In the nature of a substitute.

SA 3060. Mr. WYDEN submitted an amendment intended to be proposed by
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986
to allow employers to exempt employees with health coverage under
TRICARE or the Veterans Administration from being taken into account
for purposes of the employer mandate under the Patient Protection and
Affordable Care Act; which was ordered to lie on the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE, ETC.

(a) Short Title.--This Act may be cited as the ``Expiring
Provisions Improvement, Reform, and Efficiency Act of 2014''
or the ``EXPIRE Act of 2014''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title, etc.
Sec. 2. Sense of the Senate.

TITLE I--EXTENSIONS AND MODIFICATIONS OF EXPIRED AND EXPIRING TAX
PROVISIONS

Subtitle A--Provisions Expiring in 2013

PART I--Individual Tax Extenders

Sec. 101. Extension of health care tax credit.
Sec. 102. Extension of deduction for certain expenses of elementary and
secondary school teachers.
Sec. 103. Extension of exclusion from gross income of discharge of
qualified principal residence indebtedness.
Sec. 104. Extension of parity and modification of exclusion from income
for employer-provided mass transit and parking benefits.
Sec. 105. Extension of mortgage insurance premiums treated as qualified
residence interest.
Sec. 106. Extension of deduction of State and local general sales
taxes.
Sec. 107. Extension of special rule for contributions of capital gain
real property made for conservation purposes.
Sec. 108. Extension of above-the-line deduction for qualified tuition
and related expenses.
Sec. 109. Extension of tax-free distributions from individual
retirement plans for charitable purposes.

PART II--Business Tax Extenders

Sec. 111. Extension and modification of research credit.
Sec. 112. Extension and modification of temporary minimum low-income
housing tax credit rate for non-federally subsidized
buildings.
Sec. 113. Extension of military housing allowance exclusion for
determining whether a tenant in certain counties is low-
income.
Sec. 114. Extension of Indian employment tax credit.
Sec. 115. Extension and modification of new markets tax credit.
Sec. 116. Extension of railroad track maintenance credit.
Sec. 117. Extension of mine rescue team training credit.
Sec. 118. Extension and modification of employer wage credit for
employees who are active duty members of the uniformed
services.
Sec. 119. Extension and modification of work opportunity tax credit.
Sec. 120. Extension and modification of qualified zone academy bonds.
Sec. 121. Extension of classification of certain race horses as 3-year
property.
Sec. 122. Extension of 15-year straight-line cost recovery for
qualified leasehold improvements, qualified restaurant
buildings and improvements, and qualified retail
improvements.
Sec. 123. Extension of 7-year recovery period for motorsports
entertainment complexes.
Sec. 124. Extension of accelerated depreciation for business property
on an Indian reservation.
Sec. 125. Extension of bonus depreciation.
Sec. 126. Extension of enhanced charitable deduction for contributions
of food inventory.
Sec. 127. Extension and modification of increased expensing limitations
and treatment of certain real property as section 179
property.
Sec. 128. Extension of election to expense mine safety equipment.
Sec. 129. Extension of special expensing rules for certain film and
television productions; special expensing for live
theatrical productions.
Sec. 130. Extension of deduction allowable with respect to income
attributable to domestic production activities in Puerto
Rico.
Sec. 131. Extension of modification of tax treatment of certain
payments to controlling exempt organizations.
Sec. 132. Extension of treatment of certain dividends of regulated
investment companies.
Sec. 133. Extension of RIC qualified investment entity treatment under
FIRPTA.
Sec. 134. Extension of subpart F exception for active financing income.
Sec. 135. Extension of look-thru treatment of payments between related
controlled foreign corporations under foreign personal
holding company rules.
Sec. 136. Extension of temporary exclusion of 100 percent of gain on
certain small business stock.
Sec. 137. Extension of basis adjustment to stock of S corporations
making charitable contributions of property.
Sec. 138. Extension of reduction in S-corporation recognition period
for built-in gains tax.
Sec. 139. Extension of empowerment zone tax incentives.
Sec. 140. Extension of temporary increase in limit on cover over of rum
excise taxes to Puerto Rico and the Virgin Islands.
Sec. 141. Extension of American Samoa economic development credit.

PART III--Energy Tax Extenders

Sec. 151. Extension and modification of credit for nonbusiness energy
property.
Sec. 152. Extension of credit for 2-wheeled plug-in electric vehicles.
Sec. 153. Extension of second generation biofuel producer credit.
Sec. 154. Extension of incentives for biodiesel and renewable diesel.
Sec. 155. Extension and modification of production credit for Indian
coal facilities placed in service before 2009.

[[Page S2960]]

Sec. 156. Extension of credits with respect to facilities producing
energy from certain renewable resources.
Sec. 157. Extension of credit for energy-efficient new homes.
Sec. 158. Extension of special allowance for second generation biofuel
plant property.
Sec. 159. Extension and modification of energy efficient commercial
buildings deduction.
Sec. 160. Extension of special rule for sales or dispositions to
implement FERC or State electric restructuring policy for
qualified electric utilities.
Sec. 161. Extension of excise tax credits relating to certain fuels.

Subtitle B--Provisions Expiring in 2014

PART I--Energy Tax Extenders

Sec. 171. Extension of credit for new qualified fuel cell motor
vehicles.
Sec. 172. Extension of credit for alternative fuel vehicle refueling
property.

PART II--Extenders Relating to Multiemployer Defined Benefit Pension
Plans

Sec. 181. Extension of automatic extension of amortization periods.
Sec. 182. Extension of funding improvement and rehabilitation plan
rules.

Subtitle C--Revenue Provisions

Sec. 191. Penalty for failure to meet due diligence requirements for
the child tax credit.
Sec. 192. 100 percent continuous levy on payment to medicare providers
and suppliers.
Sec. 193. Exclusion from gross income of certain clean coal power
grants to non-corporate taxpayers.
Sec. 194. Reform of rules relating to qualified tax collection
contracts.
Sec. 195. Special compliance personnel program.
Sec. 196. Exclusion of dividends from controlled foreign corporations
from the definition of personal holding company income
for purposes of the personal holding company rules.
Sec. 197. Inflation adjustment for certain civil penalties under the
Internal Revenue Code of 1986.

TITLE II--TAX TECHNICAL CORRECTIONS

Sec. 201. Short title.
Sec. 202. Amendment relating to Middle Class Tax Relief and Job
Creation Act of 2012.
Sec. 203. Amendments relating to American Taxpayer Relief Act of 2012.
Sec. 204. Amendments relating to Regulated Investment Company
Modernization Act of 2010.
Sec. 205. Amendments relating to Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010.
Sec. 206. Amendments relating to Creating Small Business Jobs Act of
2010.
Sec. 207. Clerical amendment relating to Hiring Incentives to Restore
Employment Act.
Sec. 208. Amendments relating to American Recovery and Reinvestment Tax
Act of 2009.
Sec. 209. Amendments relating to Energy Improvement and Extension Act
of 2008.
Sec. 210. Amendments relating to Tax Extenders and Alternative Minimum
Tax Relief Act of 2008.
Sec. 211. Clerical amendments relating to Housing Assistance Tax Act of
2008.
Sec. 212. Amendments and provision relating to Heroes Earnings
Assistance and Relief Tax Act of 2008.
Sec. 213. Amendments relating to Economic Stimulus Act of 2008.
Sec. 214. Amendments relating to Tax Technical Corrections Act of 2007.
Sec. 215. Amendment relating to Tax Relief and Health Care Act of 2006.
Sec. 216. Amendment relating to Safe, Accountable, Flexible, Efficient
Transportation Equity Act of 2005: A Legacy for Users.
Sec. 217. Amendments relating to Energy Tax Incentives Act of 2005.
Sec. 218. Amendments relating to American Jobs Creation Act of 2004.
Sec. 219. Modification of treatment of certain health organizations.
Sec. 220. Other clerical corrections.
Sec. 221. Deadwood provisions.

TITLE III--HIRE MORE HEROES

Sec. 301. Short title.
Sec. 302. Employees with health coverage under TRICARE or the Veterans
Administration may be exempted from employer mandate
under Patient Protection and Affordable Care Act.

TITLE IV--BUDGETARY EFFECTS

Sec. 401. Budgetary effects.

SEC. 2. SENSE OF THE SENATE.

It is the sense of the Senate that--
(1) a process of comprehensive tax reform should commence
in the 114th Congress and should conclude before January 1,
2016;
(2) Congress should endeavor, as part of such a tax reform
process, to eliminate temporary provisions from the Internal
Revenue Code of 1986 by making permanent those provisions
that merit permanency and allowing others to expire;
(3) a major focus of such tax reform process should be
fostering economic growth and lowering tax rates by
broadening the tax base; and
(4) the chairman and ranking member of the Committee on
Finance of the Senate should consult with the chairman and
ranking member of the Committee on the Budget of the Senate
to ensure that the appropriate baseline is used in
determining the economic effects of, and rate adjustments
under, tax reform.

TITLE I--EXTENSIONS AND MODIFICATIONS OF EXPIRED AND EXPIRING TAX
PROVISIONS

Subtitle A--Provisions Expiring in 2013

PART I--INDIVIDUAL TAX EXTENDERS

SEC. 101. EXTENSION OF HEALTH CARE TAX CREDIT.

(a) In General.--Subparagraph (B) of section 35(b)(1) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to coverage months beginning after December 31,
2013.

SEC. 102. 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 2013'' and inserting ``2013, 2014,
or 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 103. EXTENSION OF EXCLUSION FROM GROSS INCOME OF
DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE
INDEBTEDNESS.

(a) In General.--Subparagraph (E) of section 108(a)(1) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to indebtedness discharged after December 31,
2013.

SEC. 104. EXTENSION OF PARITY AND MODIFICATION OF EXCLUSION
FROM INCOME FOR EMPLOYER-PROVIDED MASS TRANSIT
AND PARKING BENEFITS.

(a) Extension.--
(1) In general.--Paragraph (2) of section 132(f) is amended
by striking ``January 1, 2014'' and inserting ``January 1,
2016''.
(2) Effective date.--The amendment made by this subsection
shall apply to months after December 31, 2013.
(b) Use of a Bike Share Program as a Qualified
Transportation Fringe.--
(1) In general.--Section 132(f)(5)(F) is amended--
(A) in clause (i), by striking ``repair, and storage, if
such bicycle'' and inserting ``repair, and storage (or use of
a bike sharing program, in the case of taxable years
beginning before January 1, 2016), if such bicycle or bike
sharing program'', and
(B) in clause (iii)(I), by inserting ``or bike sharing
program'' after ``bicycle''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2013.

SEC. 105. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS
QUALIFIED RESIDENCE INTEREST.

(a) In General.--Subclause (I) of section 163(h)(3)(E)(iv)
is amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or accrued after December 31,
2013.

SEC. 106. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL
SALES TAXES.

(a) In General.--Subparagraph (I) of section 164(b)(5) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 107. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF
CAPITAL GAIN REAL PROPERTY MADE FOR
CONSERVATION PURPOSES.

(a) In General.--Clause (vi) of section 170(b)(1)(E) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Contributions by Certain Corporate Farmers and
Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by
striking ``December 31, 2013'' and inserting ``December 31,
2015''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2013.

SEC. 108. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED
TUITION AND RELATED EXPENSES.

(a) In General.--Subsection (e) of section 222 is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 109. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL
RETIREMENT PLANS FOR CHARITABLE PURPOSES.

(a) In General.--Subparagraph (F) of section 408(d)(8) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2013.

PART II--BUSINESS TAX EXTENDERS

SEC. 111. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

(a) Extension.--
(1) In general.--Paragraph (1) of section 41(h) is amended
by striking ``paid or incurred'' and all that follows and
inserting ``paid or incurred after December 31, 2015.''.

[[Page S2961]]

(2) Conforming amendment.--Subparagraph (D) of section
45C(b)(1) is amended to read as follows:
``(D) Special rule.--If section 41 is not in effect for any
period, such section shall be deemed to remain in effect for
such period for purposes of this paragraph.''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2013.
(b) Treatment of Research Credit for Certain Startup
Companies.--
(1) In general.--Section 41 is amended by adding at the end
the following new subsection:
``(i) Treatment of Credit for Qualified Small Businesses.--
``(1) In general.--At the election of a qualified small
business for any taxable year, section 3111(f) shall apply to
the payroll tax credit portion of the credit otherwise
determined under subsection (a) for the taxable year and such
portion shall not be treated (other than for purposes of
section 280C) as a credit determined under subsection (a).
``(2) Payroll tax credit portion.--For purposes of this
subsection, the payroll tax credit portion of the credit
determined under subsection (a) with respect to any qualified
small business for any taxable year is the least of--
``(A) the amount specified in the election made under this
subsection,
``(B) the credit determined under subsection (a) for the
taxable year (determined before the application of this
subsection), or
``(C) in the case of a qualified small business other than
a partnership or S corporation, the amount of the business
credit carryforward under section 39 carried from the taxable
year (determined before the application of this subsection to
the taxable year).
``(3) Qualified small business.--For purposes of this
subsection--
``(A) In general.--The term `qualified small business'
means, with respect to any taxable year--
``(i) a corporation or partnership, if--

``(I) the gross receipts (as determined under the rules of
section 448(c)(3), without regard to subparagraph (A)
thereof) of such entity for the taxable year is less than
$5,000,000, and
``(II) such entity did not have gross receipts (as so
determined) for any taxable year preceding the 5-taxable-year
period ending with such taxable year, and

``(ii) any person (other than a corporation or partnership)
who meets the requirements of subclauses (I) and (II) of
clause (i), determined--

``(I) by substituting `person' for `entity' each place it
appears, and
``(II) by only taking into account the aggregate gross
receipts received by such person in carrying on all trades or
businesses of such person.

``(B) Limitation.--Such term shall not include an
organization which is exempt from taxation under section 501.
``(4) Election.--
``(A) In general.--Any election under this subsection for
any taxable year--
``(i) shall specify the amount of the credit to which such
election applies,
``(ii) shall be made on or before the due date (including
extensions) of--

``(I) in the case of a qualified small business which is a
partnership, the return required to be filed under section
6031,
``(II) in the case of a qualified small business which is
an S corporation, the return required to be filed under
section 6037, and
``(III) in the case of any other qualified small business,
the return of tax for the taxable year, and

``(iii) may be revoked only with the consent of the
Secretary.
``(B) Limitations.--
``(i) Amount.--The amount specified in any election made
under this subsection shall not exceed $250,000.
``(ii) Number of taxable years.--A person may not make an
election under this subsection if such person (or any other
person treated as a single taxpayer with such person under
paragraph (5)(A)) has made an election under this subsection
for 5 or more preceding taxable years.
``(C) Special rule for partnerships and s corporations.--In
the case of a qualified small business which is a partnership
or S corporation, the election made under this subsection
shall be made at the entity level.
``(5) Aggregation rules.--
``(A) In general.--Except as provided in subparagraph (B),
all persons or entities treated as a single taxpayer under
subsection (f)(1) shall be treated as a single taxpayer for
purposes of this subsection.
``(B) Special rules.--For purposes of this subsection and
section 3111(f)--
``(i) each of the persons treated as a single taxpayer
under subparagraph (A) may separately make the election under
paragraph (1) for any taxable year, and
``(ii) the $250,000 amount under paragraph (4)(B)(i) shall
be allocated among all persons treated as a single taxpayer
under subparagraph (A) in the same manner as under
subparagraph (A)(ii) or (B)(ii) of subsection (f)(1),
whichever is applicable.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection, including--
``(A) regulations to prevent the avoidance of the purposes
of the limitations and aggregation rules under this
subsection through the use of successor companies or other
means,
``(B) regulations to minimize compliance and record-keeping
burdens under this subsection, and
``(C) regulations for recapturing the benefit of credits
determined under section 3111(f) in cases where there is a
subsequent adjustment to the payroll tax credit portion of
the credit determined under subsection (a), including
requiring amended income tax returns in the cases where there
is such an adjustment.''.
(2) Credit allowed against fica taxes.--Section 3111 is
amended by adding at the end the following new subsection:
``(f) Credit for Research Expenditures of Qualified Small
Businesses.--
``(1) In general.--In the case of a taxpayer who has made
an election under section 41(i) for a taxable year, there
shall be allowed as a credit against the tax imposed by
subsection (a) for the first calendar quarter which begins
after the date on which the taxpayer files the return
specified in section 41(i)(4)(A)(ii) an amount equal to the
payroll tax credit portion determined under section 41(i)(2).
``(2) Limitation.--The credit allowed by paragraph (1)
shall not exceed the tax imposed by subsection (a) for any
calendar quarter on the wages paid with respect to the
employment of all individuals in the employ of the employer.
``(3) Carryover of unused credit.--If the amount of the
credit under paragraph (1) exceeds the limitation of
paragraph (2) for any calendar quarter, such excess shall be
carried to the succeeding calendar quarter and allowed as a
credit under paragraph (1) for such quarter.
``(4) Deduction allowed for credited amounts.--The credit
allowed under paragraph (1) shall not be taken into account
for purposes of determining the amount of any deduction
allowed under chapter 1 for taxes imposed under subsection
(a).''.
(3) Effective date.--The amendments made by this subsection
shall apply to credits determined for taxable years beginning
after December 31, 2013.
(c) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subparagraph (B) of section 38(c)(4) is
amended--
(A) by redesignating clauses (ii), (iii), (iv), (v), (vi),
(vii), (viii), and (ix) as clauses (iii), (iv), (v), (vi),
(vii), (viii), (ix), and (x), respectively, and
(B) by inserting after clause (i) the following new clause:
``(ii) the credit determined under section 41 with respect
to an eligible small business (as defined in paragraph
(5)(C), after application of rules similar to the rules of
paragraph (5)(D)),''.
(2) Effective date.--The amendments made by this subsection
shall apply to credits determined for taxable years beginning
after December 31, 2013, and to carrybacks of such credits.

SEC. 112. EXTENSION AND MODIFICATION OF TEMPORARY MINIMUM
LOW-INCOME HOUSING TAX CREDIT RATE FOR NON-
FEDERALLY SUBSIDIZED BUILDINGS.

(a) In General.--Subparagraph (A) of section 42(b)(2) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Temporary Minimum Credit Rate for Non-federally
Subsidized Existing Buildings.--Subsection (b) of section 42
is amended by redesignating paragraph (3) as paragraph (4)
and by inserting after paragraph (2) the following new
paragraph:
``(3) Temporary minimum credit rate for non-federally
subsidized existing buildings.--In the case of any existing
building--
``(A) which is placed in service by the taxpayer after the
date of the enactment of the EXPIRE Act of 2014 with respect
to housing credit dollar amount allocations made before
January 1, 2016, and
``(B) which is not federally subsidized for the taxable
year,
the applicable percentage shall not be less than 4
percent.''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2014.

SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE EXCLUSION
FOR DETERMINING WHETHER A TENANT IN CERTAIN
COUNTIES IS LOW-INCOME.

(a) In General.--Subsection (b) of section 3005 of the
Housing Assistance Tax Act of 2008 is amended by striking
``January 1, 2014'' each place it appears and inserting
``January 1, 2016''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
3005 of the Housing Assistance Tax Act of 2008.

SEC. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

(a) In General.--Subsection (f) of section 45A is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 115. EXTENSION AND MODIFICATION OF NEW MARKETS TAX
CREDIT.

(a) In General.--Subparagraph (G) of section 45D(f)(1) is
amended by striking ``and 2013'' and inserting ``2013, 2014,
and 2015''.
(b) Carryover of Unused Limitation.--Paragraph (3) of
section 45D(f) is amended by striking ``2018'' and inserting
``2020''.
(c) Allocations Designated for Areas Impacted by Decline in
Manufacturing.--Paragraph (3) of section 45D(f), as amended
by subsection (b), is amended--

[[Page S2962]]

(1) by striking ``If the new markets tax credit
limitation'' and inserting the following:
``(A) In general.--If the new markets tax credit
limitation'',
(2) by striking ``No'' in the last sentence and inserting
``Except as provided in subparagraph (B), no'', and
(3) by adding at the end, the following new subparagraph:
``(B) Certain amounts available for areas impacted by
decline in manufacturing.--Any amount carried to a calendar
year after the year described in the second sentence of
subparagraph (A) shall be available only for allocation to
qualified community development entities a significant
mission of which is providing investments and services to
persons in the trade or business of manufacturing products in
communities which have suffered major manufacturing job
losses or a major manufacturing job loss event, as designated
by the Secretary.''.
(d) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after December 31,
2013.

SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

(a) In General.--Subsection (f) of section 45G is amended
by striking ``January 1, 2014'' and inserting ``January 1,
2016''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2013.

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

(a) In General.--Subsection (e) of section 45N is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 118. EXTENSION AND MODIFICATION OF EMPLOYER WAGE CREDIT
FOR EMPLOYEES WHO ARE ACTIVE DUTY MEMBERS OF
THE UNIFORMED SERVICES.

(a) In General.--Subsection (f) of section 45P is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Applicability to All Employers.--
(1) In general.--Subsection (a) of section 45P is amended
by striking ``, in the case of an eligible small business
employer''.
(2) Conforming amendment.--Paragraph (3) of section 45P(b)
is amended to read as follows:
``(3) Controlled groups.--All persons treated as a single
employer under subsection (b), (c), (m), or (o) of section
414 shall be treated as a single employer.''.
(c) Expansion to 100 Percent of Eligible Differential Wage
Payments.--Subsection (a) of section 45P is amended by
striking ``20 percent of the sum'' and inserting ``the sum''.
(d) Effective Date.--The amendments made by this section
shall apply to payments made after December 31, 2013.

SEC. 119. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX
CREDIT.

(a) In General.--Paragraph (4) of section 51(c) is amended
by striking ``for the employer'' and all that follows and
inserting ``for the employer after December 31, 2015''.
(b) Credit for Hiring Long-term Unemployment Recipients.--
(1) In general.--Paragraph (1) of section 51(d) is amended
by striking ``or'' at the end of subparagraph (H), by
striking the period at the end of subparagraph (I) and
inserting ``, or'', and by adding at the end the following
new subparagraph:
``(J) a qualified long-term unemployment recipient.''.
(2) Qualified long-term unemployment recipient.--Subsection
(d) of section 51 is amended by adding at the end the
following new paragraph:
``(15) Qualified long-term unemployment recipient.--The
term `qualified long-term unemployment recipient' means any
individual who is certified by the designated local agency as
being in a period of unemployment which--
``(A) is not less than 27 consecutive weeks, and
``(B) includes a period in which the individual was
receiving unemployment compensation under State or Federal
law.''.
(c) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after December 31, 2013.

SEC. 120. EXTENSION AND MODIFICATION OF QUALIFIED ZONE
ACADEMY BONDS.

(a) Extension.--Paragraph (1) of section 54E(c) is amended
by striking ``and 2013'' and inserting ``2013, 2014, and
2015''.
(b) Reduction of Private Business Contribution
Requirement.--Subsection (b) of section 54E is amended by
striking ``10 percent'' and inserting ``5 percent''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall apply to obligations issued after December 31,
2013.
(d) Technical Correction and Conforming Amendment.--
(1) In general.--Clause (iii) of section 6431(f)(3)(A) is
amended--
(A) by striking ``2011'' and inserting ``years after
2010'', and
(B) by striking ``of such allocation'' and inserting ``of
any such allocation''.
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in section 310 of the
American Taxpayer Relief Act of 2012.

SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES
AS 3-YEAR PROPERTY.

(a) In General.--Clause (i) of section 168(e)(3)(A) is
amended--
(1) by striking ``January 1, 2014'' in subclause (I) and
inserting ``January 1, 2016'', and
(2) by striking ``December 31, 2013'' in subclause (II) and
inserting ``December 31, 2015''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 122. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY
FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED
RESTAURANT BUILDINGS AND IMPROVEMENTS, AND
QUALIFIED RETAIL IMPROVEMENTS.

(a) In General.--Clauses (iv), (v), and (ix) of section
168(e)(3)(E) are each amended by striking ``January 1, 2014''
and inserting ``January 1, 2016''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 123. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS
ENTERTAINMENT COMPLEXES.

(a) In General.--Subparagraph (D) of section 168(i)(15) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 124. 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, 2013'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 125. EXTENSION OF BONUS DEPRECIATION.

(a) In General.--Paragraph (2) of section 168(k) is
amended--
(1) by striking ``January 1, 2015'' in subparagraph (A)(iv)
and inserting ``January 1, 2017'', and
(2) by striking ``January 1, 2014'' each place it appears
and inserting ``January 1, 2016''.
(b) Special Rule for Federal Long-Term Contracts.--Clause
(ii) of section 460(c)(6)(B) is amended by striking ``January
1, 2014 (January 1, 2015'' and inserting ``January 1, 2016
(January 1, 2017''.
(c) Extension of Election To Accelerate the AMT Credit in
Lieu of Bonus Depreciation.--
(1) In general.--Subclause (II) of section
168(k)(4)(D)(iii) is amended by striking ``January 1, 2014''
and inserting ``January 1, 2016''.
(2) Round 4 extension property.--Paragraph (4) of section
168(k) is amended by adding at the end the following new
subparagraph:
``(K) Special rules for round 4 extension property.--
``(i) In general.--In the case of round 4 extension
property, in applying this paragraph to any taxpayer--

``(I) the limitation described in subparagraph (B)(i) and
the business credit increase amount under subparagraph
(E)(iii) thereof shall not apply, and
``(II) the bonus depreciation amount, maximum amount, and
maximum increase amount shall be computed separately from
amounts computed with respect to eligible qualified property
which is not round 4 extension property, and, in the case of
round 4 extension property, shall be computed separately with
respect to round 4 extension property placed in service
before January 1, 2015 (January 1, 2016, in the case of
property described in subparagraph (B) or (C) of paragraph
(2)) and with respect to other round 4 extension property.

``(ii) Election.--

``(I) A taxpayer who has an election in effect under this
paragraph for round 3 extension property shall be treated as
having an election in effect for round 4 extension property
unless the taxpayer elects to not have this paragraph apply
to round 4 extension property.
``(II) A taxpayer who does not have an election in effect
under this paragraph for round 3 extension property may elect
to have this paragraph apply to round 4 extension property.

``(iii) Round 4 extension property.--For purposes of this
subparagraph, the term `round 4 extension property' means
property which is eligible qualified property solely by
reason of the extension of the application of the special
allowance under paragraph (1) pursuant to the amendments made
by section 125(a) of the EXPIRE Act of 2014 (and the
application of such extension to this paragraph pursuant to
the amendment made by section 125(c) of such Act).''.
(d) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(2) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking ``pre-january 1, 2014'' and inserting
``pre-january 1, 2016''.
(3) Subparagraph (C) of section 168(n)(2) is amended by
striking ``January 1, 2014'' and inserting ``January 1,
2016''.
(4) Subparagraph (D) of section 1400L(b)(2) is amended by
striking ``January 1, 2014'' and inserting ``January 1,
2016''.
(5) Subparagraph (B) of section 1400N(d)(3) is amended by
striking ``January 1, 2014'' and inserting ``January 1,
2016''.
(e) Technical Amendment Relating to Section 331 of the
American Taxpayer Relief Act of 2012.--

[[Page S2963]]

(1) In general.--Clause (iii) of section 168(k)(4)(J) is
amended by striking ``any taxable year'' and inserting ``its
first taxable year''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provision of the
American Taxpayer Relief Act of 2012 to which it relates.
(f) Effective Date.--Except as provided in subsection
(e)(2), the amendments made by this section shall apply to
property placed in service after December 31, 2013, in
taxable years ending after such date.

SEC. 126. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF FOOD INVENTORY.

(a) In General.--Clause (iv) of section 170(e)(3)(C) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2013.

SEC. 127. EXTENSION AND MODIFICATION OF INCREASED EXPENSING
LIMITATIONS AND TREATMENT OF CERTAIN REAL
PROPERTY AS SECTION 179 PROPERTY.

(a) In General.--
(1) Dollar limitation.--Section 179(b)(1) is amended--
(A) by striking ``beginning in 2010, 2011, 2012, or 2013''
in subparagraph (B) and inserting ``beginning after 2009 and
before 2016'', and
(B) by striking ``2013'' in subparagraph (C) and inserting
``2015''.
(2) Reduction in limitation.--Section 179(b)(2) is
amended--
(A) by striking ``beginning in 2010, 2011, 2012, or 2013''
in subparagraph (B) and inserting ``beginning after 2009 and
before 2016'', and
(B) by striking ``2013'' in subparagraph (C) and inserting
``2015''.
(b) Computer Software.--Section 179(d)(1)(A)(ii) is amended
by striking ``2014'' and inserting ``2016''.
(c) Election.--Section 179(c)(2) is amended by striking
``2014'' and inserting ``2016''.
(d) Special Rules for Treatment of Qualified Real
Property.--
(1) In general.--Section 179(f)(1) is amended by striking
``beginning in 2010, 2011, 2012, or 2013'' and inserting
``beginning after 2009 and before 2016''.
(2) Carryover limitation.--
(A) In general.--Section 179(f)(4) is amended by striking
``2013'' each place it appears and inserting ``2015''.
(B) Conforming amendment.--The heading of subparagraph (C)
of section 179(f)(4) is amended by striking ``2011 and 2012''
and inserting ``2011, 2012, 2013, and 2014''.
(e) Adjustment for Inflation.--Subsection (b) of section
179 of the Internal Revenue Code of 1986 is amended by adding
at the end the following new paragraph:
``(6) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2013, the $500,000 amount in paragraph (1)(B)
and the $2,000,000 amount in paragraph (2)(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, by substituting `calendar year 2012' for
`calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--
``(i) Dollar limitation.--If the amount in paragraph (1)(B)
as increased under subparagraph (A) is not a multiple of
$1,000, such amount shall be rounded to the nearest multiple
of $1,000.
``(ii) Phaseout amount.--If the amount in paragraph (2)(B)
as increased under subparagraph (A) is not a multiple of
$10,000, such amount shall be rounded to the nearest multiple
of $10,000.''.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY
EQUIPMENT.

(a) In General.--Subsection (g) of section 179E is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN
FILM AND TELEVISION PRODUCTIONS; SPECIAL
EXPENSING FOR LIVE THEATRICAL PRODUCTIONS.

(a) In General.--Subsection (f) of section 181 is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Application to Live Productions.--
(1) In general.--Paragraph (1) of section 181(a) is amended
by inserting ``, and any qualified live theatrical
production,'' after ``any qualified film or television
production''.
(2) Conforming amendments.--Section 181 is amended--
(A) by inserting ``or any qualified live theatrical
production'' after ``qualified film or television
production'' each place it appears in subsections (a)(2),
(b), and (c)(1),
(B) by inserting ``or qualified live theatrical
productions'' after ``qualified film or television
productions'' in subsection (f), and
(C) by inserting ``and live theatrical'' after ``film and
television'' in the heading.
(3) Clerical amendment.--The item relating to section 181
in the table of sections for part VI of subchapter B of
chapter 1 is amended to read as follows:

``Sec. 181. Treatment of certain qualified film and television and live
theatrical productions.''.

(c) Qualified Live Theatrical Production.--Section 181 is
amended--
(1) by redesignating subsections (e) and (f), as amended by
subsections (a) and (b), as subsections (f) and (g),
respectively, and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Qualified Live Theatrical Production.--For purposes
of this section--
``(1) In general.--The term `qualified live theatrical
production' means any production described in paragraph (2)
if 75 percent of the total compensation of the production is
qualified compensation (as defined in subsection (d)(3)).
``(2) Production.--
``(A) In general.--A production is described in this
paragraph if such production is a live staged production of a
play (with or without music) which is derived from a written
book or script and is produced or presented by a taxable
entity in any venue which has an audience capacity of not
more than 3,000 or a series of venues the majority of which
have an audience capacity of not more than 3,000.
``(B) Touring companies, etc.--In the case of multiple live
staged productions--
``(i) for which the election under this section would be
allowable to the same taxpayer, and
``(ii) which are--

``(I) separate phases of a production, or
``(II) separate simultaneous stagings of the same
production in different geographical locations (not including
multiple performance locations of any one touring
production),

each such live staged production shall be treated as a
separate production.
``(C) Phase.--For purposes of subparagraph (B), the term
`phase' with respect to any qualified live theatrical
production refers to each of the following, but only if each
of the following is treated by the taxpayer as a separate
activity for all purposes of this title:
``(i) The initial staging of a live theatrical production.
``(ii) Subsequent additional stagings or touring of such
production which are produced by the same producer as the
initial staging.
``(D) Exception.--A production is not described in this
paragraph if such production includes or consists of any
performance of conduct described in section 2257(h)(1) of
title 18, United States Code.''.
(d) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to productions commencing after December 31, 2013.
(2) Commencement.--For purposes of paragraph (1), the date
on which a qualified live theatrical production commences is
the date of the first public performance of such production
for a paying audience.

SEC. 130. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO
INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION
ACTIVITIES IN PUERTO RICO.

(a) In General.--Subparagraph (C) of section 199(d)(8) is
amended--
(1) by striking ``first 8 taxable years'' and inserting
``first 10 taxable years'', and
(2) by striking ``January 1, 2014'' and inserting ``January
1, 2016''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 131. EXTENSION OF MODIFICATION OF TAX TREATMENT OF
CERTAIN PAYMENTS TO CONTROLLING EXEMPT
ORGANIZATIONS.

(a) In General.--Clause (iv) of section 512(b)(13)(E) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2013.

SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF
REGULATED INVESTMENT COMPANIES.

(a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of
section 871(k) are each amended by striking ``December 31,
2013'' and inserting ``December 31, 2015''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY
TREATMENT UNDER FIRPTA.

(a) In General.--Clause (ii) of section 897(h)(4)(A) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--
(1) In general.--The amendment made by this section shall
take effect on January 1, 2014. Notwithstanding the preceding
sentence, such amendment shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of
the enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
(A) which makes a distribution after December 31, 2013, and
before the date of the enactment of this Act, and
(B) which would (but for the second sentence of paragraph
(1)) have been required to withhold with respect to such
distribution under section 1445 of such Code,

such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld
and paid over to the Secretary of the Treasury.

[[Page S2964]]

SEC. 134. 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, 2014'' and inserting ``January
1, 2016'', and
(2) by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Special Rule for Income Derived in the Active Conduct
of Banking, Financing, or Similar Businesses.--Paragraph (9)
of section 954(h) is amended by striking ``January 1, 2014''
and inserting ``January 1, 2016''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2013, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.

SEC. 135. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS
BETWEEN RELATED CONTROLLED FOREIGN CORPORATIONS
UNDER FOREIGN PERSONAL HOLDING COMPANY RULES.

(a) In General.--Subparagraph (C) of section 954(c)(6) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2013, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.

SEC. 136. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF
GAIN ON CERTAIN SMALL BUSINESS STOCK.

(a) In General.--Paragraph (4) of section 1202(a) is
amended--
(1) by striking ``January 1, 2014'' and inserting ``January
1, 2016'', and
(2) by striking ``and 2013'' in the heading and inserting
``2013, 2014, and 2015''.
(b) Effective Date.--The amendments made by this section
shall apply to stock acquired after December 31, 2013.

SEC. 137. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S
CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF
PROPERTY.

(a) In General.--Paragraph (2) of section 1367(a) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2013.

SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION
PERIOD FOR BUILT-IN GAINS TAX.

(a) In General.--Subparagraph (C) of section 1374(d)(7) is
amended--
(1) by striking ``2012 or 2013'' and inserting ``2012,
2013, 2014, or 2015'', and
(2) by striking ``2012 and 2013'' in the heading and
inserting ``2012, 2013, 2014, and 2015''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.

SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

(a) In General.--Clause (i) of section 1391(d)(1)(A) is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of an empowerment
zone the nomination for which included a termination date
which is contemporaneous with the date specified in
subparagraph (A)(i) of section 1391(d)(1) of the Internal
Revenue Code of 1986 (as in effect before the enactment of
this Act), subparagraph (B) of such section shall not apply
with respect to such designation if, after the date of the
enactment of this section, the entity which made such
nomination amends the nomination to provide for a new
termination date in such manner as the Secretary of the
Treasury (or the Secretary's designee) may provide.
(c) Technical Amendments Relating to Section 753 of the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010; Extension of Nonrecognition of Gain on
Rollover of Empowerment Zone Investments.--Subparagraph (A)
of section 1397B(b)(1) is amended by striking ``and'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at the
end the following new clause:
``(iv) `January 1, 2016' were substituted for `January 1,
2010' each place it appears.''.
(d) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
apply to periods after December 31, 2013.
(2) Technical amendments.--The amendments made by
subsection (c) shall take effect as if included in section
753 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010.

SEC. 140. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER
OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE
VIRGIN ISLANDS.

(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2013.

SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT
CREDIT.

(a) In General.--Subsection (d) of section 119 of division
A of the Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``January 1, 2014'' each place it appears
and inserting ``January 1, 2016'',
(2) by striking ``first 8 taxable years'' in paragraph (1)
and inserting ``first 10 taxable years'', and
(3) by striking ``first 2 taxable years'' in paragraph (2)
and inserting ``first 4 taxable years''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.

PART III--ENERGY TAX EXTENDERS

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

(a) In General.--Paragraph (2) of section 25C(g) is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Updated Energy Star Requirements for Windows, Doors,
Skylights, and Roofing.--
(1) In general.--Paragraph (1) of section 25C(c) is amended
by striking ``which meets'' and all that follows through
``requirements)''.
(2) Energy efficient building envelope component.--
Subsection (c) of section 25C is amended by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4),
respectively, and by inserting after paragraph (1) the
following new paragraph:
``(2) Energy efficient building envelope component.--The
term `energy efficient building envelope component' means a
building envelope component which meets--
``(A) applicable Energy Star program requirements, in the
case of a roof or roof products,
``(B) version 6.0 Energy Star program requirements, in the
case of an exterior window, a skylight, or an exterior door,
and
``(C) the prescriptive criteria for such component
established by the 2009 International Energy Conservation
Code, as such Code (including supplements) is in effect on
the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009, in the case of any other
component.''.
(3) Conforming amendment.--Subparagraph (D) of section
25C(c)(3), as so redesignated, is amended to read as follows:
``(D) any roof or roof products which are installed on a
dwelling unit and are specifically and primarily designed to
reduce the heat gain of such dwelling unit.''.
(c) Separate Standards for Tankless and Storage Water
Heaters.--
(1) In general.--Subparagraph (D) of section 25C(d)(3) is
amended by striking ``which has either'' and all that follows
and inserting ``which has either--
``(i) in the case of a storage water heater, an energy
factor of at least 0.80 or a thermal efficiency of at least
90 percent, and
``(ii) in the case of any other water heater, an energy
factor of at least 0.90 or a thermal efficiency of at least
90 percent, and''.
(2) Storage water heaters.--Paragraph (3) of section 25C(d)
is amended by adding at the end the following flush sentence:
``For purposes of subparagraph (D)(i), the term `storage
water heater' means a water heater that has a water storage
capacity of more than 20 gallons but not more than 55
gallons.''.
(d) Modification of Testing Standards for Biomass Stoves.--
Subparagraph (E) of section 25C(d)(3) is amended by inserting
before the period the following: ``, when tested using the
higher heating value of the fuel and in accordance with the
Canadian Standards Administration B415.1 test protocol''.
(e) Separate Standard for Oil Hot Water Boilers.--Paragraph
(4) of section 25C(d) is amended by striking ``95'' and
inserting ``95 (90 in the case of an oil hot water boiler)''.
(f) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 152. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN ELECTRIC
VEHICLES.

(a) In General.--Subparagraph (E) of section 30D(g)(3) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2014 (January 1, 2016, in the case of a vehicle
that has 2 wheels).''.
(b) Effective Date.--The amendment made by this section
shall apply to vehicles acquired after December 31, 2013.

SEC. 153. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER
CREDIT.

(a) In General.--Clause (i) of section 40(b)(6)(J) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this subsection
shall apply to qualified second generation biofuel production
after December 31, 2013.

SEC. 154. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE
DIESEL.

(a) Credits for Biodiesel and Renewable Diesel Used as
Fuel.--Subsection (g) of section 40A is amended by striking
``December 31, 2013'' and inserting ``December 31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to fuel sold or used after December 31, 2013.

SEC. 155. EXTENSION AND MODIFICATION OF PRODUCTION CREDIT FOR
INDIAN COAL FACILITIES PLACED IN SERVICE BEFORE
2009.

(a) In General.--Subparagraph (A) of section 45(e)(10) is
amended by striking ``8-year period'' each place it appears
and inserting ``10-year period''.
(b) Application to New Leases or Subleases.--Paragraph (10)
of section 45(d) is amended by inserting before the period
the following: ``, and any new lease or sublease of such a
facility''.

[[Page S2965]]

(c) Effective Date.--The amendments made by this section
shall apply to coal produced after December 31, 2013.

SEC. 156. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES
PRODUCING ENERGY FROM CERTAIN RENEWABLE
RESOURCES.

(a) In General.--The following provisions of section 45(d)
are each amended by striking ``January 1, 2014'' each place
it appears and inserting ``January 1, 2016'':
(1) Paragraph (1).
(2) Paragraph (2)(A).
(3) Paragraph (3)(A).
(4) Paragraph (4)(B).
(5) Paragraph (6).
(6) Paragraph (7).
(7) Paragraph (9).
(8) Paragraph (11)(B).
(b) Extension of Election to Treat Qualified Facilities as
Energy Property.--Clause (ii) of section 48(a)(5)(C) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(c) Effective Dates.--The amendments made by this section
shall take effect on January 1, 2014.

SEC. 157. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

(a) In General.--Subsection (g) of section 45L is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to homes acquired after December 31, 2013.

SEC. 158. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND
GENERATION BIOFUEL PLANT PROPERTY.

(a) In General.--Subparagraph (D) of section 168(l)(2) is
amended by striking ``January 1, 2014'' and inserting
``January 1, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2013.

SEC. 159. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT
COMMERCIAL BUILDINGS DEDUCTION.

(a) In General.--Subsection (h) of section 179D is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2015''.
(b) Allocations to Indian Tribal Governments.--Paragraph
(4) of section 179D(d) is amended by striking ``or local''
and inserting ``local, or Indian tribal''.
(c) Allocations to Certain Nonprofit Organizations.--
(1) In general.--Paragraph (4) of section 179D(d), as
amended by subsection (b), is amended by inserting ``, or by
an organization that is described in section 501(c)(3) and
exempt from tax under section 501(a)'' after ``political
subdivision thereof''.
(2) Clerical amendment.--The heading of paragraph (4) of
section 179D(d) is amended by inserting ``and property held
by certain non-profits'' after ``public property''.
(d) Updated ASHRAE Standards for 2015.--
(1) In general.--Paragraph (1) of section 179D(c) is
amended by striking ``Standard 90.1-2001'' each place it
appears and inserting ``Standard 90.1-2007''.
(2) Conforming amendments.--
(A) Paragraph (2) of section 179D(c) is amended to read as
follows:
``(2) Standard 90.1-2007.--The term `Standard 90.1-2007'
means Standard 90.1-2007 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers and the
Illuminating Engineering Society of North America (as in
effect on the day before the date of the adoption of Standard
90.1-2010 of such Societies).''.
(B) Subsection (f) of section 179D is amended by striking
``Standard 90.1-2001'' each place it appears in paragraphs
(1) and (2)(C)(i) and inserting ``Standard 90.1-2007''.
(C) Paragraph (1) of section 179D(f) is amended--
(i) by striking ``Table 9.3.1.1'' and inserting ``Table
9.5.1'', and
(ii) by striking ``Table 9.3.1.2'' and inserting ``Table
9.6.1''.
(3) Effective date.--The amendments made by this paragraph
shall apply to property placed in service after December 31,
2014.
(e) Effective Date.--Except as provided in subsection
(d)(3), the amendments made by this section shall apply to
property placed in service after December 31, 2013.

SEC. 160. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS
TO IMPLEMENT FERC OR STATE ELECTRIC
RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC
UTILITIES.

(a) In General.--Paragraph (3) of section 451(i) is amended
by striking ``January 1, 2014'' and inserting ``January 1,
2016''.
(b) Effective Date.--The amendment made by this section
shall apply to dispositions after December 31, 2013.

SEC. 161. EXTENSION OF EXCISE TAX CREDITS RELATING TO CERTAIN
FUELS.

(a) Excise Tax Credits and Outlay Payments for Biodiesel
and Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2013'' and inserting ``December 31, 2015''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2013'' and inserting ``December 31,
2015''.
(b) Extension of Alternative Fuels Excise Tax Credits.--
(1) In general.--Sections 6426(d)(5) and 6426(e)(3) are
each amended by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(2) Outlay payments for alternative fuels.--Subparagraph
(C) of section 6427(e)(6) is amended by striking ``December
31, 2013'' and inserting ``December 31, 2015''.
(c) Extension of Alternative Fuels Excise Tax Credits
Relating to Liquefied Hydrogen.--
(1) In general.--Sections 6426(d)(5) and 6426(e)(3), as
amended by subsection (b), are each amended by striking
``(September 30, 2014 in the case of any sale or use
involving liquefied hydrogen)''.
(2) Outlay payments for alternative fuels.--Paragraph (6)
of section 6427(e) is amended--
(A) by striking ``except as provided in subparagraph (D),
any'' in subparagraph (C), as amended by this Act, and
inserting ``any'',
(B) by striking the comma at the end of subparagraph (C)
and inserting ``, and'', and
(C) by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel sold or
used after December 31, 2013.
(2) Liquefied hydrogen.--The amendments made by subsection
(c) shall apply to fuels sold or used after September 30,
2014.
(e) Special Rule for Certain Periods During 2014.--
Notwithstanding any other provision of law, in the case of--
(1) any biodiesel mixture credit properly determined under
section 6426(c) of the Internal Revenue Code of 1986 for
periods after December 31, 2013, and before the date of the
enactment of this Act, and
(2) any alternative fuel credit properly determined under
section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment
attributable to such credit (including any payment under
section 6427(e) of

such Code) shall be made, only in such manner as the
Secretary of the Treasury (or the Secretary's delegate) shall
provide. Such Secretary shall issue guidance within 30 days
after the date of the enactment of this Act providing for a
one-time submission of claims covering periods described in
the preceding sentence. Such guidance shall provide for a
180-day period for the submission of such claims (in such
manner as prescribed by such Secretary) to begin not later
than 30 days after such guidance is issued. Such claims shall
be paid by such Secretary not later than 60 days after
receipt. If such Secretary has not paid pursuant to a claim
filed under this subsection within 60 days after the date of
the filing of such claim, the claim shall be paid with
interest from such date determined by using the overpayment
rate and method under section 6621 of such Code.

Subtitle B--Provisions Expiring in 2014

PART I--ENERGY TAX EXTENDERS

SEC. 171. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL
MOTOR VEHICLES.

(a) In General.--Paragraph (1) of section 30B(k) is amended
by striking ``December 31, 2014'' and inserting ``December
31, 2015''.
(b) Effective Date.--The amendment made by this section
shall apply to property purchased after December 31, 2014.

SEC. 172. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY.

(a) In General.--Subsection (g) of section 30C is amended
by striking ``placed in service'' and all that follows and
inserting ``placed in service after December 31, 2015.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2013.

PART II--EXTENDERS RELATING TO MULTIEMPLOYER DEFINED BENEFIT PENSION
PLANS

SEC. 181. EXTENSION OF AUTOMATIC EXTENSION OF AMORTIZATION
PERIODS.

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

SEC. 182. EXTENSION OF FUNDING IMPROVEMENT AND REHABILITATION
PLAN RULES.

(a) In General.--Paragraphs (1) and (2) of section 221(c)
of the Pension Protection Act of 2006 are each amended by
striking ``December 31, 2014'' and inserting ``December 31,
2015''.
(b) Conforming Amendment.--Paragraph (2) of section 221(c)
of the Pension Protection Act of 2006 is amended by striking
``January 1, 2015'' and inserting ``January 1, 2016''.
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31, 2014.

Subtitle C--Revenue Provisions

SEC. 191. PENALTY FOR FAILURE TO MEET DUE DILIGENCE
REQUIREMENTS FOR THE CHILD TAX CREDIT.

(a) In General.--Section 6695 is amended by adding at the
end the following new subsection:
``(h) Failure to Be Diligent in Determining Eligibility for
Child Tax Credit.--

[[Page S2966]]

Any person who is a tax return preparer with respect to any
return or claim for refund who fails to comply with due
diligence requirements imposed by the Secretary by
regulations with respect to determining eligibility for, or
the amount of, the credit allowable by section 24 shall pay a
penalty of $500 for each such failure.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.

SEC. 192. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO MEDICARE
PROVIDERS AND SUPPLIERS.

(a) In General.--Paragraph (3) of section 6331(h) is
amended by striking the period at the end and inserting ``,
or to a Medicare provider or supplier under title XVIII of
the Social Security Act.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made on or after the date which is
180 days after the date of the enactment of this Act.

SEC. 193. EXCLUSION FROM GROSS INCOME OF CERTAIN CLEAN COAL
POWER GRANTS TO NON-CORPORATE TAXPAYERS.

(a) General Rule.--In the case of an eligible taxpayer
other than a corporation, gross income for purposes of the
Internal Revenue Code of 1986 shall not include any amount
received under section 402 of the Energy Policy Act of 2005.
(b) Reduction in Basis.--The basis of any property subject
to the allowance for depreciation under the Internal Revenue
Code of 1986 which is acquired with any amount to which
subsection (a) applies during the 12-month period beginning
on the day such amount is received shall be reduced by an
amount equal to such amount. The excess (if any) of such
amount over the amount of the reduction under the preceding
sentence shall be applied to the reduction (as of the last
day of the period specified in the preceding sentence) of the
basis of any other property held by the taxpayer. The
particular properties to which the reductions required by
this subsection are allocated shall be determined by the
Secretary of the Treasury (or the Secretary's delegate) under
regulations similar to the regulations under section
362(c)(2) of such Code.
(c) Limitation to Amounts Which Would Be Contributions to
Capital.--Subsection (a) shall not apply to any amount unless
such amount, if received by a corporation, would be excluded
from gross income under section 118 of the Internal Revenue
Code of 1986.
(d) Eligible Taxpayer.--For purposes of this section, with
respect to any amount received under section 402 of the
Energy Policy Act of 2005, the term ``eligible taxpayer''
means a taxpayer that makes a payment to the Secretary of the
Treasury (or the Secretary's delegate) equal to 1.18 percent
of the amount so received. Such payment shall be made at such
time and in such manner as such Secretary (or the Secretary's
delegate) shall prescribe. In the case of a partnership, such
Secretary (or the Secretary's delegate) shall prescribe
regulations to determine the allocation of such payment
amount among the partners.
(e) Effective Date.--This section shall apply to amounts
received under section 402 of the Energy Policy Act of 2005
in taxable years beginning after December 31, 2011.

SEC. 194. REFORM OF RULES RELATING TO QUALIFIED TAX
COLLECTION CONTRACTS.

(a) Requirement to Collect Certain Inactive Tax Receivables
Under Qualified Tax Collection Contracts.--Section 6306 is
amended by redesignating subsections (c) through (f) as
subsections (d) through (g), respectively, and by inserting
after subsection (b) the following new subsection:
``(c) Collection of Inactive Tax Receivables.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary shall enter into one or more qualified tax
collection contracts for the collection of all outstanding
inactive tax receivables.
``(2) Inactive tax receivables.--For purposes of this
section--
``(A) In general.--The term `inactive tax receivable' means
any tax receivable if--
``(i) at any time after assessment, the Internal Revenue
Service removes such receivable from the active inventory for
lack of resources or inability to locate the taxpayer,
``(ii) more than \1/3\ of the period of the applicable
statute of limitation has lapsed and such receivable has not
been assigned for collection to any employee of the Internal
Revenue Service, or
``(iii) in the case of a receivable which has been assigned
for collection, more than 365 days have passed without
interaction with the taxpayer or a third party for purposes
of furthering the collection of such receivable.
``(B) Tax receivable.--The term `tax receivable' means any
outstanding assessment which the Internal Revenue Service
includes in potentially collectible inventory.''.
(b) Certain Tax Receivables Not Eligible for Collection
Under Qualified Tax Collection Contracts.--Section 6306, as
amended by subsection (a), is amended by redesignating
subsections (d) through (g) as subsections (e) through (h),
respectively, and by inserting after subsection (c) the
following new subsection:
``(d) Certain Tax Receivables Not Eligible for Collection
Under Qualified Tax Collections Contracts.--A tax receivable
shall not be eligible for collection pursuant to a qualified
tax collection contract if such receivable--
``(1) is subject to a pending or active offer-in-compromise
or installment agreement,
``(2) is classified as an innocent spouse case,
``(3) involves a taxpayer identified by the Secretary as
being--
``(A) deceased,
``(B) under the age of 18,
``(C) in a designated combat zone, or
``(D) a victim of tax-related identity theft,
``(4) is currently under examination, litigation, criminal
investigation, or levy, or
``(5) is currently subject to a proper exercise of a right
of appeal under this title.''.
(c) Contracting Priority.--Section 6306, as amended by the
preceding provisions of this section, is amended by
redesignating subsection (h) as subsection (i) and by
inserting after subsection (g) the following new subsection:
``(h) Contracting Priority.--In contracting for the
services of any person under this section, the Secretary
shall utilize private collection contractors and debt
collection centers on the schedule required under section
3711(g) of title 31, United States Code, including the
technology and communications infrastructure established
therein, to the extent such private collection contractors
and debt collection centers are appropriate to carry out the
purposes of this section.''.
(d) Disclosure of Return Information.--Section 6103(k) is
amended by adding at the end the following new paragraph:
``(11) Qualified tax collection contractors.--Persons
providing services pursuant to a qualified tax collection
contract under section 6306 may, if speaking to a person who
has identified himself or herself as having the name of the
taxpayer to which a tax receivable (within the meaning of
such section) relates, identify themselves as contractors of
the Internal Revenue Service and disclose the business name
of the contractor, and the nature, subject, and reason for
the contact. Disclosures under this paragraph shall be made
only in such situations and under such conditions as have
been approved by the Secretary.''.
(e) Taxpayers Affected by Federally Declared Disasters.--
Section 6306, as amended by the preceding provisions of this
section, is amended by redesignating subsection (i) as
subsection (j) and by inserting after subsection (h) the
following new subsection:
``(i) Taxpayers in Presidentially Declared Disaster
Areas.--The Secretary may prescribe procedures under which a
taxpayer determined to be affected by a Federally declared
disaster (as defined by section 165(h)(3)(C)) may request--
``(1) relief from immediate collection measures by
contractors under this section, and
``(2) a return of the inactive tax receivable to the
inventory of the Internal Revenue Service to be collected by
an employee thereof.''.
(f) Report to Congress.--
(1) In general.--Section 6306, as amended by the preceding
provisions of this section, is amended by redesignating
subsection (j) as subsection (k) and by inserting after
subsection (i) the following new subsection:
``(j) Report to Congress.--Not later than 90 days after the
last day of each fiscal year (beginning with the first such
fiscal year ending after the date of the enactment of this
subsection), the Secretary shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report with respect to
qualified tax collection contracts under this section which
shall include--
``(1) annually, with respect to such fiscal year--
``(A) the total number and amount of tax receivables
provided to each contractor for collection under this
section,
``(B) the total amounts collected (and amounts of
installment agreements entered into under subsection
(b)(1)(B)) with respect to each contractor and the collection
costs incurred (directly and indirectly) by the Internal
Revenue Service with respect to such amounts,
``(C) the impact of such contracts on the total number and
amount of unpaid assessments, and on the number and amount of
assessments collected by Internal Revenue Service personnel
after initial contact by a contractor,
``(D) the amount of fees retained by the Secretary under
subsection (e) and a description of the use of such funds,
and
``(E) a disclosure safeguard report in a form similar to
that required under section 6103(p)(5), and
``(2) biannually (beginning with the second report
submitted under this subsection)--
``(A) an independent evaluation of contractor performance,
and
``(B) a measurement plan that includes a comparison of the
best practices used by the private collectors to the
collection techniques used by the Internal Revenue Service
and mechanisms to identify and capture information on
successful collection techniques used by the contractors that
could be adopted by the Internal Revenue Service.''.
(2) Repeal of existing reporting requirements with respect
to qualified tax collection contracts.--Section 881 of the
American Jobs Creation Act of 2004 is amended by striking
subsection (e).
(g) Effective Dates.--
(1) In general.--The amendments made by subsections (a) and
(b) shall apply to tax receivables identified by the
Secretary after the date of the enactment of this Act.
(2) Contracting priority.--The Secretary shall begin
entering into contracts and

[[Page S2967]]

agreements as described in the amendment made by subsection
(c) within 3 months after the date of the enactment of this
Act.
(3) Disclosures.--The amendment made by subsection (d)
shall apply to disclosures made after the date of the
enactment of this Act.
(4) Procedures; report to congress.--The amendments made by
subsections (e) and (f) shall take effect on the date of the
enactment of this Act.

SEC. 195. SPECIAL COMPLIANCE PERSONNEL PROGRAM.

(a) In General.--Subsection (e) of section 6306, as
redesignated by section 194, is amended by striking ``for
collection enforcement activities of the Internal Revenue
Service'' in paragraph (2) and inserting ``to fund the
special compliance personnel program account under section
6307''.
(b) Special Compliance Personnel Program Account.--
Subchapter A of chapter 64 is amended by adding at the end
the following new section:

``SEC. 6307. SPECIAL COMPLIANCE PERSONNEL PROGRAM ACCOUNT.

``(a) Establishment of a Special Compliance Personnel
Program Account.--The Secretary shall establish an account
within the Department for carrying out a program consisting
of the hiring, training, and employment of special compliance
personnel, and shall transfer to such account from time to
time amounts retained by the Secretary under section
6306(e)(2).
``(b) Restrictions.--The program described in subsection
(a) shall be subject to the following restrictions:
``(1) No funds shall be transferred to such account except
as described in subsection (a).
``(2) No other funds from any other source shall be
expended for special compliance personnel employed under such
program, and no funds from such account shall be expended for
the hiring of any personnel other than special compliance
personnel.
``(3) Notwithstanding any other authority, the Secretary is
prohibited from spending funds out of such account for any
purpose other than for costs under such program associated
with the employment of special compliance personnel and the
retraining and reassignment of current noncollections
personnel as special compliance personnel, and to reimburse
the Internal Revenue Service or other government agencies for
the cost of administering qualified tax collection contracts
under section 6306.
``(c) Reporting.--Not later than March of each year, the
Commissioner of Internal Revenue shall submit a report to the
Committees on Finance and Appropriations of the Senate and
the Committees on Ways and Means and Appropriations of the
House of Representatives consisting of the following:
``(1) For the preceding fiscal year, all funds received in
the account established under subsection (a), administrative
and program costs for the program described in such
subsection, the number of special compliance personnel hired
and employed under the program, and the amount of revenue
actually collected by such personnel.
``(2) For the current fiscal year, all actual and estimated
funds received or to be received in the account, all actual
and estimated administrative and program costs, the number of
all actual and estimated special compliance personnel hired
and employed under the program, and the actual and estimated
revenue actually collected or to be collected by such
personnel.
``(3) For the following fiscal year, an estimate of all
funds to be received in the account, all estimated
administrative and program costs, the estimated number of
special compliance personnel hired and employed under the
program, and the estimated revenue to be collected by such
personnel.
``(d) Definitions.--For purposes of this section--
``(1) Special compliance personnel.--The term `special
compliance personnel' means individuals employed by the
Internal Revenue Service as field function collection
officers or in a similar position, or employed to collect
taxes using the automated collection system or an equivalent
replacement system.
``(2) Program costs.--The term `program costs' means--
``(A) total salaries (including locality pay and bonuses),
benefits, and employment taxes for special compliance
personnel employed or trained under the program described in
subsection (a), and
``(B) direct overhead costs, salaries, benefits, and
employment taxes relating to support staff, rental payments,
office equipment and furniture, travel, data processing
services, vehicle costs, utilities, telecommunications,
postage, printing and reproduction, supplies and materials,
lands and structures, insurance claims, and indemnities for
special compliance personnel hired and employed under this
section.

For purposes of subparagraph (B), the cost of management and
supervision of special compliance personnel shall be taken
into account as direct overhead costs to the extent such
costs, when included in total program costs under this
paragraph, do not represent more than 10 percent of such
total costs.''.
(c) Clerical Amendment.--The table of sections for
subchapter A of chapter 64 is amended by inserting after the
item relating to section 6306 the following new item:

``Sec. 6307. Special compliance personnel program account.''.
(d) Effective Date.--The amendment made by subsection (a)
shall apply to amounts collected and retained by the
Secretary after the date of the enactment of this Act.

SEC. 196. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN
CORPORATIONS FROM THE DEFINITION OF PERSONAL
HOLDING COMPANY INCOME FOR PURPOSES OF THE
PERSONAL HOLDING COMPANY RULES.

(a) In General.--Paragraph (1) of section 543(a) is amended
by redesignating subparagraphs (C) and (D) as subparagraphs
(D) and (E), respectively, and by inserting after
subparagraph (B) the following new subparagraph:
``(C) dividends received by a United States shareholder (as
defined in section 951(b)) from a controlled foreign
corporation (as defined in section 957(a)),''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after the date of
the enactment of this Act.

SEC. 197. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES
UNDER THE INTERNAL REVENUE CODE OF 1986.

(a) Failure to File Tax Return or Pay Tax.--Section 6651 is
amended by adding at the end the following new subsection:
``(i) Adjustment for Inflation.--
``(1) In general.--In the case of any return required to be
filed in a calendar year beginning after 2014, the $135
dollar amount under subsection (a) shall be increased by such
dollar amount multiplied by the cost-of-living adjustment
determined under section 1(f)(3) determined by substituting
`calendar year 2013' for `calendar year 1992' in subparagraph
(B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph (1)
is not a multiple of $5, such amount shall be rounded to the
next lowest multiple of $5.''.
(b) Failure to File Certain Information Returns,
Registration Statements, etc.--
(1) In general.--Section 6652(c) is amended by adding at
the end the following new paragraph:
``(6) Adjustment for inflation.--
``(A) In general.--In the case of any failure relating to a
return required to be filed in a calendar year beginning
after 2014, each of the dollar amounts under paragraphs (1),
(2), and (3) shall be increased by such dollar amount
multiplied by the cost-of-living adjustment determined under
section 1(f)(3) determined by substituting `calendar year
2013' for `calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--If any amount adjusted under subparagraph
(A)--
``(i) is not less than $5,000 and is not a multiple of
$500, such amount shall be rounded to the next lowest
multiple of $500, and
``(ii) is not described in clause (i) and is not a multiple
of $5, such amount shall be rounded to the next lowest
multiple of $5.''.
(2) Conforming amendments.--
(A) The last sentence of section 6652(c)(1)(A) is amended
by striking ``the first sentence of this subparagraph shall
be applied by substituting `$100' for `$20' and'' and
inserting ``in applying the first sentence of this
subparagraph, the amount of the penalty for each day during
which a failure continues shall be $100 in lieu of the amount
otherwise specified, and''.
(B) Clause (ii) of section 6652(c)(2)(C) is amended by
striking ``the first sentence of paragraph (1)(A)'' and all
that follows and inserting ``in applying the first sentence
of paragraph (1)(A), the amount of the penalty for each day
during which a failure continues shall be $100 in lieu of the
amount otherwise specified, and in lieu of applying the
second sentence of paragraph (1)(A), the maximum penalty
under paragraph (1)(A) shall not exceed $50,000, and''.
(c) Other Assessable Penalties With Respect to the
Preparation of Tax Returns for Other Persons.--Section 6695
is amended by adding at the end the following new subsection:
``(h) Adjustment for Inflation.--
``(1) In general.--In the case of any failure relating to a
return or claim for refund filed in a calendar year beginning
after 2014, each of the dollar amounts under subsections (a),
(b), (c), (d), (e), (f), and (g) shall be increased by such
dollar amount multiplied by the cost-of-living adjustment
determined under section 1(f)(3) determined by substituting
`calendar year 2013' for `calendar year 1992' in subparagraph
(B) thereof.
``(2) Rounding.--If any amount adjusted under subparagraph
(A)--
``(A) is not less than $5,000 and is not a multiple of
$500, such amount shall be rounded to the next lowest
multiple of $500, and
``(B) is not described in clause (i) and is not a multiple
of $5, such amount shall be rounded to the next lowest
multiple of $5.''.
(d) Failure to File Partnership Return.--Section 6698 is
amended by adding at the end the following new subsection:
``(e) Adjustment for Inflation.--
``(1) In general.--In the case of any return required to be
filed in a calendar year beginning after 2014, the $195
dollar amount under subsection (b)(1) shall be increased by
such dollar amount multiplied by the cost-of-living
adjustment determined under section 1(f)(3) determined by
substituting `calendar year 2013' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph (1)
is not a multiple of $5, such amount shall be rounded to the
next lowest multiple of $5.''.
(e) Failure to File S Corporation Return.--Section 6699 is
amended by adding at the end the following new subsection:
``(e) Adjustment for Inflation.--

[[Page S2968]]

``(1) In general.--In the case of any return required to be
filed in a calendar year beginning after 2014, the $195
dollar amount under subsection (b)(1) shall be increased by
such dollar amount multiplied by the cost-of-living
adjustment determined under section 1(f)(3) determined by
substituting `calendar year 2013' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph (1)
is not a multiple of $5, such amount shall be rounded to the
next lowest multiple of $5.''.
(f) Failure to File Correct Information Returns.--Paragraph
(1) of section 6721(f) is amended by striking ``For each
fifth calendar year beginning after 2012'' and inserting ``In
the case of any failure relating to a return required to be
filed in a calendar year beginning after 2014''.
(g) Failure to Furnish Correct Payee Statements.--Paragraph
(1) of section 6722(f) is amended by striking ``For each
fifth calendar year beginning after 2012'' and inserting ``In
the case of any failure relating to a statement required to
be furnished in a calendar year beginning after 2014''.
(h) Effective Date.--The amendments made by this section
shall apply to returns required to be filed after December
31, 2014.

TITLE II--TAX TECHNICAL CORRECTIONS

SEC. 201. SHORT TITLE.

This title may be cited as the ``Tax Technical Corrections
Act of 2014''.

SEC. 202. AMENDMENT RELATING TO MIDDLE CLASS TAX RELIEF AND
JOB CREATION ACT OF 2012.

(a) Amendment Relating to Section 7001.--Paragraph (1) of
section 7001 of the Middle Class Tax Relief and Job Creation
Act of 2012 is amended by striking ``201(b)'' and inserting
``202(b)''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in section 7001 of the
Middle Class Tax Relief and Job Creation Act of 2012.

SEC. 203. AMENDMENTS RELATING TO AMERICAN TAXPAYER RELIEF ACT
OF 2012.

(a) Amendment Relating to Section 102.--Clause (ii) of
section 911(f)(2)(B) is amended by striking ``described in
section 1(h)(1)(B) shall be treated as a reference to such
excess as determined'' and inserting ``described in section
1(h)(1)(B), and the reference in section 55(b)(3)(C)(ii) to
the excess described in section 1(h)(1)(C)(ii), shall each be
treated as a reference to each such excess as determined''.
(b) Amendments Relating to Section 104.--
(1) Clause (ii) of section 55(d)(4)(B) is amended by
inserting ``subparagraphs (A), (B), and (D) of'' before
``paragraph (1)''.
(2) Subparagraph (C) of section 55(d)(4) is amended by
striking ``increase'' and inserting ``increased amount''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provision of the
American Taxpayer Relief Act of 2012 to which they relate.

SEC. 204. AMENDMENTS RELATING TO REGULATED INVESTMENT COMPANY
MODERNIZATION ACT OF 2010.

(a) Amendments Relating to Section 101.--
(1) Subsection (c) of section 101 of the Regulated
Investment Company Modernization Act of 2010 is amended--
(A) by striking ``paragraph (2)'' in paragraph (1) and
inserting ``paragraphs (2) and (3)'', and
(B) by adding at the end the following new paragraph:
``(3) Excise tax.--
``(A) In general.--Except as provided in subparagraph (B),
for purposes of section 4982 of the Internal Revenue Code of
1986, paragraphs (1) and (2) shall apply by substituting `the
1-year periods taken into account under subsection (b)(1)(B)
of such section with respect to calendar years beginning
after December 31, 2010' for `taxable years beginning after
the date of the enactment of this Act'.
``(B) Election.--A regulated investment company may elect
to apply subparagraph (A) by substituting `2011' for `2010'.
Such election shall be made at such time and in such form and
manner as the Secretary of the Treasury (or the Secretary's
delegate) shall prescribe.''.
(2) The first sentence of paragraph (2) of section 852(c)
is amended--
(A) by striking ``and without regard to'' and inserting ``,
without regard to'', and
(B) by inserting ``, and without regard to any capital loss
arising on the first day of the taxable year by reason of
clauses (ii) and (iii) of section 1212(a)(3)(A)'' before the
period at the end.
(b) Amendment Relating to Section 304.--Paragraph (1) of
section 855(a) is amended by inserting ``on or'' before
``before''.
(c) Amendments Relating to Section 308.--
(1) Paragraph (8) of section 852(b) is amended by
redesignating subparagraph (E) as subparagraph (G) and by
striking subparagraphs (C) and (D) and inserting the
following new subparagraphs:
``(C) Post-october capital loss.--For purposes of this
paragraph, the term `post-October capital loss' means--
``(i) any net capital loss attributable to the portion of
the taxable year after October 31, or
``(ii) if there is no such loss--

``(I) any net long-term capital loss attributable to such
portion of the taxable year, or
``(II) any net short-term capital loss attributable to such
portion of the taxable year.

``(D) Late-year ordinary loss.--For purposes of this
paragraph, the term `late-year ordinary loss' means the sum
of any post-October specified loss and any post-December
ordinary loss.
``(E) Post-october specified loss.--For purposes of this
paragraph, the term `post-October specified loss' means the
excess (if any) of--
``(i) the specified losses (as defined in section
4982(e)(5)(B)(ii)) attributable to the portion of the taxable
year after October 31, over
``(ii) the specified gains (as defined in section
4982(e)(5)(B)(i)) attributable to such portion of the taxable
year.
``(F) Post-december ordinary loss.--For purposes of this
paragraph, the term `post-December ordinary loss' means the
excess (if any) of--
``(i) the ordinary losses not described in subparagraph
(E)(i) and attributable to the portion of the taxable year
after December 31, over
``(ii) the ordinary income not described in subparagraph
(E)(ii) and attributable to such portion of the taxable
year.''.
(2) Subparagraph (G) of section 852(b)(8), as so
redesignated, is amended by striking ``, (D)(i)(I), and
(D)(ii)(I)'' and inserting ``and (E)''.
(3) The first sentence of paragraph (2) of section 852(c),
as amended by subsection (a), is amended--
(A) by striking ``, and without regard to'' and inserting
``, without regard to'', and
(B) by inserting ``, and with such other adjustments as the
Secretary may prescribe'' before the period at the end.
(d) Amendments Relating to Section 402.--
(1) Subparagraph (B) of section 4982(e)(6) is amended by
inserting before the period at the end the following: ``or
which determines income by reference to the value of an item
on the last day of the taxable year''.
(2) Subparagraph (A) of section 4982(e)(7) is amended by
striking ``such company'' and all that follows through ``any
net ordinary loss'' and inserting ``such company may elect to
determine its ordinary income and net ordinary loss (as
defined in paragraph (2)(C)(ii)) for the calendar year
without regard to any portion of any net ordinary loss''.
(e) Clerical Amendment Relating to Section 201.--
Subparagraph (A) of section 851(d)(2) is amended by inserting
``of this paragraph'' after ``subparagraph (B)(i)''.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect as if
included in the provision of the Regulated Investment Company
Modernization Act of 2010 to which they relate.
(2) Savings provision.--In the case of a regulated
investment company which, before the date of the enactment of
this Act, elected under paragraph (8) of section 852(b) of
the Internal Revenue Code of 1986 (as in effect on the date
of such election) for any taxable year ending before such
date of enactment to treat any loss as arising in the
following taxable year, the amendments made by paragraphs (1)
and (2) of subsection (c) shall not apply with respect to
such election.

SEC. 205. AMENDMENTS RELATING TO TAX RELIEF, UNEMPLOYMENT
INSURANCE REAUTHORIZATION, AND JOB CREATION ACT
OF 2010.

(a) Amendment Relating to Section 103.--Clause (ii) of
section 32(b)(3)(B) is amended by striking ``in 2010'' and
inserting ``after 2009''.
(b) Clerical Amendment Relating to Section 302.--Subsection
(f) of section 302 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 is amended by
striking ``subsection'' and inserting ``section''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 to which they relate.

SEC. 206. AMENDMENTS RELATING TO CREATING SMALL BUSINESS JOBS
ACT OF 2010.

(a) Amendments Relating to Section 2102.--
(1) Subsection (h) of section 2102 of the Creating Small
Business Jobs Act of 2010 is amended by inserting ``, and
payee statements required to be furnished,'' after
``information returns required to be filed''.
(2) Paragraphs (1) and (2) of subsection (b), and
subsection (c)(1)(C), of section 6722 are each amended by
striking ``the required filing date'' and inserting ``the
date prescribed for furnishing such statement''.
(3) Subparagraph (B) of section 6722(c)(2) is amended by
striking ``filed'' and inserting ``furnished''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the provision of the
Creating Small Business Jobs Act of 2010 to which they
relate.

SEC. 207. CLERICAL AMENDMENT RELATING TO HIRING INCENTIVES TO
RESTORE EMPLOYMENT ACT.

(a) Amendment Relating to Section 512.--Paragraph (1) of
section 512(a) of the Hiring Incentives to Restore Employment
Act is amended by striking ``after paragraph (6)'' and
inserting ``after paragraph (5)''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the provision of the
Hiring Incentives to Restore Employment Act to which it
relates.

[[Page S2969]]

SEC. 208. AMENDMENTS RELATING TO AMERICAN RECOVERY AND
REINVESTMENT TAX ACT OF 2009.

(a) Amendment Relating to Section 1003.--Paragraph (4) of
section 24(d) is amended to read as follows:
``(4) Special rule for certain years.--In the case of any
taxable year beginning after 2008 and before 2018, paragraph
(1)(B)(i) shall be applied by substituting `$3,000' for
`$10,000'.''.
(b) Amendment Relating to Section 1004.--Paragraph (3) of
section 25A(i) is amended by striking ``Subsection (f)(1)(A)
shall be applied'' and inserting ``For purposes of
determining the Hope Scholarship Credit, subsection (f)(1)(A)
shall be applied''.
(c) Amendments Relating to Section 1008.--
(1) Paragraph (6) of section 164(b) is amended by striking
subparagraph (E) and by redesignating subparagraphs (F) and
(G) as subparagraphs (E) and (F), respectively.
(2) Subparagraphs (E) and (F) of section 164(b)(6), as so
redesignated, are each amended by striking ``This paragraph''
and inserting ``Subsection (a)(6)''.
(d) Amendment Relating to Section 1104.--Subparagraph (A)
of section 48(d)(3) is amended by inserting ``or alternative
minimum taxable income'' after ``includible in the gross
income''
(e) Amendments Relating to Section 1141.--
(1) Subsection (f) of section 30D is amended--
(A) by inserting ``(determined without regard to subsection
(c))'' before the period at the end of paragraph (1), and
(B) by inserting ``(determined without regard to subsection
(c))'' before the period at the end of paragraph (2).
(2) Paragraph (3) of section 30D(f) is amended by adding at
the end the following: ``For purposes of subsection (c),
property to which this paragraph applies shall be treated as
of a character subject to an allowance for depreciation.''
(f) Amendments Relating to Section 1142.--
(1) Subsection (b) of section 38 is amended by striking
``plus'' at the end of paragraph (35), by redesignating
paragraph (36) as paragraph (37), and by inserting after
paragraph (35) the following new paragraph:
``(36) the portion of the qualified plug-in electric
vehicle credit to which section 30(c)(1) applies, plus''.
(2)(A) Subsection (e) of section 30 is amended--
(i) by inserting ``(determined without regard to subsection
(c))'' before the period at the end of paragraph (1), and
(ii) by inserting ``(determined without regard to
subsection (c))'' before the period at the end of paragraph
(2).
(B) Paragraph (3) of section 30(e) is amended by adding at
the end the following: ``For purposes of subsection (c),
property to which this paragraph applies shall be treated as
of a character subject to an allowance for depreciation.''
(g) Amendment Relating to Section 1302.--Paragraph (3) of
section 48C(b) is amended by inserting ``as the qualified
investment'' after ``The amount which is treated''.
(h) Amendments Related to Section 1541.--
(1) Paragraph (2) of section 853A(a) is amended by
inserting ``(determined after the application of this
section)'' before the comma at the end.
(2) Subsection (a) of section 853A is amended--
(A) by striking ``with respect to credits'' and inserting
``with respect to some or all of the credits'', and
(B) by inserting ``(determined without regard to this
section and sections 54(c), 54A(c)(1), 54AA(c)(1), and
1397E(c))'' after ``credits allowable''.
(3) Subsection (b) of section 853A is amended to read as
follows:
``(b) Effect of Election.--If the election provided in
subsection (a) is in effect with respect to any credits for
any taxable year--
``(1) the regulated investment company--
``(A) shall not be allowed such credits,
``(B) shall include in gross income (as interest) for such
taxable year the amount which would have been so included
with respect to such credits had the application of this
section not been elected,
``(C) shall include in earnings and profits the amount so
included in gross income, and
``(D) shall be treated as making one or more distributions
of money with respect to its stock equal to the amount of
such credits on the date or dates (on or after the applicable
date for any such credit) during such taxable year (or
following the close of the taxable year pursuant  to section
855)  selected by the company, and
``(2) each shareholder of such investment company shall--
``(A) be treated as receiving such shareholder's
proportionate share of any distribution of money which is
treated as made by such investment company under paragraph
(1)(D), and
``(B) be allowed credits against the tax imposed by this
chapter equal to the amount of such distribution, subject to
the provisions of this title applicable to the credit
involved.''.
(4) Subsection (c) of section 853A is amended to read as
follows:
``(c) Notice to Shareholders.--The amount treated as a
distribution of money received by a shareholder under
subsection (b)(2)(A) (and as credits allowed to such
shareholder under subsection (b)(2)(B)) shall not exceed the
amount so reported by the regulated investment company in a
written statement furnished to such shareholder.''.
(5) Clause (ii) of section 853A(e)(1)(A) is amended by
inserting ``other than a qualified bond described in section
54AA(g)'' after ``as defined in section 54AA(d))''.
(i) Amendments Relating to Section 2202.--
(1) Subparagraph (A) of section 2202(b)(1) of the division
B of the American Recovery and Reinvestment Act of 2009 is
amended by inserting ``political subdivision of a State,''
after ``any State,''.
(2) Section 2202 of division B of the American Recovery and
Reinvestment Act of 2009 is amended by adding at the end the
following new subsection:
``(e) Treatment of Possessions.--
``(1) Payments to mirror code possessions.--The Secretary
of the Treasury shall pay to each possession of the United
States with a mirror code tax system amounts equal to the
loss to that possession by reason of credits allowed under
subsection (a) with respect to taxable years beginning in
2009. Such amounts shall be determined by the Secretary of
the Treasury based on information provided by the government
of the respective possession.
``(2) Coordination with credit allowed against united
states income taxes.--No credit shall be allowed against
United States income taxes for any taxable year under this
section to any person to whom a credit is allowed against
taxes imposed by the possession by reason of the credit
allowed under subsection (a) for such taxable year.
``(3) Definitions and special rules.--
``(A) Possession of the united states.--For purposes of
this subsection, the term `possession of the United States'
includes the Commonwealth of the Northern Mariana Islands.
``(B) Mirror code tax system.--For purposes of this
subsection, the term `mirror code tax system' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
``(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same manner as
a refund due from the credit allowed under section 36A of the
Internal Revenue Code of 1986 (as added by this Act).''.
(j) Clerical Amendments.--
(1) Amendment relating to section 1131.--Paragraph (2) of
section 45Q(d) is amended by striking ``Administrator of the
Environmental Protection Agency'' and all that follows
through ``shall establish'' and inserting ``Administrator of
the Environmental Protection Agency, the Secretary of Energy,
and the Secretary of the Interior, shall establish''.
(2) Amendment relating to section 1141.--Paragraph (37) of
section 1016(a) is amended by striking ``section 30D(e)(4)''
and inserting ``section 30D(f)(1)''.
(3) Amendment relating to section 3001.--Subparagraph (A)
of section 3001(a)(14) of the American Recovery and
Reinvestment Act of 2009 is amended by striking ``is amended
by redesignating paragraph (9) as paragraph (10)'' and
inserting ``, as amended by this Act, is amended by
redesignating paragraphs (9) and (10) as paragraphs (10) and
(11), respectively,''.
(k) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
American Recovery and Reinvestment Tax Act of 2009 to which
they relate.

SEC. 209. AMENDMENTS RELATING TO ENERGY IMPROVEMENT AND
EXTENSION ACT OF 2008.

(a) Amendment Relating to Section 108.--Subparagraph (E) of
section 45K(g)(2) is amended to read as follows:
``(E) Coordination with section 45.--No credit shall be
allowed with respect to any coke or coke gas which is
produced using steel industry fuel (as defined in section
45(c)(7)) as feedstock if a credit is allowed to any taxpayer
under section 45 with respect to the production of such steel
industry fuel.''.
(b) Amendment Relating to Section 113.--Paragraph (1) of
section 113(b) of the Energy Improvement and Extension Act of
2008 is amended by adding at the end the following new
subparagraph:
``(F) Trust fund.--The term `Trust Fund' means the Black
Lung Disability Trust Fund established under section 9501 of
the Internal Revenue Code of 1986.''.
(c) Amendments Relating to Section 306.--
(1) Clause (ii) of section 168(i)(18)(A) is amended by
striking ``10 years'' and inserting ``16 years''.
(2) Clause (ii) of section 168(i)(19)(A) is amended by
striking ``10 years'' and inserting ``16 years''.
(d) Amendment Relating to Section 308.--Clause (i) of
section 168(m)(2)(B) is amended by striking ``section
168(k)'' and inserting ``subsection (k) (determined without
regard to paragraph (4) thereof)''.
(e) Amendment Relating to Section 402.--Subparagraph (A) of
section 907(f)(4) is amended by striking ``this subsection
shall be applied'' and all that follows through the period at
the end and inserting the following:

[[Page S2970]]

``this subsection, as in effect on the day before the date of
the enactment of the Energy Improvement and Extension Act of
2008, shall apply to unused oil and gas extraction taxes
carried from such unused credit year to a taxable year
beginning after December 31, 2008.''.
(f) Amendments Relating to Section 403.--
(1) Subsection (c) of section 1012 is amended--
(A) by striking ``funds'' in the heading for paragraph (2)
and inserting ``regulated investment companies'',
(B) by striking ``fund'' in the heading for paragraph
(2)(B), and
(C) by striking ``fund'' each place it appears in paragraph
(2) and inserting ``regulated investment company''.
(2) Paragraph (1) of section 1012(d) is amended--
(A) by striking ``December 31, 2010'' and inserting
``December 31, 2011'', and
(B) by striking ``an open-end fund'' and inserting ``a
regulated investment company''.
(3) Paragraph (3) of section 1012(d) is amended to read as
follows:
``(3) Separate accounts; election for treatment as single
account.--
``(A) In general.--Rules similar to the rules of subsection
(c)(2) shall apply for purposes of this subsection.
``(B) Average basis for pre-2012 stock.--Notwithstanding
paragraph (1), in the case of an election under rules similar
to the rules of subsection (c)(2)(B) with respect to stock
held in connection with a dividend reinvestment plan, the
average basis method is permissible with respect to all such
stock without regard to the date of the acquisition of such
stock.''.
(4) Subsection (g) of section 6045 is amended by adding at
the end the following new paragraph:
``(6) Special rule for certain stock held in connection
with dividend reinvestment plan.--For purposes of this
subsection, stock acquired before January 1, 2012, in
connection with a dividend reinvestment plan shall be treated
as stock described in clause (ii) of paragraph (3)(C) (unless
the broker with respect to such stock elects not to have this
paragraph apply with respect to such stock).''.
(g) Clerical Amendment Relating to Section 108.--Paragraph
(2) of section 45(b) is amended by striking ``$3 amount'' and
inserting ``$2 amount''.
(h) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Energy Improvement and Extension Act of 2008 to which they
relate.

SEC. 210. AMENDMENTS RELATING TO TAX EXTENDERS AND
ALTERNATIVE MINIMUM TAX RELIEF ACT OF 2008.

(a) Amendment Relating to Section 208.--Subsection (b) of
section 208 of the Tax Extenders and Alternative Minimum Tax
Relief Act of 2008 is amended to read as follows:
``(b) Effective Date.--
``(1) In general.--The amendment made by subsection (a)
shall take effect on January 1, 2008. Notwithstanding the
preceding sentence, such amendment shall not apply with
respect to the withholding requirement under section 1445 of
the Internal Revenue Code of 1986 for any payment made before
October 4, 2008.
``(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
``(A) which makes a distribution after December 31, 2007,
and before October 4, 2008, and
``(B) which would (but for the second sentence of paragraph
(1)) have been required to withhold with respect to such
distribution under section 1445 of such Code,
such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld
and paid over to the Secretary of the Treasury.''.
(b) Amendments Relating to Section 305.--Paragraphs (7)(B)
and (8)(D) of section 168(e) are each amended by inserting
``which is not qualified leasehold improvement property''
after ``Property described in this paragraph''.
(c) Clerical Amendments.--
(1) Amendment relating to section 306.--Paragraph (5) of
section 168(b) is amended by striking ``(2)(C)'' and
inserting ``(2)(D)''.
(2) Amendments relating to section 706.--
(A) Paragraph (2) of section 1033(h) is amended by
inserting ``is'' before ``compulsorily''.
(B) Subclause (II) of section 172(b)(1)(F)(ii) is amended
by striking ``subsection (h)(3)(C)(i)'' and inserting
``section 165(h)(3)(C)(i)''.
(C) The heading for paragraph (1) of section 165(h) is
amended by striking ``$100'' and inserting ``Dollar''.
(3) Amendment relating to section 709.--Subsection (k) of
section 143 is amended by redesignating the second paragraph
(12) (relating to special rules for residences destroyed in
Federally declared disasters) as paragraph (13).
(4) Amendment relating to section 712.--Section 712 of the
Tax Extenders and Alternative Minimum Tax Relief Act of 2008
is amended by striking ``section 702(c)(1)(A)'' and inserting
``section 702(b)(1)(A)''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008 to
which they relate.

SEC. 211. CLERICAL AMENDMENTS RELATING TO HOUSING ASSISTANCE
TAX ACT OF 2008.

(a) Amendment Relating to Section 3002.--Paragraph (1) of
section 42(b) is amended by striking ``For purposes of this
section, the term'' and inserting the following: ``For
purposes of this section--
``(A) In general.--The term''.
(b) Amendment Relating to Section 3081.--Clause (iv) of
section 168(k)(4)(E) is amended by striking ``adjusted
minimum tax'' and inserting ``adjusted net minimum tax''.
(c) Amendment Relating to Section 3092.--Subsection (b) of
section 121 is amended by redesignating the second paragraph
(4) (relating to exclusion of gain allocated to nonqualified
use) as paragraph (5).
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Housing Assistance Tax Act of 2008 to which they relate.

SEC. 212. AMENDMENTS AND PROVISION RELATING TO HEROES
EARNINGS ASSISTANCE AND RELIEF TAX ACT OF 2008.

(a) Amendment Relating to Section 106.--Paragraph (2) of
section 106(c) of the Heroes Earnings Assistance and Relief
Tax Act of 2008 is amended by striking ``substituting for''
and inserting ``substituting `June 17, 2008' for''.
(b) Amendment Relating to Section 114.--Paragraph (1) of
section 125(h) is amended by inserting ``(and shall not fail
to be treated as an accident or health plan)'' before
``merely''.
(c) Clerical Amendments.--
(1) Amendment relating to section 110.--Subparagraph (B) of
section 121(d)(12) is amended by inserting ``of paragraph
(9)'' after ``and (D)''.
(2) Amendment relating to section 301.--Paragraph (2) of
section 877(e) is amended by striking ``subparagraph (A) or
(B) of''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Heroes Earnings Assistance and Relief Tax Act of 2008 to
which they relate.

SEC. 213. AMENDMENTS RELATING TO ECONOMIC STIMULUS ACT OF
2008.

(a) Amendments Relating to Section 101.--Paragraph (2) of
section 6213(g) is amended--
(1) by striking ``32, or 6428'' in subparagraph (L) and
inserting ``or 32'', and
(2) by striking ``and'' at the end of subparagraph (O), by
striking the period at the end of subparagraph (P) and
inserting ``, and'', and by inserting after subparagraph (P)
the following new subparagraph:
``(Q) an omission of a correct TIN required under section
6428(h) (relating to 2008 recovery rebates for individuals)
to be included on a return.''.
(b) Clerical Amendment Relating to Section 103.--Subclause
(IV) of section 168(k)(2)(B)(i) is amended by striking
``clauses also apply'' and inserting ``clause also applies''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Economic Stimulus Act of 2008 to which they relate.

SEC. 214. AMENDMENTS RELATING TO TAX TECHNICAL CORRECTIONS
ACT OF 2007.

(a) Amendment Relating to Section 4(c).--Paragraph (1) of
section 911(f) is amended by adding at the end the following
flush sentence:
``For purposes of this paragraph, the amount excluded under
subsection (a) shall be reduced by the aggregate amount of
any deductions or exclusions disallowed under subsection
(d)(6) with respect to such excluded amount.''.
(b) Clerical Amendment Relating to Section 11(g).--Clause
(iv) of section 56(g)(4)(C) is amended by striking ``a
cooperative described in section 927(a)(4)'' and inserting
``an organization to which part I of subchapter T (relating
to tax treatment of cooperatives) applies which is engaged in
the marketing of agricultural or horticultural products''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the Tax
Technical Corrections Act of 2007 to which they relate.

SEC. 215. AMENDMENT RELATING TO TAX RELIEF AND HEALTH CARE
ACT OF 2006.

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

SEC. 216. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, FLEXIBLE,
EFFICIENT TRANSPORTATION EQUITY ACT OF 2005: A
LEGACY FOR USERS.

(a) Amendment Relating to Section 11161.--Paragraph (1) of
section 9503(b) is amended by inserting before the period at
the end the following: ``and taxes received under section
4081 shall be determined without regard to tax receipts
attributable to the rate specified in section
4081(a)(2)(C)''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the provision of the
Safe, Accountable, Flexible, Efficient Transportation Equity
Act of 2005: A Legacy for Users to which it relates.

SEC. 217. AMENDMENTS RELATING TO ENERGY TAX INCENTIVES ACT OF
2005.

(a) Amendment Relating to Section 1341.--Subparagraph (B)
of section 30B(h)(5)

[[Page S2971]]

is amended by inserting ``(determined without regard to
subsection (g))'' before the period at the end.
(b) Amendment Relating to Section 1342.--Paragraph (1) of
section 30C(e) is amended to read as follows:
``(1) Reduction in basis.--For purposes of this subtitle,
the basis of any property for which a credit is allowable
under subsection (a) shall be reduced by the amount of such
credit so allowed (determined without regard to subsection
(d)).''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provision of the
Energy Tax Incentives Act of 2005 to which it relates.

SEC. 218. AMENDMENTS RELATING TO AMERICAN JOBS CREATION ACT
OF 2004.

(a) Amendment Relating to Section 101.--Subsection (d) of
section 101 of the American Jobs Creation Act of 2004 is
amended by adding at the end the following new paragraph:
``(3) Coordination with section 199.--This subsection shall
be applied without regard to any deduction allowable under
section 199.''.
(b) Amendments Relating to Section 102.--Paragraph (3) of
section 199(b) is amended--
(1) by inserting ``of a short taxable year or'' after ``in
cases'', and
(2) by striking ``and dispositions'' and inserting ``,
dispositions, and short taxable years''.
(c) Clerical Amendment Relating to Section 413.--Paragraph
(7) of section 904(h) is amended by striking ``as ordinary
income under section 1246 or''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provision of the
American Jobs Creation Act of 2004 to which they relate.

SEC. 219. MODIFICATION OF TREATMENT OF CERTAIN HEALTH
ORGANIZATIONS.

(a) In General.--Paragraph (5) of section 833(c) is
amended--
(1) by striking ``this section'' and inserting ``paragraphs
(2) and (3) of subsection (a)'', and
(2) by inserting ``and for activities that improve health
care quality'' after ``clinical services''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.

SEC. 220. OTHER CLERICAL CORRECTIONS.

(a) Paragraph (8) of section 30B(h) is amended by striking
``vehicle)., except that'' and inserting ``vehicle), except
that''.
(b) Subparagraph (A) of section 38(c)(2) is amended by
striking ``credit credit'' and inserting ``credit''.
(c) Section 46 is amended by adding a comma at the end of
paragraph (4).
(d) Subparagraph (E) of section 50(a)(2) is amended by
inserting ``, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 48D(b)(4)''
after ``under section 48(b)''.
(e) Clause (i) of section 54A(d)(2)(A) is amended by
striking ``100 percent or more'' and inserting ``100
percent''.
(f) Paragraph (2) of section 125(b) is amended by striking
``statutory nontaxable benefits'' each place it appears and
inserting ``qualified benefits''.
(g) Paragraph (2) of section 125(h) is amended by striking
``means, any'' and inserting ``means any''.
(h) Subparagraph (F) of section 163(h)(4) is amended by
striking ``Veterans Administration or the Rural Housing
Administration'' and inserting ``Department of Veterans
Affairs or the Rural Housing Service''.
(i) Subsection (a) of section 249 is amended by striking
``1563(a)(1)'' and inserting ``1563(a)(1))''.
(j) Paragraphs (8) and (10) of section 280F(d) are each
amended by striking ``subsection (a)(2)'' and inserting
``subsection (a)(1)''.
(k) Clause (iii) of section 402A(c)(4)(E) is amended by
striking ``403(b)(7)(A)(i)'' and inserting
``403(b)(7)(A)(ii)''.
(l) Subsection (b) of section 858 is amended by striking
``857(b)(8)'' and inserting ``857(b)(9)''.
(m) Subparagraph (A) of section 1012(c)(2) is amended by
striking ``section 1012'' and inserting ``this section''.
(n) The heading for section 1394(f) is amended by striking
``Designated Under Section 1391(g)''.
(o) Paragraphs (1) and (2)(A) of section 1394(f) are each
amended by striking ``a new empowerment zone facility bond''
and inserting ``an empowerment zone facility bond''.
(p) Subsections (e)(3)(B) and (f)(7)(B) of section 4943 are
each amended by striking ``January 1, 1970'' and inserting
``January 1, 1971''.
(q) Paragraph (2) of section 4982(f) is amended by adding a
comma at the end.
(r) Paragraph (3) of section 6011(e) is amended by striking
``shall require than'' and inserting ``shall require that''.
(s) Subsection (b) of section 6072 is amended by striking
``6011(e)(2)'' and inserting ``6011(c)(2)''.
(t) Subsection (d) of section 6104 is amended by
redesignating the second paragraph (6) (relating to
disclosure of reports by Internal Revenue Service) and third
paragraph (6) (relating to application to nonexempt
charitable trusts and nonexempt private foundations) as
paragraphs (7) and (8), respectively.
(u) Subsection (c) of section 6662A is amended by striking
``section 6664(d)(2)(A)'' and inserting ``section
6664(d)(3)(A)''.
(v) Subparagraph (FF) of section 6724(d)(2) is amended by
striking ``section 6050W(c)'' and inserting ``section
6050W(f)''.
(w) Section 9802 is amended by redesignating the second
subsection (f) (relating to genetic information of a fetus or
embryo) as subsection (g).
(x) Paragraph (3) of section 13(e) of the Worker,
Homeownership, and Business Assistance Act of 2009 is amended
by striking ``subsection (d)'' and inserting ``subsection
(c)''.

SEC. 221. DEADWOOD PROVISIONS.

(a) In General.--
(1) Adjustments in tax tables so that inflation will not
result in tax increases.--Paragraph (7) of section 1(f) is
amended to read as follows:
``(7) Special rule for certain brackets.--In prescribing
tables under paragraph (1) which apply to taxable years
beginning in a calendar year after 1994, the cost-of-living
adjustment used in making adjustments to the dollar amounts
at which the 36 percent rate bracket begins or at which the
39.6 percent rate bracket begins shall be determined under
paragraph (3) by substituting `1993' for `1992'.''.
(2) Certain plug-in electric vehicles.--
(A) Subpart B of part IV of subchapter A of chapter 1 is
amended by striking section 30 (and by striking the item
relating to such section in the table of sections for such
subpart).
(B) Subsection (b) of section 38, as amended by section
208(f)(1) of this Act, is amended by inserting ``plus'' at
the end of paragraph (35), by striking paragraph (36), and by
redesignating paragraph (37) as paragraph (36).
(C) Subclause (VI) of section 48C(c)(1)(A)(i) is amended by
striking ``, qualified plug-in electric vehicles (as defined
by section 30(d)),''.
(D) Section 1016(a) is amended by striking paragraph (25).
(E) Section 6501(m) is amended by striking ``section
30(e)(6),''.
(3) Earned income credit.--
(A) Paragraph (1) of section 32(b) is amended--
(i) by striking subparagraphs (B) and (C), and
(ii) by striking ``(a) In General.--In the case of taxable
years beginning after 1995:'' in subparagraph (A) and moving
the table 2 ems to the left.
(B) Subparagraph (B) of section 32(b)(2) is amended by
striking ``increased by'' and all that follows and inserting
``increased by $3,000.''.
(4) First-time homebuyer credit.--Section 6213(g)(2) is
amended by striking subparagraph (P), as amended by section
213(a)(2).
(5) Making work pay credit.--
(A) Subpart C of part IV of subchapter A of chapter 1 is
amended by striking section 36A (and by striking the item
relating to such section in the table of sections for such
subpart).
(B) Subparagraph (A) of section 6211(b)(4) is amended by
striking ``, 36A''.
(C) Section 6213(g)(2) is amended by striking subparagraph
(N).
(6) General business credits.--Subsection (d) of section 38
is amended by striking paragraph (3).
(7) Low-income housing credit.--Subclause (I) of section
42(h)(3)(C)(ii) is amended by striking ``($1.50 for 2001)''.
(8) Minimum tax credit.--
(A)(i) Section 53 is amended by striking subsections (e)
and (f).
(ii) The amendment made by clause (i) striking subsection
(f) of section 53 of the Internal Revenue Code of 1986 shall
not be construed to allow any tax abated by reason of section
53(f)(1) of such Code (as in effect before such amendment) to
be included in the amount determined under section 53(b)(1)
of such Code.
(B) Paragraph (4) of section 6211(b)(4) is amended by
striking ``, 53(e)''.
(9) Adjustments based on adjusted current earnings.--Clause
(ii) of section 56(g)(4)(F) is amended by striking ``In the
case of any taxable year beginning after December 31, 1992,
clause'' and inserting ``Clause''.
(10) Items of tax preference; depletion.--Paragraph (1) of
section 57(a) is amended by striking ``Effective with respect
to taxable years beginning after December 31, 1992, this''
and inserting ``This''.
(11) Intangible drilling costs.--
(A) Clause (i) of section 57(a)(2)(E) is amended by
striking ``In the case of any taxable year beginning after
December 31, 1992, this'' and inserting ``This''.
(B) Clause (ii) of section 57(a)(2)(E) is amended by
striking ``(30 percent in the case of taxable years beginning
in 1993)''.
(12) Environmental tax.--
(A) Subchapter A of chapter 1 is amended by striking part
VII (and by striking the item relating to such part in the
table of parts for such subchapter).
(B) Paragraph (2) of section 26(b) is amended by striking
subparagraph (B).
(C) Section 30A(c) is amended by striking paragraph (1) and
by redesignating paragraphs (2), (3), and (4) as paragraphs
(1), (2), and (3), respectively.
(D) Subsection (a) of section 164 is amended by striking
paragraph (5).
(E) Section 275(a) is amended by striking the last
sentence.
(F) Section 882(a)(1) is amended by striking ``, 59A''.
(G) Section 936(a)(3) is amended by striking subparagraph
(A) and by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (A), (B), and (C), respectively.
(H) Section 1561(a) is amended--
(i) by inserting ``and'' at the end of paragraph (2), by
striking ``, and'' at the end of paragraph (3) and inserting
a period, and by striking paragraph (4), and

[[Page S2972]]

(ii) by striking ``, the amount specified in paragraph (3),
and the amount specified in paragraph (4)'' and inserting
``and the amount specified in paragraph (3)''.
(I) Section 4611(e) is amended--
(i) by striking ``section 59A, this section,'' in paragraph
(2)(B) and inserting ``this section'', and
(ii) in paragraph (3)(A)--

(I) by striking ``section 59A,'', and
(II) by striking the comma after ``rate)''.

(J) Section 6425(c)(1)(A) is amended by inserting ``plus''
at end of clause (i), by striking ``plus'' and inserting
``over'' at the end of clause (ii), and by striking clause
(iii).
(K) Section 6655 is amended--
(i) by striking clause (iii) of subsection (e)(2)(B) and
inserting:
``(iii) Modified alternative minimum taxable income.--The
term `modified alternative minimum taxable income' means
alternative minimum taxable income (as defined in section
55(b)(2)) but determined without regard to the alternative
tax net operating loss deduction (as defined in section
56(d)).'', and
(ii) in subsection (g)(1)(A), by inserting ``plus'' at the
end of clause (ii), by striking clause (iii), and by
redesignating clause (iv) as clause (iii).
(L) Section 9507(b)(1) is amended by striking `` 59A,''.
(13) Standard deduction.--
(A) So much of paragraph (1) of section 63(c) as follows
``the sum of--`` is amended to read as follows:
``(A) the basic standard deduction, and
``(B) the additional standard deduction.''.
(B) Subsection (e) of section 63 is amended by striking
paragraphs (7), (8), and (9).
(14) Annuities; certain proceeds of endowment and life
insurance contracts.--Section 72 is amended--
(A) in subsection (c)(4), by striking ``; except that if
such date was before January 1, 1954, then the annuity
starting date is January 1, 1954'', and
(B) in subsection (g)(3), by striking ``January 1, 1954,
or'' and ``, whichever is later''.
(15) Unemployment compensation.--Section 85 is amended by
striking subsection (c).
(16) Accident and health plans.--Section 105(f) is amended
by striking ``or (d)''.
(17) Flexible spending arrangements.--Section 106(c)(1) is
amended by striking ``Effective on and after January 1, 1997,
gross'' and inserting ``Gross''.
(18) Certain combat zone compensation of members of the
armed forces.--Subsection (c) of section 112 is amended--
(A) by striking ``(after June 24, 1950)'' in paragraph (2),
and
(B) striking ``such zone;'' and all that follows in
paragraph (3) and inserting ``such zone.''.
(19) Legal service plans.--
(A) Part III of subchapter B of chapter 1 is amended by
striking section 120 (and by striking the item relating to
such section in the table of sections for such subpart).
(B)(i) Section 414(n)(3)(C) is amended by striking
``120,''.
(ii) Section 414(t)(2) is amended by striking ``120,''.
(iii) Section 501(c) is amended by striking paragraph (20).
(iv) Section 3121(a) is amended by striking paragraph (17).
(v) Section 3231(e) is amended by striking paragraph (7).
(vi) Section 3306(b) is amended by striking paragraph (12).
(vii) Section 6039D(d)(1) is amended by striking ``120,''.
(viii) Section 209(a)(14) of the Social Security Act is
amended--
(I) by striking subparagraph (B), and
(II) by striking ``(14)(A)'' and inserting ``(14)''.
(20) Principal residence.--Section 121(b)(3) is amended--
(A) by striking subparagraph (B), and
(B) in subparagraph (A), by striking ``(A) In general.--''
and moving the text 2 ems to the left.
(21) Certain reduced uniformed services retirement pay.--
Section 122(b)(1) is amended by striking ``after December 31,
1965,''.
(22) Great plains conservation program.--Section 126(a) is
amended by striking paragraph (6) and by redesignating
paragraphs (7), (8), (9), and (10) as paragraphs (6), (7),
(8), and (9), respectively.
(23) Treble damage payments under the antitrust law.--
Section 162(g) is amended by striking the last sentence.
(24) State legislators' travel expenses away from home.--
Paragraph (4) of section 162(h) is amended by striking ``For
taxable years beginning after December 31, 1980, this'' and
inserting ``This''.
(25) Interest.--
(A) Section 163 is amended--
(i) by striking paragraph (6) of subsection (d), and
(ii) by striking paragraph (5) of subsection (h).
(B) Section 56(b)(1)(C) is amended by striking clause (ii)
and by redesignating clauses (iii), (iv), and (v) as clauses
(ii), (iii), and (iv), respectively.
(26) Qualified motor vehicle taxes.--Section 164 is amended
by striking subsections (a)(6) and (b)(6).
(27) Disaster losses.--
(A) Subsection (h) of section 165 is amended by striking
paragraph (3).
(B) Subsection (i) of section 165 is amended--
(i) in paragraph (1)--

(I) by striking ``(as defined by clause (ii) of subsection
(h)(3)(C))'', and
(II) by striking ``(as defined by clause (i) of such
subsection)'',

(ii) by striking ``(as defined by subsection (h)(3)(C)(i)''
in paragraph (4), and
(iii) by adding at the end the following new paragraph:
``(5) Federally declared disasters.--For purposes of this
subsection--
``(A) In general.--The term `Federally declared disaster'
means any disaster subsequently determined by the President
of the United States to warrant assistance by the Federal
Government under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act.
``(B) Disaster area.--The term `disaster area' means the
area so determined to warrant such assistance.''.
(C) Section 1033(h)(3) is amended by striking ``section
165(h)(3)(C)'' and inserting ``section 165(i))(5)''.
(D) Section 6306(i), as added by this Act, is amended by
striking ``section 165(h)(3)(C)'' and inserting ``section
165(i)(5)''.
(28) Charitable, etc., contributions and gifts.--Section
170 is amended--
(A) by striking paragraph (3) of subsection (b),
(B) by striking paragraph (6) of subsection (e), and
(C) by striking subsection (k).
(29) Amortizable bond premium.--
(A) Subparagraph (B) of section 171(b)(1) is amended to
read as follows:
``(B)(i) with reference to the amount payable on maturity
(or if it results in a smaller amortizable bond premium
attributable to the period before the call date, with
reference to the amount payable on the earlier call date), in
the case of a bond described in subsection (a)(1), and
``(ii) with reference to the amount payable on maturity or
on an earlier call date, in the case of a bond described in
subsection (a)(2).''.
(B) Paragraphs (2) and (3)(B) of section 171(b) are each
amended by striking ``paragraph (1)(B)(ii)'' and inserting
``paragraph (1)(B)(i)''.
(30) Net operating loss carrybacks, carryovers, and
carryforwards.--
(A) Section 172 is amended--
(i) by striking subparagraphs (D), (H), (I) and (J) of
subsection (b)(1) and by redesignating subparagraphs (E),
(F), and (G) as subparagraphs (D), (E), and (F),
respectively, and
(ii) by striking subsections (g) and (j) and by
redesignating subsections (h), (i), and (k) as subsections
(g), (h), and (i), respectively.
(B) Each of the following provisions of section 172 (as
redesignated by subparagraph (A)) are amended as follows:
(i) By striking ``ending after August 2, 1989'' in
subsection (b)(1)(D)(i)(II).
(ii) By striking ``subsection (h)'' in subsection
(b)(1)(D)(ii) and inserting ``subsection (g)''.
(iii) By striking ``section 165(h)(3)(C)(i)'' in subsection
(b)(1)(E)(ii)(II), as amended by this Act, and inserting
``section 165(i)(5)''.
(iv) By striking ``subsection (i)'' and all that follows in
the last sentence of subsection (b)(1)(E)(ii) and inserting
``subsection (h)).''.
(v) By striking ``subsection (i)'' in subsection (b)(1)(F)
and inserting ``subsection (h)''.
(vi) By striking subparagraph (F) of paragraph (2) of
subsection (g).
(vii) By striking ``subsection (b)(1)(E)'' each place it
appears in subsection (g)(4) and inserting ``subsection
(b)(1)(D)''.
(viii) By striking the last sentence of subsection (h)(1).
(ix) By striking ``subsection (b)(1)(G)'' each place it
appears in subsection (h)(3) and inserting ``subsection
(b)(1)(F)''.
(C) Paragraph (5) of section 382(l) is amended by striking
subparagraph (F) and by redesignating subparagraphs (G) and
(H) as subparagraphs (F) and (G), respectively.
(31) Research and experimental expenditures.--Subparagraph
(A) of section 174(a)(2) is amended to read as follows:
``(I) Without consent.--A taxpayer may, without the consent
of the Secretary, adopt the method provided in this
subsection for his first taxable year for which expenditures
described in paragraph (1) are paid or incurred.''.
(32) Amortization of certain research and experimental
expenditures.--Paragraph (2) of section 174(b) is amended by
striking ``beginning after December 31, 1953''.
(33) Soil and water conservation expenditures.--Paragraph
(1) of section 175(d) is amended to read as follows:
``(1) Without consent.--A taxpayer may, without the consent
of the Secretary, adopt the method provided in this section
for the taxpayer's first taxable year for which expenditures
described in subsection (a) are paid or incurred.''.
(34) Clean-fuel vehicles.--
(A) Part VI of subchapter A of chapter 1 is amended by
striking section 179A (and by striking the item relating to
such section in the table of sections for such part).
(B) Section 30C(e) is amended by adding at the end the
following:
``(7) Reference.--For purposes of this section, any
reference to section 179A shall be treated as a reference to
such section as in effect immediately before its repeal.''.
(C) Section 62(a) is amended by striking paragraph (14).
(D) Section 263(a)(1) is amended by striking subparagraph
(H).
(E) Section 280F(a)(1) is amended by striking subparagraph
(C).

[[Page S2973]]

(F) Section 312(k)(3) is amended by striking ``179A,'' each
place it appears.
(G) Section 1016(a) is amended by striking paragraph (24).
(H) Section 1245(a) is amended by striking ``179A,'' each
place it appears in paragraphs (2)(C) and (3)(C).
(35) Qualified disaster expenses.--Part VI of subchapter A
of chapter 1 is amended by striking section 198A (and by
striking the item relating to such section in the table of
sections for such part).
(36) Activities not engaged in for profit.--Section
183(e)(1) is amended by striking the last sentence.
(37) Domestic production activities.--
(A) Subsection (a) of section 199 is amended by striking
paragraph (2) and by striking ``In general.--'', by
redesignating subparagraphs (A) and (B) of paragraph (1) as
paragraphs (1) and (2), and by moving paragraphs (1) and (2)
(as so redesignated) 2 ems to the left.
(B) Paragraphs (2) and (6)(B) of section 199(d) are each
amended by striking ``(a)(1)(B)'' and inserting ``(a)(2)''.
(38) Retirement savings.--
(A) Subparagraph (A) of section 219(b)(5) is amended to
read as follows:
``(A) In general.--The deductible amount is $5,000.''.
(B) Clause (ii) of section 219(b)(5)(B) is amended to read:
``(ii) Applicable amount.--For purposes of clause (i), the
applicable amount is $1,000.''.
(C) Clause (ii) of section 219(g)(2)(A) is amended by
striking ``for a taxable year beginning after December 31,
2006''.
(D) Section 219(g)(3)(B) is amended by striking clauses (i)
and (ii) and inserting the following:
``(i) In the case of a taxpayer filing a joint return,
$80,000.
``(ii) In the case of any other taxpayer (other than a
married individual filing a separate return), $50,000.''.
(E) Paragraph (8) of section 219(g) is amended by striking
``the dollar amount in the last row of the table contained in
paragraph (3)(B)(i), the dollar amount in the last row of the
table contained in paragraph (3)(B)(ii), and the dollar
amount contained in paragraph (7)(A),'' and inserting ``each
of the dollar amounts in paragraphs (3)(B)(i), (3)(B)(ii),
and (7)(A)''.
(39) Reports regarding qualified voluntary retirement
contributions.--
(A) Section 219 is amended by striking paragraph (4) of
subsection (f) and subsection (h).
(B) Section 6652 is amended by striking subsection (g).
(40) Interest on education loans.--Paragraph (1) of section
221(b) is amended by striking ``shall not exceed'' and all
that follows and inserting ``shall not exceed $2,500.''.
(41) Dividends received on certain preferred stock; and
dividends paid on certain preferred stock of public
utilities.--
(A) Sections 244 and 247 are hereby repealed, and the table
of sections for part VIII of subchapter B of chapter 1 is
amended by striking the items relating to sections 244 and
247.
(B) Paragraph (5) of section 172(d) is amended to read as
follows:
``(5) Computation of deduction for dividends received.--The
deductions allowed by section 243 (relating to dividends
received by corporations) and 245 (relating to dividends
received from certain foreign corporations) shall be computed
without regard to section 246(b) (relating to limitation on
aggregate amount of deductions).''.
(C) Paragraph (1) of section 243(c) is amended to read as
follows:
``(1) In general.--In the case of any dividend received
from a 20-percent owned corporation, subsection (a)(1) shall
be applied by substituting '80 percent' for `70 percent'.''.
(D) Section 243(d) is amended by striking paragraph (4).
(E) Section 246 is amended--
(i) by striking ``, 244,'' in subsection (a)(1),
(ii) in subsection (b)(1)--

(I) by striking ``sections 243(a)(1), and 244(a),'' the
first place it appears and inserting ``section 243(a)(1)'',
(II) by striking ``244(a),'' the second place it appears,
and
(III) by striking ``subsection (a) or (b) of section 245,
and 247,'' and inserting ``and subsection (a) or (b) of
section 245,'', and

(iii) by striking ``, 244,'' in subsection (c)(1).
(F) Section 246A is amended by striking ``, 244,'' both
places it appears in subsections (a) and (e).
(G) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2),
469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), and (D) of
section 805(a)(4), 805(b)(5), 812(e)(2)(A),
815(c)(2)(A)(iii), 832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B)
are each amended by striking ``, 244,'' each place it
appears.
(H) Section 1244(c)(2)(C) is amended by striking ``244,''.
(I) Section 805(a)(4)(B) is amended by striking ``,
244(a),'' each place it appears.
(J) Section 810(c)(2)(B) is amended by striking ``244
(relating to dividends on certain preferred stock of public
utilities),''.
(K) The amendments made by this paragraph shall not apply
to preferred stock issued before October 1, 1942 (determined
in the same manner as under section 247 of the Internal
Revenue Code of 1986 as in effect before its repeal by such
amendments).
(42) Organization expenses.--Section 248(c) is amended by
striking ``beginning after December 31, 1953,'' and by
striking the last sentence.
(43) Bond repurchase premium.--Section 249(b)(1) is amended
by striking ``, in the case of bonds or other evidences of
indebtedness issued after February 28, 1913,''.
(44) Amount of gain where loss previously disallowed.--
Section 267(d) is amended by striking ``(or by reason of
section 24(b) of the Internal Revenue Code of 1939)'' in
paragraph (1), by striking ``after December 31, 1953,'' in
paragraph (2), by striking the second sentence, and by
striking ``or by reason of section 118 of the Internal
Revenue Code of 1939'' in the last sentence.
(45) Acquisitions made to evade or avoid income tax.--
Paragraphs (1) and (2) of section 269(a) are each amended by
striking ``or acquired on or after October 8, 1940,''.
(46) Meals and entertainment.--Paragraph (3) of section
274(n) is amended--
(A) by striking ``(A) In general.--'',
(B) by striking ``substituting `the applicable percentage'
for'' and inserting ``substituting `80 percent' for'', and
(C) by striking subparagraph (B).
(47) Interest on indebtedness incurred by corporations to
acquire stock or assets of another corporation.--
(A) Section 279 is amended--
(i) by striking ``after December 31, 1967,'' in subsection
(a)(2),
(ii) by striking ``after October 9, 1969,'' in subsection
(b),
(iii) by striking ``after October 9, 1969, and'' in
subsection (d)(5), and
(iv) by striking subsection (i) and redesignating
subsection (j) as subsection (i).
(B) The amendments made by this paragraph shall not--
(i) apply to obligations issued on or before October 9,
1969 (determined in the same manner as under section 279 of
the Internal Revenue Code of 1986 as in effect before such
amendments), and
(ii) be construed to require interest on obligations issued
on or before December 31, 1967, to be taken into account
under section 279(a)(2) of such Code (as in effect after such
amendments).
(48) Bank holding companies.--
(A) Clause (iii) of section 304(b)(3)(D) is repealed.
(B) The heading of subparagraph (D) of section 304(b)(3) is
amended by striking ``and special rule.''
(49) Effect on earnings and profits.--Subsection (d) of
section 312 is amended by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2).
(50) Disqualified stock.--Paragraph (3) of section 355(d)
is amended by striking ``after October 9, 1990, and'' each
place it appears.
(51) Basis to corporations.--Section 362 is amended by
striking ``on or after June 22, 1954'' in subsection (a) and
by striking ``, on or after June 22, 1954,'' each place it
appears in subsection (c).
(52) Individual retirement accounts.--Clause (i) of section
408(p)(2)(E) is amended to read as follows:
``(i) In general.--For purposes of subparagraph (A)(ii),
the applicable amount is $10,000.''.
(53) Tax credit employee stock ownership plans.--Section
409 is amended by striking subsection (q).
(54) Catch-up contributions.--Subparagraph (B) of section
414(v)(2) is amended to read as follows:
``(II)(i) In the case of an applicable employer plan other
than a plan described in section 401(k)(11) or 408(p), the
applicable dollar amount is $5,000.
``(ii) In the case of an applicable employer plan described
in section 401(k)(11) or 408(p), the applicable dollar amount
is $2,500.''.
(55) Employee stock purchase plans.--Section 423(a) is
amended by striking ``after December 31, 1963,''.
(56) Transition rules.--
(A)(i) Paragraph (5) of section 430(c) is amended by
striking subparagraph (B) and by striking ``(A) In general.--
''
(ii) Paragraph (5) of section 303(c) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.1082(c)) is
amended by striking subparagraph (B) and by striking ``(A) In
general.--''
(B)(i) Paragraph (2) of section 430(h) is amended by
striking subparagraph (G).
(ii) Paragraph (2) of section 303(h) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.1082(h)) is
amended by striking subparagraph (G).
(C)(i) Paragraph (3) of section 436(j) is amended by
striking subparagraphs (B) and (C) and by striking ``(A) In
general.--''.
(ii) Subparagraph (C) of section 206(g)(9) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)(9))
is amended by striking clauses (ii) and (iii) and by striking
``(i) In general.--''.
(D)(i) Section 436 is amended by striking subsection (m).
(ii) Section 206(g) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1056(g)) is amended by
striking paragraph (10).
(57) Limitation on deductions for certain farming.--
(A) Section 464 is amended by striking ``any farming
syndicate (as defined in subsection (c))'' both places it
appears in subsections (a) and (b) and inserting ``any
taxpayer to whom subsection (d) applies''.
(B)(i) Subsection (c) of section 464 is hereby moved to the
end of section 461 and redesignated as subsection (j).
(ii) Such subsection (j) is amended--
(I) by striking ``For purposes of this section'' in
paragraph (1) and inserting ``For purposes of subsection
(i)(4)'', and
(II) by adding at the end the following new paragraphs:

[[Page S2974]]

``(3) Farming.--For purposes of this subsection, the term
`farming' has the meaning given to such term by section
464(e).
``(4) Limited entrepreneur.--For purposes of this
subsection, the term `limited entrepreneur' means a person
who--
``(A) has an interest in an enterprise other than as a
limited partner, and
``(B) does not actively participate in the management of
such enterprise.''.
(iii) Paragraph (4) of section 461(i) is amended by
striking ``section 464(c)'' and inserting ``subsection (j)''.
(C) Section 464 is amended--
(i) by striking subsections (e) and (g) and redesignating
subsections (d) and (f) as subsections (c) and (d),
respectively, and
(ii) by adding at the end the following new subsection:
``(e) Farming.--For purposes of this section, the term
`farming' means the cultivation of land or the raising or
harvesting of any agricultural or horticultural commodity
including the raising, shearing, feeding, caring for,
training, and management of animals. For purposes of the
preceding sentence, trees (other than trees bearing fruit or
nuts) shall not be treated as an agricultural or
horticultural commodity.''.
(D) Subsection (d) of section 464 of such Code (as
redesignated by subparagraph (C)) is amended--
(i) by striking paragraph (1) and redesignating paragraphs
(2), (3), and (4) as paragraphs (1), (2), and (3),
respectively, and
(ii) by striking ``Subsections (a) and (b) to Apply to'' in
the heading.
(E) Subparagraph (A) of section 58(a)(2) is amended by
striking ``section 464(c)'' and inserting ``section 461(j)''.
(58) Deductions limited to amount at risk.--Subparagraph
(A) of section 465(c)(3) is amended by striking ``In the case
of taxable years beginning after December 31, 1978, this''
and inserting ``This''.
(59) Passive activity losses and credits limited.--
(A) Section 469 is amended by striking subsection (m).
(B) Subsection (b) of section 58 is amended by adding
``and'' at the end of paragraph (1), by striking paragraph
(2), and by redesignating paragraph (3) as paragraph (2).
(60) Adjustments required by changes in method of
accounting.--Section 481(b)(3) is amended by striking
subparagraph (C).
(61) Exemption from tax on corporations, certain trusts,
etc.--Section 501 is amended by striking subsection (s).
(62) Requirements for exemption.--
(A) Section 503(a)(1) is amended to read as follows:
``(1) General rule.--An organization described in paragraph
(17) or (18) of section 501(c), or described in section
401(a) and referred to in section 4975(g)(2) or (3), shall
not be exempt from taxation under section 501(a) if it has
engaged in a prohibited transaction.''.
(B) Paragraph (2) of section 503(a) is amended by striking
``described in section 501(c)(17) or (18) or paragraph
(a)(1)(B)'' and inserting ``described in paragraph (1)''.
(C) Subsection (c) of section 503 is amended by striking
``described in section 501(c)(17) or (18) or subsection
(a)(1)(B)'' and inserting ``described in subsection (a)(1)''.
(63) Accumulated taxable income.--Paragraph (1) of section
535(b) and paragraph (1) of section 545(b) are each amended
by striking ``section 531'' and all that follows and
inserting ``section 531 or the personal holding company tax
imposed by section 541.''.
(64) Definition of property.--Subsection (b) of section 614
is amended--
(A) by striking paragraphs (3)(C) and (5), and
(B) in paragraph (4), by striking ``whichever of the
following years is later: The first taxable year beginning
after December 31, 1963, or''.
(65) Amounts received by surviving annuitant under joint
and survivor annuity contract.--Subparagraph (A) of section
691(d)(1) is amended by striking ``after December 31, 1953,
and''.
(66) Income taxes of members of armed forces on death.--
Section 692(a)(1) is amended by striking ``after June 24,
1950''.
(67) Special rules for computing reserves.--Paragraph (7)
of section 807(e) is amended by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph (B).
(68) Insurance company taxable income.--
(A) Section 832(e) is amended by striking ``of taxable
years beginning after December 31, 1966,''.
(B) Section 832(e)(6) is amended by striking ``In the case
of any taxable year beginning after December 31, 1970, the''
and inserting ``The''.
(69) Capitalization of certain policy acquisition
expenses.--Section 848 is amended by striking subsection (j).
(70) Tax on nonresident alien individuals.--Subparagraph
(B) of section 871(a)(1) is amended to read as follows:
``(II) gains described in subsection (b) or (c) of section
631,''.
(71) Limitation on credit.--Paragraph (2) of section 904(d)
is amended by striking subparagraph (J).
(72) Foreign earned income.--Clause (i) of section
911(b)(2)(D) is amended to read as follows:
``(i) In general.--The exclusion amount for any calendar
year is $80,000.''.
(73) Basis of property acquired from decedent.--Section
1014 is amended--
(A) by striking ``or section 811(j) of the Internal Revenue
Code of 1939 where the decedent died after October 21, 1942''
in subsection (a)(2), and
(B) by striking paragraphs (7) and (8) of subsection (b).
(74) Adjusted basis.--Section 1016(a) is amended by
striking paragraph (12).
(75) Property on which lessee has made improvements.--
Section 1019 is amended by striking the last sentence.
(76) Involuntary conversion.--Section 1033 is amended by
striking subsection (j) and by redesignating subsections (k)
and (l) as subsections (j) and (k), respectively.
(77) Property acquired during affiliation.--Section 1051 is
hereby repealed, and the table of sections for part IV of
subchapter O of chapter 1 is amended by striking the item
relating to section 1051.
(78) Capital gains and losses.--Section 1222 is amended by
striking the last sentence.
(79) Holding period of property.--
(A) Paragraph (1) of section 1223 is amended by striking
``after March 1, 1954,''.
(B) Paragraph (4) of section 1223 is amended by striking ``
`(or under so much of section 1052(c) as refers to section
113(a)(23) of the Internal Revenue Code of 1939)' ''.
(C) Paragraphs (6) and (8) of section 1223 are repealed.
(80) Property used in the trade or business and involuntary
conversions.--Subparagraph (A) of section 1231(c)(2) is
amended by striking ``beginning after December 31, 1981''.
(81) Sale or exchange of patents.--Section 1235 is
amended--
(A) by striking subsection (c) and by redesignating
subsections (d) and (e) as subsections (c) and (d),
respectively, and
(B) by striking ``subsection (d)'' in subsection (b)(2)(B)
and inserting ``subsection (c)''.
(82) Dealers in securities.--Subsection (b) of section 1236
is amended by striking ``after November 19, 1951,''.
(83) Sale of patents.--Subsection (a) of section 1249 is
amended by striking ``after December 31, 1962,''.
(84) Gain from disposition of farmland.--Paragraph (1) of
section 1252(a) is amended--
(A) by striking ``after December 31, 1969'' the first place
it appears, and
(B) by striking ``after December 31, 1969,'' in
subparagraph (A).
(85) Treatment of amounts received on retirement or sale or
exchange of debt instruments.--Subsection (c) of section 1271
is amended to read as follows:
``(c) Special Rule for Certain Obligations With Respect to
Which Original Issue Discount Not Currently Includible.--
``(1) In general.--On the sale or exchange of debt
instruments issued by a government or political subdivision
thereof after December 31, 1954, and before July 2, 1982, or
by a corporation after December 31, 1954, and on or before
May 27, 1969, any gain realized which does not exceed--
``(A) an amount equal to the original issue discount, or
``(B) if at the time of original issue there was no
intention to call the debt instrument before maturity, an
amount which bears the same ratio to the original issue
discount as the number of complete months that the debt
instrument was held by the taxpayer bears to the number of
complete months from the date of original issue to the date
of maturity, shall be considered as ordinary income.
``(2) Subsection (a)(2)(a) not to apply.--Subsection
(a)(2)(A) shall not apply to any debt instrument referred to
in paragraph (1) of this subsection.
``(3) Cross reference.--For current inclusion of original
issue discount, see section 1272.''.
(86) Amount and method of adjustment.--Section 1314 is
amended by striking subsection (d) and by redesignating
subsection (e) as subsection (d).
(87) Election; revocation; termination.--Clause (iii) of
section 1362(d)(3)(A) is amended by striking ``unless'' and
all that follows and inserting ``unless the corporation was
an S corporation for such taxable year.''.
(88) Old-age, survivors, and disability insurance.--
Subsection (a) of section 1401 is amended by striking ``the
following percent'' and all that follows and inserting ``12.4
percent of the amount of the self-employment income for such
taxable year.''.
(89) Hospital insurance.--Paragraph (1) of section 1401(b)
is amended by striking: ``the following percent'' and all
that follows and inserting ``2.9 percent of the amount of the
self-employment income for such taxable year.''.
(90) Ministers, members of religious orders, and christian
science practitioners.--Paragraph (3) of section 1402(e) is
amended--
(A) by striking ``whichever of the following dates is
later: (A)'' and
(B) by striking ``;or (B)' '' and all that follows and
inserting a period.
(91) Withholding of tax on nonresident aliens.--The first
sentence of subsection (b) of section 1441 and the first
sentence of paragraph (5) of section 1441(c) are each amended
by striking ``gains subject to tax'' and all that follows
through ``October 4, 1966'' and inserting ``and gains subject
to tax under section 871(a)(1)(D)''.
(92) Affiliated group defined.--Subparagraph (A) of section
1504(a)(3) is amended by striking ``for a taxable year which
includes any period after December 31, 1984'' in clause

[[Page S2975]]

(i) and by striking ``in a taxable year beginning after
December 31, 1984'' in clause (ii).
(93) Disallowance of the benefits of the graduated
corporate rates and accumulated earnings credit.--
(A) Subsection (a) of section 1551 is amended--
(i) by striking paragraph (1) and by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2),
respectively, and
(ii) by striking ``after June 12, 1963,'' each place it
appears.
(B) Section 1551(b) is amended--
(i) by striking ``or (2)'' in paragraph (1), and
(ii) by striking ``(a)(3)'' in paragraph (2) and inserting
``(a)(2)''.
(94) Credit for state death taxes.--
(A)(i) Part II of subchapter A of chapter 11 is amended by
striking section 2011 (and by striking the item relating to
such section in the table of sections for such subpart).
(ii) Section 2106(a)(4) is amended by striking ``section
2011(a)'' and inserting ``2058(a)''.
(B)(i) Subchapter A of chapter 13 is amended by striking
section 2604 (and by striking the item relating to such
section in the table of sections for such subpart).
(ii) Clause (ii) of section 164(b)(4)(A) is amended by
inserting ``(as in effect before its repeal)'' after
``section 2604''.
(iii) Section 2654(a)(1) is amended by striking ``(computed
without regard to section 2604)''.
(95) Gross estate.--Subsection (c) of section 2031 is
amended by striking paragraph (3) and by amending paragraph
(1)(B) to read as follows:
``(II) $500,000.''.
(96)(A) Part IV of subchapter A of chapter 11 is amended by
striking section 2057 (and by striking the item relating to
such section in the table of sections for such subpart).
(B) Paragraph (10) of section 2031(c) is amended by
inserting ``(as in effect before its repeal)'' immediately
before the period at the end thereof.
(97) Property within the united states.--Subsection (c) of
section 2104 is amended by striking ``With respect to estates
of decedents dying after December 31, 1969, deposits'' and
inserting ``Deposits''.
(98) FICA taxes.--
(A) Subsection (a) of section 3101 is amended by striking
``the following percentages'' and all that follows and
inserting ``6.2 percent of the wages (as defined in section
3121(a)) received by the individual with respect to
employment (as defined in section 3121(b))''.
(B)(i) Subsection (a) of section 3111 is amended by
striking ``the following percentages'' and all that follows
and inserting ``6.2 percent of the wages (as defined in
section 3121(a)) paid by the employer with respect to
employment (as defined in section 3121(b)).''
(ii) Subsection (b) of section 3111 is amended by striking
``the following percentages'' and all that follows and
inserting ``1.45 percent of the wages (as defined in section
3121(a)) paid by the employer with respect to employment (as
defined in section 3121(b)).''
(C)(i) Section 3121(b) is amended by striking paragraph
(17).
(ii) Section 210(a) of the Social Security Act is amended
by striking paragraph (17).
(99) Railroad retirement.--
(A) Subsection (b) of section 3201 is amended to read as
follows:
``(b) Tier 2 Tax.--In addition to other taxes, there is
hereby imposed on the income of each employee a tax equal to
the percentage determined under section 3241 for any calendar
year of the compensation received during such calendar year
by such employee for services rendered by such employee.''.
(B) Subsection (b) of section 3211 is amended to read as
follows:
``(b) Tier 2 Tax.--In addition to other taxes, there is
hereby imposed on the income of each employee representative
a tax equal to the percentage determined under section 3241
for any calendar year of the compensation received during
such calendar year by such employee representative for
services rendered by such employee representative.''.
(C) Subsection (b) of section 3221 is amended to read as
follows:
``(b) Tier 2 Tax.--In addition to other taxes, there is
hereby imposed on the income of each employer a tax equal to
the percentage determined under section 3241 for any calendar
year of the compensation paid during such calendar year by
such employer for services rendered for such employer.''.
(D) Subsection (b) of section 3231 is amended--
(i) by striking ``compensation; except'' and all that
follows in the first sentence and inserting
``compensation.'', and
(ii) by striking the second sentence.
(100) Credits against federal unemployment tax.--
(A) Paragraph (4) of section 3302(f) is amended--
(i) by striking ``subsection--'' and all that follows
through ``(A) In general.--The'' and inserting ``subsection,
the''
(ii) by striking subparagraph (B),
(iii) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively, and
(iv) by moving the text of such subparagraphs (as so
redesignated) 2 ems to the left.
(B) Paragraph (5) of section 3302(f) is amended by striking
subparagraph (D) and by redesignating subparagraph (E) as
subparagraph (D).
(101) Domestic service employment taxes.--Section 3510(b)
is amended by striking paragraph (4).
(102) Luxury passenger automobiles.--
(A) Chapter 31 is amended by striking subchapter A (and by
striking the item relating to such subchapter in the table of
subchapters for such chapter).
(B)(i) Section 4221 is amended--
(I) in subsections (a) and (d)(1), by striking ``subchapter
A or'' and inserting ``subchapter'',
(II) in subsection (a), by striking ``In the case of taxes
imposed by subchapter A of chapter 31, paragraphs (1), (3),
(4), and (5) shall not apply.'', and
(III) in subsection (c), by striking ``4001(c), 4001(d),
or''.
(ii) Section 4222 is amended by striking ``4001(c),
4001(d),''.
(iii) Section 4293 is amended by striking ``subchapter A of
chapter 31,''.
(103) Tax on fuel used in commercial transportation on
inland waterways.--Section 4042(b)(2)(A) is amended to read
as follows:
``(I) The Inland Waterways Trust Fund financing rate is 20
cents per gallon.''.
(104) Transportation by air.--Section 4261(e) is amended--
(A) in paragraph (1), by striking subparagraph (C), and
(B) by striking paragraph (5).
(105) Taxes on failure to distribute income.--
(A) Subsection (g) of section 4942 is amended by striking
``For all taxable years beginning on or after January 1,
1975, subject'' in paragraph (2)(A) and inserting
``Subject''.
(B) Section 4942(i)(2) is amended by striking ``beginning
after December 31, 1969, and''.
(106) Taxes on taxable expenditures.--Section 4945(f) is
amended by striking ``(excluding therefrom any preceding
taxable year which begins before January 1, 1970)''.
(107) Definitions and special rules.--Section 4682(h) is
amended--
(A) by striking paragraph (1) and redesignating paragraphs
(2), (3), and (4) as paragraphs (1), (2), and (3),
respectively, and
(B) in paragraph (1) (as so redesignated)--
(i) by striking the heading and inserting ``In general'',
and
(ii) by striking ``after 1991'' in subparagraph (C).
(108) Returns.--Subsection (a) of section 6039D is amended
by striking ``beginning after December 31, 1984,''.
(109) Information returns.--Subsection (c) of section 6060
is amended by striking `` `year' '' and all that follows and
inserting ``year.''.
(110) Collection.--Section 6302 is amended--
(A) in subsection (e)(2), by striking ``imposed by'' and
all that follows through ``with respect to'' and inserting
``imposed by sections 4251, 4261, or 4271 with respect to'',
(B) by striking the last sentence of subsection (f)(1), and
(C) in subsection (h)--
(i) by striking paragraph (2) and redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively, and
(ii) by amending paragraph (3) (as so redesignated) to read
as follows:
``(3) Coordination with other electronic fund transfer
requirements.--Under regulations, any tax required to be paid
by electronic fund transfer under section 5061(e) or 5703(b)
shall be paid in such a manner as to ensure that the
requirements of the second sentence of paragraph (1)(A) of
this subsection are satisfied.''.
(111) Abatements.--Section 6404(f) is amended by striking
paragraph (3).
(112) 2008 recovery rebate for individuals.--
(A) Subchapter B of chapter 65 is amended by striking
section 6428 (and by striking the item relating to such
section in the table of sections for such subchapter).
(B) Subparagraph (A) of section 6211(b)(4) is amended by
striking ``6428,''.
(C) Paragraph (2) of section 6213(g), as amended by section
213(a)(2) and paragraphs (4) and (5)(C) of this subsection,
is amended by striking subparagraph (Q), by redesignating
subparagraph (O) as subparagraph (N), by inserting ``and'' at
the end of subparagraph (M), and by striking the comma at the
end of subparagraph (N) (as so redesignated) and inserting a
period.
(D) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by striking ``6428, or 6431,'' and
inserting ``or 6431''.
(113) Advance payment of portion of increased child credit
for 2003.--Subchapter B of chapter 65 is amended by striking
section 6429 (and by striking the item relating to such
section in the table of sections for such subchapter).
(114) Failure by corporation to pay estimated income tax.--
Clause (i) of section 6655(g)(4)(A) is amended by striking
``(or the corresponding provisions of prior law)''.
(115) Retirement.--Section 7447(i)(3)(B)(ii) is amended by
striking ``at 4 percent per annum to December 31, 1947, and
at 3 percent per annum thereafter'', and inserting ``at 3
percent per annum''.
(116) Annuities to surviving spouses and dependent children
of judges.--
(A) Paragraph (2) of section 7448(a) is amended--
(i) by striking ``or under section 1106 of the Internal
Revenue Code of 1939'' and,
(ii) by striking ``or pursuant to section 1106(d) of the
Internal Revenue Code of 1939''.
(B) Subsection (g) of section 7448 is amended by striking
``or other than pursuant to section 1106 of the Internal
Revenue Code of 1939''.
(C) Subsections (g), (j)(1), and (j)(2) of section 7448 are
each amended by striking ``at 4

[[Page S2976]]

percent per annum to December 31, 1947, and at 3 percent per
annum thereafter'' and inserting ``at 3 percent per annum''.
(117) Merchant marine capital construction funds.--
Paragraph (4) of section 7518(g) is amended by striking ``any
nonqualified withdrawal'' and all that follows through ``
`shall be determined'' and inserting ``any nonqualified
withdrawal shall be determined''.
(118) Valuation tables.--
(A) Subsection (c) of section 7520 is amended by striking
paragraph (2) and redesignating paragraph (3) as paragraph
(2).
(B) Paragraph (2) of section 7520(c) (as redesignated by
subparagraph (A)) is amended--
(i) by striking ``Not later than December 31, 1989, the''
and inserting ``The'', and
(ii) by striking ``thereafter'' in the last sentence
thereof.
(119) Definition of employee.--Section 7701(a)(20) is
amended by striking ``chapter 21'' and all that follows and
inserting ``chapter 21.''.
(b) Effective Date.--
(1) General rule.--Except as otherwise provided in
subsection (a) or paragraph (2) of this subsection, the
amendments made by this section shall take effect on the date
of enactment of this Act.
(2) Savings provision.--If--
(A) any provision amended or repealed by the amendments
made by this section applied to--
(i) any transaction occurring before the date of the
enactment of this Act,
(ii) any property acquired before such date of enactment,
or
(iii) any item of income, loss, deduction, or credit taken
into account before such date of enactment, and
(B) the treatment of such transaction, property, or item
under such provision would (without regard to the amendments
or repeals made by this section) affect the liability for tax
for periods ending after date of enactment, nothing in the
amendments or repeals made by this section shall be construed
to affect the treatment of such transaction, property, or
item for purposes of determining liability for tax for
periods ending after such date of enactment.

TITLE III--HIRE MORE HEROES

SEC. 301. SHORT TITLE.

This title may be cited as the ``Hire More Heroes Act of
2014''.

SEC. 302. EMPLOYEES WITH HEALTH COVERAGE UNDER TRICARE OR THE
VETERANS ADMINISTRATION MAY BE EXEMPTED FROM
EMPLOYER MANDATE UNDER PATIENT PROTECTION AND
AFFORDABLE CARE ACT.

(a) In General.--Section 4980H(c)(2) is amended by adding
at the end the following:
``(F) Exemption for health coverage under tricare or the
veterans administration.--Solely for purposes of determining
whether an employer is an applicable large employer under
this paragraph for any month, an employer may elect not to
take into account for a month as an employee any individual
who, for such month, has medical coverage under--
``(i) chapter 55 of title 10, United States Code, including
coverage under the TRICARE program, or
``(ii) under a health care program under chapter 17 or 18
of title 38, United States Code, as determined by the
Secretary of Veterans Affairs, in coordination with the
Secretary of Health and Human Services and the Secretary.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to months beginning after December 31, 2013.

TITLE IV--BUDGETARY EFFECTS

SEC. 401. BUDGETARY EFFECTS.

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