In the nature of a substitute.

SA 2573. Mr. HATCH (for himself, Mr. McConnell, Mr. Johanns, Mr.
Roberts, Mr. Burr, Mr. Thune, Mr. Cornyn, Mr. Kyl, Mr. Boozman, Mr.
Blunt, Mr. Rubio, Mr. McCain, Mr. Grassley, Mr. Barrasso, Mr. Kirk,
Mrs. Hutchison, Mr. Hoeven, Mr. Shelby, and Mr. Isakson) proposed an
amendment to the bill S. 3412, to amend the Internal Revenue Code of
1986 to provide tax relief to middle-class families; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Tax Hike Prevention Act of
2012''.

SEC. 2. TEMPORARY EXTENSION OF 2001 TAX RELIEF.

(a) In General.--Section 901 of the Economic Growth and Tax
Relief Reconciliation Act of 2001 is amended by striking
``December 31, 2012'' both places it appears 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. 3. TEMPORARY EXTENSION OF 2003 TAX RELIEF.

(a) In General.--Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 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

[[Page S5402]]

included in the enactment of the Jobs and Growth Tax Relief
Reconciliation Act of 2003.

SEC. 4. ALTERNATIVE MINIMUM TAX RELIEF.

(a) Temporary Extension of Increased Alternative Minimum
Tax Exemption Amount.--
(1) In general.--Paragraph (1) of section 55(d) of the
Internal Revenue Code of 1986 is amended--
(A) 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 $79,850 in the
case of taxable years beginning in 2013'', and
(B) 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 and $51,150 in the
case of taxable years beginning in 2013''.
(b) Temporary Extension of Alternative Minimum Tax Relief
for Nonrefundable Personal Credits.--
(1) In general.--Paragraph (2) of section 26(a) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``or 2011'' and inserting ``2011, 2012, or
2013'', and
(B) by striking ``2011'' in the heading thereof and
inserting ``2013''.
(c)  Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 5. 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) of the Internal
Revenue Code of 1986 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 subparagraph (C),
and
(D) in subparagraph (C), as so redesignated, by striking
``2012'' and inserting ``2013''.
(2) Reduction in limitation.--Section 179(b)(2) of such
Code 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 subparagraph (C),
and
(D) in subparagraph (C), as so redesignated, by striking
``2012'' and inserting ``2013''.
(3) Conforming amendment.--Subsection (b) of section 179 of
such Code is amended by striking paragraph (6).
(b) Computer Software.--Section 179(d)(1)(A)(ii) of the
Internal Revenue Code of 1986 is amended by striking ``2013''
and inserting ``2014''.
(c) Election.--Section 179(c)(2) of the Internal Revenue
Code of 1986 is amended by striking ``2013'' and inserting
``2014''.
(d) Special Rules for Treatment of Qualified Real
Property.--
(1) In general.--Section 179(f)(1) of the Internal Revenue
Code of 1986 is amended by striking ``2010 or 2011'' and
inserting ``2010, 2011, 2012, or 2013''.
(2) Carryover limitation.--
(A) In general.--Section 179(f)(4) of such Code is amended
by striking ``2011'' each place it appears and inserting
``2013''.
(B) Conforming amendment.--The heading for subparagraph (C)
of section 179(f)(4) of such Code is amended by striking
``2010'' and inserting ``2010, 2011 and 2012''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 6. INSTRUCTIONS FOR TAX REFORM.

(a) In General.--The Senate Committee on Finance shall
report legislation not later than 12 months after the date of
the enactment of this Act that consists of changes in laws
within its jurisdiction which meet the requirements of
subsection (b).
(b) Requirements.--Legislation meets the requirements of
this subsection if the legislation--
(1) simplifies the Internal Revenue Code of 1986 by
reducing the number of tax preferences and reducing
individual tax rates proportionally, with the highest
individual tax rate significantly below 35 percent;
(2) permanently repeals the alternative minimum tax;
(3) is projected, when compared to the current tax policy
baseline, to be revenue neutral or result in revenue losses;
(4) has a dynamic effect which is projected to stimulate
economic growth and lead to increased revenue;
(5) applies any increased revenue from stimulated economic
growth to additional rate reductions and does not permit any
such increased revenue to be used for additional Federal
spending;
(6) retains a progressive tax code; and
(7) provides for revenue-neutral reform of the taxation of
corporations and businesses by--
(A) providing a top tax rate on corporations of no more
than 25 percent; and
(B) implementing a competitive territorial tax system.
______