[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3521 Reported in Senate (RS)]
Calendar No. 499
112th CONGRESS
2d Session
S. 3521
[Report No. 112-208]
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Family and
Business Tax Cut Certainty Act of 2012''.
(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.
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.
TITLE I--INDIVIDUAL TAX PROVISIONS
Subtitle A--Alternative Minimum Tax Relief
SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) is amended--
(1) 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
(2) by striking ``$47,450'' and all that follows through
``2011'' in subparagraph (B) and inserting ``$50,600 in the
case of taxable years beginning in 2012 and $51,150 in the case
of taxable years beginning in 2013''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE
PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) is amended--
(1) by striking ``or 2011'' and inserting ``2011, 2012, or
2013'', and
(2) by striking ``2011'' in the heading thereof and
inserting ``2013''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
Subtitle B--Other Individual Tax Provisions
SEC. 111. 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 2011'' and inserting ``2011, 2012, or 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.
SEC. 112. 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, 2013'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to indebtedness discharged after December 31, 2012.
SEC. 113. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-
PROVIDED MASS TRANSIT AND PARKING BENEFITS.
(a) In General.--Paragraph (2) of section 132(f) is amended by
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to months after December 31, 2011.
SEC. 114. 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, 2011'' and inserting ``December 31,
2013''.
(b) Technical Amendments.--Clause (i) of section 163(h)(4)(E) is
amended--
(1) by striking ``Veterans Administration'' and inserting
``Department of Veterans Affairs'', and
(2) by striking ``Rural Housing Administration'' and
inserting ``Rural Housing Service''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or accrued after December 31, 2011.
SEC. 115. 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, 2012'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.
SEC. 116. 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, 2011'' and inserting ``December 31, 2013''.
(b) 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''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made in taxable years beginning after December
31, 2011.
SEC. 117. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.
SEC. 118. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years beginning after December 31,
2011.
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.
(a) In General.--Paragraph (10) of section 6103(k) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(10) Disclosure of certain returns and return information
to certain prison officials.--
``(A) 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.
``(B) 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.
``(C) 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.
``(D) Restrictions on redisclosure and disclosure
to legal representatives.--Notwithstanding subsection
(h)--
``(i) 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.
``(ii) 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.''.
(b) Conforming Amendments.--
(1) 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),''.
(2) Paragraph (4) of section 6103(p) of such Code is
amended--
(A) by inserting ``subsection (k)(10),'' before
``subsection (l)(10),'' in the matter preceding
subparagraph (A),
(B) in subparagraph (F)(i)--
(i) by inserting ``(k)(10),'' before ``or
(l)(6),'', and
(ii) by inserting ``subsection (k)(10) or''
before ``subsection (l)(10),'', and
(C) by inserting ``subsection (k)(10) or'' before
``subsection (l)(10),'' both places it appears in the
matter following subparagraph (F)(iii).
(3) Paragraph (2) of section 7213(a) of such Code is
amended by inserting ``(k)(10),'' before ``(l)(6),''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 122. EXTENSION OF RULE DISREGARDING REFUNDS IN THE ADMINISTRATION
OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.
(a) In General.--Subsection (b) of section 6409 is amended by
striking ``December 31, 2012'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts received after December 31, 2012.
TITLE II--BUSINESS TAX EXTENDERS
SEC. 201. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (B) of section 41(h)(1) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2013''.
(2) Conforming amendment.--Subparagraph (D) of section
45C(b)(1) is amended by striking ``December 31, 2011'' and
inserting ``December 31, 2013''.
(b) Inclusion of Qualified Research Expenses and Gross Receipts of
an Acquired Person.--
(1) Partial inclusion of pre-acquisition qualified research
expenses and gross receipts.--Subparagraph (A) of section
41(f)(3) is amended to read as follows:
``(A) Acquisitions.--
``(i) 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).
``(ii) Amount determined with respect to
qualified research expenses.--The amount
determined under this clause is--
``(I) for purposes of applying this
section for the taxable year in which
such acquisition is made, the
acquisition year amount, and
``(II) 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.
``(iii) 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).
``(iv) Acquisition year amount.--For
purposes of clause (ii), the acquisition year
amount is the amount equal to the product of--
``(I) so much of the qualified
research expenses paid or incurred by
the predecessor with respect to the
acquired business during the
measurement period, and
``(II) 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,
divided by the number of days in the acquiring
person's taxable year.
``(v) 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--
``(I) each reference to a taxable
year in clauses (i), (ii), and (iv)
shall refer to the appropriate taxable
year of the acquiring person,
``(II) 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,
``(III) 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
``(IV) 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.
``(vi) 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.''.
(2) Expenses and gross receipts of a disposing person.--
Subparagraph (B) of section 41(f)(3) is amended to read as
follows:
``(B) 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--
``(i) 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
``(ii) 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.''.
(c) Aggregation of Expenditures.--Paragraph (1) of section 41(f) is
amended--
(1) 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
(2) 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''.
(d) Effective Date.--
(1) Extension.--The amendments made by subsection (a) shall
apply to amounts paid or incurred after December 31, 2011.
(2) Modifications.--The amendments made by subsections (b)
and (c) shall apply to taxable years beginning after December
31, 2011.
SEC. 202. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX CREDIT RATE FOR
NON-FEDERALLY SUBSIDIZED NEW BUILDINGS.
(a) 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''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 203. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR DETERMINING AREA
MEDIAN GROSS INCOME FOR QUALIFIED RESIDENTIAL RENTAL
PROJECT EXEMPT FACILITY BONDS.
(a) 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''.
(b) 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.
SEC. 204. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Subsection (f) of section 45A is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.
SEC. 205. EXTENSION OF NEW MARKETS TAX CREDIT.
(a) In General.--Subparagraph (G) of section 45D(f)(1) is amended
by striking ``2010 and 2011'' and inserting ``2010, 2011, 2012, and
2013''.
(b) Carryover of Unused Limitation.--Paragraph (3) of section
45D(f) is amended by striking ``2016'' and inserting ``2018''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after December 31, 2011.
SEC. 206. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Subsection (f) of section 45G is amended by
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred in taxable years beginning after
December 31, 2011.
SEC. 207. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Subsection (e) of section 45N is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.
SEC. 208. EXTENSION 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2011.
SEC. 209. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.
(a) In General.--Subparagraph (B) of section 51(c)(4) is amended by
striking ``after'' and all that follows and inserting ``after December
31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to individuals who begin work for the employer after December 31, 2011.
SEC. 210. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 54E(c) is amended by
inserting ``, 2012, and 2013'' after ``for 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2011.
SEC. 211. 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, 2012'' and
inserting ``January 1, 2014''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2011.
SEC. 212. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2011.
SEC. 213. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2011.
SEC. 214. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after December 31, 2011.
SEC. 215. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF
CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.
(a) In General.--
(1) Dollar limitation.--Section 179(b)(1) is amended--
(A) by striking ``2010 or 2011,'' in subparagraph
(B) and inserting ``2010, 2011, 2012, or 2013, and'',
(B) by striking subparagraph (C),
(C) by redesignating subparagraph (D) as
subparagraph (C), and
(D) in subparagraph (C), as so redesignated, by
striking ``2012'' and inserting ``2013''.
(2) Reduction in limitation.--Section 179(b)(2) is
amended--
(A) by striking ``2010 or 2011,'' in subparagraph
(B) and inserting ``2010, 2011, 2012, or 2013, and'',
(B) by striking subparagraph (C),
(C) by redesignating subparagraph (D) as
subparagraph (C), and
(D) in subparagraph (C), as so redesignated, by
striking ``2012'' and inserting ``2013''.
(3) Conforming amendment.--Subsection (b) of section 179 is
amended by striking paragraph (6).
(b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by
striking ``2013'' and inserting ``2014''.
(c) Election.--Section 179(c)(2) is amended by striking ``2013''
and inserting ``2014''.
(d) Special Rules for Treatment of Qualified Real Property.--
(1) In general.--Section 179(f)(1) is amended by striking
``2010 or 2011'' and inserting ``2010, 2011, 2012, or 2013''.
(2) Carryover limitation.--
(A) In general.--Section 179(f)(4) is amended by
striking ``2011'' each place it appears and inserting
``2013''.
(B) Conforming amendment.--Subparagraph (C) of
section 179(f)(4) is amended--
(i) in the heading, by striking ``2010''
and inserting ``2010, 2011 and 2012'', and
(ii) 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.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
SEC. 216. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.
(a) In General.--Subsection (g) of section 179E is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2011.
SEC. 217. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM AND
TELEVISION PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to productions commencing after December 31, 2011.
SEC. 218. 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 6 taxable years'' and inserting
``first 8 taxable years'', and
(2) by striking ``January 1, 2012'' and inserting ``January
1, 2014''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
SEC. 219. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to payments received or accrued after December 31, 2011.
SEC. 220. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED
INVESTMENT COMPANIES.
(a) 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''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
SEC. 221. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--
(1) 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.
(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,
2011, 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.
SEC. 222. 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, 2012'' and inserting ``January
1, 2014'', and
(2) by striking ``December 31, 2011'' and inserting
``December 31, 2013''.
(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, 2012'' and inserting
``January 1, 2014''.
(c) 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.
SEC. 223. 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, 2012'' and inserting ``January 1, 2014''.
(b) 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.
SEC. 224. 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, 2012'' and inserting ``January
1, 2014'', and
(2) by striking ``and 2011'' and inserting ``, 2011, 2012,
and 2013'' in the heading thereof.
(b) Technical Amendments.--
(1) 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.''.
(2) 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.''.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall apply to stock acquired after December 31, 2011.
(2) 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.
(3) 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.
SEC. 225. 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, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2011.
SEC. 226. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD
FOR BUILT-IN GAINS TAX.
(a) In General.--Paragraph (7) of section 1374(d) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D),
and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) 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'.''.
(b) Technical Amendment.--Subparagraph (B) of section 1374(d)(2) is
amended by inserting ``described in subparagraph (A)'' after ``, for
any taxable year''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply to taxable years beginning after December 31, 2011.
SEC. 227. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.
(a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Increased Exclusion of Gain on Stock of Empowerment Zone
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
(1) by striking ``December 31, 2016'' and inserting
``December 31, 2018''; and
(2) by striking ``2016'' in the heading and inserting
``2018''.
(c) 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.
(d) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2011.
SEC. 228. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK LIBERTY ZONE.
(a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended
by striking ``January 1, 2012'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to bonds issued after December 31, 2011.
SEC. 229. 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, 2012'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to distilled spirits brought into the United States after December 31,
2011.
SEC. 230. MODIFICATION AND EXTENSION OF AMERICAN SAMOA ECONOMIC
DEVELOPMENT CREDIT.
(a) Modification.--
(1) 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--
``(1) in the case of a taxable year beginning before
January 1, 2012, such corporation--
``(A) is an existing credit claimant with respect
to American Samoa, and
``(B) elected the application of section 936 of the
Internal Revenue Code of 1986 for its last taxable year
beginning before January 1, 2006, and
``(2) in the case of a taxable year beginning after
December 31, 2011, such corporation meets the requirements of
subsection (e).''.
(2) Requirements.--Section 119 of division A of such Act is
amended by adding at the end the following new subsection:
``(e) 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.''.
(b) 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--
``(1) 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
``(2) 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.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
TITLE III--ENERGY TAX EXTENDERS
SEC. 301. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES.
(a) In General.--Paragraph (2) of section 25C(g) is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2011.
SEC. 302. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY.
(a) In General.--Paragraph (2) of section 30C(g) is amended by
striking ``December 31, 2011.'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2011.
SEC. 303. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN ELECTRIC
VEHICLES.
(a) In General.--Section 30D is amended by adding at the end the
following new subsection:
``(g) Credit Allowed for 2- and 3-wheeled Plug-in Electric
Vehicles.--
``(1) In general.--In the case of a qualified 2- or 3-
wheeled plug-in electric vehicle--
``(A) 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
``(B) the amount of the credit allowed under
subparagraph (A) shall be treated as a credit allowed
under subsection (a).
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is an amount equal to the lesser of--
``(A) 10 percent of the cost of the qualified 2- or
3-wheeled plug-in electric vehicle, or
``(B) $2,500.
``(3) Qualified 2- or 3-wheeled plug-in electric vehicle.--
The term `qualified 2- or 3-wheeled plug-in electric vehicle'
means any vehicle which--
``(A) has 2 or 3 wheels,
``(B) 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)),
``(C) is manufactured primarily for use on public
streets, roads, and highways,
``(D) is capable of achieving a speed of 45 miles
per hour or greater, and
``(E) is acquired after December 31, 2011, and
before January 1, 2014.''.
(b) 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''.
(c) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2011.
SEC. 304. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL PRODUCER
CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (H) of section 40(b)(6) is
amended to read as follows:
``(H) Application of paragraph.--
``(i) In general.--This paragraph shall
apply with respect to qualified cellulosic
biofuel production after December 31, 2008, and
before January 1, 2014.
``(ii) No carryover to certain years after
expiration.--If this paragraph ceases to apply
for any period by reason of clause (i), rules
similar to the rules of subsection (e)(2) shall
apply.''.
(2) Conforming amendment.--Paragraph (2) of section 40(e)
is amended by striking ``or subsection (b)(6)(H)''.
(3) 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.
(b) Algae Treated as a Qualified Feedstock.--
(1) In general.--Subclause (I) of section 40(b)(6)(E)(i) is
amended to read as follows:
``(I) is derived by, or from,
qualified feedstocks, and''.
(2) 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:
``(F) Qualified feedstock.--For purposes of this
paragraph, the term `qualified feedstock' means--
``(i) any lignocellulosic or hemicellulosic
matter that is available on a renewable or
recurring basis, and
``(ii) any cultivated algae, cyanobacteria,
or lemna.
``(G) Special rules for algae.--In the case of fuel
which is derived by, or from, feedstock described in
subparagraph (F)(ii) and which is sold by the taxpayer
to another person for refining by such other person
into a fuel which meets the requirements of
subparagraph (E)(i)(II) and the refined fuel is not
excluded under subparagraph (E)(iii)--
``(i) such sale shall be treated as
described in subparagraph (C)(i),
``(ii) such fuel shall be treated as
meeting the requirements of subparagraph
(E)(i)(II) and as not being excluded under
subparagraph (E)(iii) in the hands of such
taxpayer, and
``(iii) except as provided in this
subparagraph, such fuel (and any fuel derived
from such fuel) shall not be taken into account
under subparagraph (C) with respect to the
taxpayer or any other person.''.
(3) Conforming amendments.--
(A) Section 40, as amended by paragraph (2), is
amended--
(i) by striking ``cellulosic biofuel'' each
place it appears in the text thereof and
inserting ``second generation biofuel'',
(ii) by striking ``Cellulosic'' in the
headings of subsections (b)(6), (b)(6)(E), and
(d)(3)(D) and inserting ``Second generation'',
and
(iii) 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''.
(B) 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''.
(C) Paragraph (1) of section 4101(a) is amended by
striking ``cellulosic biofuel'' and inserting ``second
generation biofuel''.
(4) Effective date.--The amendments made by this subsection
shall apply to fuels sold or used after the date of the
enactment of this Act.
SEC. 305. 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,
2011'' and inserting ``December 31, 2013''.
(b) 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, 2011'' and inserting ``December 31, 2013''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2011'' and inserting ``December 31,
2013''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2011.
SEC. 306. EXTENSION 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 ``7-year period'' each place it appears and inserting ``8-
year period''.
(b) Effective Date.--The amendment made by this section shall apply
to coal produced after December 31, 2012.
SEC. 307. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT TO
FACILITIES PRODUCING ENERGY FROM CERTAIN RENEWABLE
RESOURCES.
(a) Production Tax Credit.--
(1) Extension for wind facilities.--Paragraph (1) of
section 45(d) is amended by striking ``January 1, 2013'' and
inserting ``January 1, 2014''.
(2) 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)''.
(3) Modification to definition of qualified facility.--
(A) 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'':
(i) Paragraph (1).
(ii) Paragraph (2)(A)(i).
(iii) Paragraph (3)(A)(i)(I).
(iv) Paragraph (6).
(v) Paragraph (7).
(vi) Paragraph (9)(B).
(vii) Paragraph (11)(B).
(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.''.
(C) 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''.
(D) Geothermal facilities.--
(i) 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--
``(A) in the case of a facility using solar energy,
is placed in service before January 1, 2006, or
``(B) 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.''.
(E) Incremental hydropower production.--Paragraph
(9) of section 45(d) is amended--
(i) 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,
(ii) by striking ``In the case of a
facility'' and inserting the following:
``(A) In general.--In the case of a facility'',
(iii) by redesignating subparagraph (C) as
subparagraph (B), and
(iv) by adding at the end the following new
subparagraph:
``(C) 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.''.
(b) Extension of Election to Treat Qualified Facilities as Energy
Property.--Subparagraph (C) of section 48(a)(5) is amended to read as
follows:
``(C) Qualified investment credit facility.--For
purposes of this paragraph, the term `qualified
investment credit facility' means any facility--
``(i) 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),
``(ii) which is placed in service after
2008 and the construction of which begins
before January 1, 2014, and
``(iii) with respect to which--
``(I) no credit has been allowed
under section 45, and
``(II) the taxpayer makes an
irrevocable election to have this
paragraph apply.''.
(c) Technical Corrections.--
(1) Subparagraph (D) of section 48(a)(5) is amended--
(A) by striking the period at the end of clause
(ii) and inserting a comma, and
(B) by adding at the end the following new clauses:
``(iii) which is constructed,
reconstructed, erected, or acquired by the
taxpayer, and
``(iv) the original use of which commences
with the taxpayer.''.
(2) 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''.
(d) Effective Dates.--
(1) 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.
(2) 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.
(3) 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.
SEC. 308. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.
(a) In General.--Subsection (g) of section 45L is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendment made by this section shall apply
to homes acquired after December 31, 2011.
SEC. 309. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.
(a) 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''.
(b) Provisions Specified.--The provisions of section 45M(b)
specified in this subsection are subparagraph (C) of paragraph (1) and
subparagraph (E) of paragraph (2).
(c) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2011.
SEC. 310. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR
CELLULOSIC BIOFUEL PLANT PROPERTY.
(a) Extension.--
(1) In general.--Subparagraph (D) of section 168(l)(2) is
amended by striking ``January 1, 2013'' and inserting ``January
1, 2014''.
(2) Conforming amendment.--Paragraph (5) of section 168(l),
as redesignated by this Act, is amended--
(A) by striking ``and'' at the end of subparagraph
(A),
(B) by redesignating subparagraph (B) as
subparagraph (C), and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) by substituting `January 1, 2014' for
`January 1, 2013' in clause (i) thereof, and''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2012.
(b) Algae Treated as a Qualified Feedstock for Purposes of Bonus
Depreciation for Biofuel Plant Property.--
(1) 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))''.
(2) Conforming amendments.--Subsection (l) of section 168,
as amended by subsection (a), is amended--
(A) by striking ``cellulosic biofuel'' each place
it appears in the text thereof and inserting ``second
generation biofuel'',
(B) by striking paragraph (3) and redesignating
paragraphs (4) through (8) as paragraphs (3) through
(7), respectively,
(C) by striking ``Cellulosic'' in the heading of
such subsection and inserting ``Second Generation'',
and
(D) by striking ``cellulosic'' in the heading of
paragraph (2) and inserting ``second generation''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 311. 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, 2012'' and inserting ``January 1, 2014''.
(b) Effective Date.--The amendment made by this section shall apply
to dispositions after December 31, 2011.
SEC. 312. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.
(a) In General.--Sections 6426(d)(5) and 6426(e)(3) are each
amended by striking ``December 31, 2011'' and inserting ``December 31,
2013''.
(b) Outlay Payments for Alternative Fuels.--Paragraph (6) of
section 6427(e) is amended--
(1) in subparagraph (C)--
(A) 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
(B) by striking ``December 31, 2011, and'' and
inserting ``December 31, 2013,'',
(2) in subparagraph (D)--
(A) by striking ``or alternative fuel mixture'',
and
(B) by striking the period at the end and inserting
``, and'', and
(3) by adding at the end the following new subparagraph:
``(E) any alternative fuel mixture (as defined in
section 6426(e)(2)) sold or used after December 31,
2011.''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2011.
TITLE IV--OTHER PROVISIONS
SEC. 401. SENSE OF THE SENATE REGARDING TAX REFORM.
It is the sense of the Senate that--
(1) comprehensive tax reform is vital to economic growth
and United States competitiveness and should begin in 2013,
(2) 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
(3) 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.
TITLE V--BUDGET PROVISIONS
SEC. 501. 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.
Calendar No. 499
112th CONGRESS
2d Session
S. 3521
[Report No. 112-208]
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A BILL
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions.
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August 28, 2012
Read twice and placed on the calendar