In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE; ETC.

(a) Short Title.--This Act may be cited as the ''Middle Class and
Small Business Tax 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 of this Act is as
follows:

Sec. 1. Short title; etc.
Sec. 2. Permanent extension of certain 2001 tax relief for middle-class
families, small businesses, and family
farms.
Sec. 3. Permanent extension of 2003 tax relief for middle-class
families, small businesses, and family
farms.
Sec. 4. Temporary extension of 2009 tax relief.
Sec. 5. Temporary extension of estate tax relief.
Sec. 6. Temporary extension of increased alternative minimum tax
exemption amount.
Sec. 7. Temporary extension of alternative minimum tax relief for
nonrefundable personal credits.

SEC. 2. PERMANENT EXTENSION OF CERTAIN 2001 TAX RELIEF FOR MIDDLE-CLASS
FAMILIES, SMALL BUSINESSES, AND FAMILY FARMS.

(a) In General.--Section 901 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended--
(1) by striking ''this Act shall not apply--'' and all that
follows through ''in the case of title V,'' in subsection (a)
and inserting ''title V shall not apply'', and
(2) by striking ''years,'' in subsection (b).
(b) Application to Certain High-Income Taxpayers.--
(1) Income tax rates.--
(A) Treatment of 25- and 28-percent rate
brackets.--Paragraph (2) of section 1(i) is amended to
read as follows:
''(2) 25- and 28-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)),
and
''(B) by substituting '28%' for '31%' each place it
appears.''.
(B) 33- and 35-percent rate brackets.--Subsection
(i) of section 1 is amended by redesignating paragraph
(3) as paragraph (6) and by inserting after paragraph
(2) the following new paragraph:
''(3) Applicable amounts in the fourth rate bracket.--
''(A) In general.--In the case of a taxpayer whose
applicable amount for the taxable year is in the fourth
rate bracket--
''(i) the rate of tax under subsections
(a), (b), (c), and (d) on a taxpayer's taxable
income in the fourth rate bracket shall be 33
percent to the extent such income does not
exceed an amount equal to the excess of--
''(I) the applicable amount, over
''(II) the dollar amount at which
such bracket begins, and
''(ii) the 36 percent rate of tax under
such subsections shall apply only to the
taxpayer's taxable income in such bracket in
excess of the amount to which clause (i)
applies.
''(iii) Fourth rate bracket.--For purposes
of this paragraph, the term 'fourth rate
bracket' means the bracket which would
(determined without regard to this paragraph)
be the 36-percent rate bracket.
''(4) Applicable amounts in the highest rate bracket.--
''(A) In general.--In the case of a taxpayer whose
applicable amount for the taxable year is in the
highest rate bracket--
''(i) the tables under subsections (a),
(b), (c), and (d) shall be applied by
substituting '33%' for '36%' each place it
appears,
''(ii) 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 amount, over
''(II) the dollar amount at which
such bracket begins, and
''(iii) the 39.6 percent rate of tax under
such subsections shall apply only to the
taxpayer's taxable income in such bracket in
excess of the amount to which clause (i)
applies.
''(B) Highest rate bracket.--For purposes of this
paragraph, the term 'highest rate bracket' means the
bracket which would (determined without regard to this
paragraph) be the 39.6-percent rate bracket.
''(5) Applicable amount.--For purposes of this subsection--
''(A) In general.--The term 'applicable amount'
means the excess of--
''(i) the applicable threshold, over
''(ii) the sum of the following amounts in
effect for the taxable year:
''(I) the basic standard deduction
(within the meaning of section
63(c)(2)), and
''(II) the exemption amount (within
the meaning of section 151(d)(1)) (or,
in the case of subsection (a), 2 such
exemption amounts).
''(B) Applicable threshold.--The term 'applicable
threshold' means, in the case of any taxpayer for any
taxable year, the sum of--
''(i) the base amount, plus
''(ii) the small business and family farm
income of such taxpayer for such taxable year.
''(C) Base amount.--The term 'base amount' means--
''(i) $250,000 in the case of subsection
(a),
''(ii) $200,000 in the case of subsections
(b) and (c), and
''(iii) /2\ the amount applicable under
clause (i) (after adjustment, if any, under
subparagraph (G)) in the case of subsection
(d).
''(D) Small business and family farm income.--
''(i) In general.--The term 'small business
and family farm income' means, with respect to
any taxpayer for any taxable year, the gross
income of the taxpayer for such taxable year
which is attributable to--
''(I) any small trade or business
of the taxpayer (other than the trade
or business of being an employee), or
''(II) any dividends,
distributions, or interest received
from any small business.
''(ii) Deductions taken into account.--The
amount of gross income taken into account under
clause (i) shall be reduced by the amount of
any deductions properly allocable thereto.
''(iii) Small business.--The term 'small
business' means any corporation or partnership
which employed an average of less than 500
employees on business days during the taxable
year. A trade or business shall be treated as a
small trade or business if such trade or
business would be a small business if such
trade or business was a corporation. For
purposes of this clause, all persons treated as
a single employer under subsection (b), (c),
(m), or (o) of section 414 shall be treated as
a single entity.
''(E) Inflation adjustment.--For purposes of this
paragraph, with respect to taxable years beginning in
calendar years after 2012, each of the dollar amounts
under clauses (i) and (ii) of subparagraph (C) shall be
adjusted in the same manner as under paragraph (1)(C),
except that subsection (f)(3)(B) shall be applied by
substituting '2011' for '1992'.''.
(2) Phaseout of personal exemptions and itemized
deductions.--
(A) Overall limitation on itemized deductions.--
Section 68 is amended--
(i) by striking ''the applicable amount''
the first place it appears in subsection (a)
and inserting ''the applicable threshold in
effect under section 1(i)(3)'',
(ii) by striking ''the applicable amount''
in subsection (a)(1) and inserting ''such
applicable threshold'',
(iii) by striking subsection (b) and
redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively,
and
(iv) by striking subsections (f) and (g).
(B) Phaseout of deductions for personal
exemptions.--
(i) In general.--Paragraph (3) of section
151(d) is amended--
(I) by striking ''the threshold
amount'' in subparagraphs (A) and (B)
and inserting ''the applicable
threshold in effect under section
1(i)(3)'',
(II) by striking subparagraph (C)
and redesignating 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 calendar year after 1989,'' and
inserting the following:
''(4) Inflation adjustment.--In the case of any taxable
year beginning''.
(c) Effective Date.--Except as otherwise provided, the amendments
made by this section shall apply to taxable years beginning after
December 31, 2012.

SEC. 3. PERMANENT EXTENSION OF 2003 TAX RELIEF FOR MIDDLE-CLASS
FAMILIES, SMALL BUSINESSES, AND FAMILY FARMS.

(a) Permanent Extension.--
(1) In general.--Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 is hereby repealed.
(2) Effective date.--The repeal made by this subsection
shall take effect as if included in the enactment of the Jobs
and Growth Tax Relief Reconciliation Act of 2003.
(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 (if any) of--
''(I) the amount of taxable income
which would (without regard to this
paragraph) be taxed at a rate below 36
percent (39.6 percent in the case of a
taxpayer whose applicable amount (as
defined in subsection (i)(3)) is above
the dollar amount at which the highest
rate bracket (as defined in such
subsection) begins), 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),''.
(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
amendments 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. 4. TEMPORARY EXTENSION OF 2009 TAX RELIEF.

(a) American Opportunity Tax Credit.--
(1) In general.--Section 25A(i) is amended by striking ''or
2012'' and inserting ''2012, or 2013''.
(2) Treatment of possessions.--Section 1004(c)(1) of
division B of the American Recovery and Reinvestment Tax Act of
2009 is amended by striking ''and 2012'' each place it appears
and inserting ''2012, and 2013''.
(b) Child Tax Credit.--Section 24(d)(4) is amended--
(1) by striking ''and 2012'' in the heading and inserting
''2012, and 2013'', and
(2) by striking ''or 2012'' and inserting ''2012, or
2013''.
(c) Earned Income Tax Credit.--Section 32(b)(3) is amended--
(1) by striking ''and 2012'' in the heading and inserting
''2012, and 2013'', and
(2) by striking ''or 2012'' and inserting ''2012, or
2013''.
(d) Temporary Extension of Rule Disregarding Refunds in the
Administration of Federal Programs and Federally Assisted Programs.--
Subsection (b) of section 6409 is amended by striking ''December 31,
2012'' and inserting ''December 31, 2013''.
(e) Effective Dates.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.

SEC. 5. TEMPORARY EXTENSION OF ESTATE TAX RELIEF.

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

SEC. 6. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.

(a) In General.--Paragraph (1) of section 55(d) is amended--
(1) by striking ''$72,450'' and all that follows through
''2011'' in subparagraph (A) and inserting ''$78,750 in the
case of taxable years beginning in 2012'', and
(2) by striking ''$47,450'' and all that follows through
''2011'' in subparagraph (B) and inserting ''$50,600 in the
case of taxable years beginning in 2012''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.

SEC. 7. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.

(a) In General.--Paragraph (2) of section 26(a) is amended--
(1) by striking ''or 2011'' and inserting ''2011, or
2012'', and
(2) by striking ''2011'' in the heading thereof and
inserting ''2012''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
A:
Middle Class and Small Business Tax Relief Act of 2012 - Makes provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) permanent for taxpayers whose adjusted gross incomesdo not exceed a specified base amount (i.e., $200,000 for individual taxpayers and $250,000 for married couples filing jointly). Revises income tax rates to increase to 39.6% the maximum income tax rate for taxpayers whose incomes exceed the base amount.

Makes provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 that reduce the tax rate on dividend and capital gains income for taxpayers whose incomes do not exceed the base amount permanent. Increases to 20%the tax rate on dividend and capital gains income for taxpayers whose incomes are abovethe base amount.

Amends the Internal Revenue Code to extend for an additional year: (1) the increased Hope Scholarship tax credit (designated as the American Opportunity Tax Credit), (2) the increase in the refundable portion of the child tax credit, (3) the increased percentage of the earned income tax credit for taxpayers with three or more qualifying children,(4) the disregard of tax refunds for purposes of determining eligibility for certain means tested federal programs,(5) the increased exemption from the alternative minimum tax (AMT) for individual taxpayers, and (6) the offset against the AMT for certain nonrefundable personal tax credits.

Extends until December 31, 2013, the estate, gift, and generation-skipping transfer provisions of EGTRRA.