II
Calendar No. 499
112th CONGRESS
2d Session
S. 3521
[Report No. 112–208]
IN THE SENATE OF THE UNITED STATES
August 28, 2012
Mr. Baucus, from the Committee on Finance, reported, under authority of the order of the Senate of August 2, 2012, the following original bill; which was read twice and placed on the calendar
A BILL
To amend the Internal Revenue Code of 1986 to extend certain expiring provisions.
Short title; etc
Short title
This Act may be cited
as the Family and Business Tax Cut
Certainty Act of 2012
.
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.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; etc.
TITLE I—Individual tax provisions
Subtitle A—Alternative minimum tax relief
Sec. 101. Extension of increased alternative minimum tax exemption amount.
Sec. 102. Extension of alternative minimum tax relief for nonrefundable personal credits.
Subtitle B—Other individual tax provisions
Sec. 111. Extension of deduction for certain expenses of elementary and secondary school teachers.
Sec. 112. Extension of exclusion from gross income of discharge of qualified principal residence indebtedness.
Sec. 113. Extension of parity for exclusion from income for employer-provided mass transit and parking benefits.
Sec. 114. Extension of mortgage insurance premiums treated as qualified residence interest.
Sec. 115. Extension of deduction of State and local general sales taxes.
Sec. 116. Extension of special rule for contributions of capital gain real property made for conservation purposes.
Sec. 117. Extension of above-the-line deduction for qualified tuition and related expenses.
Sec. 118. Extension of tax-free distributions from individual retirement plans for charitable purposes.
Subtitle C—Tax administration
Sec. 121. Improve and make permanent the provision authorizing the Internal Revenue Service to disclose certain return and return information to certain prison officials.
Sec. 122. Extension of rule disregarding refunds in the administration of Federal programs and Federally assisted programs.
TITLE II—Business tax extenders
Sec. 201. Extension and modification of research credit.
Sec. 202. Extension of temporary minimum low-income tax credit rate for non-federally subsidized new buildings.
Sec. 203. Extension of housing allowance exclusion for determining area median gross income for qualified residential rental project exempt facility bonds.
Sec. 204. Extension of Indian employment tax credit.
Sec. 205. Extension of new markets tax credit.
Sec. 206. Extension of railroad track maintenance credit.
Sec. 207. Extension of mine rescue team training credit.
Sec. 208. Extension of employer wage credit for employees who are active duty members of the uniformed services.
Sec. 209. Extension of work opportunity tax credit.
Sec. 210. Extension of qualified zone academy bonds.
Sec. 211. Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.
Sec. 212. Extension of 7-year recovery period for motorsports entertainment complexes.
Sec. 213. Extension of accelerated depreciation for business property on an Indian reservation.
Sec. 214. Extension of enhanced charitable deduction for contributions of food inventory.
Sec. 215. Extension of increased expensing limitations and treatment of certain real property as section 179 property.
Sec. 216. Extension of election to expense mine safety equipment.
Sec. 217. Extension of special expensing rules for certain film and television productions.
Sec. 218. Extension of deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
Sec. 219. Extension of modification of tax treatment of certain payments to controlling exempt organizations.
Sec. 220. Extension of treatment of certain dividends of regulated investment companies.
Sec. 221. Extension of RIC qualified investment entity treatment under FIRPTA.
Sec. 222. Extension of subpart F exception for active financing income.
Sec. 223. Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules.
Sec. 224. Extension of temporary exclusion of 100 percent of gain on certain small business stock.
Sec. 225. Extension of basis adjustment to stock of S corporations making charitable contributions of property.
Sec. 226. Extension of reduction in S-corporation recognition period for built-in gains tax.
Sec. 227. Extension of empowerment zone tax incentives.
Sec. 228. Extension of tax-exempt financing for New York Liberty Zone.
Sec. 229. Extension of temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands.
Sec. 230. Extension and limitation of American Samoa economic development credit.
TITLE III—Energy tax extenders
Sec. 301. Extension of credit for energy-efficient existing homes.
Sec. 302. Extension of credit for alternative fuel vehicle refueling property.
Sec. 303. Extension of credit for 2- or 3-wheeled plug-in electric vehicles.
Sec. 304. Extension and modification of cellulosic biofuel producer credit.
Sec. 305. Extension of incentives for biodiesel and renewable diesel.
Sec. 306. Extension of production credit for Indian coal facilities placed in service before 2009.
Sec. 307. Extension and modification of credits with respect to facilities producing energy from certain renewable resources.
Sec. 308. Extension of credit for energy-efficient new homes.
Sec. 309. Extension of credit for energy-efficient appliances.
Sec. 310. Extension and modification of special allowance for cellulosic biofuel plant property.
Sec. 311. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities.
Sec. 312. Extension of alternative fuels excise tax credits.
TITLE IV—Other provisions
Sec. 401. Sense of the Senate regarding tax reform.
TITLE V—Budget provisions
Sec. 501. PAYGO scorecard estimates.
Individual tax provisions
Alternative minimum tax relief
Extension of increased alternative minimum tax exemption amount
In general
Paragraph (1) of section 55(d) 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
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of alternative minimum tax relief for nonrefundable personal credits
In general
Paragraph (2) of section 26(a) 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.
Other individual tax provisions
Extension of deduction for certain expenses of elementary and secondary school teachers
In general
Subparagraph (D) of section 62(a)(2) is amended by
striking or 2011
and inserting 2011, 2012, or
2013
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of exclusion from gross income of discharge of qualified principal residence indebtedness
In general
Subparagraph (E) of
section 108(a)(1) is amended by striking January 1, 2013
and
inserting January 1, 2014
.
Effective date
The amendment made by this section shall apply to indebtedness discharged after December 31, 2012.
Extension of parity for exclusion from income for employer-provided mass transit and parking benefits
In general
Paragraph (2) of section 132(f) is amended by striking
January 1, 2012
and inserting January 1,
2014
.
Effective date
The amendment made by this section shall apply to months after December 31, 2011.
Extension of mortgage insurance premiums treated as qualified residence interest
In general
Subclause (I) of section 163(h)(3)(E)(iv) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Technical amendments
Clause (i) of section 163(h)(4)(E) is amended—
by striking
Veterans Administration
and inserting Department of
Veterans Affairs
, and
by striking
Rural Housing Administration
and inserting Rural Housing
Service
.
Effective date
The amendments made by this section shall apply to amounts paid or accrued after December 31, 2011.
Extension of deduction of State and local general sales taxes
In general
Subparagraph (I) of section 164(b)(5) is amended by
striking January 1, 2012
and inserting January 1,
2014
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of special rule for contributions of capital gain real property made for conservation purposes
In general
Clause (vi) of section 170(b)(1)(E) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Contributions by certain corporate farmers and ranchers
Clause (iii) of section
170(b)(2)(B) is amended by striking December 31, 2011
and
inserting December 31, 2013
.
Effective date
The amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2011.
Extension of above-the-line deduction for qualified tuition and related expenses
In general
Subsection (e) of section 222 is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of tax-free distributions from individual retirement plans for charitable purposes
In general
Subparagraph (F) of section 408(d)(8) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2011.
Tax administration
Improve and make permanent the provision authorizing the Internal Revenue Service to disclose certain return and return information to certain prison officials
In general
Paragraph (10) of section 6103(k) of the Internal Revenue Code of 1986 is amended to read as follows:
Disclosure of certain returns and return information to certain prison officials
In general
Under such procedures as the Secretary may prescribe, the Secretary may disclose to officers and employees of the Federal Bureau of Prisons and of any State agency charged with the responsibility for administration of prisons any returns or return information with respect to individuals incarcerated in Federal or State prison systems whom the Secretary has determined may have filed or facilitated the filing of a false or fraudulent return to the extent that the Secretary determines that such disclosure is necessary to permit effective Federal tax administration.
Disclosure to contractor-run prisons
Under such procedures as the Secretary may prescribe, the disclosures authorized by subparagraph (A) may be made to contractors responsible for the operation of a Federal or State prison on behalf of such Bureau or agency.
Restrictions on use of disclosed information
Any return or return information received under this paragraph shall be used only for the purposes of and to the extent necessary in taking administrative action to prevent the filing of false and fraudulent returns, including administrative actions to address possible violations of administrative rules and regulations of the prison facility and in administrative and judicial proceedings arising from such administrative actions.
Restrictions on redisclosure and disclosure to legal representatives
Notwithstanding subsection (h)—
Restrictions on redisclosure
Except as provided in clause (ii), any officer, employee, or contractor of the Federal Bureau of Prisons or of any State agency charged with the responsibility for administration of prisons shall not disclose any information obtained under this paragraph to any person other than an officer or employee or contractor of such Bureau or agency personally and directly engaged in the administration of prison facilities on behalf of such Bureau or agency.
Disclosure to legal representatives
The returns and return information disclosed under this paragraph may be disclosed to the duly authorized legal representative of the Federal Bureau of Prisons, State agency, or contractor charged with the responsibility for administration of prisons, or of the incarcerated individual accused of filing the false or fraudulent return who is a party to an action or proceeding described in subparagraph (C), solely in preparation for, or for use in, such action or proceeding.
.
Conforming amendments
Paragraph (3) of
section 6103(a) of the Internal Revenue Code of 1986 is amended by inserting
subsection (k)(10),
after subsection
(e)(1)(D)(iii),
.
Paragraph (4) of section 6103(p) of such Code is amended—
by inserting
subsection (k)(10),
before subsection (l)(10),
in
the matter preceding subparagraph (A),
in subparagraph (F)(i)—
by
inserting (k)(10),
before or (l)(6),
, and
by
inserting subsection (k)(10) or
before subsection
(l)(10),
, and
by inserting
subsection (k)(10) or
before subsection (l)(10),
both places it appears in the matter following subparagraph (F)(iii).
Paragraph (2) of
section 7213(a) of such Code is amended by inserting (k)(10),
before (l)(6),
.
Effective date
The amendments made by this section shall take effect on the date of the enactment of this Act.
Extension of rule disregarding refunds in the administration of Federal programs and Federally assisted programs
In general
Subsection (b) of
section 6409 is amended by striking December 31, 2012
and
inserting December 31, 2013
.
Effective date
The amendment made by this section shall apply to amounts received after December 31, 2012.
Business tax extenders
Extension and modification of research credit
Extension
In general
Subparagraph (B) of section 41(h)(1) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Conforming amendment
Subparagraph (D) of section 45C(b)(1) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Inclusion of qualified research expenses and gross receipts of an acquired person
Partial inclusion of pre-acquisition qualified research expenses and gross receipts
Subparagraph (A) of section 41(f)(3) is amended to read as follows:
Acquisitions
In general
If a person acquires the major portion of either a trade
or business or a separate unit of a trade or business (hereinafter in this
paragraph referred to as the acquired business
) of another
person (hereinafter in this paragraph referred to as the
predecessor
), then the amount of qualified research expenses
paid or incurred by the acquiring person during the measurement period shall be
increased by the amount determined under clause (ii), and the gross receipts of
the acquiring person for such period shall be increased by the amount
determined under clause (iii).
Amount determined with respect to qualified research expenses
The amount determined under this clause is—
for purposes of applying this section for the taxable year in which such acquisition is made, the acquisition year amount, and
for purposes of applying this section for any taxable year after the taxable year in which such acquisition is made, so much of the qualified research expenses paid or incurred by the predecessor with respect to the acquired business during the measurement period.
Amount determined with respect to gross receipts
The amount determined
under this clause is the amount which would be determined under clause (ii) if
the gross receipts of
were substituted for the qualified
research expenses paid or incurred by
each place it appears in clauses
(ii) and (iv).
Acquisition year amount
For purposes of clause (ii), the acquisition year amount is the amount equal to the product of—
so much of the qualified research expenses paid or incurred by the predecessor with respect to the acquired business during the measurement period, and
the number of days in the period beginning on the date of the acquisition and ending on the last day of the taxable year in which the acquisition is made,
Special rules for coordinating taxable years
In the case of an acquiring person and a predecessor whose taxable years do not begin on the same date—
each reference to a taxable year in clauses (i), (ii), and (iv) shall refer to the appropriate taxable year of the acquiring person,
the qualified research expenses paid or incurred by the predecessor, and the gross receipts of the predecessor, during each taxable year of the predecessor any portion of which is part of the measurement period shall be allocated equally among the days of such taxable year,
the amount of such qualified research expenses taken into account under clauses (ii) and (iv) with respect to a taxable year of the acquiring person shall be equal to the total of the expenses attributable under subclause (II) to the days occurring during such taxable year, and
the amount of such gross receipts taken into account under clause (iii) with respect to a taxable year of the acquiring person shall be equal to the total of the gross receipts attributable under subclause (II) to the days occurring during such taxable year.
Measurement period
For purposes of this subparagraph, the term measurement period means, with respect to the taxable year in which the credit is determined, any period of the acquiring person preceding such taxable year which is taken into account for purposes of determining the credit for such year.
.
Expenses and gross receipts of a disposing person
Subparagraph (B) of section 41(f)(3) is amended to read as follows:
Dispositions
If a person disposes of the major portion of either a trade or business or a separate unit of a trade or business in a transaction to which subparagraph (A) applies, and the disposing person furnished to the acquiring person such information as is necessary for the application of subparagraph (A), then, for purposes of applying this section for any taxable year ending after such disposition—
the amount of qualified research expenses paid or incurred by the disposing person during the measurement period (as defined in subparagraph (A)(vi)) shall be decreased by the amount of the increase in qualified research expenses determined under subparagraph (A) with respect to the acquiring person for such taxable year, and
the gross receipts of the disposing person during the measurement period (as so defined) shall be decreased by the amount of the increase in gross receipts determined under subparagraph (A) with respect to the acquiring person for such taxable year.
.
Aggregation of expenditures
Paragraph (1) of section 41(f) is amended—
by striking
shall be its proportionate shares of the qualified research expenses,
basic research payments, and amounts paid or incurred to energy research
consortiums, giving rise to the credit
in subparagraph (A)(ii) and
inserting shall be determined on a proportionate basis to its share of
the aggregate of the qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums, taken into account by
such controlled group for purposes of this section
, and
by striking
shall be its proportionate shares of the qualified research expenses,
basic research payments, and amounts paid or incurred to energy research
consortiums, giving rise to the credit
in subparagraph (B)(ii) and
inserting shall be determined on a proportionate basis to its share of
the aggregate of the qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums, taken into account by
all such persons under common control for purposes of this
section
.
Effective date
Extension
The amendments made by subsection (a) shall apply to amounts paid or incurred after December 31, 2011.
Modifications
The amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2011.
Extension of temporary minimum low-income tax credit rate for non-federally subsidized new buildings
In general
Subparagraph (A) of section 42(b)(2) is amended by
striking and before December 31, 2013
and inserting with
respect to housing credit dollar amount allocations made before January 1,
2014
.
Effective date
The amendment made by this section shall take effect on the date of the enactment of this Act.
Extension of housing allowance exclusion for determining area median gross income for qualified residential rental project exempt facility bonds
In general
Subsection (b) of section 3005 of the Housing Assistance
Tax Act of 2008 is amended by striking January 1, 2012
each
place it appears and inserting January 1, 2014
.
Effective date
The amendment made by this section shall take effect as if included in the enactment of section 3005 of the Housing Assistance Tax Act of 2008.
Extension of Indian employment tax credit
In general
Subsection (f) of section 45A is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of new markets tax credit
In general
Subparagraph (G) of section 45D(f)(1) is amended by
striking 2010 and 2011
and inserting 2010, 2011, 2012,
and 2013
.
Carryover of unused limitation
Paragraph (3) of section 45D(f) is amended by
striking 2016
and inserting 2018
.
Effective date
The amendments made by this section shall apply to calendar years beginning after December 31, 2011.
Extension of railroad track maintenance credit
In general
Subsection (f) of section 45G is amended by striking
January 1, 2012
and inserting January 1,
2014
.
Effective date
The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2011.
Extension of mine rescue team training credit
In general
Subsection (e) of section 45N is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of employer wage credit for employees who are active duty members of the uniformed services
In general
Subsection (f) of
section 45P is amended by striking December 31, 2011
and
inserting December 31, 2013
.
Effective date
The amendment made by this section shall apply to payments made after December 31, 2011.
Extension of work opportunity tax credit
In general
Subparagraph (B) of section 51(c)(4) is amended by
striking after
and all that follows and inserting after
December 31, 2013
.
Effective date
The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2011.
Extension of qualified zone academy bonds
In general
Paragraph (1) of section 54E(c) is amended by inserting
, 2012, and 2013
after for 2011
.
Effective date
The amendments made by this section shall apply to obligations issued after December 31, 2011.
Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
In general
Clauses (iv), (v), and (ix) of section 168(e)(3)(E) are
each amended by striking January 1, 2012
and inserting
January 1, 2014
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2011.
Extension of 7-year recovery period for motorsports entertainment complexes
In general
Subparagraph (D) of section 168(i)(15) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of accelerated depreciation for business property on an Indian reservation
In general
Paragraph (8) of
section 168(j) is amended by striking December 31, 2011
and
inserting December 31, 2013
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of enhanced charitable deduction for contributions of food inventory
In general
Clause (iv) of section 170(e)(3)(C) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to contributions made 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) 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) 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
.
Conforming amendment
Subsection (b) of section 179 is amended by striking paragraph (6).
Computer software
Section 179(d)(1)(A)(ii) is amended by striking
2013
and inserting 2014
.
Election
Section
179(c)(2) is amended by striking 2013
and inserting
2014
.
Special rules for treatment of qualified real property
In general
Section 179(f)(1) is amended by striking 2010 or
2011
and inserting 2010, 2011, 2012, or 2013
.
Carryover limitation
In general
Section 179(f)(4) is amended by striking
2011
each place it appears and inserting
2013
.
Conforming amendment
Subparagraph (C) of section 179(f)(4) is amended—
in
the heading, by striking 2010
and inserting 2010, 2011
and
2012
, and
by
adding at the end the following: For the last taxable year beginning in
2013, the amount determined under subsection (b)(3)(A) for such taxable year
shall be determined without regard to this paragraph.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of election to expense mine safety equipment
In general
Subsection (g) of section 179E is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of special expensing rules for certain film and television productions
In general
Subsection (f) of section 181 is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to productions commencing after December 31, 2011.
Extension of deduction allowable with respect to income attributable to domestic production activities in Puerto Rico
In general
Subparagraph (C) of section 199(d)(8) is amended—
by striking first 6 taxable
years
and inserting first 8 taxable years
, and
by striking
January 1, 2012
and inserting January 1,
2014
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of modification of tax treatment of certain payments to controlling exempt organizations
In general
Clause (iv) of section 512(b)(13)(E) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to payments received or accrued after December 31, 2011.
Extension of treatment of certain dividends of regulated investment companies
In general
Paragraphs (1)(C) and (2)(C) of section 871(k) are each
amended by striking December 31, 2011
and inserting
December 31, 2013
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of RIC qualified investment entity treatment under FIRPTA
In general
Clause (ii) of section 897(h)(4)(A) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Effective date
In general
The amendment made by subsection (a) shall take effect on January 1, 2012. 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.
Amounts withheld on or before date of enactment
In the case of a regulated investment company—
which makes a distribution after December 31, 2011, and before the date of the enactment of this Act; and
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,
Extension of subpart F exception for active financing income
Exempt insurance income
Paragraph (10) of section 953(e) is amended—
by striking January 1, 2012
and inserting January 1, 2014
, and
by striking
December 31, 2011
and inserting December 31,
2013
.
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, 2012
and inserting January 1,
2014
.
Effective date
The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2011, and to taxable years of United States shareholders with or within which any such taxable year of such foreign corporation ends.
Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules
In general
Subparagraph (C) of
section 954(c)(6) is amended by striking January 1, 2012
and
inserting January 1, 2014
.
Effective date
The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2011, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
Extension of temporary exclusion of 100 percent of gain on certain small business stock
In general
Paragraph (4) of section 1202(a) is amended—
by striking
January 1, 2012
and inserting January 1, 2014
,
and
by striking
and
2011
and inserting , 2011, 2012,
and 2013
in the heading thereof.
Technical amendments
Special rule for 2009 and certain period in 2010
Paragraph (3) of section 1202(a) is amended by adding at the end the following new flush sentence:
In the case of any stock which would be described in the preceding sentence (but for this sentence), the acquisition date for purposes of this subsection shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223..
100 percent exclusion
Paragraph (4) of section 1202(a) is amended by adding at the end the following new flush sentence:
In the case of any stock which would be described in the preceding sentence (but for this sentence), the acquisition date for purposes of this subsection shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223..
Effective dates
In general
The amendments made by subsection (a) shall apply to stock acquired after December 31, 2011.
Subsection (b)(1)
The amendment made by subsection (b)(1) shall take effect as if included in section 1241(a) of division B of the American Recovery and Reinvestment Act of 2009.
Subsection (b)(2)
The amendment made by subsection (b)(2) shall take effect as if included in section 2011(a) of the Creating Small Business Jobs Act of 2010.
Extension of basis adjustment to stock of S corporations making charitable contributions of property
In general
Paragraph (2) of section 1367(a) is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2011.
Extension of reduction in S-corporation recognition period for built-in gains tax
In general
Paragraph (7) of section 1374(d) is amended—
by redesignating subparagraph (C) as subparagraph (D), and
by inserting after subparagraph (B) the following new subparagraph:
Special rule for 2012 and 2013
For dispositions of property in taxable years
beginning in 2012 or 2013, subparagraphs (A) and (D) shall be applied by
substituting 5-year
for
10-year
.
.
Technical amendment
Subparagraph (B) of section 1374(d)(2) is amended by
inserting described in subparagraph (A)
after , for any
taxable year
.
Effective date
The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2011.
Extension of empowerment zone tax incentives
In general
Clause (i) of section 1391(d)(1)(A) is amended by
striking December 31, 2011
and inserting December 31,
2013
.
Increased exclusion of gain on stock of empowerment zone businesses
Subparagraph (C) of section 1202(a)(2) is amended—
by striking
December 31, 2016
and inserting December 31,
2018
; and
by striking
2016
in the heading and inserting
2018
.
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.
Effective date
The amendments made by this section shall apply to periods after December 31, 2011.
Extension of tax-exempt financing for New York Liberty Zone
In general
Subparagraph (D) of
section 1400L(d)(2) is amended by striking January 1, 2012
and
inserting January 1, 2014
.
Effective date
The amendment made by this section shall apply to bonds issued after December 31, 2011.
Extension of temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands
In general
Paragraph (1) of section 7652(f) is amended by striking
January 1, 2012
and inserting January 1,
2014
.
Effective date
The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2011.
Modification and extension of American Samoa economic development credit
Modification
In general
Subsection (a) of section 119 of division A of the Tax
Relief and Health Care Act of 2006 is amended by striking if such
corporation
and all that follows and
inserting
if—
in the case of a taxable year beginning before January 1, 2012, such corporation—
is an existing credit claimant with respect to American Samoa, and
elected the application of section 936 of the Internal Revenue Code of 1986 for its last taxable year beginning before January 1, 2006, and
in the case of a taxable year beginning after December 31, 2011, such corporation meets the requirements of subsection (e).
.
Requirements
Section 119 of division A of such Act is amended by adding at the end the following new subsection:
Qualified production activities income requirement
A corporation meets the
requirement of this subsection if such corporation has qualified production
activities income, as defined in subsection (c) of section 199 of the Internal
Revenue Code of 1986, determined by substituting American Samoa
for the United States
each place it appears in paragraphs (3),
(4), and (6) of such subsection (c), for the taxable
year.
.
Extension
Subsection
(d) of section 119 of division A of the Tax Relief and Health Care Act of 2006
is amended by striking shall apply
and all that follows and
inserting
shall apply—
in the case of a corporation that meets the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 8 taxable years of such corporation which begin after December 31, 2006, and before January 1, 2014, and
in the case of a corporation that does not meet the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 2 taxable years of such corporation which begin after December 31, 2011, and before January 1, 2014.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Energy tax extenders
Extension of credit for energy-efficient existing homes
In general
Paragraph (2) of section 25C(g) is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of credit for alternative fuel vehicle refueling property
In general
Paragraph (2) of section 30C(g) is amended by striking
December 31, 2011.
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of credit for 2- or 3-wheeled plug-in electric vehicles
In general
Section 30D is amended by adding at the end the following new subsection:
Credit allowed for 2- and 3-wheeled plug-in electric vehicles
In general
In the case of a qualified 2- or 3-wheeled plug-in electric vehicle—
there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year, and
the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a).
Applicable amount
For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of—
10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or
$2,500.
Qualified 2- or 3-wheeled plug-in electric vehicle
The term qualified 2- or 3-wheeled plug-in electric vehicle means any vehicle which—
has 2 or 3 wheels,
meets the
requirements of subparagraphs (A), (B), (C), (E), and (F) of subsection (d)(1)
(determined by substituting 2.5 kilowatt hours
for 4
kilowatt hours
in subparagraph (F)(i)),
is manufactured primarily for use on public streets, roads, and highways,
is capable of achieving a speed of 45 miles per hour or greater, and
is acquired after December 31, 2011, and before January 1, 2014.
.
Air quality and safety standards
Subparagraph (B) of section 30D(f)(7) is amended
by inserting , or section 571, whichever is applicable,
after
sections 30101 through 30169
.
Effective date
The amendments made by this section shall apply to vehicles acquired after December 31, 2011.
Extension and modification of cellulosic biofuel producer credit
Extension
In general
Subparagraph (H) of section 40(b)(6) is amended to read as follows:
Application of paragraph
In general
This paragraph shall apply with respect to qualified cellulosic biofuel production after December 31, 2008, and before January 1, 2014.
No carryover to certain years after expiration
If this paragraph ceases to apply for any period by reason of clause (i), rules similar to the rules of subsection (e)(2) shall apply.
.
Conforming amendment
Paragraph (2) of section 40(e) is amended by striking
or subsection (b)(6)(H)
.
Effective date
The amendments made by this subsection shall take effect as if included in section 15321(b) of the Heartland, Habitat, and Horticulture Act of 2008.
Algae treated as a qualified feedstock
In general
Subclause (I) of section 40(b)(6)(E)(i) is amended to read as follows:
is derived by, or from, qualified feedstocks, and
.
Qualified feedstock; special rules for algae
Paragraph (6) of section 40(b) is amended by redesignating subparagraphs (F), (G), and (H), as amended by this Act, as subparagraphs (H), (I), and (J), respectively, and by inserting after subparagraph (E) the following new subparagraphs:
Qualified feedstock
For purposes of this paragraph, the term qualified feedstock means—
any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and
any cultivated algae, cyanobacteria, or lemna.
Special rules for algae
In the case of fuel which is derived by, or from, feedstock described in subparagraph (F)(ii) and which is sold by the taxpayer to another person for refining by such other person into a fuel which meets the requirements of subparagraph (E)(i)(II) and the refined fuel is not excluded under subparagraph (E)(iii)—
such sale shall be treated as described in subparagraph (C)(i),
such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) and as not being excluded under subparagraph (E)(iii) in the hands of such taxpayer, and
except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under subparagraph (C) with respect to the taxpayer or any other person.
.
Conforming amendments
Section 40, as amended by paragraph (2), is amended—
by
striking cellulosic biofuel
each place it appears in the text
thereof and inserting second generation biofuel
,
by
striking Cellulosic
in the headings of subsections
(b)(6), (b)(6)(E), and (d)(3)(D) and inserting Second generation
,
and
by striking cellulosic
in the
headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) and
inserting second
generation
.
Clause (ii) of
section 40(b)(6)(E) is amended by striking Such term shall not
and inserting The term
.second generation biofuel
shall
not
Paragraph (1) of
section 4101(a) is amended by striking cellulosic biofuel
and
inserting second generation biofuel
.
Effective date
The amendments made by this subsection shall apply to fuels sold or used after the date of the enactment of this Act.
Extension of incentives for biodiesel and renewable diesel
Credits for biodiesel and renewable diesel used as fuel
Subsection (g) of
section 40A is amended by striking December 31, 2011
and
inserting December 31, 2013
.
Excise tax credits and outlay payments for biodiesel and renewable diesel fuel mixtures
Paragraph (6) of
section 6426(c) is amended by striking December 31, 2011
and
inserting December 31, 2013
.
Subparagraph (B)
of section 6427(e)(6) is amended by striking December 31, 2011
and inserting December 31, 2013
.
Effective date
The amendments made by this section shall apply to fuel sold or used after December 31, 2011.
Extension of production credit for Indian coal facilities placed in service before 2009
In general
Subparagraph (A) of section 45(e)(10) is amended by
striking 7-year period
each place it appears and inserting
8-year period
.
Effective date
The amendment made by this section shall apply to coal produced after December 31, 2012.
Extension and modification of credits with respect to facilities producing energy from certain renewable resources
Production tax credit
Extension for wind facilities
Paragraph (1)
of section 45(d) is amended by striking January 1, 2013
and
inserting January 1, 2014
.
Exclusion of paper which is commonly recycled from definition of municipal solid waste
Section 45(c)(6) is amended by inserting , except
that such term does not include paper which is commonly recycled and which has
been segregated from other solid waste (as so defined)
after (42
U.S.C. 6903)
.
Modification to definition of qualified facility
In general
The following provisions of section 45(d), as amended by
paragraph (1), are each amended by striking before January 1,
2014
and inserting the construction of which begins before
January 1, 2014
:
Paragraph (1).
Paragraph (2)(A)(i).
Paragraph (3)(A)(i)(I).
Paragraph (6).
Paragraph (7).
Paragraph (9)(B).
Paragraph (11)(B).
Certain closed-loop biomass facilities
Subparagraph (A) of section 45(d)(2) is amended by adding at the end the following new flush sentence:
For purposes of clause (ii), a facility shall be treated as modified before January 1, 2014, if the construction of such modification begins before such date.
.
Certain open-loop biomass facilities
Clause (ii) of section 45(d)(3)(A)
is amended by striking is originally placed in service
and
inserting the construction of which begins
.
Geothermal facilities
In general
Paragraph (4) of section 45(d) is amended by striking
and before January 1, 2014
and all that follows and
inserting
and which—
in the case of a facility using solar energy, is placed in service before January 1, 2006, or
in the case of a facility using geothermal energy, the construction of which begins before January 1, 2014.
Such term shall not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.
.
Incremental hydropower production
Paragraph (9) of section 45(d) is amended—
by redesignating subparagraphs (A) and (B), as amended by subparagraph (A), as clauses (i) and (ii), respectively, and by moving such clauses (as so redesignated) 2 ems to the right,
by
striking In the case of a facility
and inserting the
following:
In general
In the case of a facility
,
by redesignating subparagraph (C) as subparagraph (B), and
by adding at the end the following new subparagraph:
Special rule
For purposes of subparagraph (A)(i), an efficiency improvement or addition to capacity shall be treated as placed in service modified before January 1, 2014, if the construction of such improvement or addition begins before such date.
.
Extension of election to treat qualified facilities as energy property
Subparagraph (C) of section 48(a)(5) is amended to read as follows:
Qualified investment credit facility
For purposes of this paragraph, the term qualified investment credit facility means any facility—
which is a qualified facility (within the meaning of section 45) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d),
which is placed in service after 2008 and the construction of which begins before January 1, 2014, and
with respect to which—
no credit has been allowed under section 45, and
the taxpayer makes an irrevocable election to have this paragraph apply.
.
Technical corrections
Subparagraph (D) of section 48(a)(5) is amended—
by striking the period at the end of clause (ii) and inserting a comma, and
by adding at the end the following new clauses:
which is constructed, reconstructed, erected, or acquired by the taxpayer, and
the original use of which commences with the taxpayer.
.
Paragraphs (1)
and (2) of subsection (a) of section 1603 of division B of the American
Recovery and Reinvestment Act of 2009 are each amended by striking
placed in service
and inserting originally placed in
service by such person
.
Effective dates
In general
Except as provided in paragraphs (2) and (3), the amendments made by this section shall take effect on the date of the enactment of this Act.
Modification to definition of municipal solid waste
The amendments made by subsection (a)(2) shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.
Technical corrections
The amendments made by subsection (c) shall apply as if included in the enactment of the provisions of the American Recovery and Reinvestment Act of 2009 to which they relate.
Extension of credit for energy-efficient new homes
In general
Subsection (g) of section 45L is amended by striking
December 31, 2011
and inserting December 31,
2013
.
Effective date
The amendment made by this section shall apply to homes acquired after December 31, 2011.
Extension of credit for energy-efficient appliances
In general
Section 45M(b) is amended by striking 2011
each place it appears other than in the provisions specified in subsection (b)
and inserting 2011, 2012, or 2013
.
Provisions specified
The provisions of section 45M(b) specified in this subsection are subparagraph (C) of paragraph (1) and subparagraph (E) of paragraph (2).
Effective date
The amendments made by this section shall apply to appliances produced after December 31, 2011.
Extension and modification of special allowance for cellulosic biofuel plant property
Extension
In general
Subparagraph (D) of
section 168(l)(2) is amended by striking January 1, 2013
and
inserting January 1, 2014
.
Conforming amendment
Paragraph (5) of section 168(l), as redesignated by this Act, is amended—
by striking
and
at the end of subparagraph (A),
by redesignating subparagraph (B) as subparagraph (C), and
by inserting after subparagraph (A) the following new subparagraph:
by substituting
January 1, 2014
for January 1, 2013
in clause (i)
thereof,
and
.
Effective date
The amendments made by this subsection shall apply to property placed in service after December 31, 2012.
Algae treated as a qualified feedstock for purposes of bonus depreciation for biofuel plant property
In general
Subparagraph (A) of section 168(l)(2) is amended by
striking solely to produce cellulosic biofuel
and inserting
solely to produce second generation biofuel (as defined in section
40(b)(6)(E))
.
Conforming amendments
Subsection (l) of section 168, as amended by subsection (a), is amended—
by striking
cellulosic biofuel
each place it appears in the text thereof and
inserting second generation biofuel
,
by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,
by striking Cellulosic
in the
heading of such subsection and inserting Second Generation
,
and
by striking cellulosic
in the
heading of paragraph (2) and inserting second generation
.
Effective date
The amendments made by this subsection shall apply to property placed in service after the date of the enactment of this Act.
Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities
In general
Paragraph (3) of section 451(i) is amended by striking
January 1, 2012
and inserting January 1,
2014
.
Effective date
The amendment made by this section shall apply to dispositions after December 31, 2011.
Extension of alternative fuels excise tax credits
In general
Sections 6426(d)(5) and 6426(e)(3) are each amended by
striking December 31, 2011
and inserting December 31,
2013
.
Outlay payments for alternative fuels
Paragraph (6) of section 6427(e) is amended—
in subparagraph (C)—
by striking
or alternative fuel mixture (as defined in subsection (d)(2) or (e)(3)
of section 6426)
and inserting (as defined in section
6426(d)(2))
, and
by striking
December 31, 2011, and
and inserting December 31,
2013,
,
in subparagraph (D)—
by striking
or alternative fuel mixture
, and
by striking the
period at the end and inserting , and
, and
by adding at the end the following new subparagraph:
any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after December 31, 2011.
.
Effective date
The amendments made by this section shall apply to fuel sold or used after December 31, 2011.
Other provisions
Sense of the Senate regarding tax reform
It is the sense of the Senate that—
comprehensive tax reform is vital to economic growth and United States competitiveness and should begin in 2013,
a major focus of comprehensive tax reform should be broadening the tax base so as to lower tax rates, including by reforming, eliminating, or significantly reducing tax expenditures, including provisions traditionally extended by Congress from year to year, and
whenever possible, federal energy tax expenditures should be responsibly phased-out in a manner that allows these technologies to function without a reliance on federal subsidies.
Budget provisions
Statutory PAYGO scorecard estimates
The
budgetary effects of this Act, for the purpose of complying with the Statutory
Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest
statement titled Budgetary Effects of PAYGO Legislation
for this
Act, submitted for printing in the Congressional Record by the Chairman of the
Senate Budget Committee, provided that such statement has been submitted prior
to the vote on passage.
August 28, 2012
Read twice and placed on the calendar
