S.Amdt. 1960

1. Replaces the bill's text with a full substitute

   Replaces the full textEverything after the enacting clause

   In S. 2204 · Placed on Calendar Senate

   Struck: SECTION 1. SHORT TITLE.

   Struck: This Act may be cited as the "Repeal Big Oil Tax Subsidies Act".

   Struck: TITLE I--TAX EXTENSIONS RELATING TO ENERGY

   Struck: SEC. 101. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES.

   Inserted: SEC. __1. TAX ON BUSINESS ACTIVITIES.

   (a) In General.--[struck: Paragraph (2)][inserted: Section 11] of [struck: section 25C(g) of ]the Internal Revenue Code of 1986 is amended [struck: by striking "December 31, 2011" and inserting "December 31, 2012".][inserted: to read as follows:]

   Struck: (b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2011.

   Struck: SEC. 102. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

   Struck: (a) In General.--Subsection (f) of section 30 of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to vehicles acquired after December 31, 2011.

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   Struck: SEC. 103. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

   Struck: (a) Extension.--Paragraph (2) of section 30C(g) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011." and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2011.

   Struck: SEC. 104. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.

   Struck: (a) In General.--Subparagraph (H) of section 40(b)(6) of the Internal Revenue Code of 1986 is amended to read as follows:

   Struck: "(H) Application of paragraph.--

   Struck: "(i) In general.--This paragraph shall apply with respect to qualified cellulosic biofuel production after December 31, 2008, and before January 1, 2014.

   Struck: "(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.".

   Struck: (b) Conforming Amendment.--

   Struck: (1) In general.--Paragraph (2) of section 40(e) of the Internal Revenue Code of 1986 is amended by striking "or subsection (b)(6)(H)".

   Struck: (2) Effective date.--The amendment made by this subsection shall take effect as if included in section 15321(b) of the Heartland, Habitat, and Horticulture Act of 2008.

   Struck: SEC. 105. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES OF THE CELLULOSIC BIOFUEL PRODUCER CREDIT, ETC.

   Struck: (a) In General.--Subclause (I) of section 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is amended to read as follows:

   Struck: "(I) is derived by, or from, qualified feedstocks, and".

   Struck: (b) Qualified Feedstock; Special Rules for Algae.--Paragraph (6) of section 40(b) of the Internal Revenue Code of 1986 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:

   Struck: "(F) Qualified feedstock.--For purposes of this paragraph, the term 'qualified feedstock' means--

   Struck: "(i) any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and

   Struck: "(ii) any cultivated algae, cyanobacteria, or lemna.

   Struck: "(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 subparagraph (E)(iii)--

   Struck: "(i) such sale shall be treated as described in subparagraph (C)(i),

   Struck: "(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

   Struck: "(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.".

   Struck: (c) Algae Treated as a Qualified Feedstock for Purposes of Bonus Depreciation for Biofuel Plant Property.--

   Struck: (1) In general.--Subparagraph (A) of section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking "solely to produce cellulosic biofuel" and inserting "solely to produce second generation biofuel (as defined in section 40(b)(6)(E))".

   Struck: (2) Conforming amendments.--Subsection (l) of section 168 of such Code is amended--

   Struck: (A) by striking "cellulosic biofuel" each place it appears in the text thereof and inserting "second generation biofuel",

   Struck: (B) by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,

   Struck: (C) by striking "Cellulosic" in the heading of such subsection and inserting "Second Generation", and

   Struck: (D) by striking "cellulosic" in the heading of paragraph (2) and inserting "second generation".

   Struck: (d) Conforming Amendments.--

   Struck: (1) Section 40 of the Internal Revenue Code of 1986, as amended by subsection (b), is amended--

   Struck: (A) by striking "cellulosic biofuel" each place it appears in the text thereof and inserting "second generation biofuel",

   Struck: (B) by striking "Cellulosic" in the headings of subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting "Second generation", and

   Struck: (C) 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".

   Struck: (2) Clause (ii) of section 40(b)(6)(E) of such Code is amended by striking "Such term shall not" and inserting "The term 'second generation biofuel' shall not".

   Struck: (3) Paragraph (1) of section 4101(a) of such Code is amended by striking "cellulosic biofuel" and inserting "second generation biofuel".

   Struck: (e) Effective Dates.--

   Struck: (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to fuels sold or used after the date of the enactment of this Act.

   Struck: (2) Application to bonus depreciation.--The amendments made by subsection (c) shall apply to property placed in service after the date of the enactment of this Act.

   Struck: SEC. 106. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

   Struck: (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.-- Subsection (g) of section 40A of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Excise Tax Credits and Outlay Payments for Biodiesel and Renewable Diesel Fuel Mixtures.--

   Struck: (1) Paragraph (6) of section 6426(c) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (2) Subparagraph (B) of section 6427(e)(6) of such Code is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to fuel sold or used after December 31, 2011.

   Struck: SEC. 107. EXTENSION OF PRODUCTION CREDIT FOR REFINED COAL.

   Struck: (a) In General.--Subparagraph (B) of section 45(d)(8) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2012" and inserting "January 1, 2013".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to facilities placed in service after December 31, 2011.

   Struck: SEC. 108. EXTENSION OF PRODUCTION CREDIT.

   Struck: (a) In General.--Section 45(d) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2014" each place it appears in paragraphs (2), (3), (4), (6), (7), (9), and (11) and inserting "January 1, 2015".

   Struck: (b) Wind Facilities.--Paragraph (1) of section 45(d) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2013" and inserting "January 1, 2014".

   Struck: (c) Increased Credit Amount for Indian Coal Facilities Placed in Service Before 2009.--Subparagraph (A) of section 45(e)(10) of the Internal Revenue Code of 1986 is amended by striking "7-year period" each place it appears and inserting "8-year period".

   Struck: (d) Conforming Amendments.--Subsection (e) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended--

   Struck: (1) by striking "January 1, 2013" in paragraph (1) and inserting "January 1, 2014", and

   Struck: (2) by striking "January 1, 2014" in paragraph (2) and inserting "January 1, 2015".

   Struck: (e) Effective Dates.--

   Struck: (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to facilities placed in service after December 31, 2012.

   Struck: (2) Indian coal.--The amendment made by subsection (c) shall take effect on the date of the enactment of this Act.

   Struck: SEC. 109. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

   Struck: (a) In General.--Subsection (g) of section 45L of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to homes acquired after December 31, 2011.

   Struck: SEC. 110. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.

   Struck: (a) In General.--Section 45M(b) of the Internal Revenue Code of 1986 is amended by striking "2011" each place it appears other than in the provisions specified in subsection (b), and inserting "2011 or 2012".

   Struck: (b) Provisions Specified.--The provisions of section 45M(b) of the Internal Revenue Code of 1986 specified in this subsection are subparagraph (C) of paragraph (1) and subparagraph (E) of paragraph (2).

   Struck: (c) Effective Date.--The amendments made by this section shall apply to appliances produced after December 31, 2011.

   Struck: SEC. 111. EXTENSION OF ELECTION OF INVESTMENT TAX CREDIT IN LIEU OF PRODUCTION CREDIT.

   Struck: (a) In General.--Clause (ii) of section 48(a)(5)(C) of the Internal Revenue Code of 1986 is amended by striking "or 2013" and inserting "2013, or 2014".

   Struck: (b) Wind Facilities.--Clause (i) of section 48(a)(5)(C) of the Internal Revenue Code of 1986 is amended by striking "Any qualified facility" and all that follows and inserting "Any facility which is--

   Struck: "(I) a qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013, or

   Struck: "(II) a qualifying offshore wind facility, if such facility is placed in service in 2012, 2013, or 2014.".

   Struck: (c) Qualifying Offshore Wind Facility.--Paragraph (5) of section 48(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

   Struck: "(E) Qualifying offshore wind facility.--For purposes of this paragraph--

   Struck: "(i) In general.--The term 'qualifying offshore wind facility' means an offshore facility using wind to produce electricity.

   Struck: "(ii) Offshore facility.--The term 'offshore facility' means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the Outer Continental Shelf of the United States. For purposes of the preceding sentence, the term 'United States' has the meaning given in section 638(1).".

   Struck: (d) Effective Date.--The amendments made by this section shall apply to facilities placed in service after December 31, 2011.

   Struck: SEC. 112. EXPANSION OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

   Struck: (a) In General.--Subparagraph (B) of section 48C(d)(1) of the Internal Revenue Code of 1986 is amended by striking "$2,300,000,000" and inserting "$4,600,000,000".

   Struck: (b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

   Struck: SEC. 113. EXTENSION OF SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL PLANT PROPERTY.

   Struck: (a) In General.--Subparagraph (D) of section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2013" and inserting "January 1, 2014".

   Struck: (b) Conforming Amendment.--Paragraph (4) of section 168(l) of the Internal Revenue Code of 1986, as redesignated by this Act, is amended--

   Struck: (1) by striking "and" at the end of subparagraph (A),

   Struck: (2) by redesignating subparagraph (B) as subparagraph (C), and

   Struck: (3) by inserting after subparagraph (A) the following new subparagraph:

   Struck: "(B) by substituting 'January 1, 2014' for 'January 1, 2013' in clause (i) thereof, and".

   Struck: SEC. 114. EXTENSION OF SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL AND GAS FROM MARGINAL WELLS.

   Struck: (a) In General.--Clause (ii) of section 613A(c)(6)(H) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2012" and inserting "January 1, 2013".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 115. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

   Struck: (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C) of the Internal Revenue Code of 1986 are each amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendments made by this section shall apply to fuel sold or used after December 31, 2011.

   Struck: SEC. 116. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

   Struck: (a) In General.--Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009, as amended by section 707 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is amended--

   Struck: (1) by striking "or 2011" in paragraph (1) and inserting "2011, or 2012", and

   Struck: (2) in paragraph (2)--

   Struck: (A) by striking "after 2011" and inserting "after 2012", and

   Struck: (B) by striking "or 2011" and inserting "2011, or 2012".

   Struck: (b) Conforming Amendment.--Subsection (j) of section 1603 of division B of such Act, as so amended, is amended by striking "2012" and inserting "2013".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2011.

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

   Struck: (a) In General.--Subsection (e) of section 45N of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 118. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

   Struck: (a) In General.--Subsection (g) of section 179E of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2011.

   Struck: TITLE II--REPEAL OF OIL AND GAS SUBSIDIES

   Struck: Subtitle A--Close Big Oil Tax Loopholes

   Struck: SEC. 201. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY TAXPAYERS.

   Struck: (a) In General.--Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

   Struck: "(n) Special Rules Relating to Major Integrated Oil Companies Which Are Dual Capacity Taxpayers.--

   Struck: "(1) General rule.--Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax--

   Struck: "(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or

   Struck: "(B) to the extent such amount exceeds the amount (determined in accordance with regulations) which--

   Struck: "(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or

   Struck: "(ii) would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer. Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).

   Struck: "(2) Dual capacity taxpayer.--For purposes of this subsection, the term 'dual capacity taxpayer' means, with respect to any foreign country or possession of the United States, a person who--

   Struck: "(A) is subject to a levy of such country or possession, and

   Struck: "(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.

   Struck: "(3) Generally applicable income tax.--For purposes of this subsection--

   Struck: "(A) In general.--The term 'generally applicable income tax' means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.

   Struck: "(B) Exceptions.--Such term shall not include a tax unless it has substantial application, by its terms and in practice, to--

   Struck: "(i) persons who are not dual capacity taxpayers, and

   Struck: "(ii) persons who are citizens or residents of the foreign country or possession.".

   Struck: (b) Effective Date.--

   Struck: (1) In general.--The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.

   Struck: (2) Contrary treaty obligations upheld.--The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.

   Struck: SEC. 202. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

   Struck: (a) Denial of Deduction.--Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

   Struck: "(E) Special rule for certain oil and gas income.--In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term 'domestic production gross receipts' shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof.".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 203. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS.

   Struck: (a) In General.--Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: "This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

   Struck: SEC. 204. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS WELLS.

   Struck: (a) In General.--Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Struck: "(f) Application With Respect to Major Integrated Oil Companies.-- In the case of any taxable year in which the taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)), the allowance for percentage depletion shall be zero.".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 205. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

   Struck: (a) In General.--Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Struck: "(d) Application With Respect to Major Integrated Oil Companies.-- This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

   Struck: Subtitle B--Outer Continental Shelf Oil and Natural Gas

   Struck: SEC. 211. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS ROYALTY RELIEF.

   Struck: (a) In General.--Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.

   Struck: (b) Administration.--The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.

   Struck: TITLE III--BUDGETARY EFFECTS

   Struck: SEC. 301. DEFICIT REDUCTION.

   Struck: The net amount of any savings realized as a result of the enactment of this Act and the amendments made by this Act (after any expenditures authorized by this Act and the amendments made by this Act) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.

   Struck: SEC. 302. BUDGETARY EFFECTS.

   Struck: The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation" for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.

   Inserted: "SEC. 11. TAX IMPOSED ON BUSINESS ACTIVITIES.

   Inserted: "(a) Tax Imposed.--There is hereby imposed on every person engaged in a business activity a tax equal to 17 percent of the business taxable income of such person.

   Inserted: "(b) Liability for Tax.--The tax imposed by this section shall be paid by the person engaged in the business activity, whether such person is an individual, partnership, corporation, or otherwise.

   Inserted: "(c) Business Taxable Income.--For purposes of this section--

   Inserted: "(1) In general.--The term 'business taxable income' means gross active income reduced by the deductions specified in subsection (d).

   Inserted: "(2) Gross active income.--

   Inserted: "(A) In general.--For purposes of paragraph (1), the term 'gross active income' means gross receipts from--

   Inserted: "(i) the sale or exchange of property or services in the United States by any person in connection with a business activity, and

   Inserted: "(ii) the export of property or services from the United States in connection with a business activity.

   Inserted: "(B) Exchanges.--For purposes of this section, the amount treated as gross receipts from the exchange of property or services is the fair market value of the property or services received, plus any money received.

   Inserted: "(C) Coordination with special rules for financial services, etc.--Except as provided in subsection (e)--

   Inserted: "(i) the term 'property' does not include money or any financial instrument, and

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   Inserted: "(ii) the term 'services' does not include financial services.

   Inserted: "(3) Exemption from tax for activities of governmental entities and tax-exempt organizations.--For purposes of this section, the term 'business activity' does not include any activity of a governmental entity or of any other organization which is exempt from tax under this chapter.

   Inserted: "(d) Deductions.--

   Inserted: "(1) In general.--The deductions specified in this subsection are--

   Inserted: "(A) the cost of business inputs for the business activity,

   Inserted: "(B) wages (as defined in section 3121(a) without regard to paragraph (1) thereof) which are paid in cash for services performed in the United States as an employee, and

   Inserted: "(C) retirement contributions to or under any plan or arrangement which makes retirement distributions for the benefit of such employees to the extent such contributions are allowed as a deduction under section 404.

   Inserted: "(2) Business inputs.--

   Inserted: "(A) In general.--For purposes of paragraph (1), the term 'cost of business inputs' means--

   Inserted: "(i) the amount paid for property sold or used in connection with a business activity,

   Inserted: "(ii) the amount paid for services (other than for the services of employees, including fringe benefits paid by reason of such services) in connection with a business activity, and

   Inserted: "(iii) any excise tax, sales tax, customs duty, or other separately stated levy imposed by a Federal, State, or local government on the purchase of property or services which are for use in connection with a business activity.

   Inserted: Such term shall not include any tax imposed by chapter 2 or 21.

   Inserted: "(B) Exceptions.--Such term shall not include--

   Inserted: "(i) items described in subparagraphs (B) and (C) of paragraph (1), and

   Inserted: "(ii) items for personal use not in connection with any business activity.

   Inserted: "(C) Exchanges.--For purposes of this section, the amount treated as paid in connection with the exchange of property or services is the fair market value of the property or services exchanged, plus any money paid.

   Inserted: "(3) Retirement distributions.--For purposes of paragraph (1)(C), the term 'retirement distribution' means any distribution from--

   Inserted: "(A) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a),

   Inserted: "(B) an annuity plan described in section 403(a),

   Inserted: "(C) an annuity contract described in section 403(b),

   Inserted: "(D) an individual retirement account described in section 408(a),

   Inserted: "(E) an individual retirement annuity described in section 408(b),

   Inserted: "(F) an eligible deferred compensation plan (as defined in section 457),

   Inserted: "(G) a governmental plan (as defined in section 414(d)), or

   Inserted: "(H) a trust described in section 501(c)(18).

   Inserted: Such term includes any plan, contract, account, annuity, or trust which, at any time, has been determined by the Secretary to be such a plan, contract, account, annuity, or trust.

   Inserted: "(e) Special Rules for Financial Inter-mediation Service Activities.--In the case of the business activity of providing financial intermediation services, the taxable income from such activity shall be equal to the value of the intermediation services provided in such activity.

   Inserted: "(f) Exception for Services Performed as Employee.--For purposes of this section, the term 'business activity' does not include the performance of services by an employee for the employee's employer.

   Inserted: "(g) Carryover of Credit-equivalent of Excess Deductions.--

   Inserted: "(1) In general.--If the aggregate deductions for any taxable year exceed the gross active income for such taxable year, the credit-equivalent of such excess shall be allowed as a credit against the tax imposed by this section for the following taxable year.

   Inserted: "(2) Credit-equivalent of excess deductions.--For purposes of paragraph (1), the credit-equivalent of the excess described in paragraph (1) for any taxable year is an amount equal to--

   Inserted: "(A) the sum of--

   Inserted: "(i) such excess, plus

   Inserted: "(ii) the product of such excess and the 3-month Treasury rate for the last month of such taxable year, multiplied by

   Inserted: "(B) the rate of the tax imposed by subsection (a) for such taxable year.

   Inserted: "(3) Carryover of unused credit.--If the credit allowable for any taxable year by reason of this subsection exceeds the tax imposed by this section for such year, then (in lieu of treating such excess as an overpayment) the sum of--

   Inserted: "(A) such excess, plus

   Inserted: "(B) the product of such excess and the 3-month Treasury rate for the last month of such taxable year, shall be allowed as a credit against the tax imposed by this section for the following taxable year.

   Inserted: "(4) 3-month treasury rate.--For purposes of this subsection, the 3-month Treasury rate is the rate determined by the Secretary based on the average market yield (during any 1-month period selected by the Secretary and ending in the calendar month in which the determination is made) on outstanding marketable obligations of the United States with remaining periods to maturity of 3 months or less."

   Inserted: (b) Tax on Tax-exempt Entities Providing Noncash Compensation to Employees.--Section 4977 of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "SEC. 4977. TAX ON NONCASH COMPENSATION PROVIDED TO EMPLOYEES NOT ENGAGED IN BUSINESS ACTIVITY.

   Inserted: "(a) Imposition of Tax.--There is hereby imposed a tax equal to 17 percent of the value of excludable compensation provided during the calendar year by an employer for the benefit of employees to whom this section applies.

   Inserted: "(b) Liability for Tax.--The tax imposed by this section shall be paid by the employer.

   Inserted: "(c) Excludable Compensation.--For purposes of subsection (a), the term 'excludable compensation' means any remuneration for services performed as an employee other than--

   Inserted: "(1) wages (as defined in section 3121(a) without regard to paragraph (1) thereof) which are paid in cash,

   Inserted: "(2) remuneration for services performed outside the United States, and

   Inserted: "(3) retirement contributions to or under any plan or arrangement which makes retirement distributions (as defined in section 11(d)(3)).

   Inserted: "(d) Employees to Whom Section Applies.--This section shall apply to an employee who is employed in any activity by--

   Inserted: "(1) any organization which is exempt from taxation under this chapter, or

   Inserted: "(2) any agency or instrumentality of the United States, any State or political subdivision of a State, or the District of Columbia."

   Inserted: (c) Effective Date.--The amendments made by this title shall apply to taxable years beginning after December 31, 2012.

   Inserted: SEC. __2. REPEAL OF ALTERNATIVE MINIMUM TAX ON CORPORATIONS.

   Inserted: (a) In General.--Subsection (a) of section 55 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence:

   Inserted: "No tax shall be imposed by this section on any corporation for any taxable year beginning after December 31, 2012, and the tentative minimum tax of any corporation for any such taxable year shall be zero for purposes of this title.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

   Inserted: SEC. __3. REPEAL OF BUSINESS RELATED CREDITS.

   Inserted: Subparts D, E, F, G, H, I, and J of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 are repealed with respect to taxable years beginning after December 31, 2012.

   Inserted: SEC. __4. TECHNICAL AND CONFORMING AMENDMENTS.

   Inserted: The Secretary of the Treasury or the Secretary's delegate shall not later than 90 days after the date of the enactment of this Act, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a draft of any technical and conforming changes in the Internal Revenue Code of 1986 which are necessary to reflect throughout such Code the purposes of the provisions of, and amendments made by, this Act.

   Inserted: SEC. __5. SUPERMAJORITY REQUIRED TO CONSIDER BUSINESS REVENUE MEASURE.

   Inserted: A bill, joint resolution, amendment to a bill or joint resolution, or conference report that--

   Inserted: (1) includes an increase in the rate of tax specified in section 11(a) of the Internal Revenue Code of 1986 (as amended by this Act), or

   Inserted: (2) reduces the deductions specified in section 11(d) of such Code (as so amended), may not be considered as passed or agreed to by the House of Representatives or the Senate unless so determined by a vote of not less than two-thirds of the Members of the House of Representatives or the Senate (as the case may be) voting, a quorum being present.

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