American Taxpayer Relief Act of 2012
PL 112-240 (H.R.8), enacted 01/02/2013

126 STAT. 2313 
PUBLIC LAW 112–240—JAN. 2, 2013 
Public Law 112–240 
112th Congress 
An Act 
Entitled the ‘‘American Taxpayer Relief Act of 2012’’. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘American 
Taxpayer Relief Act of 2012’’. 
(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: 
Sec. 1. Short title, etc. 
TITLE I—GENERAL EXTENSIONS 
Sec. 101. Permanent extension and modification of 2001 tax relief. 
Sec. 102. Permanent extension and modification of 2003 tax relief. 
Sec. 103. Extension of 2009 tax relief. 
Sec. 104. Permanent alternative minimum tax relief. 
TITLE II—INDIVIDUAL TAX EXTENDERS 
Sec. 201. Extension of deduction for certain expenses of elementary and secondary 
school teachers. 
Sec. 202. Extension of exclusion from gross income of discharge of qualified prin-
cipal residence indebtedness. 
Sec. 203. Extension of parity for exclusion from income for employer-provided mass 
transit and parking benefits. 
Sec. 204. Extension of mortgage insurance premiums treated as qualified residence 
interest. 
Sec. 205. Extension of deduction of State and local general sales taxes. 
Sec. 206. Extension of special rule for contributions of capital gain real property 
made for conservation purposes. 
Sec. 207. Extension of above-the-line deduction for qualified tuition and related ex-
penses. 
Sec. 208. Extension of tax-free distributions from individual retirement plans for 
charitable purposes. 
Sec. 209. Improve and make permanent the provision authorizing the Internal Rev-
enue Service to disclose certain return and return information to certain 
prison officials. 
TITLE III—BUSINESS TAX EXTENDERS 
Sec. 301. Extension and modification of research credit. 
Sec. 302. Extension of temporary minimum low-income tax credit rate for non-fed-
erally subsidized new buildings. 
Sec. 303. Extension of housing allowance exclusion for determining area median 
gross income for qualified residential rental project exempt facility 
bonds. 
Sec. 304. Extension of Indian employment tax credit. 
American 
Taxpayer Relief 
Act of 2012. 
26 USC 1 note. 
Jan. 2, 2013 
[H.R. 8] 
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126 STAT. 2314 
PUBLIC LAW 112–240—JAN. 2, 2013 
Sec. 305. Extension of new markets tax credit. 
Sec. 306. Extension of railroad track maintenance credit. 
Sec. 307. Extension of mine rescue team training credit. 
Sec. 308. Extension of employer wage credit for employees who are active duty 
members of the uniformed services. 
Sec. 309. Extension of work opportunity tax credit. 
Sec. 310. Extension of qualified zone academy bonds. 
Sec. 311. Extension of 15-year straight-line cost recovery for qualified leasehold im-
provements, qualified restaurant buildings and improvements, and 
qualified retail improvements. 
Sec. 312. Extension of 7-year recovery period for motorsports entertainment com-
plexes. 
Sec. 313. Extension of accelerated depreciation for business property on an Indian 
reservation. 
Sec. 314. Extension of enhanced charitable deduction for contributions of food in-
ventory. 
Sec. 315. Extension of increased expensing limitations and treatment of certain 
real property as section 179 property. 
Sec. 316. Extension of election to expense mine safety equipment. 
Sec. 317. Extension of special expensing rules for certain film and television pro-
ductions. 
Sec. 318. Extension of deduction allowable with respect to income attributable to 
domestic production activities in Puerto Rico. 
Sec. 319. Extension of modification of tax treatment of certain payments to control-
ling exempt organizations. 
Sec. 320. Extension of treatment of certain dividends of regulated investment com-
panies. 
Sec. 321. Extension of RIC qualified investment entity treatment under FIRPTA. 
Sec. 322. Extension of subpart F exception for active financing income. 
Sec. 323. Extension of look-thru treatment of payments between related controlled 
foreign corporations under foreign personal holding company rules. 
Sec. 324. Extension of temporary exclusion of 100 percent of gain on certain small 
business stock. 
Sec. 325. Extension of basis adjustment to stock of S corporations making chari-
table contributions of property. 
Sec. 326. Extension of reduction in S-corporation recognition period for built-in 
gains tax. 
Sec. 327. Extension of empowerment zone tax incentives. 
Sec. 328. Extension of tax-exempt financing for New York Liberty Zone. 
Sec. 329. Extension of temporary increase in limit on cover over of rum excise taxes 
to Puerto Rico and the Virgin Islands. 
Sec. 330. Modification and extension of American Samoa economic development 
credit. 
Sec. 331. Extension and modification of bonus depreciation. 
TITLE IV—ENERGY TAX EXTENDERS 
Sec. 401. Extension of credit for energy-efficient existing homes. 
Sec. 402. Extension of credit for alternative fuel vehicle refueling property. 
Sec. 403. Extension of credit for 2- or 3-wheeled plug-in electric vehicles. 
Sec. 404. Extension and modification of cellulosic biofuel producer credit. 
Sec. 405. Extension of incentives for biodiesel and renewable diesel. 
Sec. 406. Extension of production credit for Indian coal facilities placed in service 
before 2009. 
Sec. 407. Extension and modification of credits with respect to facilities producing 
energy from certain renewable resources. 
Sec. 408. Extension of credit for energy-efficient new homes. 
Sec. 409. Extension of credit for energy-efficient appliances. 
Sec. 410. Extension and modification of special allowance for cellulosic biofuel plant 
property. 
Sec. 411. Extension of special rule for sales or dispositions to implement FERC or 
State electric restructuring policy for qualified electric utilities. 
Sec. 412. Extension of alternative fuels excise tax credits. 
TITLE V—UNEMPLOYMENT 
Sec. 501. Extension of emergency unemployment compensation program. 
Sec. 502. Temporary extension of extended benefit provisions. 
Sec. 503. Extension of funding for reemployment services and reemployment and 
eligibility assessment activities. 
Sec. 504. Additional extended unemployment benefits under the Railroad Unem-
ployment Insurance Act. 
TITLE VI—MEDICARE AND OTHER HEALTH EXTENSIONS 
Subtitle A—Medicare Extensions 
Sec. 601. Medicare physician payment update. 
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126 STAT. 2315 
PUBLIC LAW 112–240—JAN. 2, 2013 
Sec. 602. Work geographic adjustment. 
Sec. 603. Payment for outpatient therapy services. 
Sec. 604. Ambulance add-on payments. 
Sec. 605. Extension of Medicare inpatient hospital payment adjustment for low-vol-
ume hospitals. 
Sec. 606. Extension of the Medicare-dependent hospital (MDH) program. 
Sec. 607. Extension for specialized Medicare Advantage plans for special needs in-
dividuals. 
Sec. 608. Extension of Medicare reasonable cost contracts. 
Sec. 609. Performance improvement. 
Sec. 610. Extension of funding outreach and assistance for low-income programs. 
Subtitle B—Other Health Extensions 
Sec. 621. Extension of the qualifying individual (QI) program. 
Sec. 622. Extension of Transitional Medical Assistance (TMA). 
Sec. 623. Extension of Medicaid and CHIP Express Lane option. 
Sec. 624. Extension of family-to-family health information centers. 
Sec. 625. Extension of Special Diabetes Program for Type I diabetes and for Indi-
ans. 
Subtitle C—Other Health Provisions 
Sec. 631. IPPS documentation and coding adjustment for implementation of MS- 
DRGs. 
Sec. 632. Revisions to the Medicare ESRD bundled payment system to reflect find-
ings in the GAO report. 
Sec. 633. Treatment of multiple service payment policies for therapy services. 
Sec. 634. Payment for certain radiology services furnished under the Medicare hos-
pital outpatient department prospective payment system. 
Sec. 635. Adjustment of equipment utilization rate for advanced imaging services. 
Sec. 636. Medicare payment of competitive prices for diabetic supplies and elimi-
nation of overpayment for diabetic supplies. 
Sec. 637. Medicare payment adjustment for non-emergency ambulance transports 
for ESRD beneficiaries. 
Sec. 638. Removing obstacles to collection of overpayments. 
Sec. 639. Medicare advantage coding intensity adjustment. 
Sec. 640. Elimination of all funding for the Medicare Improvement Fund. 
Sec. 641. Rebasing of State DSH allotments. 
Sec. 642. Repeal of CLASS program. 
Sec. 643. Commission on Long-Term Care. 
Sec. 644. Consumer Operated and Oriented Plan program contingency fund. 
TITLE VII—EXTENSION OF AGRICULTURAL PROGRAMS 
Sec. 701. 1-year extension of agricultural programs. 
Sec. 702. Supplemental agricultural disaster assistance. 
TITLE VIII—MISCELLANEOUS PROVISIONS 
Sec. 801. Strategic delivery systems. 
Sec. 802. No cost of living adjustment in pay of members of congress. 
TITLE IX—BUDGET PROVISIONS 
Subtitle A—Modifications of Sequestration 
Sec. 901. Treatment of sequester. 
Sec. 902. Amounts in applicable retirement plans may be transferred to designated 
Roth accounts without distribution. 
Subtitle B—Budgetary Effects 
Sec. 911. Budgetary effects. 
TITLE I—GENERAL EXTENSIONS 
SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 2001 TAX 
RELIEF. 
(a) PERMANENT EXTENSION.— 
(1) IN GENERAL.—The Economic Growth and Tax Relief 
Reconciliation Act of 2001 is amended by striking title IX. 
(2) CONFORMING AMENDMENT.—The Tax Relief, Unemploy-
ment Insurance Reauthorization, and Job Creation Act of 2010 
is amended by striking section 304. 
26 USC 121 note. 
26 USC 1 note. 
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126 STAT. 2316 
PUBLIC LAW 112–240—JAN. 2, 2013 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable, plan, or limitation years begin-
ning after December 31, 2012, and estates of decedents dying, 
gifts made, or generation skipping transfers after December 
31, 2012. 
(b) APPLICATION
OF INCOME TAX
TO CERTAIN HIGH-INCOME 
TAXPAYERS.— 
(1) INCOME TAX RATES.— 
(A) TREATMENT
OF
25-, 28-, AND
33-PERCENT
RATE 
BRACKETS.—Paragraph (2) of section 1(i) is amended to 
read as follows: 
‘‘(2) 25-, 28-, AND 33-PERCENT RATE BRACKETS.—The tables 
under subsections (a), (b), (c), (d), and (e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each place it 
appears (before the application of subparagraph (B)), 
‘‘(B) by substituting ‘28%’ for ‘31%’ each place it 
appears, and 
‘‘(C) by substituting ‘33%’ for ‘36%’ each place it 
appears.’’. 
(B) 35-PERCENT RATE BRACKET.—Subsection (i) of sec-
tion 1 is amended by redesignating paragraph (3) as para-
graph (4) and by inserting after paragraph (2) the following 
new paragraph: 
‘‘(3) MODIFICATIONS TO INCOME TAX BRACKETS FOR HIGH- 
INCOME TAXPAYERS.— 
‘‘(A) 35-PERCENT RATE BRACKET.—In the case of taxable 
years beginning after December 31, 2012— 
‘‘(i) the rate of tax under subsections (a), (b), (c), 
and (d) on a taxpayer’s taxable income in the highest 
rate bracket shall be 35 percent to the extent such 
income does not exceed an amount equal to the excess 
of— 
‘‘(I) the applicable threshold, over 
‘‘(II) the dollar amount at which such bracket 
begins, and 
‘‘(ii) the 39.6 percent rate of tax under such sub-
sections shall apply only to the taxpayer’s taxable 
income in such bracket in excess of the amount to 
which clause (i) applies. 
‘‘(B) APPLICABLE
THRESHOLD.—For purposes of this 
paragraph, the term ‘applicable threshold’ means— 
‘‘(i) $450,000 in the case of subsection (a), 
‘‘(ii) $425,000 in the case of subsection (b), 
‘‘(iii) $400,000 in the case of subsection (c), and 
‘‘(iv) 1⁄2 the amount applicable under clause (i) 
(after adjustment, if any, under subparagraph (C)) in 
the case of subsection (d). 
‘‘(C) INFLATION
ADJUSTMENT.—For purposes of this 
paragraph, with respect to taxable years beginning in cal-
endar years after 2013, each of the dollar amounts under 
clauses (i), (ii), and (iii) of subparagraph (B) shall be 
adjusted in the same manner as under paragraph (1)(C)(i), 
except that subsection (f)(3)(B) shall be applied by sub-
stituting ‘2012’ for ‘1992’.’’. 
(2) PHASEOUT
OF
PERSONAL
EXEMPTIONS
AND
ITEMIZED 
DEDUCTIONS.— 
Definition. 
26 USC 1. 
Applicability. 
26 USC 1 note. 
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126 STAT. 2317 
PUBLIC LAW 112–240—JAN. 2, 2013 
(A) OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.— 
Section 68 is amended— 
(i) by striking subsection (b) and inserting the 
following: 
‘‘(b) APPLICABLE AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘applicable amount’ means— 
‘‘(A) $300,000 in the case of a joint return or a surviving 
spouse (as defined in section 2(a)), 
‘‘(B) $275,000 in the case of a head of household (as 
defined in section 2(b)), 
‘‘(C) $250,000 in the case of an individual who is not 
married and who is not a surviving spouse or head of 
household, and 
‘‘(D) 1⁄2 the amount applicable under subparagraph 
(A) (after adjustment, if any, under paragraph (2)) in the 
case of a married individual filing a separate return. 
For purposes of this paragraph, marital status shall be deter-
mined under section 7703. 
‘‘(2) INFLATION ADJUSTMENT.—In the case of any taxable 
year beginning in calendar years after 2013, each of the dollar 
amounts under subparagraphs (A), (B), and (C) of paragraph 
(1) shall be shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the taxable 
year begins, except that section 1(f)(3)(B) shall be applied 
by substituting ‘2012’ for ‘1992’. 
If any amount after adjustment under the preceding sentence 
is not a multiple of $50, such amount shall be rounded to 
the next lowest multiple of $50.’’, and 
(ii) by striking subsections (f) and (g). 
(B) PHASEOUT OF DEDUCTIONS FOR PERSONAL EXEMP-
TIONS.— 
(i) IN GENERAL.—Paragraph (3) of section 151(d) 
is amended— 
(I) by striking ‘‘the threshold amount’’ in sub-
paragraphs (A) and (B) and inserting ‘‘the 
applicable amount in effect under section 68(b)’’, 
(II) by striking subparagraph (C) and redesig-
nating subparagraph (D) as subparagraph (C), and 
(III) by striking subparagraphs (E) and (F). 
(ii) CONFORMING AMENDMENTS.—Paragraph (4) of 
section 151(d) is amended— 
(I) by striking subparagraph (B), 
(II) by redesignating clauses (i) and (ii) of 
subparagraph (A) as subparagraphs (A) and (B), 
respectively, and by indenting such subparagraphs 
(as so redesignated) accordingly, and 
(III) by striking all that precedes ‘‘in a cal-
endar year after 1989,’’ and inserting the following: 
‘‘(4) INFLATION ADJUSTMENT.—In the case of any taxable 
year beginning’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December 
31, 2012. 
(c) MODIFICATIONS OF ESTATE TAX.— 
26 USC 1 note. 
Definition. 
26 USC 68. 
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126 STAT. 2318 
PUBLIC LAW 112–240—JAN. 2, 2013 
(1) MAXIMUM ESTATE TAX RATE EQUAL TO 40 PERCENT.— 
The table contained in subsection (c) of section 2001, as 
amended by section 302(a)(2) of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010, is 
amended by striking ‘‘Over $500,000’’ and all that follows and 
inserting the following: 
‘‘Over $500,000 but not over 
$750,000.
$155,800, plus 37 percent of the 
excess of such amount over 
$500,000. 
Over $750,000 but not over 
$1,000,000.
$248,300, plus 39 percent of the 
excess of such amount over 
$750,000. 
Over $1,000,000 ..........................
$345,800, plus 40 percent of the 
excess of such amount over 
$1,000,000.’’. 
(2) 
TECHNICAL
CORRECTION.—Clause 
(i) 
of 
section 
2010(c)(4)(B) is amended by striking ‘‘basic exclusion amount’’ 
and inserting ‘‘applicable exclusion amount’’. 
(3) EFFECTIVE DATES.— 
(A) IN GENERAL.—Except as otherwise provided by in 
this paragraph, the amendments made by this subsection 
shall apply to estates of decedents dying, generation-skip-
ping transfers, and gifts made, after December 31, 2012. 
(B) TECHNICAL
CORRECTION.—The amendment made 
by paragraph (2) shall take effect as if included in the 
amendments made by section 303 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Cre-
ation Act of 2010. 
SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX 
RELIEF. 
(a) PERMANENT EXTENSION.—The Jobs and Growth Tax Relief 
Reconciliation Act of 2003 is amended by striking section 303. 
(b) 20-PERCENT
CAPITAL
GAINS
RATE
FOR
CERTAIN
HIGH 
INCOME INDIVIDUALS.— 
(1) IN GENERAL.—Paragraph (1) of section 1(h) is amended 
by striking subparagraph (C), by redesignating subparagraphs 
(D) and (E) as subparagraphs (E) and (F) and by inserting 
after subparagraph (B) the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net capital gain (or, 
if less, taxable income) as exceeds the amount on which 
a tax is determined under subparagraph (B), or 
‘‘(ii) the excess of— 
‘‘(I) the amount of taxable income which would 
(without regard to this paragraph) be taxed at 
a rate below 39.6 percent, over 
‘‘(II) the sum of the amounts on which a tax 
is determined under subparagraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital gain (or, 
if less, taxable income) in excess of the sum of the amounts 
on which tax is determined under subparagraphs (B) and 
(C),’’. 
26 USC 1 note. 
26 USC 2001 
note. 
Applicability. 
26 USC 2001. 
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126 STAT. 2319 
PUBLIC LAW 112–240—JAN. 2, 2013 
(2) MINIMUM
TAX.—Paragraph (3) of section 55(b) is 
amended by striking subparagraph (C), by redesignating 
subparagraph (D) as subparagraph (E), and by inserting after 
subparagraph (B) the following new subparagraphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net capital gain (or, 
if less, taxable excess) as exceeds the amount on which 
tax is determined under subparagraph (B), or 
‘‘(ii) the excess described in section 1(h)(1)(C)(ii), 
plus 
‘‘(D) 20 percent of the adjusted net capital gain (or, 
if less, taxable excess) in excess of the sum of the amounts 
on which tax is determined under subparagraphs (B) and 
(C), plus’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The following provisions are each amended by striking 
‘‘15 percent’’ and inserting ‘‘20 percent’’: 
(A) Section 531. 
(B) Section 541. 
(C) Section 1445(e)(1). 
(D) The second sentence of section 7518(g)(6)(A). 
(E) Section 53511(f)(2) of title 46, United States Code. 
(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended 
by striking ‘‘5 percent (0 percent in the case of taxable years 
beginning after 2007)’’ and inserting ‘‘0 percent’’. 
(3) Section 1445(e)(6) is amended by striking ‘‘15 percent 
(20 percent in the case of taxable years beginning after 
December 31, 2010)’’ and inserting ‘‘20 percent’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided, the amend-
ments made by subsections (b) and (c) shall apply to taxable 
years beginning after December 31, 2012. 
(2) WITHHOLDING.—The amendments made by paragraphs 
(1)(C) and (3) of subsection (c) shall apply to amounts paid 
on or after January 1, 2013. 
SEC. 103. EXTENSION OF 2009 TAX RELIEF. 
(a) 5-YEAR
EXTENSION
OF
AMERICAN
OPPORTUNITY
TAX 
CREDIT.— 
(1) IN GENERAL.—Section 25A(i) is amended by striking 
‘‘in 2009, 2010, 2011, or 2012’’ and inserting ‘‘after 2008 and 
before 2018’’. 
(2) TREATMENT OF POSSESSIONS.—Section 1004(c)(1) of divi-
sion B of the American Recovery and Reinvestment Tax Act 
of 2009 is amended by striking ‘‘in 2009, 2010, 2011, and 
2012’’ each place it appears and inserting ‘‘after 2008 and 
before 2018’’. 
(b) 5-YEAR EXTENSION OF CHILD TAX CREDIT.—Section 24(d)(4) 
is amended— 
(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the heading 
and inserting ‘‘FOR CERTAIN YEARS’’, and 
(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 
‘‘after 2008 and before 2018’’. 
(c) 5-YEAR EXTENSION OF EARNED INCOME TAX CREDIT.—Section 
32(b)(3) is amended— 
(1) by striking ‘‘2009, 2010, 2011, AND 2012’’ in the heading 
and inserting ‘‘FOR CERTAIN YEARS’’, and 
26 USC 25A note. 
Applicability. 
26 USC 1 note. 
26 USC 55. 
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126 STAT. 2320 
PUBLIC LAW 112–240—JAN. 2, 2013 
(2) by striking ‘‘in 2009, 2010, 2011, or 2012’’ and inserting 
‘‘after 2008 and before 2018’’. 
(d) PERMANENT EXTENSION OF RULE DISREGARDING REFUNDS 
IN THE ADMINISTRATION OF FEDERAL PROGRAMS AND FEDERALLY 
ASSISTED PROGRAMS.—Section 6409 is amended to read as follows: 
‘‘SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FED-
ERAL PROGRAMS AND FEDERALLY ASSISTED PROGRAMS. 
‘‘Notwithstanding any other provision of law, any refund (or 
advance payment with respect to a refundable credit) made to 
any individual under this title shall not be taken into account 
as income, and shall not be taken into account as resources for 
a period of 12 months from receipt, for purposes of determining 
the eligibility of such individual (or any other individual) for benefits 
or assistance (or the amount or extent of benefits or assistance) 
under any Federal program or under any State or local program 
financed in whole or in part with Federal funds.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 2012. 
(2) RULE REGARDING DISREGARD OF REFUNDS.—The amend-
ment made by subsection (d) shall apply to amounts received 
after December 31, 2012. 
SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF. 
(a) 2012 EXEMPTION AMOUNTS MADE PERMANENT.— 
(1) IN
GENERAL.—Paragraph (1) of section 55(d) is 
amended— 
(A) by striking ‘‘$45,000’’ and all that follows through 
‘‘2011)’’ in subparagraph (A) and inserting ‘‘$78,750’’, 
(B) by striking ‘‘$33,750’’ and all that follows through 
‘‘2011)’’ in subparagraph (B) and inserting ‘‘$50,600’’, and 
(C) by striking ‘‘paragraph (1)(A)’’ in subparagraph (C) 
and inserting ‘‘subparagraph (A)’’. 
(b) EXEMPTION AMOUNTS INDEXED FOR INFLATION.— 
(1) IN GENERAL.—Subsection (d) of section 55 is amended 
by adding at the end the following new paragraph: 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any taxable year 
beginning in a calendar year after 2012, the amounts 
described in subparagraph (B) shall each be increased by 
an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2011’ for ‘calendar year 1992’ in 
subparagraph (B) thereof. 
‘‘(B) AMOUNTS DESCRIBED.—The amounts described in 
this subparagraph are— 
‘‘(i) each of the dollar amounts contained in sub-
section (b)(1)(A)(i), 
‘‘(ii) each of the dollar amounts contained in para-
graph (1), and 
‘‘(iii) each of the dollar amounts in subparagraphs 
(A) and (B) of paragraph (3). 
Applicability. 
26 USC 24 note. 
Time period. 
26 USC 6409. 
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126 STAT. 2321 
PUBLIC LAW 112–240—JAN. 2, 2013 
‘‘(C) ROUNDING.—Any increase determined under 
subparagraph (A) shall be rounded to the nearest multiple 
of $100.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Clause (iii) of section 55(b)(1)(A) is amended by 
striking ‘‘by substituting’’ and all that follows through 
‘‘appears.’’ and inserting ‘‘by substituting 50 percent of 
the dollar amount otherwise applicable under subclause 
(I) and subclause (II) thereof.’’. 
(B) Paragraph (3) of section 55(d) is amended— 
(i) by striking ‘‘or (2)’’ in subparagraph (A), 
(ii) by striking ‘‘and’’ at the end of subparagraph 
(B), and 
(iii) by striking subparagraph (C) and inserting 
the following new subparagraphs: 
‘‘(C) 50 percent of the dollar amount applicable under 
subparagraph (A) in the case of a taxpayer described in 
subparagraph (C) or (D) of paragraph (1), and 
‘‘(D) $150,000 in the case of a taxpayer described in 
paragraph (2).’’. 
(c) ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
CREDITS.— 
(1) IN GENERAL.—Subsection (a) of section 26 is amended 
to read as follows: 
‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The aggregate 
amount of credits allowed by this subpart for the taxable year 
shall not exceed the sum of— 
‘‘(1) the taxpayer’s regular tax liability for the taxable 
year reduced by the foreign tax credit allowable under section 
27(a), and 
‘‘(2) the tax imposed by section 55(a) for the taxable year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) ADOPTION CREDIT.— 
(i) Section 23(b) is amended by striking paragraph 
(4). 
(ii) Section 23(c) is amended by striking para-
graphs (1) and (2) and inserting the following: 
‘‘(1) IN GENERAL.—If the credit allowable under subsection 
(a) for any taxable year exceeds the limitation imposed by 
section 26(a) for such taxable year reduced by the sum of 
the credits allowable under this subpart (other than this section 
and sections 25D and 1400C), such excess shall be carried 
to the succeeding taxable year and added to the credit allowable 
under subsection (a) for such taxable year.’’. 
(iii) Section 23(c) is amended by redesignating 
paragraph (3) as paragraph (2). 
(B) CHILD TAX CREDIT.— 
(i) Section 24(b) is amended by striking paragraph 
(3). 
(ii) Section 24(d)(1) is amended— 
(I) by striking ‘‘section 26(a)(2) or subsection 
(b)(3), as the case may be,’’ each place it appears 
in subparagraphs (A) and (B) and inserting ‘‘sec-
tion 26(a)’’, and 
(II) by striking ‘‘section 26(a)(2) or subsection 
(b)(3), as the case may be’’ in the second last 
sentence and inserting ‘‘section 26(a)’’. 
26 USC 55. 
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126 STAT. 2322 
PUBLIC LAW 112–240—JAN. 2, 2013 
(C) CREDIT
FOR
INTEREST
ON
CERTAIN
HOME
MORT-
GAGES.—Section 25(e)(1)(C) is amended to read as follows: 
‘‘(C) APPLICABLE TAX LIMIT.—For purposes of this para-
graph, the term ‘applicable tax limit’ means the limitation 
imposed by section 26(a) for the taxable year reduced by 
the sum of the credits allowable under this subpart (other 
than this section and sections 23, 25D, and 1400C).’’. 
(D) HOPE AND LIFETIME LEARNING CREDITS.—Section 
25A(i) is amended— 
(i) by striking paragraph (5) and by redesignating 
paragraphs (6) and (7) as paragraphs (5) and (6), 
respectively, and 
(ii) by striking ‘‘section 26(a)(2) or paragraph (5), 
as the case may be’’ in paragraph (5), as redesignated 
by clause (i), and inserting ‘‘section 26(a)’’. 
(E) SAVERS’ CREDIT.—Section 25B is amended by 
striking subsection (g). 
(F) RESIDENTIAL ENERGY EFFICIENT PROPERTY.—Section 
25D(c) is amended to read as follows: 
‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by section 
26(a) for such taxable year reduced by the sum of the credits 
allowable under this subpart (other than this section), such excess 
shall be carried to the succeeding taxable year and added to the 
credit allowable under subsection (a) for such succeeding taxable 
year.’’. 
(G) CERTAIN
PLUG-IN
ELECTRIC
VEHICLES.—Section 
30(c)(2) is amended to read as follows: 
‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (determined 
after application of paragraph (1)) shall be treated as a credit 
allowable under subpart A for such taxable year.’’. 
(H) ALTERNATIVE
MOTOR
VEHICLE
CREDIT.—Section 
30B(g)(2) is amended to read as follows: 
‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (determined 
after application of paragraph (1)) shall be treated as a credit 
allowable under subpart A for such taxable year.’’. 
(I) 
NEW
QUALIFIED
PLUG-IN
ELECTRIC
VEHICLE 
CREDIT.—Section 30D(c)(2) is amended to read as follows: 
‘‘(2) PERSONAL CREDIT.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (determined 
after application of paragraph (1)) shall be treated as a credit 
allowable under subpart A for such taxable year.’’. 
(J) CROSS REFERENCES.—Section 55(c)(3) is amended 
by striking ‘‘26(a), 30C(d)(2),’’ and inserting ‘‘30C(d)(2)’’. 
(K) FOREIGN TAX CREDIT.—Section 904 is amended by 
striking subsection (i) and by redesignating subsections 
(j), (k), and (l) as subsections (i), (j), and (k), respectively. 
(L) FIRST-TIME HOME BUYER CREDIT FOR THE DISTRICT 
OF COLUMBIA.—Section 1400C(d) is amended to read as 
follows: 
‘‘(d) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by section 
26(a) for such taxable year reduced by the sum of the credits 
allowable under subpart A of part IV of subchapter A (other than 
this section and section 25D), such excess shall be carried to the 
26 USC 25. 
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126 STAT. 2323 
PUBLIC LAW 112–240—JAN. 2, 2013 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such taxable year.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
TITLE II—INDIVIDUAL TAX EXTENDERS 
SEC. 201. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
ELEMENTARY AND SECONDARY SCHOOL TEACHERS. 
(a) IN GENERAL.—Subparagraph (D) of section 62(a)(2) is 
amended by striking ‘‘or 2011’’ and inserting ‘‘2011, 2012, or 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DIS-
CHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBT-
EDNESS. 
(a) IN GENERAL.—Subparagraph (E) of section 108(a)(1) is 
amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to indebtedness discharged after December 31, 2012. 
SEC. 203. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR 
EMPLOYER-PROVIDED 
MASS 
TRANSIT 
AND 
PARKING 
BENEFITS. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) is amended 
by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to months after December 31, 2011. 
SEC. 204. 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, 2011’’ and inserting ‘‘December 
31, 2013’’. 
(b) TECHNICAL AMENDMENTS.—Clause (i) of section 163(h)(4)(E) 
is amended— 
(1) by striking ‘‘Veterans Administration’’ and inserting 
‘‘Department of Veterans Affairs’’, and 
(2) by striking ‘‘Rural Housing Administration’’ and 
inserting ‘‘Rural Housing Service’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to amounts paid or accrued after December 31, 2011. 
SEC. 205. 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, 2012’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
26 USC 164 note. 
Applicability. 
26 USC 163 note. 
26 USC 132 note. 
Applicability. 
26 USC 108 note. 
26 USC 62 note. 
26 USC 62. 
26 USC 23 note. 
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126 STAT. 2324 
PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 206. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAP-
ITAL GAIN REAL PROPERTY MADE FOR CONSERVATION 
PURPOSES. 
(a) IN GENERAL.—Clause (vi) of section 170(b)(1)(E) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) CONTRIBUTIONS
BY CERTAIN CORPORATE FARMERS
AND 
RANCHERS.—Clause (iii) of section 170(b)(2)(B) is amended by 
striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made in taxable years beginning after 
December 31, 2011. 
SEC. 207. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALI-
FIED TUITION AND RELATED EXPENSES. 
(a) IN GENERAL.—Subsection (e) of section 222 is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 208. 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, 2011’’ and inserting ‘‘December 
31, 2013’’. 
(b) EFFECTIVE DATE; SPECIAL RULE.— 
(1) EFFECTIVE DATE.—The amendment made by this section 
shall apply to distributions made in taxable years beginning 
after December 31, 2011. 
(2) SPECIAL
RULES.—For purposes of subsections (a)(6), 
(b)(3), and (d)(8) of section 408 of the Internal Revenue Code 
of 1986, at the election of the taxpayer (at such time and 
in such manner as prescribed by the Secretary of the 
Treasury)— 
(A) any qualified charitable distribution made after 
December 31, 2012, and before February 1, 2013, shall 
be deemed to have been made on December 31, 2012, 
and 
(B) any portion of a distribution from an individual 
retirement account to the taxpayer after November 30, 
2012, and before January 1, 2013, may be treated as a 
qualified charitable distribution to the extent that— 
(i) such portion is transferred in cash after the 
distribution to an organization described in section 
408(d)(8)(B)(i) before February 1, 2013, and 
(ii) such portion is part of a distribution that would 
meet the requirements of section 408(d)(8) but for the 
fact that the distribution was not transferred directly 
to an organization described in section 408(d)(8)(B)(i). 
SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION AUTHOR-
IZING THE INTERNAL REVENUE SERVICE TO DISCLOSE 
CERTAIN RETURN AND RETURN INFORMATION TO CER-
TAIN PRISON OFFICIALS. 
(a) IN GENERAL.—Paragraph (10) of section 6103(k) is amended 
to read as follows: 
‘‘(10) DISCLOSURE
OF
CERTAIN
RETURNS
AND
RETURN 
INFORMATION TO CERTAIN PRISON OFFICIALS.— 
Applicability. 
26 USC 408 note. 
26 USC 222 note. 
Applicability. 
26 USC 170 note. 
26 USC 170. 
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126 STAT. 2325 
PUBLIC LAW 112–240—JAN. 2, 2013 
‘‘(A) IN GENERAL.—Under such procedures as the Sec-
retary may prescribe, the Secretary may disclose to officers 
and employees of the Federal Bureau of Prisons and of 
any State agency charged with the responsibility for 
administration of prisons any returns or return information 
with respect to individuals incarcerated in Federal or State 
prison systems whom the Secretary has determined may 
have filed or facilitated the filing of a false or fraudulent 
return to the extent that the Secretary determines that 
such disclosure is necessary to permit effective Federal 
tax administration. 
‘‘(B) DISCLOSURE TO CONTRACTOR-RUN PRISONS.—Under 
such procedures as the Secretary may prescribe, the disclo-
sures authorized by subparagraph (A) may be made to 
contractors responsible for the operation of a Federal or 
State prison on behalf of such Bureau or agency. 
‘‘(C) RESTRICTIONS
ON
USE
OF
DISCLOSED
INFORMA-
TION.—Any return or return information received under 
this paragraph shall be used only for the purposes of and 
to the extent necessary in taking administrative action 
to prevent the filing of false and fraudulent returns, 
including administrative actions to address possible viola-
tions of administrative rules and regulations of the prison 
facility and in administrative and judicial proceedings 
arising from such administrative actions. 
‘‘(D) RESTRICTIONS ON REDISCLOSURE AND DISCLOSURE 
TO LEGAL REPRESENTATIVES.—Notwithstanding subsection 
(h)— 
‘‘(i) RESTRICTIONS
ON
REDISCLOSURE.—Except as 
provided in clause (ii), any officer, employee, or con-
tractor of the Federal Bureau of Prisons or of any 
State agency charged with the responsibility for 
administration of prisons shall not disclose any 
information obtained under this paragraph to any per-
son other than an officer or employee or contractor 
of such Bureau or agency personally and directly 
engaged in the administration of prison facilities on 
behalf of such Bureau or agency. 
‘‘(ii) DISCLOSURE TO LEGAL REPRESENTATIVES.—The 
returns and return information disclosed under this 
paragraph may be disclosed to the duly authorized 
legal representative of the Federal Bureau of Prisons, 
State agency, or contractor charged with the responsi-
bility for administration of prisons, or of the incarcer-
ated individual accused of filing the false or fraudulent 
return who is a party to an action or proceeding 
described in subparagraph (C), solely in preparation 
for, or for use in, such action or proceeding.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (3) of section 6103(a) is amended by inserting 
‘‘subsection (k)(10),’’ after ‘‘subsection (e)(1)(D)(iii),’’. 
(2) Paragraph (4) of section 6103(p) is amended— 
(A) by inserting ‘‘subsection (k)(10),’’ before ‘‘subsection 
(l)(10),’’ in the matter preceding subparagraph (A), 
(B) in subparagraph (F)(i)— 
(i) by inserting ‘‘(k)(10),’’ before ‘‘or (l)(6),’’, and 
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126 STAT. 2326 
PUBLIC LAW 112–240—JAN. 2, 2013 
(ii) by inserting ‘‘subsection (k)(10) or’’ before ‘‘sub-
section (l)(10),’’, and 
(C) by inserting ‘‘subsection (k)(10) or’’ before ‘‘sub-
section (l)(10),’’ both places it appears in the matter fol-
lowing subparagraph (F)(iii). 
(3) Paragraph (2) of section 7213(a) is amended by inserting 
‘‘(k)(10),’’ before ‘‘(l)(6),’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
TITLE III—BUSINESS TAX EXTENDERS 
SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT. 
(a) EXTENSION.— 
(1) IN GENERAL.—Subparagraph (B) of section 41(h)(1) is 
amended by striking ‘‘December 31, 2011’’ and inserting 
‘‘December 31, 2013’’. 
(2) CONFORMING AMENDMENT.—Subparagraph (D) of sec-
tion 45C(b)(1) is amended by striking ‘‘December 31, 2011’’ 
and inserting ‘‘December 31, 2013’’. 
(b) INCLUSION OF QUALIFIED RESEARCH EXPENSES AND GROSS 
RECEIPTS OF AN ACQUIRED PERSON.— 
(1) PARTIAL
INCLUSION
OF
PRE-ACQUISITION
QUALIFIED 
RESEARCH EXPENSES AND GROSS RECEIPTS.—Subparagraph (A) 
of section 41(f)(3) is amended to read as follows: 
‘‘(A) ACQUISITIONS.— 
‘‘(i) IN GENERAL.—If a person acquires the major 
portion of either a trade or business or a separate 
unit of a trade or business (hereinafter in this para-
graph referred to as the ‘acquired business’) of another 
person (hereinafter in this paragraph referred to as 
the ‘predecessor’), then the amount of qualified 
research expenses paid or incurred by the acquiring 
person during the measurement period shall be 
increased by the amount determined under clause (ii), 
and the gross receipts of the acquiring person for such 
period shall be increased by the amount determined 
under clause (iii). 
‘‘(ii) AMOUNT DETERMINED WITH RESPECT TO QUALI-
FIED
RESEARCH
EXPENSES.—The amount determined 
under this clause is— 
‘‘(I) for purposes of applying this section for 
the taxable year in which such acquisition is made, 
the acquisition year amount, and 
‘‘(II) for purposes of applying this section for 
any taxable year after the taxable year in which 
such acquisition is made, the qualified research 
expenses paid or incurred by the predecessor with 
respect to the acquired business during the 
measurement period. 
‘‘(iii) AMOUNT DETERMINED WITH RESPECT TO GROSS 
RECEIPTS.—The amount determined under this clause 
is the amount which would be determined under clause 
(ii) if ‘the gross receipts of’ were substituted for ‘the 
qualified research expenses paid or incurred by’ each 
place it appears in clauses (ii) and (iv). 
26 USC 6103 
note. 
26 USC 7213. 
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126 STAT. 2327 
PUBLIC LAW 112–240—JAN. 2, 2013 
‘‘(iv) ACQUISITION YEAR AMOUNT.—For purposes of 
clause (ii), the acquisition year amount is the amount 
equal to the product of— 
‘‘(I) the qualified research expenses paid or 
incurred by the predecessor with respect to the 
acquired business during the measurement period, 
and 
‘‘(II) the number of days in the period begin-
ning on the date of the acquisition and ending 
on the last day of the taxable year in which the 
acquisition is made, 
divided by the number of days in the acquiring person’s 
taxable year. 
‘‘(v) SPECIAL
RULES
FOR
COORDINATING
TAXABLE 
YEARS.—In the case of an acquiring person and a prede-
cessor whose taxable years do not begin on the same 
date— 
‘‘(I) each reference to a taxable year in clauses 
(ii) and (iv) shall refer to the appropriate taxable 
year of the acquiring person, 
‘‘(II) the qualified research expenses paid or 
incurred by the predecessor, and the gross receipts 
of the predecessor, during each taxable year of 
the predecessor any portion of which is part of 
the measurement period shall be allocated equally 
among the days of such taxable year, 
‘‘(III) the amount of such qualified research 
expenses taken into account under clauses (ii) and 
(iv) with respect to a taxable year of the acquiring 
person shall be equal to the total of the expenses 
attributable under subclause (II) to the days occur-
ring during such taxable year, and 
‘‘(IV) the amount of such gross receipts taken 
into account under clause (iii) with respect to a 
taxable year of the acquiring person shall be equal 
to the total of the gross receipts attributable under 
subclause (II) to the days occurring during such 
taxable year. 
‘‘(vi) MEASUREMENT PERIOD.—For purposes of this 
subparagraph, the term ‘measurement period’ means, 
with respect to the taxable year of the acquiring person 
for which the credit is determined, any period of the 
acquiring person preceding such taxable year which 
is taken into account for purposes of determining the 
credit for such year.’’. 
(2) EXPENSES AND GROSS RECEIPTS OF A PREDECESSOR.— 
Subparagraph (B) of section 41(f)(3) is amended to read as 
follows: 
‘‘(B) DISPOSITIONS.—If the predecessor furnished to the 
acquiring person such information as is necessary for the 
application of subparagraph (A), then, for purposes of 
applying this section for any taxable year ending after 
such disposition, the amount of qualified research expenses 
paid or incurred by, and the gross receipts of, the prede-
cessor during the measurement period (as defined in 
26 USC 41. 
Definition. 
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126 STAT. 2328 
PUBLIC LAW 112–240—JAN. 2, 2013 
subparagraph (A)(vi), determined by substituting ‘prede-
cessor’ for ‘acquiring person’ each place it appears) shall 
be reduced by— 
‘‘(i) in the case of the taxable year in which such 
disposition is made, an amount equal to the product 
of— 
‘‘(I) the qualified research expenses paid or 
incurred by, or gross receipts of, the predecessor 
with respect to the acquired business during the 
measurement period (as so defined and so deter-
mined), and 
‘‘(II) the number of days in the period begin-
ning on the date of acquisition (as determined 
for purposes of subparagraph (A)(iv)(II)) and 
ending on the last day of the taxable year of the 
predecessor in which the disposition is made, 
divided by the number of days in the taxable year 
of the predecessor, and 
‘‘(ii) in the case of any taxable year ending after 
the taxable year in which such disposition is made, 
the amount described in clause (i)(I).’’. 
(c) AGGREGATION OF EXPENDITURES.—Paragraph (1) of section 
41(f) is amended— 
(1) by striking ‘‘shall be its proportionate shares of the 
qualified research expenses, basic research payments, and 
amounts paid or incurred to energy research consortiums, 
giving rise to the credit’’ in subparagraph (A)(ii) and inserting 
‘‘shall be determined on a proportionate basis to its share 
of the aggregate of the qualified research expenses, basic 
research payments, and amounts paid or incurred to energy 
research consortiums, taken into account by such controlled 
group for purposes of this section’’, and 
(2) by striking ‘‘shall be its proportionate shares of the 
qualified research expenses, basic research payments, and 
amounts paid or incurred to energy research consortiums, 
giving rise to the credit’’ in subparagraph (B)(ii) and inserting 
‘‘shall be determined on a proportionate basis to its share 
of the aggregate of the qualified research expenses, basic 
research payments, and amounts paid or incurred to energy 
research consortiums, taken into account by all such persons 
under common control for purposes of this section’’. 
(d) EFFECTIVE DATE.— 
(1) EXTENSION.—The amendments made by subsection (a) 
shall apply to amounts paid or incurred after December 31, 
2011. 
(2) MODIFICATIONS.—The amendments made by subsections 
(b) and (c) shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 302. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX 
CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED NEW 
BUILDINGS. 
(a) IN GENERAL.—Subparagraph (A) of section 42(b)(2) is 
amended by striking ‘‘and before December 31, 2013’’ and inserting 
‘‘with respect to housing credit dollar amount allocations made 
before January 1, 2014’’. 
Applicability. 
26 USC 41 note. 
26 USC 41. 
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126 STAT. 2329 
PUBLIC LAW 112–240—JAN. 2, 2013 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 303. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR 
DETERMINING AREA MEDIAN GROSS INCOME FOR QUALI-
FIED RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY 
BONDS. 
(a) IN GENERAL.—Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 is amended by striking ‘‘January 1, 
2012’’ each place it appears and inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in the enactment of section 3005 
of the Housing Assistance Tax Act of 2008. 
SEC. 304. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45A is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 305. EXTENSION OF NEW MARKETS TAX CREDIT. 
(a) IN GENERAL.—Subparagraph (G) of section 45D(f)(1) is 
amended by striking ‘‘2010 and 2011’’ and inserting ‘‘2010, 2011, 
2012, and 2013’’. 
(b) CARRYOVER OF UNUSED LIMITATION.—Paragraph (3) of sec-
tion 45D(f) is amended by striking ‘‘2016’’ and inserting ‘‘2018’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to calendar years beginning after December 31, 2011. 
SEC. 306. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45G is amended 
by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to expenditures paid or incurred in taxable years begin-
ning after December 31, 2011. 
SEC. 307. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT. 
(a) IN GENERAL.—Subsection (e) of section 45N is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 308. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to payments made after December 31, 2011. 
SEC. 309. EXTENSION OF WORK OPPORTUNITY TAX CREDIT. 
(a) IN
GENERAL.—Subparagraph (B) of section 51(c)(4) is 
amended by striking ‘‘after’’ and all that follows and inserting 
‘‘after December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to individuals who begin work for the employer after 
December 31, 2011. 
Applicability. 
26 USC 51 note. 
Applicability. 
26 USC 45P note. 
26 USC 45N 
note. 
Applicability. 
26 USC 45G 
note. 
26 USC 45D 
note. 
26 USC 45A note. 
26 USC 45A. 
26 USC 142 note. 
26 USC 142 note. 
26 USC 42 note. 
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126 STAT. 2330 
PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 310. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS. 
(a) IN GENERAL.—Paragraph (1) of section 54E(c) is amended 
by inserting ‘‘, 2012, and 2013’’ after ‘‘for 2011’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after December 31, 2011. 
SEC. 311. 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, 2012’’ and 
inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after December 31, 2011. 
SEC. 312. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTOR-
SPORTS ENTERTAINMENT COMPLEXES. 
(a) IN GENERAL.—Subparagraph (D) of section 168(i)(15) is 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2011. 
SEC. 313. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS 
PROPERTY ON AN INDIAN RESERVATION. 
(a) IN GENERAL.—Paragraph (8) of section 168(j) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2011. 
SEC. 314. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to contributions made after December 31, 2011. 
SEC. 315. 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 ‘‘2010 or 2011,’’ in subparagraph (B) 
and inserting ‘‘2010, 2011, 2012, or 2013, and’’, 
(B) by striking subparagraph (C), 
(C) by redesignating subparagraph (D) as subpara-
graph (C), and 
(D) in subparagraph (C), as so redesignated, by striking 
‘‘2012’’ and inserting ‘‘2013’’. 
(2) 
REDUCTION
IN
LIMITATION.—Section 
179(b)(2) 
is 
amended— 
(A) by striking ‘‘2010 or 2011,’’ in subparagraph (B) 
and inserting ‘‘2010, 2011, 2012, or 2013, and’’, 
(B) by striking subparagraph (C), 
(C) by redesignating subparagraph (D) as subpara-
graph (C), and 
Applicability. 
26 USC 170 note. 
Applicability. 
26 USC 168 note. 
Applicability. 
26 USC 168 note. 
Applicability. 
26 USC 168 note. 
Applicability. 
26 USC 54E note. 
26 USC 54E. 
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126 STAT. 2331 
PUBLIC LAW 112–240—JAN. 2, 2013 
(D) in subparagraph (C), as so redesignated, by striking 
‘‘2012’’ and inserting ‘‘2013’’. 
(3) CONFORMING
AMENDMENT.—Subsection (b) of section 
179 is amended by striking paragraph (6). 
(b) COMPUTER SOFTWARE.—Section 179(d)(1)(A)(ii) is amended 
by striking ‘‘2013’’ and inserting ‘‘2014’’. 
(c) ELECTION.—Section 179(c)(2) is amended by striking ‘‘2013’’ 
and inserting ‘‘2014’’. 
(d) SPECIAL RULES FOR TREATMENT OF QUALIFIED REAL PROP-
ERTY.— 
(1) IN GENERAL.—Section 179(f)(1) is amended by striking 
‘‘2010 or 2011’’ and inserting ‘‘2010, 2011, 2012, or 2013’’. 
(2) CARRYOVER LIMITATION.— 
(A) IN
GENERAL.—Section 179(f)(4) is amended by 
striking ‘‘2011’’ each place it appears and inserting ‘‘2013’’. 
(B) CONFORMING AMENDMENT.—Subparagraph (C) of 
section 179(f)(4) is amended— 
(i) in the heading, by striking ‘‘2010’’ and inserting 
‘‘2010, 2011 AND 2012’’, and 
(ii) by adding at the end the following: ‘‘For the 
last taxable year beginning in 2013, the amount deter-
mined under subsection (b)(3)(A) for such taxable year 
shall be determined without regard to this paragraph.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 316. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIP-
MENT. 
(a) IN GENERAL.—Subsection (g) of section 179E is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2011. 
SEC. 317. 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, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to productions commencing after December 31, 2011. 
SEC. 318. 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 6 taxable years’’ and inserting ‘‘first 
8 taxable years’’, and 
(2) by striking ‘‘January 1, 2012’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 319. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CER-
TAIN PAYMENTS TO CONTROLLING EXEMPT ORGANIZA-
TIONS. 
(a) IN
GENERAL.—Clause (iv) of section 512(b)(13)(E) is 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2013’’. 
26 USC 199 note. 
Applicability. 
26 USC 181 note. 
Applicability. 
26 USC 179E 
note. 
26 USC 179 note. 
26 USC 179. 
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126 STAT. 2332 
PUBLIC LAW 112–240—JAN. 2, 2013 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to payments received or accrued after December 31, 
2011. 
SEC. 320. 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, 2011’’ and 
inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 321. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY TREAT-
MENT UNDER FIRPTA. 
(a) IN GENERAL.—Clause (ii) of section 897(h)(4)(A) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by subsection (a) 
shall take effect on January 1, 2012. Notwithstanding the pre-
ceding 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. 
(2) AMOUNTS WITHHELD ON OR BEFORE DATE OF ENACT-
MENT.—In the case of a regulated investment company— 
(A) which makes a distribution after December 31, 
2011, and before the date of the enactment of this Act; 
and 
(B) which would (but for the second sentence of para-
graph (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 with-
held and paid over to the Secretary of the Treasury. 
SEC. 322. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE 
FINANCING INCOME. 
(a) EXEMPT INSURANCE INCOME.—Paragraph (10) of section 
953(e) is amended— 
(1) by striking ‘‘January 1, 2012’’ and inserting ‘‘January 
1, 2014’’, and 
(2) by striking ‘‘December 31, 2011’’ and inserting 
‘‘December 31, 2013’’. 
(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, 2012’’ and 
inserting ‘‘January 1, 2014’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years of foreign corporations beginning after 
December 31, 2011, and to taxable years of United States share-
holders with or within which any such taxable year of such foreign 
corporation ends. 
Applicability. 
26 USC 953 note. 
26 USC 897 note. 
26 USC 871 note. 
26 USC 871. 
Applicability. 
26 USC 512 note. 
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126 STAT. 2333 
PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 323. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS 
BETWEEN RELATED CONTROLLED FOREIGN CORPORA-
TIONS UNDER FOREIGN PERSONAL HOLDING COMPANY 
RULES. 
(a) IN GENERAL.—Subparagraph (C) of section 954(c)(6) is 
amended by striking ‘‘January 1, 2012’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years of foreign corporations beginning after 
December 31, 2011, and to taxable years of United States share-
holders with or within which such taxable years of foreign corpora-
tions end. 
SEC. 324. 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, 2012’’ and inserting ‘‘January 
1, 2014’’, and 
(2) by striking ‘‘AND 2011’’ and inserting ‘‘, 2011, 2012, 
AND 2013’’ in the heading thereof. 
(b) TECHNICAL AMENDMENTS.— 
(1) SPECIAL RULE FOR 2009 AND CERTAIN PERIOD IN 2010.— 
Paragraph (3) of section 1202(a) is amended by adding at the 
end the following new flush sentence: 
‘‘In the case of any stock which would be described in the 
preceding sentence (but for this sentence), the acquisition date 
for purposes of this subsection shall be the first day on which 
such stock was held by the taxpayer determined after the 
application of section 1223.’’. 
(2) 100 PERCENT
EXCLUSION.—Paragraph (4) of section 
1202(a) is amended by adding at the end the following new 
flush sentence: 
‘‘In the case of any stock which would be described in the 
preceding sentence (but for this sentence), the acquisition date 
for purposes of this subsection shall be the first day on which 
such stock was held by the taxpayer determined after the 
application of section 1223.’’. 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by subsection 
(a) shall apply to stock acquired after December 31, 2011. 
(2) SUBSECTION (b)(1).—The amendment made by sub-
section (b)(1) shall take effect as if included in section 1241(a) 
of division B of the American Recovery and Reinvestment Act 
of 2009. 
(3) SUBSECTION (b)(2).—The amendment made by sub-
section (b)(2) shall take effect as if included in section 2011(a) 
of the Creating Small Business Jobs Act of 2010. 
SEC. 325. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S COR-
PORATIONS MAKING CHARITABLE CONTRIBUTIONS OF 
PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 1367(a) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to contributions made in taxable years beginning after 
December 31, 2011. 
Applicability. 
26 USC 1367 
note. 
26 USC 1202 
note. 
Applicability. 
Applicability. 
26 USC 954 note. 
26 USC 954. 
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PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 326. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNI-
TION PERIOD FOR BUILT-IN GAINS TAX. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) is amended— 
(1) by redesignating subparagraph (C) as subparagraph 
(D), and 
(2) by inserting after subparagraph (B) the following new 
subparagraph: 
‘‘(C) SPECIAL RULE FOR 2012 AND 2013.—For purposes 
of determining the net recognized built-in gain for taxable 
years beginning in 2012 or 2013, subparagraphs (A) and 
(D) shall be applied by substituting ‘5-year’ for ‘10-year’.’’, 
and 
(3) by adding at the end the following new subparagraph: 
‘‘(E) INSTALLMENT
SALES.—If an S corporation sells 
an asset and reports the income from the sale using the 
installment method under section 453, the treatment of 
all payments received shall be governed by the provisions 
of this paragraph applicable to the taxable year in which 
such sale was made.’’. 
(b) TECHNICAL
AMENDMENT.—Subparagraph (B) of section 
1374(d)(2) is amended by inserting ‘‘described in subparagraph (A)’’ 
after ‘‘, for any taxable year’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 327. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES. 
(a) IN GENERAL.—Clause (i) of section 1391(d)(1)(A) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) INCREASED EXCLUSION OF GAIN ON STOCK OF EMPOWERMENT 
ZONE
BUSINESSES.—Subparagraph (C) of section 1202(a)(2) is 
amended— 
(1) by striking ‘‘December 31, 2016’’ and inserting 
‘‘December 31, 2018’’; and 
(2) by striking ‘‘2016’’ in the heading and inserting ‘‘2018’’. 
(c) 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. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to periods after December 31, 2011. 
SEC. 328. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK LIB-
ERTY ZONE. 
(a) IN GENERAL.—Subparagraph (D) of section 1400L(d)(2) is 
amended by striking ‘‘January 1, 2012’’ and inserting ‘‘January 
1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to bonds issued after December 31, 2011. 
Applicability. 
26 USC 1400L 
note. 
Applicability. 
26 USC 1202 
note. 
26 USC 1391 
note. 
26 USC 1374 
note. 
Applicability. 
26 USC 1374. 
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126 STAT. 2335 
PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 329. 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, 2012’’ and inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to distilled spirits brought into the United States after 
December 31, 2011. 
SEC. 330. MODIFICATION AND EXTENSION OF AMERICAN SAMOA ECO-
NOMIC DEVELOPMENT CREDIT. 
(a) MODIFICATION.— 
(1) IN GENERAL.—Subsection (a) of section 119 of division 
A of the Tax Relief and Health Care Act of 2006 is amended 
by striking ‘‘if such corporation’’ and all that follows and 
inserting ‘‘if— 
‘‘(1) in the case of a taxable year beginning before January 
1, 2012, such corporation— 
‘‘(A) is an existing credit claimant with respect to Amer-
ican Samoa, and 
‘‘(B) elected the application of section 936 of the 
Internal Revenue Code of 1986 for its last taxable year 
beginning before January 1, 2006, and 
‘‘(2) in the case of a taxable year beginning after December 
31, 2011, such corporation meets the requirements of subsection 
(e).’’. 
(2) REQUIREMENTS.—Section 119 of division A of such Act 
is amended by adding at the end the following new subsection: 
‘‘(e) QUALIFIED
PRODUCTION
ACTIVITIES
INCOME
REQUIRE-
MENT.—A corporation meets the requirement of this subsection 
if such corporation has qualified production activities income, as 
defined in subsection (c) of section 199 of the Internal Revenue 
Code of 1986, determined by substituting ‘American Samoa’ for 
‘the United States’ each place it appears in paragraphs (3), (4), 
and (6) of such subsection (c), for the taxable year.’’. 
(b) EXTENSION.—Subsection (d) of section 119 of division A 
of the Tax Relief and Health Care Act of 2006 is amended by 
striking ‘‘shall apply’’ and all that follows and inserting ‘‘shall 
apply— 
‘‘(1) in the case of a corporation that meets the require-
ments of subparagraphs (A) and (B) of subsection (a)(1), to 
the first 8 taxable years of such corporation which begin after 
December 31, 2006, and before January 1, 2014, and 
‘‘(2) in the case of a corporation that does not meet the 
requirements of subparagraphs (A) and (B) of subsection (a)(1), 
to the first 2 taxable years of such corporation which begin 
after December 31, 2011, and before January 1, 2014.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2011. 
SEC. 331. EXTENSION AND MODIFICATION OF BONUS DEPRECIATION. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) is amended— 
(1) by striking ‘‘January 1, 2014’’ in subparagraph (A)(iv) 
and inserting ‘‘January 1, 2015’’, and 
(2) by striking ‘‘January 1, 2013’’ each place it appears 
and inserting ‘‘January 1, 2014’’. 
26 USC 30A note. 
26 USC 30A note. 
Applicability. 
26 USC 7652 
note. 
26 USC 7652. 
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126 STAT. 2336 
PUBLIC LAW 112–240—JAN. 2, 2013 
(b) SPECIAL RULE
FOR FEDERAL LONG-TERM CONTRACTS.— 
Clause (ii) of section 460(c)(6)(B) is amended by inserting ‘‘, or 
after December 31, 2012, and before January 1, 2014 (January 
1, 2015, in the case of property described in section 168(k)(2)(B))’’ 
before the period. 
(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 ‘‘2013’’ and inserting ‘‘2014’’. 
(2) ROUND 3 EXTENSION PROPERTY.—Paragraph (4) of sec-
tion 168(k) is amended by adding at the end the following 
new subparagraph: 
‘‘(J) SPECIAL
RULES
FOR
ROUND
3
EXTENSION
PROP-
ERTY.— 
‘‘(i) IN GENERAL.—In the case of round 3 extension 
property, this paragraph shall be applied without 
regard to— 
‘‘(I) the limitation described in subparagraph 
(B)(i) thereof, and 
‘‘(II) the business credit increase amount 
under subparagraph (E)(iii) thereof. 
‘‘(ii) TAXPAYERS PREVIOUSLY ELECTING ACCELERA-
TION.—In the case of a taxpayer who made the election 
under subparagraph (A) for its first taxable year ending 
after March 31, 2008, a taxpayer who made the election 
under subparagraph (H)(ii) for its first taxable year 
ending after December 31, 2008, or a taxpayer who 
made the election under subparagraph (I)(iii) for its 
first taxable year ending after December 31, 2010— 
‘‘(I) the taxpayer may elect not to have this 
paragraph apply to round 3 extension property, 
but 
‘‘(II) if the taxpayer does not make the election 
under subclause (I), in applying this paragraph 
to the taxpayer the bonus depreciation amount, 
maximum amount, and maximum increase amount 
shall be computed and applied to eligible qualified 
property which is round 3 extension property. 
The amounts described in subclause (II) shall be com-
puted separately from any amounts computed with 
respect to eligible qualified property which is not round 
3 extension property. 
‘‘(iii) TAXPAYERS NOT PREVIOUSLY ELECTING ACCEL-
ERATION.—In the case of a taxpayer who neither made 
the election under subparagraph (A) for its first taxable 
year ending after March 31, 2008, nor made the elec-
tion under subparagraph (H)(ii) for its first taxable 
year ending after December 31, 2008, nor made the 
election under subparagraph (I)(iii) for any taxable 
year ending after December 31, 2010— 
‘‘(I) the taxpayer may elect to have this para-
graph apply to its first taxable year ending after 
December 31, 2012, and each subsequent taxable 
year, and 
‘‘(II) if the taxpayer makes the election under 
subclause (I), this paragraph shall only apply to 
Applicability. 
Applicability. 
26 USC 460. 
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126 STAT. 2337 
PUBLIC LAW 112–240—JAN. 2, 2013 
eligible qualified property which is round 3 exten-
sion property. 
‘‘(iv) ROUND 3 EXTENSION PROPERTY.—For purposes 
of this subparagraph, the term ‘round 3 extension prop-
erty’ means property which is eligible qualified prop-
erty solely by reason of the extension of the application 
of the special allowance under paragraph (1) pursuant 
to the amendments made by section 331(a) of the Amer-
ican Taxpayer Relief Act of 2012 (and the application 
of such extension to this paragraph pursuant to the 
amendment made by section 331(c)(1) of such Act).’’. 
(d) NORMALIZATION RULES AMENDMENT.—Clause (ii) of section 
168(i)(9)(A) is amended by inserting ‘‘(respecting all elections made 
by the taxpayer under this section)’’ after ‘‘such property’’. 
(e) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (k) of section 168 is amended 
by striking ‘‘JANUARY 1, 2013’’ and inserting ‘‘JANUARY 1, 2014’’. 
(2) The heading for clause (ii) of section 168(k)(2)(B) is 
amended by striking ‘‘PRE-JANUARY 1, 2013’’ and inserting ‘‘PRE- 
JANUARY 1, 2014’’. 
(3) Subparagraph (C) of section 168(n)(2) is amended by 
striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 
(4) Subparagraph (D) of section 1400L(b)(2) is amended 
by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 
(5) Subparagraph (B) of section 1400N(d)(3) is amended 
by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after December 31, 2012, 
in taxable years ending after such date. 
TITLE IV—ENERGY TAX EXTENDERS 
SEC. 401. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING 
HOMES. 
(a) IN GENERAL.—Paragraph (2) of section 25C(g) is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2011. 
SEC. 402. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
REFUELING PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 30C(g) is amended 
by striking ‘‘December 31, 2011.’’ and inserting ‘‘December 31, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2011. 
SEC. 403. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN ELEC-
TRIC VEHICLES. 
(a) IN GENERAL.—Section 30D is amended by adding at the 
end the following new subsection: 
‘‘(g) CREDIT ALLOWED FOR 2- AND 3-WHEELED PLUG-IN ELECTRIC 
VEHICLES.— 
‘‘(1) IN GENERAL.—In the case of a qualified 2- or 3-wheeled 
plug-in electric vehicle— 
‘‘(A) there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount 
equal to the sum of the applicable amount with respect 
Applicability. 
26 USC 30C note. 
Applicability. 
26 USC 25C note. 
Applicability. 
26 USC 168 note. 
26 USC 168. 
Definition. 
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PUBLIC LAW 112–240—JAN. 2, 2013 
to each such qualified 2- or 3-wheeled plug-in electric 
vehicle placed in service by the taxpayer during the taxable 
year, and 
‘‘(B) the amount of the credit allowed under subpara-
graph (A) shall be treated as a credit allowed under sub-
section (a). 
‘‘(2) APPLICABLE AMOUNT.—For purposes of paragraph (1), 
the applicable amount is an amount equal to the lesser of— 
‘‘(A) 10 percent of the cost of the qualified 2- or 3- 
wheeled plug-in electric vehicle, or 
‘‘(B) $2,500. 
‘‘(3) QUALIFIED
2- 
OR
3-WHEELED
PLUG-IN
ELECTRIC 
VEHICLE.—The term ‘qualified 2- or 3-wheeled plug-in electric 
vehicle’ means any vehicle which— 
‘‘(A) has 2 or 3 wheels, 
‘‘(B) meets the requirements of subparagraphs (A), (B), 
(C), (E), and (F) of subsection (d)(1) (determined by sub-
stituting ‘2.5 kilowatt hours’ for ‘4 kilowatt hours’ in 
subparagraph (F)(i)), 
‘‘(C) is manufactured primarily for use on public 
streets, roads, and highways, 
‘‘(D) is capable of achieving a speed of 45 miles per 
hour or greater, and 
‘‘(E) is acquired after December 31, 2011, and before 
January 1, 2014.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) NO DOUBLE BENEFIT.—Paragraph (2) of section 30D(f) 
is amended— 
(A) by striking ‘‘new qualified plug-in electric drive 
motor vehicle’’ and inserting ‘‘vehicle for which a credit 
is allowable under subsection (a)’’, and 
(B) by striking ‘‘allowed under subsection (a)’’ and 
inserting ‘‘allowed under such subsection’’. 
(2) AIR QUALITY AND SAFETY STANDARDS.—Section 30D(f)(7) 
is amended by striking ‘‘motor vehicle’’ and inserting ‘‘vehicle’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to vehicles acquired after December 31, 2011. 
SEC. 404. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL 
PRODUCER CREDIT. 
(a) EXTENSION.— 
(1) IN GENERAL.—Subparagraph (H) of section 40(b)(6) is 
amended to read as follows: 
‘‘(H) APPLICATION OF PARAGRAPH.— 
‘‘(i) IN GENERAL.—This paragraph shall apply with 
respect to qualified cellulosic biofuel production after 
December 31, 2008, and before January 1, 2014. 
‘‘(ii) NO
CARRYOVER
TO
CERTAIN
YEARS
AFTER 
EXPIRATION.—If this paragraph ceases to apply for any 
period by reason of clause (i), rules similar to the 
rules of subsection (e)(2) shall apply.’’. 
(2) CONFORMING
AMENDMENT.—Paragraph (2) of section 
40(e) is amended by striking ‘‘or subsection (b)(6)(H)’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect as if included in section 15321(b) of 
the Heartland, Habitat, and Horticulture Act of 2008. 
(b) ALGAE TREATED AS A QUALIFIED FEEDSTOCK.— 
26 USC 40 note. 
Applicability. 
26 USC 30D 
note. 
26 USC 30D. 
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126 STAT. 2339 
PUBLIC LAW 112–240—JAN. 2, 2013 
(1) IN GENERAL.—Subclause (I) of section 40(b)(6)(E)(i) is 
amended to read as follows: 
‘‘(I) is derived by, or from, qualified feedstocks, 
and’’. 
(2) QUALIFIED
FEEDSTOCK; SPECIAL
RULES
FOR
ALGAE.— 
Paragraph (6) of section 40(b) is amended by redesignating 
subparagraphs (F), (G), and (H), as amended by this Act, as 
subparagraphs (H), (I), and (J), respectively, and by inserting 
after subparagraph (E) the following new subparagraphs: 
‘‘(F) QUALIFIED FEEDSTOCK.—For purposes of this para-
graph, the term ‘qualified feedstock’ means— 
‘‘(i) any lignocellulosic or hemicellulosic matter 
that is available on a renewable or recurring basis, 
and 
‘‘(ii) any cultivated algae, cyanobacteria, or lemna. 
‘‘(G) SPECIAL RULES FOR ALGAE.—In the case of fuel 
which is derived by, or from, feedstock described in 
subparagraph (F)(ii) and which is sold by the taxpayer 
to another person for refining by such other person into 
a fuel which meets the requirements of subparagraph 
(E)(i)(II) and the refined fuel is not excluded under subpara-
graph (E)(iii)— 
‘‘(i) such sale shall be treated as described in 
subparagraph (C)(i), 
‘‘(ii) such fuel shall be treated as meeting the 
requirements of subparagraph (E)(i)(II) and as not 
being excluded under subparagraph (E)(iii) in the 
hands of such taxpayer, and 
‘‘(iii) except as provided in this subparagraph, such 
fuel (and any fuel derived from such fuel) shall not 
be taken into account under subparagraph (C) with 
respect to the taxpayer or any other person.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 40, as amended by paragraph (2), is 
amended— 
(i) by striking ‘‘cellulosic biofuel’’ each place it 
appears in the text thereof and inserting ‘‘second 
generation biofuel’’, 
(ii) by striking ‘‘CELLULOSIC’’ in the headings of 
subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting 
‘‘SECOND GENERATION’’, and 
(iii) by striking ‘‘CELLULOSIC’’ in the headings of 
subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and 
(e)(3) and inserting ‘‘SECOND GENERATION’’. 
(B) Clause (ii) of section 40(b)(6)(E) is amended by 
striking ‘‘Such term shall not’’ and inserting ‘‘The term 
‘second generation biofuel’ shall not’’. 
(C) Paragraph (1) of section 4101(a) is amended by 
striking ‘‘cellulosic biofuel’’ and inserting ‘‘second genera-
tion biofuel’’. 
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to fuels sold or used after the date of 
the enactment of this Act. 
Applicability. 
26 USC 40 note. 
26 USC 40. 
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126 STAT. 2340 
PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 405. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEW-
ABLE DIESEL. 
(a) CREDITS FOR BIODIESEL AND RENEWABLE DIESEL USED AS 
FUEL.—Subsection (g) of section 40A is amended by striking 
‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) 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, 2011’’ and inserting ‘‘December 31, 2013’’. 
(2) Subparagraph (B) of section 6427(e)(6) is amended by 
striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 
2013’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel sold or used after December 31, 2011. 
SEC. 406. 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 ‘‘7-year period’’ each place it appears and 
inserting ‘‘8-year period’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to coal produced after December 31, 2012. 
SEC. 407. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT 
TO FACILITIES PRODUCING ENERGY FROM CERTAIN 
RENEWABLE RESOURCES. 
(a) PRODUCTION TAX CREDIT.— 
(1) EXTENSION FOR WIND FACILITIES.—Paragraph (1) of sec-
tion 45(d) is amended by striking ‘‘January 1, 2013’’ and 
inserting ‘‘January 1, 2014’’. 
(2) EXCLUSION OF PAPER WHICH IS COMMONLY RECYCLED 
FROM DEFINITION OF MUNICIPAL SOLID WASTE.—Section 45(c)(6) 
is amended by inserting ‘‘, except that such term does not 
include paper which is commonly recycled and which has been 
segregated from other solid waste (as so defined)’’ after ‘‘(42 
U.S.C. 6903)’’. 
(3) MODIFICATION TO DEFINITION OF QUALIFIED FACILITY.— 
(A) IN GENERAL.—The following provisions of section 
45(d), as amended by paragraph (1), are each amended 
by striking ‘‘before January 1, 2014’’ and inserting ‘‘the 
construction of which begins before January 1, 2014’’: 
(i) Paragraph (1). 
(ii) Paragraph (2)(A)(i). 
(iii) Paragraph (3)(A)(i)(I). 
(iv) Paragraph (6). 
(v) Paragraph (7). 
(vi) Paragraph (9)(B). 
(vii) Paragraph (11)(B). 
(B) 
CERTAIN
CLOSED-LOOP
BIOMASS
FACILITIES.— 
Subparagraph (A) of section 45(d)(2) is amended by adding 
at the end the following new flush sentence: 
‘‘For purposes of clause (ii), a facility shall be treated 
as modified before January 1, 2014, if the construction 
of such modification begins before such date.’’. 
Applicability. 
26 USC 45 note. 
Applicability. 
26 USC 40A note. 
26 USC 40A. 
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126 STAT. 2341 
PUBLIC LAW 112–240—JAN. 2, 2013 
(C) CERTAIN OPEN-LOOP BIOMASS FACILITIES.—Clause 
(ii) of section 45(d)(3)(A) is amended by striking ‘‘is origi-
nally placed in service’’ and inserting ‘‘the construction 
of which begins’’. 
(D) GEOTHERMAL FACILITIES.— 
(i) IN
GENERAL.—Paragraph (4) of section 45(d) 
is amended by striking ‘‘and before January 1, 2014’’ 
and all that follows and inserting ‘‘and which— 
‘‘(A) in the case of a facility using solar energy, is 
placed in service before January 1, 2006, or 
‘‘(B) in the case of a facility using geothermal energy, 
the construction of which begins before January 1, 2014. 
Such term shall not include any property described in section 
48(a)(3) the basis of which is taken into account by the taxpayer 
for purposes of determining the energy credit under section 
48.’’. 
(E) INCREMENTAL
HYDROPOWER
PRODUCTION.—Para-
graph (9) of section 45(d) is amended— 
(i) by redesignating subparagraphs (A) and (B), 
as amended by subparagraph (A), as clauses (i) and 
(ii), respectively, and by moving such clauses (as so 
redesignated) 2 ems to the right, 
(ii) by striking ‘‘In the case of a facility’’ and 
inserting the following: 
‘‘(A) IN GENERAL.—In the case of a facility’’, 
(iii) by redesignating subparagraph (C) as subpara-
graph (B), and 
(iv) by adding at the end the following new 
subparagraph: 
‘‘(C) SPECIAL
RULE.—For purposes of subparagraph 
(A)(i), an efficiency improvement or addition to capacity 
shall be treated as placed in service before January 1, 
2014, if the construction of such improvement or addition 
begins before such date.’’. 
(b) EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES 
AS ENERGY PROPERTY.—Subparagraph (C) of section 48(a)(5) is 
amended to read as follows: 
‘‘(C) QUALIFIED
INVESTMENT
CREDIT
FACILITY.—For 
purposes of this paragraph, the term ‘qualified investment 
credit facility’ means any facility— 
‘‘(i) which is a qualified facility (within the 
meaning of section 45) described in paragraph (1), (2), 
(3), (4), (6), (7), (9), or (11) of section 45(d), 
‘‘(ii) which is placed in service after 2008 and the 
construction of which begins before January 1, 2014, 
and 
‘‘(iii) with respect to which— 
‘‘(I) no credit has been allowed under section 
45, and 
‘‘(II) the taxpayer makes an irrevocable elec-
tion to have this paragraph apply.’’. 
(c) TECHNICAL CORRECTIONS.— 
(1) Subparagraph (D) of section 48(a)(5) is amended— 
(A) by striking ‘‘and’’ at the end of clause (i)(II), 
(B) by striking the period at the end of clause (ii) 
and inserting a comma, and 
(C) by adding at the end the following new clauses: 
26 USC 45. 
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126 STAT. 2342 
PUBLIC LAW 112–240—JAN. 2, 2013 
‘‘(iii) which is constructed, reconstructed, erected, 
or acquired by the taxpayer, and 
‘‘(iv) the original use of which commences with 
the taxpayer.’’. 
(2) Paragraphs (1) and (2) of subsection (a) of section 1603 
of division B of the American Recovery and Reinvestment Act 
of 2009 are each amended by striking ‘‘placed in service’’ and 
inserting ‘‘originally placed in service by such person’’. 
(d) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as provided in paragraphs (2) 
and (3), the amendments made by this section shall take effect 
on the date of the enactment of this Act. 
(2) MODIFICATION
TO
DEFINITION
OF
MUNICIPAL
SOLID 
WASTE.—The amendments made by subsection (a)(2) shall apply 
to electricity produced and sold after the date of the enactment 
of this Act, in taxable years ending after such date. 
(3) TECHNICAL CORRECTIONS.—The amendments made by 
subsection (c) shall apply as if included in the enactment of 
the provisions of the American Recovery and Reinvestment 
Act of 2009 to which they relate. 
SEC. 408. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES. 
(a) IN GENERAL.—Subsection (g) of section 45L is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’. 
(b) ENERGY SAVINGS REQUIREMENTS.—Clause (i) of section 
45L(c)(1)(A) is amended by striking ‘‘2003 International Energy 
Conservation Code, as such Code (including supplements) is in 
effect on the date of the enactment of this section’’and inserting 
‘‘2006 International Energy Conservation Code, as such Code 
(including supplements) is in effect on January 1, 2006’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to homes acquired after December 31, 2011. 
SEC. 409. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLI-
ANCES. 
(a) IN GENERAL.—Section 45M(b) is amended by striking ‘‘2011’’ 
each place it appears other than in the provisions specified in 
subsection (b) and inserting ‘‘2011, 2012, or 2013’’. 
(b) PROVISIONS SPECIFIED.—The provisions of section 45M(b) 
specified in this subsection are subparagraph (C) of paragraph 
(1) and subparagraph (E) of paragraph (2). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to appliances produced after December 31, 2011. 
SEC. 410. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE 
FOR CELLULOSIC BIOFUEL PLANT PROPERTY. 
(a) EXTENSION.— 
(1) IN GENERAL.—Subparagraph (D) of section 168(l)(2) is 
amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 
1, 2014’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to property placed in service after December 
31, 2012. 
(b) ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES 
OF BONUS DEPRECIATION FOR BIOFUEL PLANT PROPERTY.— 
(1) IN GENERAL.—Subparagraph (A) of section 168(l)(2) is 
amended by striking ‘‘solely to produce cellulosic biofuel’’ and 
Applicability. 
26 USC 168 note. 
Applicability. 
26 USC 45M 
note. 
Applicability. 
26 USC 45L note. 
26 USC 45L. 
Applicability. 
26 USC 45 note. 
26 USC 48 note. 
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126 STAT. 2343 
PUBLIC LAW 112–240—JAN. 2, 2013 
inserting ‘‘solely to produce second generation biofuel (as 
defined in section 40(b)(6)(E))’’. 
(2) CONFORMING AMENDMENTS.—Subsection (l) of section 
168, as amended by subsection (a), is amended— 
(A) by striking ‘‘cellulosic biofuel’’ each place it appears 
in the text thereof and inserting ‘‘second generation 
biofuel’’, 
(B) by striking paragraph (3) and redesignating para-
graphs (4) through (8) as paragraphs (3) through (7), 
respectively, 
(C) by striking ‘‘CELLULOSIC’’ in the heading of such 
subsection and inserting ‘‘SECOND GENERATION’’, and 
(D) by striking ‘‘CELLULOSIC’’ in the heading of para-
graph (2) and inserting ‘‘SECOND GENERATION’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to property placed in service after the date 
of the enactment of this Act. 
SEC. 411. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS 
TO IMPLEMENT FERC OR STATE ELECTRIC RESTRUC-
TURING POLICY FOR QUALIFIED ELECTRIC UTILITIES. 
(a) IN GENERAL.—Paragraph (3) of section 451(i) is amended 
by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 2014’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to dispositions after December 31, 2011. 
SEC. 412. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS. 
(a) IN GENERAL.—Sections 6426(d)(5) and 6426(e)(3) are each 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2013’’. 
(b) OUTLAY PAYMENTS FOR ALTERNATIVE FUELS.—Paragraph 
(6) of section 6427(e) is amended— 
(1) in subparagraph (C)— 
(A) by striking ‘‘or alternative fuel mixture (as defined 
in subsection (d)(2) or (e)(3) of section 6426)’’ and inserting 
‘‘(as defined in section 6426(d)(2))’’, and 
(B) by striking ‘‘December 31, 2011, and’’ and inserting 
‘‘December 31, 2013,’’, 
(2) in subparagraph (D)— 
(A) by striking ‘‘or alternative fuel mixture’’, and 
(B) by striking the period at the end and inserting 
‘‘, and’’, and 
(3) by adding at the end the following new subparagraph: 
‘‘(E) any alternative fuel mixture (as defined in section 
6426(e)(2)) sold or used after December 31, 2011.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel sold or used after December 31, 2011. 
TITLE V—UNEMPLOYMENT 
SEC. 501. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSA-
TION PROGRAM. 
(a) EXTENSION.—Section 4007(a)(2) of the Supplemental Appro-
priations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) 
is amended by striking ‘‘January 2, 2013’’ and inserting ‘‘January 
1, 2014’’. 
Applicability. 
26 USC 6426 
note. 
Applicability. 
26 USC 451 note. 
Applicability. 
26 USC 168 note. 
26 USC 168. 
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126 STAT. 2344 
PUBLIC LAW 112–240—JAN. 2, 2013 
(b) FUNDING.—Section 4004(e)(1) of the Supplemental Appro-
priations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) 
is amended— 
(1) in subparagraph (H), by striking ‘‘and’’ at the end; 
and 
(2) by inserting after subparagraph (I) the following: 
‘‘(J) the amendments made by section 501(a) of the 
American Taxpayer Relief Act of 2012;’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the enactment of the Unemploy-
ment Benefits Extension Act of 2012 (Public Law 112–96) 
SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVI-
SIONS. 
(a) 
IN
GENERAL.—Section 
2005 
of 
the 
Assistance 
for 
Unemployed Workers and Struggling Families Act, as contained 
in Public Law 111–5 (26 U.S.C. 3304 note), is amended— 
(1) by striking ‘‘December 31, 2012’’ each place it appears 
and inserting ‘‘December 31, 2013’’; and 
(2) in subsection (c), by striking ‘‘June 30, 2013’’ and 
inserting ‘‘June 30, 2014’’. 
(b) EXTENSION OF MATCHING FOR STATES WITH NO WAITING 
WEEK.—Section 5 of the Unemployment Compensation Extension 
Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended 
by striking ‘‘June 30, 2013’’ and inserting ‘‘June 30, 2014’’. 
(c) EXTENSION OF MODIFICATION OF INDICATORS UNDER THE 
EXTENDED BENEFIT PROGRAM.—Section 203 of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
3304 note) is amended— 
(1) in subsection (d), by striking ‘‘December 31, 2012’’ and 
inserting ‘‘December 31, 2013’’; and 
(2) in subsection (f)(2), by striking ‘‘December 31, 2012’’ 
and inserting ‘‘December 31, 2013’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the enactment of the Unemploy-
ment Benefits Extension Act of 2012 (Public Law 112–96). 
SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES 
AND REEMPLOYMENT AND ELIGIBILITY ASSESSMENT 
ACTIVITIES. 
(a) IN GENERAL.—Section 4004(c)(2)(A) of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
note) is amended by striking ‘‘through fiscal year 2013’’ and 
inserting ‘‘through fiscal year 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the enactment of the Unemploy-
ment Benefits Extension Act of 2012 (Public Law 112–96). 
SEC. 504. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER 
THE RAILROAD UNEMPLOYMENT INSURANCE ACT. 
(a) 
EXTENSION.—Section 
2(c)(2)(D)(iii) 
of 
the 
Railroad 
Unemployment Insurance Act, as added by section 2006 of the 
American Recovery and Reinvestment Act of 2009 (Public Law 
111–5) and as amended by section 9 of the Worker, Homeownership, 
and Business Assistance Act of 2009 (Public Law 111–92), section 
505 of the Tax Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010 (Public Law 111–312), section 202 
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public 
26 USC 3304 
note. 
26 USC 3304 
note. 
26 USC 3304 
note. 
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126 STAT. 2345 
PUBLIC LAW 112–240—JAN. 2, 2013 
Law 112–78), and section 2124 of the Unemployment Benefits 
Extension Act of 2012 (Public Law 112–96), is amended— 
(1) by striking ‘‘June 30, 2012’’ and inserting ‘‘June 30, 
2013’’; and 
(2) by striking ‘‘December 31, 2012’’ and inserting 
‘‘December 31, 2013’’. 
(b) CLARIFICATION
ON
AUTHORITY
TO
USE
FUNDS.—Funds 
appropriated under either the first or second sentence of clause 
(iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance 
Act shall be available to cover the cost of additional extended 
unemployment benefits provided under such section 2(c)(2)(D) by 
reason of the amendments made by subsection (a) as well as to 
cover the cost of such benefits provided under such section 
2(c)(2)(D), as in effect on the day before the date of enactment 
of this Act. 
(c) FUNDING FOR ADMINISTRATION.—Out of any funds in the 
Treasury not otherwise appropriated, there are appropriated to 
the Railroad Retirement Board $250,000 for administrative 
expenses associated with the payment of additional extended 
unemployment benefits provided under section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act by reason of the amend-
ments made by subsection (a), to remain available until expended. 
TITLE VI—MEDICARE AND OTHER 
HEALTH EXTENSIONS 
Subtitle A—Medicare Extensions 
SEC. 601. MEDICARE PHYSICIAN PAYMENT UPDATE. 
(a) IN GENERAL.—Section 1848(d) of the Social Security Act 
(42 U.S.C. 1395w–4(d)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(14) UPDATE FOR 2013.— 
‘‘(A) IN GENERAL.—Subject to paragraphs (7)(B), (8)(B), 
(9)(B), (10)(B), (11)(B), (12)(B), and (13)(B), in lieu of the 
update to the single conversion factor established in para-
graph (1)(C) that would otherwise apply for 2013, the 
update to the single conversion factor for such year shall 
be zero percent. 
‘‘(B) NO
EFFECT
ON
COMPUTATION
OF
CONVERSION 
FACTOR FOR 2014 AND SUBSEQUENT YEARS.—The conversion 
factor under this subsection shall be computed under para-
graph (1)(A) for 2014 and subsequent years as if subpara-
graph (A) had never applied.’’. 
(b) ADVANCEMENT OF CLINICAL DATA REGISTRIES TO IMPROVE 
THE QUALITY OF HEALTH CARE.— 
(1) IN GENERAL.—Section 1848(m)(3) of the Social Security 
Act (42 U.S.C. 1395w–4(m)(3)) is amended— 
(A) by redesignating subparagraph (D) as subpara-
graph (F); and 
(B) by inserting after subparagraph (C) the following 
new subparagraphs: 
‘‘(D) SATISFACTORY
REPORTING
MEASURES
THROUGH 
PARTICIPATION IN A QUALIFIED CLINICAL DATA REGISTRY.— 
For 2014 and subsequent years, the Secretary shall treat 
45 USC 352 note. 
45 USC 352. 
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126 STAT. 2346 
PUBLIC LAW 112–240—JAN. 2, 2013 
an eligible professional as satisfactorily submitting data 
on quality measures under subparagraph (A) if, in lieu 
of reporting measures under subsection (k)(2)(C), the 
eligible professional is satisfactorily participating, as deter-
mined by the Secretary, in a qualified clinical data registry 
(as described in subparagraph (E)) for the year. 
‘‘(E) QUALIFIED CLINICAL DATA REGISTRY.— 
‘‘(i) IN
GENERAL.—The Secretary shall establish 
requirements for an entity to be considered a qualified 
clinical data registry. Such requirements shall include 
a requirement that the entity provide the Secretary 
with such information, at such times, and in such 
manner, as the Secretary determines necessary to carry 
out this subsection. 
‘‘(ii) CONSIDERATIONS.—In establishing the require-
ments under clause (i), the Secretary shall consider 
whether an entity— 
‘‘(I) has in place mechanisms for the trans-
parency of data elements and specifications, risk 
models, and measures; 
‘‘(II) requires the submission of data from 
participants with respect to multiple payers; 
‘‘(III) provides timely performance reports to 
participants at the individual participant level; and 
‘‘(IV) supports quality improvement initiatives 
for participants. 
‘‘(iii) MEASURES.—With respect to measures used 
by a qualified clinical data registry— 
‘‘(I) sections 1890(b)(7) and 1890A(a) shall not 
apply; and 
‘‘(II) measures endorsed by the entity with 
a contract with the Secretary under section 1890(a) 
may be used. 
‘‘(iv) CONSULTATION.—In carrying out this subpara-
graph, the Secretary shall consult with interested par-
ties. 
‘‘(v) DETERMINATION.—The Secretary shall estab-
lish a process to determine whether or not an entity 
meets the requirements established under clause (i). 
Such process may involve one or both of the following: 
‘‘(I) A determination by the Secretary. 
‘‘(II) A designation by the Secretary of one 
or more independent organizations to make such 
determination.’’. 
(2) GAO STUDY AND REPORT ON INCORPORATING REGISTRY 
DATA
INTO
THE
MEDICARE
PROGRAM
IN
ORDER
TO
IMPROVE 
QUALITY AND EFFICIENCY.— 
(A) STUDY.—The Comptroller General of the United 
States shall conduct a study on the potential of clinical 
data registries to improve the quality and efficiency of 
care in the Medicare program, including through payment 
system incentives. Such study shall include an analysis 
of the role of health information technology in facilitating 
clinical data registries and the use of data from such reg-
istries among private health insurers as well as other enti-
ties the Comptroller General determines appropriate. 
Process. 
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126 STAT. 2347 
PUBLIC LAW 112–240—JAN. 2, 2013 
(B) REPORT.—Not later than November 15, 2013, the 
Comptroller General of the United States shall submit 
to Congress a report on the study conducted under subpara-
graph (A), together with recommendations for such legisla-
tion and administrative action as the Comptroller General 
determines appropriate. 
SEC. 602. WORK GEOGRAPHIC ADJUSTMENT. 
Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
1395w–4(e)(1)(E)) is amended by striking ‘‘before January 1, 2013’’ 
and inserting ‘‘before January 1, 2014’’. 
SEC. 603. PAYMENT FOR OUTPATIENT THERAPY SERVICES. 
(a) EXTENSION.—Section 1833(g) of the Social Security Act (42 
U.S.C. 1395l(g)) is amended— 
(1) in paragraph (5)(A), in the first sentence, by striking 
‘‘December 31, 2012’’ and inserting ‘‘December 31, 2013’’; and 
(2) in paragraph (6)— 
(A) by striking ‘‘December 31, 2012’’ and inserting 
‘‘December 31, 2013’’; and 
(B) by inserting ‘‘or 2013’’ after ‘‘during 2012’’. 
(b) APPLICATION OF THERAPY CAP TO THERAPY FURNISHED AS 
PART OF OUTPATIENT CRITICAL ACCESS HOSPITAL SERVICES.—Sec-
tion 1833(g)(6) of the Social Security Act (42 U.S.C. 1395l(g)(6)), 
as amended by subsection (a), is amended— 
(1) by striking ‘‘In applying’’ and inserting ‘‘(A) In applying’’; 
and 
(2) by adding at the end the following new subparagraph: 
‘‘(B)(i) With respect to outpatient therapy services furnished 
beginning on or after January 1, 2013, and before January 1, 
2014, for which payment is made under section 1834(g), the Sec-
retary shall count toward the uniform dollar limitations described 
in paragraphs (1) and (3) and the threshold described in paragraph 
(5)(C) the amount that would be payable under this part if such 
services were paid under section 1834(k)(1)(B) instead of being 
paid under section 1834(g). 
‘‘(ii) Nothing in clause (i) shall be construed as changing the 
method of payment for outpatient therapy services under section 
1834(g).’’. 
(c) BENEFICIARY PROTECTIONS.—Section 1833(g)(5) of the Social 
Security Act (42 U.S.C. 1395l(g)(5)) is amended by adding at the 
end the following new subparagraph: 
‘‘(D) With respect to services furnished on or after January 
1, 2013, where payment may not be made as a result of application 
of paragraphs (1) and (3), section 1879 shall apply in the same 
manner as such section applies to a denial that is made by reason 
of section 1862(a)(1).’’. 
(d) IMPLEMENTATION.—Notwithstanding any other provision of 
law, the Secretary of Health and Human Services may implement 
the provisions of, and the amendments made by, this section by 
program instruction or otherwise. 
SEC. 604. AMBULANCE ADD-ON PAYMENTS. 
(a) GROUND AMBULANCE.—Section 1834(l)(13)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended— 
(1) in the matter preceding clause (i), by striking ‘‘January 
1, 2013’’ and inserting ‘‘January 1, 2014’’; and 
42 USC 1395l 
note. 
Applicability. 
Time period. 
Recommenda- 
tions. 
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126 STAT. 2348 
PUBLIC LAW 112–240—JAN. 2, 2013 
(2) in each of clauses (i) and (ii), by striking ‘‘January 
1, 2013’’ and inserting ‘‘January 1, 2014’’ each place it appears. 
(b) AIR
AMBULANCE.—Section 146(b)(1) of the Medicare 
Improvements for Patients and Providers Act of 2008 (Public Law 
110–275), as amended by sections 3105(b) and 10311(b) of the 
Patient Protection and Affordable Care Act (Public Law 111–148), 
section 106(b) of the Medicare and Medicaid Extenders Act of 2010 
(Public Law 111–309), section 306(b) of the Temporary Payroll 
Tax Cut Continuation Act of 2011 (Public Law 112–78), and section 
3007(b) of the Middle Class Tax Relief and Job Creation Act of 
2012 (Public Law 112–96), is amended by striking ‘‘December 31, 
2012’’ and inserting ‘‘June 30, 2013’’. 
(c) SUPER RURAL AMBULANCE.—Section 1834(l)(12)(A) of the 
Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended in the 
first sentence by striking ‘‘January 1, 2013’’ and inserting ‘‘January 
1, 2014’’. 
(d) STUDIES OF AMBULANCE COSTS.— 
(1) IN GENERAL.—The Secretary of Health and Health and 
Human Services (in this subsection referred to as the ‘‘Sec-
retary’’) shall conduct a study of each of the following: 
(A) A study that analyzes data on existing cost reports 
for ambulance services furnished by hospitals and critical 
access hospitals, including variation by characteristics of 
such providers of services. 
(B) A study of the feasibility of obtaining cost data 
on a periodic basis from all ambulance providers of services 
and suppliers for potential use in examining the appro-
priateness of the Medicare add-on payments for ground 
ambulance services furnished under the fee schedule under 
section 1834(l) of the Social Security Act (42 U.S.C. 
1395m(l)) and in preparing for future reform of such pay-
ment system. 
(2) COMPONENTS OF ONE OF THE STUDIES.—In conducting 
the study under paragraph (1)(B), the Secretary shall— 
(A) consult with industry on the design of such cost 
collection efforts; 
(B) explore use of cost surveys and cost reports to 
collect appropriate cost data and the periodicity of such 
cost data collection; 
(C) examine the feasibility of development of a 
standard cost reporting tool for providers of services and 
suppliers of ground ambulance services; and 
(D) examine the ability to furnish such cost data by 
various types of ambulance providers of services and sup-
pliers, especially by rural and super-rural providers of serv-
ices and suppliers. 
(3) REPORTS.— 
(A) EXISTING COST REPORTS.—Not later than October 
1, 2013, the Secretary shall submit a report to Congress 
on the study conducted under paragraph (1)(A), together 
with recommendations for such legislation and administra-
tive action as the Secretary determines appropriate. 
(B) OBTAINING
COST
DATA.—Not later than July 1, 
2014, the Secretary shall submit a report to Congress on 
the study conducted under paragraph (1)(B), together with 
recommendations for such legislation and administrative 
action as the Secretary determines appropriate. 
Recommenda- 
tions. 
Consultation. 
42 USC 1395m 
note. 
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126 STAT. 2349 
PUBLIC LAW 112–240—JAN. 2, 2013 
SEC. 605. EXTENSION OF MEDICARE INPATIENT HOSPITAL PAYMENT 
ADJUSTMENT FOR LOW-VOLUME HOSPITALS. 
Section 1886(d)(12) of the Social Security Act (42 U.S.C. 
1395ww(d)(12)) is amended— 
(1) in subparagraph (B), in the matter preceding clause 
(i), by striking ‘‘2013’’ and inserting ‘‘2014’’; 
(2) in subparagraph (C)(i), by striking ‘‘and 2012’’ each 
place it appears and inserting ‘‘, 2012, and 2013’’; and 
(3) in subparagraph (D), by striking ‘‘and 2012’’ and 
inserting ‘‘, 2012, and 2013’’. 
SEC. 606. EXTENSION OF THE MEDICARE-DEPENDENT HOSPITAL (MDH) 
PROGRAM. 
(a) 
EXTENSION
OF
PAYMENT
METHODOLOGY.—Section 
1886(d)(5)(G) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(G)) 
is amended— 
(1) in clause (i), by striking ‘‘October 1, 2012’’ and inserting 
‘‘October 1, 2013’’; and 
(2) in clause (ii)(II), by striking ‘‘October 1, 2012’’ and 
inserting ‘‘October 1, 2013’’. 
(b) CONFORMING AMENDMENTS.— 
(1) EXTENSION OF TARGET AMOUNT.—Section 1886(b)(3)(D) 
of the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is 
amended— 
(A) in the matter preceding clause (i), by striking 
‘‘October 1, 2012’’ and inserting ‘‘October 1, 2013’’; and 
(B) in clause (iv), by striking ‘‘through fiscal year 2012’’ 
and inserting ‘‘through fiscal year 2013’’. 
(2) PERMITTING HOSPITALS TO DECLINE RECLASSIFICATION.— 
Section 13501(e)(2) of the Omnibus Budget Reconciliation Act 
of 1993 (42 U.S.C. 1395ww note) is amended by striking 
‘‘through fiscal year 2012’’ and inserting ‘‘through fiscal year 
2013’’. 
SEC. 607. EXTENSION FOR SPECIALIZED MEDICARE ADVANTAGE 
PLANS FOR SPECIAL NEEDS INDIVIDUALS. 
Section 1859(f)(1) of the Social Security Act (42 U.S.C. 1395w– 
28(f)(1)) is amended by striking ‘‘2014’’ and inserting ‘‘2015’’. 
SEC. 608. EXTENSION OF MEDICARE REASONABLE COST CONTRACTS. 
Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C. 
1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause 
(I), by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. 
SEC. 609. PERFORMANCE IMPROVEMENT. 
(a) EXTENSION OF FUNDING FOR CONTRACT WITH CONSENSUS- 
BASED ENTITY REGARDING PERFORMANCE MEASUREMENT.— 
(1) IN GENERAL.—Section 1890(d) of the Social Security 
Act (42 U.S.C. 1395aaa(d)) is amended by striking ‘‘fiscal years 
2009 through 2012’’ and inserting ‘‘fiscal years 2009 through 
2013’’. 
(2) REVISION
TO
DUTIES.—Section 1890(b) of the Social 
Security Act (42 U.S.C. 1395aaa(b)) is amended by striking 
paragraph (4). 
(b) PROVIDING DATA
FOR PERFORMANCE IMPROVEMENT
IN
A 
TIMELY MANNER.— 
(1) IN
GENERAL.—The Secretary of Health and Human 
Services (in this subsection referred to as the ‘‘Secretary’’) shall 
Strategy. 
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126 STAT. 2350 
PUBLIC LAW 112–240—JAN. 2, 2013 
develop a strategy to provide data for performance improvement 
in a timely manner to applicable providers under the Medicare 
program under title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.), including with respect to the provision of the 
following: 
(A) Utilization data, including such data for items and 
services under parts A, B, and D of the Medicare program. 
(B) Feedback on quality data submitted by the 
applicable provider under the Medicare program. 
(2) CONSIDERATIONS.—In developing the strategy under 
paragraph (1), the Secretary shall consider— 
(A) the type of applicable provider receiving the data; 
(B) the frequency of providing the data so that it can 
be the most relevant in improving provider performance; 
(C) risk adjustment methods; 
(D) presentation of the data in a meaningful manner 
and easily understandable format; 
(E) with respect to utilization data, the provision of 
data that the Secretary determines would be useful to 
improve the performance of the type of applicable provider 
involved; and 
(F) administrative costs involved with providing data. 
(3) SUBMISSION AND AVAILABILITY OF INITIAL STRATEGY.— 
Not later than 1 year after the date of the enactment of this 
Act, the Secretary shall— 
(A) submit to the relevant committees of Congress 
the strategy described in paragraph (1); and 
(B) post such strategy on the website of the Centers 
for Medicare & Medicaid Services. 
(4) STRATEGY UPDATE.— 
(A) FEEDBACK
FROM
STAKEHOLDERS.—The Secretary 
shall seek feedback from stakeholders on the initial 
strategy submitted under paragraph (3). 
(B) STRATEGY UPDATE.—The Secretary shall— 
(i) update the strategy described in paragraph (1) 
based on the feedback submitted under subparagraph 
(A); and 
(ii) not later than 18 months after the date of 
the enactment of this Act— 
(I) submit such updated strategy to the rel-
evant committees of Congress; and 
(II) post such updated strategy on the website 
of the Centers for Medicare & Medicaid Services. 
(5) GAO STUDY AND REPORT ON PRIVATE SECTOR INFORMA-
TION SHARING ACTIVITIES.— 
(A) STUDY.—The Comptroller General of the United 
States (in this paragraph referred to as the ‘‘Comptroller 
General’’) shall conduct a study on information sharing 
activities. Such study shall include an analysis of— 
(i) how private sector entities share timely data 
with hospitals, physicians, and other providers and 
what lessons can be learned from those activities; 
(ii) how the Medicare program currently shares 
data with providers, including what data is provided 
and to which providers, and what divisions within 
the Centers for Medicare & Medicaid Services oversee 
those efforts; 
Deadline. 
Web posting. 
Deadline. 
Web posting. 
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126 STAT. 2351 
PUBLIC LAW 112–240—JAN. 2, 2013 
(iii) what, if any, differences there are between 
the private sector and the Medicare program under 
title XVIII of the Social Security Act (42 U.S.C. 1395 
et seq.) in terms of sharing data; and 
(iv) what, if any, barriers there are for the Centers 
for Medicare & Medicaid Services to sharing timely 
data with applicable providers and recommendations 
to eliminate or reduce such barriers. 
(B) REPORT.—Not later than 8 months after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the relevant committees of Congress a report 
containing the results of the study conducted under 
subparagraph (A), together with recommendations for such 
legislation and administrative action as the Comptroller 
General determines appropriate. 
(6) DEFINITIONS.—In this subsection: 
(A) APPLICABLE PROVIDER.—The term ‘‘applicable pro-
vider’’ means the following: 
(i) A critical access hospital (as defined in section 
1861(mm)(1) of the Social Security Act (42 U.S.C. 
1395xx(mm)(1))). 
(ii) A hospital (as defined in section 1861(e) of 
such Act (42 U.S.C. 1395x(e))). 
(iii) A physician (as defined in section 1861(r) of 
such Act (42 U.S.C. 1395x(r))). 
(iv) Any other provider the Secretary determines 
should receive the information described in subsection 
(a). 
(B) PERFORMANCE IMPROVEMENT.—The term ‘‘perform-
ance improvement’’ means improvements in quality, 
reducing per capita costs, and other criteria the Secretary 
determines appropriate. 
SEC. 610. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR 
LOW-INCOME PROGRAMS. 
(a) ADDITIONAL FUNDING FOR STATE HEALTH INSURANCE PRO-
GRAMS.—Subsection (a)(1)(B) of section 119 of the Medicare 
Improvements for Patients and Providers Act of 2008 (42 U.S.C. 
1395b–3 note), as amended by section 3306 of the Patient Protection 
and Affordable Care Act Public Law 111–148), is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (ii) the following new clause: 
‘‘(iii) for fiscal year 2013, of $7,500,000.’’. 
(b) ADDITIONAL FUNDING
FOR AREA AGENCIES
ON AGING.— 
Subsection (b)(1)(B) of such section 119, as so amended, is 
amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (ii) the following new clause: 
‘‘(iii) for fiscal year 2013, of $7,500,000.’’. 
(c) ADDITIONAL FUNDING FOR AGING AND DISABILITY RESOURCE 
CENTERS.—Subsection (c)(1)(B) of such section 119, as so amended, 
is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
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126 STAT. 2352 
PUBLIC LAW 112–240—JAN. 2, 2013 
(2) in clause (ii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (ii) the following new clause: 
‘‘(iii) for fiscal year 2013, of $5,000,000.’’. 
(d) ADDITIONAL FUNDING FOR CONTRACT WITH THE NATIONAL 
CENTER FOR BENEFITS AND OUTREACH ENROLLMENT.—Subsection 
(d)(2) of such section 119, as so amended, is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (ii) the following new clause: 
‘‘(iii) for fiscal year 2013, of $5,000,000.’’. 
Subtitle B—Other Health Extensions 
SEC. 621. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM. 
(a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ‘‘2012’’ 
and inserting ‘‘2013’’. 
(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR ALLOCATION.— 
Section 1933(g) of such Act (42 U.S.C. 1396u–3(g)) is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (Q), by striking ‘‘and’’ after the 
semicolon; 
(B) in subparagraph (R), by striking the period at 
the end and inserting a semicolon; and 
(C) by adding at the end the following new subpara-
graphs: 
‘‘(S) for the period that begins on January 1, 2013, 
and ends on September 30, 2013, the total allocation 
amount is $485,000,000; and 
‘‘(T) for the period that begins on October 1, 2013, 
and ends on December 31, 2013, the total allocation amount 
is $300,000,000.’’; and 
(2) in paragraph (3), in the matter preceding subparagraph 
(A), by striking ‘‘or (R)’’ and inserting ‘‘(R), or (T)’’. 
SEC. 622. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA). 
Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act 
(42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are each amended by striking 
‘‘2012’’ and inserting ‘‘2013’’. 
SEC. 623. EXTENSION OF MEDICAID AND CHIP EXPRESS LANE OPTION. 
Section 1902(e)(13)(I) of the Social Security Act (42 U.S.C. 
1396a(e)(13)(I)) is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 
SEC. 624. EXTENSION OF FAMILY-TO-FAMILY HEALTH INFORMATION 
CENTERS. 
Section 501(c)(1)(A)(iii) of the Social Security Act (42 U.S.C. 
701(c)(1)(A)(iii)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 
SEC. 625. EXTENSION OF SPECIAL DIABETES PROGRAM FOR TYPE I 
DIABETES AND FOR INDIANS. 
(a) SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES.—Sec-
tion 330B(b)(2)(C) of the Public Health Service Act (42 U.S.C. 254c– 
2(b)(2)(C)) is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 
Time periods. 
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126 STAT. 2353 
PUBLIC LAW 112–240—JAN. 2, 2013 
(b) SPECIAL
DIABETES
PROGRAMS
FOR
INDIANS.—Section 
330C(c)(2)(C) of the Public Health Service Act (42 U.S.C. 254c– 
3(c)(2)(C)) is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 
Subtitle C—Other Health Provisions 
SEC. 631. IPPS DOCUMENTATION AND CODING ADJUSTMENT FOR 
IMPLEMENTATION OF MS-DRGS. 
(a) RULE OF CONSTRUCTION AND CLARIFICATION.— 
(1) RULE OF CONSTRUCTION.—Nothing in the amendments 
made by subsection (b) shall be construed as changing the 
existing authority under section 1886(d) of the Social Security 
Act (42 U.S.C. 1395ww(d)) to make prospective documentation 
and coding adjustments to the standardized amounts under 
such section 1886(d) to correct for changes in the coding or 
classification of discharges that do not reflect real changes 
in case mix. 
(2) CLARIFICATION.—Effective on the date of the enactment 
of this section, except as provided in section 7(b)(1)(B)(ii) of 
the TMA, Abstinence Education, and QI Programs Extension 
Act of 2007, as added by subsection (b)(2)(A)(ii)(IV) of this 
section, the Secretary of Health and Human Services shall 
not have authority to fully recoup past overpayments related 
to documentation and coding changes from fiscal years 2008 
and 2009. 
(b) ADJUSTMENT.—Section 7 of the TMA, Abstinence Education, 
and QI Programs Extension Act of 2007 (Public Law 110–90; 121 
Stat. 986) is amended— 
(1) in the heading, by striking ‘‘LIMITATION’’ and all that 
follows through ‘‘ADJUSTMENT’’ and inserting ‘‘DOCUMENTATION 
AND CODING ADJUSTMENTS’’; and 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) in the matter before subparagraph (A)— 
(I) by striking ‘‘or 2009’’ and inserting ‘‘, 2009, 
or 2010’’; and 
(II) by inserting ‘‘or otherwise applied for such 
year’’ after ‘‘applied under subsection (a)’’; and 
(ii) in subparagraph (B)— 
(I) by inserting ‘‘(i)’’ after ‘‘(B)’’; 
(II) by striking ‘‘or decrease’’; 
(III) by striking the period at the end and 
inserting ‘‘; and’’; and 
(IV) by adding at the end the following: 
‘‘(ii) make an additional adjustment to the standardized 
amounts under such section 1886(d) based upon the Sec-
retary’s estimates for discharges occurring only during 
fiscal years 2014, 2015, 2016, and 2017 to fully offset 
$11,000,000,000 (which represents the amount of the 
increase in aggregate payments from fiscal years 2008 
through 2013 for which an adjustment was not previously 
applied).’’; and 
(B) in paragraph (3)— 
(i) in subparagraph (A), by inserting before the 
semicolon the following: ‘‘or affecting the Secretary’s 
authority under such paragraph to apply a prospective 
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126 STAT. 2354 
PUBLIC LAW 112–240—JAN. 2, 2013 
adjustment to offset aggregate additional payments 
related to documentation and coding improvements 
made with respect to discharges during fiscal year 
2010’’; and 
(ii) in subparagraph (B), by striking ‘‘and 2012’’ 
and inserting ‘‘2012, 2014, 2015, 2016, and 2017’’. 
SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT 
SYSTEM TO REFLECT FINDINGS IN THE GAO REPORT. 
(a) ADJUSTMENT
TO
ESRD BUNDLED
PAYMENT
RATE
TO 
ACCOUNT FOR CHANGES IN THE UTILIZATION OF CERTAIN DRUGS 
AND BIOLOGICALS.—Section 1881(b)(14) of the Social Security Act 
(42 U.S.C. 1395rr(b)(14)) is amended by adding at the end the 
following new subparagraph: 
‘‘(I) For services furnished on or after January 1, 2014, the 
Secretary shall, by comparing per patient utilization data from 
2007 with such data from 2012, make reductions to the single 
payment that would otherwise apply under this paragraph for renal 
dialysis services to reflect the Secretary’s estimate of the change 
in the utilization of drugs and biologicals described in clauses 
(ii), (iii), and (iv) of subparagraph (B) (other than oral-only ESRD- 
related drugs, as such term is used in the final rule promulgated 
by the Secretary in the Federal Register on August 12, 2010 (75 
Fed. Reg. 49030)). In making reductions under the preceding sen-
tence, the Secretary shall take into account the most recently avail-
able data on average sales prices and changes in prices for drugs 
and biological reflected in the ESRD market basket percentage 
increase factor under subparagraph (F).’’. 
(b) TWO-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY ESRD- 
RELATED DRUGS
IN
THE ESRD PROSPECTIVE PAYMENT SYSTEM; 
MONITORING.— 
(1) DELAY.—The Secretary of Health and Human Services 
may not implement the policy under section 413.174(f)(6) of 
title 42, Code of Federal Regulations (relating to oral-only 
ESRD-related drugs in the ESRD prospective payment system), 
prior to January 1, 2016. 
(2) MONITORING.—With respect to the implementation of 
oral-only ESRD-related drugs in the ESRD prospective payment 
system under subsection (b)(14) of section 1881 of the Social 
Security Act (42 U.S.C. 1395rr(b)(14)), the Secretary of Health 
and Human Services shall monitor the bone and mineral 
metabolism of individuals with end stage renal disease. 
(c) ANALYSIS OF CASE MIX PAYMENT ADJUSTMENTS.—By not 
later than January 1, 2016, the Secretary of Health and Human 
Services shall— 
(1) conduct an analysis of the case mix payment adjust-
ments being used under section 1881(b)(14)(D)(i) of the Social 
Security Act (42 U.S.C. 1395rr(b)(14)(D)(i)); and 
(2) make appropriate revisions to such case mix payment 
adjustments. 
(d) UPDATED GAO REPORT.—Not later than December 31, 2015, 
the Comptroller General of the United States shall submit to Con-
gress a report that updates the report submitted to Congress under 
section 10336 of the Patient Protection and Affordable Care Act 
(Public Law 111–148; 124 Stat. 974). The updated report shall 
include an analysis of how the Secretary of Health and Human 
Services has addressed points raised in the report submitted under 
Analysis. 
42 USC 1395rr 
note. 
42 USC 1395rr 
note. 
Reductions. 
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126 STAT. 2355 
PUBLIC LAW 112–240—JAN. 2, 2013 
such section 10336 with respect to the Secretary’s preparations 
to implement payment for oral-only ESRD-related drugs in the 
bundled prospective payment system under section 1881(b)(14) of 
the Social Security Act (42 U.S.C. 1395rr(b)(14)). 
SEC. 633. TREATMENT OF MULTIPLE SERVICE PAYMENT POLICIES FOR 
THERAPY SERVICES. 
(a) SERVICES FURNISHED BY PHYSICIANS AND CERTAIN OTHER 
PROVIDERS.—Section 1848(b)(7) of the Social Security Act (42 U.S.C. 
1395w–4(b)(7)) is amended— 
(1) by striking ‘‘2011,’’ and inserting ‘‘2011, and before 
April 1, 2013,’’; and 
(2) by adding at the end the following new sentence: ‘‘In 
the case of such services furnished on or after April 1, 2013, 
and for which payment is made under such fee schedules, 
instead of the 25 percent multiple procedure payment reduction 
specified in such final rule, the reduction percentage shall 
be 50 percent.’’. 
(b) SERVICES
FURNISHED
BY
OTHER
PROVIDERS.—Section 
1834(k) of the Social Security Act (42 U.S.C. 1395m(k)) is amended 
by adding at the end the following new paragraph: 
‘‘(7) ADJUSTMENT
IN
DISCOUNT
FOR
CERTAIN
MULTIPLE 
THERAPY SERVICES.—In the case of therapy services furnished 
on or after April 1, 2013, and for which payment is made 
under this subsection pursuant to the applicable fee schedule 
amount (as defined in paragraph (3)), instead of the 25 percent 
multiple procedure payment reduction specified in the final 
rule published by the Secretary in the Federal Register on 
November 29, 2010, the reduction percentage shall be 50 per-
cent.’’. 
SEC. 634. PAYMENT FOR CERTAIN RADIOLOGY SERVICES FURNISHED 
UNDER THE MEDICARE HOSPITAL OUTPATIENT DEPART-
MENT PROSPECTIVE PAYMENT SYSTEM. 
Section 1833(t)(16) of the Social Security Act (42 U.S.C. 
1395l(t)(16)) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) SPECIAL PAYMENT RULE.— 
‘‘(i) IN GENERAL.—In the case of covered OPD serv-
ices furnished on or after April 1, 2013, in a hospital 
described in clause (ii), if— 
‘‘(I) the payment rate that would otherwise 
apply under this subsection for stereotactic 
radiosurgery, complete course of treatment of cra-
nial lesion(s) consisting of 1 session that is multi- 
source Cobalt 60 based (identified as of January 
1, 2013, by HCPCS code 77371 (and any succeeding 
code) and reimbursed as of such date under APC 
0127 (and any succeeding classification group)); 
exceeds 
‘‘(II) the payment rate that would otherwise 
apply under this subsection for linear accelerator 
based stereotactic radiosurgery, complete course 
of therapy in one session (identified as of January 
1, 2013, by HCPCS code G0173 (and any suc-
ceeding code) and reimbursed as of such date under 
APC 0067 (and any succeeding classification 
group)), 
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126 STAT. 2356 
PUBLIC LAW 112–240—JAN. 2, 2013 
the payment rate for the service described in subclause 
(I) shall be reduced to an amount equal to the payment 
rate for the service described in subclause (II). 
‘‘(ii) HOSPITAL
DESCRIBED.—A hospital described 
in this clause is a hospital that is not— 
‘‘(I) located in a rural area (as defined in sec-
tion 1886(d)(2)(D)); 
‘‘(II) classified as a rural referral center under 
section 1886(d)(5)(C); or 
‘‘(III) a sole community hospital (as defined 
in section 1886(d)(5)(D)(iii)). 
‘‘(iii) NOT
BUDGET
NEUTRAL.—In making any 
budget neutrality adjustments under this subsection 
for 2013 (with respect to covered OPD services fur-
nished on or after April 1, 2013, and before January 
1, 2014) or a subsequent year, the Secretary shall 
not take into account the reduced expenditures that 
result from the application of this subparagraph.’’. 
SEC. 635. ADJUSTMENT OF EQUIPMENT UTILIZATION RATE FOR 
ADVANCED IMAGING SERVICES. 
Section 1848 of the Social Security Act (42 U.S.C. 1395w– 
4) is amended— 
(1) in subsection (b)(4)(C)— 
(A) by striking ‘‘and subsequent years’’ and inserting 
‘‘, 2012, and 2013’’; and 
(B) by adding at the end the following new sentence: 
‘‘With respect to fee schedules established for 2014 and 
subsequent years, in such methodology, the Secretary shall 
use a 90 percent utilization rate.’’; and 
(2) in subsection (c)(2)(B)(v)(III), by striking ‘‘change in 
the utilization rate applicable to 2011, as described in’’ and 
inserting ‘‘changes in the utilization rate applicable to 2011 
and 2014, as described in the first and second sentence, respec-
tively, of’’. 
SEC. 636. MEDICARE PAYMENT OF COMPETITIVE PRICES FOR 
DIABETIC SUPPLIES AND ELIMINATION OF OVERPAYMENT 
FOR DIABETIC SUPPLIES. 
(a) APPLICATION OF COMPETITIVE BIDDING PRICES FOR DIABETIC 
SUPPLIES.—Section 1834(a)(1) of the Social Security Act (42 U.S.C. 
1395m(a)(1)) is amended— 
(1) in subparagraph (F), in the matter preceding clause 
(i), by striking ‘‘subparagraph (G)’’ and inserting ‘‘subpara-
graphs (G) and (H)’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(H) DIABETIC SUPPLIES.— 
‘‘(i) IN GENERAL.—On or after the date described 
in clause (ii), the payment amount under this part 
for diabetic supplies, including testing strips, that are 
non-mail order items (as defined by the Secretary) 
shall be equal to the single payment amounts estab-
lished under the national mail order competition for 
diabetic supplies under section 1847. 
‘‘(ii) DATE DESCRIBED.—The date described in this 
clause is the date of the implementation of the single 
payment amounts under the national mail order com-
petition for diabetic supplies under section 1847.’’. 
Time period. 
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126 STAT. 2357 
PUBLIC LAW 112–240—JAN. 2, 2013 
(b) OVERPAYMENT ELIMINATION FOR DIABETIC SUPPLIES.—Sec-
tion 1834(a) of the Social Security Act (42 U.S.C. 1395m(a)) is 
amended by adding at the end the following new paragraph: 
‘‘(22) SPECIAL PAYMENT RULE FOR DIABETIC SUPPLIES.—Not-
withstanding the preceding provisions of this subsection, for 
purposes of determining the payment amount under this sub-
section for diabetic supplies furnished on or after the first 
day of the calendar quarter during 2013 that is at least 30 
days after the date of the enactment of this paragraph and 
before the date described in paragraph (1)(H)(ii), the Secretary 
shall recalculate and apply the covered item update under 
paragraph (14) as if subparagraph (J)(i) of such paragraph 
was amended by striking ‘but only if furnished through mail 
order’.’’. 
SEC. 637. MEDICARE PAYMENT ADJUSTMENT FOR NON-EMERGENCY 
AMBULANCE TRANSPORTS FOR ESRD BENEFICIARIES. 
Section 1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) 
is amended by adding at the end the following new paragraph: 
‘‘(15) PAYMENT ADJUSTMENT FOR NON-EMERGENCY AMBU-
LANCE TRANSPORTS FOR ESRD BENEFICIARIES.—The fee schedule 
amount otherwise applicable under the preceding provisions 
of this subsection shall be reduced by 10 percent for ambulance 
services furnished on or after October 1, 2013, consisting of 
non-emergency basic life support services involving transport 
of an individual with end-stage renal disease for renal dialysis 
services (as described in section 1881(b)(14)(B)) furnished other 
than on an emergency basis by a provider of services or a 
renal dialysis facility.’’. 
SEC. 638. REMOVING OBSTACLES TO COLLECTION OF OVERPAYMENTS. 
(a) IN GENERAL.—The last sentence of subsections (b) and (c) 
of section 1870 of the Social Security Act (42 U.S.C. 1395gg) are 
each amended— 
(1) by striking ‘‘third year’’ and inserting ‘‘fifth year’’; and 
(2) by striking ‘‘three-year’’ and inserting ‘‘five-year’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date of the enactment of this Act. 
SEC. 639. MEDICARE ADVANTAGE CODING INTENSITY ADJUSTMENT. 
Section 1853(a)(1)(C)(ii)(III) of the Social Security Act (42 U.S.C. 
1395w–23(a)(1)(C)(ii)(III)) is amended— 
(1) by striking ‘‘1.3 percentage points’’ and inserting ‘‘1.5 
percentage points’’; and 
(2) by striking ‘‘5.7 percent’’ and inserting ‘‘5.9 percent’’. 
SEC. 640. ELIMINATION OF ALL FUNDING FOR THE MEDICARE 
IMPROVEMENT FUND. 
Section 1898(b)(1) of the Social Security Act (42 U.S.C. 
1395iii(b)(1)) is amended by striking subparagraphs (A), (B), and 
(C) and inserting the following new subparagraphs: 
‘‘(A) fiscal year 2014, $0; and 
‘‘(B) fiscal year 2015, $0.’’. 
SEC. 641. REBASING OF STATE DSH ALLOTMENTS. 
Section 1923(f)(8) of the Social Security Act (42 U.S.C. 1396r– 
4(f)(8)) is amended to read as follows: 
42 USC 1395gg 
note. 
Time period. 
Applicability. 
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126 STAT. 2358 
PUBLIC LAW 112–240—JAN. 2, 2013 
‘‘(8) SPECIAL RULES FOR CALCULATING DSH ALLOTMENTS FOR 
CERTAIN FISCAL YEARS.— 
‘‘(A) FISCAL
YEAR
2021.—Only with respect to fiscal 
year 2021, the DSH allotment for a State, in lieu of the 
amount determined under paragraph (3) for the State for 
that year, shall be equal to the DSH allotment for the 
State as reduced under paragraph (7) for fiscal year 2020, 
increased, subject to subparagraphs (B) and (C) of para-
graph (3), and paragraph (5), by the percentage change 
in the consumer price index for all urban consumers (all 
items; U.S. city average), for fiscal year 2020. 
‘‘(B) FISCAL
YEAR
2022.—Only with respect to fiscal 
year 2022, the DSH allotment for a State, in lieu of the 
amount determined under paragraph (3) for the State for 
that year, shall be equal to the DSH allotment for the 
State for fiscal year 2021, as determined under subpara-
graph (A), increased, subject to subparagraphs (B) and 
(C) of paragraph (3), and paragraph (5), by the percentage 
change in the consumer price index for all urban consumers 
(all items; U.S. city average), for fiscal year 2021. 
‘‘(C) SUBSEQUENT FISCAL YEARS.—The DSH allotment 
for a State for fiscal years after fiscal year 2022 shall 
be calculated under paragraph (3) without regard to this 
paragraph and paragraph (7).’’. 
SEC. 642. REPEAL OF CLASS PROGRAM. 
(a) REPEAL.—Title XXXII of the Public Health Service Act (42 
U.S.C. 300ll et seq.; relating to the CLASS program) is repealed. 
(b) CONFORMING CHANGES.— 
(1) Title VIII of the Patient Protection and Affordable Care 
Act (Public Law 111–148; 124 Stat. 119, 846–847) is repealed. 
(2) Section 1902(a) of the Social Security Act (42 U.S.C. 
1396a(a)) is amended— 
(A) by striking paragraphs (81) and (82); 
(B) in paragraph (80), by inserting ‘‘and’’ at the end; 
and 
(C) by redesignating paragraph (83) as paragraph (81). 
(3) Paragraphs (2) and (3) of section 6021(d) of the Deficit 
Reduction Act of 2005 (42 U.S.C. 1396p note) are amended 
to read as such paragraphs were in effect on the day before 
the date of the enactment of section 8002(d) of the Patient 
Protection and Affordable Care Act (Public Law 111–148). Of 
the funds appropriated by paragraph (3) of such section 6021(d), 
as amended by the Patient Protection and Affordable Care 
Act, the unobligated balance is rescinded. 
SEC. 643. COMMISSION ON LONG-TERM CARE. 
(a) ESTABLISHMENT.—There is established a commission to be 
known as the Commission on Long-Term Care (referred to in this 
section as the ‘‘Commission’’). 
(b) DUTIES.— 
(1) IN GENERAL.—The Commission shall develop a plan 
for the establishment, implementation, and financing of a com-
prehensive, coordinated, and high-quality system that ensures 
the availability of long-term services and supports for individ-
uals in need of such services and supports, including elderly 
individuals, individuals with substantial cognitive or functional 
limitations, other individuals who require assistance to perform 
Plans. 
Rescission. 
42 USC 201 note, 
300ll notes. 
42 USC 
300ll—300ll–9. 
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126 STAT. 2359 
PUBLIC LAW 112–240—JAN. 2, 2013 
activities of daily living, and individuals desiring to plan for 
future long-term care needs. 
(2) EXISTING
HEALTH
CARE
PROGRAMS.—For purposes of 
developing the plan described in paragraph (1), the Commission 
shall provide recommendations for— 
(A) addressing the interaction of a long-term services 
and support system with existing programs for long-term 
services and supports, including the Medicare program 
under title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.) and the Medicaid program under title XIX 
of the Social Security Act (42 U.S.C. 1396 et seq.), and 
private long-term care insurance; 
(B) improvements to such health care programs that 
are necessary for ensuring the availability of long-term 
services and supports; and 
(C) issues related to workers who provide long-term 
services and supports, including— 
(i) whether the number of such workers is ade-
quate to provide long-term services and supports to 
individuals with long-term care needs; 
(ii) workforce development necessary to deliver 
high-quality services to such individuals; 
(iii) development of entities that have the capacity 
to serve as employers and fiscal agents for workers 
who provide long-term services and supports in the 
homes of such individuals; and 
(iv) addressing gaps in Federal and State infra-
structure that prevent delivery of high-quality long 
term services and supports to such individuals. 
(3) ADDITIONAL CONSIDERATIONS.—For purposes of devel-
oping the plan described in paragraph (1), the Commission 
shall take into account projected demographic changes and 
trends in the population of the United States, as well as the 
potential for development of new technologies, delivery systems, 
or other mechanisms to improve the availability and quality 
of long-term services and supports. 
(4) CONSULTATION.—For purposes of developing the plan 
described in paragraph (1), the Commission shall consult with 
the Medicare Payment Advisory Commission, the Medicaid and 
CHIP Payment and Access Commission, the National Council 
on Disability, and relevant consumer groups. 
(c) MEMBERSHIP.— 
(1) IN GENERAL.—The Commission shall be composed of 
15 members, to be appointed not later than 30 days after 
the date of enactment of this Act, as follows: 
(A) The President of the United States shall appoint 
3 members. 
(B) The majority leader of the Senate shall appoint 
3 members. 
(C) The minority leader of the Senate shall appoint 
3 members. 
(D) The Speaker of the House of Representatives shall 
appoint 3 members. 
(E) The minority leader of the House of Representatives 
shall appoint 3 members. 
(2) REPRESENTATION.—The membership of the Commission 
shall include individuals who— 
Deadline. 
Appointments. 
President. 
Congress. 
Recommenda- 
tions. 
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126 STAT. 2360 
PUBLIC LAW 112–240—JAN. 2, 2013 
(A) represent the interests of— 
(i) consumers of long-term services and supports 
and related insurance products, as well as their rep-
resentatives; 
(ii) older adults; 
(iii) individuals with cognitive or functional limita-
tions; 
(iv) family caregivers for individuals described in 
clause (i), (ii), or (iii); 
(v) the health care workforce who directly provide 
long-term services and supports; 
(vi) private long-term care insurance providers; 
(vii) employers; 
(viii) State insurance departments; and 
(ix) State Medicaid agencies; 
(B) have demonstrated experience in dealing with 
issues related to long-term services and supports, health 
care policy, and public and private insurance; and 
(C) represent the health care interests and needs of 
a variety of geographic areas and demographic groups. 
(3) CHAIRMAN AND VICE-CHAIRMAN.—The Commission shall 
elect a chairman and vice chairman from among its members. 
(4) VACANCIES.—Any vacancy in the membership of the 
Commission shall be filled in the manner in which the original 
appointment was made and shall not affect the power of the 
remaining members to execute the duties of the Commission. 
(5) QUORUM.—A quorum shall consist of 8 members of 
the Commission, except that 4 members may conduct a hearing 
under subsection (e)(1). 
(6) MEETINGS.—The Commission shall meet at the call 
of its chairman or a majority of its members. 
(7) COMPENSATION AND REIMBURSEMENT OF EXPENSES.— 
(A) IN GENERAL.—To enable the Commission to exercise 
its powers, functions, and duties, there are authorized to 
be disbursed by the Senate the actual and necessary 
expenses of the Commission approved by the chairman 
and vice chairman, subject to subparagraph (B) and the 
rules and regulations of the Senate. 
(B) MEMBERS.—Members of the Commission are not 
entitled to receive compensation for service on the Commis-
sion. Members may be reimbursed for travel, subsistence, 
and other necessary expenses incurred in carrying out the 
duties of the Commission. 
(d) STAFF AND ETHICAL STANDARDS.— 
(1) STAFF.—The chairman and vice chairman of the 
Commission may jointly appoint and fix the compensation of 
staff as they deem necessary, within the guidelines for 
employees of the Senate and following all applicable rules and 
employment requirements of the Senate. 
(2) ETHICAL STANDARDS.—Members of the Commission who 
serve in the House of Representatives shall be governed by 
the ethics rules and requirements of the House. Members of 
the Senate who serve on the Commission and staff of the 
Commission shall comply with the ethics rules of the Senate. 
(e) POWERS.— 
(1) HEARINGS AND OTHER ACTIVITIES.—For the purpose of 
carrying out its duties, the Commission may hold such hearings 
Compliance. 
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126 STAT. 2361 
PUBLIC LAW 112–240—JAN. 2, 2013 
and undertake such other activities as the Commission deter-
mines to be necessary to carry out its duties. 
(2) STUDIES BY GENERAL ACCOUNTING OFFICE.—Upon the 
request of the Commission, the Comptroller General of the 
United States shall conduct such studies or investigations as 
the Commission determines to be necessary to carry out its 
duties. 
(3) COST ESTIMATES BY CONGRESSIONAL BUDGET OFFICE.— 
Upon the request of the Commission, the Director of the 
Congressional Budget Office shall provide to the Commission 
such cost estimates as the Commission determines to be nec-
essary to carry out its duties. 
(4) DETAIL OF FEDERAL EMPLOYEES.—Upon the request of 
the Commission, the head of any Federal agency is authorized 
to detail, without reimbursement, any of the personnel of such 
agency to the Commission to assist the Commission in carrying 
out its duties. Any such detail shall not interrupt or otherwise 
affect the civil service status or privileges of the Federal 
employee. 
(5) TECHNICAL
ASSISTANCE.—Upon the request of the 
Commission, the head of a Federal agency shall provide such 
technical assistance to the Commission as the Commission 
determines to be necessary to carry out its duties. 
(6) USE OF MAILS.—The Commission may use the United 
States mails in the same manner and under the same conditions 
as Federal agencies. 
(7) OBTAINING INFORMATION.—The Commission may secure 
directly from any Federal agency information necessary to 
enable it to carry out its duties, if the information may be 
disclosed under section 552 of title 5, United States Code. 
Upon request of the Chairman of the Commission, the head 
of such agency shall furnish such information to the Commis-
sion. 
(8) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request 
of the Commission, the Administrator of General Services shall 
provide to the Commission on a reimbursable basis such 
administrative support services as the Commission may 
request. 
(f) COMMISSION CONSIDERATION.— 
(1) APPROVAL OF REPORT AND LEGISLATIVE LANGUAGE.— 
(A) IN
GENERAL.—Not later than 6 months after 
appointment of the members of the Commission (as 
described in subsection (c)(1)), the Commission shall vote 
on a comprehensive and detailed report based on the long- 
term care plan described in subsection (b)(1) that contains 
any recommendations or proposals for legislative or 
administrative action as the Commission deems appro-
priate, including proposed legislative language to carry out 
the recommendations or proposals (referred to in this sec-
tion as the ‘‘Commission bill’’). 
(B) 
APPROVAL
BY
MAJORITY
OF
MEMBERS.—The 
Commission bill shall require the approval of a majority 
of the members of the Commission. 
(2) TRANSMISSION OF COMMISSION BILL.— 
(A) IN GENERAL.—If the Commission bill is approved 
by the Commission pursuant to paragraph (1), then not 
later than 10 days after such approval, the Commission 
Deadline. 
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126 STAT. 2362 
PUBLIC LAW 112–240—JAN. 2, 2013 
shall submit the Commission bill to the President, the 
Vice President, the Speaker of the House of Representa-
tives, and the majority and minority Leaders of each House 
on Congress. 
(B) COMMISSION BILL TO BE MADE PUBLIC.—Upon the 
approval or disapproval of the Commission bill pursuant 
to paragraph (1), the Commission shall promptly make 
such proposal, and a record of the vote, available to the 
public. 
(g) TERMINATION.—The Commission shall terminate 30 days 
after the vote described in subsection (f)(1). 
(h) CONSIDERATION
OF COMMISSION RECOMMENDATIONS.—If 
approved by the majority required by subsection (f)(1), the Commis-
sion bill that has been submitted pursuant to subsection (f)(2)(A) 
shall be introduced in the Senate (by request) on the next day 
on which the Senate is in session by the majority leader of the 
Senate or by a Member of the Senate designated by the majority 
leader of the Senate and shall be introduced in the House of 
Representatives (by request) on the next legislative day by the 
majority leader of the House or by a member of the House des-
ignated by the majority leader of the House. 
SEC. 644. CONSUMER OPERATED AND ORIENTED PLAN PROGRAM 
CONTINGENCY FUND. 
(a) ESTABLISHMENT.—The Secretary of Health and Human 
Services shall establish a fund to be used to provide assistance 
and oversight to qualified nonprofit health insurance issuers that 
have been awarded loans or grants under section 1322 of the 
Patient Protection and Affordable Care Act (42 U.S.C. 18042) prior 
to the date of enactment of this Act. 
(b) TRANSFER AND RESCISSION.— 
(1) TRANSFER.—From the unobligated balance of funds 
appropriated under section 1322(g) of the Patient Protection 
and Affordable Care Act (42 U.S.C. 18042(g)), 10 percent of 
such sums are hereby transferred to the fund established under 
subsection (a) to remain available until expended. 
(2) RESCISSION.—Except as provided for in paragraph (1), 
amounts appropriated under section 1322(g) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18042(g)) that 
are unobligated as of the date of enactment of this Act are 
rescinded. 
TITLE VII—EXTENSION OF 
AGRICULTURAL PROGRAMS 
SEC. 701. 1-YEAR EXTENSION OF AGRICULTURAL PROGRAMS. 
(a) EXTENSION.—Except as otherwise provided in this section 
and amendments made by this section and notwithstanding any 
other provision of law, the authorities provided by each provision 
of the Food, Conservation, and Energy Act of 2008 (Public Law 
110–246; 122 Stat. 1651) and each amendment made by that Act 
(and for mandatory programs at such funding levels), as in effect 
on September 30, 2012, shall continue, and the Secretary of Agri-
culture shall carry out the authorities, until the later of— 
(1) September 30, 2013; or 
Deadline. 
7 USC 8701 note. 
42 USC 18042 
note. 
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126 STAT. 2363 
PUBLIC LAW 112–240—JAN. 2, 2013 
(2) the date specified in the provision of that Act or amend-
ment made by that Act. 
(b) COMMODITY PROGRAMS.— 
(1) IN GENERAL.—The terms and conditions applicable to 
a covered commodity or loan commodity (as those terms are 
defined in section 1001 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8702)) or to peanuts, sugarcane, or sugar 
beets for the 2012 crop year pursuant to title I of that Act 
(7 U.S.C. 8702 et seq.) and each amendment made by that 
title shall be applicable to the 2013 crop year for that covered 
commodity, loan commodity, peanuts, sugarcane, or sugar beets. 
(2) MILK.— 
(A) IN GENERAL.—Notwithstanding subsection (a), the 
Secretary of Agriculture shall carry out the dairy product 
price support program under section 1501 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8771) 
through December 31, 2013. 
(B) MILK INCOME LOSS CONTRACT PROGRAM.—Section 
1506 of the Food, Conservation, and Energy Act of 2008 
(7 U.S.C. 8773) is amended by striking ‘‘2012’’ each place 
it appears in subsections (c)(3), (d)(1), (d)(2), (e)(2)(A), (g), 
and (h)(1) and inserting ‘‘2013’’. 
(3) SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORI-
TIES.—The provisions of law specified in subsections (a) through 
(c) of section 1602 of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 8782) shall be suspended— 
(A) for the 2013 crop or production year of a covered 
commodity (as that term is defined in section 1001 of 
that Act (7 U.S.C. 8702)), peanuts, sugarcane, and sugar, 
as appropriate; and 
(B) in the case of milk, through December 31, 2013. 
(c) CONSERVATION PROGRAMS.— 
(1) CONSERVATION RESERVE.—Section 1231(d) of the Food 
Security Act of 1985 (16 U.S.C. 3831(d)) is amended in the 
second sentence by striking ‘‘and 2012’’ and inserting ‘‘2012, 
and 2013’’. 
(2) VOLUNTARY PUBLIC ACCESS.—Section 1240R of the Food 
Security Act of 1985 (16 U.S.C. 3839bb–5) is amended by 
striking subsection (f) and inserting the following: 
‘‘(f) FUNDING.— 
‘‘(1) FISCAL YEARS 2009 THROUGH 2012.—Of the funds of 
the Commodity Credit Corporation, the Secretary shall use 
to carry out this section, to the maximum extent practicable, 
$50,000,000 for the period of fiscal years 2009 through 2012. 
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this section $10,000,000 
for fiscal year 2013.’’. 
(d) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— 
(1) 
EMPLOYMENT
AND
TRAINING
PROGRAM.—Section 
16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)(A)) is amended by inserting ‘‘, except that for fiscal 
year 2013, the amount shall be $79,000,000’’ before the period 
at the end. 
(2) NUTRITION EDUCATION.—Section 28(d)(1) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended— 
(A) in subparagraph (A), by striking ‘‘and’’ after the 
semicolon at the end; and 
7 USC 8773 note. 
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126 STAT. 2364 
PUBLIC LAW 112–240—JAN. 2, 2013 
(B) by striking subparagraph (B) and inserting the 
following: 
‘‘(B) for fiscal year 2012, $388,000,000; 
‘‘(C) for fiscal year 2013, $285,000,000; 
‘‘(D) for fiscal year 2014, $401,000,000; 
‘‘(E) for fiscal year 2015, $407,000,000; and 
‘‘(F) for fiscal year 2016 and each subsequent fiscal 
year, the applicable amount during the preceding fiscal 
year, as adjusted to reflect any increases for the 12-month 
period ending the preceding June 30 in the Consumer 
Price Index for All Urban Consumers published by the 
Bureau of Labor Statistics of the Department of Labor.’’. 
(e) RESEARCH PROGRAMS.— 
(1) ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIA-
TIVE.—Section 1672B(f) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5925b(f)) is amended— 
(A) in the heading of paragraph (1), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘MANDATORY FUNDING FOR FISCAL 
YEARS 2009 THROUGH 2012’’; 
(B) in the heading of paragraph (2), by striking ‘‘ADDI-
TIONAL FUNDING’’ and inserting ‘‘DISCRETIONARY FUNDING 
FOR FISCAL YEARS 2009 THROUGH 2012’’; and 
(C) by adding at the end the following: 
‘‘(3) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out this section $25,000,000 for fiscal year 
2013.’’. 
(2) SPECIALTY CROP RESEARCH INITIATIVE.—Section 412(h) 
of the Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7632(h)) is amended— 
(A) in the heading of paragraph (1), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘MANDATORY FUNDING FOR FISCAL 
YEARS 2008 THROUGH 2012’’; 
(B) in the heading of paragraph (2), by inserting ‘‘FOR 
FISCAL YEARS 2008 THROUGH 2012’’ after ‘‘APPROPRIATIONS’’; 
(C) by redesignating paragraphs (3) and (4) as para-
graphs (4) and (5), respectively; and 
(D) by inserting after paragraph (2) the following: 
‘‘(3) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out this section $100,000,000 for fiscal year 
2013.’’. 
(3) BEGINNING FARMER AND RANCHER DEVELOPMENT PRO-
GRAM.—Section 7405(h) of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3319f(h)) is amended— 
(A) in the heading of paragraph (1), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘MANDATORY FUNDING FOR FISCAL 
YEARS 2009 THROUGH 2012’’; 
(B) in the heading of paragraph (2), by inserting ‘‘FOR 
FISCAL YEARS 2008 THROUGH 2012’’ after ‘‘APPROPRIATIONS’’; 
and 
(C) by adding at the end the following: 
‘‘(3) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out this section $30,000,000 for fiscal year 
2013.’’. 
(f) ENERGY PROGRAMS.— 
(1) BIOBASED MARKETS PROGRAM.—Section 9002(h) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
Appropriation 
authorization. 
Appropriation 
authorization. 
Appropriation 
authorization. 
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126 STAT. 2365 
PUBLIC LAW 112–240—JAN. 2, 2013 
8102(h)) is amended in paragraph (2) by striking ‘‘2012’’ and 
inserting ‘‘2013’’. 
(2) BIOREFINERY
ASSISTANCE.—Section 9003(h)(2) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8103(h)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 
(3) REPOWERING
ASSISTANCE.—Section 9004(d)(2) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8104(d)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 
(4) BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.—Section 
9005(g)(2) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8105(g)(2)) is amended by striking ‘‘2012’’ 
and inserting ‘‘2013’’. 
(5) BIODIESEL
FUEL
EDUCATION
PROGRAM.—Section 9006 
of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8106) is amended by striking subsection (d) and inserting 
the following: 
‘‘(d) FUNDING.— 
‘‘(1) FISCAL YEARS 2009 THROUGH 2012.—Of the funds of 
the Commodity Credit Corporation, the Secretary shall use 
to carry out this section $1,000,000 for each of fiscal years 
2008 through 2012. 
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this section $1,000,000 
for fiscal year 2013.’’. 
(6) RURAL
ENERGY
FOR
AMERICA
PROGRAM.—Section 
9007(g)(3) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8107(g)(3)) is amended by striking ‘‘2012’’ 
and inserting ‘‘2013’’. 
(7) 
BIOMASS
RESEARCH
AND
DEVELOPMENT.—Section 
9008(h)(2) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8108(h)(2)) is amended by striking ‘‘2012’’ 
and inserting ‘‘2013’’. 
(8) RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.—Section 
9009(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8109(d)) is amended by striking ‘‘2012’’ and 
inserting ‘‘2013’’. 
(9) FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRO-
DUCERS.—Section 9010(b) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8110(b)) is amended in para-
graphs (1)(A) and (2)(A) by striking ‘‘2012’’ each place it appears 
and inserting ‘‘2013’’. 
(10) BIOMASS CROP ASSISTANCE PROGRAM.—Section 9011(f) 
of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8111(f)) is amended— 
(A) by striking ‘‘(f) FUNDING.—Of the funds’’ and 
inserting ‘‘(f) FUNDING.— 
‘‘(1) FISCAL YEARS 2008 THROUGH 2012.—Of the funds’’; and 
(B) adding at the end the following: 
‘‘(2) FISCAL YEAR 2013.— 
‘‘(A) IN GENERAL.—There is authorized to be appro-
priated to carry out this section $20,000,000 for fiscal year 
2013. 
‘‘(B) MULTIYEAR CONTRACTS.—For each multiyear con-
tract entered into by the Secretary during a fiscal year 
under this paragraph, the Secretary shall ensure that suffi-
cient funds are obligated from the amounts appropriated 
Appropriation 
authorization. 
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126 STAT. 2366 
PUBLIC LAW 112–240—JAN. 2, 2013 
for that fiscal year to fully cover all payments required 
by the contract for all years of the contract.’’. 
(11) FOREST BIOMASS FOR ENERGY.—Section 9012(d) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8112(d)) is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 
(12) COMMUNITY WOOD ENERGY PROGRAM.—Section 9013(e) 
of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8113(e)) is amended by striking ‘‘2012’’ and inserting 
‘‘2013’’. 
(g) HORTICULTURE AND ORGANIC AGRICULTURE PROGRAMS.— 
(1) FARMERS MARKET PROMOTION PROGRAM.—Section 6(e) 
of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 
U.S.C. 3005(e)) is amended— 
(A) in the heading of paragraph (1), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘FISCAL YEARS 2008 THROUGH 2012’’; 
(B) by redesignating paragraphs (2), (3), and (4) as 
paragraphs (3), (4), and (5), respectively; 
(C) by inserting after paragraph (1) the following: 
‘‘(2) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out this section $10,000,000 for fiscal year 
2013.’’; 
(D) in paragraph (3) (as so redesignated), by striking 
‘‘paragraph (1)’’ and inserting ‘‘paragraph (1) or (2)’’; and 
(E) in paragraph (5) (as so redesignated), by striking 
‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 
(2) NATIONAL
CLEAN
PLANT
NETWORK.—Section 10202(e) 
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
7761(e)) is amended— 
(A) by striking ‘‘Of the funds’’ and inserting the fol-
lowing: 
‘‘(1) FISCAL YEARS 2009 THROUGH 2012.—Of the funds’’; and 
(B) by adding at the end the following: 
‘‘(2) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out the Program $5,000,000 for fiscal year 
2013.’’. 
(3) NATIONAL
ORGANIC
CERTIFICATION
COST-SHARE
PRO-
GRAM.—Section 10606 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 6523) is amended— 
(A) in subsection (a), by striking ‘‘Of funds of the 
Commodity Credit Corporation, the Secretary of Agri-
culture (acting through the Agricultural Marketing Service) 
shall use $22,000,000 for fiscal year 2008, to remain avail-
able until expended, to’’ and inserting ‘‘The Secretary of 
Agriculture (acting through the Agricultural Marketing 
Service) shall’’; and 
(B) by adding at the end the following: 
‘‘(d) FUNDING.— 
‘‘(1) MANDATORY FUNDING FOR FISCAL YEARS 2008 THROUGH 
2012.—Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section 
$22,000,000 for the period of fiscal years 2008 through 2012. 
‘‘(2) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out this section $22,000,000 for fiscal year 
2013, to remain available until expended.’’. 
(4) ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.— 
Section 7407(d) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 5925c(d)) is amended— 
Appropriation 
authorization. 
Appropriation 
authorization. 
Appropriation 
authorization. 
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126 STAT. 2367 
PUBLIC LAW 112–240—JAN. 2, 2013 
(A) in the heading of paragraph (1), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘MANDATORY FUNDING THROUGH 
FISCAL YEAR 2012’’; 
(B) in the heading of paragraph (2), by striking ‘‘ADDI-
TIONAL FUNDING’’ and inserting ‘‘DISCRETIONARY FUNDING 
FOR FISCAL YEARS 2008 THROUGH 2012’’; and 
(C) by adding at the end the following: 
‘‘(3) FISCAL YEAR 2013.—There is authorized to be appro-
priated to carry out this section $5,000,000, to remain available 
until expended.’’. 
(h) OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY DIS-
ADVANTAGED FARMERS
OR RANCHERS.—Section 2501(a)(4) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(a)(4)) is amended— 
(1) in the heading of subparagraph (A), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘FISCAL YEARS 2009 THROUGH 2012’’; 
(2) by redesignating subparagraphs (B) and (C) as subpara-
graphs (C) and (D), respectively; 
(3) by inserting after subparagraph (A) the following: 
‘‘(B) FISCAL
YEAR
2013.—There is authorized to be 
appropriated to carry out this section $20,000,000 for fiscal 
year 2013.’’; 
(4) in subparagraph (C) (as so redesignated), by striking 
‘‘subparagraph (A)’’ and inserting ‘‘subparagraph (A) or (B)’’; 
and 
(5) in subparagraph (D) (as so redesignated), by striking 
‘‘subparagraph (A)’’ and inserting ‘‘subparagraph (A) or (B)’’. 
(i) EXCEPTIONS.— 
(1) IN GENERAL.—Subsection (a) does not apply with respect 
to mandatory funding provided by programs authorized by 
provisions of law amended by subsections (d) through (h). 
(2) CONSERVATION.—Subsection (a) does not apply with 
respect to the programs specified in paragraphs (3)(B), (4), 
(6), and (7) of section 1241(a) of the Food Security Act of 
1985 (16 U.S.C. 3841(a)), relating to the conservation steward-
ship program, farmland protection program, environmental 
quality incentives program, and wildlife habitat incentives pro-
gram, for which program authority was extended through fiscal 
year 2014 by section 716 of Public Law 112–55 (125 Stat. 
582). 
(3) TRADE.—Subsection (a) does not apply with respect 
to the following provisions of law: 
(A) Section 3206 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 1726c) relating to the use of Com-
modity Credit Corporation funds to support local and 
regional food aid procurement projects. 
(B) Section 3107(l)(1) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 1736o–1(l)(1)) relating 
to the use of Commodity Credit Corporation funds to carry 
out the McGovern-Dole International Food for Education 
and Child Nutrition Program. 
(4) SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORI-
TIES.—Subsection (a) does not apply with respect to section 
4307 of the Food, Conservation, and Energy Act of 2008 (Public 
Law 110–246; 122 Stat. 1893) relating to the use of Commodity 
Credit Corporation funds for a survey and report regarding 
foods purchased by school food authorities. 
Appropriation 
authorization. 
Appropriation 
authorization. 
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126 STAT. 2368 
PUBLIC LAW 112–240—JAN. 2, 2013 
(5) RURAL DEVELOPMENT.—Subsection (a) does not apply 
with respect to the following provisions of law: 
(A) Section 379E(d)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008s(d)(1)), relating to 
funding of the rural microentrepreneur assistance program. 
(B) Section 6029 of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1955) relating 
to funding of pending rural development loan and grant 
applications. 
(C) Section 231(b)(7)(A) of the Agricultural Risk Protec-
tion Act of 2000 (7 U.S.C. 1632a(b)(7)(A)), relating to 
funding of value-added agricultural market development 
program grants. 
(D) Section 375(e)(6)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008j(e)(6)(B)) relating 
to the use of Commodity Credit Corporation funds for the 
National Sheep Industry Improvement Center. 
(6) MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.— 
Subsection (a) does not apply with respect to section 10404(d) 
of the Food, Conservation, and Energy Act of 2008 (Public 
Law 110–246; 122 Stat. 2112). 
(7) SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.— 
Subsection (a) does not apply with respect to section 531 of 
the Federal Crop Insurance Act (7 U.S.C. 1531) and title IX 
of the Trade Act of 1974 (19 U.S.C. 2497 et seq.) relating 
to the provision of supplemental agricultural disaster assist-
ance. 
(8) PIGFORD CLAIMS.—Subsection (a) does not apply with 
respect to section 14012 of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 2209) relating 
to determination on the merits of Pigford claims. 
(9) HEARTLAND, HABITAT, HARVEST, AND HORTICULTURE ACT 
OF 2008.—Subsection (a) does not apply with respect to title 
XV of the Food, Conservation, and Energy Act of 2008 (Public 
Law 110–246; 122 Stat. 2246), and amendments made by that 
title, relating to the provision of supplemental agricultural dis-
aster assistance under title IX of the Trade Act of 1974 (19 
U.S.C. 2497 et seq.), certain revenue and tax provisions, and 
certain trade benefits and other matters. 
(j) EFFECTIVE DATE.—Except as otherwise provided in this sec-
tion, this section and the amendments made by this section take 
effect on the earlier of— 
(1) the date of the enactment of this Act; or 
(2) September 30, 2012. 
SEC. 702. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 
(a) IN GENERAL.—Section 531 of the Federal Crop Insurance 
Act (7 U.S.C. 1531) is amended— 
(1) in subsection (a)(5)— 
(A) in the matter preceding clause (i), by striking the 
first ‘‘under’’; and 
(B) by redesignating clauses (i) through (iii) as subpara-
graphs (A), (B), and (C), respectively, and indenting appro-
priately; 
(2) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘use such sums as 
are necessary from the Trust Fund to’’; and 
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126 STAT. 2369 
PUBLIC LAW 112–240—JAN. 2, 2013 
(B) by adding at the end the following: 
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection $80,000,000 
for each of fiscal years 2012 and 2013.’’; 
(3) in subsection (d)— 
(A) in paragraph (2), by striking ‘‘use such sums as 
are necessary from the Trust Fund to’’; and 
(B) by adding at the end the following: 
‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection 
$400,000,000 for each of fiscal years 2012 and 2013.’’; 
(4) in subsection (e)— 
(A) in paragraph (1), by striking ‘‘use up to $50,000,000 
per year from the Trust Fund to’’; and 
(B) by adding at the end the following: 
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection $50,000,000 
for each of fiscal years 2012 and 2013.’’; 
(5) in subsection (f)— 
(A) in paragraph (2)(A), by striking ‘‘use such sums 
as are necessary from the Trust Fund to’’; and 
(B) by adding at the end the following: 
‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection $20,000,000 
for each of fiscal years 2012 and 2013.’’; and 
(6) in subsection (i), by inserting ‘‘or, in the case of sub-
sections (c) through (f), September 30, 2013’’ after ‘‘2011,’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on October 1, 2012. 
TITLE VIII—MISCELLANEOUS 
PROVISIONS 
SEC. 801. STRATEGIC DELIVERY SYSTEMS. 
(a) IN GENERAL.—Paragraph 3 of section 495(c) of title 10, 
United States Code,, as added by section 1035 of the National 
Defense Authorization Act for Fiscal Year 2013, is amended— 
(1) by striking ‘‘that’’ before ‘‘the Russian Federation’’ and 
inserting ‘‘whether’’; and 
(2) by inserting ‘‘strategic’’ before ‘‘arms control obliga-
tions’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect as if included in the enactment of the National 
Defense Authorization Act for Fiscal Year 2013. 
SEC. 802. NO COST OF LIVING ADJUSTMENT IN PAY OF MEMBERS 
OF CONGRESS. 
Notwithstanding any other provision of law, no adjustment 
shall be made under section 601(a) of the Legislative Reorganization 
Act of 1946 (2 U.S.C. 31) (relating to cost of living adjustments 
for Members of Congress) during fiscal year 2013. 
2 USC 31 note. 
10 USC 495 note. 
7 USC 1531 note. 
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126 STAT. 2370 
PUBLIC LAW 112–240—JAN. 2, 2013 
TITLE IX—BUDGET PROVISIONS 
Subtitle A—Modifications of Sequestration 
SEC. 901. TREATMENT OF SEQUESTER. 
(a) ADJUSTMENT.—Section 251A(3) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended— 
(1) in subparagraph (C), by striking ‘‘and’’ after the semi-
colon; 
(2) in subparagraph (D), by striking the period and 
inserting‘‘ ; and’’; and 
(3) by inserting at the end the following: 
‘‘(E) for fiscal year 2013, reducing the amount cal-
culated 
under 
subparagraphs 
(A) 
through 
(D) 
by 
$24,000,000,000.’’. 
(b) AFTER SESSION SEQUESTER.—Notwithstanding any other 
provision of law, the fiscal year 2013 spending reductions required 
by section 251(a)(1) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 shall be evaluated and implemented on March 
27, 2013. 
(c) POSTPONEMENT OF BUDGET CONTROL ACT SEQUESTER FOR 
FISCAL YEAR 2013.—Section 251A of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended— 
(1) in paragraph (4), by striking ‘‘January 2, 2013’’ and 
inserting ‘‘March 1, 2013’’; and 
(2) in paragraph (7)(A), by striking ‘‘January 2, 2013’’ and 
inserting ‘‘March 1, 2013’’. 
(d) ADDITIONAL ADJUSTMENTS.— 
(1) SECTION 251.—Paragraphs (2) and (3) of section 251(c) 
of the Balanced Budget and Emergency Deficit Control Act 
of 1985 are amended to read as follows: 
‘‘(2) for fiscal year 2013— 
‘‘(A) for the security category, as defined in section 
250(c)(4)(B), $684,000,000,000 in budget authority; and 
‘‘(B) for the nonsecurity category, as defined in section 
250(c)(4)(A), $359,000,000,000 in budget authority; 
‘‘(3) for fiscal year 2014— 
‘‘(A) for the security category, $552,000,000,000 in 
budget authority; and 
‘‘(B) for the nonsecurity category, $506,000,000,000 in 
budget authority;’’. 
(e) 2013 SEQUESTER.—On March 1, 2013, the President shall 
order a sequestration for fiscal year 2013 pursuant to section 251A 
of the Balanced Budget and Emergency Deficit Control Act of 1985, 
as amended by this section, pursuant to which, only for the purposes 
of the calculation in sections 251A(5)(A), 251A(6)(A), and 251A(7)(A), 
section 251(c)(2) shall be applied as if it read as follows: 
‘‘(2) For fiscal year 2013— 
‘‘(A) for the security category, $544,000,000,000 in 
budget authority; and 
‘‘(B) for the nonsecurity category, $499,000,000,000 in 
budget authority;’’. 
Effective date. 
President. 
Applicability. 
2 USC 901a note. 
2 USC 901. 
2 USC 901a. 
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126 STAT. 2371 
PUBLIC LAW 112–240—JAN. 2, 2013 
LEGISLATIVE HISTORY—H.R. 8: 
CONGRESSIONAL RECORD: 
Vol. 158 (2012): Aug. 1, considered and passed House. 
Dec. 31, considered and passed Senate, amended. 
Vol. 158 (2013): Jan. 1, House concurred in Senate amendments. 
SEC. 902. AMOUNTS IN APPLICABLE RETIREMENT PLANS MAY BE 
TRANSFERRED TO DESIGNATED ROTH ACCOUNTS WITH-
OUT DISTRIBUTION. 
(a) IN GENERAL.—Section 402A(c)(4) is amended by adding 
at the end the following: 
‘‘(E) SPECIAL RULE FOR CERTAIN TRANSFERS.—In the 
case of an applicable retirement plan which includes a 
qualified Roth contribution program— 
‘‘(i) the plan may allow an individual to elect to 
have the plan transfer any amount not otherwise 
distributable under the plan to a designated Roth 
account maintained for the benefit of the individual, 
‘‘(ii) such transfer shall be treated as a distribution 
to which this paragraph applies which was contributed 
in a qualified rollover contribution (within the meaning 
of section 408A(e)) to such account, and 
‘‘(iii) the plan shall not be treated as violating 
the provisions of section 401(k)(2)(B)(i), 403(b)(7)(A)(i), 
403(b)(11), or 457(d)(1)(A), or of section 8433 of title 
5, United States Code, solely by reason of such 
transfer.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to transfers after December 31, 2012, in taxable years 
ending after such date. 
Subtitle B—Budgetary Effects 
SEC. 911. 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). 
Approved January 2, 2013. 
26 USC 402A 
note. 
26 USC 402A. 
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