II
Calendar No. 460
112th CONGRESS
2d Session
S. 3401
IN THE SENATE OF THE UNITED STATES
July 18, 2012
Mr. Hatch (for himself and Mr. McConnell) introduced the following bill; which was read the first time
July 19, 2012
Read the second time and placed on the calendar
A BILL
To amend the Internal Revenue Code of 1986 to temporarily extend tax relief provisions enacted in 2001 and 2003, to provide for temporary alternative minimum tax relief, to extend increased expensing limitations, and to provide instructions for tax reform.
Short title
This Act may be cited as the
Tax Relief Act of
2012
.
Temporary extension of 2001 tax relief
In general
Section 901 of the
Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by
striking December 31, 2012
both places it appears and inserting
December 31, 2013
.
Effective date
The amendment made by this section shall take effect as if included in the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.
Temporary extension of 2003 tax relief
In general
Section 303 of the
Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended by striking
December 31, 2012
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall take effect as if included in the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Alternative minimum tax relief
Temporary extension of increased alternative minimum tax exemption amount
In general
Paragraph (1) of section 55(d) of the Internal Revenue Code of 1986 is amended—
by striking
$72,450
and all that follows through 2011
in
subparagraph (A) and inserting $78,750 in the case of taxable years
beginning in 2012 and $79,850 in the case of taxable years beginning in
2013
, and
by striking
$47,450
and all that follows through 2011
in
subparagraph (B) and inserting $50,600 in the case of taxable years
beginning in 2012 and $51,150 in the case of taxable years beginning in
2013
.
Temporary extension of alternative minimum tax relief for nonrefundable personal credits
In general
Paragraph (2) of section 26(a) of the Internal Revenue Code of 1986 is amended—
by striking
or 2011
and inserting 2011, 2012, or 2013
,
and
by striking
2011
in the heading thereof and inserting
2013
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of increased expensing limitations and treatment of certain real property as section 179 property
In general
Dollar limitation
Section 179(b)(1) of the Internal Revenue Code of 1986 is amended—
by striking
2010 or 2011,
in subparagraph (B) and inserting 2010,
2011, 2012, or 2013, and
,
by striking subparagraph (C),
by redesignating subparagraph (D) as subparagraph (C), and
in subparagraph
(C), as so redesignated, by striking 2012
and inserting
2013
.
Reduction in limitation
Section 179(b)(2) of such Code is amended—
by striking
2010 or 2011,
in subparagraph (B) and inserting 2010,
2011, or 2012, and
,
by striking subparagraph (C),
by redesignating subparagraph (D) as subparagraph (C), and
in subparagraph
(C), as so redesignated, by striking 2012
and inserting
2013
.
Conforming amendment
Subsection (b) of section 179 of such Code is amended by striking paragraph (6).
Computer software
Section 179(d)(1)(A)(ii) of the Internal Revenue Code of
1986 is amended by striking 2013
and inserting
2014
.
Election
Section
179(c)(2) of the Internal Revenue Code of 1986 is amended by striking
2013
and inserting 2014
.
Special rules for treatment of qualified real property
In general
Section 179(f)(1) of the Internal Revenue Code of 1986 is
amended by striking 2010 or 2011
and inserting 2010,
2011, 2012, or 2013
.
Carryover limitation
In general
Section 179(f)(4) of such Code is amended by striking
2011
each place it appears and inserting
2013
.
Conforming amendment
The heading for subparagraph (C) of section 179(f)(4)
of such Code is amended by striking 2010
and inserting
2010, 2011 and 2012
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Instructions for tax reform
In general
The Senate Committee on Finance shall report legislation not later than 12 months after the date of the enactment of this Act that consists of changes in laws within its jurisdiction which meet the requirements of subsection (b).
Requirements
Legislation meets the requirements of this subsection if the legislation—
simplifies the Internal Revenue Code of 1986 by reducing the number of tax preferences and reducing individual tax rates proportionally, with the highest individual tax rate significantly below 35 percent;
permanently repeals the alternative minimum tax;
is projected, when compared to the current tax policy baseline, to be revenue neutral or result in revenue losses;
has a dynamic effect which is projected to stimulate economic growth and lead to increased revenue;
applies any increased revenue from stimulated economic growth to additional rate reductions and does not permit any such increased revenue to be used for additional Federal spending;
retains a progressive tax code; and
provides for revenue-neutral reform of the taxation of corporations and businesses by—
providing a top tax rate on corporations of no more than 25 percent; and
implementing a competitive territorial tax system.
July 19, 2012
Read the second time and placed on the calendar