C:\USERS\HHALPERN\DESKTOP\121515.250.XML
12/15/2015 23:54
[Discussion Draft]
(Original Signature of Member)
[DISCUSSION DRAFT]
December 15, 2015
114th CONGRESS
1st Session
Rules Committee Print 114-40
Text of House amendment #2 to the Senate amendment to H.R. 2029, Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2016
[Showing the text of the Protecting Americans from Tax Hikes Act of 2015.]
At the end of House amendment #1, insert the following:
Q
Protecting Americans from Tax Hikes Act of 2015
1.
(a)
This division may be cited as the Protecting Americans from Tax Hikes Act of 2015
.
(b)
Except as otherwise expressly provided, whenever in this division 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)
The table of contents for this division is as follows:
Division Q—Protecting Americans from Tax Hikes Act of 2015
Sec. 1. Short title, etc.
Title I—Extenders
Subtitle A—Permanent extensions
Part 1—Tax Relief for Families and Individuals
Sec. 101. Enhanced child tax credit made permanent.
Sec. 102. Enhanced American opportunity tax credit made permanent.
Sec. 103. Enhanced earned income tax credit made permanent.
Sec. 104. Extension and modification of deduction for certain expenses of elementary and secondary school teachers.
Sec. 105. Extension of parity for exclusion from income for employer-provided mass transit and parking benefits.
Sec. 106. Extension of deduction of State and local general sales taxes.
Part 2—Incentives for charitable giving
Sec. 111. Extension and modification of special rule for contributions of capital gain real property made for conservation purposes.
Sec. 112. Extension of tax-free distributions from individual retirement plans for charitable purposes.
Sec. 113. Extension and modification of charitable deduction for contributions of food inventory.
Sec. 114. Extension of modification of tax treatment of certain payments to controlling exempt organizations.
Sec. 115. Extension of basis adjustment to stock of S corporations making charitable contributions of property.
Part 3—Incentives for growth, jobs, investment, and innovation
Sec. 121. Extension and modification of research credit.
Sec. 122. Extension and modification of employer wage credit for employees who are active duty members of the uniformed services.
Sec. 123. Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.
Sec. 124. Extension and modification of increased expensing limitations and treatment of certain real property as section 179 property.
Sec. 125. Extension of treatment of certain dividends of regulated investment companies.
Sec. 126. Extension of exclusion of 100 percent of gain on certain small business stock.
Sec. 127. Extension of reduction in S-corporation recognition period for built-in gains tax.
Sec. 128. Extension of subpart F exception for active financing income.
Part 4—Incentives for real estate investment
Sec. 131. Extension of minimum low-income housing tax credit rate for non-Federally subsidized buildings.
Sec. 132. Extension of military housing allowance exclusion for determining whether a tenant in certain counties is low-income.
Sec. 133. Extension of RIC qualified investment entity treatment under FIRPTA.
Subtitle B—Extensions through 2019
Sec. 141. Extension of new markets tax credit.
Sec. 142. Extension and modification of work opportunity tax credit.
Sec. 143. Extension and modification of bonus depreciation.
Sec. 144. Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules.
Subtitle C—Extensions through 2016
Part 1—Tax relief for families and individuals
Sec. 151. Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness.
Sec. 152. Extension of mortgage insurance premiums treated as qualified residence interest.
Sec. 153. Extension of above-the-line deduction for qualified tuition and related expenses.
Part 2—Incentives for growth, jobs, investment, and innovation
Sec. 161. Extension of Indian employment tax credit.
Sec. 162. Extension and modification of railroad track maintenance credit.
Sec. 163. Extension of mine rescue team training credit.
Sec. 164. Extension of qualified zone academy bonds.
Sec. 165. Extension of classification of certain race horses as 3-year property.
Sec. 166. Extension of 7-year recovery period for motorsports entertainment complexes.
Sec. 167. Extension and modification of accelerated depreciation for business property on an Indian reservation.
Sec. 168. Extension of election to expense mine safety equipment.
Sec. 169. Extension of special expensing rules for certain film and television productions; special expensing for live theatrical productions.
Sec. 170. Extension of deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
Sec. 171. Extension and modification of empowerment zone tax incentives.
Sec. 172. Extension of temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands.
Sec. 173. Extension of American Samoa economic development credit.
Sec. 174. Moratorium on medical device excise tax.
Part 3—Incentives for energy production and conservation
Sec. 181. Extension and modification of credit for nonbusiness energy property.
Sec. 182. Extension of credit for alternative fuel vehicle refueling property.
Sec. 183. Extension of credit for 2-wheeled plug-in electric vehicles.
Sec. 184. Extension of second generation biofuel producer credit.
Sec. 185. Extension of biodiesel and renewable diesel incentives.
Sec. 186. Extension and modification of production credit for Indian coal facilities.
Sec. 187. Extension of credits with respect to facilities producing energy from certain renewable resources.
Sec. 188. Extension of credit for energy-efficient new homes.
Sec. 189. Extension of special allowance for second generation biofuel plant property.
Sec. 190. Extension of energy efficient commercial buildings deduction.
Sec. 191. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities.
Sec. 192. Extension of excise tax credits relating to alternative fuels.
Sec. 193. Extension of credit for new qualified fuel cell motor vehicles.
Title II—Program Integrity
Sec. 201. Modification of filing dates of returns and statements relating to employee wage information and nonemployee compensation to improve compliance.
Sec. 202. Safe harbor for de minimis errors on information returns and payee statements.
Sec. 203. Requirements for the issuance of ITINs.
Sec. 204. Prevention of retroactive claims of earned income credit after issuance of social security number.
Sec. 205. Prevention of retroactive claims of child tax credit.
Sec. 206. Prevention of retroactive claims of American opportunity tax credit.
Sec. 207. Procedures to reduce improper claims.
Sec. 208. Restrictions on taxpayers who improperly claimed credits in prior year.
Sec. 209. Treatment of credits for purposes of certain penalties.
Sec. 210. Increase the penalty applicable to paid tax preparers who engage in willful or reckless conduct.
Sec. 211. Employer identification number required for American opportunity tax credit.
Sec. 212. Higher education information reporting only to include qualified tuition and related expenses actually paid.
Title III—Miscellaneous provisions
Subtitle A—Family tax relief
Sec. 301. Exclusion for amounts received under the Work Colleges Program.
Sec. 302. Improvements to section 529 accounts.
Sec. 303. Elimination of residency requirement for qualified ABLE programs.
Sec. 304. Exclusion for wrongfully incarcerated individuals.
Sec. 305. Clarification of special rule for certain governmental plans.
Sec. 306. Rollovers permitted from other retirement plans into simple retirement accounts.
Sec. 307. Technical amendment relating to rollover of certain airline payment amounts.
Sec. 308. Treatment of early retirement distributions for nuclear materials couriers, United States Capitol Police, Supreme Court Police, and diplomatic security special agents.
Sec. 309. Prevention of extension of tax collection period for members of the Armed Forces who are hospitalized as a result of combat zone injuries.
Subtitle B—Real estate investment trusts
Sec. 311. Restriction on tax-free spinoffs involving REITs.
Sec. 312. Reduction in percentage limitation on assets of REIT which may be taxable REIT subsidiaries.
Sec. 313. Prohibited transaction safe harbors.
Sec. 314. Repeal of preferential dividend rule for publicly offered REITs.
Sec. 315. Authority for alternative remedies to address certain REIT distribution failures.
Sec. 316. Limitations on designation of dividends by REITs.
Sec. 317. Debt instruments of publicly offered REITs and mortgages treated as real estate assets.
Sec. 318. Asset and income test clarification regarding ancillary personal property.
Sec. 319. Hedging provisions.
Sec. 320. Modification of REIT earnings and profits calculation to avoid duplicate taxation.
Sec. 321. Treatment of certain services provided by taxable REIT subsidiaries.
Sec. 322. Exception from FIRPTA for certain stock of REITs.
Sec. 323. Exception for interests held by foreign retirement or pension funds.
Sec. 324. Increase in rate of withholding of tax on dispositions of United States real property interests.
Sec. 325. Interests in RICs and REITs not excluded from definition of United States real property interests.
Sec. 326. Dividends derived from RICs and REITs ineligible for deduction for United States source portion of dividends from certain foreign corporations.
Subtitle C—Additional provisions
Sec. 331. Deductibility of charitable contributions to agricultural research organizations.
Sec. 332. Removal of bond requirements and extending filing periods for certain taxpayers with limited excise tax liability.
Sec. 333. Modifications to alternative tax for certain small insurance companies.
Sec. 334. Treatment of timber gains.
Sec. 335. Modification of definition of hard cider.
Sec. 336. Church plan clarification.
Subtitle D—Revenue Provisions
Sec. 341. Updated ASHRAE standards for energy efficient commercial buildings deduction.
Sec. 342. Excise tax credit equivalency for liquified petroleum gas and liquified natural gas.
Sec. 343. Exclusion from gross income of certain clean coal power grants to non-corporate taxpayers.
Sec. 344. Clarification of valuation rule for early termination of certain charitable remainder unitrusts.
Sec. 345. Prevention of transfer of certain losses from tax indifferent parties.
Sec. 346. Treatment of certain persons as employers with respect to motion picture projects.
Title IV—Tax administration
Subtitle A—Internal Revenue Service reforms
Sec. 401. Duty to ensure that Internal Revenue Service employees are familiar with and act in accord with certain taxpayer rights.
Sec. 402. IRS employees prohibited from using personal email accounts for official business.
Sec. 403. Release of information regarding the status of certain investigations.
Sec. 404. Administrative appeal relating to adverse determinations of tax-exempt status of certain organizations.
Sec. 405. Organizations required to notify Secretary of intent to operate under 501(c)(4).
Sec. 406. Declaratory judgments for 501(c)(4) and other exempt organizations.
Sec. 407. Termination of employment of Internal Revenue Service employees for taking official actions for political purposes.
Sec. 408. Gift tax not to apply to contributions to certain exempt organizations.
Sec. 409. Extend Internal Revenue Service authority to require truncated Social Security numbers on Form W–2.
Sec. 410. Clarification of enrolled agent credentials.
Sec. 411. Partnership audit rules.
Subtitle B—United States Tax Court
Part 1—Taxpayer access to United States Tax Court
Sec. 421. Filing period for interest abatement cases.
Sec. 422. Small tax case election for interest abatement cases.
Sec. 423. Venue for appeal of spousal relief and collection cases.
Sec. 424. Suspension of running of period for filing petition of spousal relief and collection cases.
Sec. 425. Application of Federal rules of evidence.
Part 2—United States Tax Court administration
Sec. 431. Judicial conduct and disability procedures.
Sec. 432. Administration, judicial conference, and fees.
Part 3—Clarification relating to United States Tax Court
Sec. 441. Clarification relating to United States Tax Court.
Title V—Trade-related provisions
Sec. 501. Modification of effective date of provisions relating to tariff classification of recreational performance outerwear.
Sec. 502. Agreement by Asia-Pacific Economic Cooperation members to reduce rates of duty on certain environmental goods.
Title VI—Budgetary effects
Sec. 601. Budgetary effects.
<enum>I</enum>
<header>Extenders</header>
<subtitle id="H6A6F31C316EA4C618CC35FA0B432044B">
<enum>A</enum>
<header>Permanent extensions</header>
<part id="HF732DFD5CF5F42C6B83FB3BFA47C0D9E">
<enum>1</enum>
<header>Tax Relief for Families and Individuals</header>
<section id="H4CB96D6CA6D64CF9B6F10554657E3A31">
<enum>101.</enum>
<header>Enhanced child tax credit made permanent</header>
<subsection id="H98CA6557942F46C29CE3245C86422431">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 24(d)(1)(B)(i) is amended by striking <quote>$10,000</quote> and inserting <quote>$3,000</quote>.</text>
</subsection>
<subsection id="H773822F4E27C404FB7C14C18D34D9110">
<enum>(b)</enum>
<header>Conforming amendment</header>
<text>Section 24(d) is amended by striking paragraphs (3) and (4).</text>
</subsection>
<subsection id="H43F3D00A9FF74036A54E0B72631C3C78">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H02ECBC2F3C064099BBCB3BAA61CA3E6F">
<enum>102.</enum>
<header>Enhanced American opportunity tax credit made permanent</header>
<subsection id="H3E98374D65FF47BA800151973B97B468">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 25A(i) is amended by striking <quote>and before 2018</quote>.</text>
</subsection>
<subsection id="HC415C8A715CF4266BCD4B4A745E2D922">
<enum>(b)</enum>
<header>Treatment of possessions</header>
<text display-inline="yes-display-inline">Section 1004(c)(1) of division B of the American Recovery and Reinvestment Tax Act of 2009 by striking <quote>and before 2018</quote> each place it appears.</text>
</subsection>
<subsection id="H2D8BB9CD7D8C4877838058965511EB52">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HF3963159D2284A6886C5C2ACC8F37781" commented="no">
<enum>103.</enum>
<header>Enhanced earned income tax credit made permanent</header>
<subsection id="H2CF1BD8E9F1F4E6DB02B8D4BF5545E33" commented="no">
<enum>(a)</enum>
<header>Increase in credit percentage for <enum-in-header>3</enum-in-header> or more qualifying children made permanent</header>
<text display-inline="yes-display-inline">Section 32(b)(1) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H735F7D359DB2421FBDC1AF5946A66DB8" style="OLC">
<paragraph id="H5FDC018F41814402B756B8BF312AF87B" commented="no">
<enum>(1)</enum>
<header>Percentages</header>
<text display-inline="yes-display-inline">The credit percentage and the phaseout percentage shall be determined as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 3 text, even cols" table-type="">
<tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.10">
<colspec coldef="txt" colname="column1" colwidth="186.75pt" min-data-value="115" rowsep="0" />
<colspec align="center" coldef="fig" colname="column2" colwidth="120.50pt" min-data-value="13" rowsep="0" />
<colspec coldef="fig" colname="column3" colwidth="106.50pt" min-data-value="13" rowsep="0" />
<thead>
<row>
<entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">In the case of<linebreak /> an eligible individual with:</entry>
<entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">The credit<linebreak /> percentage is:</entry>
<entry align="center" colname="column3" morerows="0" namest="column3" rowsep="1">The phaseout<linebreak /> percentage is:</entry>
</row>
</thead>
<tbody>
<row>
<entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">1 qualifying child</entry>
<entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">34</entry>
<entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">15.98</entry>
</row>
<row>
<entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2 qualifying children</entry>
<entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">40</entry>
<entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">21.06</entry>
</row>
<row>
<entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">3 or more qualifying children</entry>
<entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">45</entry>
<entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">21.06</entry>
</row>
<row>
<entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">No qualifying children</entry>
<entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">7.65</entry>
<entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">7.65</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HEB178E127BE645C687E41C2B6CFA8AFB" commented="no">
<enum>(b)</enum>
<header>Reduction of marriage penalty made permanent</header>
<paragraph id="H046A222558E34A02A808EF581268D0EB" commented="no">
<enum>(1)</enum>
<header>In general</header>
<text>Section 32(b)(2)(B) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF0F4206C418243A0B27F3FFC07ABC462" style="OLC">
<subparagraph id="H5F18184B65DE4819920219F31FD9857A" commented="no">
<enum>(B)</enum>
<header>Joint returns</header>
<clause id="HD7BC552696F8468F92125ABDCE7C3118" commented="no">
<enum>(i)</enum>
<header>In general</header>
<text>In the case of a joint return filed by an eligible individual and such individual’s spouse, the phaseout amount determined under subparagraph (A) shall be increased by $5,000.</text>
</clause>
<clause id="H3D793F9040C34DC2B084F80A87B64089" commented="no">
<enum>(ii)</enum>
<header>Inflation adjustment</header>
<text display-inline="yes-display-inline">In the case of any taxable year beginning after 2015, the $5,000 amount in clause (i) shall be increased by an amount equal to—</text>
<subclause id="H3E54AF62D4CF4B199F483330D0B90A46" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">such dollar amount, multiplied by</text>
</subclause>
<subclause id="HB1F335003A954BF4BF044F1BB7A8545C" commented="no">
<enum>(II)</enum>
<text display-inline="yes-display-inline">the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting <quote>calendar year 2008</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subclause>
</clause>
<clause id="H442E3D50DDDD42A0921A52A8B7641A7E" commented="no">
<enum>(iii)</enum>
<header>Rounding</header>
<text display-inline="yes-display-inline">Subparagraph (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H188B45D8ECA24E66BE207828DAE9732C" commented="no">
<enum>(c)</enum>
<header>Conforming amendment</header>
<text>Section 32(b) is amended by striking paragraph (3).</text>
</subsection>
<subsection id="H09023F580D1A4DC8948467F600E191E0" commented="no">
<enum>(d)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H9C48D8F2F6644700BA0931B56A6D71C4">
<enum>104.</enum>
<header>Extension and modification of deduction for certain expenses of elementary and secondary school teachers</header>
<subsection id="H5D6EC78C0D594CBC9A532BEA0657A258">
<enum>(a)</enum>
<header>Deduction made permanent</header>
<text>Section 62(a)(2)(D) is amended by striking <quote>In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, or 2014, the deductions</quote> and inserting <quote>The deductions</quote>.</text>
</subsection>
<subsection id="H03B9C09C8B3241E899821B0209ECBC2B">
<enum>(b)</enum>
<header>Inflation adjustment</header>
<text>Section 62(d) is amended by adding at the end the following new paragraph:</text>
<quoted-block id="H4647A9E304724ED2BDDD7BAECE145B22" style="OLC">
<paragraph id="HB485E08D7729414395E9BE2E6E2FEBC0">
<enum>(3)</enum>
<header>Inflation adjustment</header>
<text>In the case of any taxable year beginning after 2015, the $250 amount in subsection (a)(2)(D) shall be increased by an amount equal to—</text>
<subparagraph id="HEFEFA3CAD552411BA778D7EFE4E52D85">
<enum>(A)</enum>
<text>such dollar amount, multiplied by</text>
</subparagraph>
<subparagraph id="H5A42A678B5EC4E90BFCF7683C00B354E">
<enum>(B)</enum>
<text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2014</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subparagraph>
<continuation-text continuation-text-level="paragraph">Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50.</continuation-text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HC856F88F253A4592A5697C21FBD2606F">
<enum>(c)</enum>
<header>Professional development expenses</header>
<text>Section 62(a)(2)(D) is amended—</text>
<paragraph id="HAB2E0E9AB7D944E4ABA8354737538268">
<enum>(1)</enum>
<text>by striking <quote>educator in connection</quote> and all that follows and inserting <quote>educator—</quote>, and</text>
</paragraph>
<paragraph id="H9881727C905B41AE9727C985E6E040E0">
<enum>(2)</enum>
<text>by inserting at the end the following:</text>
<quoted-block id="H116B8312072D444AA9785A807C1A061B" style="OLC">
<clause id="H602C7D28721940F3AC3AB0A4CFB7DF15">
<enum>(i)</enum>
<text>by reason of the participation of the educator in professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction, and</text>
</clause>
<clause id="HA73F4101ED4F44BAA88B4FD58942BC19">
<enum>(ii)</enum>
<text>in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H115F616B57DD4E64A466F4CC1F8EA228">
<enum>(d)</enum>
<header>Effective dates</header>
<paragraph id="HCE752131E4CB4006BD3035173F263D94">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2014.</text>
</paragraph>
<paragraph id="H68F6F051C2E14315B3119D0ADEE25A95">
<enum>(2)</enum>
<header>Modifications</header>
<text>The amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H51A3263BA8EC474AAE0EEB55461503ED">
<enum>105.</enum>
<header>Extension of parity for exclusion from income for employer-provided mass transit and parking benefits</header>
<subsection id="HBB6FBDF747F74CA283EF7182763BB4AD">
<enum>(a)</enum>
<header>Mass transit and parking parity</header>
<text>Section 132(f)(2) is amended—</text>
<paragraph id="H500D33EB26144295B23811D34727F5B4">
<enum>(1)</enum>
<text>by striking <quote>$100</quote> in subparagraph (A) and inserting <quote>$175</quote>, and</text>
</paragraph>
<paragraph id="H09C101F0C06E472DB81E42F2211853EA">
<enum>(2)</enum>
<text>by striking the last sentence.</text>
</paragraph>
</subsection>
<subsection id="HCCC5E60861D64EFFB36D608E63DA7844" commented="no" display-inline="no-display-inline">
<enum>(b)</enum>
<header display-inline="yes-display-inline">Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply to months after December 31, 2014.</text>
</subsection>
</section>
<section id="HD69AD12FA7774DB4BBF7EFD3A1869700">
<enum>106.</enum>
<header>Extension of deduction of State and local general sales taxes</header>
<subsection id="H0A55C698C35E456BB8D47B40F5FA4F63">
<enum>(a)</enum>
<header>In general</header>
<text>Section 164(b)(5) is amended by striking subparagraph (I).</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H8825EE5DC4324B208A82C51129C82D58">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
</part>
<part id="HDC63B2F8973A4E84B46D563BF2139421">
<enum>2</enum>
<header>Incentives for charitable giving</header>
<section id="H8DFCED7AAE444B0DAD020254A3F1681D">
<enum>111.</enum>
<header>Extension and modification of special rule for contributions of capital gain real property made for conservation purposes</header>
<subsection id="HBD1DF103FF6447B0A2E7B11B0B6471FA">
<enum>(a)</enum>
<header>Made permanent</header>
<paragraph id="H725EA34D82084DBDBCB1BECD133CFCDD">
<enum>(1)</enum>
<header>Individuals</header>
<text>Section 170(b)(1)(E) is amended by striking clause (vi).</text>
</paragraph>
<paragraph id="H7A60A0C252684396A4B62B806363CE35">
<enum>(2)</enum>
<header>Corporations</header>
<text>Section 170(b)(2)(B) is amended by striking clause (iii).</text>
</paragraph>
</subsection>
<subsection id="HE77AA8A474AE4F18810D964B54E739BC">
<enum>(b)</enum>
<header>Contributions of capital gain real property made for conservation purposes by native corporations</header>
<paragraph id="H5BE0290F79344A5EB30634A8C9A4FF88">
<enum>(1)</enum>
<header>In general</header>
<text>Section 170(b)(2) is amended by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:</text>
<quoted-block id="HBFF3943B372D4C35997C479C81FBBA6E" style="OLC">
<subparagraph id="HDE04251ABAD94BB19E4E1EDAEE747122">
<enum>(C)</enum>
<header>Qualified conservation contributions by certain native corporations</header>
<clause id="H7CCE602C1659446B94CDF3E70BC1273D">
<enum>(i)</enum>
<header>In general</header>
<text>Any qualified conservation contribution (as defined in subsection (h)(1)) which—</text>
<subclause id="HEC0C987A56B04BE49F516F8A66B4918C">
<enum>(I)</enum>
<text>is made by a Native Corporation, and</text>
</subclause>
<subclause id="HF3497C8CFC0F4F92B2F4B604461E188B">
<enum>(II)</enum>
<text>is a contribution of property which was land conveyed under the Alaska Native Claims Settlement Act,</text>
</subclause>
<continuation-text continuation-text-level="clause">shall be allowed to the extent that the aggregate amount of such contributions does not exceed the excess of the taxpayer’s taxable income over the amount of charitable contributions allowable under subparagraph (A).</continuation-text>
</clause>
<clause id="H9045F775A5A74D648BCCE57F49ACA951">
<enum>(ii)</enum>
<header>Carryover</header>
<text>If the aggregate amount of contributions described in clause (i) exceeds the limitation of clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(2)) as a charitable contribution to which clause (i) applies in each of the 15 succeeding taxable years in order of time.</text>
</clause>
<clause id="HA7A5A7617DF24B87A9F27D2BCA3B569B">
<enum>(iii)</enum>
<header>Native corporation</header>
<text>For purposes of this subparagraph, the term <term>Native Corporation</term> has the meaning given such term by section 3(m) of the Alaska Native Claims Settlement Act.</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HD520872643434005844D031EC787D441">
<enum>(2)</enum>
<header>Conforming amendments</header>
<subparagraph id="H78D7DCA8DEB44E5A90825843C8D6FAE0">
<enum>(A)</enum>
<text>Section 170(b)(2)(A) is amended by striking <quote>subparagraph (B) applies</quote> and inserting <quote>subparagraph (B) or (C) applies</quote>.</text>
</subparagraph>
<subparagraph id="HD991BFC04FE0420F983715531ED1940E">
<enum>(B)</enum>
<text>Section 170(b)(2)(B)(ii) is amended by striking <quote>15 succeeding years</quote> and inserting <quote>15 succeeding taxable years</quote>.</text>
</subparagraph>
</paragraph>
<paragraph id="HE3073ACC1EA64496B16F6988D2F3CA48">
<enum>(3)</enum>
<header>Valid existing rights preserved</header>
<text>Nothing in this subsection (or any amendment made by this subsection) shall be construed to modify the existing property rights validly conveyed to Native Corporations (within the meaning of section 3(m) of the Alaska Native Claims Settlement Act) under such Act.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H00EE1E279AAB4E899C1105B8A01871DF">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="HC017BAC01FD14F98BAD9C10558E1AB43">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendments made by subsection (a) shall apply to contributions made in taxable years beginning after December 31, 2014.</text>
</paragraph>
<paragraph id="HEF03EC63915B441BB248771630034242">
<enum>(2)</enum>
<header>Modification</header>
<text display-inline="yes-display-inline">The amendments made by subsection (b) shall apply to contributions made in taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H511779D407254277B5235B8F6EC814E7">
<enum>112.</enum>
<header>Extension of tax-free distributions from individual retirement plans for charitable purposes</header>
<subsection id="H71F0EED72A7D4934AB96A7DF736DC596">
<enum>(a)</enum>
<header>In general</header>
<text>Section 408(d)(8) is amended by striking subparagraph (F).</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HB0A2943B01BD43968E6468F657D2D436">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section id="H1C8CF48CF6BD49D8B5120C0009B50A05">
<enum>113.</enum>
<header>Extension and modification of charitable deduction for contributions of food inventory</header>
<subsection id="H785292D4B52E4FDDB7ED240E8D13DEE8">
<enum>(a)</enum>
<header>Permanent extension</header>
<text>Section 170(e)(3)(C) is amended by striking clause (iv).</text>
</subsection>
<subsection id="HB373023E09E2455283ECB5222B74DAA1">
<enum>(b)</enum>
<header>Modifications</header>
<text>Section 170(e)(3)(C), as amended by subsection (a), is amended by striking clause (ii), by redesignating clause (iii) as clause (vi), and by inserting after clause (i) the following new clauses:</text>
<quoted-block id="H573090A548BB42888DAC7CF9666DF340" style="OLC">
<clause id="H95BDC8A5F305452A9A7186F4A0289180">
<enum>(ii)</enum>
<header>Limitation</header>
<text>The aggregate amount of such contributions for any taxable year which may be taken into account under this section shall not exceed—</text>
<subclause id="H52547913A207489CA04638F76B442B9D">
<enum>(I)</enum>
<text>in the case of any taxpayer other than a C corporation, 15 percent of the taxpayer’s aggregate net income for such taxable year from all trades or businesses from which such contributions were made for such year, computed without regard to this section, and</text>
</subclause>
<subclause id="H221CC5C6B25A4D9F8B8E1D12B456414E">
<enum>(II)</enum>
<text>in the case of a C corporation, 15 percent of taxable income (as defined in subsection (b)(2)(D)).</text>
</subclause>
</clause>
<clause id="H344520F45F994460B14D5B8AC18639AB">
<enum>(iii)</enum>
<header>Rules related to limitation</header>
<subclause id="H2342B85360A341C1BD7E9A56967B976E">
<enum>(I)</enum>
<header>Carryover</header>
<text>If such aggregate amount exceeds the limitation imposed under clause (ii), such excess shall be treated (in a manner consistent with the rules of subsection (d)) as a charitable contribution described in clause (i) in each of the 5 succeeding taxable years in order of time.</text>
</subclause>
<subclause id="H45A85D01D8F249BAAEBE150FB5E3BC5A">
<enum>(II)</enum>
<header>Coordination with overall corporate limitation</header>
<text>In the case of any charitable contribution which is allowable after the application of clause (ii)(II), subsection (b)(2)(A) shall not apply to such contribution, but the limitation imposed by such subsection shall be reduced (but not below zero) by the aggregate amount of such contributions. For purposes of subsection (b)(2)(B), such contributions shall be treated as allowable under subsection (b)(2)(A).</text>
</subclause>
</clause>
<clause id="H72DCF6C0859945DD8D8984A390313792">
<enum>(iv)</enum>
<header>Determination of basis for certain taxpayers</header>
<text>If a taxpayer—</text>
<subclause id="HCDE72E3DA41944558BD87A5E52D95B13">
<enum>(I)</enum>
<text>does not account for inventories under section 471, and</text>
</subclause>
<subclause id="HC6C61A9A0970439FBB109BE13C8621FE">
<enum>(II)</enum>
<text>is not required to capitalize indirect costs under section 263A,</text>
</subclause>
<continuation-text continuation-text-level="clause">the taxpayer may elect, solely for purposes of subparagraph (B), to treat the basis of any apparently wholesome food as being equal to 25 percent of the fair market value of such food.</continuation-text>
</clause>
<clause id="H22F9C1491AF74F12938C78C8F6F4229F">
<enum>(v)</enum>
<header>Determination of fair market value</header>
<text>In the case of any such contribution of apparently wholesome food which cannot or will not be sold solely by reason of internal standards of the taxpayer, lack of market, or similar circumstances, or by reason of being produced by the taxpayer exclusively for the purposes of transferring the food to an organization described in subparagraph (A), the fair market value of such contribution shall be determined—</text>
<subclause id="HB3D7263C90544CF5862C63D389C0B7FC">
<enum>(I)</enum>
<text>without regard to such internal standards, such lack of market, such circumstances, or such exclusive purpose, and</text>
</subclause>
<subclause id="HE48AB0DDAF2546FC894C1F74222AA4EE">
<enum>(II)</enum>
<text>by taking into account the price at which the same or substantially the same food items (as to both type and quality) are sold by the taxpayer at the time of the contribution (or, if not so sold at such time, in the recent past).</text>
</subclause>
</clause>
<after-quoted-block />
</quoted-block>
</subsection>
<subsection id="HE697482CF2C1429B930E0F7B10F1380D">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="H96C5AF7E025A47D3937DBC1409EE709A">
<enum>(1)</enum>
<header>Extension</header>
<text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to contributions made after December 31, 2014.</text>
</paragraph>
<paragraph id="HC0CC916B897543EE9644F0A838EA8434" commented="no">
<enum>(2)</enum>
<header>Modifications</header>
<text>The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="HA8BD1EA45DDC4C379A68EDD577FB1A15">
<enum>114.</enum>
<header>Extension of modification of tax treatment of certain payments to controlling exempt organizations</header>
<subsection id="H47F3334296D4420E83386638614A9523">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 512(b)(13)(E) is amended by striking clause (iv).</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H83DBE427FC0C4AE09534CFD65DD52B2D">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to payments received or accrued after December 31, 2014.</text>
</subsection>
</section>
<section id="HF217BBF3A6B543B08382C892B7C2EB6F">
<enum>115.</enum>
<header>Extension of basis adjustment to stock of S corporations making charitable contributions of property</header>
<subsection id="H7C58F2CCAA3645A587D35BB5DEEEE6E8">
<enum>(a)</enum>
<header>In general</header>
<text>Section 1367(a)(2) is amended by striking the last sentence.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H0677535EB64B4CD0B6D7A427872B10A1">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
</part>
<part id="H8B50279E4DD8419B9D3EFA0731C2D695">
<enum>3</enum>
<header>Incentives for growth, jobs, investment, and innovation</header>
<section id="H785198327EC9461894A8B6F287F6A44B">
<enum>121.</enum>
<header>Extension and modification of research credit</header>
<subsection id="H194993B83DDD4154AADF23D0FAA0C79F">
<enum>(a)</enum>
<header>Made permanent</header>
<paragraph id="HE162F06D84E7442787A2D0417FDD0092">
<enum>(1)</enum>
<header>In general</header>
<text>Section 41 is amended by striking subsection (h).</text>
</paragraph>
<paragraph id="HFF6F18347E7E4C919A9A559FB7B51AA3">
<enum>(2)</enum>
<header>Conforming amendment</header>
<text>Section 45C(b)(1) is amended by striking subparagraph (D).</text>
</paragraph>
</subsection>
<subsection id="HE94D8D8D176F4FC482A01D418C2FBFE9">
<enum>(b)</enum>
<header>Credit allowed against alternative minimum tax in case of eligible small business</header>
<text display-inline="yes-display-inline">Section 38(c)(4)(B) is amended by redesignating clauses (ii) through (ix) as clauses (iii) through (x), respectively, and by inserting after clause (i) the following new clause:</text>
<quoted-block style="OLC" id="HDE24FE772E3643D5A5112636FEB6C6F7" display-inline="no-display-inline">
<clause id="HC46CA8D17CD94FC18D5983B449C0568B">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">the credit determined under section 41 for the taxable year with respect to an eligible small business (as defined in paragraph (5)(C), after application of rules similar to the rules of paragraph (5)(D)),</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H4B4678B484604926B8CC11B28D6FE0A2">
<enum>(c)</enum>
<header>Treatment of research credit for certain startup companies</header>
<paragraph id="H0F4E97E5FBE545D09CD59374A384ED23">
<enum>(1)</enum>
<header>In general</header>
<text>Section 41, as amended by subsection (a), is amended by adding at the end the following new subsection:</text>
<quoted-block id="HF9CDA9E6E59E44A2A430C086EEC12640" style="OLC">
<subsection id="HE6CA5C909AEC43AD8895A25B2CEC2650">
<enum>(h)</enum>
<header>Treatment of credit for qualified small businesses</header>
<paragraph id="H4183EB10439040DE8AEADB09F5488206">
<enum>(1)</enum>
<header>In general</header>
<text>At the election of a qualified small business for any taxable year, section 3111(f) shall apply to the payroll tax credit portion of the credit otherwise determined under subsection (a) for the taxable year and such portion shall not be treated (other than for purposes of section 280C) as a credit determined under subsection (a).</text>
</paragraph>
<paragraph id="HFC1D49DAA01942FDA1552E7D426A9104">
<enum>(2)</enum>
<header>Payroll tax credit portion</header>
<text>For purposes of this subsection, the payroll tax credit portion of the credit determined under subsection (a) with respect to any qualified small business for any taxable year is the least of—</text>
<subparagraph id="HEC8CEAFA9CB14551A2298EDA83CEDEEC">
<enum>(A)</enum>
<text>the amount specified in the election made under this subsection,</text>
</subparagraph>
<subparagraph id="H385F42734B524CB6B6A65AB1B0B78B22">
<enum>(B)</enum>
<text>the credit determined under subsection (a) for the taxable year (determined before the application of this subsection), or</text>
</subparagraph>
<subparagraph id="H43A7884B452F403399AD09A8E2F7EA60">
<enum>(C)</enum>
<text>in the case of a qualified small business other than a partnership or S corporation, the amount of the business credit carryforward under section 39 carried from the taxable year (determined before the application of this subsection to the taxable year).</text>
</subparagraph>
</paragraph>
<paragraph id="H5912BD7CED1D4DAB92D95BAEA3FE43F0">
<enum>(3)</enum>
<header>Qualified small business</header>
<text>For purposes of this subsection—</text>
<subparagraph id="H456DEC9C5FD04E9F8553AB13C8C2DF42">
<enum>(A)</enum>
<header>In general</header>
<text>The term <term>qualified small business</term> means, with respect to any taxable year—</text>
<clause id="HB8BD0A04CF404EF1AB52EAFDE915591D">
<enum>(i)</enum>
<text>a corporation or partnership, if—</text>
<subclause id="H46F06AFFAD684E8C821B641C2D3161CA">
<enum>(I)</enum>
<text>the gross receipts (as determined under the rules of section 448(c)(3), without regard to subparagraph (A) thereof) of such entity for the taxable year is less than $5,000,000, and</text>
</subclause>
<subclause id="H0D409268420E4220A39E763F5CD8CA07">
<enum>(II)</enum>
<text>such entity did not have gross receipts (as so determined) for any taxable year preceding the 5-taxable-year period ending with such taxable year, and</text>
</subclause>
</clause>
<clause id="H7EFD2F881C5F4EBBADE70828C9D506DF">
<enum>(ii)</enum>
<text>any person (other than a corporation or partnership) who meets the requirements of subclauses (I) and (II) of clause (i), determined—</text>
<subclause id="HA625360E22C2437DB6F01E22E195FBF4">
<enum>(I)</enum>
<text>by substituting <quote>person</quote> for <quote>entity</quote> each place it appears, and</text>
</subclause>
<subclause id="HD0AAF81EFBCF48CEAA9C94577D16BEBE">
<enum>(II)</enum>
<text>by only taking into account the aggregate gross receipts received by such person in carrying on all trades or businesses of such person.</text>
</subclause>
</clause>
</subparagraph>
<subparagraph id="HCB2795F9430D4B9D80DAAC1F69BB3364">
<enum>(B)</enum>
<header>Limitation</header>
<text>Such term shall not include an organization which is exempt from taxation under section 501.</text>
</subparagraph>
</paragraph>
<paragraph id="HDF68D35D4CAF489D9D011580187FBB89">
<enum>(4)</enum>
<header>Election</header>
<subparagraph id="H55E92459845A4D06BC9243A9E1F6F4F3">
<enum>(A)</enum>
<header>In general</header>
<text>Any election under this subsection for any taxable year—</text>
<clause id="H959C5E4053584454A28393B89C8F7676">
<enum>(i)</enum>
<text>shall specify the amount of the credit to which such election applies,</text>
</clause>
<clause id="H012C44D2C27142D7ABC9604A0736A929">
<enum>(ii)</enum>
<text>shall be made on or before the due date (including extensions) of—</text>
<subclause id="H5702AB24F4CB4E21B613784546F474AC">
<enum>(I)</enum>
<text>in the case of a qualified small business which is a partnership, the return required to be filed under section 6031,</text>
</subclause>
<subclause id="HADC5F4D04C87468785D56F7AB1309DC9">
<enum>(II)</enum>
<text>in the case of a qualified small business which is an S corporation, the return required to be filed under section 6037, and</text>
</subclause>
<subclause id="H8C3881B5844143B5A0625F3AC14F8DE0">
<enum>(III)</enum>
<text>in the case of any other qualified small business, the return of tax for the taxable year, and</text>
</subclause>
</clause>
<clause id="H409D554F7C1E4872B1B7E47AE455F606">
<enum>(iii)</enum>
<text>may be revoked only with the consent of the Secretary.</text>
</clause>
</subparagraph>
<subparagraph id="H2ECA6D479B0A4F40875F500447C3165E">
<enum>(B)</enum>
<header>Limitations</header>
<clause id="HF48A091CBE4444748DB4084EB609876D">
<enum>(i)</enum>
<header>Amount</header>
<text>The amount specified in any election made under this subsection shall not exceed $250,000.</text>
</clause>
<clause id="H5911C50FA66546B38F132A63156622F3">
<enum>(ii)</enum>
<header>Number of taxable years</header>
<text>A person may not make an election under this subsection if such person (or any other person treated as a single taxpayer with such person under paragraph (5)(A)) has made an election under this subsection for 5 or more preceding taxable years.</text>
</clause>
</subparagraph>
<subparagraph id="HEC52E7116D6247A6924A3334D0717396">
<enum>(C)</enum>
<header>Special rule for partnerships and s corporations</header>
<text>In the case of a qualified small business which is a partnership or S corporation, the election made under this subsection shall be made at the entity level.</text>
</subparagraph>
</paragraph>
<paragraph id="H0A6A555E809A4958B074BBC9C9D0262D">
<enum>(5)</enum>
<header>Aggregation rules</header>
<subparagraph id="HEFBD3A5AEDEE415AAFD49D678ED0367B">
<enum>(A)</enum>
<header>In general</header>
<text>Except as provided in subparagraph (B), all persons or entities treated as a single taxpayer under subsection (f)(1) shall be treated as a single taxpayer for purposes of this subsection.</text>
</subparagraph>
<subparagraph id="HBE1FEC35AB1D45268E23A06554117FE4">
<enum>(B)</enum>
<header>Special rules</header>
<text>For purposes of this subsection and section 3111(f)—</text>
<clause id="H6FE64F4D1A334BBAB98884282FE3ED18">
<enum>(i)</enum>
<text>each of the persons treated as a single taxpayer under subparagraph (A) may separately make the election under paragraph (1) for any taxable year, and</text>
</clause>
<clause id="H0891B8F8C0C146CA9DC3EC5B88604245">
<enum>(ii)</enum>
<text>the $250,000 amount under paragraph (4)(B)(i) shall be allocated among all persons treated as a single taxpayer under subparagraph (A) in the same manner as under subparagraph (A)(ii) or (B)(ii) of subsection (f)(1), whichever is applicable.</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="H32BF17ACF0E24A4A8C0FCE4A8190CD5D">
<enum>(6)</enum>
<header>Regulations</header>
<text>The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including—</text>
<subparagraph id="H3E1B4EBCF23D493CB3BECC7252714164">
<enum>(A)</enum>
<text>regulations to prevent the avoidance of the purposes of the limitations and aggregation rules under this subsection through the use of successor companies or other means,</text>
</subparagraph>
<subparagraph id="H914C2F6902844780807C732427437CE1">
<enum>(B)</enum>
<text>regulations to minimize compliance and record-keeping burdens under this subsection, and</text>
</subparagraph>
<subparagraph id="H69D7C704662847709C0082DA8F0E32C6">
<enum>(C)</enum>
<text>regulations for recapturing the benefit of credits determined under section 3111(f) in cases where there is a subsequent adjustment to the payroll tax credit portion of the credit determined under subsection (a), including requiring amended income tax returns in the cases where there is such an adjustment.</text>
</subparagraph>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H884E898531824F58A1BF0ACC12659427">
<enum>(2)</enum>
<header>Credit allowed against FICA taxes</header>
<text>Section 3111 is amended by adding at the end the following new subsection:</text>
<quoted-block id="H6E5A614CEB7743D39C283385793A1248" style="OLC">
<subsection id="HBC0218AF4CF34F23A11DD6DE1F72C85A">
<enum>(f)</enum>
<header>Credit for research expenditures of qualified small businesses</header>
<paragraph id="H9A5C2590EA4646E8A64768676699AE6A">
<enum>(1)</enum>
<header>In general</header>
<text>In the case of a taxpayer who has made an election under section 41(h) for a taxable year, there shall be allowed as a credit against the tax imposed by subsection (a) for the first calendar quarter which begins after the date on which the taxpayer files the return specified in section 41(h)(4)(A)(ii) an amount equal to the payroll tax credit portion determined under section 41(h)(2).</text>
</paragraph>
<paragraph id="HC036AC1CDD6942D390A052DAF4EF6776">
<enum>(2)</enum>
<header>Limitation</header>
<text>The credit allowed by paragraph (1) shall not exceed the tax imposed by subsection (a) for any calendar quarter on the wages paid with respect to the employment of all individuals in the employ of the employer.</text>
</paragraph>
<paragraph id="H987C82B28B9B48BC812ED9F6756FAF8A">
<enum>(3)</enum>
<header>Carryover of unused credit</header>
<text>If the amount of the credit under paragraph (1) exceeds the limitation of paragraph (2) for any calendar quarter, such excess shall be carried to the succeeding calendar quarter and allowed as a credit under paragraph (1) for such quarter.</text>
</paragraph>
<paragraph id="HAD8AEC1ACEE245868DDA4F6299991376">
<enum>(4)</enum>
<header>Deduction allowed for credited amounts</header>
<text>The credit allowed under paragraph (1) shall not be taken into account for purposes of determining the amount of any deduction allowed under chapter 1 for taxes imposed under subsection (a).</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H195E18DE183B40FF8677A59E8A61045F">
<enum>(d)</enum>
<header>Effective dates</header>
<paragraph id="HEDA3163D8FD14877845D6F04619AB620">
<enum>(1)</enum>
<header>Extension</header>
<text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to shall apply to amounts paid or incurred after December 31, 2014.</text>
</paragraph>
<paragraph id="H7DEC018A731E4E0FA89DC1966B7E0D80">
<enum>(2)</enum>
<header>Credit allowed against alternative minimum tax in case of eligible small business</header>
<text>The amendments made by subsection (b) shall apply to credits determined for taxable years beginning after December 31, 2015.</text>
</paragraph>
<paragraph id="HC03FC69E24FF4F518A87CAF6D11FC4DB">
<enum>(3)</enum>
<header>Treatment of research credit for certain startup companies</header>
<text display-inline="yes-display-inline">The amendments made by subsection (c) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H228060CCE92C46FE9F320E03DC562FFD">
<enum>122.</enum>
<header>Extension and modification of employer wage credit for employees who are active duty members of the uniformed services</header>
<subsection id="HD8D6464A36F64C4DAF78AE9C378F8E84">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45P is amended by striking subsection (f).</text>
</subsection>
<subsection id="HD4CDC2992DE2488FBF447472C11C9925" commented="no" display-inline="no-display-inline">
<enum>(b)</enum>
<header>Applicability to all employers</header>
<paragraph id="H44A04FCCB1834FCABA3D553F95BE3E10" commented="no" display-inline="no-display-inline">
<enum>(1)</enum>
<header>In general</header>
<text>Section 45P(a) is amended by striking <quote>, in the case of an eligible small business employer</quote>.</text>
</paragraph>
<paragraph id="HCE64B045FAC1488A950C033EA49E5FAC" commented="no" display-inline="no-display-inline">
<enum>(2)</enum>
<header>Conforming amendment</header>
<text>Section 45P(b)(3) is amended to read as follows:</text>
<quoted-block style="OLC" act-name="" id="H97A44CC40F8544ED8C7E130F74009C9D">
<paragraph id="H2C61B6554C2144BA84DADD6A3CD84A78">
<enum>(3)</enum>
<header>Controlled groups</header>
<text>All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFD7DEA0550274E988EBBA388367BE3CE">
<enum>(c)</enum>
<header>Effective date</header>
<paragraph id="HD59692CEC29549C88F9311223DF9CBFE">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to payments made after December 31, 2014.</text>
</paragraph>
<paragraph id="HD8778380F759413D9F4C432D11BC9126">
<enum>(2)</enum>
<header>Modification</header>
<text>The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="HB7E6521CE4BF462CA96E49E74E8D65E4">
<enum>123.</enum>
<header>Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements</header>
<subsection id="H44D3C0FA29884994996B8A6BF3EEF729">
<enum>(a)</enum>
<header>Qualified leasehold improvement property and qualified restaurant property</header>
<text display-inline="yes-display-inline">Clauses (iv) and (v) of section 168(e)(3)(E) are each amended by striking <quote>placed in service before January 1, 2015</quote>.</text>
</subsection>
<subsection id="H81550FF190714AD6986C305EEE2FE5A7">
<enum>(b)</enum>
<header>Qualified retail improvement property</header>
<text>Section 168(e)(3)(E)(ix) is amended by striking <quote>placed in service after December 31, 2008, and before January 1, 2015</quote>. </text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE8D1371B3D1A4886B57B363923F604AC">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section id="H81CF8E225AE944519ED9DF1F5DB66971">
<enum>124.</enum>
<header>Extension and modification of increased expensing limitations and treatment of certain real property as section <enum-in-header>179</enum-in-header> property</header>
<subsection id="H67947FDF93554B83A3F8853B6F933B4E">
<enum>(a)</enum>
<header>Made permanent</header>
<paragraph id="H80768AAEE5544E5585181274DED0E048">
<enum>(1)</enum>
<header>Dollar limitation</header>
<text>Section 179(b)(1) is amended by striking <quote>shall not exceed—</quote> and all that follows and inserting <quote>shall not exceed $500,000.</quote>.</text>
</paragraph>
<paragraph id="H406ABC94793F449F92D5557D90909290">
<enum>(2)</enum>
<header>Reduction in limitation</header>
<text>Section 179(b)(2) is amended by striking <quote>exceeds—</quote> and all that follows and inserting <quote>exceeds $2,000,000.</quote>.</text>
</paragraph>
</subsection>
<subsection id="H68B1BEADA79B464C970A4214973B6D43">
<enum>(b)</enum>
<header>Computer software</header>
<text display-inline="yes-display-inline">Section 179(d)(1)(A)(ii) is amended by striking <quote>, to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2015</quote> and inserting <quote>and to which section 167 applies</quote>.</text>
</subsection>
<subsection id="HB6372F418B054DD9869790446F3DC81D">
<enum>(c)</enum>
<header>Special rules for treatment of qualified real property</header>
<paragraph id="H621F2C22C3E244E9B62EB57EA629BA4A">
<enum>(1)</enum>
<header>Extension for 2015</header>
<text>Section 179(f) is amended—</text>
<subparagraph id="H02B0D2715D1647BA81ADDC4B51C40D7F">
<enum>(A)</enum>
<text>by striking <quote>2015</quote> in paragraph (1) and inserting <quote>2016</quote>,</text>
</subparagraph>
<subparagraph id="H9E44E939281E4FAEA2733164965E7DA0">
<enum>(B)</enum>
<text>by striking <quote>2014</quote> each place it appears in paragraph (4) and inserting <quote>2015</quote>, and</text>
</subparagraph>
<subparagraph id="HA3F0D599B125493DA47AC79013C7CA87">
<enum>(C)</enum>
<text>by striking <quote><header-in-text level="subparagraph" style="OLC">and 2013</header-in-text></quote> in the heading of paragraph (4)(C) and inserting <quote><header-in-text level="subparagraph" style="OLC">2013, and 2014</header-in-text></quote>. </text>
</subparagraph>
</paragraph>
<paragraph id="H05B5A37D7AFE46859137FD8FE44517D7">
<enum>(2)</enum>
<header>Made permanent</header>
<text>Section 179(f), as amended by paragraph (1), is amended—</text>
<subparagraph id="HF59040DE5DFC4F13889545E4F25721B3">
<enum>(A)</enum>
<text>by striking <quote>beginning after 2009 and before 2016</quote> in paragraph (1), and</text>
</subparagraph>
<subparagraph id="HF2F9C37E4C16472EAD279659C4651132">
<enum>(B)</enum>
<text>by striking paragraphs (3) and (4).</text>
</subparagraph>
</paragraph>
</subsection>
<subsection id="H8334499959BF4FAEAF1130C59B79AC7A">
<enum>(d)</enum>
<header>Election</header>
<text>Section 179(c)(2) is amended—</text>
<paragraph id="HD1E625EF6C1A438B9C843C486A1F472C">
<enum>(1)</enum>
<text>by striking <quote>may not be revoked</quote> and all that follows through <quote>and before 2015</quote>, and</text>
</paragraph>
<paragraph id="H26D0C7FACC0F4ACCB1902E2FA9699492">
<enum>(2)</enum>
<text>by striking <quote><header-in-text level="paragraph" style="OLC">irrevocable</header-in-text></quote> in the heading thereof.</text>
</paragraph>
</subsection>
<subsection commented="no" id="HAFC60C617701477DA4DD01193F9FDF8F">
<enum>(e)</enum>
<header>Air conditioning and heating units</header>
<text>Section 179(d)(1) is amended by striking <quote>and shall not include air conditioning or heating units</quote>.</text>
</subsection>
<subsection id="HBD6A0C65A15E4641A669F3C11746859D">
<enum>(f)</enum>
<header>Inflation adjustment</header>
<text>Section 179(b) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H45AA0ACBE9A34D46B403AF7E41235669" style="OLC">
<paragraph id="HB462323BBFED4C5D95F15EF78060EF84">
<enum>(6)</enum>
<header>Inflation adjustment</header>
<subparagraph id="H0B600EABC20242E08B5705742F29EEF4">
<enum>(A)</enum>
<header>In general</header>
<text>In the case of any taxable year beginning after 2015, the dollar amounts in paragraphs (1) and (2) shall each be increased by an amount equal to—</text>
<clause id="HC8528C0E555C4ECA94A146E5D39E850C">
<enum>(i)</enum>
<text>such dollar amount, multiplied by</text>
</clause>
<clause id="H8ACE6544602F406486B8725D8CABB253">
<enum>(ii)</enum>
<text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2014</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</clause>
</subparagraph>
<subparagraph id="H2DDEC6FE793F439D870038D3A97CCED6">
<enum>(B)</enum>
<header>Rounding</header>
<text display-inline="yes-display-inline">The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HE28B77AAE0CA41C09255C2F4018938D8">
<enum>(g)</enum>
<header>Effective dates</header>
<paragraph id="H2EB18C315D0E4913A1F6C870954A13F2">
<enum>(1)</enum>
<header>Extension</header>
<text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</paragraph>
<paragraph id="H7B54071F63F8401290319A282B150AF4">
<enum>(2)</enum>
<header>Modifications</header>
<text>The amendments made by subsections (c)(2) and (e) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H384F0CEBFC1B47DDA762EDB8141D8AB0">
<enum>125.</enum>
<header>Extension of treatment of certain dividends of regulated investment companies</header>
<subsection id="H040F993E50B64BB1A56298267BDF068E">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 871(k) is amended by striking clause (v) of paragraph (1)(C) and clause (v) of paragraph (2)(C).</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H37619FE04465400B9494DF92C30313A7">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section id="H4FC8FEE75D9D4DFC83250A75A8DB706E">
<enum>126.</enum>
<header>Extension of exclusion of 100 percent of gain on certain small business stock</header>
<subsection id="H5D5D93FE8D8B4AF7BC3B928577B374E2">
<enum>(a)</enum>
<header>In general</header>
<text>Section 1202(a)(4) is amended—</text>
<paragraph id="H82469CED25414E9280AC4ADD9DFF5F66">
<enum>(1)</enum>
<text>by striking <quote>and before January 1, 2015</quote>, and</text>
</paragraph>
<paragraph id="HDB5F0706DB36461F9CAD57C665A810D4">
<enum>(2)</enum>
<text>by striking <quote><header-in-text level="paragraph" style="OLC">, 2011, 2012, 2013, and 2014</header-in-text></quote> in the heading thereof and inserting <quote><header-in-text level="paragraph" style="OLC">and thereafter</header-in-text></quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" id="HB52FD0952835447FA844E863652AD017">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to stock acquired after December 31, 2014.</text>
</subsection>
</section>
<section id="H3E2595AD1F274F999255873F3AF15FC1">
<enum>127.</enum>
<header>Extension of reduction in S-corporation recognition period for built-in gains tax</header>
<subsection id="HABDFEC663198413F9664843D07A911BB">
<enum>(a)</enum>
<header>In general</header>
<text>Section 1374(d)(7) is amended to read as follows:</text>
<quoted-block id="H4D1A0A5E6E804E489FB66EBC41FF264A" style="OLC">
<paragraph id="H0EDE66F745404D3E9683A70939D48B32">
<enum>(7)</enum>
<header>Recognition period</header>
<subparagraph id="H9B0B8BEACC5840A08A7B9DD78920A8E0">
<enum>(A)</enum>
<header>In general</header>
<text>The term <term>recognition period</term> means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase <quote>5-year</quote>.</text>
</subparagraph>
<subparagraph id="H344EACDEF79B45799EF87339A58B2568">
<enum>(B)</enum>
<header>Installment sales</header>
<text>If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HED96B14DFA5E45E1992720D3824BB0E4">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section id="H2FF2CEAF4EFA4933BD6960D1C8EFF25D">
<enum>128.</enum>
<header>Extension of subpart F exception for active financing income</header>
<subsection id="H1088D6B4D5B140D2B197C592A5E1CFEF">
<enum>(a)</enum>
<header>Insurance businesses</header>
<text>Section 953(e) is amended by striking paragraph (10) and by redesignating paragraph (11) as paragraph (10).</text>
</subsection>
<subsection id="HC7168ECBF9A24072BBE2329E0846600C">
<enum>(b)</enum>
<header>Banking, financing, or similar businesses</header>
<text>Section 954(h) is amended by striking paragraph (9).</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HD5BCE3571A20495FB231EF8B5AC42EF2">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders with or within which any such taxable year of such foreign corporation ends.</text>
</subsection>
</section>
</part>
<part id="HE70B64D4F97C4AE3B8B2B83AC4895A8C">
<enum>4</enum>
<header>Incentives for real estate investment</header>
<section commented="no" id="H60F121AD1848493D82D9E2D5FFC28DB1">
<enum>131.</enum>
<header>Extension of minimum low-income housing tax credit rate for non-Federally subsidized buildings</header>
<subsection id="H6DF09C9CFF5348FC96E98BDE959F19D3">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 42(b)(2) is amended by striking <quote>with respect to housing credit dollar amount allocations made before January 1, 2015</quote>.</text>
</subsection>
<subsection id="H256DCDDA773C4C059783C7C825D96AEB">
<enum>(b)</enum>
<header>Clerical amendment</header>
<text>The heading for section 42(b)(2) is amended by striking <quote><header-in-text level="paragraph" style="OLC">Temporary minimum</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Minimum</header-in-text></quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H985799F7124B4812B8F7EC2EAF10135A">
<enum>(c)</enum>
<header>Effective dates</header>
<text display-inline="yes-display-inline">The amendments made by this section shall take effect on January 1, 2015.</text>
</subsection>
</section>
<section id="HB6CE9AC7132B4B76A0B0E1AB0180BF24">
<enum>132.</enum>
<header>Extension of military housing allowance exclusion for determining whether a tenant in certain counties is low-income</header>
<subsection id="H83538462A3A242A18EF03E34CCBCC761">
<enum>(a)</enum>
<header>In general</header>
<text>Section 3005(b) of the Housing Assistance Tax Act of 2008 is amended by striking <quote>and before January 1, 2015</quote> each place it appears.</text>
</subsection>
<subsection id="H146198A77F0647F9B3BB31F957492B56">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall take effect as if included in the enactment of section 3005 of the Housing Assistance Tax Act of 2008.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HFD77A759133145259144ED92B2EEABD9">
<enum>133.</enum>
<header>Extension of RIC qualified investment entity treatment under FIRPTA</header>
<subsection id="H41F42C8EF8E545B09FDAEF4DBCBB58F1" commented="no">
<enum>(a)</enum>
<header>In general</header>
<text>Section 897(h)(4)(A) is amended—</text>
<paragraph id="HB121E6025A674E2DB2EDF37E1A2B7A5F" commented="no">
<enum>(1)</enum>
<text>by striking clause (ii), and</text>
</paragraph>
<paragraph id="HDECEC628CDDB4257995F45885EA04DC3" commented="no">
<enum>(2)</enum>
<text>by striking all that precedes <quote>regulated investment company which</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H663890B34C434B268BF15E2AC2F312CA" display-inline="no-display-inline">
<subparagraph id="HB9A96527C55A4EE38A46D98DAA42E004" commented="no">
<enum>(A)</enum>
<header>Qualified investment entity</header>
<text display-inline="yes-display-inline">The term <term>qualified investment entity</term> means—</text>
<clause id="HDB59213EBD3849E59769B8700259B403">
<enum>(i)</enum>
<text>any real estate investment trust, and</text>
</clause>
<clause id="H8F65BB52F7994890BBE4EEEDB63DFDD7">
<enum>(ii)</enum>
<text>any</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H42DB0C5F5EFA4EEF9FBD3C403014F7AD">
<enum>(b)</enum>
<header>Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H496BEAE41B53419089FBF286901020CC">
<enum>(1)</enum>
<header>In general</header>
<text>The amendments made by this section shall take effect on January 1, 2015. Notwithstanding the preceding sentence, such amendments 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.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC79679DE1DC14869B9C9B16A64EC5D2F">
<enum>(2)</enum>
<header>Amounts withheld on or before date of enactment</header>
<text>In the case of a regulated investment company—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H96536971B4D346A59A7D78FC3B0EA128">
<enum>(A)</enum>
<text>which makes a distribution after December 31, 2014, and before the date of the enactment of this Act, and</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H91D9A51B34A3454DA9A655E8DDD3A383">
<enum>(B)</enum>
<text>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,</text>
</subparagraph>
<continuation-text continuation-text-level="paragraph">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.</continuation-text>
</paragraph>
</subsection>
</section>
</part>
</subtitle>
<subtitle id="HF48E3C4F4C944B1DBC31B33FECF532C8">
<enum>B</enum>
<header>Extensions through 2019</header>
<section id="H0D674D4A9074488FA509B099B40947DC">
<enum>141.</enum>
<header>Extension of new markets tax credit</header>
<subsection id="H0316AEA9312A4784A58E77D86E9E6063">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45D(f)(1)(G) is amended by striking <quote>for 2010, 2011, 2012, 2013, and 2014</quote> and inserting <quote>for each of calendar years 2010 through 2019</quote>.</text>
</subsection>
<subsection id="H32E2FB5AF6394B5EA697E1DF41B9CCD6">
<enum>(b)</enum>
<header>Carryover of unused limitation</header>
<text>Section 45D(f)(3) is amended by striking <quote>2019</quote> and inserting <quote>2024</quote>.</text>
</subsection>
<subsection id="HFADAEBBB1014432BA21AAB424CE6076B">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to calendar years beginning after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HADE787D037E645E28F6007C33CD45DF5">
<enum>142.</enum>
<header>Extension and modification of work opportunity tax credit</header>
<subsection commented="no" display-inline="no-display-inline" id="HF406D06F19EF43CA9AD11576A8246EF1">
<enum>(a)</enum>
<header>In general</header>
<text>Section 51(c)(4) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2019</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE17BC38B116A45C8B504C6CAAA44BAA2">
<enum>(b)</enum>
<header>Credit for hiring long-term unemployment recipients</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBA6DB1EB0F2D4BAEA092FF573609DFB3">
<enum>(1)</enum>
<header>In general</header>
<text>Section 51(d)(1) is amended by striking <quote>or</quote> at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block act-name="" id="H3E9E8F4A8DF145C48F41B00C309D8C7F" style="OLC">
<subparagraph id="H8A386C88673C426EB18B2736E181FA3F">
<enum>(J)</enum>
<text>a qualified long-term unemployment recipient.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF6514EF0A8DC461C8BF9B363F362406F">
<enum>(2)</enum>
<header>Qualified long-term unemployment recipient</header>
<text>Section 51(d) is amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="" id="HEB6BE91542D848C38581AC25D61BC5A8" style="OLC">
<paragraph id="H2D824CA373CB4516BB96DCDC99FF904A">
<enum>(15)</enum>
<header>Qualified long-term unemployment recipient</header>
<text>The term <term>qualified long-term unemployment recipient</term> means any individual who is certified by the designated local agency as being in a period of unemployment which—</text>
<subparagraph id="H846ECF733A3440EDB5BC6207EC76E0E7">
<enum>(A)</enum>
<text>is not less than 27 consecutive weeks, and</text>
</subparagraph>
<subparagraph id="H1FDF87EAC89840C1BEB713D8A4BDC615">
<enum>(B)</enum>
<text>includes a period in which the individual was receiving unemployment compensation under State or Federal law.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H62AD90FBE21840CC8964BD8A4FBB5379">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="HBC8C2C8F42A8419D8969D7EFE7DE5CD1">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to individuals who begin work for the employer after December 31, 2014.</text>
</paragraph>
<paragraph id="H4BC9333B175E47349D47D18A67E10EE9">
<enum>(2)</enum>
<header>Modification</header>
<text>The amendments made by subsection (b) shall apply to individuals who begin work for the employer after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="HFFC32625DE544E869E728BF681AFCBCF" section-type="subsequent-section" commented="no">
<enum>143.</enum>
<header>Extension and modification of bonus depreciation</header>
<subsection id="H201F5F5D6BCF4925A7F3F25CB23E9DF7" commented="no">
<enum>(a)</enum>
<header>Extended for <enum-in-header>2015</enum-in-header></header>
<paragraph id="H23EE718DD7E74A43B505962F999C769F" commented="no">
<enum>(1)</enum>
<header>In general</header>
<text>Section 168(k)(2) is amended—</text>
<subparagraph id="H8A88D2A371964724A7C829E265DB049A" commented="no">
<enum>(A)</enum>
<text>by striking <quote>January 1, 2016</quote> in subparagraph (A)(iv) and inserting <quote>January 1, 2017</quote>, and</text>
</subparagraph>
<subparagraph id="HCCDCD8925C1A473A9342BFC6C0B0A9D6" commented="no">
<enum>(B)</enum>
<text>by striking <quote>January 1, 2015</quote> each place it appears and inserting <quote>January 1, 2016</quote>.</text>
</subparagraph>
</paragraph>
<paragraph id="H467AB342339E418DBF569A894A7CC63C" commented="no">
<enum>(2)</enum>
<header>Special rule for Federal long-term contracts</header>
<text>Section 460(c)(6)(B)(ii) is amended by striking <quote>January 1, 2015 (January 1, 2016</quote> and inserting <quote>January 1, 2016 (January 1, 2017</quote>.</text>
</paragraph>
<paragraph id="HCED7C3CB31FC441580BB3A91AA86210A" commented="no" display-inline="no-display-inline">
<enum>(3)</enum>
<header>Extension of election to accelerate AMT credit in lieu of bonus depreciation</header>
<subparagraph id="H7B198236896445C8B54DB7D91FBC9A7E" commented="no" display-inline="no-display-inline">
<enum>(A)</enum>
<header>In general</header>
<text>Section 168(k)(4)(D)(iii)(II) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2016</quote>.</text>
</subparagraph>
<subparagraph id="H7B685A0DCBEE4D07AA7460F03AD766D2" commented="no" display-inline="no-display-inline">
<enum>(B)</enum>
<header>Round 5 extension property</header>
<text>Section 168(k)(4) is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HB2A2D436C2624A0EA31E8BB69049693B" style="OLC">
<subparagraph commented="no" id="H4F33963F9B084C5BA87C9E7995D3E2C2">
<enum>(L)</enum>
<header>Special rules for round 5 extension property</header>
<clause commented="no" id="H59870F60984A40D98D185ADA7A7B31F3">
<enum>(i)</enum>
<header>In general</header>
<text>In the case of round 5 extension property, in applying this paragraph to any taxpayer—</text>
<subclause commented="no" id="HB3F0BA7DC1624A45AB702249443DF1DA">
<enum>(I)</enum>
<text>the limitation described in subparagraph (B)(i) and the business credit increase amount under subparagraph (E)(iii) thereof shall not apply, and</text>
</subclause>
<subclause commented="no" id="H6FD85C65543343CA842C824AD4A9AA66">
<enum>(II)</enum>
<text>the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed separately from amounts computed with respect to eligible qualified property which is not round 5 extension property.</text>
</subclause>
</clause>
<clause commented="no" id="HF9FB2A1794964D919699BB317806A176">
<enum>(ii)</enum>
<header>Election</header>
<subclause commented="no" id="HA2B0C97A8F7A48A4BD8965041EE17E60">
<enum>(I)</enum>
<text>A taxpayer who has an election in effect under this paragraph for round 4 extension property shall be treated as having an election in effect for round 5 extension property unless the taxpayer elects to not have this paragraph apply to round 5 extension property.</text>
</subclause>
<subclause commented="no" id="H76E32D4ADF234D1EB23F6A6D629D826F">
<enum>(II)</enum>
<text>A taxpayer who does not have an election in effect under this paragraph for round 4 extension property may elect to have this paragraph apply to round 5 extension property.</text>
</subclause>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H45CB96706BF24381BC00958675CA0D21">
<enum>(iii)</enum>
<header>Round 5 extension property</header>
<text>For purposes of this subparagraph, the term <term>round 5 extension property</term> means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 143(a)(1) of the <short-title /><short-title>Protecting Americans from Tax Hikes Act of 2015</short-title> (and the application of such extension to this paragraph pursuant to the amendment made by section 143(a)(3) of such Act).</text>
</clause>
</subparagraph>
<after-quoted-block>. </after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph id="H176604481BBD4F068195B9EF4829FBA8" commented="no">
<enum>(4)</enum>
<header>Conforming amendments</header>
<subparagraph id="H62AAC796849B4F0E817909EA94B1D998" commented="no">
<enum>(A)</enum>
<text>The heading for section 168(k) is amended by striking <quote><header-in-text level="subsection" style="OLC">January 1, 2015</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">January 1, 2016</header-in-text></quote>.</text>
</subparagraph>
<subparagraph id="H27D29D1128A94A389C349347137F3616" commented="no">
<enum>(B)</enum>
<text>The heading for section 168(k)(2)(B)(ii) is amended by striking <quote><header-in-text level="clause" style="OLC">pre-January 1, 2015</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">pre-January 1, 2016</header-in-text></quote>.</text>
</subparagraph>
</paragraph>
<paragraph id="H9494CAEBD9F04E37A53DBC0E93F0A1EE" commented="no" display-inline="no-display-inline">
<enum>(5)</enum>
<header>Effective date</header>
<subparagraph id="H97293A4C375142CE81B99675A130945A" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>Except as provided in subparagraph (B), the amendments made by this subsection shall apply to property placed in service after December 31, 2014, in taxable years ending after such date.</text>
</subparagraph>
<subparagraph id="H9E1D2589EE254683A543736DAEE65E9B" commented="no">
<enum>(B)</enum>
<header>Election to accelerate AMT credit</header>
<text>The amendments made by paragraph (3) shall apply to taxable years ending after December 31, 2014.</text>
</subparagraph>
</paragraph>
</subsection>
<subsection id="HEDD4A67DB0434AD995C02CF1826CB2CC" commented="no">
<enum>(b)</enum>
<header>Extended and modified for <enum-in-header>2016</enum-in-header> through <enum-in-header>2019</enum-in-header></header>
<paragraph id="HE0EB305CC4734A7B8AA0137F711ABD16" commented="no" display-inline="no-display-inline">
<enum>(1)</enum>
<header>In general</header>
<text>Section 168(k)(2), as amended by subsection (a), is amended to read as follows:</text>
<quoted-block style="OLC" id="H390CBBC7DB9D43F1958CC9B7D72B4931">
<paragraph id="HC3315BB63A0043DC8A5C2B85DF643EC9" commented="no">
<enum>(2)</enum>
<header>Qualified property</header>
<text>For purposes of this subsection—</text>
<subparagraph id="HC96706CB02EC4A4A897D698C80107E85" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>The term <term>qualified property</term> means property—</text>
<clause id="H379396209FEB4203A5A72ECD1BFB0F9E" commented="no">
<enum>(i)</enum>
<subclause id="HDF20E2E149724416935E4315961227CB" commented="no" display-inline="yes-display-inline">
<enum>(I)</enum>
<text>to which this section applies which has a recovery period of 20 years or less,</text>
</subclause>
<subclause id="HCFA0C696F6E04BB6824CA1B019AADFFE" indent="up1" commented="no">
<enum>(II)</enum>
<text>which is computer software (as defined in section 167(f)(1)(B)) for which a deduction is allowable under section 167(a) without regard to this subsection,</text>
</subclause>
<subclause id="H5761AE14BF53412AA4A027CDA2B854F5" indent="up1" commented="no">
<enum>(III)</enum>
<text>which is water utility property, or</text>
</subclause>
<subclause id="H8C57690B11D34DAC8FDCE6CDC093436E" indent="up1" commented="no">
<enum>(IV)</enum>
<text>which is qualified improvement property, </text>
</subclause>
</clause>
<clause id="H206EFA5305B44A0CA8E93412E915E95A" commented="no">
<enum>(ii)</enum>
<text>the original use of which commences with the taxpayer, and</text>
</clause>
<clause id="H4F9E7EC363F94720BD3301E55FFCBAC9" commented="no">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">which is placed in service by the taxpayer before January 1, 2020.</text>
</clause>
</subparagraph>
<subparagraph id="H0AB952722B244A52BA787C9149A4012E" commented="no">
<enum>(B)</enum>
<header>Certain property having longer production periods treated as qualified property</header>
<clause id="H63196259811849698F5DCCC8C5CC7668" commented="no">
<enum>(i)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">The term <term>qualified property</term> includes any property if such property—</text>
<subclause id="HED9FC0AA3695479EAE153D1021627B0E" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">meets the requirements of clauses (i) and (ii) of subparagraph (A),</text>
</subclause>
<subclause id="H10F613F04D024614B27CD515EA24DB90" commented="no">
<enum>(II)</enum>
<text>is placed in service by the taxpayer before January 1, 2021,</text>
</subclause>
<subclause id="H2F1CFD8D217E4812B4A1E69192BCF189" commented="no">
<enum>(III)</enum>
<text display-inline="yes-display-inline">is acquired by the taxpayer (or acquired pursuant to a written contract entered into) before January 1, 2020,</text>
</subclause>
<subclause id="H39D2979BC3C84710983E2095A2994D8F" commented="no">
<enum>(IV)</enum>
<text display-inline="yes-display-inline">has a recovery period of at least 10 years or is transportation property,</text>
</subclause>
<subclause id="H240FD8A1088947269AAA2E4603A48095" commented="no">
<enum>(V)</enum>
<text display-inline="yes-display-inline">is subject to section 263A, and</text>
</subclause>
<subclause id="H72B91BDFF41047ADAA6CBDB5954887F6" commented="no">
<enum>(VI)</enum>
<text display-inline="yes-display-inline">meets the requirements of clause (iii) of section 263A(f)(1)(B) (determined as if such clause also applies to property which has a long useful life (within the meaning of section 263A(f))).</text>
</subclause>
</clause>
<clause id="HDC51FD1C442140F9A0CD7AF608E8AEFA" commented="no">
<enum>(ii)</enum>
<header>Only pre-January 1, 2020 basis eligible for additional allowance</header>
<text display-inline="yes-display-inline">In the case of property which is qualified property solely by reason of clause (i), paragraph (1) shall apply only to the extent of the adjusted basis thereof attributable to manufacture, construction, or production before January 1, 2020.</text>
</clause>
<clause id="HF832B5D94E01416582B2D17ECDE79456" commented="no">
<enum>(iii)</enum>
<header>Transportation property</header>
<text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>transportation property</term> means tangible personal property used in the trade or business of transporting persons or property.</text>
</clause>
<clause id="H66926BDFB8704332AB8C06054E4991E5" commented="no">
<enum>(iv)</enum>
<header>Application of subparagraph</header>
<text display-inline="yes-display-inline">This subparagraph shall not apply to any property which is described in subparagraph (C).</text>
</clause>
</subparagraph>
<subparagraph id="H792B8DA02C484AF79747CFF68864E83A" commented="no">
<enum>(C)</enum>
<header>Certain aircraft</header>
<text display-inline="yes-display-inline">The term <term>qualified property</term> includes property—</text>
<clause id="HC8566064A0B74700A915F8A5C5DC03A3" commented="no">
<enum>(i)</enum>
<text display-inline="yes-display-inline">which meets the requirements of subparagraph (A)(ii) and subclauses (II) and (III) of subparagraph (B)(i),</text>
</clause>
<clause id="H688496C672334E5198F564137A92792F" commented="no">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">which is an aircraft which is not a transportation property (as defined in subparagraph (B)(iii)) other than for agricultural or firefighting purposes,</text>
</clause>
<clause id="H5B2320998C99473786F9046F070214DF" commented="no">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">which is purchased and on which such purchaser, at the time of the contract for purchase, has made a nonrefundable deposit of the lesser of—</text>
<subclause id="HE3445B181BA64820912CD096D0D7B438" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">10 percent of the cost, or</text>
</subclause>
<subclause id="HBBE79CD2C7654FCE9C3C21883B33F0A0" commented="no">
<enum>(II)</enum>
<text display-inline="yes-display-inline">$100,000, and</text>
</subclause>
</clause>
<clause id="H2FB625CF325F4A3390CC99D0D25EFA39" commented="no">
<enum>(iv)</enum>
<text display-inline="yes-display-inline">which has—</text>
<subclause id="HF30DDD3EBBF841D6BF723E9AD0F8A537" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">an estimated production period exceeding 4 months, and</text>
</subclause>
<subclause id="H9BD8021B8054498CAE3FABAC047701AF" commented="no">
<enum>(II)</enum>
<text display-inline="yes-display-inline">a cost exceeding $200,000.</text>
</subclause>
</clause>
</subparagraph>
<subparagraph id="HECEA9DE499384827B66EF80C60D45FAE" commented="no">
<enum>(D)</enum>
<header>Exception for alternative depreciation property</header>
<text>The term <term>qualified property</term> shall not include any property to which the alternative depreciation system under subsection (g) applies, determined—</text>
<clause id="H96092BBB28734ADB8C6B146486C446C1" commented="no">
<enum>(i)</enum>
<text>without regard to paragraph (7) of subsection (g) (relating to election to have system apply), and</text>
</clause>
<clause id="H94B3D7B4A4414836BBFB171A5B903492" commented="no">
<enum>(ii)</enum>
<text>after application of section 280F(b) (relating to listed property with limited business use).</text>
</clause>
</subparagraph>
<subparagraph id="HF6D334BD86E24A918E0503D2A5379009" commented="no">
<enum>(E)</enum>
<header>Special rules</header>
<clause id="HE9786BB507424C96B834EDE88E8D6F68" commented="no">
<enum>(i)</enum>
<header>Self-constructed property</header>
<text>In the case of a taxpayer manufacturing, constructing, or producing property for the taxpayer’s own use, the requirements of subclause (III) of subparagraph (B)(i) shall be treated as met if the taxpayer begins manufacturing, constructing, or producing the property before January 1, 2020.</text>
</clause>
<clause id="HB57B8C8DA79143A295C9741D61E760B5" commented="no">
<enum>(ii)</enum>
<header>Sale-leasebacks</header>
<text>For purposes of clause (iii) and subparagraph (A)(ii), if property is—</text>
<subclause id="HC464398B653843BFBEDD42AB768705FE" commented="no">
<enum>(I)</enum>
<text>originally placed in service by a person, and</text>
</subclause>
<subclause id="H5CC081514E724CACB95A657694F85295" commented="no">
<enum>(II)</enum>
<text>sold and leased back by such person within 3 months after the date such property was originally placed in service,</text>
</subclause>
<continuation-text commented="no" continuation-text-level="clause">such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in subclause (II).</continuation-text>
</clause>
<clause id="H0AB2C551DCD74CFFA4B0E76B2ACDB1E1" commented="no">
<enum>(iii)</enum>
<header>Syndication</header>
<text>For purposes of subparagraph (A)(ii), if—</text>
<subclause id="HA79EC009DDDB4211B9635280EB1D2A6F" commented="no">
<enum>(I)</enum>
<text>property is originally placed in service by the lessor of such property,</text>
</subclause>
<subclause id="HF7DE584A50A64682B073EDDA1CE132F8" commented="no">
<enum>(II)</enum>
<text>such property is sold by such lessor or any subsequent purchaser within 3 months after the date such property was originally placed in service (or, in the case of multiple units of property subject to the same lease, within 3 months after the date the final unit is placed in service, so long as the period between the time the first unit is placed in service and the time the last unit is placed in service does not exceed 12 months), and</text>
</subclause>
<subclause id="HCD3BB3BB622E49089773118D49210B5F" commented="no">
<enum>(III)</enum>
<text>the user of such property after the last sale during such 3-month period remains the same as when such property was originally placed in service,</text>
</subclause>
<continuation-text commented="no" continuation-text-level="clause">such property shall be treated as originally placed in service not earlier than the date of such last sale.</continuation-text>
</clause>
</subparagraph>
<subparagraph id="H268AE2EA04954DF596619381EBF33A76" commented="no">
<enum>(F)</enum>
<header>Coordination with section 280F</header>
<text>For purposes of section 280F—</text>
<clause id="HB8E3276FE0E64FE2A332DB9B1FB77D9F" commented="no">
<enum>(i)</enum>
<header>Automobiles</header>
<text>In the case of a passenger automobile (as defined in section 280F(d)(5)) which is qualified property, the Secretary shall increase the limitation under section 280F(a)(1)(A)(i) by $8,000.</text>
</clause>
<clause id="H55883EC94F6245DCBCD1C7B15BE45FC9" commented="no">
<enum>(ii)</enum>
<header>Listed property</header>
<text>The deduction allowable under paragraph (1) shall be taken into account in computing any recapture amount under section 280F(b)(2).</text>
</clause>
<clause id="H0F650AC4F8F34FBB9906B41D0CBD0FD1" commented="no">
<enum>(iii)</enum>
<header>Phase down</header>
<text display-inline="yes-display-inline">In the case of a passenger automobile placed in service by the taxpayer after December 31, 2017, clause (i) shall be applied by substituting for <quote>$8,000</quote>—</text>
<subclause id="HBCD20EF9C739499FA5AF5B6432AA3AD9" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">in the case of an automobile placed in service during 2018, $6,400, and</text>
</subclause>
<subclause id="H15AEA7C8C6134FBEBD56CA8DD9070F55" commented="no">
<enum>(II)</enum>
<text>in the case of an automobile placed in service during 2019, $4,800.</text>
</subclause>
</clause>
</subparagraph>
<subparagraph id="HED055A9C94E8408F9B9943092FE20895" commented="no">
<enum>(G)</enum>
<header>Deduction allowed in computing minimum tax</header>
<text>For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified property shall be determined without regard to any adjustment under section 56.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H634D84A6050B46179D4F9C1817E4B2D5" commented="no">
<enum>(2)</enum>
<header>Qualified improvement property</header>
<text>Section 168(k)(3) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1D7BC944FFF44B809A745A0A50FB6C68" style="OLC">
<paragraph id="H4580768C4F11460BBFE1DC62E45A0C62" commented="no">
<enum>(3)</enum>
<header>Qualified improvement property</header>
<text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph id="H447B0DA9FD254074B71DC660C34C9146" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>The term <term>qualified improvement property</term> means any improvement to an interior portion of a building which is nonresidential real property if such improvement is placed in service after the date such building was first placed in service.</text>
</subparagraph>
<subparagraph id="HF005057852224C138480CCD151FE96CA" commented="no">
<enum>(B)</enum>
<header>Certain improvements not included</header>
<text>Such term shall not include any improvement for which the expenditure is attributable to—</text>
<clause id="H478A3FA90C374B50941F146CCFC0BB49" commented="no">
<enum>(i)</enum>
<text>the enlargement of the building,</text>
</clause>
<clause id="HE03820B053DC4E67869EA52733C2D08E" commented="no">
<enum>(ii)</enum>
<text>any elevator or escalator, or</text>
</clause>
<clause id="H67A309E5412A4C9F910783EF772B6770" commented="no">
<enum>(iii)</enum>
<text>the internal structural framework of the building.</text>
</clause>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HA41954975F954AF9839EC604BA154AB7" commented="no">
<enum>(3)</enum>
<header>Expansion of election to accelerate AMT credits in lieu of bonus depreciation</header>
<text display-inline="yes-display-inline">Section 168(k)(4), as amended by subsection (a), is amended to read as follows:</text>
<quoted-block id="HFDC566DA948948E7BA41DF6B8A56BE50" style="OLC">
<paragraph id="H395B3DC81A384C1BABD04111187EC754" commented="no">
<enum>(4)</enum>
<header>Election to accelerate amt credits in lieu of bonus depreciation</header>
<subparagraph id="H20221B7B87684C4BA0C541D3EA0AA532" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>If a corporation elects to have this paragraph apply for any taxable year—</text>
<clause id="HC631BE029A0A44D595DB77F7BBB5813E" commented="no">
<enum>(i)</enum>
<text>paragraphs (1) and (2)(F) shall not apply to any qualified property placed in service during such taxable year,</text>
</clause>
<clause id="HFF056BDACC064B079DABAF6EBD7D1B7A" commented="no">
<enum>(ii)</enum>
<text>the applicable depreciation method used under this section with respect to such property shall be the straight line method, and</text>
</clause>
<clause id="HC9D4611B953E431DA2C7481D51139EB4" commented="no">
<enum>(iii)</enum>
<text>the limitation imposed by section 53(c) for such taxable year shall be increased by the bonus depreciation amount which is determined for such taxable year under subparagraph (B).</text>
</clause>
</subparagraph>
<subparagraph id="H8554ADECA2024D30B6F167255BF636CD" commented="no">
<enum>(B)</enum>
<header>Bonus depreciation amount</header>
<text>For purposes of this paragraph—</text>
<clause id="HE706D39E8BD74656A66BE74FD794CFA7" commented="no">
<enum>(i)</enum>
<header>In general</header>
<text>The bonus depreciation amount for any taxable year is an amount equal to 20 percent of the excess (if any) of—</text>
<subclause id="H397363FC791D4D8FA0F123F91CC3AD64" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph (1) applied to all such property (and, in the case of any such property which is a passenger automobile (as defined in section 280F(d)(5)), if paragraph (2)(F) applied to such automobile), over</text>
</subclause>
<subclause id="H9C5886DE6DB942B086358180910B6054" commented="no">
<enum>(II)</enum>
<text>the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraphs (1) and (2)(F) did not apply to any such property.</text>
</subclause>
<continuation-text continuation-text-level="clause" commented="no">The aggregate amounts determined under subclauses (I) and (II) shall be determined without regard to any election made under subparagraph (A) or subsection (b)(2)(D), (b)(3)(D), or (g)(7).</continuation-text>
</clause>
<clause id="H55981DEEFF99478D82ADC4F650EB5733" commented="no">
<enum>(ii)</enum>
<header>Limitation</header>
<text>The bonus depreciation amount for any taxable year shall not exceed the lesser of—</text>
<subclause id="H3910D0A288AD4AD48B98375F5FC3B1E3" commented="no">
<enum>(I)</enum>
<text>50 percent of the minimum tax credit under section 53(b) for the first taxable year ending after December 31, 2015, or</text>
</subclause>
<subclause id="HB5942038428E4396980FB46BADCE39FC" commented="no">
<enum>(II)</enum>
<text>the minimum tax credit under section 53(b) for such taxable year determined by taking into account only the adjusted net minimum tax for taxable years ending before January 1, 2016 (determined by treating credits as allowed on a first-in, first-out basis).</text>
</subclause>
</clause>
<clause id="H326ED3E3C7B64F64A9A47D1050C3815D" commented="no">
<enum>(iii)</enum>
<header>Aggregation rule</header>
<text>All corporations which are treated as a single employer under section 52(a) shall be treated—</text>
<subclause id="HD42C2DBBA3294BC4939679BF6F670C72" commented="no">
<enum>(I)</enum>
<text>as 1 taxpayer for purposes of this paragraph, and</text>
</subclause>
<subclause id="HF245C66980D6417D919BBBFBE34DE9E9" commented="no">
<enum>(II)</enum>
<text>as having elected the application of this paragraph if any such corporation so elects.</text>
</subclause>
</clause>
</subparagraph>
<subparagraph id="H9990ACB5EE51415DAE692C1DF93B2443" commented="no">
<enum>(C)</enum>
<header>Credit refundable</header>
<text>For purposes of section 6401(b), the aggregate increase in the credits allowable under part IV of subchapter A for any taxable year resulting from the application of this paragraph shall be treated as allowed under subpart C of such part (and not any other subpart).</text>
</subparagraph>
<subparagraph id="HB498FF225C354B93B3425098729485A7" commented="no">
<enum>(D)</enum>
<header>Other rules</header>
<clause id="H9BE7ED647F6B467D8F4502BA67758DA3" commented="no">
<enum>(i)</enum>
<header>Election</header>
<text>Any election under this paragraph may be revoked only with the consent of the Secretary.</text>
</clause>
<clause id="H94DFB95E0AB9425F96A7AB74A1796D8D" commented="no">
<enum>(ii)</enum>
<header>Partnerships with electing partners</header>
<text>In the case of a corporation which is a partner in a partnership and which makes an election under subparagraph (A) for the taxable year, for purposes of determining such corporation’s distributive share of partnership items under section 702 for such taxable year—</text>
<subclause id="H6908EA230EC74E46ABAC706B0581C6BC" commented="no">
<enum>(I)</enum>
<text>paragraphs (1) and (2)(F) shall not apply to any qualified property placed in service during such taxable year, and</text>
</subclause>
<subclause id="H41792D6D1D394D2CB178CC1C66CE8EAE" commented="no">
<enum>(II)</enum>
<text>the applicable depreciation method used under this section with respect to such property shall be the straight line method.</text>
</subclause>
</clause>
<clause id="HE4045CA346094E2683476E32B0671CCD" commented="no">
<enum>(iii)</enum>
<header>Certain partnerships</header>
<text>In the case of a partnership in which more than 50 percent of the capital and profits interests are owned (directly or indirectly) at all times during the taxable year by 1 corporation (or by corporations treated as 1 taxpayer under subparagraph (B)(iii)), each partner shall compute its bonus depreciation amount under clause (i) of subparagraph (B) by taking into account its distributive share of the amounts determined by the partnership under subclauses (I) and (II) of such clause for the taxable year of the partnership ending with or within the taxable year of the partner.</text>
</clause>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H3797DBD07C90495489F5830A8E123154" commented="no">
<enum>(4)</enum>
<header>Special rules for certain plants bearing fruits and nuts</header>
<text>Section 168(k) is amended—</text>
<subparagraph id="HDC61E7260EC64CFDBEBA0F641321F9D8" commented="no">
<enum>(A)</enum>
<text>by striking paragraph (5), and</text>
</subparagraph>
<subparagraph id="H32713E7C07C9406ABB097CEADBD580C1" commented="no">
<enum>(B)</enum>
<text>by inserting after paragraph (4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1F8899C3470845DCBC3969559DC07619" style="OLC">
<paragraph id="HF46D885E855F4FADBE76AA37E4B8770C" commented="no">
<enum>(5)</enum>
<header>Special rules for certain plants bearing fruits and nuts</header>
<subparagraph id="H85D9A73C07C7473595E006524731F0EF" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">In the case of any specified plant which is planted before January 1, 2020, or is grafted before such date to a plant that has already been planted, by the taxpayer in the ordinary course of the taxpayer’s farming business (as defined in section 263A(e)(4)) during a taxable year for which the taxpayer has elected the application of this paragraph—</text>
<clause id="H67105E700468427CB64AF6FD268A0BC7" commented="no">
<enum>(i)</enum>
<text>a depreciation deduction equal to 50 percent of the adjusted basis of such specified plant shall be allowed under section 167(a) for the taxable year in which such specified plant is so planted or grafted, and</text>
</clause>
<clause id="HC2384028691142DBA0B2DF7797AC50E3" commented="no">
<enum>(ii)</enum>
<text>the adjusted basis of such specified plant shall be reduced by the amount of such deduction.</text>
</clause>
</subparagraph>
<subparagraph id="H71A7E82D78864F94A39014F667AB1215" commented="no">
<enum>(B)</enum>
<header>Specified plant</header>
<text>For purposes of this paragraph, the term <term>specified plant</term> means—</text>
<clause id="HA6CE1D2B85644F038B87A31EA08DC8E5" commented="no">
<enum>(i)</enum>
<text>any tree or vine which bears fruits or nuts, and</text>
</clause>
<clause id="HE0FAE29BEC714260816A780FF1E837DF" commented="no">
<enum>(ii)</enum>
<text>any other plant which will have more than one yield of fruits or nuts and which generally has a pre-productive period of more than 2 years from the time of planting or grafting to the time at which such plant begins bearing fruits or nuts.</text>
</clause>
<continuation-text continuation-text-level="subparagraph" commented="no">Such term shall not include any property which is planted or grafted outside of the United States.</continuation-text>
</subparagraph>
<subparagraph id="H0692E8B790A3425E827AE8B615667BF5" commented="no">
<enum>(C)</enum>
<header>Election revocable only with consent</header>
<text>An election under this paragraph may be revoked only with the consent of the Secretary.</text>
</subparagraph>
<subparagraph id="HA89278623E6C412E89AA23B8A0778EA9" commented="no">
<enum>(D)</enum>
<header>Additional depreciation may be claimed only once</header>
<text>If this paragraph applies to any specified plant, such specified plant shall not be treated as qualified property in the taxable year in which placed in service.</text>
</subparagraph>
<subparagraph id="H2747659540A6462286C61ED6443FEC97" commented="no">
<enum>(E)</enum>
<header>Deduction allowed in computing minimum tax</header>
<text>Rules similar to the rules of paragraph (2)(G) shall apply for purposes of this paragraph.</text>
</subparagraph>
<subparagraph id="HB46F451A9C9348F6B297886D31638D8B" commented="no">
<enum>(F)</enum>
<header>Phase down</header>
<text display-inline="yes-display-inline">In the case of a specified plant which is planted after December 31, 2017 (or is grafted to a plant that has already been planted before such date), subparagraph (A)(i) shall be applied by substituting for <quote>50 percent</quote>—</text>
<clause id="H90C7B399746E40DEAAE07B8479B6AD99" commented="no">
<enum>(i)</enum>
<text>in the case of a plant which is planted (or so grafted) in 2018, <quote>40 percent</quote>, and</text>
</clause>
<clause id="H45D64A60D0DD41A5877E9C901476C1C9" commented="no">
<enum>(ii)</enum>
<text>in the case of a plant which is planted (or so grafted) during 2019, <quote>30 percent</quote>.</text>
</clause>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph id="HEE94C0656EFF4CD39ADA6D91A9E058EA" commented="no">
<enum>(5)</enum>
<header>Phase down of bonus depreciation</header>
<text>Section 168(k) is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HFFCE5802ACEF4E4ABFB337E5F229BD07" display-inline="no-display-inline">
<paragraph id="H5C7687B384B244D0A7F3913B6CD94D5D" commented="no">
<enum>(6)</enum>
<header>Phase down</header>
<text display-inline="yes-display-inline">In the case of qualified property placed in service by the taxpayer after December 31, 2017, paragraph (1)(A) shall be applied by substituting for <quote>50 percent</quote>—</text>
<subparagraph id="H32E2F3520ED149D98DBAB0A6B7CFE086" commented="no">
<enum>(A)</enum>
<text display-inline="yes-display-inline">in the case of property placed in service in 2018 (or in the case of property placed in service in 2019 and described in paragraph (2)(B) or (C) (determined by substituting <quote>2019</quote> for <quote>2020</quote> in paragraphs (2)(B)(i)(III) and (ii) and paragraph (2)(E)(i)), <quote>40 percent</quote>,</text>
</subparagraph>
<subparagraph id="HBF5BC5630BD14B419B1765DAFEEF59ED" commented="no">
<enum>(B)</enum>
<text display-inline="yes-display-inline">in the case of property placed in service in 2019 (or in the case of property placed in service in 2020 and described in paragraph (2)(B) or (C), <quote>30 percent</quote>.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HA5625E8789CE41628A9DAE549E092379" commented="no">
<enum>(6)</enum>
<header>Conforming amendments</header>
<subparagraph id="H374E1700709643D09DD35411046E40F0" commented="no">
<enum>(A)</enum>
<text>Section 168(e)(6) is amended—</text>
<clause id="HAFA03337D5F049E39CBBFEBC1C9C3D54" commented="no">
<enum>(i)</enum>
<text>by redesignating subparagraphs (A) and (B) as subparagraphs (D) and (E), respectively,</text>
</clause>
<clause id="H331C0EDB35B14C9EB1057737D3065DA8" commented="no">
<enum>(ii)</enum>
<text>by striking all that precedes subparagraph (D) (as so redesignated) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H97BD249EA1F546B3B1B06069B1747B31" style="OLC">
<paragraph id="HBA5E86662EF14C8BAD03702BE5C0C759" commented="no">
<enum>(6)</enum>
<header>Qualified leasehold improvement property</header>
<text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph id="H30ED29947B9147A1A20E5FD4E645434A" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">The term <term>qualified leasehold improvement property</term> means any improvement to an interior portion of a building which is nonresidential real property if—</text>
<clause id="HC66A409630C74E19BA0DE4D62F073402" commented="no">
<enum>(i)</enum>
<text>such improvement is made under or pursuant to a lease (as defined in subsection (h)(7))—</text>
<subclause id="H1446D91409A24C519E18D4554DD57E0F" commented="no">
<enum>(I)</enum>
<text>by the lessee (or any sublessee) of such portion, or</text>
</subclause>
<subclause id="H421C5C5F36B14052981AE4C6BF93044A" commented="no">
<enum>(II)</enum>
<text>by the lessor of such portion,</text>
</subclause>
</clause>
<clause id="H25B769970C204E789BC5E6FC55B08C02" commented="no">
<enum>(ii)</enum>
<text>such portion is to be occupied exclusively by the lessee (or any sublessee) of such portion, and</text>
</clause>
<clause id="HE7A36DEED52E4835ADF17649EDFB2198" commented="no">
<enum>(iii)</enum>
<text>such improvement is placed in service more than 3 years after the date the building was first placed in service.</text>
</clause>
</subparagraph>
<subparagraph id="HB6A38F07F5E544CA8B2B738EAC4DED72" commented="no">
<enum>(B)</enum>
<header>Certain improvements not included</header>
<text display-inline="yes-display-inline">Such term shall not include any improvement for which the expenditure is attributable to—</text>
<clause id="H8F08F2FC73D146708308758DA1D9B432" commented="no">
<enum>(i)</enum>
<text>the enlargement of the building,</text>
</clause>
<clause id="HF401C1F2DF6140B2B9DEF6AA8107A345" commented="no">
<enum>(ii)</enum>
<text>any elevator or escalator,</text>
</clause>
<clause id="H3648E025DEB8483A8EBA5EE5DE719643" commented="no">
<enum>(iii)</enum>
<text>any structural component benefitting a common area, or</text>
</clause>
<clause id="HFCC06213ECB542AB89EE3C6365B23AC0" commented="no">
<enum>(iv)</enum>
<text>the internal structural framework of the building.</text>
</clause>
</subparagraph>
<subparagraph id="HD64152491C0240DFB4D8CB1E92633DD9" commented="no">
<enum>(C)</enum>
<header>Definitions and special rules</header>
<text>For purposes of this paragraph—</text>
<clause id="H7D9C517443934467B43595F55EC07CE3" commented="no">
<enum>(i)</enum>
<header>Commitment to lease treated as lease</header>
<text>A commitment to enter into a lease shall be treated as a lease, and the parties to such commitment shall be treated as lessor and lessee, respectively.</text>
</clause>
<clause id="H8E7DB21E5A174A5DBA2B569CA7110F80" commented="no">
<enum>(ii)</enum>
<header>Related persons</header>
<text>A lease between related persons shall not be considered a lease. For purposes of the preceding sentence, the term <term>related persons</term> means—</text>
<subclause id="HAEC3D28421F748A0AF7EE53857570906" commented="no">
<enum>(I)</enum>
<text>members of an affiliated group (as defined in section 1504), and</text>
</subclause>
<subclause id="H8EBB5D3D224E49E28873E55D7F979352" commented="no">
<enum>(II)</enum>
<text display-inline="yes-display-inline">persons having a relationship described in subsection (b) of section 267; except that, for purposes of this clause, the phrase <quote>80 percent or more</quote> shall be substituted for the phrase <quote>more than 50 percent</quote> each place it appears in such subsection.</text>
</subclause>
</clause>
</subparagraph>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</clause>
<clause id="HC646BBD269CE4F498B3664ADD408CBED" commented="no">
<enum>(iii)</enum>
<text>by striking <quote>subparagraph (A)</quote> in subparagraph (E) (as so redesignated) and inserting <quote>subparagraph (D)</quote>.</text>
</clause>
</subparagraph>
<subparagraph id="H2F2BC21A91AA4B628C489C3D3179C0CA" commented="no">
<enum>(B)</enum>
<text>Section 168(e)(7)(B) is amended by striking <quote>qualified leasehold improvement property</quote> and inserting <quote>qualified improvement property</quote>.</text>
</subparagraph>
<subparagraph id="H348C0A416D5A4CA2AEB0353D003CA899" commented="no">
<enum>(C)</enum>
<text>Section 168(e)(8) is amended by striking subparagraph (D).</text>
</subparagraph>
<subparagraph id="HA3AC37A5AF6D4302ADCBAB09A6B61FB6" commented="no">
<enum>(D)</enum>
<text>Section 168(k), as amended by the preceding provisions of this section, is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCCDD3256692646C4B3B235257819B7CE" style="OLC">
<paragraph id="H174D44B443DF433AA6ACCAEE3AA50A04" commented="no">
<enum>(7)</enum>
<header>Election out</header>
<text display-inline="yes-display-inline">If a taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, paragraphs (1) and (2)(F) shall not apply to any qualified property in such class placed in service during such taxable year. An election under this paragraph may be revoked only with the consent of the Secretary.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="HB9D707F5B982411AA22D341ABECAAB04" commented="no">
<enum>(E)</enum>
<text>Section 168(l)(3) is amended—</text>
<clause id="HBCA0F6991500478E824B5562445B9E98" commented="no">
<enum>(i)</enum>
<text>by striking <quote>section 168(k)</quote> in subparagraph (A) and inserting <quote>subsection (k)</quote>, and</text>
</clause>
<clause id="H0C0639202BC14BE993BB9BAC48A2B8F5" commented="no">
<enum>(ii)</enum>
<text>by striking <quote>section 168(k)(2)(D)(i)</quote> in subparagraph (B) and inserting <quote>subsection (k)(2)(D)</quote>.</text>
</clause>
</subparagraph>
<subparagraph id="HE466CAF66A9E47C89C673B31223741AF" commented="no">
<enum>(F)</enum>
<text>Section 168(l)(4) is amended by striking <quote>subparagraph (E) of section 168(k)(2)</quote> and all that follows and inserting <quote>subsection (k)(2)(E) shall apply.</quote>.</text>
</subparagraph>
<subparagraph id="H911F8D73FDB64C50846F28E2BFD4BCA3" commented="no">
<enum>(G)</enum>
<text>Section 168(l)(5) is amended by striking <quote>section 168(k)(2)(G)</quote> and inserting <quote>subsection (k)(2)(G)</quote>.</text>
</subparagraph>
<subparagraph id="H58C12FEF027746978FA43BC8FAA37897" commented="no">
<enum>(H)</enum>
<text>Section 263A(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H66D145297D3840DA8338E190C60CF765" style="OLC">
<paragraph id="HA84EFDAB626548DA9A0A95D728DD48B9" commented="no">
<enum>(7)</enum>
<header>Coordination with section <enum-in-header>168(k)(5)</enum-in-header></header>
<text display-inline="yes-display-inline">This section shall not apply to any amount allowed as a deduction by reason of section 168(k)(5) (relating to special rules for certain plants bearing fruits and nuts).</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="H45A895A54A114829A9D813516ACB8291" commented="no">
<enum>(I)</enum>
<text>Section 460(c)(6)(B)(ii), as amended by subsection (a), is amended to read as follows:</text>
<quoted-block style="OLC" id="HB79F05DE7F4A46B38211CA1D8BF131B8" display-inline="no-display-inline">
<clause id="HBC525CFDED194F739CB2D131B91FD0F4" commented="no">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">is placed in service before January 1, 2020 (January 1, 2021 in the case of property described in section 168(k)(2)(B)).</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="H2295CC41F7864797B4AA7A2DBD11F6A3" commented="no">
<enum>(J)</enum>
<text display-inline="yes-display-inline">Section 168(k), as amended by subsection (a), is amended by striking <quote><header-in-text level="subsection" style="OLC">and before January 1, 2016</header-in-text></quote> in the heading thereof and inserting <quote><header-in-text level="subsection" style="OLC">and before January 1, 2020</header-in-text></quote> .</text>
</subparagraph>
</paragraph>
<paragraph id="H7D19784CD61D4E87850E27131256FA58" commented="no">
<enum>(7)</enum>
<header>Effective dates</header>
<subparagraph id="HA84A87672D6A4E3FB948C75F869481D4" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to property placed in service after December 31, 2015, in taxable years ending after such date.</text>
</subparagraph>
<subparagraph id="H4A8FA747F80F4DCE941871B4A7658531" commented="no">
<enum>(B)</enum>
<header>Expansion of election to accelerate AMT credits in lieu of bonus depreciation</header>
<text>The amendments made by paragraph (3) shall apply to taxable years ending after December 31, 2015, except that in the case of any taxable year beginning before January 1, 2016, and ending after December 31, 2015, the limitation under section 168(k)(4)(B)(ii) of the Internal Revenue Code of 1986 (as amended by this section) shall be the sum of—</text>
<clause id="H32A4E63CB0854C548476794D0E472AEB" commented="no">
<enum>(i)</enum>
<text>the product of—</text>
<subclause id="H4E96D3F05E5C425FBB90FF67817EA0CC" commented="no">
<enum>(I)</enum>
<text display-inline="yes-display-inline">the maximum increase amount (within the meaning of section 168(k)(4)(C)(iii) of such Code, as in effect before the amendments made by this subsection), multiplied by</text>
</subclause>
<subclause id="HA07A0A85586F4E34A4CE7E38A32922A8" commented="no">
<enum>(II)</enum>
<text display-inline="yes-display-inline">a fraction the numerator of which is the number of days in the taxable year before January 1, 2016, and the denominator of which is the number of days in the taxable year, plus</text>
</subclause>
</clause>
<clause id="HA39AB77132754DACA1B042FF2969A551" commented="no">
<enum>(ii)</enum>
<text>the product of—</text>
<subclause id="HAA71272635244E5482ABA74A0EA246C0" commented="no">
<enum>(I)</enum>
<text>such limitation (determined without regard to this subparagraph), multiplied by</text>
</subclause>
<subclause id="H90DC7AFD428747BCB019F97AA21C166B" commented="no">
<enum>(II)</enum>
<text display-inline="yes-display-inline">a fraction the numerator of which is the number of days in the taxable year after December 31, 2015, and the denominator of which is the number of days in the taxable year.</text>
</subclause>
</clause>
</subparagraph>
<subparagraph id="H198BF7D78D5E4060A451E3EDE9420471" commented="no">
<enum>(C)</enum>
<header>Special rules for certain plants bearing fruits and nuts</header>
<text>The amendments made by paragraph (4) (other than subparagraph (A) thereof) shall apply to specified plants (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this subsection) planted or grafted after December 31, 2015.</text>
</subparagraph>
</paragraph>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H093B31BF8CE84DC98FB4EF5E466B7949">
<enum>144.</enum>
<header>Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules</header>
<subsection id="HE2298AF7F2E24F0D80AA5E5C4CCB5E32">
<enum>(a)</enum>
<header>In general</header>
<text>Section 954(c)(6)(C) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2020</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H726BD5E476B748F593A9139883F5130B">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.</text>
</subsection>
</section>
</subtitle>
<subtitle id="H3F0992ADD07346A194DD83D6B99BABCE">
<enum>C</enum>
<header>Extensions through 2016</header>
<part id="HF5477F3B0F434C3DBDCAB18A938618D4">
<enum>1</enum>
<header>Tax relief for families and individuals</header>
<section id="H1B448079B9F14B92AE8A33F3549CE223" section-type="subsequent-section">
<enum>151.</enum>
<header>Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness</header>
<subsection id="H97B46577E4A049BEA03B1769D75261A2">
<enum>(a)</enum>
<header>Extension</header>
<text display-inline="yes-display-inline">Section 108(a)(1)(E) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H69FA48D23F404908939288F412D7C960">
<enum>(b)</enum>
<header>Modification</header>
<text display-inline="yes-display-inline">Section 108(a)(1)(E), as amended by subsection (a), is amended by striking <quote>discharged before</quote> and all that follows and inserting “discharged—</text>
<quoted-block display-inline="no-display-inline" id="H801CD0F518164F3AA14797B81FCF790B" style="OLC">
<clause id="HDF6D640E61114675AE51EBB976C16952">
<enum>(i)</enum>
<text display-inline="yes-display-inline">before January 1, 2017, or</text>
</clause>
<clause id="HDE68E9E75C2E4A24B509C62F400F8F07">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">subject to an arrangement that is entered into and evidenced in writing before January 1, 2017.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H67EEF3FD83E34A7BB58E448FC7C06E68">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="H31ED8507989E4DAB8C5145ED99CDB57B">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to discharges of indebtedness after December 31, 2014.</text>
</paragraph>
<paragraph id="H41561F37283C4408A2FB03FD38A393D0">
<enum>(2)</enum>
<header>Modification</header>
<text display-inline="yes-display-inline">The amendment made by subsection (b) shall apply to discharges of indebtedness after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H94880416F1124667AF0A1FF24AF8F154">
<enum>152.</enum>
<header>Extension of mortgage insurance premiums treated as qualified residence interest</header>
<subsection id="H75C1F513628E442590251C6DFE9181B0">
<enum>(a)</enum>
<header>In general</header>
<text>Subclause (I) of section 163(h)(3)(E)(iv) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H03B1C16F319A4317ACCE4905806423EB">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to amounts paid or accrued after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HA224F4EAEEC14E23A06E0292E87A2043">
<enum>153.</enum>
<header>Extension of above-the-line deduction for qualified tuition and related expenses</header>
<subsection id="HF51661956E1D4981983DF1709E6A41E4">
<enum>(a)</enum>
<header>In general</header>
<text>Section 222(e) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAA333AB1B78D49D186D34638FB9FE5A4">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
</part>
<part id="H67243467CF0F4A72BDE37ED88758724C">
<enum>2</enum>
<header>Incentives for growth, jobs, investment, and innovation</header>
<section id="H6572CC0FA1204A00BBB478605B606B41">
<enum>161.</enum>
<header>Extension of Indian employment tax credit</header>
<subsection id="HBC0FA7C5F39B478199D8D0B98A630135">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45A(f) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAC9FEF50FFA74E3DA1133F9BC82B055F">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HA732D520EB7D4CC7A3BA000ED26E792D">
<enum>162.</enum>
<header>Extension and modification of railroad track maintenance credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H2CAF22F17486475F8CC4C0B20B0ED84D">
<enum>(a)</enum>
<header>Extension</header>
<text>Section 45G(f) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection id="HC8D214C1BD33471F8EAA8710E0D01A26">
<enum>(b)</enum>
<header>Modification</header>
<text>Section 45G(d) is amended by striking <quote>January 1, 2005,</quote> and inserting <quote>January 1, 2015,</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H404C437E39BA4D8E9072DA07A8229B22">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="H31AF78CEB4C5489C936CF1FB8FA96F11">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2014.</text>
</paragraph>
<paragraph id="HE04B26DB9DDC48A09EA30819AE2F4B76">
<enum>(2)</enum>
<header>Modification</header>
<text display-inline="yes-display-inline">The amendment made by subsection (b) shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="HEC5337F2A963410F8614445DD016A7AB">
<enum>163.</enum>
<header>Extension of mine rescue team training credit</header>
<subsection id="H8781BA62A96946F480E319C212B1933F">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45N(e) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5B2783CBAD25478E9B1779CB8277AA9E">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HE660BC3EA91A4DAEA6C75E725D3FF28B">
<enum>164.</enum>
<header>Extension of qualified zone academy bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="HED8030357460491BB6C3604921422186">
<enum>(a)</enum>
<header>Extension</header>
<text>Section 54E(c)(1) is amended by striking <quote>and 2014</quote> and inserting <quote>2014, 2015, and 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H11DED8F526004510A42427EAAA0B2A6F">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to obligations issued after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HA7579CF89646481B9B86E7B87E0B89AE">
<enum>165.</enum>
<header>Extension of classification of certain race horses as 3-year property</header>
<subsection commented="no" display-inline="no-display-inline" id="HC2B6B18D31F7431FBD3570015EF11D5C">
<enum>(a)</enum>
<header>In general</header>
<text>Section 168(e)(3)(A)(i) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE20E023794FA42268013B93308CE2F31">
<enum>(1)</enum>
<text>by striking <quote>January 1, 2015</quote> in subclause (I) and inserting <quote>January 1, 2017</quote>, and</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBF87C443246745598BD3D7FBC9A3C2E0">
<enum>(2)</enum>
<text>by striking <quote>December 31, 2014</quote> in subclause (II) and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H03140F85D934404BAD7BD10657F31C32">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section id="H78E12D02617441C08A98661D73ED3C21">
<enum>166.</enum>
<header>Extension of 7-year recovery period for motorsports entertainment complexes</header>
<subsection id="H3CB0C725A47D441397600AC0D9AF3A27">
<enum>(a)</enum>
<header>In general</header>
<text>Section 168(i)(15)(D) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HBB574BE0EF2B47848E6F46BBE957B7F0">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section id="HA50E092FC8C6484086C4FAD63BA88C24">
<enum>167.</enum>
<header>Extension and modification of accelerated depreciation for business property on an Indian reservation</header>
<subsection id="H6D8DEA41C74A4431BC643A908C8CAFF7">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 168(j)(8) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection id="H3489F292959E4A43B979E72E5B8F1689">
<enum>(b)</enum>
<header>Election to have special rules not apply</header>
<text>Section 168(j) is amended by redesignating paragraph (8), as amended by subsection (a), as paragraph (9), and by inserting after paragraph (7) the following new paragraph:</text>
<quoted-block act-name="" id="H52F6AE4B9C904FFB9F5EDE5476DA52E8" style="OLC">
<paragraph id="H5DF307D4086D455AB79E898EF229DBF0">
<enum>(8)</enum>
<header>Election out</header>
<text>If a taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year. Such election, once made, shall be irrevocable.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H9BFD0595252F4D1E8CB53269209C4BDD">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="HE518295198DD4251BA77FAF9E1C894D3">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to property placed in service after December 31, 2014.</text>
</paragraph>
<paragraph id="H9D9F563E757E484BB059C8990BDF545E">
<enum>(2)</enum>
<header>Modification</header>
<text display-inline="yes-display-inline">The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HE6B06B7B62BE4510A2F52E04848C63ED">
<enum>168.</enum>
<header>Extension of election to expense mine safety equipment</header>
<subsection id="HE2A2870C4F3346E7B2B0911C5890B7E1">
<enum>(a)</enum>
<header>In general</header>
<text>Section 179E(g) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAF1ABB923A4F4BB69E09E83D4A5A1058">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H713AE784299B43D0A5D9C554F4A1327C">
<enum>169.</enum>
<header>Extension of special expensing rules for certain film and television productions; special expensing for live theatrical productions</header>
<subsection id="HEEABC27EC36A4E7EA2DEAC5C7A5B08F4">
<enum>(a)</enum>
<header>In general</header>
<text>Section 181(f) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection id="HB8749A5F813D4F5B8BCB769FE862EDBA" commented="no">
<enum>(b)</enum>
<header>Application to live productions</header>
<paragraph id="HD5DF429E8FCC4CF2BCA6583770F5A7BC" commented="no">
<enum>(1)</enum>
<header>In general</header>
<text>Paragraph (1) of section 181(a) is amended by inserting <quote>, and any qualified live theatrical production,</quote> after <quote>any qualified film or television production</quote>.</text>
</paragraph>
<paragraph id="HBA3D4D683C31495E89F90889E9BD9518" commented="no">
<enum>(2)</enum>
<header>Conforming amendments</header>
<text>Section 181 is amended—</text>
<subparagraph id="HD768FAA5B8244EBBA19D17F9EEF3EF4F" commented="no">
<enum>(A)</enum>
<text>by inserting <quote>or any qualified live theatrical production</quote> after <quote>qualified film or television production</quote> each place it appears in subsections (a)(2), (b), and (c)(1),</text>
</subparagraph>
<subparagraph id="H0120F978278F48E9B4F7CFB9E9BB4304" commented="no">
<enum>(B)</enum>
<text>by inserting <quote>or qualified live theatrical productions</quote> after <quote>qualified film or television productions</quote> in subsection (f), and</text>
</subparagraph>
<subparagraph id="H7F7B89E78C864D908186792CACC4D9B9" commented="no">
<enum>(C)</enum>
<text>by inserting <quote><header-in-text level="section" style="OLC">and live theatrical</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">film and television</header-in-text></quote> in the heading.</text>
</subparagraph>
</paragraph>
<paragraph id="H19A680458D2F4480BDCA70215114EBE3" commented="no">
<enum>(3)</enum>
<header>Clerical amendment</header>
<text>The item relating to section 181 in the table of sections for part VI of subchapter B of chapter 1 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HAE6EDD8692A84B99A474D4E16FD121B8" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 181. Treatment of certain qualified film and television and live theatrical productions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H95993F33EDDC4480A92F0AEE453D0DF7" commented="no">
<enum>(c)</enum>
<header>Qualified live theatrical production</header>
<text>Section 181 is amended—</text>
<paragraph id="H0B4A0993A736496D9BFB24814BC19709" commented="no">
<enum>(1)</enum>
<text>by redesignating subsections (e) and (f), as amended by subsections (a) and (b), as subsections (f) and (g), respectively, and</text>
</paragraph>
<paragraph id="HFD0A279A9DB04AA28C00022A5FA61772" commented="no">
<enum>(2)</enum>
<text>by inserting after subsection (d) the following new subsection:</text>
<quoted-block act-name="" id="H93B9DBA6ACE74D1E90A2F6FA402531F4" style="OLC">
<subsection id="H010DF5009E694B5A8272079B95DCEFBB" commented="no">
<enum>(e)</enum>
<header>Qualified live theatrical production</header>
<text>For purposes of this section—</text>
<paragraph id="H610674C358F34B4D86CB8EA1FD3F68EB" commented="no">
<enum>(1)</enum>
<header>In general</header>
<text>The term <term>qualified live theatrical production</term> means any production described in paragraph (2) if 75 percent of the total compensation of the production is qualified compensation (as defined in subsection (d)(3)).</text>
</paragraph>
<paragraph id="H57084E61E42E48968A604785B5575D24" commented="no">
<enum>(2)</enum>
<header>Production</header>
<subparagraph id="H058A898D1E7A453280A288FDA683573B" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>A production is described in this paragraph if such production is a live staged production of a play (with or without music) which is derived from a written book or script and is produced or presented by a taxable entity in any venue which has an audience capacity of not more than 3,000 or a series of venues the majority of which have an audience capacity of not more than 3,000.</text>
</subparagraph>
<subparagraph commented="no" id="HC837D5676F6D403CB20A580922B6EBE8">
<enum>(B)</enum>
<header>Touring companies, etc</header>
<text>In the case of multiple live staged productions—</text>
<clause commented="no" id="H30CB5E352A0A48D0A262A23A18BCA11B">
<enum>(i)</enum>
<text>for which the election under this section would be allowable to the same taxpayer, and</text>
</clause>
<clause commented="no" id="H7621B2113AE0455688A22C761D0A2353">
<enum>(ii)</enum>
<text>which are—</text>
<subclause commented="no" id="H3C084C9958FE47E39C849B993A567B86">
<enum>(I)</enum>
<text>separate phases of a production, or</text>
</subclause>
<subclause commented="no" id="H4B93F3F366494DDFAD5C7CB162621A84">
<enum>(II)</enum>
<text>separate simultaneous stagings of the same production in different geographical locations (not including multiple performance locations of any one touring production),</text>
</subclause>
</clause>
<continuation-text commented="no" continuation-text-level="subparagraph">each such live staged production shall be treated as a separate production.</continuation-text>
</subparagraph>
<subparagraph id="H33A8C9F5E3B7465E81AA75547DD93F05" commented="no">
<enum>(C)</enum>
<header>Phase</header>
<text>For purposes of subparagraph (B), the term <term>phase</term> with respect to any qualified live theatrical production refers to each of the following, but only if each of the following is treated by the taxpayer as a separate activity for all purposes of this title:</text>
<clause id="HDDF7C5F493FB4C37AB6F82D1E8BF7744" commented="no">
<enum>(i)</enum>
<text>The initial staging of a live theatrical production.</text>
</clause>
<clause id="HEE2E90327A0E4BE887F1DBCD16AF8F05" commented="no">
<enum>(ii)</enum>
<text>Subsequent additional stagings or touring of such production which are produced by the same producer as the initial staging.</text>
</clause>
</subparagraph>
<subparagraph id="HD38254535FDE4B618E2E670C424FD102" commented="no">
<enum>(D)</enum>
<header>Seasonal productions</header>
<clause id="H3E2B761C80274614909AAD77E304CC3F" commented="no">
<enum>(i)</enum>
<header>In general</header>
<text>In the case of a live staged production not described in subparagraph (B) which is produced or presented by a taxable entity for not more than 10 weeks of the taxable year, subparagraph (A) shall be applied by substituting <quote>6,500</quote> for <quote>3,000</quote>.</text>
</clause>
<clause id="HE1B4A0D87FA04F389F5723D8574D1E0B" commented="no">
<enum>(ii)</enum>
<header>Short taxable years</header>
<text>For purposes of clause (i), in the case of any taxable year of less than 12 months, the number of weeks for which a production is produced or presented shall be annualized by multiplying the number of weeks the production is produced or presented during such taxable year by 12 and dividing the result by the number of months in such taxable year.</text>
</clause>
</subparagraph>
<subparagraph id="H03D62670855F486BB43F05C0094CAC47" commented="no">
<enum>(E)</enum>
<header>Exception</header>
<text>A production is not described in this paragraph if such production includes or consists of any performance of conduct described in section 2257(h)(1) of title 18, United States Code.</text>
</subparagraph>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H2829B79747DC4E16A3BB8E9E2402D1E0">
<enum>(d)</enum>
<header>Effective date</header>
<paragraph id="HF823B3049B03468A871970897CFD2867">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to productions commencing after December 31, 2014.</text>
</paragraph>
<paragraph id="H27839353A912434291EA63525F68DEC9" commented="no" display-inline="no-display-inline">
<enum>(2)</enum>
<header>Modifications</header>
<subparagraph id="H88A944F3C5CE4C32A83DC9013412013F">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">The amendments made by subsections (b) and (c) shall apply to productions commencing after December 31, 2015.</text>
</subparagraph>
<subparagraph id="HC83230F126E84BF997F367B4E79D8913">
<enum>(B)</enum>
<header>Commencement</header>
<text display-inline="yes-display-inline">For purposes of subparagraph (A), the date on which a qualified live theatrical production commences is the date of the first public performance of such production for a paying audience.</text>
</subparagraph>
</paragraph>
</subsection>
</section>
<section id="HBB530559AF8A42D9831935235E052523">
<enum>170.</enum>
<header>Extension of deduction allowable with respect to income attributable to domestic production activities in Puerto Rico</header>
<subsection id="HE548AC2FEF8A42C0A7ED3BF848DDA52F">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 199(d)(8)(C) is amended—</text>
<paragraph id="HC2CB54F0B4924AC2B346F13320F8E22E">
<enum>(1)</enum>
<text display-inline="yes-display-inline">by striking <quote>first 9 taxable years</quote> and inserting <quote>first 11 taxable years</quote>, and</text>
</paragraph>
<paragraph id="HF62A376F58154CC2A4A52C3D7DDC88B0">
<enum>(2)</enum>
<text>by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HA71BB69266934E62816BDB2D8056967B">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section id="H4BE2983BDADB4973BBFCC2D8861DE4A3">
<enum>171.</enum>
<header>Extension and modification of empowerment zone tax incentives</header>
<subsection id="H9B916D06D21743D48D1953CE7FC29669">
<enum>(a)</enum>
<header>In general</header>
<paragraph id="H247C291A9C6144E88CDCE7F671911A0F">
<enum>(1)</enum>
<header>Extension</header>
<text>Section 1391(d)(1)(A)(i) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
<paragraph commented="no" id="H944B84B1555B4BEEBED825CE2D040117">
<enum>(2)</enum>
<header>Treatment of certain termination dates specified in nominations</header>
<text>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.</text>
</paragraph>
</subsection>
<subsection id="H75A61A37B00C4B618AD7DDF841C6560A">
<enum>(b)</enum>
<header>Modification</header>
<text>Section 1394(b)(3)(B)(i) is amended—</text>
<paragraph id="H158636EBA0164A019761CE068D739A62">
<enum>(1)</enum>
<text>by striking <quote>References</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H70AA65DE4163488C9175A922C7889D4E" style="OLC">
<subclause id="HB6E0A233F48B430F8A5DC2D79143897F">
<enum>(I)</enum>
<header>In general</header>
<text>Except as provided in subclause (II), references</text>
</subclause>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H0838A4CA74684BA29BCE41BB4A14E32A">
<enum>(2)</enum>
<text>by adding at the end the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="H7D106AF3B14147F9AA458B8DDC18B34B" style="OLC">
<subclause id="HE4928A97F68C4CAD86FD084F29A810FD">
<enum>(II)</enum>
<header>Special rule for employee residence test</header>
<text>For purposes of subsection (b)(6) and (c)(5) of section 1397C, an employee shall be treated as a resident of an empowerment zone if such employee is a resident of an empowerment zone, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction.</text>
</subclause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H2110EB57BDB84ABB80EDD826F7DFBD89">
<enum>(c)</enum>
<header>Definitions</header>
<paragraph id="H4F325828EDA14CC7B5C1FD224763AECF">
<enum>(1)</enum>
<header>Qualified low-income community</header>
<text>Section 1394(b)(3) is amended by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and by inserting after subparagraph (B) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H79FABF28A55B468CB0F224193D67948B" style="OLC">
<subparagraph id="H9E4C940498FC4C8F9FD8C34E8B96BB43">
<enum>(C)</enum>
<header>Qualified low-income community</header>
<text>For purposes of subparagraph (B)—</text>
<clause id="HC83D3B0C2E79483899E0F8D13A6C9D18">
<enum>(i)</enum>
<header>In general</header>
<text>The term <term>qualified low-income community</term> means any population census tract if—</text>
<subclause id="HC4E4E1652ED844E79DD5D2CAF1A2BEAE">
<enum>(I)</enum>
<text>the poverty rate for such tract is at least 20 percent, or</text>
</subclause>
<subclause id="H3B7E3C5B677A486BBC60E23FF288B91F">
<enum>(II)</enum>
<text>the median family income for such tract does not exceed 80 percent of statewide median family income (or, in the case of a tract located within a metropolitan area, metropolitan area median family income if greater).</text>
</subclause>
<continuation-text continuation-text-level="clause">Subclause (II) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States.</continuation-text>
</clause>
<clause id="HB11C458C35FF4768850BC29F12B34E05">
<enum>(ii)</enum>
<header>Targeted populations</header>
<text>The Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994) may be treated as qualified low-income communities.</text>
</clause>
<clause id="H49575BD22E1747F99DB87F7CFC6DAE11">
<enum>(iii)</enum>
<header>Areas not within census tracts</header>
<text>In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income.</text>
</clause>
<clause id="H500AA41E626C4423BB23C2C1520B0194">
<enum>(iv)</enum>
<header>Modification of income requirement for census tracts within high migration rural counties</header>
<subclause id="H11618572372A4B1490C5F207A0BCC651">
<enum>(I)</enum>
<header>In general</header>
<text>In the case of a population census tract located within a high migration rural county, clause (i)(II) shall be applied to areas not located within a metropolitan area by substituting <quote>85 percent</quote> for <quote>80 percent</quote>.</text>
</subclause>
<subclause id="HF78522816ECB45C09426BAD0D013F460">
<enum>(II)</enum>
<header>High migration rural county</header>
<text>For purposes of this clause, the term <term>high migration rural county</term> means any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period.</text>
</subclause>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HC08A808E73BF4F11A3EF2DB448041CC9">
<enum>(2)</enum>
<header>Applicable nominating jurisdiction</header>
<text>Section 1394(b)(3)(D), as redesignated by paragraph (1), is amended by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H39DB9493B41F448ABE7D3C7576C133D6" style="OLC">
<clause id="H558520CBE9104304BF3461D2694B4428">
<enum>(iii)</enum>
<header>Applicable nominating jurisdiction</header>
<text>The term <term>applicable nominating jurisdiction</term> means, with respect to any empowerment zone or enterprise community, any local government that nominated such community for designation under section 1391.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H221E095A99D947969F14DD82E997795F">
<enum>(d)</enum>
<header>Conforming amendments</header>
<paragraph id="HC9CB1CFEE98B4882972D03E4BEA6CC9D">
<enum>(1)</enum>
<text>Section 1394(b)(3)(B)(iii) is amended by striking <quote>or an enterprise community</quote> and inserting <quote>, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction</quote>.</text>
</paragraph>
<paragraph id="HFEE8B386F978465B90D529D2219EA19E">
<enum>(2)</enum>
<text>Section 1394(b)(3)(D), as redesignated by subsection (c)(1), is amended by striking <quote><header-in-text level="subparagraph" style="OLC">Definitions</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Other definitions</header-in-text></quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HDD01499CFA9541538854C45BC8C66D92">
<enum>(e)</enum>
<header>Effective dates</header>
<paragraph id="HD70FC8BF4B9348B089CE13214A82CACB">
<enum>(1)</enum>
<header>Extensions</header>
<text>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2014.</text>
</paragraph>
<paragraph id="HC179EB7EA748487F96B536E1E535AB80" commented="no">
<enum>(2)</enum>
<header>Modifications</header>
<text>The amendments made by subsections (b), (c), and (d) shall apply to bonds issued after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H1A3D5856190044008A2E7BAC3587D3D3">
<enum>172.</enum>
<header>Extension of temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands</header>
<subsection id="H3113B45630424C53AAA383E218B14AE9">
<enum>(a)</enum>
<header>In general</header>
<text>Section 7652(f)(1) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H7C5B72D0FCDB45A2BC8801703FD1C471">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H86E172098034484C821F542E0DF482C5">
<enum>173.</enum>
<header>Extension of American Samoa economic development credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H6A58CBBF9D874555BBB1BA6CDC96A792">
<enum>(a)</enum>
<header>In general</header>
<text>Section 119(d) of division A of the Tax Relief and Health Care Act of 2006 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBC2AC20E0E454195868AF5C498C98616">
<enum>(1)</enum>
<text>by striking <quote>January 1, 2015</quote> each place it appears and inserting <quote>January 1, 2017</quote>,</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF276CE0BF01348C38408CF837D0DD92D">
<enum>(2)</enum>
<text>by striking <quote>first 9 taxable years</quote> in paragraph (1) and inserting <quote>first 11 taxable years</quote>, and</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0043421D65D34A0782E76BFA29C2ED11">
<enum>(3)</enum>
<text>by striking <quote>first 3 taxable years</quote> in paragraph (2) and inserting <quote>first 5 taxable years</quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H94A2A270BEEA4CEABF4560E986209309">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section id="H6EBCE533750943A7B3ADAB6743618A1D" section-type="subsequent-section" display-inline="no-display-inline">
<enum>174.</enum>
<header>Moratorium on medical device excise tax</header>
<subsection id="H9753CFFE96FF44279FF3B2870B3E612F">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 4191 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6E1072994B67422FA797A5F8AB6C7F16" style="appropriations">
<subsection id="HED972505B8994C26AEB35D3B68838E53">
<enum>(c)</enum>
<header>Moratorium</header>
<text>The tax imposed under subsection (a) shall not apply to sales during the period beginning on January 1, 2016, and ending on December 31, 2017.</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H542E15CA63F74C3DB23FF9F6A74C6E03">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to sales after December 31, 2015.</text>
</subsection>
</section>
</part>
<part id="H9A4C287AF3F0433082783EA4682F99F5">
<enum>3</enum>
<header>Incentives for energy production and conservation</header>
<section commented="no" display-inline="no-display-inline" id="HB0FAEB473BC748408173EBA691E41693">
<enum>181.</enum>
<header>Extension and modification of credit for nonbusiness energy property</header>
<subsection commented="no" display-inline="no-display-inline" id="HF24857242A70451D8DA0034226798498">
<enum>(a)</enum>
<header>Extension</header>
<text>Section 25C(g)(2) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection id="H344BCFA2A0A1420694F85BDC81286FD0">
<enum>(b)</enum>
<header>Updated Energy Star requirements</header>
<paragraph id="H62C7D11FE36F4FC487FB2AAAEBB25358" commented="no" display-inline="no-display-inline">
<enum>(1)</enum>
<header>In general</header>
<text>Section 25C(c)(1) is amended by striking <quote>which meets</quote> and all that follows through <quote>requirements)</quote>.</text>
</paragraph>
<paragraph id="H2861B4275B5545938BD47268A6E8810E" commented="no" display-inline="no-display-inline">
<enum>(2)</enum>
<header>Energy efficient building envelope component</header>
<text>Section 25C(c) is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HF41E6CCE73034E6BB8A5A64545FF7BC8">
<paragraph id="HCDE40B3EEA284B36841AA01AC196B91B">
<enum>(2)</enum>
<header>Energy efficient building envelope component</header>
<text>The term <term>energy efficient building envelope component</term> means a building envelope component which meets—</text>
<subparagraph id="H75C878E4A2C9476796A996EA48FB08E9" commented="no" display-inline="no-display-inline">
<enum>(A)</enum>
<text>applicable Energy Star program requirements, in the case of a roof or roof products,</text>
</subparagraph>
<subparagraph id="HBD5B9A7308D94D3E8C49317242063B78" commented="no" display-inline="no-display-inline">
<enum>(B)</enum>
<text>version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and</text>
</subparagraph>
<subparagraph id="HC41F57C372D64985A423D819EE1C1868">
<enum>(C)</enum>
<text>the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, in the case of any other component.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HA82E802614634613AF019AB3A285C848">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="H00AB34B965E84301A1930C9CFA553667">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendment made by subsection (a) shall apply to property placed in service after December 31, 2014.</text>
</paragraph>
<paragraph id="HC05E4CC6BFB2444F8F0A94FAB4BFEFB6">
<enum>(2)</enum>
<header>Modification</header>
<text>The amendments made by subsection (b) shall apply to property placed in service after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H9DDD31410A6841DF8533C3A4F7B90A1E">
<enum>182.</enum>
<header>Extension of credit for alternative fuel vehicle refueling property</header>
<subsection id="HBAFFEE58F3EA47B392420D7B776C10FB">
<enum>(a)</enum>
<header>In general</header>
<text>Section 30C(g) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H3567896D2F6D4FAAA3D3459FC8EDEF1A">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" id="HB1AE868C5C0541398B1EEDD2432A7E25" section-type="subsequent-section">
<enum>183.</enum>
<header>Extension of credit for 2-wheeled plug-in electric vehicles</header>
<subsection commented="no" id="H19D63FD4470A4627A1195ABF4B4D7DF9">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 30D(g)(3)(E) is amended by striking <quote>acquired</quote> and all that follows and inserting the following: “acquired—</text>
<quoted-block display-inline="no-display-inline" id="H3C8AABB6D31D43D384A73C591DC5FD7D" style="OLC">
<clause commented="no" id="H887D95A30A734404BC2D1C207FD70F05">
<enum>(i)</enum>
<text display-inline="yes-display-inline">after December 31, 2011, and before January 1, 2014, or</text>
</clause>
<clause commented="no" id="HDE6F1333516F4AB18BF8B477D008C03E">
<enum>(ii)</enum>
<text>in the case of a vehicle that has 2 wheels, after December 31, 2014, and before January 1, 2017.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H9F3A105C58EF4F6DB509D5F402BEC583">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to vehicles acquired after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" id="HFB6576ADC22148E293395CEFDF9C03B0">
<enum>184.</enum>
<header>Extension of second generation biofuel producer credit</header>
<subsection id="HE1275342FCE4411CA719829F2AF7947F">
<enum>(a)</enum>
<header>In general</header>
<text>Section 40(b)(6)(J)(i) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection commented="no" id="HC0EE4B09AA0341548499A1CD91A90488">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this subsection shall apply to qualified second generation biofuel production after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H8152294C4D8145BC9C56731ED0A9BC8D" section-type="subsequent-section">
<enum>185.</enum>
<header>Extension of biodiesel and renewable diesel incentives</header>
<subsection commented="no" display-inline="no-display-inline" id="HBFB3854037BC4AB99C244B0EA4E1910C">
<enum>(a)</enum>
<header display-inline="yes-display-inline">Income tax credit</header>
<paragraph id="HF985C182F6BF4089A6754E9114EF47B6">
<enum>(1)</enum>
<header>In general</header>
<text>Subsection (g) of section 40A is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
<paragraph id="H0C88CD4413264785A504889ADFEB89A1">
<enum>(2)</enum>
<header>Effective date</header>
<text>The amendment made by this subsection shall apply to fuel sold or used after December 31, 2014.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAD22D5D73CF944DE850A75F49CF9DC87">
<enum>(b)</enum>
<header display-inline="yes-display-inline">Excise tax incentives</header>
<paragraph id="HCD1EB63E2DB946EDBDE1738705B8008F">
<enum>(1)</enum>
<header>In general</header>
<text>Section 6426(c)(6) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
<paragraph id="H1D1B85B7373247E1A7F7F30810C8077D" commented="no" display-inline="no-display-inline">
<enum>(2)</enum>
<header>Payments</header>
<text>Section 6427(e)(6)(B) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
<paragraph id="H736593E960FA4E059E05CF01702BF9F2" commented="no" display-inline="no-display-inline">
<enum>(3)</enum>
<header>Effective date</header>
<text>The amendments made by this subsection shall apply to fuel sold or used after December 31, 2014.</text>
</paragraph>
<paragraph id="H18AABBA1AAC04C658D214EBFB8E6123A">
<enum>(4)</enum>
<header>Special rule for 2015</header>
<text>Notwithstanding any other provision of law, in the case of any biodiesel mixture credit properly determined under section 6426(c) of the Internal Revenue Code of 1986 for the period beginning on January 1, 2015, and ending on December 31, 2015, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.</text>
</paragraph>
</subsection>
</section>
<section id="HA15814E55D1748AA923DE950B6A0D1D4">
<enum>186.</enum>
<header>Extension and modification of production credit for Indian coal facilities</header>
<subsection id="H81B515EA7DC0485583601CF15EB2C38C">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45(e)(10)(A) is amended by striking <quote>9-year period</quote> each place it appears and inserting <quote>11-year period</quote>.</text>
</subsection>
<subsection id="H5817587F707E4A2B9A8E8EB84298591B">
<enum>(b)</enum>
<header>Repeal of limitation based on date facility is placed in service</header>
<text display-inline="yes-display-inline">Section 45(d)(10) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H381F49571239428FA2EDA5F5BDF3ED0F" style="OLC">
<paragraph id="H90C1F4B0AA8F42358A88E9939D5E7FF4">
<enum>(10)</enum>
<header>Indian coal production facility</header>
<text display-inline="yes-display-inline">The term <term>Indian coal production facility</term> means a facility that produces Indian coal.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HADC7E44C161C47FBB6569422C7465410">
<enum>(c)</enum>
<header>Treatment of sales to related parties</header>
<text display-inline="yes-display-inline">Section 45(e)(10)(A)(ii)(I) is amended by inserting <quote>(either directly by the taxpayer or after sale or transfer to one or more related persons)</quote> after <quote>unrelated person</quote>. </text>
</subsection>
<subsection id="HD23BCBD7F6A741738FC3D8BD3BBE6A56">
<enum>(d)</enum>
<header>Credit allowed against alternative minimum tax</header>
<paragraph id="H476E64E41C06497F90A7768ABAF01209">
<enum>(1)</enum>
<header>In general</header>
<text>Section 38(c)(4)(B), as amended by the preceding provisions of this Act, is amended by redesignating clauses (v) through (x) as clauses (vi) through (xi), respectively, and by inserting after clause (iv) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H751D726292A647AC8806C5410AE5B9EE" style="OLC">
<clause id="H32A7900470CE442BAF4ED751CF0CB9B7">
<enum>(v)</enum>
<text display-inline="yes-display-inline">the credit determined under section 45 to the extent that such credit is attributable to section 45(e)(10) (relating to Indian coal production facilities),</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H73E8C09F31564EB2B111A14C9174E145">
<enum>(2)</enum>
<header>Conforming amendment</header>
<text>Section 45(e)(10) is amended by striking subparagraph (D).</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HF36B3CE57FB64892A8612E6487557646">
<enum>(e)</enum>
<header>Effective dates</header>
<paragraph id="HC0B2B6DDB4BE42DBB80DFD78DBCCAED3">
<enum>(1)</enum>
<header>Extension</header>
<text>The amendments made by subsection (a) shall apply to coal produced after December 31, 2014.</text>
</paragraph>
<paragraph id="H71D03617134A48119BCD5807DBA0D97E">
<enum>(2)</enum>
<header>Modifications</header>
<text display-inline="yes-display-inline">The amendments made by subsections (b) and (c) shall apply to coal produced and sold after December 31, 2015, in taxable years ending after such date.</text>
</paragraph>
<paragraph id="HC73021A1B9124FEC8D5D4CBF75930A88">
<enum>(3)</enum>
<header>Credit allowed against alternative minimum tax</header>
<text>The amendments made by subsection (d) shall apply to credits determined for taxable years beginning after December 31, 2015.</text>
</paragraph>
</subsection>
</section>
<section commented="no" id="H48CD26A109904E2BAB4AA5164A50D036">
<enum>187.</enum>
<header>Extension of credits with respect to facilities producing energy from certain renewable resources</header>
<subsection commented="no" id="H703C4C0D79864C8FA2A38220317045E9">
<enum>(a)</enum>
<header>In general</header>
<text>The following provisions of section 45(d) are each amended by striking <quote>January 1, 2015</quote> each place it appears and inserting <quote>January 1, 2017</quote>:</text>
<paragraph commented="no" id="HA3DAAC182C4C49E29E9DC1BCB8686F28">
<enum>(1)</enum>
<text>Paragraph (2)(A).</text>
</paragraph>
<paragraph commented="no" id="H63591D3B05394C28BBEEFB7A8E036A83">
<enum>(2)</enum>
<text>Paragraph (3)(A).</text>
</paragraph>
<paragraph commented="no" id="H6BAEAE2002C344EC99D8D5C4B66054F0">
<enum>(3)</enum>
<text>Paragraph (4)(B).</text>
</paragraph>
<paragraph commented="no" id="H3093FD9D301243A891346FF7052D1291">
<enum>(4)</enum>
<text>Paragraph (6).</text>
</paragraph>
<paragraph commented="no" id="H9DEBA6B071584C95AE80A979391DAEF8">
<enum>(5)</enum>
<text>Paragraph (7).</text>
</paragraph>
<paragraph commented="no" id="HA2E6F6B048A54B439A32E9D1133AF5B5">
<enum>(6)</enum>
<text>Paragraph (9).</text>
</paragraph>
<paragraph commented="no" id="HCF986D954C80457BB253363CDBCD18D4">
<enum>(7)</enum>
<text>Paragraph (11)(B).</text>
</paragraph>
</subsection>
<subsection commented="no" id="H5C3947A415B4430B9BA6115FD6C00BDC">
<enum>(b)</enum>
<header>Extension of election to treat qualified facilities as energy property</header>
<text>Section 48(a)(5)(C)(ii) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection commented="no" id="HD72C295F2C734E60B383B967D4A9EB60">
<enum>(c)</enum>
<header>Effective dates</header>
<text>The amendments made by this section shall take effect on January 1, 2015.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H4E5B7BEB0DFB478EA95106450FA45FE3">
<enum>188.</enum>
<header>Extension of credit for energy-efficient new homes</header>
<subsection commented="no" display-inline="no-display-inline" id="H7A65D03D664A491E908FDFB15C481ADC">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45L(g) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H735223D5A54B48509DD5DD45CCA0B639">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to homes acquired after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="HA20AFF4759A64875B31A718D69EC5E60">
<enum>189.</enum>
<header>Extension of special allowance for second generation biofuel plant property</header>
<subsection commented="no" display-inline="no-display-inline" id="H63BBF1862DBA411393DC0453C4DC86BE">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 168(l)(2)(D) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H674C062F1BAC4F57AF92C54657B544B5">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H924045A0C7DB45A4960E7CF61AE06D22">
<enum>190.</enum>
<header>Extension of energy efficient commercial buildings deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="H9DBEBF45C9DB4628BA7CBFFE8E7048BC">
<enum>(a)</enum>
<header>In general</header>
<text>Section 179D(h) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HC865BA4067C74640AB765B5EAC31C5F8">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to property placed in service after December 31, 2014.</text>
</subsection>
</section>
<section id="H6828F65C43D148A280E2CA5BB3BD925C">
<enum>191.</enum>
<header>Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities</header>
<subsection id="HC231A2E997CA40C997B7C5B95E9F08D5">
<enum>(a)</enum>
<header>In general</header>
<text>Section 451(i)(3) is amended by striking <quote>January 1, 2015</quote> and inserting <quote>January 1, 2017</quote>.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H45F5920DBEC04DDF846CB93AB95B36BC">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to dispositions after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H524FFE27CE76453ABCFA542E1BEAB7D3">
<enum>192.</enum>
<header>Extension of excise tax credits relating to alternative fuels</header>
<subsection commented="no" display-inline="no-display-inline" id="HAEF0E45B5A714948B855C1744F174622">
<enum>(a)</enum>
<header>Extension of alternative fuels excise tax credits</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0CA6E31D8AFB4A2AB2800F7444DD5CB0">
<enum>(1)</enum>
<header>In general</header>
<text>Sections 6426(d)(5) and 6426(e)(3) are each amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H5AED2BAA53A1434CAF24D3AB729325F5">
<enum>(2)</enum>
<header>Outlay payments for alternative fuels</header>
<text>Section 6427(e)(6)(C) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HB369652A24454C268C614EE7B3A88E67">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to fuel sold or used after December 31, 2014.</text>
</subsection>
<subsection id="H90A12981E12C41919E12728B5D65916C">
<enum>(c)</enum>
<header>Special rule for 2015</header>
<text>Notwithstanding any other provision of law, in the case of any alternative fuel credit properly determined under section 6426(d) of the Internal Revenue Code of 1986 for the period beginning on January 1, 2015, and ending on December 31, 2015, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.</text>
</subsection>
</section>
<section id="H6D09B42E846C44AB9D9B89E2B39D2528" commented="no">
<enum>193.</enum>
<header>Extension of credit for new qualified fuel cell motor vehicles</header>
<subsection id="H639CCA2444CC4A21BFA120744063C175" commented="no">
<enum>(a)</enum>
<header>In general</header>
<text>Section 30B(k)(1) is amended by striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection>
<subsection id="HC8E13B2C78FC40B3825F21CD91FFC205" commented="no" display-inline="no-display-inline">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to property purchased after December 31, 2014.</text>
</subsection>
</section>
</part>
</subtitle>
<enum>II</enum>
<header>Program Integrity</header>
<section commented="no" display-inline="no-display-inline" id="H978A7B86B2F141BFAD6BC972AA406780">
<enum>201.</enum>
<header>Modification of filing dates of returns and statements relating to employee wage information and nonemployee compensation to improve compliance</header>
<subsection id="HC67C0F81E9B34D42B5FD78FEFF5EBFF8" commented="no" display-inline="no-display-inline">
<enum>(a)</enum>
<header>In general</header>
<text>Section 6071 is amended by redesignating subsection (c) as subsection (d), and by inserting after subsection (b) the following new subsection:</text>
<quoted-block act-name="" id="HED273909432E4BF088485BB38ABDD634" style="OLC">
<subsection id="HA60F2DD1C5F842A0B4BD5B0AE455929F">
<enum>(c)</enum>
<header>Returns and statements relating to employee wage information and nonemployee compensation</header>
<text display-inline="yes-display-inline">Forms W–2 and W–3 and any returns or statements required by the Secretary to report nonemployee compensation shall be filed on or before January 31 of the year following the calendar year to which such returns relate.</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H3DCF533232734F04A2BE14466E267B1E">
<enum>(b)</enum>
<header>Date for certain refunds</header>
<text display-inline="yes-display-inline">Section 6402 is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H089C18BE0FDB401CBD6BE768AE57C1C7" display-inline="no-display-inline">
<subsection id="HCA63B4A465D6460082BC677D22E8870B">
<enum>(m)</enum>
<header>Earliest date for certain refunds</header>
<text display-inline="yes-display-inline">No credit or refund of an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of such taxable year if a credit is allowed to such taxpayer under section 24 (by reason of subsection (d) thereof) or 32 for such taxable year.</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H6220C101E75248B89CAD30B335BF0290" commented="no" display-inline="no-display-inline">
<enum>(c)</enum>
<header>Conforming amendment</header>
<text>Section 6071(b) is amended by striking <quote>subparts B and C of part III of this subchapter</quote> and inserting <quote>subpart B of part III of this subchapter (other than returns and statements required to be filed with respect to nonemployee compensation)</quote>.</text>
</subsection>
<subsection id="H3BC965B6263443D483AF87141521B5D9" commented="no" display-inline="no-display-inline">
<enum>(d)</enum>
<header>Effective dates</header>
<paragraph id="HAF1411A76CFB4454A165A9441B134EEF">
<enum>(1)</enum>
<header>In general</header>
<text>Except as provided in paragraph (2), the amendments made by this section shall apply to returns and statements relating to calendar years beginning after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="HF91E9DED67A342EAA12F5096881568C5">
<enum>(2)</enum>
<header>Date for certain refunds</header>
<text>The amendment made by subsection (b) shall apply to credits or refunds made after December 31, 2016.</text>
</paragraph>
</subsection>
</section>
<section id="H7B264F8E79994EFD9FBFEAA1FF25DB4D">
<enum>202.</enum>
<header>Safe harbor for de minimis errors on information returns and payee statements</header>
<subsection id="H1DBE94116C374F438CB4F1DD2B70A9F1">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 6721(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HAD18D744F1F34AE1A4624413CAA5FE4A" style="OLC">
<paragraph id="HCF8290F6396F470F8F1C6131F3474BA7">
<enum>(3)</enum>
<header>Safe harbor for certain de minimis errors</header>
<subparagraph id="H4700DC7FC7A4452B8758C295FD7F1701">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">If, with respect to an information return filed with the Secretary—</text>
<clause id="HC128263C6CEE420BB51DC8CA4AE76E8D">
<enum>(i)</enum>
<text>there are 1 or more failures described in subsection (a)(2)(B) relating to an incorrect dollar amount,</text>
</clause>
<clause id="HD381553B9E5D4CACBB6002C024B17765">
<enum>(ii)</enum>
<text>no single amount in error differs from the correct amount by more than $100, and</text>
</clause>
<clause id="H531AAF77517D45A3B1DC8CF9589B0075">
<enum>(iii)</enum>
<text>no single amount reported for tax withheld on any information return differs from the correct amount by more than $25,</text>
</clause>
<continuation-text continuation-text-level="subparagraph">then no correction shall be required and, for purposes of this section, such return shall be treated as having been filed with all of the correct required information.</continuation-text>
</subparagraph>
<subparagraph id="H50866172C6484E4AA0CEF0AA2EBCEDE4">
<enum>(B)</enum>
<header>Exception</header>
<text display-inline="yes-display-inline">Subparagraph (A) shall not apply with respect to any incorrect dollar amount to the extent that such error relates to an amount with respect to which an election is made under section 6722(c)(3)(B).</text>
</subparagraph>
<subparagraph id="H23F2417CE08C45E0AD23E9162D7EEC06">
<enum>(C)</enum>
<header>Regulatory authority</header>
<text display-inline="yes-display-inline">The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HBA81E32A5708455BA4C9BE78BE229651">
<enum>(b)</enum>
<header>Failure To furnish correct payee statement</header>
<text>Section 6722(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC48848B8753C42D38964C2B79E3D38A2" style="OLC">
<paragraph id="HFDE31E1DC1A84EB0B71F4795E5D6F4C5">
<enum>(3)</enum>
<header>Safe harbor for certain de minimis errors</header>
<subparagraph id="HC2D2FFE4AF4749A0A21ACD0DAD30A861">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">If, with respect to any payee statement—</text>
<clause id="H5D2F595B004340D399FF0977C2D3BF1D">
<enum>(i)</enum>
<text display-inline="yes-display-inline">there are 1 or more failures described in subsection (a)(2)(B) relating to an incorrect dollar amount,</text>
</clause>
<clause id="HD4E61169486A43D69112D3867F3D8D9C">
<enum>(ii)</enum>
<text>no single amount in error differs from the correct amount by more than $100, and</text>
</clause>
<clause id="H1119A6C96A124E1684517BEE4D2956ED">
<enum>(iii)</enum>
<text>no single amount reported for tax withheld on any information return differs from the correct amount by more than $25,</text>
</clause>
<continuation-text continuation-text-level="subparagraph">then no correction shall be required and, for purposes of this section, such statement shall be treated as having been filed with all of the correct required information.</continuation-text>
</subparagraph>
<subparagraph id="H1A8BC8D9179B442DB3569F049495342C">
<enum>(B)</enum>
<header>Exception</header>
<text display-inline="yes-display-inline">Subparagraph (A) shall not apply to any payee statement if the person to whom such statement is required to be furnished makes an election (at such time and in such manner as the Secretary may prescribe) that subparagraph (A) not apply with respect to such statement.</text>
</subparagraph>
<subparagraph id="H45F715DF3DBF4A7D879D0B99CA283F8A">
<enum>(C)</enum>
<header>Regulatory authority</header>
<text display-inline="yes-display-inline">The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H0C6C9B708F9A45A0BBD9F4F6E2BDEC29">
<enum>(c)</enum>
<header>Application to broker reporting of basis</header>
<text>Section 6045(g)(2)(B) is amended by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H03333C4E965C4D4993D45B0B755820BB" style="OLC">
<clause id="H766767C0AFA848A8BC050240ABC6703C">
<enum>(iii)</enum>
<header>Treatment of uncorrected de minimis errors</header>
<text display-inline="yes-display-inline">Except as otherwise provided by the Secretary, the customer’s adjusted basis shall be determined by treating any incorrect dollar amount which is not required to be corrected by reason of section 6721(c)(3) or section 6722(c)(3) as the correct amount.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HD20F12E17DC64B8B8086F0EC612D2FB7">
<enum>(d)</enum>
<header>Conforming amendments</header>
<paragraph id="HCF905002A2D245B79AFC7880A6E72EEF">
<enum>(1)</enum>
<text>Section 6721(c) is amended by striking <quote><header-in-text level="subsection" style="OLC">Exception for de minimis failures to include all required information</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">Exceptions for certain de minimis failures</header-in-text></quote>.</text>
</paragraph>
<paragraph id="H94C2840A839B4CE8BFE880AA3D6A5974">
<enum>(2)</enum>
<text>Section 6721(c)(1) is amended by striking <quote><header-in-text level="paragraph" style="OLC">In general</header-in-text></quote> in the heading and inserting <quote><header-in-text level="paragraph" style="OLC">Exception for de minimis failure to include all required information</header-in-text></quote>.</text>
</paragraph>
</subsection>
<subsection id="HB6C039334D30437C8969D86FC85D3D21">
<enum>(e)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply to returns required to be filed, and payee statements required to be provided, after December 31, 2016.</text>
</subsection>
</section>
<section id="HB029C74DDF1D4BB89863076D27A8FE7F">
<enum>203.</enum>
<header>Requirements for the issuance of ITINs</header>
<subsection id="H89D657F779C2455CBC350EBBE9936499">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 6109 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE21BB8DA7FEB48AFB5740D5BB9E54FCD" style="OLC">
<subsection id="H8004BBABA74C4DB9AF3CFB02EF9536F1">
<enum>(i)</enum>
<header>Special rules relating to the issuance of ITINs</header>
<paragraph id="HD50676BFDF804E1BA3229414582E2A6F">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">The Secretary is authorized to issue an individual taxpayer identification number to an individual only if the applicant submits an application, using such form as the Secretary may require and including the required documentation—</text>
<subparagraph id="H4715329CF9C84A07ABF397B4DA38EF0D">
<enum>(A)</enum>
<text display-inline="yes-display-inline">in the case of an applicant not described in subparagraph (B)—</text>
<clause id="HED980DB03ABE4C73A050393CD93C3962">
<enum>(i)</enum>
<text display-inline="yes-display-inline">in person to an employee of the Internal Revenue Service or a community-based certified acceptance agent approved by the Secretary, or</text>
</clause>
<clause id="H98C998FAB49D4F7985F87A17F519F1FF">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">by mail, pursuant to rules prescribed by the Secretary, or</text>
</clause>
</subparagraph>
<subparagraph id="HD12316590A42466B9CB3B2D5E29D744F">
<enum>(B)</enum>
<text display-inline="yes-display-inline">in the case of an applicant who resides outside of the United States, by mail or in person to an employee of the Internal Revenue Service or a designee of the Secretary at a United States diplomatic mission or consular post.</text>
</subparagraph>
</paragraph>
<paragraph id="H82F42932072E48268B6A3ED24E95C5CC">
<enum>(2)</enum>
<header>Required documentation</header>
<text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph id="H118EDD7E1F8B47E9B8412DE3718DA0CD">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">The term <term>required documentation</term> includes such documentation as the Secretary may require that proves the individual’s identity, foreign status, and residency.</text>
</subparagraph>
<subparagraph id="H9333DB53246948FC896D3E975B6C7376">
<enum>(B)</enum>
<header>Validity of documents</header>
<text display-inline="yes-display-inline">The Secretary may accept only original documents or certified copies meeting the requirements of the Secretary.</text>
</subparagraph>
</paragraph>
<paragraph id="H259F5C42C71240E39677CEF0F55386ED">
<enum>(3)</enum>
<header>Term of ITIN</header>
<subparagraph id="H20733254C4BC4C3E80907261D4AC34CD">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">An individual taxpayer identification number issued after December 31, 2012, shall remain in effect unless the individual to whom such number is issued does not file a return of tax (or is not included as a dependent on the return of tax of another taxpayer) for 3 consecutive taxable years. In the case of an individual described in the preceding sentence, such number shall expire on the last day of such third consecutive taxable year.</text>
</subparagraph>
<subparagraph id="H5A6D6E62B146426CB97B0B2CD52360D6">
<enum>(B)</enum>
<header>Special rule for existing ITINs</header>
<text>In the case of an individual with respect to whom an individual taxpayer identification number was issued before January 1, 2013, such number shall remain in effect until the earlier of—</text>
<clause id="H9D506F988FB54D81A514D2E4EFCD9668">
<enum>(i)</enum>
<text>the applicable date, or</text>
</clause>
<clause id="HFA7ED2643FE0475DA68C069A2BFBA576">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">if the individual does not file a return of tax (or is not included as a dependent on the return of tax of another taxpayer) for 3 consecutive taxable years, the earlier of—</text>
<subclause id="HE6E6E98E2221490599E8D1F6A4285476">
<enum>(I)</enum>
<text display-inline="yes-display-inline">the last day of such third consecutive taxable year, or</text>
</subclause>
<subclause commented="no" id="HEC8A544EF41540C7AB36CBE95A557ACD">
<enum>(II)</enum>
<text display-inline="yes-display-inline">the last day of the taxable year that includes the date of the enactment of this subsection.</text>
</subclause>
</clause>
</subparagraph>
<subparagraph commented="no" id="HADCAEC2A7E7840C8B498CA680CED3727">
<enum>(C)</enum>
<header>Applicable date</header>
<text>For purposes of subparagraph (B), the term <term>applicable date</term> means—</text>
<clause commented="no" id="HFF634FA38D574C87B58D66B1221CAB12">
<enum>(i)</enum>
<text>January 1, 2017, in the case of an individual taxpayer identification number issued before January 1, 2008,</text>
</clause>
<clause commented="no" id="H14C33FFF38854846B8625463F37B9BBB">
<enum>(ii)</enum>
<text>January 1, 2018, in the case of an individual taxpayer identification number issued in 2008,</text>
</clause>
<clause commented="no" id="H3A96359012D141FC976956D90D63F2EB">
<enum>(iii)</enum>
<text>January 1, 2019, in the case of an individual taxpayer identification number issued in 2009 or 2010, and</text>
</clause>
<clause commented="no" id="H39D4C01F04B545F7A3BC593E23023D20">
<enum>(iv)</enum>
<text>January 1, 2020, in the case of an individual taxpayer identification number issued in 2011 or 2012.</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="H868DE88BCA7847C39EE9B244D6E83882">
<enum>(4)</enum>
<header>Distinguishing ITINs issued solely for purposes of treaty benefits</header>
<text>The Secretary shall implement a system that ensures that individual taxpayer identification numbers issued solely for purposes of claiming tax treaty benefits are used only for such purposes, by distinguishing such numbers from other individual taxpayer identification numbers issued.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H81712BCAF8ED43A7BDFDA5409380EF91">
<enum>(b)</enum>
<header>Audit by TIGTA</header>
<text>Not later than 2 years after the date of the enactment of this Act, and every 2 years thereafter, the Treasury Inspector General for Tax Administration shall conduct an audit of the program of the Internal Revenue Service for the issuance of individual taxpayer identification numbers pursuant to section 6109(i) of the Internal Revenue Code of 1986 (as added by this section) and report the results of such audit to the Committee on Finance of the Senate and the Committee on the Ways and Means of the House of Representatives.</text>
</subsection>
<subsection id="H3E2D8886F4704ED7B908028D1B2B1F5D">
<enum>(c)</enum>
<header>Community-based certified acceptance agents</header>
<text>The Secretary of the Treasury, or the Secretary’s delegate, shall maintain a program for training and approving community-based certified acceptance agents for purposes of section 6109(i)(1)(A)(i) of the Internal Revenue Code of 1986 (as added by this section). Persons eligible to be acceptance agents under such program include—</text>
<paragraph id="HD05A652AD09B4A1A848DCA659E3D10B6">
<enum>(1)</enum>
<text>financial institutions (as defined in section 265(b)(5) of such Code and the regulations thereunder),</text>
</paragraph>
<paragraph id="H49F68BB0A0A2435DBF98A5D1CE343070">
<enum>(2)</enum>
<text>colleges and universities which are described in section 501(c)(3) of such Code and exempt from taxation under section 501(a) of such Code,</text>
</paragraph>
<paragraph id="H971FC8231D2140D19BAF77207181615B">
<enum>(3)</enum>
<text>Federal agencies (as defined in section 6402(h) of such Code),</text>
</paragraph>
<paragraph id="H1027EA1E22924234B66D82C64F2FD11E">
<enum>(4)</enum>
<text>State and local governments, including agencies responsible for vital records,</text>
</paragraph>
<paragraph id="H4AACF07EF8F7424ABE54D8D897927775">
<enum>(5)</enum>
<text>community-based organizations which are described in subsection (c)(3) or (d) of section 501 of such Code and exempt from taxation under section 501(a) of such Code,</text>
</paragraph>
<paragraph id="H958928886A2840A69DC3673287E98850">
<enum>(6)</enum>
<text>persons that provide assistance to taxpayers in the preparation of their tax returns, and</text>
</paragraph>
<paragraph id="HEDBD39E21DA0479E819919E037F7DFDA">
<enum>(7)</enum>
<text>other persons or categories of persons as authorized by regulations or other guidance of the Secretary of the Treasury.</text>
</paragraph>
</subsection>
<subsection id="HDC5FC0FAFA5243C9906B04AD00C35E02">
<enum>(d)</enum>
<header>ITIN study</header>
<paragraph id="HA8D811F8A0C84CB6B553473B6ACF500E">
<enum>(1)</enum>
<header>In general</header>
<text>The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study on the effectiveness of the application process for individual taxpayer identification numbers before the implementation of the amendments made by this section, the effects of the amendments made by this section on such application process, the comparative effectiveness of an in-person review process for application versus other methods of reducing fraud in the ITIN program and improper payments to ITIN holders as a result, and possible administrative and legislative recommendations to improve such process.</text>
</paragraph>
<paragraph id="H2EC654F32EC74EFBB7E22A2261484DE7">
<enum>(2)</enum>
<header>Specific requirements</header>
<text>Such study shall include an evaluation of the following:</text>
<subparagraph id="H2EB5E28F5B8C4DA58DAE076FFE3A48E3">
<enum>(A)</enum>
<text>Possible administrative and legislative recommendations to reduce fraud and improper payments through the use of individual taxpayer identification numbers (hereinafter referred to as <quote>ITINs</quote>).</text>
</subparagraph>
<subparagraph id="HFCD2224323344AFEA612D04B78B32F27">
<enum>(B)</enum>
<text>If data supports an in-person initial review of ITIN applications to reduce fraud and improper payments, the administrative and legislative steps needed to implement such an in-person initial review of ITIN applications, in conjunction with an expansion of the community-based certified acceptance agent program under subsection (c), with a goal of transitioning to such a program by 2020.</text>
</subparagraph>
<subparagraph id="H08933E58869947A680E4E37A4318693C">
<enum>(C)</enum>
<text>Strategies for more efficient processing of ITIN applications.</text>
</subparagraph>
<subparagraph id="H05711A9CD0C64F6CB78273DA947DAA33">
<enum>(D)</enum>
<text>The acceptance agent program as in existence on the date of the enactment of this Act and ways to expand the geographic availability of agents through the community-based certified acceptance agent program under subsection (c).</text>
</subparagraph>
<subparagraph id="HBCB047C04C2D4618B6E70348FEF0C2CA">
<enum>(E)</enum>
<text>Strategies for the Internal Revenue Service to work with other Federal agencies, State and local governments, and other organizations and persons described in subsection (c) to encourage participation in the community-based certified acceptance agent program under subsection (c) to facilitate in-person initial review of ITIN applications.</text>
</subparagraph>
<subparagraph id="H6D18B93E79C448CBBE06D6EDDC87A6FB">
<enum>(F)</enum>
<text>Typical characteristics (derived from Form W–7 and other sources) of mail applications for ITINs as compared with typical characteristics of in-person applications.</text>
</subparagraph>
<subparagraph id="HE071F30ABB0B47B8BA2F525E312AC5B9">
<enum>(G)</enum>
<text>Typical characteristics (derived from 17 Form W–7 and other sources) of ITIN applications before the Internal Revenue Service revised its application procedures in 2012 as compared with typical characteristics of ITIN applications made after such revisions went into effect.</text>
</subparagraph>
</paragraph>
<paragraph id="HE911E17A2D084F239AE0654405A2A5BE">
<enum>(3)</enum>
<header>Report</header>
<text>The Secretary, or the Secretary’s delegate, shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report detailing the study under paragraph (1) and its findings not later than 1 year after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="HA3B7C0051AA94B69BA746ADEB9F95227">
<enum>(4)</enum>
<header>Administrative steps</header>
<text>The Secretary of the Treasury shall implement any administrative steps identified by the report under paragraph (3) not later than 180 days after submitting such report.</text>
</paragraph>
</subsection>
<subsection id="H846CA8DCD5D9440B9C56E69360238E4F">
<enum>(e)</enum>
<header>Mathematical or clerical error authority</header>
<text>Paragraph (2) of section 6213(g) of the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at the end of subparagraph (M), by striking the period at the end of subparagraph (N) and inserting <quote>, and</quote>, and by inserting after subparagraph (N) the following new subparagraph:</text>
<quoted-block act-name="" id="H14ECEFD3A2154D0E9A3F84DE2FF457C1" style="OLC">
<subparagraph id="HF0F50B05817B46D186CB92E40B6E2A4C">
<enum>(O)</enum>
<text>the inclusion on a return of an individual taxpayer identification number issued under section 6109(i) which has expired, been revoked by the Secretary, or is otherwise invalid.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H118DE72E75A44F5E88A27E59981191E7">
<enum>(f)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to applications for individual taxpayer identification numbers made after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HDAB9C4B5321243318E608CB7E701C705">
<enum>204.</enum>
<header>Prevention of retroactive claims of earned income credit after issuance of social security number</header>
<subsection id="H608742DF24C14D2CBB280F3B390D792B">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 32(m) is amended by inserting <quote>on or before the due date for filing the return for the taxable year</quote> before the period at the end.</text>
</subsection>
<subsection id="H8FD08A23F30646E9AE777A55570D9C50">
<enum>(b)</enum>
<header>Effective date</header>
<paragraph id="H204243B642644CA18C6F04556761080A">
<enum>(1)</enum>
<header>In general</header>
<text>Except as provided in paragraph (2), the amendment made by this section shall apply to any return of tax, and any amendment or supplement to any return of tax, which is filed after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="H1405E7D04F414544980100B44EE5F605">
<enum>(2)</enum>
<header>Exception for timely-filed 2015 returns</header>
<text display-inline="yes-display-inline">The amendment made by this section shall not apply to any return of tax (other than an amendment or supplement to any return of tax) for any taxable year which includes the date of the enactment of this Act if such return is filed on or before the due date for such return of tax.</text>
</paragraph>
</subsection>
</section>
<section id="HB06269E7BB40432FBE70F3C5E624DBB0">
<enum>205.</enum>
<header>Prevention of retroactive claims of child tax credit</header>
<subsection id="HBC090985A7B54939A3DF62089C323D6E">
<enum>(a)</enum>
<header>Qualifying child identification requirement</header>
<text display-inline="yes-display-inline">Section 24(e) is amended by inserting <quote>and such taxpayer identification number was issued on or before the due date for filing such return</quote> before the period at the end.</text>
</subsection>
<subsection id="HC24434CD3D75433FAA71CE19C35C5098">
<enum>(b)</enum>
<header>Taxpayer identification requirement</header>
<text>Section 24(e), as amended by subsection (a) is amended—</text>
<paragraph id="H166D070EDCA3403FA8EBF0E9DF6FA72B">
<enum>(1)</enum>
<text>by striking <quote><header-in-text level="subsection" style="OLC">Identification requirement</header-in-text>.—No credit shall be allowed</quote> and inserting the following:</text>
<quoted-block style="OLC" id="HE3167F0605EE4120B0C47FAB85EBC911" display-inline="yes-display-inline">
<text display-inline="yes-display-inline">
<header-in-text level="subsection" style="OLC">Identification requirements.—</header-in-text>
</text>
<paragraph id="H9BC8B4DDC3804BCFB205B4D2363E07F3">
<enum>(1)</enum>
<header>Qualifying child identification requirement</header>
<text display-inline="yes-display-inline">No credit shall be allowed</text>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H3F5ED34D96844214BDDC3C1258BC5609">
<enum>(2)</enum>
<text>by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H2A7726A6BFFA44C195BEED22C3519228" display-inline="no-display-inline">
<paragraph id="H0D7F8D8E1A1042FCA644A1989AF75E70">
<enum>(2)</enum>
<header>Taxpayer identification requirement</header>
<text display-inline="yes-display-inline">No credit shall be allowed under this section if the identifying number of the taxpayer was issued after the due date for filing the return for the taxable year.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HFE01DBAE8CC1432C872A0F315A7CA4DF">
<enum>(c)</enum>
<header>Effective date</header>
<paragraph id="H8250AC72B90044DB9953CA390D50E512">
<enum>(1)</enum>
<header>In general</header>
<text>The amendments made by this section shall apply to any return of tax, and any amendment or supplement to any return of tax, which is filed after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="HCF8CF7F2D7EE40438294CF08E62E112B">
<enum>(2)</enum>
<header>Exception for timely-filed 2015 returns</header>
<text display-inline="yes-display-inline">The amendments made by this section shall not apply to any return of tax (other than an amendment or supplement to any return of tax) for any taxable year which includes the date of the enactment of this Act if such return is filed on or before the due date for such return of tax.</text>
</paragraph>
</subsection>
</section>
<section id="HA313929FC8E74BA8AAA90BC86CF6DA40">
<enum>206.</enum>
<header>Prevention of retroactive claims of American opportunity tax credit</header>
<subsection id="H3D254C18885042BE827529611FE19FD0">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 25A(i) is amended—</text>
<paragraph id="HF97840C3D9CD43BD9B0121E25A9AEB80">
<enum>(1)</enum>
<text>by striking paragraph (6), and</text>
</paragraph>
<paragraph id="H4007636232594F4D871E3B33472F7C49">
<enum>(2)</enum>
<text>by inserting after paragraph (5) the following new paragraph:</text>
<quoted-block style="OLC" id="H0628E626C02B4196BF381CFB0F01224D" display-inline="no-display-inline">
<paragraph id="H2FC9F70A29F44B978CE541DA1F535809">
<enum>(6)</enum>
<header>Identification numbers</header>
<subparagraph id="H33D75E4A82124334B9B9DD16E75835FE">
<enum>(A)</enum>
<header>Student</header>
<text>The requirements of subsection (g)(1) shall not be treated as met with respect to the Hope Scholarship Credit unless the individual’s taxpayer identification number was issued on or before the due date for filing the return of tax for the taxable year.</text>
</subparagraph>
<subparagraph id="H445C12EC5BCF4FBB87A05E19FD984E4A">
<enum>(B)</enum>
<header>Taxpayer</header>
<text>No Hope Scholarship Credit shall be allowed under this section if the identifying number of the taxpayer was issued after the due date for filing the return for the taxable year.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HC69AF35DDDC84C158C0EE16399DC8453">
<enum>(b)</enum>
<header>Effective dates</header>
<paragraph id="H6E64EDB5E09C48A89DB37670B5BDAD24">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendment made by subsection (a)(2) shall apply to any return of tax, and any amendment or supplement to any return of tax, which is filed after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="HE0A430700D28478C86A1CDC8B9A2D64A">
<enum>(2)</enum>
<header>Exception for timely-filed 2015 returns</header>
<text display-inline="yes-display-inline">The amendment made by subsection (a)(2) shall not apply to any return of tax (other than an amendment or supplement to any return of tax) for any taxable year which includes the date of the enactment of this Act if such return is filed on or before the due date for such return of tax.</text>
</paragraph>
<paragraph id="H73E2CBF216DB4A5F99AFDD4F6310A9C3">
<enum>(3)</enum>
<header>Repeal of deadwood</header>
<text>The amendment made by subsection (a)(1) shall take effect on the date of the enactment of this Act.</text>
</paragraph>
</subsection>
</section>
<section id="HF0E9443D797142DBA3349172947ABEED" section-type="subsequent-section">
<enum>207.</enum>
<header>Procedures to reduce improper claims</header>
<subsection id="HED5AE0514D4A42F0B0A34587E637505E">
<enum>(a)</enum>
<header>Due diligence requirements</header>
<text>Section 6695(g) is amended—</text>
<paragraph id="H9FD4B91F065F45819203E612CF6448E6">
<enum>(1)</enum>
<text>by striking <quote>section 32</quote>and inserting <quote>section 24, 25A(a)(1), or 32</quote>, and</text>
</paragraph>
<paragraph id="H3B4358887BBB403D8C0B1E9BE025CA6C">
<enum>(2)</enum>
<text>in the heading by inserting <quote><header-in-text level="subsection" style="OLC">child tax credit; American opportunity tax credit; and</header-in-text></quote> before <quote><header-in-text level="subsection" style="OLC">earned income credit</header-in-text></quote>.</text>
</paragraph>
</subsection>
<subsection id="H265CE5BFF6D3490A949FE55DCCE16134">
<enum>(b)</enum>
<header>Return preparer due diligence study</header>
<paragraph id="HEDD4B37054244862897C986EA32D9F2E">
<enum>(1)</enum>
<header>In general</header>
<text>The Secretary of the Treasury, or his delegate, shall conduct a study of the effectiveness of tax return preparer due diligence requirements for claiming the earned income tax credit under section 32 of the Internal Revenue Code of 1986, the child tax credit under section 24 of such Code, and the American opportunity tax credit under section 25A(i) of such Code.</text>
</paragraph>
<paragraph id="H19AC82F2B87646A4AE315F358E61309A">
<enum>(2)</enum>
<header>Requirements</header>
<text>Such study shall include an evaluation of the following:</text>
<subparagraph id="H0C63C43B692B4F92A7EB3F33587EFBE2">
<enum>(A)</enum>
<text display-inline="yes-display-inline">The effectiveness of the questions currently asked as part of the due-diligence requirement with respect to minimizing error and fraud.</text>
</subparagraph>
<subparagraph id="H9FB8B7FD7D1A4DB4868B1DAD8B72DB52">
<enum>(B)</enum>
<text display-inline="yes-display-inline">Whether all such questions are necessary and support improved compliance.</text>
</subparagraph>
<subparagraph id="H7F6C73D3740A4A4FA72EBB8C7617D4A8">
<enum>(C)</enum>
<text display-inline="yes-display-inline">The comparative effectiveness of such questions relative to other means of determining (i) eligibility for these tax credits and (ii) the correct amount of tax credit.</text>
</subparagraph>
<subparagraph id="HECEA20A7C7014DD1B20FB24583EDAFAA">
<enum>(D)</enum>
<text display-inline="yes-display-inline">Whether due diligence of this type should apply to other methods of tax filing and whether such requirements should vary based on the methods to increase effectiveness.</text>
</subparagraph>
<subparagraph id="H54FC113BC55A4C6EB002AB7573A94449">
<enum>(E)</enum>
<text display-inline="yes-display-inline">The effectiveness of the preparer penalty under section 6695(g) in enforcing the due diligence requirements.</text>
</subparagraph>
</paragraph>
<paragraph id="H8037B35BC60041A98DCCF664776A5AC5">
<enum>(3)</enum>
<header>Report</header>
<text>The Secretary, or his delegate, shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report detailing the study and its findings—</text>
<subparagraph id="H7D669E90E8574E5C85092E8D9188E8F8">
<enum>(A)</enum>
<text display-inline="yes-display-inline">in the case of the portion of the study that relates to the earned income tax credit, not later than 1 year after the date of enactment of this Act, and</text>
</subparagraph>
<subparagraph id="HABB46DE9D9DC49EEA666F5C840F1C875">
<enum>(B)</enum>
<text>in the case of the portions of the study that relate to the child tax credit and the American opportunity tax credit, not later than 2 years after the date of the enactment of this Act.</text>
</subparagraph>
</paragraph>
</subsection>
<subsection id="H1F495545B18849BDADB64F77892F18CD">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="HE867E9CB9F8646DCB1705D257EFF7122" commented="no">
<enum>208.</enum>
<header>Restrictions on taxpayers who improperly claimed credits in prior year</header>
<subsection id="H09138917F13C4FD2BF384E1C0694816F" commented="no">
<enum>(a)</enum>
<header>Restrictions</header>
<paragraph id="H2DA4DC9332EB4910A05882F332D44D09" commented="no">
<enum>(1)</enum>
<header>Child tax credit</header>
<text>Section 24 is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H1995967938834C81837B70FC86E82DDE" display-inline="no-display-inline">
<subsection id="HD0DC760E65B24E98824CD58FFB65088D" commented="no">
<enum>(g)</enum>
<header>Restrictions on taxpayers who improperly claimed credit in prior year</header>
<text display-inline="yes-display-inline" />
<paragraph id="H51F03B85B86E4C3488042456126AD55C" commented="no">
<enum>(1)</enum>
<header>Taxpayers making prior fraudulent or reckless claims</header>
<subparagraph id="HAFB88D48AB5A4A7EB5F7C2BD4B306271" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text>No credit shall be allowed under this section for any taxable year in the disallowance period.</text>
</subparagraph>
<subparagraph id="H4AA8D1F102314C38A15951CADE309D33" commented="no">
<enum>(B)</enum>
<header>Disallowance period</header>
<text>For purposes of subparagraph (A), the disallowance period is—</text>
<clause id="HD35B4C567CB143C9A1B85C50AA76D34E" commented="no">
<enum>(i)</enum>
<text>the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and</text>
</clause>
<clause id="H9266D9B13BC7448B95C4A487C997B531" commented="no">
<enum>(ii)</enum>
<text>the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="H20AF396B25964358B045CA85EE6857A7" commented="no">
<enum>(2)</enum>
<header>Taxpayers making improper prior claims</header>
<text>In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HB59EEDE0DDA347FB96F05BC4CCB5A191">
<enum>(2)</enum>
<header>American opportunity tax credit</header>
<text display-inline="yes-display-inline">Section 25A(i), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HD31C7BBA46234B259CD1E7EEC053D35B" display-inline="no-display-inline">
<paragraph id="H8AB35608B8D54BB58C091A2F2245C059" commented="no">
<enum>(7)</enum>
<header>Restrictions on taxpayers who improperly claimed credit in prior year</header>
<subparagraph id="HC6DA24DEC2A4484BA4C21775C249ECA9" commented="no">
<enum>(A)</enum>
<header>Taxpayers making prior fraudulent or reckless claims</header>
<clause id="HBD8AEF913089441F8B05A0348D5E78C1" commented="no">
<enum>(i)</enum>
<header>In general</header>
<text>No credit shall be allowed under this section for any taxable year in the disallowance period.</text>
</clause>
<clause id="H575D4F066C644730B37B35F04183B3D0" commented="no">
<enum>(ii)</enum>
<header>Disallowance period</header>
<text>For purposes of clause (i), the disallowance period is—</text>
<subclause id="H00CEB0926ADB4B3F9FD8DE77B2A4A2CD" commented="no">
<enum>(I)</enum>
<text>the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and</text>
</subclause>
<subclause id="H6D0FD95EC2514A70B7F521522AC05D0F" commented="no">
<enum>(II)</enum>
<text>the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).</text>
</subclause>
</clause>
</subparagraph>
<subparagraph id="H131C5AC3BA064958A006F2D8F0556C34" commented="no">
<enum>(B)</enum>
<header>Taxpayers making improper prior claims</header>
<text>In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H5F93971D96B64F70946E3461773151CC">
<enum>(b)</enum>
<header>Math error authority</header>
<paragraph id="HF580DC9DA5DC4DEF942C18A0F215C074">
<enum>(1)</enum>
<header>Earned income tax credit</header>
<text>Section 6213(g)(2)(K) is amended by inserting before the comma at the end the following: <quote>or an entry on the return claiming the credit under section 32 for a taxable year for which the credit is disallowed under subsection (k)(1) thereof</quote>.</text>
</paragraph>
<paragraph id="H692910EF62CA4FC7A2A893F55CFC04ED">
<enum>(2)</enum>
<header>American opportunity tax credit and child tax credit</header>
<text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of subparagraph (N), by striking the period at the end of subparagraph (O), and by inserting after subparagraph (O) the following new subparagraphs:</text>
<quoted-block style="OLC" id="H55E5781D379742C6A365096AF8A6F87D" display-inline="no-display-inline">
<subparagraph id="H84DA8FB3104E41E5A83BEA5A959B054E">
<enum>(P)</enum>
<text display-inline="yes-display-inline">an omission of information required by section 24(h)(2) or an entry on the return claiming the credit under section 24 for a taxable year for which the credit is disallowed under subsection (h)(1) thereof, and</text>
</subparagraph>
<subparagraph id="H300C5B0721B0454788A6A980679AEAA9">
<enum>(Q)</enum>
<text display-inline="yes-display-inline">an omission of information required by section 25A(i)(8)(B) or an entry on the return claiming the credit determined under section 25A(i) for a taxable year for which the credit is disallowed under paragraph (8)(A) thereof.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HA30AD1113656442C9EBC4342D2DE7220" commented="no">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H33132AED00D94ADC96BE4ED7CBC7DD7F">
<enum>209.</enum>
<header>Treatment of credits for purposes of certain penalties</header>
<subsection id="HAE510C86DA2B4956AB3CE4DEFBAEF8D5">
<enum>(a)</enum>
<header>Application of underpayment penalties</header>
<text>Section 6664(a) is amended by adding at the end the following: <quote>A rule similar to the rule of section 6211(b)(4) shall apply for purposes of this subsection.</quote>.</text>
</subsection>
<subsection id="H8C388BE99BAC4FACA4FD9ABD0CE06BFE">
<enum>(b)</enum>
<header>Penalty for erroneous claim of credit made applicable to earned income credit</header>
<text>Section 6676(a) is amended by striking <quote>(other than a claim for a refund or credit relating to the earned income credit under section 32)</quote>.</text>
</subsection>
<subsection id="HB4DB40F100394A63A1EE9AE1E59F76E2">
<enum>(c)</enum>
<header>Reasonable cause exception for erroneous claim for refund or credit</header>
<paragraph id="H2E7D72BB4ECC4C84BC3A85DE890F21D1">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 6676(a) is amended by striking <quote>has a reasonable basis</quote> and inserting <quote>is due to reasonable cause</quote>.</text>
</paragraph>
<paragraph id="HFE94FAF8D58D461C809BD0F07E5A707C">
<enum>(2)</enum>
<header>Noneconomic substance transactions</header>
<text>Section 6676(c) is amended by striking <quote>having a reasonable basis</quote> and inserting <quote>due to reasonable cause</quote>. </text>
</paragraph>
</subsection>
<subsection id="HDBB37359B4C6490BB061B0E50A2D8940">
<enum>(d)</enum>
<header>Effective dates</header>
<paragraph id="HE913D00FFBA0473F8699E45A89386132">
<enum>(1)</enum>
<header>Underpayment penalties</header>
<text>The amendment made by subsection (a) shall apply to—</text>
<subparagraph id="H5D34DE30CDC74A01A28BB88A59DBCCEF">
<enum>(A)</enum>
<text>returns filed after the date of the enactment of this Act, and</text>
</subparagraph>
<subparagraph id="H10EB23CEF495405186F723322C04629A">
<enum>(B)</enum>
<text>returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 for assessment of the taxes with respect to which such return relates has not expired as of such date.</text>
</subparagraph>
</paragraph>
<paragraph id="H98B2D45C34FA4350B2DFF105E08A630E">
<enum>(2)</enum>
<header>Penalty for erroneous claim of credit</header>
<text>The amendment made by subsection (b) shall apply to claims filed after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
</section>
<section id="H691913A4B2A346CEA85AC4051EDC170F">
<enum>210.</enum>
<header>Increase the penalty applicable to paid tax preparers who engage in willful or reckless conduct</header>
<subsection id="H19C51325D1554579A6F900EDD122302C">
<enum>(a)</enum>
<header>In general</header>
<text>Section 6694(b)(1)(B) is amended by striking <quote>50 percent</quote> and inserting <quote>75 percent</quote>.</text>
</subsection>
<subsection id="H9CFBDB5CD67C4C45BFB8CE702D97998A">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to returns prepared for taxable years ending after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H2F7DB3F7E40047478DEF8666CB1B1845">
<enum>211.</enum>
<header>Employer identification number required for American opportunity tax credit</header>
<subsection id="H68722EC3EC3242018B455AEBDB908394">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 25A(i)(6), as added by this Act, is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H55054F5992D944D880E893ADAC378AFF" display-inline="no-display-inline">
<subparagraph id="HAD16CF90242B4CA99936CAF317AEA743">
<enum>(C)</enum>
<header>Institution</header>
<text display-inline="yes-display-inline">No Hope Scholarship Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which qualified tuition and related expenses were paid with respect to the individual.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H6CB940EFF2DD44EEBE4197DB9EB12C9A">
<enum>(b)</enum>
<header>Information reporting</header>
<text>Section 6050S(b)(2) is amended by striking <quote>and</quote> at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:</text>
<quoted-block style="OLC" id="H5A4A8AFEADEC4004BC59FE0513F78DC4" display-inline="no-display-inline">
<subparagraph id="H408A9FD7AD37478983A463D030639CC4">
<enum>(C)</enum>
<text display-inline="yes-display-inline">the employer identification number of the institution, and</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HE59F884133A949C0AF45E986B7B9CEB6">
<enum>(c)</enum>
<header>Effective date</header>
<paragraph id="HFC92BDCD36DA47108C81EE4A5AA583CE">
<enum>(1)</enum>
<header>Subsection <enum-in-header>(a)</enum-in-header></header>
<text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2015.</text>
</paragraph>
<paragraph id="H0E9393C05294499DA3556CD8683E85F1">
<enum>(2)</enum>
<header>Subsection <enum-in-header>(b)</enum-in-header></header>
<text>The amendments made by subsection (b) shall apply to expenses paid after December 31, 2015, for education furnished in academic periods beginning after such date.</text>
</paragraph>
</subsection>
</section>
<section id="H6505E7A1B83F4204BC215369672FC028">
<enum>212.</enum>
<header>Higher education information reporting only to include qualified tuition and related expenses actually paid</header>
<subsection id="H973BCF821502479DAADA3CBF1539D1FC">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 6050S(b)(2)(B)(i) is amended by striking <quote>or the aggregate amount billed</quote>.</text>
</subsection>
<subsection id="H58C919557DCC41118BE46DA276292311">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by subsection (b) shall apply to expenses paid after December 31, 2015, for education furnished in academic periods beginning after such date.</text>
</subsection>
</section>
<enum>III</enum>
<header>Miscellaneous provisions</header>
<subtitle id="H536ED99CF56B42C288E897593B67125D">
<enum>A</enum>
<header>Family tax relief</header>
<section id="H1BD6E1B791734438A825CC3A9C61EE80" section-type="subsequent-section">
<enum>301.</enum>
<header>Exclusion for amounts received under the Work Colleges Program</header>
<subsection id="HFF52D579AFE949449D113A14D8A5E673">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Paragraph (2) of section 117(c) is amended by striking <quote>or</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H48A0873CA58547318369FAE8FF7C8A6D" style="OLC">
<subparagraph id="H1E9A54A12A5240DCA7AC8D79025F5485">
<enum>(C)</enum>
<text>a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in such section).</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H595EA921D0654535AB70692B886421F2">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to amounts received in taxable years beginning after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H469B5AC3293244EF83AA6C052230A6B7">
<enum>302.</enum>
<header>Improvements to section 529 accounts</header>
<subsection id="HC5E2C2A66E934DC2B73102C69B23558B">
<enum>(a)</enum>
<header>Computer technology and equipment permanently allowed as a qualified higher education expense for section 529 accounts</header>
<paragraph id="HFBD6C69521954EF2860B8EB7ED0A1BE9">
<enum>(1)</enum>
<header>In general</header>
<text>Section 529(e)(3)(A)(iii) is amended to read as follows:</text>
<quoted-block style="OLC" id="HFB3784A4FF6A40809C0E9FDD5DC0E350" display-inline="no-display-inline">
<clause id="HDC5D995DE57A43C8BE127A4F7C2BC0B9">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">expenses for the purchase of computer or peripheral equipment (as defined in section 168(i)(2)(B)), computer software (as defined in section 197(e)(3)(B)), or Internet access and related services, if such equipment, software, or services are to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HCBDF08156D854567A2F6B9671E3DBAAC">
<enum>(2)</enum>
<header>Effective date</header>
<text>The amendment made by this subsection shall apply to taxable years beginning after December 31, 2014.</text>
</paragraph>
</subsection>
<subsection id="H0A32D4AF9B484A1096A39FC26968F710">
<enum>(b)</enum>
<header>Elimination of distribution aggregation requirements</header>
<paragraph id="HA1947FDEB3684E728DAC7BB484BE0DAC">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 529(c)(3) is amended by striking subparagraph (D).</text>
</paragraph>
<paragraph id="H6D2421E450A54FA29FB55C6D6AF78482">
<enum>(2)</enum>
<header>Effective date</header>
<text>The amendment made by this subsection shall apply to distributions after December 31, 2014.</text>
</paragraph>
</subsection>
<subsection id="HD7FCBCE981264ABAB9932E0CC4C5B8D6">
<enum>(c)</enum>
<header>Recontribution of refunded amounts</header>
<paragraph id="H329A81A2C68748E2AA12DF6E05C68E1A">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 529(c)(3), as amended by subsection (b), is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H3F5885F17BC64A2FADC12F63A6AA7B01" style="OLC">
<subparagraph id="H76EA4BA0311643B488E80CBB9EADEC6D" display-inline="no-display-inline">
<enum>(D)</enum>
<header>Special rule for contributions of refunded amounts</header>
<text display-inline="yes-display-inline">In the case of a beneficiary who receives a refund of any qualified higher education expenses from an eligible educational institution, subparagraph (A) shall not apply to that portion of any distribution for the taxable year which is recontributed to a qualified tuition program of which such individual is a beneficiary, but only to the extent such recontribution is made not later than 60 days after the date of such refund and does not exceed the refunded amount.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HF3304405C82D49E6BA8D03AAD386FC53">
<enum>(2)</enum>
<header>Effective date</header>
<subparagraph id="H06E134A99AF84182B91554149F41CD48">
<enum>(A)</enum>
<header>In general</header>
<text>The amendment made by this subsection shall apply with respect to refunds of qualified higher education expenses after December 31, 2014.</text>
</subparagraph>
<subparagraph id="HC000486CA85E4BAE9E8D14A582B41F25">
<enum>(B)</enum>
<header>Transition rule</header>
<text>In the case of a refund of qualified higher education expenses received after December 31, 2014, and before the date of the enactment of this Act, section 529(c)(3)(D) of the Internal Revenue Code of 1986 (as added by this subsection) shall be applied by substituting <quote>not later than 60 days after the date of the enactment of this subparagraph</quote> for <quote>not later than 60 days after the date of such refund</quote>. </text>
</subparagraph>
</paragraph>
</subsection>
</section>
<section id="HEBFBF0D593B940A19B8CA0300D3834FD">
<enum>303.</enum>
<header>Elimination of residency requirement for qualified ABLE programs</header>
<subsection id="H24BABC89CE1B4DC485EB4F4F0159B205">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 529A(b)(1) is amended by striking subparagraph (C), by inserting <quote>and</quote> at the end of subparagraph (B), and by redesignating subparagraph (D) as subparagraph (C).</text>
</subsection>
<subsection id="HE2F97EBDA6504AA6AE6690E9B3D4BA60">
<enum>(b)</enum>
<header>Conforming amendments</header>
<paragraph id="H968FACDE1BD641029FA1A57E92285215">
<enum>(1)</enum>
<text display-inline="yes-display-inline">The second sentence of section 529A(d)(3) is amended by striking <quote>and State of residence</quote>.</text>
</paragraph>
<paragraph id="HD3EE99FA1E784CAA80D1D9677F85F153">
<enum>(2)</enum>
<text>Section 529A(e) is amended by striking paragraph (7).</text>
</paragraph>
</subsection>
<subsection id="HE1086F10FCB14644B5075EB7174AB5E6">
<enum>(c)</enum>
<header>Technical amendments</header>
<paragraph id="H509810AC502643ADA47E3C00A3F25A10">
<enum>(1)</enum>
<text display-inline="yes-display-inline">Section 529A(d)(4) is amended by striking <quote>section 4</quote> and inserting <quote>section 103</quote>.</text>
</paragraph>
<paragraph id="H69643924C40F452DBA240F6C63400056">
<enum>(2)</enum>
<text>Section 529A(c)(1)(C)(i) is amended by striking <quote>family member</quote> and inserting <quote>member of the family</quote>.</text>
</paragraph>
</subsection>
<subsection id="H7343520DD935482599AE1B12BF06B45C">
<enum>(d)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section id="HAC74081B8D5C4F0B89887A502C40719A">
<enum>304.</enum>
<header>Exclusion for wrongfully incarcerated individuals</header>
<subsection id="H104E77B149A341D4B80B80F367FAF9FF">
<enum>(a)</enum>
<header>In general</header>
<text>Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H48686EE5F97540A283C85BBA25C6574F" style="OLC">
<section id="H8F43875E8D434A8EA13BBBA52DA3B842">
<enum>139F.</enum>
<header>Certain amounts received by wrongfully incarcerated individuals</header>
<subsection id="H857BB29E786947D28591A7CAD5577024">
<enum>(a)</enum>
<header>Exclusion from gross income</header>
<text>In the case of any wrongfully incarcerated individual, gross income shall not include any civil damages, restitution, or other monetary award (including compensatory or statutory damages and restitution imposed in a criminal matter) relating to the incarceration of such individual for the covered offense for which such individual was convicted.</text>
</subsection>
<subsection id="H5773D367254E40969EC09069821CB16B">
<enum>(b)</enum>
<header>Wrongfully incarcerated individual</header>
<text>For purposes of this section, the term <term>wrongfully incarcerated individual</term> means an individual—</text>
<paragraph id="H888CB075CA3043CA95E3D1ED77C490D9">
<enum>(1)</enum>
<text>who was convicted of a covered offense,</text>
</paragraph>
<paragraph id="H787CC8F6E8B744A794990026A9ACBEB1">
<enum>(2)</enum>
<text>who served all or part of a sentence of imprisonment relating to that covered offense, and</text>
</paragraph>
<paragraph id="HD865EF8B28144B32A40139CFEF9CBD59">
<enum>(3)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="HE72F0F702A604D439F4FCF4C3483F8E4">
<enum>(A)</enum>
<text>who was pardoned, granted clemency, or granted amnesty for that covered offense because that individual was innocent of that covered offense, or</text>
</subparagraph>
<subparagraph id="HE66356DE225847408BEF0F409FEF565A" indent="up1">
<enum>(B)</enum>
<clause commented="no" display-inline="yes-display-inline" id="HE5672C0E99FC4D30A0DC30090CD8B7D4">
<enum>(i)</enum>
<text>for whom the judgment of conviction for that covered offense was reversed or vacated, and</text>
</clause>
<clause id="H5A649268756B4F33BA469906F13EDB81" indent="up1">
<enum>(ii)</enum>
<text>for whom the indictment, information, or other accusatory instrument for that covered offense was dismissed or who was found not guilty at a new trial after the judgment of conviction for that covered offense was reversed or vacated.</text>
</clause>
</subparagraph>
</paragraph>
</subsection>
<subsection id="H037BE4D869C643A4B3F920F4ECC5F892">
<enum>(c)</enum>
<header>Covered offense</header>
<text>For purposes of this section, the term <term>covered offense</term> means any criminal offense under Federal or State law, and includes any criminal offense arising from the same course of conduct as that criminal offense.</text>
</subsection>
</section>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HC1D6918E764A4053AA8FB06C50150B12">
<enum>(b)</enum>
<header>Conforming amendment</header>
<text>The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 139E the following new item:</text>
<quoted-block id="H93883AC44E90476B84EBCAD09FB6D978" style="OLC">
<toc>
<toc-entry idref="H8F43875E8D434A8EA13BBBA52DA3B842" level="section">Sec. 139F. Certain amounts received by wrongfully incarcerated individuals.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H9C7AE4DB79A44D1891D31C9B355D073D">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning before, on, or after the date of the enactment of this Act.</text>
</subsection>
<subsection id="HA4BC8C08E7D74112AF075B89EAD813A4">
<enum>(d)</enum>
<header>Waiver of limitations</header>
<text display-inline="yes-display-inline">If the credit or refund of any overpayment of tax resulting from the application of this Act to a period before the date of enactment of this Act is prevented as of such date by the operation of any law or rule of law (including res judicata), such credit or refund may nevertheless be allowed or made if the claim therefor is filed before the close of the 1-year period beginning on the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HFC0EC3BE3888495CB7C45A7F76497132" section-type="subsequent-section">
<enum>305.</enum>
<header>Clarification of special rule for certain governmental plans</header>
<subsection id="H79206C8F3DF64239940A257A829C5B74">
<enum>(a)</enum>
<header>In general</header>
<text>Paragraph (1) of section 105(j) is amended—</text>
<paragraph id="H962FE37E36984F948648F9305F4068CC">
<enum>(1)</enum>
<text>by striking <quote>the taxpayer</quote> and inserting <quote>a qualified taxpayer</quote>, and</text>
</paragraph>
<paragraph id="H6AF9B719437042CFA102B671D5B508CE">
<enum>(2)</enum>
<text>by striking <quote>deceased plan participant's beneficiary</quote> and inserting <quote>deceased employee's beneficiary (other than an individual described in paragraph (3)(B))</quote>.</text>
</paragraph>
</subsection>
<subsection id="HD5C28FE6DBE64DB690A8B000E4632562">
<enum>(b)</enum>
<header>Qualified taxpayer</header>
<text>Subsection (j) of section 105 is amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="" id="HEFA3F91B49C84BC1824874BE445055C6" style="OLC">
<paragraph id="H587C690A982444F9AF27B70CBB128D12">
<enum>(3)</enum>
<header>Qualified taxpayer</header>
<text>For purposes of paragraph (1), with respect to an accident or health plan described in paragraph (2), the term <term>qualified taxpayer</term> means a taxpayer who is—</text>
<subparagraph id="HDDAA76D7CEE540EABABF73706EE8F7DB">
<enum>(A)</enum>
<text>an employee, or</text>
</subparagraph>
<subparagraph id="HCED9828AE67841AD9ECE02E14CAEE22D">
<enum>(B)</enum>
<text>the spouse, dependent (as defined for purposes of subsection (b)), or child (as defined for purposes of such subsection) of an employee.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H9C0983904ACE494C9D233E949D8C6997">
<enum>(c)</enum>
<header>Application to political subdivisions of States</header>
<text>Paragraph (2) of section 105(j) is amended—</text>
<paragraph id="H8F4187B98FBD4F3C8BE13FCEA5487830">
<enum>(1)</enum>
<text>by inserting <quote>or established by or on behalf of a State or political subdivision thereof</quote> after <quote>public retirement system</quote>, and</text>
</paragraph>
<paragraph id="H80A00B4EC9014DF7B01D32EDFFD6B35D">
<enum>(2)</enum>
<text>by inserting <quote>or 501(c)(9)</quote> after <quote>section 115</quote> in subparagraph (B).</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H766769025D6B4C4580C6D8F24BDC59D3">
<enum>(d)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to payments after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H7305336666C7468B8B79FF94C4693AFE" section-type="subsequent-section">
<enum>306.</enum>
<header>Rollovers permitted from other retirement plans into simple retirement accounts</header>
<subsection id="HDFB11AC9984D4AFCAC92796E376B2530">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 408(p)(1)(B) is amended by inserting <quote>except in the case of a rollover contribution described in subsection (d)(3)(G) or a rollover contribution otherwise described in subsection (d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), which is made after the 2-year period described in section 72(t)(6),</quote> before <quote>with respect to which the only contributions allowed</quote>.</text>
</subsection>
<subsection id="HB08C5F1255064ED5AB73D901CE952A03">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HCAA4797E474F49F09C03BEC0F4E0424D" section-type="subsequent-section">
<enum>307.</enum>
<header>Technical amendment relating to rollover of certain airline payment amounts</header>
<subsection id="HAE736B5BD59C4E6DAF15CB03F2946277">
<enum>(a)</enum>
<header>In general</header>
<text>Section 1106(a) of the FAA Modernization and Reform Act of 2012 (26 U.S.C. 408 note) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H351ECD579B724725B341FE3344735CA1" style="OLC">
<paragraph id="HF6D0303207DF43B9AFC2530E5B604B0E">
<enum>(6)</enum>
<header>Special rule for certain airline payment amounts</header>
<text>In the case of any amount which became an airline payment amount by reason of the amendments made by section 1(b) of Public Law 113–243 (26 U.S.C. 408 note), paragraph (1) shall be applied by substituting <quote>(or, if later, within the period beginning on December 18, 2014, and ending on the date which is 180 days after the date of enactment of the <short-title>Protecting Americans from Tax Hikes Act of 2015</short-title>)</quote> for <quote>(or, if later, within 180 days of the date of the enactment of this Act)</quote>.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H1FCED27FD3EA408B8496BC1CD045452E">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall take effect as if included in Public Law 113–243 (26 U.S.C. 408 note).</text>
</subsection>
</section>
<section id="H723C5D1917C543CE8090E624962E3456" section-type="subsequent-section">
<enum>308.</enum>
<header>Treatment of early retirement distributions for nuclear materials couriers, United States Capitol Police, Supreme Court Police, and diplomatic security special agents</header>
<subsection id="H45CC8FEDAD784036AE82704057417822">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 72(t)(10)(B)(ii), as added by Public Law 114–26, is amended by striking <quote>or any</quote> and inserting <quote>any</quote> and by inserting before the period at the end the following: <quote>, any nuclear materials courier described in section 8331(27) or 8401(33) of such title, any member of the United States Capitol Police, any member of the Supreme Court Police, or any diplomatic security special agent of the Department of State</quote>.</text>
</subsection>
<subsection id="H95B4AF4016DF49EB9960027178A738AD">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to distributions after December 31, 2015.</text>
</subsection>
</section>
<section id="HCF33B9F875B0433086B118DAF2423225" section-type="subsequent-section">
<enum>309.</enum>
<header>Prevention of extension of tax collection period for members of the Armed Forces who are hospitalized as a result of combat zone injuries</header>
<subsection id="H64541EBB693748DE8984EC3F5B2E9BAF">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 7508(e) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H85702B21723C4757AA1B999DD4DF652A" style="OLC">
<paragraph id="HEC66B7F5A60E4E46924E4F1FD7C3646A">
<enum>(3)</enum>
<header>Collection period after assessment not extended as a result of hospitalization</header>
<text>With respect to any period of continuous qualified hospitalization described in subsection (a) and the next 180 days thereafter, subsection (a) shall not apply in the application of section 6502.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H60D231A9E99B4C09830E357DD2CC8059">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxes assessed before, on, or after the date of the enactment of this Act.</text>
</subsection>
</section>
</subtitle>
<subtitle id="H464E9BB86CC64A2B86108F4AD2636ACD">
<enum>B</enum>
<header>Real estate investment trusts</header>
<section id="H14E4472599A7496D94099E25F3409CAE">
<enum>311.</enum>
<header>Restriction on tax-free spinoffs involving REITs</header>
<subsection id="H5E95E68AAFFF48A3B1C769D58C807CF3">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 355 is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="HB49EC24F0A6C406785BC1DC57C59122A" display-inline="no-display-inline">
<subsection id="HE1962333CD804B3FBE8DD006D2D7D86F">
<enum>(h)</enum>
<header>Restriction on distributions involving real estate investment trusts</header>
<paragraph id="H540CE70B6E294708A2C74326A4F2C688">
<enum>(1)</enum>
<header>In general</header>
<text>This section (and so much of section 356 as relates to this section) shall not apply to any distribution if either the distributing corporation or controlled corporation is a real estate investment trust.</text>
</paragraph>
<paragraph id="H74A5EC51FFAA4C49A48174CD41D5701A">
<enum>(2)</enum>
<header>Exceptions for certain spinoffs</header>
<subparagraph id="H5B54667DD2E14265A8E6C96258575B1B">
<enum>(A)</enum>
<header>Spinoffs of a real estate investment trust by another real estate investment trust</header>
<text display-inline="yes-display-inline">Paragraph (1) shall not apply to any distribution if, immediately after the distribution, the distributing corporation and the controlled corporation are both real estate investment trusts.</text>
</subparagraph>
<subparagraph id="H643576C066834B45AA79907F8ABB337E">
<enum>(B)</enum>
<header>Spinoffs of certain taxable REIT subsidiaries</header>
<text>Paragraph (1) shall not apply to any distribution if—</text>
<clause id="H0CD01FD713C34C5CA48057C808C1BE4F">
<enum>(i)</enum>
<text display-inline="yes-display-inline">the distributing corporation has been a real estate investment trust at all times during the 3-year period ending on the date of such distribution,</text>
</clause>
<clause id="H4AB809CC165746C2898459F3B1413B55">
<enum>(ii)</enum>
<text>the controlled corporation has been a taxable REIT subsidiary (as defined in section 856(l)) of the distributing corporation at all times during such period, and</text>
</clause>
<clause id="HAD89F0D07A584082A59AE0E4942A7A61">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">the distributing corporation had control (as defined in section 368(c) applied by taking into account stock owned directly or indirectly, including through one or more corporations or partnerships, by the distributing corporation) of the controlled corporation at all times during such period.</text>
</clause>
<continuation-text continuation-text-level="subparagraph">A controlled corporation will be treated as meeting the requirements of clauses (ii) and (iii) if the stock of such corporation was distributed by a taxable REIT subsidiary in a transaction to which this section (or so much of section 356 as relates to this section) applies and the assets of such corporation consist solely of the stock or assets of assets held by one or more taxable REIT subsidiaries of the distributing corporation meeting the requirements of clauses (ii) and (iii). For purposes of clause (iii), control of a partnership means ownership of 80 percent of the profits interest and 80 percent of the capital interests.</continuation-text>
</subparagraph>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H8AC25AE403284D29B658AFAB780B1744">
<enum>(b)</enum>
<header>Prevention of REIT election following tax-free spin off</header>
<text>Section 856(c) is amended by redesignating paragraph (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph:</text>
<quoted-block style="OLC" id="HDE0A96B1150845B495C524498BC5385D" display-inline="no-display-inline">
<paragraph id="HA6038E43E5CF4A1CA914DD28A7B9B92A">
<enum>(8)</enum>
<header>Election after tax-free reorganization</header>
<text display-inline="yes-display-inline">If a corporation was a distributing corporation or a controlled corporation (other than a controlled corporation with respect to a distribution described in section 355(h)(2)(A)) with respect to any distribution to which section 355 (or so much of section 356 as relates to section 355) applied, such corporation (and any successor corporation) shall not be eligible to make any election under paragraph (1) for any taxable year beginning before the end of the 10-year period beginning on the date of such distribution.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H7667DC59E819430B97A7CED14A6CC62F">
<enum>(c)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply to distributions on or after December 7, 2015, but shall not apply to any distribution pursuant to a transaction described in a ruling request initially submitted to the Internal Revenue Service on or before such date, which request has not been withdrawn and with respect to which a ruling has not been issued or denied in its entirety as of such date.</text>
</subsection>
</section>
<section id="HFAB4D997BD9842F5A6DBDA35819CDA8B">
<enum>312.</enum>
<header>Reduction in percentage limitation on assets of REIT which may be taxable REIT subsidiaries</header>
<subsection id="H6813D322C6744483930EE3D2902EF721">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 856(c)(4)(B)(ii) is amended by striking <quote>25 percent</quote> and inserting <quote>20 percent</quote>.</text>
</subsection>
<subsection id="HAC37EB0163764D0B84B6117E21D80F28">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to taxable years beginning after December 31, 2017.</text>
</subsection>
</section>
<section id="HE9292B9A3F4140F99641E38122889389">
<enum>313.</enum>
<header>Prohibited transaction safe harbors</header>
<subsection id="H0E90D80503DE476C971B9139FEC87885">
<enum>(a)</enum>
<header>Alternative 3–Year averaging test for percentage of assets that can be sold annually</header>
<paragraph id="H31D39C65C944403F935B384BCF7A61C4">
<enum>(1)</enum>
<header>In general</header>
<text>Clause (iii) of section 857(b)(6)(C) is amended by inserting before the semicolon at the end the following: <quote>, or (IV) the trust satisfies the requirements of subclause (II) applied by substituting <quote>20 percent</quote> for <quote>10 percent</quote> and the 3-year average adjusted bases percentage for the taxable year (as defined in subparagraph (G)) does not exceed 10 percent, or (V) the trust satisfies the requirements of subclause (III) applied by substituting <quote>20 percent</quote> for <quote>10 percent</quote> and the 3-year average fair market value percentage for the taxable year (as defined in subparagraph (H)) does not exceed 10 percent</quote>.</text>
</paragraph>
<paragraph id="H8A95BE973C954980B679B54B30A409F6">
<enum>(2)</enum>
<header>3-year average adjusted bases and fair market value percentages</header>
<text display-inline="yes-display-inline">Paragraph (6) of section 857(b) is amended by redesignating subparagraphs (G) and (H) as subparagraphs (I) and (J), respectively, and by inserting after subparagraph (F) the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H9987DFFCF80E4D5C8774AEDD7F42B9B0" style="OLC">
<subparagraph id="H1EFBB0751A5B418280EBD4885A92CD21">
<enum>(G)</enum>
<header>3-year average adjusted bases percentage</header>
<text display-inline="yes-display-inline">The term <term>3-year average adjusted bases percentage</term> means, with respect to any taxable year, the ratio (expressed as a percentage) of—</text>
<clause id="H06563933CAE54545B8900752BDF29E6D">
<enum>(i)</enum>
<text display-inline="yes-display-inline">the aggregate adjusted bases (as determined for purposes of computing earnings and profits) of property (other than sales of foreclosure property or sales to which section 1033 applies) sold during the 3 taxable year period ending with such taxable year, divided by</text>
</clause>
<clause id="HA58ABC3713044F8DBFD2958036B67D99">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">the sum of the aggregate adjusted bases (as so determined) of all of the assets of the trust as of the beginning of each of the 3 taxable years which are part of the period referred to in clause (i).</text>
</clause>
</subparagraph>
<subparagraph id="H4122607C054B46BABAA8309B3735C3FD">
<enum>(H)</enum>
<header>3-year average fair market value percentage</header>
<text display-inline="yes-display-inline">The term <term>3-year average fair market value percentage</term> means, with respect to any taxable year, the ratio (expressed as a percentage) of—</text>
<clause id="HBFC1F3F269644ACFB34BECBFC845AFFC">
<enum>(i)</enum>
<text display-inline="yes-display-inline">the fair market value of property (other than sales of foreclosure property or sales to which section 1033 applies) sold during the 3 taxable year period ending with such taxable year, divided by</text>
</clause>
<clause id="HACC7F4E10EC84ED79CB4A2C897F6DCF2">
<enum>(ii)</enum>
<text>the sum of the fair market value of all of the assets of the trust as of the beginning of each of the 3 taxable years which are part of the period referred to in clause (i).</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H7D824EC3E2134FEABDE64216056A4EA1">
<enum>(3)</enum>
<header>Conforming amendments</header>
<text>Clause (iv) of section 857(b)(6)(D) is amended by adding <quote>or</quote> at the end of subclause (III) and by adding at the end the following new subclauses:</text>
<quoted-block display-inline="no-display-inline" id="H1FD9C330048440C199D284D133B9F3CF" style="OLC">
<subclause id="HB61781F1CC014D1F895B136658B4C91F">
<enum>(IV)</enum>
<text display-inline="yes-display-inline">the trust satisfies the requirements of subclause (II) applied by substituting <quote>20 percent</quote> for <quote>10 percent</quote> and the 3-year average adjusted bases percentage for the taxable year (as defined in subparagraph (G)) does not exceed 10 percent, or</text>
</subclause>
<subclause id="H2D16E18E286D4C9091E7FAA8B50AE973">
<enum>(V)</enum>
<text>the trust satisfies the requirements of subclause (III) applied by substituting <quote>20 percent</quote> for <quote>10 percent</quote> and the 3-year average fair market value percentage for the taxable year (as defined in subparagraph (H)) does not exceed 10 percent,</text>
</subclause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HB3C7B7C85BB9414BA2983851E56F8D5A">
<enum>(b)</enum>
<header>Application of safe harbors independent of determination whether real estate asset is inventory property</header>
<paragraph id="H364908CD51F54A318D2A27FB40869388">
<enum>(1)</enum>
<header>In general</header>
<text>Subparagraphs (C) and (D) of section 857(b)(6) are each amended by striking <quote>and which is described in section 1221(a)(1)</quote> in the matter preceding clause (i).</text>
</paragraph>
<paragraph id="HB09AB2C695C144808AB9182E2ABBF2C9">
<enum>(2)</enum>
<header>No inference from safe harbors</header>
<text>Subparagraph (F) of section 857(b)(6) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H27EE9C5D5E0246B0BC930BD21EE46274" style="OLC">
<subparagraph id="H330F1BBFE5A24F40AD2115ADDFF3069C">
<enum>(F)</enum>
<header>No inference with respect to treatment as inventory property</header>
<text display-inline="yes-display-inline">The determination of whether property is described in section 1221(a)(1) shall be made without regard to this paragraph.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection display-inline="no-display-inline" id="HEE527BF710C74331A86350C56D569236">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="H4BB975E87D304A689805BFAB0704C8B7">
<enum>(1)</enum>
<header>In general</header>
<text>The amendments made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="H57FEF41D6C094772A8549004B3FD64E2">
<enum>(2)</enum>
<header>Application of safe harbors</header>
<subparagraph id="HB74AC8CD57504187828A2071B37FAB7C">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Except as provided in subparagraph (B), the amendments made by subsection (b) shall take effect as if included in section 3051 of the Housing Assistance Tax Act of 2008.</text>
</subparagraph>
<subparagraph id="H6F991DF89D3C488098902A3C9E3BC9CF">
<enum>(B)</enum>
<header>Retroactive application of no inference not applicable to certain timber property previously treated as not inventory property</header>
<text display-inline="yes-display-inline">The amendment made by subsection (b)(2) shall not apply to any sale of property to which section 857(b)(6)(G) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act) applies.</text>
</subparagraph>
</paragraph>
</subsection>
</section>
<section id="HB5F221781CA24AC8A5BF08A15BCF3505">
<enum>314.</enum>
<header>Repeal of preferential dividend rule for publicly offered REITs</header>
<subsection id="HBE32708A9DB7460585B777AE62265018">
<enum>(a)</enum>
<header>In general</header>
<text>Section 562(c) is amended by inserting <quote>or a publicly offered REIT</quote> after <quote>a publicly offered regulated investment company (as defined in section 67(c)(2)(B))</quote>.</text>
</subsection>
<subsection id="H528C2FFA0EBA494A85B62277A7CF1614">
<enum>(b)</enum>
<header>Publicly offered REIT</header>
<text>Section 562(c), as amended by subsection (a), is amended—</text>
<paragraph id="H148271E8C9294D83B9DB295C42C2B51C">
<enum>(1)</enum>
<text>by striking <quote>Except in the case of</quote> and inserting the following: </text>
<quoted-block style="OLC" id="HE7496BCDE84A4AA0BDE2A9D89901332B" display-inline="no-display-inline">
<paragraph id="HBAAFA09BBC614D008BE8F6B0F1239543">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Except in the case of</text>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HB4CE0F50FB294F4EB8393CA85847DE74">
<enum>(2)</enum>
<text>by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H554AA563362F4114AA4545316D0E738A" display-inline="no-display-inline">
<paragraph id="HE8373C9C524A44CB843B92DF5FE188CE">
<enum>(2)</enum>
<header>Publicly offered REIT</header>
<text display-inline="yes-display-inline">For purposes of this subsection, the term <term>publicly offered REIT</term> means a real estate investment trust which is required to file annual and periodic reports with the Securities and Exchange Commission under the Securities Exchange Act of 1934.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H277DA7E01F0F4559A8935D5EAFFBCC01">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to distributions in taxable years beginning after December 31, 2014.</text>
</subsection>
</section>
<section commented="no" id="HA67DCB80FCA94ACAB29841D1C1578C62">
<enum>315.</enum>
<header>Authority for alternative remedies to address certain REIT distribution failures</header>
<subsection commented="no" id="HA7CA610E2A4A444EA83AD33D67B823A4">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Subsection (e) of section 562 is amended—</text>
<paragraph id="H69D42CD73DA74E27BA906659EE091908">
<enum>(1)</enum>
<text>by striking <quote>In the case of a real estate investment trust</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H36B9DE3300664BFCA970078F4E5F2355" style="OLC">
<paragraph id="HEFD9499F069148AA8DF32C967C572055">
<enum>(1)</enum>
<header>Determination of earnings and profits for purposes of dividends paid deduction</header>
<text display-inline="yes-display-inline">In the case of a real estate investment trust</text>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H3D972F0E4C2F4989BBF15C2579134700">
<enum>(2)</enum>
<text>by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H71BA5E9622604B0BA496E526BF06ECA6" style="OLC">
<paragraph id="H5BB0C0DB446547639347787E20333150">
<enum>(2)</enum>
<header>Authority to provide alternative remedies for certain failures</header>
<text>In the case of a failure of a distribution by a real estate investment trust to comply with the requirements of subsection (c), the Secretary may provide an appropriate remedy to cure such failure in lieu of not considering the distribution to be a dividend for purposes of computing the dividends paid deduction if—</text>
<subparagraph id="H2794B0E5C69F49B8B3735CFB44EFB7FC">
<enum>(A)</enum>
<text>the Secretary determines that such failure is inadvertent or is due to reasonable cause and not due to willful neglect, or</text>
</subparagraph>
<subparagraph id="HFFA983B08156487680D5DDB9DEF5075D">
<enum>(B)</enum>
<text>such failure is of a type of failure which the Secretary has identified for purposes of this paragraph as being described in subparagraph (A).</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" id="HFB9404748D3441A6B948906F008E053C">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply to distributions in taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H57541F77A2FA49EEA6BFBC370520388D">
<enum>316.</enum>
<header>Limitations on designation of dividends by REITs</header>
<subsection id="H5B5B9EB720B1487F893A3A3CA8B7775B">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 857 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9E381E43DCDB49E199ED0BF502746E2D" style="OLC">
<subsection id="HA4223DE834364A578BF3A6C449F3CE2B">
<enum>(g)</enum>
<header>Limitations on designation of dividends</header>
<paragraph id="HEA9A1E68D4D049C898ADCBE4A1F9962C">
<enum>(1)</enum>
<header>Overall limitation</header>
<text display-inline="yes-display-inline">The aggregate amount of dividends designated by a real estate investment trust under subsections (b)(3)(C) and (c)(2)(A) with respect to any taxable year may not exceed the dividends paid by such trust with respect to such year. For purposes of the preceding sentence, dividends paid after the close of the taxable year described in section 858 shall be treated as paid with respect to such year.</text>
</paragraph>
<paragraph id="HD826573E2142462885A4730615B49AFC">
<enum>(2)</enum>
<header>Proportionality</header>
<text display-inline="yes-display-inline">The Secretary may prescribe regulations or other guidance requiring the proportionality of the designation of particular types of dividends among shares or beneficial interests of a real estate investment trust.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H301387CA3C4744E095E134B831865C05">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to distributions in taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section display-inline="no-display-inline" id="H613DFFB03371429A8037B4373B125220" section-type="subsequent-section">
<enum>317.</enum>
<header>Debt instruments of publicly offered REITs and mortgages treated as real estate assets</header>
<subsection id="H40AD0DE0CB0D46BAB709EF1EF04D1EE0">
<enum>(a)</enum>
<header>Debt instruments of publicly offered REITs treated as real estate assets</header>
<paragraph id="HE4485082D387496EADB657590E30687D">
<enum>(1)</enum>
<header>In general</header>
<text>Subparagraph (B) of section 856(c)(5) is amended—</text>
<subparagraph id="H26DFFC0B1B9243F4B135AC8D29B45B6A">
<enum>(A)</enum>
<text>by striking <quote>and shares</quote> and inserting <quote>, shares</quote>, and</text>
</subparagraph>
<subparagraph id="HA01340FEC1ED40F9B2E5E21A99B2DD3A">
<enum>(B)</enum>
<text>by inserting <quote>, and debt instruments issued by publicly offered REITs</quote> before the period at the end of the first sentence.</text>
</subparagraph>
</paragraph>
<paragraph id="H582BFCA2C08A47FFA9E0CBCEB7CF93F9">
<enum>(2)</enum>
<header>Income from nonqualified debt instruments of publicly offered REITs not qualified for purposes of satisfying the 75 percent gross income test</header>
<text display-inline="yes-display-inline">Subparagraph (H) of section 856(c)(3) is amended by inserting <quote>(other than a nonqualified publicly offered REIT debt instrument)</quote> after <quote>real estate asset</quote>.</text>
</paragraph>
<paragraph commented="no" id="H0CB7B6CAAB02415CAE7DDD640564A853">
<enum>(3)</enum>
<header>25 percent asset limitation on holding of nonqualified debt instruments of publicly offered REITs</header>
<text>Subparagraph (B) of section 856(c)(4) is amended by redesignating clause (iii) as clause (iv) and by inserting after clause (ii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H1BED8AA8DD044D74B77BCF9CCC14BC8C" style="OLC">
<clause commented="no" id="HF9F39836E2C94521B899350085A3E5B0">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">not more than 25 percent of the value of its total assets is represented by nonqualified publicly offered REIT debt instruments, and</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HE4ECB50F651D4C10BCDF25B2F091CA69">
<enum>(4)</enum>
<header>Definitions related to debt instruments of publicly offered REITs</header>
<text>Paragraph (5) of section 856(c) is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HBBB1B208683C4B78A38FFED725499406" style="OLC">
<subparagraph id="H4516317E2FA442548877D0B992B439E7" commented="no">
<enum>(L)</enum>
<header>Definitions related to debt instruments of publicly offered REITs</header>
<clause id="H74E524A61A9D4EA18C3E4A0E45059077" commented="no">
<enum>(i)</enum>
<header>Publicly offered REIT</header>
<text>The term <term>publicly offered REIT</term> has the meaning given such term by section 562(c)(2).</text>
</clause>
<clause id="H90BCF3E463E6466BA45AFD56A5EC2429" commented="no">
<enum>(ii)</enum>
<header>Nonqualified publicly offered REIT debt instrument</header>
<text>The term <term>nonqualified publicly offered REIT debt instrument</term> means any real estate asset which would cease to be a real estate asset if subparagraph (B) were applied without regard to the reference to <quote>debt instruments issued by publicly offered REITs</quote>.</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HCF82073072924D4EBCA0EFE211F9F8E5">
<enum>(b)</enum>
<header>Interests in mortgages on interests in real property treated as real estate assets</header>
<text>Subparagraph (B) of section 856(c)(5) is amended by inserting <quote>or on interests in real property</quote> after <quote>interests in mortgages on real property</quote>.</text>
</subsection>
<subsection id="H0E696C707E3F40C78CDFE64B0DB430D0">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H99420B056713488EB200C6B65A4519FC">
<enum>318.</enum>
<header>Asset and income test clarification regarding ancillary personal property</header>
<subsection id="HE7C81796793A460699ACC4C5AC8D5EE7">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Subsection (c) of section 856, as amended by the preceding provisions of this Act, is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5ED69221173B499AA43A0FB6EF813938" style="OLC">
<paragraph id="H4593F8BD87804FFEA6A1BD2BC76C0565">
<enum>(9)</enum>
<header>Special rules for certain personal property which is ancillary to real property</header>
<subparagraph id="HABCFE876B11D4314B566BACD28DC9D1A">
<enum>(A)</enum>
<header>Certain personal property leased in connection with real property</header>
<text display-inline="yes-display-inline">Personal property shall be treated as a real estate asset for purposes of paragraph (4)(A) to the extent that rents attributable to such personal property are treated as rents from real property under subsection (d)(1)(C).</text>
</subparagraph>
<subparagraph id="HCE93143FFEEA48C09BFF7A9CBC0831FC">
<enum>(B)</enum>
<header>Certain personal property mortgaged in connection with real property</header>
<text display-inline="yes-display-inline">In the case of an obligation secured by a mortgage on both real property and personal property, if the fair market value of such personal property does not exceed 15 percent of the total fair market value of all such property, such obligation shall be treated—</text>
<clause id="H39119F73C31545C1B2F29365E4A778F4">
<enum>(i)</enum>
<text>for purposes of paragraph (3)(B), as an obligation described therein, and</text>
</clause>
<clause id="H29159DBE02CD4ADC889AF3B82B28F1F8">
<enum>(ii)</enum>
<text>for purposes of paragraph (4)(A), as a real estate asset.</text>
</clause>
<continuation-text continuation-text-level="subparagraph">For purposes of the preceding sentence, the fair market value of all such property shall be determined in the same manner as the fair market value of real property is determined for purposes of apportioning interest income between real property and personal property under paragraph (3)(B).</continuation-text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H34CA22BA50344F9F80DA976F73677576">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section commented="no" id="H5EAE4AFD9F244221845CFBCD5CA50776">
<enum>319.</enum>
<header>Hedging provisions</header>
<subsection commented="no" id="H574AB35D36FF4F4FA4118C0BD1EFC1B2">
<enum>(a)</enum>
<header>Modification to permit the termination of a hedging transaction using an additional hedging instrument</header>
<text display-inline="yes-display-inline">Subparagraph (G) of section 856(c)(5) is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HE35454E257E0458F941CA74AD7960E2C" style="OLC">
<clause id="HD37A4E94F40F4E3BA3827A5FEECF9677">
<enum>(iii)</enum>
<text>if—</text>
<subclause id="H3B9E3B50646E432D84A42BAC22F467B6">
<enum>(I)</enum>
<text>a real estate investment trust enters into one or more positions described in clause (i) with respect to indebtedness described in clause (i) or one or more positions described in clause (ii) with respect to property which generates income or gain described in paragraph (2) or (3),</text>
</subclause>
<subclause id="H4DBA0EBB489C405286116C74450FCDC8">
<enum>(II)</enum>
<text>any portion of such indebtedness is extinguished or any portion of such property is disposed of, and</text>
</subclause>
<subclause id="H69CEEF78A5A24F3A8D7744D08CB19953">
<enum>(III)</enum>
<text>in connection with such extinguishment or disposition, such trust enters into one or more transactions which would be hedging transactions described in clause (ii) or (iii) of section 1221(b)(2)(A) with respect to any position referred to in subclause (I) if such position were ordinary property,</text>
</subclause>
<continuation-text continuation-text-level="clause">any income of such trust from any position referred to in subclause (I) and from any transaction referred to in subclause (III) (including gain from the termination of any such position or transaction) shall not constitute gross income under paragraphs (2) and (3) to the extent that such transaction hedges such position.</continuation-text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" id="H3D92FF861B1B409A8BEC839EEAAB094C">
<enum>(b)</enum>
<header>Identification requirements</header>
<paragraph id="HFC2DBCEF78A240E6924C7ECC54229FEF">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Subparagraph (G) of section 856(c)(5), as amended by subsection (a), is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HC249BB9E6E334469B688B557D1DFBAA0" style="OLC">
<clause id="H13D55CD637024F0D904154E13C6B7224">
<enum>(iv)</enum>
<text display-inline="yes-display-inline">clauses (i), (ii), and (iii) shall not apply with respect to any transaction unless such transaction satisfies the identification requirement described in section 1221(a)(7) (determined after taking into account any curative provisions provided under the regulations referred to therein).</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H693D15C796B54F77A260EEC586E44B26">
<enum>(2)</enum>
<header>Conforming amendments</header>
<text>Subparagraph (G) of section 856(c)(5) is amended—</text>
<subparagraph commented="no" id="HBB84E16250AA43FA83D74685C0CD365D">
<enum>(A)</enum>
<text>by striking <quote>which is clearly identified pursuant to section 1221(a)(7)</quote> in clause (i), and</text>
</subparagraph>
<subparagraph commented="no" id="HB838DC50E5FB48A5ADE2964F32FA8BDB">
<enum>(B)</enum>
<text>by striking <quote>, but only if such transaction is clearly identified as such before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may prescribe)</quote> in clause (ii).</text>
</subparagraph>
</paragraph>
</subsection>
<subsection commented="no" id="HFBB2562758C74155A47D4DA0E161CB79">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H76615D3AF4F547F0B89F7060A38EC015">
<enum>320.</enum>
<header>Modification of REIT earnings and profits calculation to avoid duplicate taxation</header>
<subsection id="HF2FE3CD19498460996CD807BFD495D1C">
<enum>(a)</enum>
<header>Earnings and profits not increased by amounts allowed in computing taxable income in prior years</header>
<text display-inline="yes-display-inline">Section 857(d) is amended—</text>
<paragraph id="HC39027810ADB4F18BCD6C1BDD06FFAD1">
<enum>(1)</enum>
<text>by amending paragraph (1) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H42461FDE7C2949E98642291DEFA29027" style="OLC">
<paragraph id="H8BCE2A9BE19640C6AD48F6953E0BDC3F">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">The earnings and profits of a real estate investment trust for any taxable year (but not its accumulated earnings) shall not be reduced by any amount which—</text>
<subparagraph id="HC4855F091F724657A02F483639894AB3">
<enum>(A)</enum>
<text>is not allowable in computing its taxable income for such taxable year, and</text>
</subparagraph>
<subparagraph id="H2EB95644EF8F47598280CFF9DFCC1D30">
<enum>(B)</enum>
<text>was not allowable in computing its taxable income for any prior taxable year.</text>
</subparagraph>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H6BABE0DFFC6D4747A3B997DC3D22A2CB">
<enum>(2)</enum>
<text>by adding at the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H009C0C5ED65E427393A0DA358F6F5E34" style="OLC">
<paragraph id="H842E38D1DFCF4B4AAEAF70F827CA532E">
<enum>(4)</enum>
<header>Real estate investment trust</header>
<text display-inline="yes-display-inline">For purposes of this subsection, the term <term>real estate investment trust</term> includes a domestic corporation, trust, or association which is a real estate investment trust determined without regard to the requirements of subsection (a).</text>
</paragraph>
<paragraph id="HA7E01390C19849099BFCAE295494753D">
<enum>(5)</enum>
<header>Special rules for determining earnings and profits for purposes of the deduction for dividends paid</header>
<text>For special rules for determining the earnings and profits of a real estate investment trust for purposes of the deduction for dividends paid, see section 562(e)(1).</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H36B4CE667BC04180A2C8F4EDFBACDCB5">
<enum>(b)</enum>
<header>Exception for purposes of determining dividends paid deduction</header>
<text>Section 562(e)(1), as amended by the preceding provisions of this Act, is amended by striking <quote>deduction, the earnings</quote> and all that follows and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="HC5C3EE8C2FDD49E6940897BCDF098AE0" style="OLC">
<text>deduction—</text>
<subparagraph id="HF1FC0C76A7B941C6AC8AD88B9FF4EB53">
<enum>(A)</enum>
<text display-inline="yes-display-inline">the earnings and profits of such trust for any taxable year (but not its accumulated earnings) shall be increased by the amount of gain (if any) on the sale or exchange of real property which is taken into account in determining the taxable income of such trust for such taxable year (and not otherwise taken into account in determining such earnings and profits), and</text>
</subparagraph>
<subparagraph id="H023C17E4182348C6AFE17EC7976252BE">
<enum>(B)</enum>
<text display-inline="yes-display-inline">section 857(d)(1) shall be applied without regard to subparagraph (B) thereof.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H440FF1EA950048F6A2EAC62CAC5E1FF7">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="HB57314D43E4E42B3AAF6C0C8437D176F">
<enum>321.</enum>
<header>Treatment of certain services provided by taxable REIT subsidiaries</header>
<subsection id="HB6E662A866274C03A56793EE83AD6277">
<enum>(a)</enum>
<header>Taxable REIT subsidiaries treated in same manner as independent contractors for certain purposes</header>
<paragraph id="H9BFEA751EE6E4FC8B0F2BCA5F5DFABEC">
<enum>(1)</enum>
<header>Marketing and development expenses under rental property safe harbor</header>
<text display-inline="yes-display-inline">Clause (v) of section 857(b)(6)(C) is amended by inserting <quote>or a taxable REIT subsidiary</quote> before the period at the end.</text>
</paragraph>
<paragraph id="H54A0F375EABE4A028EB31ACB642F833D">
<enum>(2)</enum>
<header>Marketing expenses under timber safe harbor</header>
<text display-inline="yes-display-inline">Clause (v) of section 857(b)(6)(D) is amended by striking “, in the case of a sale on or before the termination date,”.</text>
</paragraph>
<paragraph id="H52CA609D6D7B4A81A10549BF521E5A62">
<enum>(3)</enum>
<header>Foreclosure property grace period</header>
<text display-inline="yes-display-inline">Subparagraph (C) of section 856(e)(4) is amended by inserting <quote>or through a taxable REIT subsidiary</quote> after <quote>receive any income</quote>.</text>
</paragraph>
</subsection>
<subsection commented="no" id="H6E32FF564EC649B68FD0F3940104A776">
<enum>(b)</enum>
<header>Tax on redetermined TRS service income</header>
<paragraph id="H625D8374BDC64EC78D31A5AAB8787208">
<enum>(1)</enum>
<header>In general</header>
<text>Subparagraph (A) of section 857(b)(7) is amended by striking <quote>and excess interest</quote> and inserting <quote>excess interest, and redetermined TRS service income</quote>.</text>
</paragraph>
<paragraph id="HE95A18EC25D545E8B07F66E95396C1B7">
<enum>(2)</enum>
<header>Redetermined TRS service income</header>
<text>Paragraph (7) of section 857(b) is amended by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively, and inserting after subparagraph (D) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H87C7BF20E4F548ABA693CA58DC84A853" style="OLC">
<subparagraph id="H81C1B44FAAEA41C2AFBBB63C9DFCAFF0">
<enum>(E)</enum>
<header>Redetermined TRS service income</header>
<clause id="HA4B02495366E420F8229ED090418FA14">
<enum>(i)</enum>
<header>In general</header>
<text>The term <term>redetermined TRS service income</term> means gross income of a taxable REIT subsidiary of a real estate investment trust attributable to services provided to, or on behalf of, such trust (less deductions properly allocable thereto) to the extent the amount of such income (less such deductions) would (but for subparagraph (F)) be increased on distribution, apportionment, or allocation under section 482.</text>
</clause>
<clause id="H162B51D9A72342A3B3CAFC0B28D1065E">
<enum>(ii)</enum>
<header>Coordination with redetermined rents</header>
<text>Clause (i) shall not apply with respect to gross income attributable to services furnished or rendered to a tenant of the real estate investment trust (or to deductions properly allocable thereto).</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H22DB6C36B0C04BCA8EAE56C038FA8FD9">
<enum>(3)</enum>
<header>Conforming amendments</header>
<text>Subparagraphs (B)(i) and (C) of section 857(b)(7) are each amended by striking <quote>subparagraph (E)</quote> and inserting <quote>subparagraph (F)</quote>.</text>
</paragraph>
</subsection>
<subsection id="H5B62B6B1E32C43DAAC8C82D2DFB3D7C1">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H7535F77F43D84CDD9F1AEAB8FA68CFC3">
<enum>322.</enum>
<header>Exception from FIRPTA for certain stock of REITs</header>
<subsection id="HF87A346CC5FF4463AF9E9A1854514779">
<enum>(a)</enum>
<header>Modifications of ownership rules</header>
<paragraph id="H467C3D4C6817431CA8E1172484064A70">
<enum>(1)</enum>
<header>In general</header>
<text>Section 897 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H85323E5603DF4F5DA7DC6CEBD1B09DEF" style="OLC">
<subsection id="H9B50A074F84E48EC823CD2CAA8D317D0">
<enum>(k)</enum>
<header>Special rules relating to real estate investment trusts</header>
<paragraph id="H0E78D66617214F66BC505DE8E42C0C25">
<enum>(1)</enum>
<header>Increase in percentage ownership for exceptions for persons holding publicly traded stock</header>
<subparagraph id="HBAEC526CCA6B457C876C592F6505AC89">
<enum>(A)</enum>
<header>Dispositions</header>
<text>In the case of any disposition of stock in a real estate investment trust, paragraphs (3) and (6)(C) of subsection (c) shall each be applied by substituting <quote>more than 10 percent</quote> for <quote>more than 5 percent</quote>.</text>
</subparagraph>
<subparagraph id="HCAB8E9E9309D42BDB47A963A19B36C52">
<enum>(B)</enum>
<header>Distributions</header>
<text>In the case of any distribution from a real estate investment trust, subsection (h)(1) shall be applied by substituting <quote>10 percent</quote> for <quote>5 percent</quote>.</text>
</subparagraph>
</paragraph>
<paragraph id="HD78D406AFC8949AF975246166714DF50">
<enum>(2)</enum>
<header>Stock held by qualified shareholders not treated as USRPI</header>
<subparagraph id="H6E384FC787BD4ABDB93D959B96693ECC">
<enum>(A)</enum>
<header>In general</header>
<text>Except as provided in subparagraph (B)—</text>
<clause id="H978C9F6B884A451EA856CDEC23F92817">
<enum>(i)</enum>
<text>stock of a real estate investment trust which is held directly (or indirectly through 1 or more partnerships) by a qualified shareholder shall not be treated as a United States real property interest, and</text>
</clause>
<clause id="H86C7A4728C54458680F87188567A2D87">
<enum>(ii)</enum>
<text>notwithstanding subsection (h)(1), any distribution to a qualified shareholder shall not be treated as gain recognized from the sale or exchange of a United States real property interest to the extent the stock of the real estate investment trust held by such qualified shareholder is not treated as a United States real property interest under clause (i).</text>
</clause>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3864BA1CDE654AAF8C4A44DFABB25056">
<enum>(B)</enum>
<header display-inline="yes-display-inline">Exception</header>
<text display-inline="yes-display-inline">In the case of a qualified shareholder with 1 or more applicable investors—</text>
<clause commented="no" display-inline="no-display-inline" id="HBF41F56B0704407F97809B956420270A">
<enum>(i)</enum>
<text display-inline="yes-display-inline">subparagraph (A)(i) shall not apply to so much of the stock of a real estate investment trust held by a qualified shareholder as bears the same ratio to the value of the interests (other than interests held solely as a creditor) held by such applicable investors in the qualified shareholder bears to value of all interests (other than interests held solely as a creditor) in the qualified shareholder, and</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H8470EAA8E7ED4A20A88A7232A58F1BC1">
<enum>(ii)</enum>
<text>a percentage equal to the ratio determined under clause (i) of the amounts realized by the qualified shareholder with respect to any disposition of stock in the real estate investment trust or with respect to any distribution from the real estate investment trust attributable to gain from sales or exchanges of a United States real property interest shall be treated as amounts realized from the disposition of United States real property interests.</text>
</clause>
</subparagraph>
<subparagraph id="H3F074271E2CB4DA8B1F069882B07B347" commented="no">
<enum>(C)</enum>
<header>Special rule for certain distributions treated as sale or exchange</header>
<text display-inline="yes-display-inline">If a distribution by a real estate investment trust is treated as a sale or exchange of stock under section 301(c)(3), 302, or 331 with respect to a qualified shareholder— </text>
<clause id="HA957D6153D154B3F9C5CEAFC56373821" commented="no">
<enum>(i)</enum>
<text>in the case of an applicable investor, subparagraph (B) shall apply with respect to such distribution, and</text>
</clause>
<clause id="HE663BE20C182431CBD33E028127972B1" commented="no">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">in the case of any other person, such distribution shall be treated under section 857(b)(3)(F) as a dividend from a real estate investment trust notwithstanding any other provision of this title.</text>
</clause>
</subparagraph>
<subparagraph id="H07AFFB60A6E14CFC83DC39BC400A4C1E" commented="no">
<enum>(D)</enum>
<header>Applicable investor</header>
<text>For purposes of this paragraph, the term <term>applicable investor</term> means, with respect to any qualified shareholder holding stock in a real estate investment trust, a person (other than a qualified shareholder) which—</text>
<clause id="H47343605D93E4148AAE649FB83B2D183" commented="no">
<enum>(i)</enum>
<text>holds an interest (other than an interest solely as a creditor) in such qualified shareholder, and</text>
</clause>
<clause id="H0B417774A0B2491982B45828DB95259C" commented="no">
<enum>(ii)</enum>
<text>holds more than 10 percent of the stock of such real estate investment trust (whether or not by reason of the person’s ownership interest in the qualified shareholder).</text>
</clause>
</subparagraph>
<subparagraph id="HA608793C5C9E44CE9A865128D43C3136" commented="no">
<enum>(E)</enum>
<header>Constructive ownership rules</header>
<text>For purposes of subparagraphs (B)(i) and (C) and paragraph (4), the constructive ownership rules under subsection (c)(6)(C) shall apply.</text>
</subparagraph>
</paragraph>
<paragraph id="HE702DAA0078B497BA026CED775F13CBE">
<enum>(3)</enum>
<header>Qualified shareholder</header>
<text>For purposes of this subsection—</text>
<subparagraph id="H0D4538D152AA44FE891CDD250528CE2D">
<enum>(A)</enum>
<header>In general</header>
<text>The term <term>qualified shareholder</term> means a foreign person which—</text>
<clause id="H192DAD174DB74E8DBDEB1011359B6DB5">
<enum>(i)</enum>
<subclause id="H2B4CF5ECE9CA4951968E9EC836C48CA3" display-inline="yes-display-inline">
<enum>(I)</enum>
<text>is eligible for benefits of a comprehensive income tax treaty with the United States which includes an exchange of information program and the principal class of interests of which is listed and regularly traded on 1 or more recognized stock exchanges (as defined in such comprehensive income tax treaty), or</text>
</subclause>
<subclause id="HE7942E54C18D4B1EAD2131B59CF42CF9" indent="up1">
<enum>(II)</enum>
<text>is a foreign partnership that is created or organized under foreign law as a limited partnership in a jurisdiction that has an agreement for the exchange of information with respect to taxes with the United States and has a class of limited partnership units which is regularly traded on the New York Stock Exchange or Nasdaq Stock Market and such class of limited partnership units value is greater than 50 percent of the value of all the partnership units,</text>
</subclause>
</clause>
<clause id="H4C6231AB7AAB4D1085464679A6F2C496">
<enum>(ii)</enum>
<text>is a qualified collective investment vehicle, and</text>
</clause>
<clause id="HB8D4F0FD76F64A7DA34FFE33E6B5ACA0">
<enum>(iii)</enum>
<text>maintains records on the identity of each person who, at any time during the foreign person’s taxable year, holds directly 5 percent or more of the class of interest described in subclause (I) or (II) of clause (i), as the case may be.</text>
</clause>
</subparagraph>
<subparagraph id="H833A4ADD1B0240DE88CC30208D41E57F">
<enum>(B)</enum>
<header>Qualified collective investment vehicle</header>
<text>For purposes of this subsection, the term <term>qualified collective investment vehicle</term> means a foreign person—</text>
<clause id="H637C765B57E949A5A566021608281F46">
<enum>(i)</enum>
<text>which, under the comprehensive income tax treaty described in subparagraph (A)(i), is eligible for a reduced rate of withholding with respect to ordinary dividends paid by a real estate investment trust even if such person holds more than 10 percent of the stock of such real estate investment trust,</text>
</clause>
<clause id="H693ADC95773F42BD95C562AECBBA409B" display-inline="no-display-inline">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">which—</text>
<subclause id="H62DC697388D84B7D962D2E1513258927" display-inline="no-display-inline">
<enum>(I)</enum>
<text>is a publicly traded partnership (as defined in section 7704(b)) to which subsection (a) of section 7704 does not apply,</text>
</subclause>
<subclause id="H1992E93022D24B6A958997438A6F64ED" display-inline="no-display-inline">
<enum>(II)</enum>
<text display-inline="yes-display-inline">is a withholding foreign partnership for purposes of chapters 3, 4, and 61,</text>
</subclause>
<subclause id="HE31D405E0C75473C93881D9BB759B14D" display-inline="no-display-inline">
<enum>(III)</enum>
<text>if such foreign partnership were a United States corporation, would be a United States real property holding corporation (determined without regard to paragraph (1)) at any time during the 5-year period ending on the date of disposition of, or distribution with respect to, such partnership’s interests in a real estate investment trust, or</text>
</subclause>
</clause>
<clause id="HA6F9749C9EEB42F78BEA98E27C59DEDB">
<enum>(iii)</enum>
<text>which is designated as a qualified collective investment vehicle by the Secretary and is either—</text>
<subclause id="H189890BCC2C249ED8812A0816D3ED1D8">
<enum>(I)</enum>
<text>fiscally transparent within the meaning of section 894, or</text>
</subclause>
<subclause id="HF8A5151814FE41108BCC87AA74570A1A">
<enum>(II)</enum>
<text>required to include dividends in its gross income, but entitled to a deduction for distributions to persons holding interests (other than interests solely as a creditor) in such foreign person.</text>
</subclause>
</clause>
</subparagraph>
</paragraph>
<paragraph id="H50CF8E74AF4045FC831D4E68B1D954AB">
<enum>(4)</enum>
<header>Partnership allocations</header>
<subparagraph id="HA32DF737E41D423BAE0037E53D9C321B" commented="no">
<enum>(A)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">For the purposes of this subsection, in the case of an applicable investor who is a nonresident alien individual or a foreign corporation and is a partner in a partnership that is a qualified shareholder, if such partner’s proportionate share of USRPI gain for the taxable year exceeds such partner’s distributive share of USRPI gain for the taxable year, then</text>
<clause id="HD9EF47DEC51447F78E9640163BB233BF" commented="no">
<enum>(i)</enum>
<text display-inline="yes-display-inline">such partner’s distributive share of the amount of gain taken into account under subsection (a)(1) by the partner for the taxable year (determined without regard to this paragraph) shall be increased by the amount of such excess, and</text>
</clause>
<clause id="HB5237F75128846C8ACC18EEE4A249D95" commented="no">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">such partner’s distributive share of items of income or gain for the taxable year that are not treated as gain taken into account under subsection (a)(1) (determined without regard to this paragraph) shall be decreased (but not below zero) by the amount of such excess.</text>
</clause>
</subparagraph>
<subparagraph id="HEEB91D5474084C38AB75629CB60DC57F">
<enum>(B)</enum>
<header>USRPI gain</header>
<text display-inline="yes-display-inline">For the purposes of this paragraph, the term <term>USRPI gain</term> means the excess (if any) of—</text>
<clause id="H0921E7336D8E48048B0102B96C1D73DA">
<enum>(i)</enum>
<text>the sum of—</text>
<subclause id="HF20238CA98C34E228D6E89AF655B2B31">
<enum>(I)</enum>
<text>any gain recognized from the disposition of a United States real property interest, and</text>
</subclause>
<subclause id="HBB6019D7C5C84F25BF4ABEF69959146E">
<enum>(II)</enum>
<text>any distribution by a real estate investment trust that is treated as gain recognized from the sale or exchange of a United States real property interest, over</text>
</subclause>
</clause>
<clause id="H90E4DAA65BC74609B94BC2ECB8F72FC5">
<enum>(ii)</enum>
<text>any loss recognized from the disposition of a United States real property interest.</text>
</clause>
</subparagraph>
<subparagraph id="H6DAA13F3CB274FAAB5D82AF24EF7BBEA">
<enum>(C)</enum>
<header>Proportionate share of USRPI gain</header>
<text display-inline="yes-display-inline">For purposes of this paragraph, an applicable investor’s proportionate share of USRPI gain shall be determined on the basis of such investor’s share of partnership items of income or gain (excluding gain allocated under section 704(c)), whichever results in the largest proportionate share. If the investor’s share of partnership items of income or gain (excluding gain allocated under section 704(c)) may vary during the period such investor is a partner in the partnership, such share shall be the highest share such investor may receive.</text>
</subparagraph>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HFA631A2DA9D14F679055F25CB339F2B9">
<enum>(2)</enum>
<header>Conforming amendments</header>
<subparagraph id="HFE8AC3CA9D5C4EDFBC356DF12A3AFC02">
<enum>(A)</enum>
<text>Section 897(c)(1)(A) is amended by inserting <quote>or subsection (k)</quote> after <quote>subparagraph (B)</quote> in the matter preceding clause (i).</text>
</subparagraph>
<subparagraph id="H0882913EF38A43258E63CF6E552A85AB" commented="no">
<enum>(B)</enum>
<text>Section 857(b)(3)(F) is amended by inserting <quote>or subparagraph (A)(ii) or (C) of section 897(k)(2)</quote> after <quote>897(h)(1)</quote>.</text>
</subparagraph>
</paragraph>
</subsection>
<subsection id="H762B30A119094170B17886034AEBEF57">
<enum>(b)</enum>
<header>Determination of domestic control</header>
<paragraph id="H13ED5FA616D040C5B13A2E651E38AAD4">
<enum>(1)</enum>
<header>Special ownership rules</header>
<subparagraph id="HFC2343EA862D4277B7F066908D58CC96">
<enum>(A)</enum>
<header>In general</header>
<text>Section 897(h)(4) is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H55FEFA95F3024418B10A08E21E74D3F8" style="OLC">
<subparagraph id="H278D35446D2C4C6E807F7758CB4DD8F4">
<enum>(E)</enum>
<header>Special ownership rules</header>
<text display-inline="yes-display-inline">For purposes of determining the holder of stock under subparagraphs (B) and (C)—</text>
<clause id="H79174D56ED134BA2A21429A72E614CA4">
<enum>(i)</enum>
<text display-inline="yes-display-inline">in the case of any class of stock of the qualified investment entity which is regularly traded on an established securities market in the United States, a person holding less than 5 percent of such class of stock at all times during the testing period shall be treated as a United States person unless the qualified investment entity has actual knowledge that such person is not a United States person,</text>
</clause>
<clause id="HE7F8F335386C489184E386ECF0E16164">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">any stock in the qualified investment entity held by another qualified investment entity—</text>
<subclause id="H9105E9B3E4C24E6AB55E2A6577D7E0D8">
<enum>(I)</enum>
<text>any class of stock of which is regularly traded on an established securities market, or</text>
</subclause>
<subclause id="HDD788B2B3C754E378E37D01D531FDEDB">
<enum>(II)</enum>
<text>which is a regulated investment company which issues redeemable securities (within the meaning of section 2 of the Investment Company Act of 1940),</text>
</subclause>
<continuation-text continuation-text-level="clause">shall be treated as held by a foreign person, except that if such other qualified investment entity is domestically controlled (determined after application of this subparagraph), such stock shall be treated as held by a United States person, and</continuation-text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H64763E37FCE8400C9E7FF230ECABAFD6">
<enum>(iii)</enum>
<text>any stock in the qualified investment entity held by any other qualified investment entity not described in subclause (I) or (II) of clause (ii) shall only be treated as held by a United States person in proportion to the stock of such other qualified investment entity which is (or is treated under clause (ii) or (iii) as) held by a United States person.</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="H86FDE4447AE24C9AB0478F17D8AEAFC9">
<enum>(B)</enum>
<header>Conforming amendment</header>
<text>The heading for paragraph (4) of section 897(h) is amended by inserting <quote><header-in-text level="paragraph" style="OLC">and special rules</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">Definitions</header-in-text></quote>.</text>
</subparagraph>
</paragraph>
<paragraph id="H0EDE60FAFD3849B28675013F8CA816E7">
<enum>(2)</enum>
<header>Technical amendment</header>
<text>Clause (ii) of section 897(h)(4)(A) is amended by inserting <quote>and for purposes of determining whether a real estate investment trust is a domestically controlled qualified investment entity under this subsection</quote> after <quote>real estate investment trust</quote>.</text>
</paragraph>
</subsection>
<subsection id="H5377CDF074C64183AE1818BC1B5AB5A0">
<enum>(c)</enum>
<header>Effective dates</header>
<paragraph id="H18CBC23D3EC84488B57957A818B83AD9">
<enum>(1)</enum>
<header>In general</header>
<text>The amendments made by subsection (a) shall take effect on the date of enactment and shall apply to—</text>
<subparagraph id="H6CABDFB8A8AE4E73BDCDAF16FC95B53A">
<enum>(A)</enum>
<text>any disposition on and after the date of the enactment of this Act, and</text>
</subparagraph>
<subparagraph id="HFEF9093C292C4970AE6E33512B992304">
<enum>(B)</enum>
<text>any distribution by a real estate investment trust on or after the date of the enactment of this Act which is treated as a deduction for a taxable year of such trust ending after such date.</text>
</subparagraph>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD0335603140A4DEE8DB3A49348C03504">
<enum>(2)</enum>
<header>Determination of domestic control</header>
<text>The amendments made by subsection (b)(1) shall take effect on the date of the enactment of this Act.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0FE1093FB53C406E8E39BC480ADF96DA">
<enum>(3)</enum>
<header>Technical amendment</header>
<text>The amendment made by subsection (b)(2) shall take effect on January 1, 2015.</text>
</paragraph>
</subsection>
</section>
<section id="H2478E13E754B420BA4A7142C5A86D51F">
<enum>323.</enum>
<header>Exception for interests held by foreign retirement or pension funds</header>
<subsection id="H0985176C4FBC4DA59441F651115C9A52">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 897, as amended by the preceding provisions of this Act, is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H24D7A75EADE04059997DFE438C73A8E3" display-inline="no-display-inline">
<subsection id="H156DDFC60FA8491EA1C0B41589093789">
<enum>(l)</enum>
<header>Exception for interests held by foreign pension funds</header>
<paragraph id="H860899EA25A84C0A97BAAAE806BC9856">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">This section shall not apply to any United States real property interest held directly (or indirectly through 1 or more partnerships) by, or to any distribution received from a real estate investment trust by—</text>
<subparagraph id="H13E3340778994A20B4A42CB4F9C2B81D">
<enum>(A)</enum>
<text>a qualified foreign pension fund, or</text>
</subparagraph>
<subparagraph id="HD7F19EF7FB9D4B6E9FFB60B1FF9E1BF0">
<enum>(B)</enum>
<text>any entity all of the interests of which are held by a qualified foreign pension fund.</text>
</subparagraph>
</paragraph>
<paragraph id="H0100A0F87F354C5CB31176CF0D70A5B1">
<enum>(2)</enum>
<header>Qualified foreign pension fund</header>
<text>For purposes of this subsection, the term <term>qualified foreign pension fund</term> means any trust, corporation, or other organization or arrangement—</text>
<subparagraph id="H8D74E63354A54994B2DADA23254DE0D5">
<enum>(A)</enum>
<text>which is created or organized under the law of a country other than the United States,</text>
</subparagraph>
<subparagraph id="HD5F85685AF624CFBA1FD5C7A1F400DBF">
<enum>(B)</enum>
<text>which is established to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered,</text>
</subparagraph>
<subparagraph id="HE42034FBE5834F7D846362B65581ECF1">
<enum>(C)</enum>
<text>which does not have a single participant or beneficiary with a right to more than five percent of its assets or income,</text>
</subparagraph>
<subparagraph id="H5EDD739CA8A74E59B4DA6CDCA806EDB0">
<enum>(D)</enum>
<text>which is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in the country in which it is established or operates, and</text>
</subparagraph>
<subparagraph id="H3F66C62AEE6C4ABF9C47B7CF44B3BE6F">
<enum>(E)</enum>
<text>with respect to which, under the laws of the country in which it is established or operates—</text>
<clause id="HF72FC4B7821E4F36A577703AE49F07A4">
<enum>(i)</enum>
<text>contributions to such trust, corporation, organization, or arrangement which would otherwise be subject to tax under such laws are deductible or excluded from the gross income of such entity or taxed at a reduced rate, or</text>
</clause>
<clause id="HA424616258574EEA97937C562A4D3A49">
<enum>(ii)</enum>
<text>taxation of any investment income of such trust, corporation, organization or arrangement is deferred or such income is taxed at a reduced rate.</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="H6F0245E6EA724BF4BDE0996C293237A9">
<enum>(3)</enum>
<header>Regulations</header>
<text display-inline="yes-display-inline">The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HE5408FDA615C4865A4EF67F4423B05BE">
<enum>(b)</enum>
<header>Exemption from withholding</header>
<text display-inline="yes-display-inline">Section 1445(f)(3) is amended by striking <quote>any person</quote> and all that follows and inserting the following: </text>
<quoted-block style="OLC" id="H482843B34F894EEA9430BE293423D526" display-inline="yes-display-inline">
<text display-inline="yes-display-inline">any person other than—</text>
<subparagraph id="HA612A2B3DD59436E9BC53832669D50BC">
<enum>(A)</enum>
<text display-inline="yes-display-inline">a United States person, and</text>
</subparagraph>
<subparagraph id="HF28B28438B1240FD8967B6DD33E06648">
<enum>(B)</enum>
<text>except as otherwise provided by the Secretary, an entity with respect to which section 897 does not apply by reason of subsection (l) thereof.</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H1D390CA8C8534B68B2B95C402076500C">
<enum>(c)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply to dispositions and distributions after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H1DD157763B7944B2A9782C8129619054">
<enum>324.</enum>
<header>Increase in rate of withholding of tax on dispositions of United States real property interests</header>
<subsection id="H26D8B7DBA68E40F2B744620E8293CAFA">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Subsections (a), (e)(3), (e)(4), and (e)(5) of section 1445 are each amended by striking <quote>10 percent</quote> and inserting <quote>15 percent</quote>.</text>
</subsection>
<subsection id="H3D06C50A443D4204AEE37EAFC8342237">
<enum>(b)</enum>
<header>Exception for certain residences</header>
<text>Section 1445(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7838B796F7F547FF9770FB8214D09EF2" style="OLC">
<paragraph id="HC8FB7D2F609F4A4F88593F53F6FD9CBE">
<enum>(4)</enum>
<header>Reduced rate of withholding for residence where amount realized does not exceed $1,000,000</header>
<text display-inline="yes-display-inline">In the case of a disposition—</text>
<subparagraph id="HD2AD809A2D9F44A18139853ACFD6C261">
<enum>(A)</enum>
<text display-inline="yes-display-inline">of property which is acquired by the transferee for use by the transferee as a residence,</text>
</subparagraph>
<subparagraph id="H538064AC38934EA6BB4E125FCC871AA8">
<enum>(B)</enum>
<text>with respect to which the amount realized for such property does not exceed $1,000,000, and</text>
</subparagraph>
<subparagraph id="H93A3A9351E694DAB9398C44D342C47E0">
<enum>(C)</enum>
<text>to which subsection (b)(5) does not apply,</text>
</subparagraph>
<continuation-text continuation-text-level="paragraph">subsection (a) shall be applied by substituting <quote>10 percent</quote> for <quote>15 percent</quote>.</continuation-text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H4684BBE5E6284D64B4AC5504914A2105">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to dispositions after the date which is 60 days after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H546BE047CB5C479FAC3C5E91B44062AC">
<enum>325.</enum>
<header>Interests in RICs and REITs not excluded from definition of United States real property interests</header>
<subsection id="H990E95855AA441928FCB983E7A81FDC3">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 897(c)(1)(B) is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii)(II) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HD62F244C860C478CA42BA553DFEE025E" style="OLC">
<clause id="H974A0ADAA74A4B5B9BF539087729D998">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">neither such corporation nor any predecessor of such corporation was a regulated investment company or a real estate investment trust at any time during the shorter of the periods described in subparagraph (A)(ii).</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H57FC2AD73B1145EBBD69955AACB3A2DD">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to dispositions on or after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HDC6A36B81CAE4DEDBAC7801111F63DB0">
<enum>326.</enum>
<header>Dividends derived from RICs and REITs ineligible for deduction for United States source portion of dividends from certain foreign corporations</header>
<subsection id="HDEC99EDD84FC47B897D33F3D3AEE1776">
<enum>(a)</enum>
<header>In general</header>
<text>Section 245(a) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H0865E8F9BF594EEC80F43F5F165CF732" style="OLC">
<paragraph id="HAD83CA9A870743D885247DBF817720F9">
<enum>(12)</enum>
<header>Dividends derived from RICs and REITs ineligible for deduction</header>
<text display-inline="yes-display-inline">Regulated investment companies and real estate investment trusts shall not be treated as domestic corporations for purposes of paragraph (5)(B).</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection display-inline="no-display-inline" id="HE301D1180EC04316B2D0A03E0AFE8ABB">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendment made by this section shall apply to dividends received from regulated investment companies and real estate investment trusts on or after the date of the enactment of this Act.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H99A24536611E41F3844921BB9C0B3A3C">
<enum>(c)</enum>
<header>No inference</header>
<text display-inline="yes-display-inline">Nothing contained in this section or the amendments made by this section shall be construed to create any inference with respect to the proper treatment under section 245 of the Internal Revenue Code of 1986 of dividends received from regulated investment companies or real estate investment trusts before the date of the enactment of this Act.</text>
</subsection>
</section>
</subtitle>
<subtitle id="H7D01B07E6B4B44B392ADE7A2316D27AC">
<enum>C</enum>
<header>Additional provisions</header>
<section id="H6F36D2C30CE640449F93924A4ABE4908">
<enum>331.</enum>
<header>Deductibility of charitable contributions to agricultural research organizations</header>
<subsection id="H2FF3265D1E1E4542821FF2546769EED1">
<enum>(a)</enum>
<header>In general</header>
<text>Subparagraph (A) of section 170(b)(1) is amended by striking <quote>or</quote> at the end of clause (vii), by striking the comma at the end of clause (viii) and inserting <quote>, or</quote>, and by inserting after clause (viii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H470E817207614E74BD7C7D96AC686053" style="OLC">
<clause id="H7A77041CF455488D8B6A2DA5EC0707CC">
<enum>(ix)</enum>
<text>an agricultural research organization directly engaged in the continuous active conduct of agricultural research (as defined in section 1404 of the Agricultural Research, Extension, and Teaching Policy Act of 1977) in conjunction with a land-grant college or university (as defined in such section) or a non-land grant college of agriculture (as defined in such section), and during the calendar year in which the contribution is made such organization is committed to spend such contribution for such research before January 1 of the fifth calendar year which begins after the date such contribution is made,</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HEAFB887ECBBB48B2BCA200DA8598827E">
<enum>(b)</enum>
<header>Expenditures To influence legislation</header>
<text>Paragraph (4) of section 501(h) is amended by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively, and by inserting after subparagraph (D) the following new subparagraph:</text>
<quoted-block act-name="" id="H3AD0B04E334F4D08803C437D39DA6534" style="OLC">
<subparagraph id="H48685049537C497986BAB014F232B6F3">
<enum>(E)</enum>
<text>section 170(b)(1)(A)(ix) (relating to agricultural research organizations),</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE975ECE8A76E4994895D01CDDB08995C">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to contributions made on and after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HD392463C6B2547869DD9978C9A441DA4" section-type="subsequent-section">
<enum>332.</enum>
<header>Removal of bond requirements and extending filing periods for certain taxpayers with limited excise tax liability</header>
<subsection id="H35D4EA867D0A403580AEA6C0A9A88A06">
<enum>(a)</enum>
<header>Filing requirements</header>
<text>Paragraph (4) of section 5061(d) of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="HF81562AC86204052BBB3CB7BE5250047">
<enum>(1)</enum>
<text>in subparagraph (A)—</text>
<subparagraph id="HDE7063507A1E415092A4D75656976859">
<enum>(A)</enum>
<text>by striking <quote>In the case of</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEEC1D03968C64E299561D4E13A969AD6" style="OLC">
<clause id="H07ADD2ADAAEA4D0E9628EB3C0F70CCBD">
<enum>(i)</enum>
<header>More than $1,000 and not more than $50,000 in taxes</header>
<text>Except as provided in clause (ii), in the case of</text>
</clause>
<after-quoted-block>,</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="H034D7BC8363B480A94BD48CA7815235D">
<enum>(B)</enum>
<text>by striking <quote>under bond for deferred payment</quote>, and</text>
</subparagraph>
<subparagraph id="HBE628547E8604AD6B8646E91C8C711BE">
<enum>(C)</enum>
<text>by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H0B24F85132D4400982646889CE00A775" style="OLC">
<clause id="HC78D75114850450BA3D67E582A8C583B">
<enum>(ii)</enum>
<header>Not more than $1,000 in taxes</header>
<text>In the case of any taxpayer who reasonably expects to be liable for not more than $1,000 in taxes imposed with respect to distilled spirits, wines, and beer under subparts A, C, and D and section 7652 for the calendar year and who was liable for not more than $1,000 in such taxes in the preceding calendar year, the last day for the payment of tax on withdrawals, removals, and entries (and articles brought into the United States from Puerto Rico) shall be the 14th day after the last day of the calendar year.</text>
</clause>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph id="H8519CFCD01FD430E90F20B3D230952E2">
<enum>(2)</enum>
<text>in subparagraph (B)—</text>
<subparagraph id="H0E86CAD06F424862BD598CA8F391DF13">
<enum>(A)</enum>
<text>by striking <quote>Subparagraph (A)</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6AB2B2255DFA453591091AC24BBE7B9C" style="OLC">
<clause id="H8B3EF183F4974B8FB7D1E1F0920F8712">
<enum>(i)</enum>
<header>Exceeds $50,000 limit</header>
<text>Subparagraph (A)(i)</text>
</clause>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="H6B1D49B8C8DF4568847BA3DF2B8BEABB">
<enum>(B)</enum>
<text>by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HE9ADF25356B74B03BF4B62B28E989230" style="OLC">
<clause id="HEE9970BE9A6D42878AE6FDC41FF8CD64">
<enum>(ii)</enum>
<header>Exceeds $1,000 limit</header>
<text>Subparagraph (A)(ii) shall not apply to any taxpayer for any portion of the calendar year following the first date on which the aggregate amount of tax due under subparts A, C, and D and section 7652 from such taxpayer during such calendar year exceeds $1,000, and any tax under such subparts which has not been paid on such date shall be due on the 14th day after the last day of the calendar quarter in which such date occurs.</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
</subsection>
<subsection id="HCFB5E937EE414977BB4BACAB9A4B7E0F">
<enum>(b)</enum>
<header>Bond requirements</header>
<paragraph id="HD4B38C8F0004450B8954A5BDFCA0DBB5">
<enum>(1)</enum>
<header>In general</header>
<text>Section 5551 of such Code is amended—</text>
<subparagraph id="HC570A03CA6CD446AA8C8BF1DEF1FCE6A">
<enum>(A)</enum>
<text>in subsection (a), by striking <quote>No individual</quote> and inserting <quote>Except as provided under subsection (d), no individual</quote>, and</text>
</subparagraph>
<subparagraph id="HCABBCA46802540519F748B1BAB6B1B9F">
<enum>(B)</enum>
<text>by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF6F95E2431604ECBA10A2B562036D2F7" style="OLC">
<subsection id="HDFF910F125CE4FAFB6618EBC6B891E5A">
<enum>(d)</enum>
<header>Removal of bond requirements</header>
<paragraph id="H2675F70E67824AE4B85126206231053F">
<enum>(1)</enum>
<header>In general</header>
<text>During any period to which subparagraph (A) of section 5061(d)(4) applies to a taxpayer (determined after application of subparagraph (B) thereof), such taxpayer shall not be required to furnish any bond covering operations or withdrawals of distilled spirits or wines for nonindustrial use or of beer.</text>
</paragraph>
<paragraph id="H45B7772238B742189EEC9D78636D0E5D">
<enum>(2)</enum>
<header>Satisfaction of bond requirements</header>
<text>Any taxpayer for any period described in paragraph (1) shall be treated as if sufficient bond has been furnished for purposes of covering operations and withdrawals of distilled spirits or wines for nonindustrial use or of beer for purposes of any requirements relating to bonds under this chapter.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph id="HA144978D238648BCA7ACC7AE21EB431B">
<enum>(2)</enum>
<header>Conforming amendments</header>
<subparagraph id="H5EBA90569282411184169056379DCA3A">
<enum>(A)</enum>
<header>Bonds for distilled spirits plants</header>
<text>Section 5173(a) of such Code is amended—</text>
<clause id="H57EFFCACBC774CF38EA2587D5C889035">
<enum>(i)</enum>
<text>in paragraph (1), by striking <quote>No person</quote> and inserting <quote>Except as provided under section 5551(d), no person</quote>, and</text>
</clause>
<clause id="H0815567005B646D3BDECFA9FE5CA28AE">
<enum>(ii)</enum>
<text>in paragraph (2), by striking <quote>No distilled spirits</quote> and inserting <quote>Except as provided under section 5551(d), no distilled spirits</quote>.</text>
</clause>
</subparagraph>
<subparagraph id="HE05001F2FBBD412D92D58D8C5428E217">
<enum>(B)</enum>
<header>Bonded wine cellars</header>
<text>Section 5351 of such Code is amended—</text>
<clause id="HD375D1DDCF52438FAC6BF7F615210288">
<enum>(i)</enum>
<text>by striking <quote>Any person</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HFC148FE0FB324FC3912A78641065CF7F" style="OLC">
<subsection id="HA417B8E4183A497A909AAACAC6ABC56A">
<enum>(a)</enum>
<header>In general</header>
<text>Any person</text>
</subsection>
<after-quoted-block>,</after-quoted-block>
</quoted-block>
</clause>
<clause id="HF8E9305BFAAB4B0496FF9335F3FCC4E4">
<enum>(ii)</enum>
<text>by inserting <quote>, except as provided under section 5551(d),</quote> before <quote>file bond</quote>,</text>
</clause>
<clause id="H97EB7E3DF7DB4C3EAAEB65C07A562985">
<enum>(iii)</enum>
<text>by striking <quote>Such premises shall</quote> and all that follows through the period, and</text>
</clause>
<clause id="H961A25CAB8FF41ED91EB43139BDC6F5A">
<enum>(iv)</enum>
<text>by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HFA6875B28A6645848D7DFB9519A64468" style="OLC">
<subsection id="H5012A1F4534F4D0080BB0AE240F459D4">
<enum>(b)</enum>
<header>Definitions</header>
<text>For purposes of this chapter—</text>
<paragraph id="H5701BC32B3384B28A38919995127281F">
<enum>(1)</enum>
<header>Bonded wine cellar</header>
<text>The term <term>bonded wine cellar</term> means any premises described in subsection (a), including any such premises established by a taxpayer described in section 5551(d).</text>
</paragraph>
<paragraph id="H9C46E3DCB5B54FA29D7CE985182AA08D">
<enum>(2)</enum>
<header>Bonded winery</header>
<text>At the discretion of the Secretary, any bonded wine cellar that engages in production operations may be designated as a <quote>bonded winery</quote>.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</clause>
</subparagraph>
<subparagraph id="H82D32980DAC641F78196583C279B16F3">
<enum>(C)</enum>
<header>Bonds for breweries</header>
<text>Section 5401 of such Code is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H63009B99F4B74E028C07A5FFD588285A" style="OLC">
<subsection id="H914EBAF859D34872A30CCDE15397D93E">
<enum>(c)</enum>
<header>Exception from bond requirements for certain breweries</header>
<text>Subsection (b) shall not apply to any taxpayer for any period described in section 5551(d).</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
</subsection>
<subsection id="H03521BBA8118426CB134BFDF3FC0AA70">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to any calendar quarters beginning more than 1 year after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HA3CC2A92080C437CB234E057A68CC7F9" section-type="subsequent-section">
<enum>333.</enum>
<header>Modifications to alternative tax for certain small insurance companies</header>
<subsection id="HEB199C15DE94488586021D5DDEECA2EE">
<enum>(a)</enum>
<header>Additional requirement for companies to which alternative tax applies</header>
<paragraph id="HF0724BCDC4CA41649CB5C25653CE44DA">
<enum>(1)</enum>
<header>Added requirement</header>
<subparagraph id="HFAFD30ACF46344C784B74A571A13572A">
<enum>(A)</enum>
<header>In general</header>
<text>Subparagraph (A) of section 831(b)(2) is amended—</text>
<clause commented="no" id="HBB2FE79B00C84C66A12B03D46F88768F">
<enum>(i)</enum>
<text>by striking <quote>(including interinsurers and reciprocal underwriters)</quote>, and</text>
</clause>
<clause id="H2506F16B89A94CC8B1079A58C63883F0">
<enum>(ii)</enum>
<text>by striking <quote>and</quote> at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HAD936B1C27024D49885E651D3D39756E" style="OLC">
<clause id="HEE0239AC2FB74BB3892A495A1BDDB8AE">
<enum>(ii)</enum>
<text>such company meets the diversification requirements of subparagraph (B), and</text>
</clause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</clause>
</subparagraph>
<subparagraph id="H0C113EDC8DAA451089A1E3B3BC0A1E59">
<enum>(B)</enum>
<header>Diversification requirement</header>
<text>Paragraph (2) of section 831(b) is amended by redesignating subparagraphs (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H9B8FC63B4CCF4E6FAEFFDD125225FB2A" style="OLC">
<subparagraph id="H65D82CE16E344EE59D05A2F028FE91F5">
<enum>(B)</enum>
<header>Diversification requirements</header>
<clause id="HD3C10EF284E24E0284144FF9536A4B08">
<enum>(i)</enum>
<header>In general</header>
<text>An insurance company meets the requirements of this subparagraph if—</text>
<subclause id="HE3470A9C88F849AB93AC41AD0182CD0C">
<enum>(I)</enum>
<text>no more than 20 percent of the net written premiums (or, if greater, direct written premiums) of such company for the taxable year is attributable to any one policyholder, or</text>
</subclause>
<subclause id="HE5C767AB6BE040AD9C92849D9C925375">
<enum>(II)</enum>
<text>such insurance company does not meet the requirement of subclause (I) and no person who holds (directly or indirectly) an interest in such insurance company is a specified holder who holds (directly or indirectly) aggregate interests in such insurance company which constitute a percentage of the entire interests in such insurance company which is more than a de minimis percentage higher than the percentage of interests in the specified assets with respect to such insurance company held (directly or indirectly) by such specified holder.</text>
</subclause>
</clause>
<clause id="H2392414F39F44B0CB08D74D2D17C9532">
<enum>(ii)</enum>
<header>Definitions</header>
<text display-inline="yes-display-inline">For purposes of clause (i)(II)—</text>
<subclause id="H622682B5742D461392F9679ACCCBA084">
<enum>(I)</enum>
<header>Specified holder</header>
<text>The term <term>specified holder</term> means, with respect to any insurance company, any individual who holds (directly or indirectly) an interest in such insurance company and who is a spouse or lineal descendant (including by adoption) of an individual who holds an interest (directly or indirectly) in the specified assets with respect to such insurance company.</text>
</subclause>
<subclause id="H038488A63A884495B0EAE98BF2DD3EA5">
<enum>(II)</enum>
<header>Specified assets</header>
<text>The term <term>specified assets</term> means, with respect to any insurance company, the trades or businesses, rights, or assets with respect to which the net written premiums (or direct written premiums) of such insurance company are paid.</text>
</subclause>
<subclause id="H1347F09D2F0442A09D48C8377FD43048">
<enum>(III)</enum>
<header>Indirect interest</header>
<text>An indirect interest includes any interest held through a trust, estate, partnership, or corporation.</text>
</subclause>
<subclause id="H555E30D55CC94271AF26DDA0F4A84582">
<enum>(IV)</enum>
<header>De minimis</header>
<text>Except as otherwise provided by the Secretary in regulations or other guidance, 2 percentage points or less shall be treated as de minimis.</text>
</subclause>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="HFDEFCD48ECFE41158183B08FFAF43C80">
<enum>(C)</enum>
<header>Conforming amendments</header>
<text>The second sentence section 831(b)(2)(A) is amended—</text>
<clause id="HE5667CD86EAB4339AB5CE6F54F288750">
<enum>(i)</enum>
<text>by striking <quote>clause (ii)</quote> and inserting <quote>clause (iii)</quote>, and</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H8E2D89DEE61547878CC186A4F67B69FB">
<enum>(ii)</enum>
<text>by striking <quote>clause (i)</quote> and inserting <quote>clauses (i) and (ii)</quote>.</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="HA922040A0F2847268F7A68014B4EB9E3">
<enum>(2)</enum>
<header>Treatment of related policyholders</header>
<text>Clause (i) of section 831(b)(2)(C), as redesignated by paragraph (1)(B), is amended—</text>
<subparagraph id="H076D2C4939C34590888613DABC7046B0">
<enum>(A)</enum>
<text>by striking <quote>For purposes of subparagraph (A), in determining</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H62F5D04672314E239BF2CF53D94B882F" style="OLC">
<text>For purposes of this paragraph—</text>
<subclause id="H86D4EE89D51E45C69FF9BC92E3ABCFBF">
<enum>(I)</enum>
<text>in determining</text>
</subclause>
<after-quoted-block>, </after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph id="HF1CECA6E034449F68A4837D299711DCC">
<enum>(B)</enum>
<text>by striking the period at the end and inserting <quote>, and</quote>, and</text>
</subparagraph>
<subparagraph id="H1EA9655A701249C0936B45565A53387B">
<enum>(C)</enum>
<text>by adding at the end the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="HFEF99034EB9D4018BCC3EFC6BAE3A1D7" style="OLC">
<subclause id="H31ED029F8C2E46D7B8F8ADF1D4DBF2B4">
<enum>(II)</enum>
<text>in determining the attribution of premiums to any policyholder under subparagraph (B)(i), all policyholders which are related (within the meaning of section 267(b) or 707(b)) or are members of the same controlled group shall be treated as one policyholder.</text>
</subclause>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph id="H4CFB6F333AEB4748AA1AB1FAE7C941D8">
<enum>(3)</enum>
<header>Reporting</header>
<text>Section 831 is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HB70A1EC0B1044671A12547EB5AE36AC0" style="OLC">
<subsection id="HCE57B756FE914972B52C31A64DE0FFBF">
<enum>(d)</enum>
<header>Reporting</header>
<text>Every insurance company for which an election is in effect under subsection (b) for any taxable year shall furnish to the Secretary at such time and in such manner as the Secretary shall prescribe such information for such taxable year as the Secretary shall require with respect to the requirements of subsection (b)(2)(A)(ii).</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H539BC97F95D44592BAF7C1BC2848E9D3">
<enum>(b)</enum>
<header>Increase in limitation on premiums</header>
<paragraph id="HA50AEAB09AB248DEB35DF956B56716AB">
<enum>(1)</enum>
<header>In general</header>
<text>Clause (i) of section 831(b)(2)(A) is amended by striking <quote>$1,200,000</quote> and inserting <quote>$2,200,000</quote>.</text>
</paragraph>
<paragraph id="HE590C684A7D34DC1938D6A93285DE151">
<enum>(2)</enum>
<header>Inflation Adjustment</header>
<text>Paragraph (2) of section 831(b), as amended by subsection (a)(1)(B), is amended by adding at the end the following new subparagraph:</text>
<quoted-block id="H2CD7E81AB6EF4A9394F223672B78FDE1" style="OLC">
<subparagraph id="H424A090699804A419C75CE3A1FA84914">
<enum>(D)</enum>
<header>Inflation adjustment</header>
<text>In the case of any taxable year beginning in a calendar year after 2015, the dollar amount set forth in subparagraph (A)(i) shall be increased by an amount equal to—</text>
<clause id="H6DF542E6D7884CA59CBC2E20289846EA">
<enum>(i)</enum>
<text>such dollar amount, multiplied by</text>
</clause>
<clause id="H23550FD27C5942EEA70745F0DD9A4E67">
<enum>(ii)</enum>
<text>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting <quote>calendar year 2013</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</clause>
<continuation-text continuation-text-level="subparagraph">If the amount as adjusted under the preceding sentence is not a multiple of $50,000, such amount shall be rounded to the next lowest multiple of $50,000.</continuation-text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H22B9171ABF41406684323C4AB3850644">
<enum>(c)</enum>
<header>Effective Date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2016.</text>
</subsection>
</section>
<section id="HB0AC574730EF43A6BF58922E4D25BFDA">
<enum>334.</enum>
<header>Treatment of timber gains</header>
<subsection id="H24F8106F401340DB899ECFA6371D51A2">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 1201(b) is amended to read as follows:</text>
<quoted-block style="OLC" id="H007CDDEF39F64515B02A8C4287361B3C" display-inline="no-display-inline">
<subsection id="HA54B3E89F1BB4382AD4BCF508586FBFB">
<enum>(b)</enum>
<header>Special rate for qualified timber gains</header>
<paragraph id="HDF15977606524A8897AC165613FE97BE">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">If, for any taxable year beginning in 2016, a corporation has both a net capital gain and qualified timber gain—</text>
<subparagraph id="H15E68D14CEB94865947E5CA6B13B762E">
<enum>(A)</enum>
<text>subsection (a) shall apply to such corporation for the taxable year without regard to whether the applicable tax rate exceeds 35 percent, and</text>
</subparagraph>
<subparagraph id="H744308FDA5D644C5AE79E30A512F7B59">
<enum>(B)</enum>
<text>the tax computed under subsection (a)(2) shall be equal to the sum of—</text>
<clause id="HAE20EC3772D1415A8C3357976D39C0E4">
<enum>(i)</enum>
<text>23.8 percent of the least of—</text>
<subclause id="H4906AD63F57E4F7EA6E6BE28D9170207">
<enum>(I)</enum>
<text>qualified timber gain,</text>
</subclause>
<subclause id="HDF14F73E7FD94B52AECE572E2B94D630">
<enum>(II)</enum>
<text>net capital gain, or</text>
</subclause>
<subclause id="H0184E721FAB44CF1BD4307E4A90734EA">
<enum>(III)</enum>
<text>taxable income, plus</text>
</subclause>
</clause>
<clause id="H9F5AD6A07620440381D73118EE181078">
<enum>(ii)</enum>
<text>35 percent of the excess (if any) of taxable income over the sum of the amounts for which a tax was determined under subsection (a)(1) and clause (i).</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="H33BF5F06DD504677A33F63BDE8041741">
<enum>(2)</enum>
<header>Qualified timber gain</header>
<text display-inline="yes-display-inline">For purposes of this section, the term <term>qualified timber gain</term> means, with respect to any taxpayer for any taxable year, the excess (if any) of—</text>
<subparagraph id="HBA29419C889A4F3C85746D407EDF263F">
<enum>(A)</enum>
<text>the sum of the taxpayer’s gains described in subsections (a) and (b) of section 631 for such year, over</text>
</subparagraph>
<subparagraph id="H4674B92C12C342A3BB6CDDC5F4206635">
<enum>(B)</enum>
<text>the sum of the taxpayer's losses described in such subsections for such year. </text>
</subparagraph>
<continuation-text continuation-text-level="paragraph">For purposes of subparagraphs (A) and (B), only timber held more than 15 years shall be taken into account.</continuation-text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H331A02B790B84E9B81A7AB8BF147F4C5">
<enum>(b)</enum>
<header>Conforming amendment</header>
<text>Section 55(b) is amended by striking paragraph (4).</text>
</subsection>
<subsection id="H337F17ECDD5945149AFE3FC18142170F">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text>
</subsection>
</section>
<section id="H588BB3D5233A4A28BE2CA0760C016AC1">
<enum>335.</enum>
<header>Modification of definition of hard cider</header>
<subsection id="HD358188F1E53464F981B3F13023D61B4">
<enum>(a)</enum>
<header>In general</header>
<text>Section 5041 of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="HAF8573A681E040DC92E988ECD05F06A5">
<enum>(1)</enum>
<text>in paragraph (6) of subsection (b), by striking <quote>which is a still wine</quote> and all that follows through <quote>alcohol by volume</quote>, and</text>
</paragraph>
<paragraph id="H21ABFE22CAB544D48E730DCC14E0A250">
<enum>(2)</enum>
<text>by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H0A9636FF434B40198A55683C91161C7B" style="OLC">
<subsection id="HABD9A90AD5C14ED9A01DE633D2C1BFE3">
<enum>(g)</enum>
<header>Hard cider</header>
<text>For purposes of subsection (b)(6), the term <term>hard cider</term> means a wine—</text>
<paragraph id="HF0E956ACFCA3479FBAC036A3565A7460">
<enum>(1)</enum>
<text>containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice,</text>
</paragraph>
<paragraph id="HC2EA22EDBA10495882B9368F661D3EF2">
<enum>(2)</enum>
<text>which is derived primarily—</text>
<subparagraph id="H08C587A5864E49B6BA73EFEC5781F8FE">
<enum>(A)</enum>
<text>from apples or pears, or</text>
</subparagraph>
<subparagraph id="HB73A4C1988014871907E1C038F75C4E7">
<enum>(B)</enum>
<text>from—</text>
<clause id="HE23FF712809B4FCE89656EED1999C92A">
<enum>(i)</enum>
<text>apple juice concentrate or pear juice concentrate, and</text>
</clause>
<clause id="HE1838DA9E9EE4D48BDACCC586029AD32">
<enum>(ii)</enum>
<text>water,</text>
</clause>
</subparagraph>
</paragraph>
<paragraph id="HA3C594B1AED5442698924F09991A21A4">
<enum>(3)</enum>
<text>which contains no fruit product or fruit flavoring other than apple or pear, and</text>
</paragraph>
<paragraph id="H42141A62B8524703B90D9E9A7087A118">
<enum>(4)</enum>
<text>which contains at least one-half of 1 percent and less than 8.5 percent alcohol by volume.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection commented="no" id="HCFE2D776567B421885036F6258D29741">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to hard cider removed during calendar years beginning after December 31, 2016.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H3E14DC99CD3242D397CCC8595A7A8540" section-type="subsequent-section">
<enum>336.</enum>
<header display-inline="yes-display-inline">Church plan clarification</header>
<subsection commented="no" display-inline="no-display-inline" id="H0C051CC1BC81432B961F89999546A5A8">
<enum>(a)</enum>
<header display-inline="yes-display-inline">Application of controlled group rules to church plans</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDC10E2EC5135447A8738C485A562ADFB">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">Section 414(c) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5AF059591BF74AB797F2FFB20B5B3EFE">
<enum>(A)</enum>
<text display-inline="yes-display-inline">by striking <quote>For purposes</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H51D7A187DEC24F0086D2A454DB33C881" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H576AC8189F9843BEBC9993D55FCF57B2">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">Except as provided in paragraph (2), for purposes</text>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H6A8DB3E11CDB4972B998FE38DEC6D8AC">
<enum>(B)</enum>
<text display-inline="yes-display-inline">by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB3C7AB76C1854A68BC1B2BCC86C0CA2C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H82D449B934384680AD1AAD5CA6B5D2BA">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Special rules relating to church plans</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H43BEE49210D1413BA3479A48DA27B35D">
<enum>(A)</enum>
<header display-inline="yes-display-inline">General rule</header>
<text display-inline="yes-display-inline">Except as provided in subparagraphs (B) and (C), for purposes of this subsection and subsection (m), an organization that is otherwise eligible to participate in a church plan shall not be aggregated with another such organization and treated as a single employer with such other organization for a plan year beginning in a taxable year unless—</text>
<clause commented="no" display-inline="no-display-inline" id="H8C8B7972DD03418D8AFAC866633FCA5C">
<enum>(i)</enum>
<text display-inline="yes-display-inline">one such organization provides (directly or indirectly) at least 80 percent of the operating funds for the other organization during the preceding taxable year of the recipient organization, and</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H2719B625D919467BB66478AD82FE6969">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">there is a degree of common management or supervision between the organizations such that the organization providing the operating funds is directly involved in the day-to-day operations of the other organization.</text>
</clause>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H947549A762CD408EA7A55AD248C9956D">
<enum>(B)</enum>
<header display-inline="yes-display-inline">Nonqualified church-controlled organizations</header>
<text display-inline="yes-display-inline">Notwithstanding subparagraph (A), for purposes of this subsection and subsection (m), an organization that is a nonqualified church-controlled organization shall be aggregated with 1 or more other nonqualified church-controlled organizations, or with an organization that is not exempt from tax under section 501, and treated as a single employer with such other organization, if at least 80 percent of the directors or trustees of such other organization are either representatives of, or directly or indirectly controlled by, such nonqualified church-controlled organization. For purposes of this subparagraph, the term <term>nonqualified church-controlled organization</term> means a church-controlled tax-exempt organization described in section 501(c)(3) that is not a qualified church-controlled organization (as defined in section 3121(w)(3)(B)).</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H34751CF0D5244CA798652B4539B209A4">
<enum>(C)</enum>
<header display-inline="yes-display-inline">Permissive aggregation among church-related organizations</header>
<text display-inline="yes-display-inline">The church or convention or association of churches with which an organization described in subparagraph (A) is associated (within the meaning of subsection (e)(3)(D)), or an organization designated by such church or convention or association of churches, may elect to treat such organizations as a single employer for a plan year. Such election, once made, shall apply to all succeeding plan years unless revoked with notice provided to the Secretary in such manner as the Secretary shall prescribe.</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HF8A8EA8259444FCE81F3BFA3ED612AEF">
<enum>(D)</enum>
<header display-inline="yes-display-inline">Permissive disaggregation of church-related organizations</header>
<text display-inline="yes-display-inline">For purposes of subparagraph (A), in the case of a church plan, an employer may elect to treat churches (as defined in section 403(b)(12)(B)) separately from entities that are not churches (as so defined), without regard to whether such entities maintain separate church plans. Such election, once made, shall apply to all succeeding plan years unless revoked with notice provided to the Secretary in such manner as the Secretary shall prescribe.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6BF13B25DBBD44578617DB1BFFDFE92A">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Clarification relating to application of anti-abuse rule</header>
<text display-inline="yes-display-inline">The rule of 26 CFR 1.414(c)–5(f) shall continue to apply to each paragraph of section 414(c) of the Internal Revenue Code of 1986, as amended by paragraph (1).</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6E91BA2B6DA34CB093123451E915FF83">
<enum>(3)</enum>
<header display-inline="yes-display-inline">Effective date</header>
<text display-inline="yes-display-inline">The amendments made by paragraph (1) shall apply to years beginning before, on, or after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H79E7DA7A29DC4C47A4684F4115190C83">
<enum>(b)</enum>
<header display-inline="yes-display-inline">Application of contribution and funding limitations to 403(<enum-in-header>b</enum-in-header>) grandfathered defined benefit plans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7750B69C8E814E9792E0F06C23CD6B06">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">Section 251(e)(5) of the Tax Equity and Fiscal Responsibility Act of 1982 (Public Law 97–248), is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H765D6F9115D144CFBE011477C40CB34E">
<enum>(A)</enum>
<text display-inline="yes-display-inline">by striking <quote>403(b)(2)</quote> and inserting <quote>403(b)</quote>, and</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HCD6EAE55F7534330B0565340620045AC">
<enum>(B)</enum>
<text display-inline="yes-display-inline">by inserting before the period at the end the following: <quote>, and shall be subject to the applicable limitations of section 415(b) of such Code as if it were a defined benefit plan under section 401(a) of such Code (and not to the limitations of section 415(c) of such Code).</quote>.</text>
</subparagraph>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9944C7E2133E4D99BED77C9A95511BD5">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this subsection shall apply to years beginning before, on, or after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAB206F89841E4B29872CA06C97359527">
<enum>(c)</enum>
<header display-inline="yes-display-inline">Automatic enrollment by church plans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H51305A8DB8084758846E94D88A19A85C">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">This subsection shall supersede any law of a State that relates to wage, salary, or payroll payment, collection, deduction, garnishment, assignment, or withholding which would directly or indirectly prohibit or restrict the inclusion in any church plan (as defined in section 414(e) of the Internal Revenue Code of 1986) of an automatic contribution arrangement.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H54420DCA7E604A3586908DEB68F1AF3C">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Definition of automatic contribution arrangement</header>
<text display-inline="yes-display-inline">For purposes of this subsection, the term <term>automatic contribution arrangement</term> means an arrangement—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3A1630BC8B8443DF891946011F7A6457">
<enum>(A)</enum>
<text display-inline="yes-display-inline">under which a participant may elect to have the plan sponsor or the employer make payments as contributions under the plan on behalf of the participant, or to the participant directly in cash,</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H17158F98B8714DE6BB53E5CAA7335BA0">
<enum>(B)</enum>
<text display-inline="yes-display-inline">under which a participant is treated as having elected to have the plan sponsor or the employer make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage), and</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA129F7BD16DC4F8A8A4858EB5780A341">
<enum>(C)</enum>
<text display-inline="yes-display-inline">under which the notice and election requirements of paragraph (3), and the investment requirements of paragraph (4), are satisfied.</text>
</subparagraph>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4C0FB65F3E1C4EAE890E5A45B830B103">
<enum>(3)</enum>
<header display-inline="yes-display-inline">Notice requirements</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3C4C510DAD4246728E0C411FCE220C8E">
<enum>(A)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">The plan sponsor of, or plan administrator or employer maintaining, an automatic contribution arrangement shall, within a reasonable period before the first day of each plan year, provide to each participant to whom the arrangement applies for such plan year notice of the participant’s rights and obligations under the arrangement which—</text>
<clause commented="no" display-inline="no-display-inline" id="H840923A18FDA4D36B64A3B138E3494BD">
<enum>(i)</enum>
<text display-inline="yes-display-inline">is sufficiently accurate and comprehensive to apprise the participant of such rights and obligations, and</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H5DF6BADF21574C94AA87921880F43D17">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">is written in a manner calculated to be understood by the average participant to whom the arrangement applies.</text>
</clause>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HBE91AC1C41304FE3AFF4BF532EFA5C3D">
<enum>(B)</enum>
<header display-inline="yes-display-inline">Election requirements</header>
<text display-inline="yes-display-inline">A notice shall not be treated as meeting the requirements of subparagraph (A) with respect to a participant unless—</text>
<clause commented="no" display-inline="no-display-inline" id="H86206F9BF2BE41D2AD12812F190AFD5D">
<enum>(i)</enum>
<text display-inline="yes-display-inline">the notice includes an explanation of the participant’s right under the arrangement not to have elective contributions made on the participant’s behalf (or to elect to have such contributions made at a different percentage),</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H67A58CA406E24EA491C83B61968C2224">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">the participant has a reasonable period of time, after receipt of the explanation described in clause (i) and before the first elective contribution is made, to make such election, and</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H229BAD73389246BCBD2ECE35BF3B9121">
<enum>(iii)</enum>
<text display-inline="yes-display-inline">the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the participant.</text>
</clause>
</subparagraph>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7C6C26294207406DBE9170EE7DF51A1B">
<enum>(4)</enum>
<header display-inline="yes-display-inline">Default investment</header>
<text display-inline="yes-display-inline">If no affirmative investment election has been made with respect to any automatic contribution arrangement, contributions to such arrangement shall be invested in a default investment selected with the care, skill, prudence, and diligence that a prudent person selecting an investment option would use.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2262273751AD4578B0E5DA2003A169A0">
<enum>(5)</enum>
<header display-inline="yes-display-inline">Effective date</header>
<text display-inline="yes-display-inline">This subsection shall take effect on the date of the enactment of this Act.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H9AC46EE3395B4A5180FBD5A1836A7111">
<enum>(d)</enum>
<header display-inline="yes-display-inline">Allow certain plan transfers and mergers</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDD6B134F9B5740DBBFD7117F4BA5D30E">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">Section 414 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H2C4659A3A376421FB9AC5145B6817DDE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H66915EB542FC4CFAB6120FFDDD9469B6">
<enum>(z)</enum>
<header display-inline="yes-display-inline">Certain plan transfers and mergers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2BAD46DD492C4CBA8E8324F4D7414FD2">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">Under rules prescribed by the Secretary, except as provided in paragraph (2), no amount shall be includible in gross income by reason of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H329C9710204E4B9AA3A9D21488E9B789">
<enum>(A)</enum>
<text display-inline="yes-display-inline">a transfer of all or a portion of the accrued benefit of a participant or beneficiary, whether or not vested, from a church plan that is a plan described in section 401(a) or an annuity contract described in section 403(b) to an annuity contract described in section 403(b), if such plan and annuity contract are both maintained by the same church or convention or association of churches,</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HCBC52663AC814EC082858783ED8F9EC6">
<enum>(B)</enum>
<text display-inline="yes-display-inline">a transfer of all or a portion of the accrued benefit of a participant or beneficiary, whether or not vested, from an annuity contract described in section 403(b) to a church plan that is a plan described in section 401(a), if such plan and annuity contract are both maintained by the same church or convention or association of churches, or</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H397832E67DFC4D808E807AD7ADD9C00E">
<enum>(C)</enum>
<text display-inline="yes-display-inline">a merger of a church plan that is a plan described in section 401(a), or an annuity contract described in section 403(b), with an annuity contract described in section 403(b), if such plan and annuity contract are both maintained by the same church or convention or association of churches.</text>
</subparagraph>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF2147AE2AFFA48CF944BB93F03AE4BC6">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Limitation</header>
<text display-inline="yes-display-inline">Paragraph (1) shall not apply to a transfer or merger unless the participant’s or beneficiary's total accrued benefit immediately after the transfer or merger is equal to or greater than the participant’s or beneficiary's total accrued benefit immediately before the transfer or merger, and such total accrued benefit is nonforfeitable after the transfer or merger.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H75561D1031B84FDCAA49CAC1A5500314">
<enum>(3)</enum>
<header display-inline="yes-display-inline">Qualification</header>
<text display-inline="yes-display-inline">A plan or annuity contract shall not fail to be considered to be described in section 401(a) or 403(b) merely because such plan or annuity contract engages in a transfer or merger described in this subsection.</text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD1B626168FAD4124930671731C648EF0">
<enum>(4)</enum>
<header display-inline="yes-display-inline">Definitions</header>
<text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA9C7CBA97D934DEC9038CA0F8679C2B5">
<enum>(A)</enum>
<header display-inline="yes-display-inline">Church or convention or association of churches</header>
<text display-inline="yes-display-inline">The term <term>church or convention or association of churches</term> includes an organization described in subparagraph (A) or (B)(ii) of subsection (e)(3).</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5A2A233B35D9455CB9258EDDD8AAED8B">
<enum>(B)</enum>
<header display-inline="yes-display-inline">Annuity contract</header>
<text display-inline="yes-display-inline">The term <term>annuity contract</term> includes a custodial account described in section 403(b)(7) and a retirement income account described in section 403(b)(9).</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H7C44CD8E0DAF46CE9257D041D7C37D33">
<enum>(C)</enum>
<header display-inline="yes-display-inline">Accrued benefit</header>
<text display-inline="yes-display-inline">The term <term>accrued benefit</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="HF3767F813C014CBC9BDA16E83E3D31F3">
<enum>(i)</enum>
<text display-inline="yes-display-inline">in the case of a defined benefit plan, the employee's accrued benefit determined under the plan, and</text>
</clause>
<clause commented="no" display-inline="no-display-inline" id="H4FCCDF2D483F48B187ED295726B9227D">
<enum>(ii)</enum>
<text display-inline="yes-display-inline">in the case of a plan other than a defined benefit plan, the balance of the employee's account under the plan.</text>
</clause>
</subparagraph>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA85796CF32B6473895081DB748EFD333">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Effective date</header>
<text display-inline="yes-display-inline">The amendment made by this subsection shall apply to transfers or mergers occurring after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAFDB6467205346FC86D8AB7A771BBC61">
<enum>(e)</enum>
<header display-inline="yes-display-inline">Investments by church plans in collective trusts</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6640C92981D24FBFB4DB780896AF6A68">
<enum>(1)</enum>
<header display-inline="yes-display-inline">In general</header>
<text display-inline="yes-display-inline">In the case of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0ED35832800641ECB30ED236CABDC0AC">
<enum>(A)</enum>
<text display-inline="yes-display-inline">a church plan (as defined in section 414(e) of the Internal Revenue Code of 1986), including a plan described in section 401(a) of such Code and a retirement income account described in section 403(b)(9) of such Code, and</text>
</subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H1468EBA9E5BC4BC29804BB5E4C680CEE">
<enum>(B)</enum>
<text display-inline="yes-display-inline">an organization described in section 414(e)(3)(A) of such Code the principal purpose or function of which is the administration of such a plan or account,</text>
</subparagraph>
<continuation-text commented="no" continuation-text-level="paragraph">the assets of such plan, account, or organization (including any assets otherwise permitted to be commingled for investment purposes with the assets of such a plan, account, or organization) may be invested in a group trust otherwise described in Internal Revenue Service Revenue Ruling 81–100 (as modified by Internal Revenue Service Revenue Rulings 2004–67, 2011–1, and 2014–24), or any subsequent revenue ruling that supersedes or modifies such revenue ruling, without adversely affecting the tax status of the group trust, such plan, account, or organization, or any other plan or trust that invests in the group trust.</continuation-text>
</paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H8D15D451A27A4719B57A6F14407E264B">
<enum>(2)</enum>
<header display-inline="yes-display-inline">Effective date</header>
<text display-inline="yes-display-inline">This subsection shall apply to investments made after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
</section>
</subtitle>
<subtitle id="H3B58647358824ED9A947A5CFB93F3905">
<enum>D</enum>
<header>Revenue Provisions</header>
<section id="H6FBBD0F394E440CCBB70D502620A8DF2">
<enum>341.</enum>
<header>Updated ASHRAE standards for energy efficient commercial buildings deduction</header>
<subsection id="HFC0BB58F72BD4BBD9D3ED1D099969AB1" commented="no" display-inline="no-display-inline">
<enum>(a)</enum>
<header>In general</header>
<text>Paragraph (1) of section 179D(c) is amended by striking <quote>Standard 90.1–2001</quote> each place it appears and inserting <quote>Standard 90.1–2007</quote>.</text>
</subsection>
<subsection id="H073AA14702D9425A98C009285622D18B" commented="no" display-inline="no-display-inline">
<enum>(b)</enum>
<header>Conforming amendments</header>
<paragraph id="HEA7DE0D354494E6E9230F5D897DD7639" commented="no" display-inline="no-display-inline">
<enum>(1)</enum>
<text>Paragraph (2) of section 179D(c) is amended to read as follows:</text>
<quoted-block style="OLC" act-name="" id="HA87CB268624E4484907E8F6554BB41EE">
<paragraph id="HE916357028B846B4A80EC5C73E48725B">
<enum>(2)</enum>
<header>Standard 90.1–2007</header>
<text>The term <term>Standard 90.1–2007</term> means Standard 90.1–2007 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on the day before the date of the adoption of Standard 90.1–2010 of such Societies).</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="H7D0ACFF76FE444ADB663135572448910" commented="no" display-inline="no-display-inline">
<enum>(2)</enum>
<text>Subsection (f) of section 179D is amended by striking <quote>Standard 90.1–2001</quote> each place it appears in paragraphs (1) and (2)(C)(i) and inserting <quote>Standard 90.1–2007</quote>.</text>
</paragraph>
<paragraph id="H4CC75F281D164D51BAF6EB18D628B288" commented="no" display-inline="no-display-inline">
<enum>(3)</enum>
<text>Paragraph (1) of section 179D(f) is amended—</text>
<subparagraph id="HCD4E74E28CCE4A2ABFE5518F57FB9586" commented="no" display-inline="no-display-inline">
<enum>(A)</enum>
<text>by striking <quote>Table 9.3.1.1</quote> and inserting <quote>Table 9.5.1</quote>, and</text>
</subparagraph>
<subparagraph id="H127B1A0FB9654FA7B2547B870753F086" commented="no" display-inline="no-display-inline">
<enum>(B)</enum>
<text>by striking <quote>Table 9.3.1.2</quote> and inserting <quote>Table 9.6.1</quote>.</text>
</subparagraph>
</paragraph>
</subsection>
<subsection id="H29448927C5FC43F98EED952574E31443">
<enum>(c)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this subsection shall apply to property placed in service after December 31, 2015.</text>
</subsection>
</section>
<section id="H237CF89C9B884AD3B890E9B306F3591E">
<enum>342.</enum>
<header>Excise tax credit equivalency for liquified petroleum gas and liquified natural gas</header>
<subsection id="H8768268D5FAD4069ACFEFED9853B3B59">
<enum>(a)</enum>
<header>In general</header>
<text>Section 6426 is amended by adding at the end the following new subsection:</text>
<quoted-block act-name="" id="H757A7580569A46CFBD2F86CCF9FE2E2A" style="OLC">
<subsection id="HF30609181D3E4686A52B53F1DF0AFA75">
<enum>(j)</enum>
<header>Energy equivalency determinations for liquefied petroleum gas and liquefied natural gas</header>
<text>For purposes of determining any credit under this section, any reference to the number of gallons of an alternative fuel or the gasoline gallon equivalent of such a fuel shall be treated as a reference to—</text>
<paragraph id="H0441CE005F674ECA82F28114678DECDC">
<enum>(1)</enum>
<text>in the case of liquefied petroleum gas, the energy equivalent of a gallon of gasoline, as defined in section 4041(a)(2)(C), and</text>
</paragraph>
<paragraph id="H27100FEF9BD647EBBC6809FC5C1B06FF">
<enum>(2)</enum>
<text>in the case of liquefied natural gas, the energy equivalent of a gallon of diesel, as defined in section 4041(a)(2)(D).</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5042E054D06B41B79EEB61CEBE125428">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to fuel sold or used after December 31, 2015.</text>
</subsection>
</section>
<section commented="no" display-inline="no-display-inline" id="H18D3ACF5F256422692C4523522B74AC0">
<enum>343.</enum>
<header>Exclusion from gross income of certain clean coal power grants to non-corporate taxpayers</header>
<subsection id="H57B4771C99BA43D6A93947ECE0D9F4E1" commented="no">
<enum>(a)</enum>
<header>General rule</header>
<text>In the case of an eligible taxpayer other than a corporation, gross income for purposes of the Internal Revenue Code of 1986 shall not include any amount received under section 402 of the Energy Policy Act of 2005.</text>
</subsection>
<subsection id="HC5F02DB1522D4984BC732142FE62F37F" commented="no">
<enum>(b)</enum>
<header>Reduction in basis</header>
<text>The basis of any property subject to the allowance for depreciation under the Internal Revenue Code of 1986 which is acquired with any amount to which subsection (a) applies during the 12-month period beginning on the day such amount is received shall be reduced by an amount equal to such amount. The excess (if any) of such amount over the amount of the reduction under the preceding sentence shall be applied to the reduction (as of the last day of the period specified in the preceding sentence) of the basis of any other property held by the taxpayer. The particular properties to which the reductions required by this subsection are allocated shall be determined by the Secretary of the Treasury (or the Secretary's delegate) under regulations similar to the regulations under section 362(c)(2) of such Code.</text>
</subsection>
<subsection id="H8B1325820CAD41C7AD67910A3A9D5DCA" commented="no">
<enum>(c)</enum>
<header>Limitation to amounts which would be contributions to capital</header>
<text>Subsection (a) shall not apply to any amount unless such amount, if received by a corporation, would be excluded from gross income under section 118 of the Internal Revenue Code of 1986.</text>
</subsection>
<subsection id="H655DC169DB5B4064A4A57FB9F2322C6C" commented="no">
<enum>(d)</enum>
<header>Eligible taxpayer</header>
<text>For purposes of this section, with respect to any amount received under section 402 of the Energy Policy Act of 2005, the term <term>eligible taxpayer</term> means a taxpayer that makes a payment to the Secretary of the Treasury (or the Secretary's delegate) equal to 1.18 percent of the amount so received. Such payment shall be made at such time and in such manner as such Secretary (or the Secretary's delegate) shall prescribe. In the case of a partnership, such Secretary (or the Secretary's delegate) shall prescribe regulations to determine the allocation of such payment amount among the partners.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HBDB78106AD78424BB29795E885251B67">
<enum>(e)</enum>
<header>Effective date</header>
<text>This section shall apply to amounts received under section 402 of the Energy Policy Act of 2005 in taxable years beginning after December 31, 2011.</text>
</subsection>
</section>
<section id="HEB427C307A384E518EBDB4D3586DD403" section-type="subsequent-section">
<enum>344.</enum>
<header>Clarification of valuation rule for early termination of certain charitable remainder unitrusts</header>
<subsection id="H35128A185D634C73AE0256F03374B45D">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 664(e) is amended—</text>
<paragraph id="H46A9B230E21D47F5A96C2CBF8BD1F2DB">
<enum>(1)</enum>
<text>by adding at the end the following: <quote>In the case of the early termination of a trust which is a charitable remainder unitrust by reason of subsection (d)(3), the valuation of interests in such trust for purposes of this section shall be made under rules similar to the rules of the preceding sentence.</quote>, and</text>
</paragraph>
<paragraph id="HC87E2AD63E484CDBA967E10CF6806FCA">
<enum>(2)</enum>
<text>by striking <quote><header-in-text level="subsection" style="OLC">for purposes of charitable contribution</header-in-text></quote> in the heading thereof and inserting <quote><header-in-text level="subsection" style="OLC">of interests</header-in-text></quote>.</text>
</paragraph>
</subsection>
<subsection id="H9D7501C64CB145B38A82226085B55C40">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to terminations of trusts occurring after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H7A250EDAA1E54C44947178F75FFF3980">
<enum>345.</enum>
<header>Prevention of transfer of certain losses from tax indifferent parties</header>
<subsection id="HD088514FC2C64CDC932E552691198F45">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 267(d) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC94893AD12AC4468BFE27B81B26C2C58" style="OLC">
<subsection id="H1525CC0C908F45AB97848CC7995DA2EC">
<enum>(d)</enum>
<header>Amount of gain where loss previously disallowed</header>
<paragraph id="H6C35DE00F325479D99248CBA3B86FD39">
<enum>(1)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">If—</text>
<subparagraph id="HDD46E70890DB4005A20863A1258DE80D">
<enum>(A)</enum>
<text display-inline="yes-display-inline">in the case of a sale or exchange of property to the taxpayer a loss sustained by the transferor is not allowable to the transferor as a deduction by reason of subsection (a)(1), and</text>
</subparagraph>
<subparagraph id="H6278A70529524745B34921AF0E00C751">
<enum>(B)</enum>
<text>the taxpayer sells or otherwise disposes of such property (or of other property the basis of which in the taxpayer’s hands is determined directly or indirectly by reference to such property) at a gain,</text>
</subparagraph>
<continuation-text continuation-text-level="paragraph">then such gain shall be recognized only to the extent that it exceeds so much of such loss as is properly allocable to the property sold or otherwise disposed of by the taxpayer.</continuation-text>
</paragraph>
<paragraph id="H60F623734F654E57B64ED1815F9897DA">
<enum>(2)</enum>
<header>Exception for wash sales</header>
<text>Paragraph (1) shall not apply if the loss sustained by the transferor is not allowable to the transferor as a deduction by reason of section 1091 (relating to wash sales).</text>
</paragraph>
<paragraph id="H5B5278AE9AF440B9B2B1F0B4C9A22D23">
<enum>(3)</enum>
<header>Exception for transfers from tax indifferent parties</header>
<text>Paragraph (1) shall not apply to the extent any loss sustained by the transferor (if allowed) would not be taken into account in determining a tax imposed under section 1 or 11 or a tax computed as provided by either of such sections.</text>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H16CBF436ACE74A62AD52CC0117A11C36">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to sales and other dispositions of property acquired after December 31, 2015, by the taxpayer in a sale or exchange to which section 267(a)(1) of the Internal Revenue Code of 1986 applied.</text>
</subsection>
</section>
<section id="H7861480583C94B72B678C7693765D570" section-type="subsequent-section">
<enum>346.</enum>
<header>Treatment of certain persons as employers with respect to motion picture projects</header>
<subsection id="H0AC8AF00D5A944E7AF8A87A7AE57971E">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Chapter 25 (relating to general provisions relating to employment taxes) is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H7179D68508A544A58D7771F53B2408D9" style="OLC">
<section id="H70BB6B9331C34D8EA358D324CDE20CA0">
<enum>3512.</enum>
<header>Treatment of certain persons as employers with respect to motion picture projects</header>
<subsection id="HD2B3260E2ED34A35A0542A786AC82E12">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">For purposes of sections 3121(a)(1) and 3306(b)(1), remuneration paid to a motion picture project worker by a motion picture project employer during a calendar year shall be treated as remuneration paid with respect to employment of such worker by such employer during the calendar year. The identity of such employer for such purposes shall be determined as set forth in this section and without regard to the usual common law rules applicable in determining the employer-employee relationship.</text>
</subsection>
<subsection id="H83A2E895EB924ADA878D6A0B37D750F8">
<enum>(b)</enum>
<header>Definitions</header>
<text>For purposes of this section—</text>
<paragraph id="H603059188D0F42FDB0AB4973D9BC177D">
<enum>(1)</enum>
<header>Motion picture project employer</header>
<text>The term <term>motion picture project employer</term> means any person if—</text>
<subparagraph id="H9F0E23CD170140BBA89ABFB0C7F1732F">
<enum>(A)</enum>
<text>such person (directly or through affiliates)—</text>
<clause id="HB974EED47C204E4A839FB1671EF8FBD9">
<enum>(i)</enum>
<text>is a party to a written contract covering the services of motion picture project workers with respect to motion picture projects in the course of a client's trade or business,</text>
</clause>
<clause id="H932E21247D2748E985C6685E02373846">
<enum>(ii)</enum>
<text>is contractually obligated to pay remuneration to the motion picture project workers without regard to payment or reimbursement by any other person,</text>
</clause>
<clause id="H69D444CCD3C3421290FFB7DDD3717448">
<enum>(iii)</enum>
<text>controls the payment (within the meaning of section 3401(d)(1)) of remuneration to the motion picture project workers and pays such remuneration from its own account or accounts,</text>
</clause>
<clause id="H56B40B227CE3450E89F32FD3B502D348">
<enum>(iv)</enum>
<text>is a signatory to one or more collective bargaining agreements with a labor organization (as defined in 29 U.S.C. 152(5)) that represents motion picture project workers, and</text>
</clause>
<clause id="HA651924A8D8348B8844789C3B8BBCFA5">
<enum>(v)</enum>
<text>has treated substantially all motion picture project workers that such person pays as employees and not as independent contractors during such calendar year for purposes of determining employment taxes under this subtitle, and</text>
</clause>
</subparagraph>
<subparagraph id="H2773CF231A324379851133E79B39FE2D">
<enum>(B)</enum>
<text>at least 80 percent of all remuneration (to which section 3121 applies) paid by such person in such calendar year is paid to motion picture project workers.</text>
</subparagraph>
</paragraph>
<paragraph id="H5923EF7B458D497A93CED76CD2714BDB">
<enum>(2)</enum>
<header>Motion picture project worker</header>
<text>The term <term>motion picture project worker</term> means any individual who provides services on motion picture projects for clients who are not affiliated with the motion picture project employer.</text>
</paragraph>
<paragraph id="H5C54372903E049A88A6D7E2BFB2EE06A">
<enum>(3)</enum>
<header>Motion picture project</header>
<text display-inline="yes-display-inline">The term <term>motion picture project</term> means the production of any property described in section 168(f)(3). Such term does not include property with respect to which records are required to be maintained under section 2257 of title 18, United States Code.</text>
</paragraph>
<paragraph id="H785A3C70D4534BD3B4B49383AF64AAF6">
<enum>(4)</enum>
<header>Affiliate; affiliated</header>
<text display-inline="yes-display-inline">A person shall be treated as an affiliate of, or affiliated with, another person if such persons are treated as a single employer under subsection (b) or (c) of section 414.</text>
</paragraph>
</subsection>
</section>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HD98B19D0940F41EA9BD3C65893812175">
<enum>(b)</enum>
<header>Clerical amendment</header>
<text>The table of sections for such chapter 25 is amended by adding at the end the following new item:</text>
<toc regeneration="no-regeneration">
<toc-entry level="section">
<quote>Sec. 3512. Treatment of certain persons as employers with respect to motion picture projects.</quote>.</toc-entry>
</toc>
</subsection>
<subsection display-inline="no-display-inline" id="H5020C335586F4799BD69F04047B0DE1E">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to remuneration paid after December 31, 2015.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5BFC3AB2EAD34A47AC41E8AAD43F634A">
<enum>(d)</enum>
<header>No inference</header>
<text>Nothing in the amendments made by this section shall be construed to create any inference on the law before the date of the enactment of this Act.</text>
</subsection>
</section>
</subtitle>
<enum>IV</enum>
<header>Tax administration</header>
<subtitle id="H24FF39F59740407ABB005504195CF531">
<enum>A</enum>
<header>Internal Revenue Service reforms</header>
<section id="H76AB471ACADD4BCD8092311EB7E7B026">
<enum>401.</enum>
<header>Duty to ensure that Internal Revenue Service employees are familiar with and act in accord with certain taxpayer rights</header>
<subsection id="H7CA8EECC4CA946C3A1BFE037A9EE2620">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 7803(a) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H47468A578E1B4400A0185F8BF9886D5E" style="OLC">
<paragraph id="HD86DF8F32A994DFB9B02798C37BCC932">
<enum>(3)</enum>
<header>Execution of duties in accord with taxpayer rights</header>
<text display-inline="yes-display-inline">In discharging his duties, the Commissioner shall ensure that employees of the Internal Revenue Service are familiar with and act in accord with taxpayer rights as afforded by other provisions of this title, including—</text>
<subparagraph id="H878E8B4332DC49319B3D765D002D7E4D">
<enum>(A)</enum>
<text>the right to be informed,</text>
</subparagraph>
<subparagraph id="H0BDBF13990614297A7D8FB4C321173DE">
<enum>(B)</enum>
<text>the right to quality service,</text>
</subparagraph>
<subparagraph id="HBD8E007CF5B14C4AB371644063F37CBB">
<enum>(C)</enum>
<text>the right to pay no more than the correct amount of tax,</text>
</subparagraph>
<subparagraph id="H00D2F3D228AE4AC29F6839257A9610B3">
<enum>(D)</enum>
<text>the right to challenge the position of the Internal Revenue Service and be heard,</text>
</subparagraph>
<subparagraph id="HF57956F1D292426AAA315DFF19200B3E">
<enum>(E)</enum>
<text>the right to appeal a decision of the Internal Revenue Service in an independent forum,</text>
</subparagraph>
<subparagraph id="H80C898AED48044DDA2227A6310AB020F">
<enum>(F)</enum>
<text>the right to finality,</text>
</subparagraph>
<subparagraph id="H2451381E6A274602B62E998B08A5AAFA">
<enum>(G)</enum>
<text>the right to privacy,</text>
</subparagraph>
<subparagraph id="H97D9601EADE946478A7C460C8D4BF062">
<enum>(H)</enum>
<text>the right to confidentiality,</text>
</subparagraph>
<subparagraph id="HF5E1BDCD302B42EBB82F7C5B38BBA7E2">
<enum>(I)</enum>
<text>the right to retain representation, and</text>
</subparagraph>
<subparagraph id="HE578DF186A824BD999046A22411B7678">
<enum>(J)</enum>
<text>the right to a fair and just tax system.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H19B89F1E68384C9187A6D62CED4AAFFD">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall take effect on the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HF43AA138E2654484858109E746298581" section-type="subsequent-section">
<enum>402.</enum>
<header>IRS employees prohibited from using personal email accounts for official business</header>
<text display-inline="no-display-inline">No officer or employee of the Internal Revenue Service may use a personal email account to conduct any official business of the Government.</text>
</section>
<section id="H15D5FAF32D7A476B9A18A4C57CDB0E6B" section-type="subsequent-section">
<enum>403.</enum>
<header>Release of information regarding the status of certain investigations</header>
<subsection id="H0097104598D84791A237BC4405AD0FEE">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 6103(e) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HAC24421FA4964DAC882D219017E729C4" style="OLC">
<paragraph id="H2A35B5BFFA974DDA995F61B2D043F552">
<enum>(11)</enum>
<header>Disclosure of information regarding status of investigation of violation of this section</header>
<text display-inline="yes-display-inline">In the case of a person who provides to the Secretary information indicating a violation of section 7213, 7213A, or 7214 with respect to any return or return information of such person, the Secretary may disclose to such person (or such person’s designee)—</text>
<subparagraph id="HF1D328F7E2DE40939E839D0248E16CBC">
<enum>(A)</enum>
<text>whether an investigation based on the person’s provision of such information has been initiated and whether it is open or closed,</text>
</subparagraph>
<subparagraph id="H8341670A2AB6497D8F991A2CEE3DD778">
<enum>(B)</enum>
<text>whether any such investigation substantiated such a violation by any individual, and</text>
</subparagraph>
<subparagraph id="H320AEA3EFEC54D8DA3348B0499F9E072">
<enum>(C)</enum>
<text>whether any action has been taken with respect to such individual (including whether a referral has been made for prosecution of such individual).</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HA07FE60310A9487284133BDFB62FF8B9">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendment made by this section shall apply to disclosures made on or after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H58A9B994C2D94D949F273E2BC598AC34" section-type="subsequent-section">
<enum>404.</enum>
<header>Administrative appeal relating to adverse determinations of tax-exempt status of certain organizations</header>
<subsection id="HDAC212A25BEA4E7797CE09D2EFF617B5">
<enum>(a)</enum>
<header>In general</header>
<text>Section 7123 is amended by adding at the end of the following:</text>
<quoted-block id="H21538BE1CBE6417EA70D5888897992EE" style="OLC">
<subsection id="H8252CFB37E504D2D966C7BF30FE64B34">
<enum>(c)</enum>
<header>Administrative appeal relating to adverse determination of tax-Exempt status of certain organizations</header>
<paragraph id="HA4451371E313400BB985B34BEB299008">
<enum>(1)</enum>
<header>In general</header>
<text>The Secretary shall prescribe procedures under which an organization which claims to be described in section 501(c) may request an administrative appeal (including a conference relating to such appeal if requested by the organization) to the Internal Revenue Service Office of Appeals of an adverse determination described in paragraph (2).</text>
</paragraph>
<paragraph id="HA00D2208548B46D9B7B0B0CDD37D8EEE">
<enum>(2)</enum>
<header>Adverse determinations</header>
<text>For purposes of paragraph (1), an adverse determination is described in this paragraph if such determination is adverse to an organization with respect to—</text>
<subparagraph id="HEC1699FD6AAB4879A6B335D5BACFA0A3">
<enum>(A)</enum>
<text>the initial qualification or continuing qualification of the organization as exempt from tax under section 501(a) or as an organization described in section 170(c)(2),</text>
</subparagraph>
<subparagraph id="HE3D80F179BAC4D1A8FD75D695651BA86">
<enum>(B)</enum>
<text>the initial classification or continuing classification of the organization as a private foundation under section 509(a), or</text>
</subparagraph>
<subparagraph id="H3175EA0F53834F6AB4D943829E5C16C0">
<enum>(C)</enum>
<text>the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).</text>
</subparagraph>
</paragraph>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H9199F7464B1246B6BCEFF93697DE138C">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to determinations made on or after May 19, 2014.</text>
</subsection>
</section>
<section id="H01B853CC30E84BF18026FCC7CFB50704" section-type="subsequent-section">
<enum>405.</enum>
<header>Organizations required to notify Secretary of intent to operate under <enum-in-header>501(c)(4)</enum-in-header></header>
<subsection id="H7BCCA5CCD4244BC0B113B1A3BEA6F1E9">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Part I of subchapter F of chapter 1 is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="H86C079A8C6A9430399A6C330EC101DAA" display-inline="no-display-inline">
<section id="H1B1F3398FA9A488B908E21D2B10098F1">
<enum>506.</enum>
<header>Organizations required to notify Secretary of intent to operate under <enum-in-header>501(c)(4)</enum-in-header></header>
<subsection id="HAC4523AF8997417CA6328A3AF49FD222">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">An organization described in section 501(c)(4) shall, not later than 60 days after the organization is established, notify the Secretary (in such manner as the Secretary shall by regulation prescribe) that it is operating as such.</text>
</subsection>
<subsection id="H3826D4AA7EF14CD3A9E45D2628CA0098">
<enum>(b)</enum>
<header>Contents of notice</header>
<text>The notice required under subsection (a) shall include the following information:</text>
<paragraph id="HBCAF6777815F46038B22222BE9114418">
<enum>(1)</enum>
<text>The name, address, and taxpayer identification number of the organization.</text>
</paragraph>
<paragraph id="HACD805C87EF74847B7DD0278A7157807">
<enum>(2)</enum>
<text>The date on which, and the State under the laws of which, the organization was organized.</text>
</paragraph>
<paragraph id="H5FF47352E6B94BF59EA8AE340847381C">
<enum>(3)</enum>
<text>A statement of the purpose of the organization.</text>
</paragraph>
</subsection>
<subsection id="HDA12484D553A480991E0B1FD1B947714">
<enum>(c)</enum>
<header>Acknowledgment of receipt</header>
<text>Not later than 60 days after receipt of such a notice, the Secretary shall send to the organization an acknowledgment of such receipt.</text>
</subsection>
<subsection id="HA6600D9A6B444360B504D5AEADD02ACD">
<enum>(d)</enum>
<header>Extension for reasonable cause</header>
<text>The Secretary may, for reasonable cause, extend the 60-day period described in subsection (a).</text>
</subsection>
<subsection id="HDBA73061DD494F24A99802EF0644B24B">
<enum>(e)</enum>
<header>User fee</header>
<text>The Secretary shall impose a reasonable user fee for submission of the notice under subsection (a).</text>
</subsection>
<subsection id="HC6C2DFB04C394DE4A0E75F67BE5811A4">
<enum>(f)</enum>
<header>Request for determination</header>
<text display-inline="yes-display-inline">Upon request by an organization to be treated as an organization described in section 501(c)(4), the Secretary may issue a determination with respect to such treatment. Such request shall be treated for purposes of section 6104 as an application for exemption from taxation under section 501(a).</text>
</subsection>
</section>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H741413674973400383CB6B05503E7F54">
<enum>(b)</enum>
<header>Supporting information with first return</header>
<text>Section 6033(f) is amended—</text>
<paragraph id="HD7A5CD2259B644FE9AB9D7F07E53F874">
<enum>(1)</enum>
<text>by striking the period at the end and inserting <quote>, and</quote>, </text>
</paragraph>
<paragraph id="H72AF1315EB664919AFF76725990AB74C">
<enum>(2)</enum>
<text display-inline="yes-display-inline">by striking <quote>include on the return required under subsection (a) the information</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H2AAAB6DDBECC4DFB9AA86B81C7039643" display-inline="yes-display-inline">
<text display-inline="yes-display-inline">include on the return required under subsection (a)—</text>
<paragraph id="H7711A1FF2B7F458EB0BC73A9F4B8573D">
<enum>(1)</enum>
<text display-inline="yes-display-inline">the information</text>
</paragraph>
<after-quoted-block>, and</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HD1ED2996BE784B489F379A871D20680F">
<enum>(3)</enum>
<text>by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H700E89A2249C4E188F0C6F56309D83C4" display-inline="no-display-inline">
<paragraph id="H91772D6BCD184B1297126E4956AAF5D9">
<enum>(2)</enum>
<text display-inline="yes-display-inline">in the case of the first such return filed by such an organization after submitting a notice to the Secretary under section 506(a), such information as the Secretary shall by regulation require in support of the organization’s treatment as an organization described in section 501(c)(4).</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HF5145A6E9E2748B5AF4D59A4D3228EC1">
<enum>(c)</enum>
<header>Failure To file initial notification</header>
<text>Section 6652(c) is amended by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively, and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block style="OLC" id="HCCED50CFF8974D45BD3EF245AC7DE0B4" display-inline="no-display-inline">
<paragraph id="HB3DBCD715E204C388336BCEDAEB11C7A">
<enum>(4)</enum>
<header>Notices under section <enum-in-header>506</enum-in-header></header>
<subparagraph id="HDA2AFCD24FB74E5398189309CBFC48A8">
<enum>(A)</enum>
<header>Penalty on organization</header>
<text display-inline="yes-display-inline">In the case of a failure to submit a notice required under section 506(a) (relating to organizations required to notify Secretary of intent to operate as 501(c)(4)) on the date and in the manner prescribed therefor, there shall be paid by the organization failing to so submit $20 for each day during which such failure continues, but the total amount imposed under this subparagraph on any organization for failure to submit any one notice shall not exceed $5,000.</text>
</subparagraph>
<subparagraph id="H16577012E1DA4977A16092DD93C697E1">
<enum>(B)</enum>
<header>Managers</header>
<text display-inline="yes-display-inline">The Secretary may make written demand on an organization subject to penalty under subparagraph (A) specifying in such demand a reasonable future date by which the notice shall be submitted for purposes of this subparagraph. If such notice is not submitted on or before such date, there shall be paid by the person failing to so submit $20 for each day after the expiration of the time specified in the written demand during which such failure continues, but the total amount imposed under this subparagraph on all persons for failure to submit any one notice shall not exceed $5,000.</text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H34E22C3AA26642778810A544A7636AD2">
<enum>(d)</enum>
<header>Clerical amendment</header>
<text display-inline="yes-display-inline">The table of sections for part I of subchapter F of chapter 1 is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H23C3522A969A42F6B96EEA863AF33280" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H86C079A8C6A9430399A6C330EC101DAA" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H1B1F3398FA9A488B908E21D2B10098F1" level="section">Sec. 506. Organizations required to notify Secretary of intent to operate under <enum-in-header>501(c)(4)</enum-in-header>.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H650E3074A9C14EFDAEFFDF31EFE534D5" display-inline="no-display-inline">
<enum>(e)</enum>
<header>Limitation</header>
<text display-inline="yes-display-inline">Notwithstanding any other provision of law, any fees collected pursuant to section 506(e) of the Internal Revenue Code of 1986, as added by subsection (a), shall not be expended by the Secretary of the Treasury or the Secretary’s delegate unless provided by an appropriations Act.</text>
</subsection>
<subsection id="HA8CDEA423FC04EC0A1C4D40A15DA2EE5">
<enum>(f)</enum>
<header>Effective date</header>
<paragraph id="H94FDFF060D31430F966F6558914686E5">
<enum>(1)</enum>
<header>In general</header>
<text>The amendments made by this section shall apply to organizations which are described in section 501(c)(4) of the Internal Revenue Code of 1986 and organized after the date of the enactment of this Act.</text>
</paragraph>
<paragraph id="HA742E73BE0214A4DAF6A4A3A372B4863">
<enum>(2)</enum>
<header>Certain existing organizations</header>
<text>In the case of any other organization described in section 501(c)(4) of such Code, the amendments made by this section shall apply to such organization only if, on or before the date of the enactment of this Act—</text>
<subparagraph id="HDEC6F90901FB4CE1914091B5C04BCB8C">
<enum>(A)</enum>
<text>such organization has not applied for a written determination of recognition as an organization described in section 501(c)(4) of such Code, and</text>
</subparagraph>
<subparagraph id="H6967191A0161464289263C35D9253034">
<enum>(B)</enum>
<text>such organization has not filed at least one annual return or notice required under subsection (a)(1) or (i) (as the case may be) of section 6033 of such Code.</text>
</subparagraph>
<continuation-text continuation-text-level="paragraph">In the case of any organization to which the amendments made by this section apply by reason of the preceding sentence, such organization shall submit the notice required by section 506(a) of such Code, as added by this Act, not later than 180 days after the date of the enactment of this Act.</continuation-text>
</paragraph>
</subsection>
</section>
<section id="HB87C3F981108423EBDCEF7B6D6E26971" section-type="subsequent-section">
<enum>406.</enum>
<header>Declaratory judgments for <enum-in-header>501(c)(4)</enum-in-header> and other exempt organizations</header>
<subsection id="HD03B49D7A1B04D86ABC66201BB1F6C19">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Section 7428(a)(1) is amended by striking <quote>or</quote> at the end of subparagraph (C) and by inserting after subparagraph (D) the following new subparagraph:</text>
<quoted-block style="OLC" id="H483EA6DC55584B27AA0B37C3C28E3B4D" display-inline="no-display-inline">
<subparagraph id="HD74EB2019BAD48708AF98C19B4A5BAC7">
<enum>(E)</enum>
<text display-inline="yes-display-inline">with respect to the initial qualification or continuing qualification of an organization as an organization described in section 501(c) (other than paragraph (3)) or 501(d) and exempt from tax under section 501(a), or</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H68A6284956D047AA91B06103145B483E">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to pleadings filed after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H6842575C95E04BE89C1D9C6AF4ABDF36">
<enum>407.</enum>
<header>Termination of employment of Internal Revenue Service employees for taking official actions for political purposes</header>
<subsection id="H6B023DA566DF469C823A02DFC64ECF60">
<enum>(a)</enum>
<header>In general</header>
<text display-inline="yes-display-inline">Paragraph (10) of section 1203(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H943B0B4251894C0BA22A591A20F1B18F" style="OLC">
<paragraph id="HE8525A4064774E4A9F6C4787EB62BF80">
<enum>(10)</enum>
<text display-inline="yes-display-inline">performing, delaying, or failing to perform (or threatening to perform, delay, or fail to perform) any official action (including any audit) with respect to a taxpayer for purpose of extracting personal gain or benefit or for a political purpose.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H8EB110E954F147E39E069B5A6805D18A">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="H118D016720F64676BC189E5A84A1E6E3">
<enum>408.</enum>
<header>Gift tax not to apply to contributions to certain exempt organizations</header>
<subsection id="H1FE16049748444E29C9EE6A93C71C419">
<enum>(a)</enum>
<header>In general</header>
<text>Section 2501(a) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB320D6D22DE4499DBA16D46FC460653A" style="OLC">
<paragraph id="H507DC546CA074B2192CE8A1E0468CFA4">
<enum>(6)</enum>
<header>Transfers to certain exempt organizations</header>
<text>Paragraph (1) shall not apply to the transfer of money or other property to an organization described in paragraph (4), (5), or (6) of section 501(c) and exempt from tax under section 501(a), for the use of such organization.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H503BA43381BB4B84ABB7F40BB2D66E59">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by subsection (a) shall apply to gifts made after the date of the enactment of this Act.</text>
</subsection>
<subsection id="H62DCCF9EEECB4D94BB6EEDA1DBE11C1F">
<enum>(c)</enum>
<header>No inference</header>
<text>Nothing in the amendment made by subsection (a) shall be construed to create any inference with respect to whether any transfer of property (whether made before, on, or after the date of the enactment of this Act) to an organization described in paragraph (4), (5), or (6) of section 501(c) of the Internal Revenue Code of 1986 is a transfer of property by gift for purposes of chapter 12 of such Code.</text>
</subsection>
</section>
<section id="H6B925DB562284DB5BCF04E31C462C4F6">
<enum>409.</enum>
<header>Extend Internal Revenue Service authority to require truncated Social Security numbers on Form W–2</header>
<subsection id="H9C278E63A1B24994B63A53751992B250">
<enum>(a)</enum>
<header>Wages</header>
<text display-inline="yes-display-inline">Section 6051(a)(2) is amended by striking <quote>his social security account number</quote> and inserting <quote>an identifying number for the employee</quote>.</text>
</subsection>
<subsection id="H880D1D644AC0425FA5DFB342C3D67041">
<enum>(b)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendment made by this section shall take effect on the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HE77B4A28CCE34DBAB1A4DF60CCDF787A" section-type="subsequent-section">
<enum>410.</enum>
<header>Clarification of enrolled agent credentials</header>
<text display-inline="no-display-inline">Section 330 of title 31, United States Code, is amended—</text>
<paragraph id="H75BF452D7E8E41E88AD026BA06D179ED">
<enum>(1)</enum>
<text>by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively, and</text>
</paragraph>
<paragraph id="H25101658B49742EBAA52FACEA90C043C">
<enum>(2)</enum>
<text>by inserting after subsection (a) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H09EB8EF9B6C9408BAD58E27FB3CBB5EE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H679D4E4CAF4441FD9AC125DA5FFE8F55">
<enum>(b)</enum>
<text>Any enrolled agents properly licensed to practice as required under rules promulgated under subsection (a) shall be allowed to use the credentials or designation of <quote>enrolled agent</quote>, <quote>EA</quote>, or <quote>E.A.</quote>.</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</section>
<section id="HAC0A113612CA43F7916BFF415CA0E817" section-type="subsequent-section">
<enum>411.</enum>
<header>Partnership audit rules</header>
<subsection id="H90C7445F3C2E4660803371DE52D75C22">
<enum>(a)</enum>
<header>Correction and clarification to modifications to imputed underpayments</header>
<paragraph id="HE109CD7E7DDF4C69B56855B60ACE32F5">
<enum>(1)</enum>
<text display-inline="yes-display-inline">Section 6225(c)(4)(A)(i) is amended by striking <quote>in the case of ordinary income,</quote>. </text>
</paragraph>
<paragraph id="H705E75B3589647FCAAD091E9960FF61F">
<enum>(2)</enum>
<text>Section 6225(c) is amended by redesignating paragraphs (5) through (7) as paragraphs (6) through (8), respectively, and by inserting after paragraph (4) the following new paragraph:</text>
<quoted-block style="OLC" id="H7D5E5C24AC4B4332B48F2EB1150051DC" display-inline="no-display-inline">
<paragraph id="HAB7F59EFB8544AFCA7365C74FF91F371">
<enum>(5)</enum>
<header>Certain passive losses of publicly traded partnerships</header>
<subparagraph id="H42C9677A44FF49128B9FF19B9A539B05">
<enum>(A)</enum>
<header>In general</header>
<text>In the case of a publicly traded partnership (as defined in section 469(k)(2)), such procedures shall provide—</text>
<clause id="HD3E55CC3F9494C82840A5FA820B909C0">
<enum>(i)</enum>
<text>for determining the imputed underpayment without regard to the portion thereof that the partnership demonstrates is attributable to a net decrease in a specified passive activity loss which is allocable to a specified partner, and</text>
</clause>
<clause id="H97722D4338304631A6024888ED3A0677">
<enum>(ii)</enum>
<text>for the partnership to take such net decrease into account as an adjustment in the adjustment year with respect to the specified partners to which such net decrease relates.</text>
</clause>
</subparagraph>
<subparagraph id="HF14E67728BD84DF99D9E1C5582B7DD35">
<enum>(B)</enum>
<header>Specified passive activity loss</header>
<text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>specified passive activity loss</term> means, with respect to any specified partner of such publicly traded partnership, the lesser of—</text>
<clause id="HF2A45A0196CC40BB934D6AF13A62E82A">
<enum>(i)</enum>
<text>the passive activity loss of such partner which is separately determined with respect to such partnership under section 469(k) with respect to such partner’s taxable year in which or with which the reviewed year of such partnership ends, or</text>
</clause>
<clause id="H986E78A004B84B0391672A5EF0F35B8B">
<enum>(ii)</enum>
<text>such passive activity loss so determined with respect to such partner’s taxable year in which or with which the adjustment year of such partnership ends.</text>
</clause>
</subparagraph>
<subparagraph id="H8901EB83A78645E98B18C90FCAB14775">
<enum>(C)</enum>
<header>Specified partner</header>
<text>For purposes of this paragraph, the term <term>specified partner</term> means any person if such person—</text>
<clause id="H2194B3CAF1494A31BA02468BB0A796D7">
<enum>(i)</enum>
<text>is a partner of the publicly traded partnership referred to in subparagraph (A),</text>
</clause>
<clause id="HDC93C856F86C45189545CE2C8CFABB11">
<enum>(ii)</enum>
<text>is described in section 469(a)(2), and</text>
</clause>
<clause id="HA88D9653800043E1AFDB9BDFEB3A27A9">
<enum>(iii)</enum>
<text>has a specified passive activity loss with respect to such publicly traded partnership,</text>
</clause>
<continuation-text continuation-text-level="subparagraph">with respect to each taxable year of such person which is during the period beginning with the taxable year of such person in which or with which the reviewed year of such publicly traded partnership ends and ending with the taxable year of such person in which or with which the adjustment year of such publicly traded partnership ends.</continuation-text>
</subparagraph>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HC8A538065ADF4D7CAE9F745ACE94C2E3">
<enum>(b)</enum>
<header>Correction and clarification to judicial review of partnership adjustment </header>
<paragraph id="HD9BA0346EFC4471884381FCBE965EF25">
<enum>(1)</enum>
<text display-inline="yes-display-inline">Section 6226 is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H6F7B1CFAF8AE4BE1863AAA5DF30ED40D" display-inline="no-display-inline">
<subsection id="H81872BECB3F447EE8D6F5B99D9687207">
<enum>(d)</enum>
<header>Judicial review</header>
<text display-inline="yes-display-inline">For the time period within which a partnership may file a petition for a readjustment, see section 6234(a).</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HCA8F009059C84D54B3735A078DFDEC72">
<enum>(2)</enum>
<text>Subsections (a)(3), (b)(1), and (d) of section 6234 are each amended by striking <quote>the Claims Court</quote> and inserting <quote>the Court of Federal Claims</quote>.</text>
</paragraph>
<paragraph id="H3C89257AE0BD48FA8AD9A609B1140DEF">
<enum>(3)</enum>
<text>The heading for section 6234(b) is amended by striking <quote><header-in-text level="subsection" style="OLC">Claims Court</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Court of Federal Claims</header-in-text></quote>. </text>
</paragraph>
</subsection>
<subsection id="HA0485D0DCE4D490BAC4BC40C255A098F">
<enum>(c)</enum>
<header>Correction and clarification to period of limitations on making adjustments</header>
<paragraph id="H57D9BADC58B3491F867DEF8F5D926A94">
<enum>(1)</enum>
<text display-inline="yes-display-inline">Section 6235(a)(2) is amended by striking <quote>paragraph (4)</quote> and inserting <quote>paragraph (7)</quote>.</text>
</paragraph>
<paragraph id="H1D4DFBD1DA9747E19E654AA9396304F7">
<enum>(2)</enum>
<text>Section 6235(a)(3) is amended by striking <quote>270 days</quote> and inserting <quote>330 days (plus the number of days of any extension consented to by the Secretary under section 6225(c)(7)</quote>. </text>
</paragraph>
</subsection>
<subsection id="H70CBB063F18B4500A99CDEC2AD4151D6">
<enum>(d)</enum>
<header>Technical amendment</header>
<text>Section 6031(b) is amended by striking the last sentence and inserting the following: <quote>Except as provided in the procedures under section 6225(c), with respect to statements under section 6226, or as otherwise provided by the Secretary, information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection (a) to which such information relates.</quote>. </text>
</subsection>
<subsection id="H4A9B568B79EB452CAF0396F6352D8167">
<enum>(e)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall take effect as if included in section 1101 of the Bipartisan Budget Act of 2015.</text>
</subsection>
</section>
</subtitle>
<subtitle id="H07356CD49B574161ACBFF04482B75162">
<enum>B</enum>
<header>United States Tax Court</header>
<part style="OLC" id="H8C86148A45B34AD19FF2CAC4794FD550">
<enum>1</enum>
<header>Taxpayer access to United States Tax Court</header>
<section id="H14960EFFD64E4BC393E5855F8C6C5DC7">
<enum>421.</enum>
<header>Filing period for interest abatement cases</header>
<subsection id="HFC2A3459F1F4473B82E7105383373E5C">
<enum>(a)</enum>
<header>In general</header>
<text>Subsection (h) of section 6404 is amended—</text>
<paragraph id="H51F3020222D44800B60EF2B298E194B4">
<enum>(1)</enum>
<text>by striking <quote><header-in-text level="subsection" style="OLC">Review of denial</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">Judicial review</header-in-text></quote>, and</text>
</paragraph>
<paragraph id="HE6FE970F977342A4BE3AB95EF2FA565F">
<enum>(2)</enum>
<text>by striking <quote>if such action is brought</quote> and all that follows in paragraph (1) and inserting “if such action is brought—</text>
<quoted-block display-inline="no-display-inline" id="H95AC4C87A33B4B9EB85B0BCB1D07DFA6" style="OLC">
<subparagraph id="HCF5F7D463A9D4EA0AAA2D33024657317">
<enum>(A)</enum>
<text>at any time after the earlier of—</text>
<clause id="HB20DB20CEC8D4494A1D3CF1F140CB8AE">
<enum>(i)</enum>
<text>the date of the mailing of the Secretary’s final determination not to abate such interest, or</text>
</clause>
<clause id="H0DD5F7BF228A48679BB71BF9CE08500E">
<enum>(ii)</enum>
<text>the date which is 180 days after the date of the filing with the Secretary (in such form as the Secretary may prescribe) of a claim for abatement under this section, and</text>
</clause>
</subparagraph>
<subparagraph id="H0E0FC49D8C5B439E9747717F597CFCDA">
<enum>(B)</enum>
<text>not later than the date which is 180 days after the date described in subparagraph (A)(i).</text>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HEA11663589A2499E8187A593C43080BA">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to claims for abatement of interest filed with the Secretary of the Treasury after the date of the enactment of this Act.</text>
</subsection>
</section>
<section id="HA852A775762D45D99BF83C35DAEF1704">
<enum>422.</enum>
<header>Small tax case election for interest abatement cases</header>
<subsection id="H3E2DB6EA9D974A729294CD7468983054">
<enum>(a)</enum>
<header>In general</header>
<text>Subsection (f) of section 7463 is amended—</text>
<paragraph id="HC4A345DA13334DC48A96F37FC120F63E">
<enum>(1)</enum>
<text>by striking <quote>and</quote> at the end of paragraph (1),</text>
</paragraph>
<paragraph id="H8FFF0D8C5F0744D8AAD41E1608BF40EC">
<enum>(2)</enum>
<text>by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and</text>
</paragraph>
<paragraph id="HEEACA96C89004454B267CFEA28DF81B6">
<enum>(3)</enum>
<text>by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H0AB825EE5D784481A4463C5532ED5AE1" style="OLC">
<paragraph id="H02BB68BE583141098B7CAD1277807759">
<enum>(3)</enum>
<text>a petition to the Tax Court under section 6404(h) in which the amount of the abatement sought does not exceed $50,000.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="HF03678FAB3B64E40A205A046A180BA9E">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to cases pending as of the day after the date of the enactment of this Act, and cases commenced after such date of enactment.</text>
</subsection>
</section>
<section id="H0D9DD25089194C2C992741805AD7A005">
<enum>423.</enum>
<header>Venue for appeal of spousal relief and collection cases</header>
<subsection id="HB2CD630E52AD4B71A48322421A7E5503">
<enum>(a)</enum>
<header>In general</header>
<text>Paragraph (1) of section 7482(b) is amended—</text>
<paragraph id="H9D32AA9C63194C978B1D79E7A551182E">
<enum>(1)</enum>
<text>by striking <quote>or</quote> at the end of subparagraph (D),</text>
</paragraph>
<paragraph id="HDE7F0B73696441A2B216D8B4437D02DC">
<enum>(2)</enum>
<text>by striking the period at the end of subparagraph (E), and</text>
</paragraph>
<paragraph id="H6F4598A8126D4DA1A1409961231370B9">
<enum>(3)</enum>
<text>by inserting after subparagraph (E) the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H26145479C48F494B9CFB3883E2509D12" style="OLC">
<subparagraph id="H4F792FD66AAE46FEA307383E71BDEBB2">
<enum>(F)</enum>
<text>in the case of a petition under section 6015(e), the legal residence of the petitioner, or</text>
</subparagraph>
<subparagraph id="H63C759273D5B428B9DB9F250CDCF5897">
<enum>(G)</enum>
<text>in the case of a petition under section 6320 or 6330—</text>
<clause id="HEC8E673BD2004FB49C597F655D52B7CA">
<enum>(i)</enum>
<text>the legal residence of the petitioner if the petitioner is an individual, and</text>
</clause>
<clause id="H20A6BC9CEB5F48FF89385190AA20A9EE">
<enum>(ii)</enum>
<text>the principal place of business or principal office or agency if the petitioner is an entity other than an individual.</text>
</clause>
</subparagraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
</subsection>
<subsection id="H31C367A0EA2945609E960750D9E88D96">
<enum>(b)</enum>
<header>Effective date</header>
<paragraph id="HA078BA0A36A94951962B10993EB36860">
<enum>(1)</enum>
<header>In general</header>
<text>The amendments made by this section shall apply to petitions filed after the date of enactment of this Act.</text>
</paragraph>
<paragraph id="H99599844191F414CB8FE1421EBD02E96">
<enum>(2)</enum>
<header>Effect on existing proceedings</header>
<text>Nothing in this section shall be construed to create any inference with respect to the application of section 7482 of the Internal Revenue Code of 1986 with respect to court proceedings filed on or before the date of the enactment of this Act.</text>
</paragraph>
</subsection>
</section>
<section id="H697DAB6D88644B49A7A2DAED60C13EDD">
<enum>424.</enum>
<header>Suspension of running of period for filing petition of spousal relief and collection cases</header>
<subsection id="H779716FF230246838932127A28AB3E75">
<enum>(a)</enum>
<header>Petitions for spousal relief</header>
<paragraph id="H6327EC69E8554323BF3DB0616140B3CF">
<enum>(1)</enum>
<header>In general</header>
<text>Subsection (e) of section 6015 is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB01955224AA2421FB6355E562386C2C4" style="OLC">
<paragraph id="H3FA649A66AB840748E330791C7036211">
<enum>(6)</enum>
<header>Suspension of running of period for filing petition in title 11 cases</header>
<text>In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1)(A) with respect to a final determination of relief under this section, the running of the period prescribed by such paragraph for filing such a petition with respect to such final determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 60 days thereafter.</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</paragraph>
<paragraph id="HE033A4237BE04A3E9D7B8E5CEC1CA947">
<enum>(2)</enum>
<header>Effective date</header>
<text>The amendment made by this subsection shall apply to petitions filed under section 6015(e) of the Internal Revenue Code of 1986 after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
<subsection id="HEB87943370904B83A160EFD1BA133952">
<enum>(b)</enum>
<header>Collection proceedings</header>
<paragraph id="H6B60CAEB090647A28FA407AF98ACBABA">
<enum>(1)</enum>
<header>In general</header>
<text>Subsection (d) of section 6330 is amended—</text>
<subparagraph id="HCC3097C697DC47E7A3CE8B69A0E6E4DE">
<enum>(A)</enum>
<text>by striking <quote>appeal such determination to the Tax Court</quote> in paragraph (1) and inserting <quote>petition the Tax Court for review of such determination</quote>,</text>
</subparagraph>
<subparagraph id="H7E03E4F7EC9D4FA48DDC0FD120F771DB">
<enum>(B)</enum>
<text>by striking <quote><header-in-text level="paragraph" style="OLC">Judicial review of determination</header-in-text></quote> in the heading of paragraph (1) and inserting <quote><header-in-text level="paragraph" style="OLC">Petition for review by tax court</header-in-text></quote>,</text>
</subparagraph>
<subparagraph id="H389178933C0C4F1A97A3E543EF54B2A7">
<enum>(C)</enum>
<text>by redesignating paragraph (2) as paragraph (3), and</text>
</subparagraph>
<subparagraph id="HAF9A7967FE1849FA89F44D45A6BB66C7">
<enum>(D)</enum>
<text>by inserting after paragraph (1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4C4EF6748ECD40D49B9D08C9A6B82631" style="OLC">
<paragraph id="HA63542B0BF3E43958C3610E36174B969">
<enum>(2)</enum>
<header>Suspension of running of period for filing petition in title 11 cases</header>
<text>In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1) with respect to a determination under this section, the running of the period prescribed by such subsection for filing such a petition with respect to such determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 30 days thereafter, and</text>
</paragraph>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subparagraph>
</paragraph>
<paragraph id="H2FB0CAED839644D481AD71E935F2C85F">
<enum>(2)</enum>
<header>Effective date</header>
<text>The amendments made by this subsection shall apply to petitions filed under section 6330 of the Internal Revenue Code of 1986 after the date of the enactment of this Act.</text>
</paragraph>
</subsection>
<subsection id="HF5B07CB267754AA19C8400FE79264C4F">
<enum>(c)</enum>
<header>Conforming amendment</header>
<text>Subsection (c) of section 6320 is amended by striking <quote>(2)(B)</quote> and inserting <quote>(3)(B)</quote>.</text>
</subsection>
</section>
<section commented="no" id="HF36A5F0C276A45E4BDBCA17A29812CB4">
<enum>425.</enum>
<header>Application of Federal rules of evidence</header>
<subsection commented="no" id="H20D85934CFFF4EB18DAFCD8078E54A9F">
<enum>(a)</enum>
<header>In general</header>
<text>Section 7453 is amended by striking “the rules of evidence applicable in trials without a jury in the United States District Court of the District of Columbia” and inserting <quote>the Federal Rules of Evidence</quote>.</text>
</subsection>
<subsection commented="no" id="H43683AE6427C4A4498F574F2B5821662">
<enum>(b)</enum>
<header>Effective date</header>
<text>The amendment made by this section shall apply to proceedings commenced after the date of the enactment of this Act and, to the extent that it is just and practicable, to all proceedings pending on such date.</text>
</subsection>
</section>
</part>
<part style="OLC" id="H1B43F8DB3E6A426599F5EC5CA2681999">
<enum>2</enum>
<header>United States Tax Court administration</header>
<section id="H647A92CC8C0746F6A52E20FB82AF3CE3">
<enum>431.</enum>
<header>Judicial conduct and disability procedures</header>
<subsection id="H1113477559D04F8A9CA553AD71F35843">
<enum>(a)</enum>
<header>In general</header>
<text>Part II of subchapter C of chapter 76 is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HC27678C6FB1B423EAAEF985D94088592" style="OLC">
<section id="HE67E92FBCB754FE1AB7DDCE29158A5ED">
<enum>7466.</enum>
<header>Judicial conduct and disability procedures</header>
<subsection id="H1E4864CB11D04F6BB1CD510F08E7F32B">
<enum>(a)</enum>
<header>In general</header>
<text>The Tax Court shall prescribe rules, consistent with the provisions of chapter 16 of title 28, United States Code, establishing procedures for the filing of complaints with respect to the conduct of any judge or special trial judge of the Tax Court and for the investigation and resolution of such complaints. In investigating and taking action with respect to any such complaint, the Tax Court shall have the powers granted to a judicial council under such chapter.</text>
</subsection>
<subsection id="H049C36FA83C848F9B019A797E32988B1">
<enum>(b)</enum>
<header>Judicial council</header>
<text>The provisions of sections 354(b) through 360 of title 28, United States Code, regarding referral or certification to, and petition for review in the Judicial Conference of the United States, and action thereon, shall apply to the exercise by the Tax Court of the powers of a judicial council under subsection (a). The determination pursuant to section 354(b) or 355 of title 28, United States Code, shall be made based on the grounds for removal of a judge from office under section 7443(f), and certification and transmittal by the Conference of any complaint shall be made to the President for consideration under section 7443(f).</text>
</subsection>
<subsection id="H45A1F9A24F024D4F9F888728F2081A96">
<enum>(c)</enum>
<header>Hearings</header>
<paragraph id="H7D0F4342AE9441839BD149E4C755D334">
<enum>(1)</enum>
<header>In general</header>
<text>In conducting hearings pursuant to subsection (a), the Tax Court may exercise the authority provided under section 1821 of title 28, United States Code, to pay the fees and allowances described in that section.</text>
</paragraph>
<paragraph id="H78D08ADB8F6845F2BE3AB0095F22C269">
<enum>(2)</enum>
<header>Reimbursement for expenses</header>
<text>The Tax Court shall have the power provided under section 361 of such title 28 to award reimbursement for the reasonable expenses described in that section. Reimbursements under this paragraph shall be made out of any funds appropriated for purposes of the Tax Court.</text>
</paragraph>
</subsection>
</section>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H4547A59793464CCFA442DF29324AD42A">
<enum>(b)</enum>
<header>Clerical amendment</header>
<text>The table of sections for part II of subchapter C of chapter 76 is amended by adding at the end the following new item:</text>
<quoted-block id="H340046D7A07B40F59D555A678C0D908E" style="OLC">
<toc>
<toc-entry idref="HE67E92FBCB754FE1AB7DDCE29158A5ED" level="section">Sec. 7466. Judicial conduct and disability procedures.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="HB120AC52D7A64FA7BC092F360B298175">
<enum>(c)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to proceedings commenced after the date which is 180 days after the date of the enactment of this Act and, to the extent just and practicable, all proceedings pending on such date.</text>
</subsection>
</section>
<section id="HD331FABB0A344ABB91ABD9A57BD7E6A7">
<enum>432.</enum>
<header>Administration, judicial conference, and fees</header>
<subsection id="HB0CE440526DD4B1AAD1F80860D78F600">
<enum>(a)</enum>
<header>In general</header>
<text>Part III of subchapter C of chapter 76 is amended by inserting before section 7471 the following new sections:</text>
<quoted-block display-inline="no-display-inline" id="H423A3B709F0F4C83803C217822CE22E4" style="OLC">
<section id="H8BC8222A740A4EFC87B6A42F1253936C">
<enum>7470.</enum>
<header>Administration</header>
<text display-inline="no-display-inline">Notwithstanding any other provision of law, the Tax Court may exercise, for purposes of management, administration, and expenditure of funds of the Court, the authorities provided for such purposes by any provision of law (including any limitation with respect to such provision of law) applicable to a court of the United States (as that term is defined in section 451 of title 28, United States Code), except to the extent that such provision of law is inconsistent with a provision of this subchapter.</text>
</section>
<section id="H35A76B424EE34A57A6F723ED6644FE5A">
<enum>7470A.</enum>
<header>Judicial conference</header>
<subsection id="HE27B9A2E0C0A48589BED2D363CB0FB30">
<enum>(a)</enum>
<header>Judicial conference</header>
<text>The chief judge may summon the judges and special trial judges of the Tax Court to an annual judicial conference, at such time and place as the chief judge shall designate, for the purpose of considering the business of the Tax Court and recommending means of improving the administration of justice within the jurisdiction of the Tax Court. The Tax Court shall provide by its rules for representation and active participation at such conferences by persons admitted to practice before the Tax Court and by other persons active in the legal profession.</text>
</subsection>
<subsection id="H06F051FD820F465999FD71C3DB35F18C">
<enum>(b)</enum>
<header>Registration fee</header>
<text>The Tax Court may impose a reasonable registration fee on persons (other than judges and special trial judges of the Tax Court) participating at judicial conferences convened pursuant to subsection (a). Amounts so received by the Tax Court shall be available to the Tax Court to defray the expenses of such conferences.</text>
</subsection>
</section>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H5EFEC91375404C67A888670B9DB31A45">
<enum>(b)</enum>
<header>Disposition of fees</header>
<text>Section 7473 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF72BEF8C1BE74C7BB4E190EF1CF030F1" style="OLC">
<section id="HA0514B2A0A344CB0BDAA16B704B09F35">
<enum>7473.</enum>
<header>Disposition of fees</header>
<text display-inline="no-display-inline">Except as provided in sections 7470A and 7475, all fees received by the Tax Court pursuant to this title shall be deposited into a special fund of the Treasury to be available to offset funds appropriated for the operation and maintenance of the Tax Court.</text>
</section>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
<subsection id="H72363643176041729F2E27FA78BF6272">
<enum>(c)</enum>
<header>Clerical amendments</header>
<text>The table of sections for part III of subchapter C of chapter 76 is amended by inserting before the item relating to section 7471 the following new items:</text>
<quoted-block id="H2A3B8FD12F954E50BDD603922AEF59B9" style="OLC">
<toc>
<toc-entry idref="H8BC8222A740A4EFC87B6A42F1253936C" level="section">Sec. 7470. Administration.</toc-entry>
<toc-entry idref="H35A76B424EE34A57A6F723ED6644FE5A" level="section">Sec. 7470A. Judicial conference.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</subsection>
</section>
</part>
<part id="H60E3B51E768F4C2CB7AE8D9281B0BFB1">
<enum>3</enum>
<header>Clarification relating to United States Tax Court</header>
<section commented="no" id="H30120A8B84844171896A0F7076CA0B58">
<enum>441.</enum>
<header>Clarification relating to United States Tax Court</header>
<text display-inline="no-display-inline">Section 7441 is amended by adding at the end the following: <quote>The Tax Court is not an agency of, and shall be independent of, the executive branch of the Government.</quote>.</text>
</section>
</part>
</subtitle>
<enum>V</enum>
<header>Trade-related provisions</header>
<section id="H3DAD0CE248A345EF9C3488AD472770E3">
<enum>501.</enum>
<header>Modification of effective date of provisions relating to tariff classification of recreational performance outerwear</header>
<text display-inline="no-display-inline">Section 601(c) of the Trade Preferences Extension Act of 2015 (Public Law 114–27; 129 Stat. 412) is amended—</text>
<paragraph id="HBCB0376711934591B59D83ADDDFED33A">
<enum>(1)</enum>
<text>in paragraph (1), by striking <quote>the 180th day after the date of the enactment of this Act</quote> and inserting <quote>March 31, 2016</quote>; and</text>
</paragraph>
<paragraph id="H7FA02757B6984FA09BDE455268C1853A">
<enum>(2)</enum>
<text>in paragraph (2), by striking <quote>such 180th day</quote> and inserting <quote>March 31, 2016</quote>.</text>
</paragraph>
</section>
<section id="HEFA5794F3FF743DFBB15BC473AA0E4DE" section-type="subsequent-section">
<enum>502.</enum>
<header>Agreement by Asia-Pacific Economic Cooperation members to reduce rates of duty on certain environmental goods</header>
<text display-inline="no-display-inline">Section 107 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 4206) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD2F8C5E5E54D41D3B4CB290D97615162" style="OLC">
<subsection id="HE20D90BE1066416C8AB1BE03663AF057">
<enum>(c)</enum>
<header>Agreement by Asia-Pacific Economic Cooperation members to reduce rates of duty on certain environmental goods</header>
<text display-inline="yes-display-inline">Notwithstanding the notification requirement described in section 103(a)(2), the President may exercise the proclamation authority provided for in section 103(a)(1)(B) to implement an agreement by members of the Asia-Pacific Economic Cooperation (APEC) to reduce any rate of duty on certain environmental goods included in Annex C of the APEC Leaders Declaration issued on September 9, 2012, if (and only if) the President, as soon as feasible after the date of the enactment of this subsection, and before exercising proclamation authority under section 103(a)(1)(B), notifies Congress of the negotiations relating to the agreement and the specific United States objectives in the negotiations.</text>
</subsection>
<after-quoted-block>.</after-quoted-block>
</quoted-block>
</section>
<enum>VI</enum>
<header>Budgetary effects</header>
<section commented="no" id="H70E02E01C63846649FC1B934D385DF6A">
<enum>601.</enum>
<header>Budgetary effects</header>
<subsection commented="no" id="H2116401644DA492392A96EC3682B1202">
<enum>(a)</enum>
<header>Paygo scorecard</header>
<text>The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.</text>
</subsection>
<subsection commented="no" display-inline="no-display-inline" id="HB6F7A07E4C174A6CB52EA0C6981B9511">
<enum>(b)</enum>
<header>Senate paygo scorecard</header>
<text>The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).</text>
</subsection>
</section>