (as defined in section 
7705), or a customer of such organization, makes a contribution to the 
State's unemployment fund with respect to wages paid to a work site 
employee, such certified professional employer organization shall be 
eligible for the credits available under this section with respect to 
such contribution.''.
            (2) Section 3303(a) is amended--
                    (A) by striking the period at the end of paragraph 
                (3) and inserting ``; and'' and by inserting after 
                paragraph (3) the following new paragraph:
            ``(4) if the taxpayer is a certified professional employer 
        organization (as defined in section 7705) that is treated as the 
        employer under section 3511, such certified professional 
        employer organization is permitted to collect and remit, in 
        accordance with paragraphs (1), (2), and (3), contributions 
        during the taxable year to the State unemployment fund with 
        respect to a work site employee.'', and
                    (B) in the last sentence--
                          (i) by striking ``paragraphs (1), (2), and 
                      (3)'' and inserting ``paragraphs (1), (2), (3), 
                      and (4)'', and

[[Page 128 STAT. 4071]]

                          (ii) by striking ``paragraph (1), (2), or 
                      (3)'' and inserting ``paragraph (1), (2), (3), or 
                      (4)''.
            (3) Section 6053(c) <<NOTE: 26 USC 6053.>>  is amended by 
        adding at the end the following new paragraph:
            ``(8) <<NOTE: Deadline.>>  Certified professional employer 
        organizations.--For purposes of any report required by this 
        subsection, in the case of a certified professional employer 
        organization that is treated under section 3511 as the employer 
        of a work site employee, the customer with respect to whom a 
        work site employee performs services shall be the employer for 
        purposes of reporting under this section and the certified 
        professional employer organization shall furnish to the customer 
        and the Secretary any information the Secretary prescribes as 
        necessary to complete such reporting no later than such time as 
        the Secretary shall prescribe.''.
            (4) Section 6652 is amended by adding at the end the 
        following new subsection:

    ``(n) Failure to Make Reports Required Under Sections 3511, 
6053(c)(8), and 7705.--In the case of a failure to make a report 
required under section 3511, 6053(c)(8), or 7705 which contains the 
information required by such section on the date prescribed therefor 
(determined with regard to any extension of time for filing), there 
shall be paid (on notice and demand by the Secretary and in the same 
manner as tax) by the person failing to make such report, an amount 
equal to $50 for each report with respect to which there was such a 
failure. <<NOTE: Applicability.>>  In the case of any failure due to 
negligence or intentional disregard the preceding sentence shall be 
applied by substituting `$100' for `$50'.''.

    (d) Clerical Amendments.--
            (1) The table of sections for chapter 25 <<NOTE: 26 
        USC prec. 3501.>>  is amended by adding at the end the following 
        new item:

``Sec. 3511. Certified professional employer organizations.''.

            (2) The table of sections for chapter 79 <<NOTE: 26 
        USC prec. 7701.>>  is amended by inserting after the item 
        relating to section 7704 the following new item:

``Sec. 7705. Certified professional employer organizations.''.

    (f) User Fees.--Section 7528(b) is amended by adding at the end the 
following new paragraph:
            ``(4) Certified professional employer organizations.--The 
        fee charged under the program in connection with the 
        certification by the Secretary of a professional employer 
        organization under section 7705 shall be an annual fee not to 
        exceed $1,000 per year.''.

    (g) <<NOTE: 26 USC 3302 note.>>  Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to wages for services performed on or after 
        January 1 of the first calendar year beginning more than 12 
        months after the date of the enactment of this Act.
            (2) <<NOTE: Deadline. 26 USC 27705 note.>>  Certification 
        program.--The Secretary of the Treasury shall establish the 
        certification program described in section 7705(b) of the 
        Internal Revenue Code of 1986, as added by subsection (b), not 
        later than 6 months before the effective date determined under 
        paragraph (1).

    (h) <<NOTE: 26 USC 3302 note.>>  No Inference.--Nothing contained in 
this section or the amendments made by this section shall be construed 
to create

[[Page 128 STAT. 4072]]

any inference with respect to the determination of who is an employee or 
employer--
            (1) for Federal tax purposes (other than the purposes set 
        forth in the amendments made by this section), or
            (2) for purposes of any other provision of law.
SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN 
                        CORPORATIONS FROM THE DEFINITION OF 
                        PERSONAL HOLDING COMPANY INCOME FOR 
                        PURPOSES OF THE PERSONAL HOLDING COMPANY 
                        RULES.

    (a) In General.--Section 543(a)(1) is <<NOTE: 26 USC 543.>>  
amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively, and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) dividends received by a United States 
                shareholder (as defined in section 951(b)) from a 
                controlled foreign corporation (as defined in section 
                957(a)),''.

    (b) <<NOTE: 26 USC 543 note.>>  Effective Date.--The amendments made 
by this Act shall apply to taxable years ending on or after the date of 
the enactment of this Act.
SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES UNDER 
                        THE INTERNAL REVENUE CODE OF 1986.

    (a) Failure To File Tax Return or Pay Tax.--Section 6651 is amended 
by adding at the end the following new subsection:
    ``(i) Adjustment for Inflation.--
            ``(1) <<NOTE: Time period.>>  In general.--In the case of 
        any return required to be filed in a calendar year beginning 
        after 2014, the $135 dollar amount under subsection (a) shall be 
        increased by such dollar amount multiplied by the cost-of-living 
        adjustment determined under section 1(f)(3) determined by 
        substituting `calendar year 2013' for `calendar year 1992' in 
        subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.

    (b) Failure To File Certain Information Returns, Registration 
Statements, ETC.--
            (1) In general.--Section 6652(c) is amended by adding at the 
        end the following new paragraph:
            ``(6) Adjustment for inflation.--
                    ``(A) <<NOTE: Time period.>>  In general.--In the 
                case of any failure relating to a return required to be 
                filed in a calendar year beginning after 2014, each of 
                the dollar amounts under paragraphs (1), (2), and (3) 
                shall be increased by such dollar amount multiplied by 
                the cost-of-living adjustment determined under section 
                1(f)(3) determined by substituting `calendar year 2013' 
                for `calendar year 1992' in subparagraph (B) thereof.
                    ``(B) Rounding.--If any amount adjusted under 
                subparagraph (A)--
                          ``(i) is not less than $5,000 and is not a 
                      multiple of $500, such amount shall be rounded to 
                      the next lowest multiple of $500, and
                          ``(ii) is not described in clause (i) and is 
                      not a multiple of $5, such amount shall be rounded 
                      to the next lowest multiple of $5.''.
            (2) Conforming amendments.--

[[Page 128 STAT. 4073]]

                    (A) The last sentence of section <<NOTE: 26 USC 
                6652. Applicability.>>  6652(c)(1)(A) is amended by 
                striking ``the first sentence of this subparagraph shall 
                be applied by substituting `$100' for `$20' and'' and 
                inserting ``in applying the first sentence of this 
                subparagraph, the amount of the penalty for each day 
                during which a failure continues shall be $100 in lieu 
                of the amount otherwise specified, and''.
                    (B) Section 6652(c)(2)(C)(ii) is amended by striking 
                ``the first sentence of paragraph (1)(A)'' and all that 
                follows and inserting ``in applying the first sentence 
                of paragraph (1)(A), the amount of the penalty for each 
                day during which a failure continues shall be $100 in 
                lieu of the amount otherwise specified, and in lieu of 
                applying the second sentence of paragraph (1)(A), the 
                maximum penalty under paragraph (1)(A) shall not exceed 
                $50,000, and''.

    (c) Other Assessable Penalties With Respect to the Preparation of 
Tax Returns for Other Persons.--Section 6695 is amended by adding at the 
end the following new subsection:
    ``(h) Adjustment for Inflation.--
            ``(1) <<NOTE: Time period.>>  In general.--In the case of 
        any failure relating to a return or claim for refund filed in a 
        calendar year beginning after 2014, each of the dollar amounts 
        under subsections (a), (b), (c), (d), (e), (f), and (g) shall be 
        increased by such dollar amount multiplied by the cost-of-living 
        adjustment determined under section 1(f)(3) determined by 
        substituting `calendar year 2013' for `calendar year 1992' in 
        subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under subparagraph 
        (A)--
                    ``(A) is not less than $5,000 and is not a multiple 
                of $500, such amount shall be rounded to the next lowest 
                multiple of $500, and
                    ``(B) is not described in clause (i) and is not a 
                multiple of $5, such amount shall be rounded to the next 
                lowest multiple of $5.''.

    (d) Failure To File Partnership Return.--Section 6698 is amended by 
adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) <<NOTE: Time period.>>  In general.--In the case of 
        any return required to be filed in a calendar year beginning 
        after 2014, the $195 dollar amount under subsection (b)(1) shall 
        be increased by such dollar amount multiplied by the cost-of-
        living adjustment determined under section 1(f)(3) determined by 
        substituting `calendar year 2013' for `calendar year 1992' in 
        subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.

    (e) Failure To File S Corporation Return.--Section 6699 is amended 
by adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) <<NOTE: Time period.>>  In general.--In the case of 
        any return required to be filed in a calendar year beginning 
        after 2014, the $195 dollar amount under subsection (b)(1) shall 
        be increased by such dollar amount multiplied by the cost-of-
        living adjustment determined under section 1(f)(3) determined by 
        substituting `calendar year 2013' for `calendar year 1992' in 
        subparagraph (B) thereof.

[[Page 128 STAT. 4074]]

            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.

    (f) Failure To File Correct Information Returns.--Section 
6721(f)(1) <<NOTE: 26 USC 6721.>>  is amended by striking ``For each 
fifth calendar year beginning after 2012'' and inserting ``In the case 
of any failure relating to a return required to be filed in a calendar 
year beginning after 2014''.

    (g) Failure To Furnish Correct Payee Statements.--Section 6722(f)(1) 
is amended by striking ``For each fifth calendar year beginning after 
2012'' and inserting ``In the case of any failure relating to a 
statement required to be furnished in a calendar year beginning after 
2014''.
    (h) <<NOTE: 26 USC 6651 note.>>  Effective Date.--The amendments 
made by this section shall apply to returns required to be filed after 
December 31, 2014.
SEC. 209. INCREASE IN CONTINUOUS LEVY.

    (a) In General.--Paragraph (3) of section 6331(h) is amended by 
striking the period at the end and inserting ``and by substituting `30 
percent' for `15 percent' in the case of any specified payment due to a 
Medicare provider or supplier under title XVIII of the Social Security 
Act.''.
    (b) <<NOTE: 26 USC 6331 note.>>  Effective Date.--The amendment made 
by this section shall apply to payments made after 180 days after the 
date of the enactment of this Act.

    Approved December 19, 2014.

LEGISLATIVE HISTORY--H.R. 5771:
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CONGRESSIONAL RECORD, Vol. 160 (2014):
            Dec. 3, considered and passed House.
            Dec. 16, considered and passed Senate.

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