Text: H.R.8 — 112th Congress (2011-2012)All Bill Information (Except Text)

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Public Law No: 112-240 (01/02/2013)




[112th Congress Public Law 240]
[From the U.S. Government Printing Office]



[[Page 126 STAT. 2313]]

Public Law 112-240
112th Congress

                                 An Act


 
 Entitled the ``American Taxpayer Relief Act of 2012''. <<NOTE: Jan. 2, 
                           2013 -  [H.R. 8]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: American 
Taxpayer Relief Act of 2012. 26 USC 1 note.>> 
SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``American Taxpayer 
Relief Act of 2012''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.

                       TITLE I--GENERAL EXTENSIONS

Sec. 101. Permanent extension and modification of 2001 tax relief.
Sec. 102. Permanent extension and modification of 2003 tax relief.
Sec. 103. Extension of 2009 tax relief.
Sec. 104. Permanent alternative minimum tax relief.

                   TITLE II--INDIVIDUAL TAX EXTENDERS

Sec. 201. Extension of deduction for certain expenses of elementary and 
           secondary school teachers.
Sec. 202. Extension of exclusion from gross income of discharge of 
           qualified principal residence indebtedness.
Sec. 203. Extension of parity for exclusion from income for employer-
           provided mass transit and parking benefits.
Sec. 204. Extension of mortgage insurance premiums treated as qualified 
           residence interest.
Sec. 205. Extension of deduction of State and local general sales taxes.
Sec. 206. Extension of special rule for contributions of capital gain 
           real property made for conservation purposes.
Sec. 207. Extension of above-the-line deduction for qualified tuition 
           and related expenses.
Sec. 208. Extension of tax-free distributions from individual retirement 
           plans for charitable purposes.
Sec. 209. Improve and make permanent the provision authorizing the 
           Internal Revenue Service to disclose certain return and 
           return information to certain prison officials.

                    TITLE III--BUSINESS TAX EXTENDERS

Sec. 301. Extension and modification of research credit.
Sec. 302. Extension of temporary minimum low-income tax credit rate for 
           non-federally subsidized new buildings.
Sec. 303. Extension of housing allowance exclusion for determining area 
           median gross income for qualified residential rental project 
           exempt facility bonds.
Sec. 304. Extension of Indian employment tax credit.

[[Page 126 STAT. 2314]]

Sec. 305. Extension of new markets tax credit.
Sec. 306. Extension of railroad track maintenance credit.
Sec. 307. Extension of mine rescue team training credit.
Sec. 308. Extension of employer wage credit for employees who are active 
           duty members of the uniformed services.
Sec. 309. Extension of work opportunity tax credit.
Sec. 310. Extension of qualified zone academy bonds.
Sec. 311. Extension of 15-year straight-line cost recovery for qualified 
           leasehold improvements, qualified restaurant buildings and 
           improvements, and qualified retail improvements.
Sec. 312. Extension of 7-year recovery period for motorsports 
           entertainment complexes.
Sec. 313. Extension of accelerated depreciation for business property on 
           an Indian reservation.
Sec. 314. Extension of enhanced charitable deduction for contributions 
           of food inventory.
Sec. 315. Extension of increased expensing limitations and treatment of 
           certain real property as section 179 property.
Sec. 316. Extension of election to expense mine safety equipment.
Sec. 317. Extension of special expensing rules for certain film and 
           television productions.
Sec. 318. Extension of deduction allowable with respect to income 
           attributable to domestic production activities in Puerto 
           Rico.
Sec. 319. Extension of modification of tax treatment of certain payments 
           to controlling exempt organizations.
Sec. 320. Extension of treatment of certain dividends of regulated 
           investment companies.
Sec. 321. Extension of RIC qualified investment entity treatment under 
           FIRPTA.
Sec. 322. Extension of subpart F exception for active financing income.
Sec. 323. Extension of look-thru treatment of payments between related 
           controlled foreign corporations under foreign personal 
           holding company rules.
Sec. 324. Extension of temporary exclusion of 100 percent of gain on 
           certain small business stock.
Sec. 325. Extension of basis adjustment to stock of S corporations 
           making charitable contributions of property.
Sec. 326. Extension of reduction in S-corporation recognition period for 
           built-in gains tax.
Sec. 327. Extension of empowerment zone tax incentives.
Sec. 328. Extension of tax-exempt financing for New York Liberty Zone.
Sec. 329. Extension of temporary increase in limit on cover over of rum 
           excise taxes to Puerto Rico and the Virgin Islands.
Sec. 330. Modification and extension of American Samoa economic 
           development credit.
Sec. 331. Extension and modification of bonus depreciation.

                     TITLE IV--ENERGY TAX EXTENDERS

Sec. 401. Extension of credit for energy-efficient existing homes.
Sec. 402. Extension of credit for alternative fuel vehicle refueling 
           property.
Sec. 403. Extension of credit for 2- or 3-wheeled plug-in electric 
           vehicles.
Sec. 404. Extension and modification of cellulosic biofuel producer 
           credit.
Sec. 405. Extension of incentives for biodiesel and renewable diesel.
Sec. 406. Extension of production credit for Indian coal facilities 
           placed in service before 2009.
Sec. 407. Extension and modification of credits with respect to 
           facilities producing energy from certain renewable resources.
Sec. 408. Extension of credit for energy-efficient new homes.
Sec. 409. Extension of credit for energy-efficient appliances.
Sec. 410. Extension and modification of special allowance for cellulosic 
           biofuel plant property.
Sec. 411. Extension of special rule for sales or dispositions to 
           implement FERC or State electric restructuring policy for 
           qualified electric utilities.
Sec. 412. Extension of alternative fuels excise tax credits.

                          TITLE V--UNEMPLOYMENT

Sec. 501. Extension of emergency unemployment compensation program.
Sec. 502. Temporary extension of extended benefit provisions.
Sec. 503. Extension of funding for reemployment services and 
           reemployment and eligibility assessment activities.
Sec. 504. Additional extended unemployment benefits under the Railroad 
           Unemployment Insurance Act.

             TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS

                     Subtitle A--Medicare Extensions

Sec. 601. Medicare physician payment update.

[[Page 126 STAT. 2315]]

Sec. 602. Work geographic adjustment.
Sec. 603. Payment for outpatient therapy services.
Sec. 604. Ambulance add-on payments.
Sec. 605. Extension of Medicare inpatient hospital payment adjustment 
           for low-volume hospitals.
Sec. 606. Extension of the Medicare-dependent hospital (MDH) program.
Sec. 607. Extension for specialized Medicare Advantage plans for special 
           needs individuals.
Sec. 608. Extension of Medicare reasonable cost contracts.
Sec. 609. Performance improvement.
Sec. 610. Extension of funding outreach and assistance for low-income 
           programs.

                   Subtitle B--Other Health Extensions

Sec. 621. Extension of the qualifying individual (QI) program.
Sec. 622. Extension of Transitional Medical Assistance (TMA).
Sec. 623. Extension of Medicaid and CHIP Express Lane option.
Sec. 624. Extension of family-to-family health information centers.
Sec. 625. Extension of Special Diabetes Program for Type I diabetes and 
           for Indians.

                   Subtitle C--Other Health Provisions

Sec. 631. IPPS documentation and coding adjustment for implementation of 
           MS-DRGs.
Sec. 632. Revisions to the Medicare ESRD bundled payment system to 
           reflect findings in the GAO report.
Sec. 633. Treatment of multiple service payment policies for therapy 
           services.
Sec. 634. Payment for certain radiology services furnished under the 
           Medicare hospital outpatient department prospective payment 
           system.
Sec. 635. Adjustment of equipment utilization rate for advanced imaging 
           services.
Sec. 636. Medicare payment of competitive prices for diabetic supplies 
           and elimination of overpayment for diabetic supplies.
Sec. 637. Medicare payment adjustment for non-emergency ambulance 
           transports for ESRD beneficiaries.
Sec. 638. Removing obstacles to collection of overpayments.
Sec. 639. Medicare advantage coding intensity adjustment.
Sec. 640. Elimination of all funding for the Medicare Improvement Fund.
Sec. 641. Rebasing of State DSH allotments.
Sec. 642. Repeal of CLASS program.
Sec. 643. Commission on Long-Term Care.
Sec. 644. Consumer Operated and Oriented Plan program contingency fund.

              TITLE VII--EXTENSION OF AGRICULTURAL PROGRAMS

Sec. 701. 1-year extension of agricultural programs.
Sec. 702. Supplemental agricultural disaster assistance.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Strategic delivery systems.
Sec. 802. No cost of living adjustment in pay of members of congress.

                       TITLE IX--BUDGET PROVISIONS

               Subtitle A--Modifications of Sequestration

Sec. 901. Treatment of sequester.
Sec. 902. Amounts in applicable retirement plans may be transferred to 
           designated Roth accounts without distribution.

                      Subtitle B--Budgetary Effects

Sec. 911. Budgetary effects.

                       TITLE I--GENERAL EXTENSIONS

SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 2001 TAX RELIEF.

    (a) Permanent Extension.--
            (1) In general.--The Economic Growth and Tax Relief 
        Reconciliation Act of 2001 <<NOTE: 26 USC 1 note.>> is amended 
        by striking title IX.
            (2) Conforming amendment.--The Tax Relief, Unemployment 
        Insurance Reauthorization, and Job Creation Act of 2010 is 
        amended by striking <<NOTE: 26 USC 121 note.>> section 304.

[[Page 126 STAT. 2316]]

            (3) <<NOTE: Applicability. 26 USC 1 note.>>  Effective 
        date.--The amendments made by this subsection shall apply to 
        taxable, plan, or limitation years beginning after December 31, 
        2012, and estates of decedents dying, gifts made, or generation 
        skipping transfers after December 31, 2012.

    (b) Application of Income Tax to Certain High-Income Taxpayers.--
            (1) Income tax rates.--
                    (A) Treatment of 25-, 28-, and 33-percent rate 
                brackets.--Paragraph (2) of <<NOTE: 26 USC 1.>> section 
                1(i) is amended to read as follows:
            ``(2) 25-, 28-, and 33-percent rate brackets.--The tables 
        under subsections (a), (b), (c), (d), and (e) shall be applied--
                    ``(A) by substituting `25%' for `28%' each place it 
                appears (before the application of subparagraph (B)),
                    ``(B) by substituting `28%' for `31%' each place it 
                appears, and
                    ``(C) by substituting `33%' for `36%' each place it 
                appears.''.
                    (B) 35-percent rate bracket.--Subsection (i) of 
                section 1 is amended by redesignating paragraph (3) as 
                paragraph (4) and by inserting after paragraph (2) the 
                following new paragraph:
            ``(3) Modifications to income tax brackets for high-income 
        taxpayers.--
                    ``(A) 35-percent rate bracket.--In the case of 
                taxable years beginning after December 31, 2012--
                          ``(i) the rate of tax under subsections (a), 
                      (b), (c), and (d) on a taxpayer's taxable income 
                      in the highest rate bracket shall be 35 percent to 
                      the extent such income does not exceed an amount 
                      equal to the excess of--
                                    ``(I) the applicable threshold, over
                                    ``(II) the dollar amount at which 
                                such bracket begins, and
                          ``(ii) the 39.6 percent rate of tax under such 
                      subsections shall apply only to the taxpayer's 
                      taxable income in such bracket in excess of the 
                      amount to which clause (i) applies.
                    ``(B) <<NOTE: Definition.>>  Applicable threshold.--
                For purposes of this paragraph, the term `applicable 
                threshold' means--
                          ``(i) $450,000 in the case of subsection (a),
                          ``(ii) $425,000 in the case of subsection (b),
                          ``(iii) $400,000 in the case of subsection 
                      (c), and
                          ``(iv) \1/2\ the amount applicable under 
                      clause (i) (after adjustment, if any, under 
                      subparagraph (C)) in the case of subsection (d).
                    ``(C) Inflation adjustment.--For purposes of this 
                paragraph, with respect to taxable years beginning in 
                calendar years after 2013, each of the dollar amounts 
                under clauses (i), (ii), and (iii) of subparagraph (B) 
                shall be adjusted in the same manner as under paragraph 
                (1)(C)(i), except that subsection (f)(3)(B) shall be 
                applied by substituting `2012' for `1992'.''.
            (2) Phaseout of personal exemptions and itemized 
        deductions.--

[[Page 126 STAT. 2317]]

                    (A) Overall limitation on itemized deductions.--
                Section 68 <<NOTE: 26 USC 68.>> is amended--
                          (i) by striking subsection (b) and inserting 
                      the following:

    ``(b) Applicable Amount.--
            ``(1) <<NOTE: Definition.>>  In general.--For purposes of 
        this section, the term `applicable amount' means--
                    ``(A) $300,000 in the case of a joint return or a 
                surviving spouse (as defined in section 2(a)),
                    ``(B) $275,000 in the case of a head of household 
                (as defined in section 2(b)),
                    ``(C) $250,000 in the case of an individual who is 
                not married and who is not a surviving spouse or head of 
                household, and
                    ``(D) \1/2\ the amount applicable under subparagraph 
                (A) (after adjustment, if any, under paragraph (2)) in 
                the case of a married individual filing a separate 
                return.
        For purposes of this paragraph, marital status shall be 
        determined under section 7703.
            ``(2) Inflation adjustment.--In the case of any taxable year 
        beginning in calendar years after 2013, each of the dollar 
        amounts under subparagraphs (A), (B), and (C) of paragraph (1) 
        shall be shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined under 
                section 1(f)(3) for the calendar year in which the 
                taxable year begins, except that section 1(f)(3)(B) 
                shall be applied by substituting `2012' for `1992'.
        If any amount after adjustment under the preceding sentence is 
        not a multiple of $50, such amount shall be rounded to the next 
        lowest multiple of $50.'', and
                          (ii) by striking subsections (f) and (g).
                    (B) Phaseout of deductions for personal 
                exemptions.--
                          (i) In general.--Paragraph (3) of section 
                      151(d) is amended--
                                    (I) by striking ``the threshold 
                                amount'' in subparagraphs (A) and (B) 
                                and inserting ``the applicable amount in 
                                effect under section 68(b)'',
                                    (II) by striking subparagraph (C) 
                                and redesignating subparagraph (D) as 
                                subparagraph (C), and
                                    (III) by striking subparagraphs (E) 
                                and (F).
                          (ii) Conforming amendments.--Paragraph (4) of 
                      section 151(d) is amended--
                                    (I) by striking subparagraph (B),
                                    (II) by redesignating clauses (i) 
                                and (ii) of subparagraph (A) as 
                                subparagraphs (A) and (B), respectively, 
                                and by indenting such subparagraphs (as 
                                so redesignated) accordingly, and
                                    (III) by striking all that precedes 
                                ``in a calendar year after 1989,'' and 
                                inserting the following:
            ``(4) Inflation adjustment.--In the case of any taxable year 
        beginning''.
            (3) <<NOTE: 26 USC 1 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to taxable years 
        beginning after December 31, 2012.

    (c) Modifications of Estate Tax.--

[[Page 126 STAT. 2318]]

            (1) Maximum estate tax rate equal to 40 percent.--The table 
        contained in subsection (c) of section 2001, as amended by 
        section 302(a)(2) of the Tax Relief, Unemployment Insurance 
        Reauthorization, and Job Creation <<NOTE: 26 USC 2001.>> Act of 
        2010, is amended by striking ``Over $500,000'' and all that 
        follows and inserting the following:


``Over $500,000 but not over $750,000........  $155,800, plus 37 percent of the excess of such amount over
                                                $500,000.
Over $750,000 but not over $1,000,000........  $248,300, plus 39 percent of the excess of such amount over
                                                $750,000.
Over $1,000,000..............................  $345,800, plus 40 percent of the excess of such amount over
                                                $1,000,000.''.
 


            (2) Technical correction.--Clause (i) of section 
        2010(c)(4)(B) is amended by striking ``basic exclusion amount'' 
        and inserting ``applicable exclusion amount''.
            (3) <<NOTE: 26 USC 2001 note. Applicability.>>  Effective 
        dates.--
                    (A) In general.--Except as otherwise provided by in 
                this paragraph, the amendments made by this subsection 
                shall apply to estates of decedents dying, generation-
                skipping transfers, and gifts made, after December 31, 
                2012.
                    (B) Technical correction.--The amendment made by 
                paragraph (2) shall take effect as if included in the 
                amendments made by section 303 of the Tax Relief, 
                Unemployment Insurance Reauthorization, and Job Creation 
                Act of 2010.
SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX RELIEF.

    (a) Permanent Extension.--The Jobs and Growth Tax Relief 
Reconciliation Act of 2003 is amended by striking <<NOTE: 26 USC 1 
note.>> section 303.

    (b) 20-Percent Capital Gains Rate for Certain High Income 
Individuals.--
            (1) In general.--Paragraph (1) of section 1(h) is amended by 
        striking subparagraph (C), by redesignating subparagraphs (D) 
        and (E) as subparagraphs (E) and (F) and by inserting after 
        subparagraph (B) the following new subparagraphs:
                    ``(C) 15 percent of the lesser of--
                          ``(i) so much of the adjusted net capital gain 
                      (or, if less, taxable income) as exceeds the 
                      amount on which a tax is determined under 
                      subparagraph (B), or
                          ``(ii) the excess of--
                                    ``(I) the amount of taxable income 
                                which would (without regard to this 
                                paragraph) be taxed at a rate below 39.6 
                                percent, over
                                    ``(II) the sum of the amounts on 
                                which a tax is determined under 
                                subparagraphs (A) and (B),
                    ``(D) 20 percent of the adjusted net capital gain 
                (or, if less, taxable income) in excess of the sum of 
                the amounts on which tax is determined under 
                subparagraphs (B) and (C),''.

[[Page 126 STAT. 2319]]

            (2) Minimum tax.--Paragraph (3) of <<NOTE: 26 USC 
        55.>> section 55(b) is amended by striking subparagraph (C), by 
        redesignating subparagraph (D) as subparagraph (E), and by 
        inserting after subparagraph (B) the following new 
        subparagraphs:
                    ``(C) 15 percent of the lesser of--
                          ``(i) so much of the adjusted net capital gain 
                      (or, if less, taxable excess) as exceeds the 
                      amount on which tax is determined under 
                      subparagraph (B), or
                          ``(ii) the excess described in section 
                      1(h)(1)(C)(ii), plus
                    ``(D) 20 percent of the adjusted net capital gain 
                (or, if less, taxable excess) in excess of the sum of 
                the amounts on which tax is determined under 
                subparagraphs (B) and (C), plus''.

    (c) Conforming Amendments.--
            (1) The following provisions are each amended by striking 
        ``15 percent'' and inserting ``20 percent'':
                    (A) Section 531.
                    (B) Section 541.
                    (C) Section 1445(e)(1).
                    (D) The second sentence of section 7518(g)(6)(A).
                    (E) Section 53511(f)(2) of title 46, United States 
                Code.
            (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by 
        striking ``5 percent (0 percent in the case of taxable years 
        beginning after 2007)'' and inserting ``0 percent''.
            (3) Section 1445(e)(6) is amended by striking ``15 percent 
        (20 percent in the case of taxable years beginning after 
        December 31, 2010)'' and inserting ``20 percent''.

    (d) <<NOTE: Applicability. 26 USC 1 note.>>  Effective Dates.--
            (1) In general.--Except as otherwise provided, the 
        amendments made by subsections (b) and (c) shall apply to 
        taxable years beginning after December 31, 2012.
            (2) Withholding.--The amendments made by paragraphs (1)(C) 
        and (3) of subsection (c) shall apply to amounts paid on or 
        after January 1, 2013.
SEC. 103. EXTENSION OF 2009 TAX RELIEF.

    (a) 5-year Extension of American Opportunity Tax Credit.--
            (1) In general.--Section 25A(i) is amended by striking ``in 
        2009, 2010, 2011, or 2012'' and inserting ``after 2008 and 
        before 2018''.
            (2) Treatment of possessions.--Section 1004(c)(1) of 
        division B of the American Recovery and Reinvestment Tax Act of 
        2009 <<NOTE: 26 USC 25A note.>> is amended by striking ``in 
        2009, 2010, 2011, and 2012'' each place it appears and inserting 
        ``after 2008 and before 2018''.

    (b) 5-year Extension of Child Tax Credit.--Section 24(d)(4) is 
amended--
            (1) by striking ``2009, 2010, 2011, and 2012'' in the 
        heading and inserting ``for certain years'', and
            (2) by striking ``in 2009, 2010, 2011, or 2012'' and 
        inserting ``after 2008 and before 2018''.

    (c) 5-year Extension of Earned Income Tax Credit.--Section 32(b)(3) 
is amended--
            (1) by striking ``2009, 2010, 2011, and 2012'' in the 
        heading and inserting ``for certain years'', and

[[Page 126 STAT. 2320]]

            (2) by striking ``in 2009, 2010, 2011, or 2012'' and 
        inserting ``after 2008 and before 2018''.

    (d) Permanent Extension of Rule Disregarding Refunds in the 
Administration of Federal Programs and Federally Assisted Programs.--
Section 6409 <<NOTE: 26 USC 6409.>> is amended to read as follows:
``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
                          PROGRAMS AND FEDERALLY ASSISTED 
                          PROGRAMS.

    ``Notwithstanding <<NOTE: Time period.>> any other provision of law, 
any refund (or advance payment with respect to a refundable credit) made 
to any individual under this title shall not be taken into account as 
income, and shall not be taken into account as resources for a period of 
12 months from receipt, for purposes of determining the eligibility of 
such individual (or any other individual) for benefits or assistance (or 
the amount or extent of benefits or assistance) under any Federal 
program or under any State or local program financed in whole or in part 
with Federal funds.''.

    (e) <<NOTE: Applicability. 26 USC 24 note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2012.
            (2) Rule regarding disregard of refunds.--The amendment made 
        by subsection (d) shall apply to amounts received after December 
        31, 2012.
SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF.

    (a) 2012 Exemption Amounts Made Permanent.--
            (1) In general.--Paragraph (1) of section 55(d) is amended--
                    (A) by striking ``$45,000'' and all that follows 
                through ``2011)'' in subparagraph (A) and inserting 
                ``$78,750'',
                    (B) by striking ``$33,750'' and all that follows 
                through ``2011)'' in subparagraph (B) and inserting 
                ``$50,600'', and
                    (C) by striking ``paragraph (1)(A)'' in subparagraph 
                (C) and inserting ``subparagraph (A)''.

    (b) Exemption Amounts Indexed for Inflation.--
            (1) In general.--Subsection (d) of section 55 is amended by 
        adding at the end the following new paragraph:
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2012, the amounts 
                described in subparagraph (B) shall each be increased by 
                an amount equal to--
                          ``(i) such dollar amount, multiplied by
                          ``(ii) the cost-of-living adjustment 
                      determined under section 1(f)(3) for the calendar 
                      year in which the taxable year begins, determined 
                      by substituting `calendar year 2011' for `calendar 
                      year 1992' in subparagraph (B) thereof.
                    ``(B) Amounts described.--The amounts described in 
                this subparagraph are--
                          ``(i) each of the dollar amounts contained in 
                      subsection (b)(1)(A)(i),
                          ``(ii) each of the dollar amounts contained in 
                      paragraph (1), and
                          ``(iii) each of the dollar amounts in 
                      subparagraphs (A) and (B) of paragraph (3).

[[Page 126 STAT. 2321]]

                    ``(C) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $100.''.
            (2) Conforming amendments.--
                    (A) Clause (iii) of section 55(b)(1)(A) <<NOTE: 26 
                USC 55.>> is amended by striking ``by substituting'' and 
                all that follows through ``appears.'' and inserting ``by 
                substituting 50 percent of the dollar amount otherwise 
                applicable under subclause (I) and subclause (II) 
                thereof.''.
                    (B) Paragraph (3) of section 55(d) is amended--
                          (i) by striking ``or (2)'' in subparagraph 
                      (A),
                          (ii) by striking ``and'' at the end of 
                      subparagraph (B), and
                          (iii) by striking subparagraph (C) and 
                      inserting the following new subparagraphs:
                    ``(C) 50 percent of the dollar amount applicable 
                under subparagraph (A) in the case of a taxpayer 
                described in subparagraph (C) or (D) of paragraph (1), 
                and
                    ``(D) $150,000 in the case of a taxpayer described 
                in paragraph (2).''.

    (c) Alternative Minimum Tax Relief for Nonrefundable Credits.--
            (1) In general.--Subsection (a) of section 26 is amended to 
        read as follows:

    ``(a) Limitation Based on Amount of Tax.--The aggregate amount of 
credits allowed by this subpart for the taxable year shall not exceed 
the sum of--
            ``(1) the taxpayer's regular tax liability for the taxable 
        year reduced by the foreign tax credit allowable under section 
        27(a), and
            ``(2) the tax imposed by section 55(a) for the taxable 
        year.''.
            (2) Conforming amendments.--
                    (A) Adoption credit.--
                          (i) Section 23(b) is amended by striking 
                      paragraph (4).
                          (ii) Section 23(c) is amended by striking 
                      paragraphs (1) and (2) and inserting the 
                      following:
            ``(1) In general.--If the credit allowable under subsection 
        (a) for any taxable year exceeds the limitation imposed by 
        section 26(a) for such taxable year reduced by the sum of the 
        credits allowable under this subpart (other than this section 
        and sections 25D and 1400C), such excess shall be carried to the 
        succeeding taxable year and added to the credit allowable under 
        subsection (a) for such taxable year.''.
                          (iii) Section 23(c) is amended by 
                      redesignating paragraph (3) as paragraph (2).
                    (B) Child tax credit.--
                          (i) Section 24(b) is amended by striking 
                      paragraph (3).
                          (ii) Section 24(d)(1) is amended--
                                    (I) by striking ``section 26(a)(2) 
                                or subsection (b)(3), as the case may 
                                be,'' each place it appears in 
                                subparagraphs (A) and (B) and inserting 
                                ``section 26(a)'', and
                                    (II) by striking ``section 26(a)(2) 
                                or subsection (b)(3), as the case may 
                                be'' in the second last sentence and 
                                inserting ``section 26(a)''.

[[Page 126 STAT. 2322]]

                    (C) Credit for interest on certain home mortgages.--
                Section 25(e)(1)(C) is amended to read as follows:
                    ``(C) <<NOTE: 26 USC 25.>>  Applicable tax limit.--
                For purposes of this paragraph, the term `applicable tax 
                limit' means the limitation imposed by section 26(a) for 
                the taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section 
                and sections 23, 25D, and 1400C).''.
                    (D) Hope and lifetime learning credits.--Section 
                25A(i) is amended--
                          (i) by striking paragraph (5) and by 
                      redesignating paragraphs (6) and (7) as paragraphs 
                      (5) and (6), respectively, and
                          (ii) by striking ``section 26(a)(2) or 
                      paragraph (5), as the case may be'' in paragraph 
                      (5), as redesignated by clause (i), and inserting 
                      ``section 26(a)''.
                    (E) Savers' credit.--Section 25B is amended by 
                striking subsection (g).
                    (F) Residential energy efficient property.--Section 
                25D(c) is amended to read as follows:

    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under this 
subpart (other than this section), such excess shall be carried to the 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.''.
                    (G) Certain plug-in electric vehicles.--Section 
                30(c)(2) is amended to read as follows:
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be treated 
        as a credit allowable under subpart A for such taxable year.''.
                    (H) Alternative motor vehicle credit.--Section 
                30B(g)(2) is amended to read as follows:
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be treated 
        as a credit allowable under subpart A for such taxable year.''.
                    (I) New qualified plug-in electric vehicle credit.--
                Section 30D(c)(2) is amended to read as follows:
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be treated 
        as a credit allowable under subpart A for such taxable year.''.
                    (J) Cross references.--Section 55(c)(3) is amended 
                by striking ``26(a), 30C(d)(2),'' and inserting 
                ``30C(d)(2)''.
                    (K) Foreign tax credit.--Section 904 is amended by 
                striking subsection (i) and by redesignating subsections 
                (j), (k), and (l) as subsections (i), (j), and (k), 
                respectively.
                    (L) First-time home buyer credit for the district of 
                columbia.--Section 1400C(d) is amended to read as 
                follows:

    ``(d) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under subpart A 
of part IV of subchapter A (other than this section and section 25D), 
such excess shall be carried to the

[[Page 126 STAT. 2323]]

succeeding taxable year and added to the credit allowable under 
subsection (a) for such taxable year.''.
    (d) <<NOTE: 26 USC 23 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2011.

                   TITLE II--INDIVIDUAL TAX EXTENDERS

SEC. 201. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
                        ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of <<NOTE: 26 USC 62.>> section 
62(a)(2) is amended by striking ``or 2011'' and inserting ``2011, 2012, 
or 2013''.

    (b) <<NOTE: 26 USC 62 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF 
                        QUALIFIED PRINCIPAL RESIDENCE 
                        INDEBTEDNESS.

    (a) In General.--Subparagraph (E) of section 108(a)(1) is amended by 
striking ``January 1, 2013'' and inserting ``January 1, 2014''.
    (b) <<NOTE: Applicability. 26 USC 108 note.>>  Effective Date.--The 
amendment made by this section shall apply to indebtedness discharged 
after December 31, 2012.
SEC. 203. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR 
                        EMPLOYER-PROVIDED MASS TRANSIT AND PARKING 
                        BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) <<NOTE: 26 USC 132 note.>>  Effective Date.--The amendment made 
by this section shall apply to months after December 31, 2011.
SEC. 204. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS 
                        QUALIFIED RESIDENCE INTEREST.

    (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) is 
amended by striking ``December 31, 2011'' and inserting ``December 31, 
2013''.
    (b) Technical Amendments.--Clause (i) of section 163(h)(4)(E) is 
amended--
            (1) by striking ``Veterans Administration'' and inserting 
        ``Department of Veterans Affairs'', and
            (2) by striking ``Rural Housing Administration'' and 
        inserting ``Rural Housing Service''.

    (c) <<NOTE: Applicability. 26 USC 163 note.>>  Effective Date.--The 
amendments made by this section shall apply to amounts paid or accrued 
after December 31, 2011.
SEC. 205. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL SALES 
                        TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) <<NOTE: 26 USC 164 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2011.

[[Page 126 STAT. 2324]]

SEC. 206. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAPITAL 
                        GAIN REAL PROPERTY MADE FOR CONSERVATION 
                        PURPOSES.

    (a) In General.--Clause (vi) of <<NOTE: 26 USC 170.>> section 
170(b)(1)(E) is amended by striking ``December 31, 2011'' and inserting 
``December 31, 2013''.

    (b) Contributions by Certain Corporate Farmers and Ranchers.--Clause 
(iii) of section 170(b)(2)(B) is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2013''.
    (c) <<NOTE: Applicability. 26 USC 170 note.>>  Effective Date.--The 
amendments made by this section shall apply to contributions made in 
taxable years beginning after December 31, 2011.
SEC. 207. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 
                        TUITION AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: 26 USC 222 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 208. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
                        RETIREMENT PLANS FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: 26 USC 408 note.>>  Effective Date; Special Rule.--
            (1) <<NOTE: Applicability.>>  Effective date.--The amendment 
        made by this section shall apply to distributions made in 
        taxable years beginning after December 31, 2011.
            (2) Special rules.--For purposes of subsections (a)(6), 
        (b)(3), and (d)(8) of section 408 of the Internal Revenue Code 
        of 1986, at the election of the taxpayer (at such time and in 
        such manner as prescribed by the Secretary of the Treasury)--
                    (A) any qualified charitable distribution made after 
                December 31, 2012, and before February 1, 2013, shall be 
                deemed to have been made on December 31, 2012, and
                    (B) any portion of a distribution from an individual 
                retirement account to the taxpayer after November 30, 
                2012, and before January 1, 2013, may be treated as a 
                qualified charitable distribution to the extent that--
                          (i) such portion is transferred in cash after 
                      the distribution to an organization described in 
                      section 408(d)(8)(B)(i) before February 1, 2013, 
                      and
                          (ii) such portion is part of a distribution 
                      that would meet the requirements of section 
                      408(d)(8) but for the fact that the distribution 
                      was not transferred directly to an organization 
                      described in section 408(d)(8)(B)(i).
SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION AUTHORIZING THE 
                        INTERNAL REVENUE SERVICE TO DISCLOSE 
                        CERTAIN RETURN AND RETURN INFORMATION TO 
                        CERTAIN PRISON OFFICIALS.

    (a) In General.--Paragraph (10) of section 6103(k) is amended to 
read as follows:
            ``(10) Disclosure of certain returns and return information 
        to certain prison officials.--

[[Page 126 STAT. 2325]]

                    ``(A) In general.--Under such procedures as the 
                Secretary may prescribe, the Secretary may disclose to 
                officers and employees of the Federal Bureau of Prisons 
                and of any State agency charged with the responsibility 
                for administration of prisons any returns or return 
                information with respect to individuals incarcerated in 
                Federal or State prison systems whom the Secretary has 
                determined may have filed or facilitated the filing of a 
                false or fraudulent return to the extent that the 
                Secretary determines that such disclosure is necessary 
                to permit effective Federal tax administration.
                    ``(B) Disclosure to contractor-run prisons.--Under 
                such procedures as the Secretary may prescribe, the 
                disclosures authorized by subparagraph (A) may be made 
                to contractors responsible for the operation of a 
                Federal or State prison on behalf of such Bureau or 
                agency.
                    ``(C) Restrictions on use of disclosed 
                information.--Any return or return information received 
                under this paragraph shall be used only for the purposes 
                of and to the extent necessary in taking administrative 
                action to prevent the filing of false and fraudulent 
                returns, including administrative actions to address 
                possible violations of administrative rules and 
                regulations of the prison facility and in administrative 
                and judicial proceedings arising from such 
                administrative actions.
                    ``(D) Restrictions on redisclosure and disclosure to 
                legal representatives.--Notwithstanding subsection (h)--
                          ``(i) Restrictions on redisclosure.--Except as 
                      provided in clause (ii), any officer, employee, or 
                      contractor of the Federal Bureau of Prisons or of 
                      any State agency charged with the responsibility 
                      for administration of prisons shall not disclose 
                      any information obtained under this paragraph to 
                      any person other than an officer or employee or 
                      contractor of such Bureau or agency personally and 
                      directly engaged in the administration of prison 
                      facilities on behalf of such Bureau or agency.
                          ``(ii) Disclosure to legal representatives.--
                      The returns and return information disclosed under 
                      this paragraph may be disclosed to the duly 
                      authorized legal representative of the Federal 
                      Bureau of Prisons, State agency, or contractor 
                      charged with the responsibility for administration 
                      of prisons, or of the incarcerated individual 
                      accused of filing the false or fraudulent return 
                      who is a party to an action or proceeding 
                      described in subparagraph (C), solely in 
                      preparation for, or for use in, such action or 
                      proceeding.''.

    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 6103(a) is amended by inserting 
        ``subsection (k)(10),'' after ``subsection (e)(1)(D)(iii),''.
            (2) Paragraph (4) of section 6103(p) is amended--
                    (A) by inserting ``subsection (k)(10),'' before 
                ``subsection (l)(10),'' in the matter preceding 
                subparagraph (A),
                    (B) in subparagraph (F)(i)--
                          (i) by inserting ``(k)(10),'' before ``or 
                      (l)(6),'', and

[[Page 126 STAT. 2326]]

                          (ii) by inserting ``subsection (k)(10) or'' 
                      before ``subsection (l)(10),'', and
                    (C) by inserting ``subsection (k)(10) or'' before 
                ``subsection (l)(10),'' both places it appears in the 
                matter following subparagraph (F)(iii).
            (3) Paragraph (2) of <<NOTE: 26 USC 7213.>> section 7213(a) 
        is amended by inserting ``(k)(10),'' before ``(l)(6),''.

    (c) <<NOTE: 26 USC 6103 note.>>  Effective Date.--The amendments 
made by this section shall take effect on the date of the enactment of 
this Act.

                    TITLE III--BUSINESS TAX EXTENDERS

SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (B) of section 41(h)(1) is 
        amended by striking ``December 31, 2011'' and inserting 
        ``December 31, 2013''.
            (2) Conforming amendment.--Subparagraph (D) of section 
        45C(b)(1) is amended by striking ``December 31, 2011'' and 
        inserting ``December 31, 2013''.

    (b) Inclusion of Qualified Research Expenses and Gross Receipts of 
an Acquired Person.--
            (1) Partial inclusion of pre-acquisition qualified research 
        expenses and gross receipts.--Subparagraph (A) of section 
        41(f)(3) is amended to read as follows:
                    ``(A) Acquisitions.--
                          ``(i) In general.--If a person acquires the 
                      major portion of either a trade or business or a 
                      separate unit of a trade or business (hereinafter 
                      in this paragraph referred to as the `acquired 
                      business') of another person (hereinafter in this 
                      paragraph referred to as the `predecessor'), then 
                      the amount of qualified research expenses paid or 
                      incurred by the acquiring person during the 
                      measurement period shall be increased by the 
                      amount determined under clause (ii), and the gross 
                      receipts of the acquiring person for such period 
                      shall be increased by the amount determined under 
                      clause (iii).
                          ``(ii) Amount determined with respect to 
                      qualified research expenses.--The amount 
                      determined under this clause is--
                                    ``(I) for purposes of applying this 
                                section for the taxable year in which 
                                such acquisition is made, the 
                                acquisition year amount, and
                                    ``(II) for purposes of applying this 
                                section for any taxable year after the 
                                taxable year in which such acquisition 
                                is made, the qualified research expenses 
                                paid or incurred by the predecessor with 
                                respect to the acquired business during 
                                the measurement period.
                          ``(iii) Amount determined with respect to 
                      gross receipts.--The amount determined under this 
                      clause is the amount which would be determined 
                      under clause (ii) if `the gross receipts of' were 
                      substituted for `the qualified research expenses 
                      paid or incurred by' each place it appears in 
                      clauses (ii) and (iv).

[[Page 126 STAT. 2327]]

                          ``(iv) Acquisition year amount.--For purposes 
                      of clause (ii), the acquisition year amount is the 
                      amount equal to the product of--
                                    ``(I) the qualified research 
                                expenses paid or incurred by the 
                                predecessor with respect to the acquired 
                                business during the measurement period, 
                                and
                                    ``(II) the number of days in the 
                                period beginning on the date of the 
                                acquisition and ending on the last day 
                                of the taxable year in which the 
                                acquisition is made,
                      divided by the number of days in the acquiring 
                      person's taxable year.
                          ``(v) Special rules for coordinating taxable 
                      years.--In the case of an acquiring person and a 
                      predecessor whose taxable years do not begin on 
                      the same date--
                                    ``(I) each reference to a taxable 
                                year in clauses (ii) and (iv) shall 
                                refer to the appropriate taxable year of 
                                the acquiring person,
                                    ``(II) the qualified research 
                                expenses paid or incurred by the 
                                predecessor, and the gross receipts of 
                                the predecessor, during each taxable 
                                year of the predecessor any portion of 
                                which is part of the measurement period 
                                shall be allocated equally among the 
                                days of such taxable year,
                                    ``(III) the amount of such qualified 
                                research expenses taken into account 
                                under clauses (ii) and (iv) with respect 
                                to a taxable year of the acquiring 
                                person shall be equal to the total of 
                                the expenses attributable under 
                                subclause (II) to the days occurring 
                                during such taxable year, and
                                    ``(IV) the amount of such gross 
                                receipts taken into account under clause 
                                (iii) with respect to a taxable year of 
                                the acquiring person shall be equal to 
                                the total of the gross receipts 
                                attributable under subclause (II) to the 
                                days occurring during such taxable year.
                          ``(vi) <<NOTE: Definition.>>  Measurement 
                      period.--For purposes of this subparagraph, the 
                      term `measurement period' means, with respect to 
                      the taxable year of the acquiring person for which 
                      the credit is determined, any period of the 
                      acquiring person preceding such taxable year which 
                      is taken into account for purposes of determining 
                      the credit for such year.''.
            (2) Expenses and gross receipts of a predecessor.--
        Subparagraph (B) of <<NOTE: 26 USC 41.>> section 41(f)(3) is 
        amended to read as follows:
                    ``(B) Dispositions.--If the predecessor furnished to 
                the acquiring person such information as is necessary 
                for the application of subparagraph (A), then, for 
                purposes of applying this section for any taxable year 
                ending after such disposition, the amount of qualified 
                research expenses paid or incurred by, and the gross 
                receipts of, the predecessor during the measurement 
                period (as defined in

[[Page 126 STAT. 2328]]

                subparagraph (A)(vi), determined by substituting 
                `predecessor' for `acquiring person' each place it 
                appears) shall be reduced by--
                          ``(i) in the case of the taxable year in which 
                      such disposition is made, an amount equal to the 
                      product of--
                                    ``(I) the qualified research 
                                expenses paid or incurred by, or gross 
                                receipts of, the predecessor with 
                                respect to the acquired business during 
                                the measurement period (as so defined 
                                and so determined), and
                                    ``(II) the number of days in the 
                                period beginning on the date of 
                                acquisition (as determined for purposes 
                                of subparagraph (A)(iv)(II)) and ending 
                                on the last day of the taxable year of 
                                the predecessor in which the disposition 
                                is made,
                      divided by the number of days in the taxable year 
                      of the predecessor, and
                          ``(ii) in the case of any taxable year ending 
                      after the taxable year in which such disposition 
                      is made, the amount described in clause (i)(I).''.

    (c) Aggregation of Expenditures.--Paragraph (1) of section 
41(f) <<NOTE: 26 USC 41.>> is amended--
            (1) by striking ``shall be its proportionate shares of the 
        qualified research expenses, basic research payments, and 
        amounts paid or incurred to energy research consortiums, giving 
        rise to the credit'' in subparagraph (A)(ii) and inserting 
        ``shall be determined on a proportionate basis to its share of 
        the aggregate of the qualified research expenses, basic research 
        payments, and amounts paid or incurred to energy research 
        consortiums, taken into account by such controlled group for 
        purposes of this section'', and
            (2) by striking ``shall be its proportionate shares of the 
        qualified research expenses, basic research payments, and 
        amounts paid or incurred to energy research consortiums, giving 
        rise to the credit'' in subparagraph (B)(ii) and inserting 
        ``shall be determined on a proportionate basis to its share of 
        the aggregate of the qualified research expenses, basic research 
        payments, and amounts paid or incurred to energy research 
        consortiums, taken into account by all such persons under common 
        control for purposes of this section''.

    (d) <<NOTE: Applicability. 26 USC 41 note.>>  Effective Date.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to amounts paid or incurred after December 31, 2011.
            (2) Modifications.--The amendments made by subsections (b) 
        and (c) shall apply to taxable years beginning after December 
        31, 2011.
SEC. 302. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX CREDIT 
                        RATE FOR NON-FEDERALLY SUBSIDIZED NEW 
                        BUILDINGS.

    (a) In General.--Subparagraph (A) of section 42(b)(2) is amended by 
striking ``and before December 31, 2013'' and inserting ``with respect 
to housing credit dollar amount allocations made before January 1, 
2014''.

[[Page 126 STAT. 2329]]

    (b) <<NOTE: 26 USC 42 note.>>  Effective Date.--The amendment made 
by this section shall take effect on the date of the enactment of this 
Act.
SEC. 303. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR DETERMINING 
                        AREA MEDIAN GROSS INCOME FOR QUALIFIED 
                        RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY 
                        BONDS.

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 <<NOTE: 26 USC 142 note.>> is amended by 
striking ``January 1, 2012'' each place it appears and inserting 
``January 1, 2014''.

    (b) <<NOTE: 26 USC 142 note.>>  Effective Date.--The amendment made 
by this section shall take effect as if included in the enactment of 
section 3005 of the Housing Assistance Tax Act of 2008.
SEC. 304. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of <<NOTE: 26 USC 45A.>> section 45A 
is amended by striking ``December 31, 2011'' and inserting ``December 
31, 2013''.

    (b) <<NOTE: 26 USC 45A note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 305. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) is amended by 
striking ``2010 and 2011'' and inserting ``2010, 2011, 2012, and 2013''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 45D(f) 
is amended by striking ``2016'' and inserting ``2018''.
    (c) <<NOTE: 26 USC 45D note.>>  Effective Date.--The amendments made 
by this section shall apply to calendar years beginning after December 
31, 2011.
SEC. 306. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) <<NOTE: Applicability. 26 USC 45G note.>>  Effective Date.--The 
amendment made by this section shall apply to expenditures paid or 
incurred in taxable years beginning after December 31, 2011.
SEC. 307. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: 26 USC 45N note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 308. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE 
                        ACTIVE DUTY MEMBERS OF THE UNIFORMED 
                        SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 45P note.>>  Effective Date.--The 
amendment made by this section shall apply to payments made after 
December 31, 2011.
SEC. 309. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Subparagraph (B) of section 51(c)(4) is amended by 
striking ``after'' and all that follows and inserting ``after December 
31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 51 note.>>  Effective Date.--The 
amendment made by this section shall apply to individuals who begin work 
for the employer after December 31, 2011.

[[Page 126 STAT. 2330]]

SEC. 310. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Paragraph (1) of <<NOTE: 26 USC 54E.>> section 
54E(c) is amended by inserting ``, 2012, and 2013'' after ``for 2011''.

    (b) <<NOTE: Applicability. 26 USC 54E note.>>  Effective Date.--The 
amendments made by this section shall apply to obligations issued after 
December 31, 2011.
SEC. 311. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 
                        QUALIFIED LEASEHOLD IMPROVEMENTS, 
                        QUALIFIED RESTAURANT BUILDINGS AND 
                        IMPROVEMENTS, AND QUALIFIED RETAIL 
                        IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 168(e)(3)(E) 
are each amended by striking ``January 1, 2012'' and inserting ``January 
1, 2014''.
    (b) <<NOTE: Applicability. 26 USC 168 note.>>  Effective Date.--The 
amendments made by this section shall apply to property placed in 
service after December 31, 2011.
SEC. 312. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                        ENTERTAINMENT COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 168 note.>>  Effective Date.--The 
amendment made by this section shall apply to property placed in service 
after December 31, 2011.
SEC. 313. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS 
                        PROPERTY ON AN INDIAN RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 168 note.>>  Effective Date.--The 
amendment made by this section shall apply to property placed in service 
after December 31, 2011.
SEC. 314. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                        CONTRIBUTIONS OF FOOD INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 170 note.>>  Effective Date.--The 
amendment made by this section shall apply to contributions made after 
December 31, 2011.
SEC. 315. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND 
                        TREATMENT OF CERTAIN REAL PROPERTY AS 
                        SECTION 179 PROPERTY.

    (a) In General.--
            (1) Dollar limitation.--Section 179(b)(1) is amended--
                    (A) by striking ``2010 or 2011,'' in subparagraph 
                (B) and inserting ``2010, 2011, 2012, or 2013, and'',
                    (B) by striking subparagraph (C),
                    (C) by redesignating subparagraph (D) as 
                subparagraph (C), and
                    (D) in subparagraph (C), as so redesignated, by 
                striking ``2012'' and inserting ``2013''.
            (2) Reduction in limitation.--Section 179(b)(2) is amended--
                    (A) by striking ``2010 or 2011,'' in subparagraph 
                (B) and inserting ``2010, 2011, 2012, or 2013, and'',
                    (B) by striking subparagraph (C),
                    (C) by redesignating subparagraph (D) as 
                subparagraph (C), and

[[Page 126 STAT. 2331]]

                    (D) in subparagraph (C), as so redesignated, by 
                striking ``2012'' and inserting ``2013''.
            (3) Conforming amendment.--Subsection (b) of section 179 is 
        amended by striking paragraph (6).

    (b) <<NOTE: 26 USC 179.>>  Computer Software.--Section 
179(d)(1)(A)(ii) is amended by striking ``2013'' and inserting ``2014''.

    (c) Election.--Section 179(c)(2) is amended by striking ``2013'' and 
inserting ``2014''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) is amended by striking 
        ``2010 or 2011'' and inserting ``2010, 2011, 2012, or 2013''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) is amended by 
                striking ``2011'' each place it appears and inserting 
                ``2013''.
                    (B) Conforming amendment.--Subparagraph (C) of 
                section 179(f)(4) is amended--
                          (i) in the heading, by striking ``2010'' and 
                      inserting ``2010, 2011 and 2012'', and
                          (ii) by adding at the end the following: ``For 
                      the last taxable year beginning in 2013, the 
                      amount determined under subsection (b)(3)(A) for 
                      such taxable year shall be determined without 
                      regard to this paragraph.''.

    (e) <<NOTE: 26 USC 179 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 316. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 179E note.>>  Effective Date.--The 
amendment made by this section shall apply to property placed in service 
after December 31, 2011.
SEC. 317. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM 
                        AND TELEVISION PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 181 note.>>  Effective Date.--The 
amendment made by this section shall apply to productions commencing 
after December 31, 2011.
SEC. 318. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                        ATTRIBUTABLE TO DOMESTIC PRODUCTION 
                        ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
            (1) by striking ``first 6 taxable years'' and inserting 
        ``first 8 taxable years'', and
            (2) by striking ``January 1, 2012'' and inserting ``January 
        1, 2014''.

    (b) <<NOTE: 26 USC 199 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 319. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CERTAIN 
                        PAYMENTS TO CONTROLLING EXEMPT 
                        ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.

[[Page 126 STAT. 2332]]

    (b) <<NOTE: Applicability. 26 USC 512 note.>>  Effective Date.--The 
amendment made by this section shall apply to payments received or 
accrued after December 31, 2011.
SEC. 320. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
                        INVESTMENT COMPANIES.

    (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of section 
871(k) <<NOTE: 26 USC 871.>> are each amended by striking ``December 31, 
2011'' and inserting ``December 31, 2013''.

    (b) <<NOTE: 26 USC 871 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 321. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY TREATMENT 
                        UNDER FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: 26 USC 897 note.>>  Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on January 1, 2012. Notwithstanding the preceding 
        sentence, such amendment shall not apply with respect to the 
        withholding requirement under section 1445 of the Internal 
        Revenue Code of 1986 for any payment made before the date of the 
        enactment of this Act.
            (2) Amounts withheld on or before date of enactment.--In the 
        case of a regulated investment company--
                    (A) which makes a distribution after December 31, 
                2011, and before the date of the enactment of this Act; 
                and
                    (B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.
SEC. 322. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE FINANCING 
                        INCOME.

    (a) Exempt Insurance Income.--Paragraph (10) of section 953(e) is 
amended--
            (1) by striking ``January 1, 2012'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``December 31, 2011'' and inserting 
        ``December 31, 2013''.

    (b) Special Rule for Income Derived in the Active Conduct of 
Banking, Financing, or Similar Businesses.--Paragraph (9) of section 
954(h) is amended by striking ``January 1, 2012'' and inserting 
``January 1, 2014''.
    (c) <<NOTE: Applicability. 26 USC 953 note.>>  Effective Date.--The 
amendments made by this section shall apply to taxable years of foreign 
corporations beginning after December 31, 2011, and to taxable years of 
United States shareholders with or within which any such taxable year of 
such foreign corporation ends.

[[Page 126 STAT. 2333]]

SEC. 323. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS BETWEEN 
                        RELATED CONTROLLED FOREIGN CORPORATIONS 
                        UNDER FOREIGN PERSONAL HOLDING COMPANY 
                        RULES.

    (a) In General.--Subparagraph (C) of <<NOTE: 26 USC 954.>> section 
954(c)(6) is amended by striking ``January 1, 2012'' and inserting 
``January 1, 2014''.

    (b) <<NOTE: Applicability. 26 USC 954 note.>>  Effective Date.--The 
amendment made by this section shall apply to taxable years of foreign 
corporations beginning after December 31, 2011, and to taxable years of 
United States shareholders with or within which such taxable years of 
foreign corporations end.
SEC. 324. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN 
                        ON CERTAIN SMALL BUSINESS STOCK.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
            (1) by striking ``January 1, 2012'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``and 2011'' and inserting ``, 2011, 2012, 
        and 2013'' in the heading thereof.

    (b) Technical Amendments.--
            (1) Special rule for 2009 and certain period in 2010.--
        Paragraph (3) of section 1202(a) is amended by adding at the end 
        the following new flush sentence:
        ``In the case of any stock which would be described in the 
        preceding sentence (but for this sentence), the acquisition date 
        for purposes of this subsection shall be the first day on which 
        such stock was held by the taxpayer determined after the 
        application of section 1223.''.
            (2) 100 percent exclusion.--Paragraph (4) of section 1202(a) 
        is amended by adding at the end the following new flush 
        sentence:
        ``In the case of any stock which would be described in the 
        preceding sentence (but for this sentence), the acquisition date 
        for purposes of this subsection shall be the first day on which 
        such stock was held by the taxpayer determined after the 
        application of section 1223.''.

    (c) <<NOTE: 26 USC 1202 note. Applicability.>>  Effective Dates.--
            (1) In general.--The amendments made by subsection (a) shall 
        apply to stock acquired after December 31, 2011.
            (2) Subsection (b)(1).--The amendment made by subsection 
        (b)(1) shall take effect as if included in section 1241(a) of 
        division B of the American Recovery and Reinvestment Act of 
        2009.
            (3) Subsection (b)(2).--The amendment made by subsection 
        (b)(2) shall take effect as if included in section 2011(a) of 
        the Creating Small Business Jobs Act of 2010.
SEC. 325. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS 
                        MAKING CHARITABLE CONTRIBUTIONS OF 
                        PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 1367 note.>>  Effective Date.--The 
amendment made by this section shall apply to contributions made in 
taxable years beginning after December 31, 2011.

[[Page 126 STAT. 2334]]

SEC. 326. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION 
                        PERIOD FOR BUILT-IN GAINS TAX.

    (a) In General.--Paragraph (7) of <<NOTE: 26 USC 1374.>> section 
1374(d) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D), 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) <<NOTE: Applicability.>>  Special rule for 
                2012 and 2013.--For purposes of determining the net 
                recognized built-in gain for taxable years beginning in 
                2012 or 2013, subparagraphs (A) and (D) shall be applied 
                by substituting `5-year' for `10-year'.'', and
            (3) by adding at the end the following new subparagraph:
                    ``(E) Installment sales.--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.''.

    (b) Technical Amendment.--Subparagraph (B) of section 1374(d)(2) is 
amended by inserting ``described in subparagraph (A)'' after ``, for any 
taxable year''.
    (c) <<NOTE: 26 USC 1374 note.>>  Effective Date.--The amendments 
made by this section shall apply to taxable years beginning after 
December 31, 2011.
SEC. 327. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Increased Exclusion of Gain on Stock of Empowerment Zone 
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
            (1) by striking ``December 31, 2016'' and inserting 
        ``December 31, 2018''; and
            (2) by striking ``2016'' in the heading and inserting 
        ``2018''.

    (c) <<NOTE: 26 USC 1391 note.>>  Treatment of Certain Termination 
Dates Specified in Nominations.--In the case of a designation of an 
empowerment zone the nomination for which included a termination date 
which is contemporaneous with the date specified in subparagraph (A)(i) 
of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.

    (d) <<NOTE: Applicability. 26 USC 1202 note.>>  Effective Date.--The 
amendments made by this section shall apply to periods after December 
31, 2011.
SEC. 328. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK LIBERTY 
                        ZONE.

    (a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended 
by striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) <<NOTE: Applicability. 26 USC 1400L note.>>  Effective Date.--
The amendment made by this section shall apply to bonds issued after 
December 31, 2011.

[[Page 126 STAT. 2335]]

SEC. 329. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER OVER 
                        OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
                        VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of <<NOTE: 26 USC 7652.>> section 
7652(f) is amended by striking ``January 1, 2012'' and inserting 
``January 1, 2014''.

    (b) <<NOTE: Applicability. 26 USC 7652 note.>>  Effective Date.--The 
amendment made by this section shall apply to distilled spirits brought 
into the United States after December 31, 2011.
SEC. 330. MODIFICATION AND EXTENSION OF AMERICAN SAMOA ECONOMIC 
                        DEVELOPMENT CREDIT.

    (a) Modification.--
            (1) In general.--Subsection (a) of section 119 of division A 
        of the Tax Relief and Health Care Act of 2006 <<NOTE: 26 USC 30A 
        note.>> is amended by striking ``if such corporation'' and all 
        that follows and inserting ``if--
            ``(1) in the case of a taxable year beginning before January 
        1, 2012, such corporation--
                    ``(A) is an existing credit claimant with respect to 
                American Samoa, and
                    ``(B) elected the application of section 936 of the 
                Internal Revenue Code of 1986 for its last taxable year 
                beginning before January 1, 2006, and
            ``(2) in the case of a taxable year beginning after December 
        31, 2011, such corporation meets the requirements of subsection 
        (e).''.
            (2) Requirements.--Section 119 of division A of such Act is 
        amended by adding at the end the following new subsection:

    ``(e) Qualified Production Activities Income Requirement.--A 
corporation meets the requirement of this subsection if such corporation 
has qualified production activities income, as defined in subsection (c) 
of section 199 of the Internal Revenue Code of 1986, determined by 
substituting `American Samoa' for `the United States' each place it 
appears in paragraphs (3), (4), and (6) of such subsection (c), for the 
taxable year.''.
    (b) Extension.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 is amended by striking ``shall 
apply'' and all that follows and inserting ``shall apply--
            ``(1) in the case of a corporation that meets the 
        requirements of subparagraphs (A) and (B) of subsection (a)(1), 
        to the first 8 taxable years of such corporation which begin 
        after December 31, 2006, and before January 1, 2014, and
            ``(2) in the case of a corporation that does not meet the 
        requirements of subparagraphs (A) and (B) of subsection (a)(1), 
        to the first 2 taxable years of such corporation which begin 
        after December 31, 2011, and before January 1, 2014.''.

    (c) <<NOTE: 26 USC 30A note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2011.
SEC. 331. EXTENSION AND MODIFICATION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2014'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2015'', and
            (2) by striking ``January 1, 2013'' each place it appears 
        and inserting ``January 1, 2014''.

[[Page 126 STAT. 2336]]

    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) <<NOTE: 26 USC 460.>> is amended by inserting ``, 
or after December 31, 2012, and before January 1, 2014 (January 1, 2015, 
in the case of property described in section 168(k)(2)(B))'' before the 
period.

    (c) Extension of Election To Accelerate the AMT Credit in Lieu of 
Bonus Depreciation.--
            (1) In general.--Subclause (II) of section 168(k)(4)(D)(iii) 
        is amended by striking ``2013'' and inserting ``2014''.
            (2) Round 3 extension property.--Paragraph (4) of section 
        168(k) is amended by adding at the end the following new 
        subparagraph:
                    ``(J) Special rules for round 3 extension 
                property.--
                          ``(i) <<NOTE: Applicability.>>  In general.--
                      In the case of round 3 extension property, this 
                      paragraph shall be applied without regard to--
                                    ``(I) the limitation described in 
                                subparagraph (B)(i) thereof, and
                                    ``(II) the business credit increase 
                                amount under subparagraph (E)(iii) 
                                thereof.
                          ``(ii) Taxpayers previously electing 
                      acceleration.--In the case of a taxpayer who made 
                      the election under subparagraph (A) for its first 
                      taxable year ending after March 31, 2008, a 
                      taxpayer who made the election under subparagraph 
                      (H)(ii) for its first taxable year ending after 
                      December 31, 2008, or a taxpayer who made the 
                      election under subparagraph (I)(iii) for its first 
                      taxable year ending after December 31, 2010--
                                    ``(I) the taxpayer may elect not to 
                                have this paragraph apply to round 3 
                                extension property, but
                                    ``(II) if the taxpayer does not make 
                                the election under subclause (I), in 
                                applying this paragraph to the taxpayer 
                                the bonus depreciation amount, maximum 
                                amount, and maximum increase amount 
                                shall be computed and applied to 
                                eligible qualified property which is 
                                round 3 extension property.
                      The amounts described in subclause (II) shall be 
                      computed separately from any amounts computed with 
                      respect to eligible qualified property which is 
                      not round 3 extension property.
                          ``(iii) Taxpayers not previously electing 
                      acceleration.--In the case of a taxpayer who 
                      neither made the election under subparagraph (A) 
                      for its first taxable year ending after March 31, 
                      2008, nor made the election under subparagraph 
                      (H)(ii) for its first taxable year ending after 
                      December 31, 2008, nor made the election under 
                      subparagraph (I)(iii) for any taxable year ending 
                      after December 31, 2010--
                                    ``(I) the taxpayer may elect to have 
                                this paragraph apply to its first 
                                taxable year ending after December 31, 
                                2012, and each subsequent taxable year, 
                                and
                                    ``(II) <<NOTE: Applicability.>>  if 
                                the taxpayer makes the election under 
                                subclause (I), this paragraph shall only 
                                apply to

[[Page 126 STAT. 2337]]

                                eligible qualified property which is 
                                round 3 extension property.
                          ``(iv) <<NOTE: Definition.>>  Round 3 
                      extension property.--For purposes of this 
                      subparagraph, the term `round 3 extension 
                      property' means property which is eligible 
                      qualified property solely by reason of the 
                      extension of the application of the special 
                      allowance under paragraph (1) pursuant to the 
                      amendments made by section 331(a) of the American 
                      Taxpayer Relief Act of 2012 (and the application 
                      of such extension to this paragraph pursuant to 
                      the amendment made by section 331(c)(1) of such 
                      Act).''.

    (d) Normalization Rules Amendment.--Clause (ii) of section 
168(i)(9)(A) <<NOTE: 26 USC 168.>> is amended by inserting ``(respecting 
all elections made by the taxpayer under this section)'' after ``such 
property''.

    (e) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 is amended 
        by striking ``January 1, 2013'' and inserting ``January 1, 
        2014''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2013'' and inserting ``pre-
        january 1, 2014''.
            (3) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2013'' and inserting ``January 1, 2014''.
            (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2013'' and inserting ``January 1, 2014''.
            (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2013'' and inserting ``January 1, 2014''.

    (f) <<NOTE: Applicability. 26 USC 168 note.>>  Effective Date.--The 
amendments made by this section shall apply to property placed in 
service after December 31, 2012, in taxable years ending after such 
date.

                     TITLE IV--ENERGY TAX EXTENDERS

SEC. 401. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES.

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 25C note.>>  Effective Date.--The 
amendment made by this section shall apply to property placed in service 
after December 31, 2011.
SEC. 402. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                        REFUELING PROPERTY.

    (a) In General.--Paragraph (2) of section 30C(g) is amended by 
striking ``December 31, 2011.'' and inserting ``December 31, 2013''.
    (b) <<NOTE: Applicability. 26 USC 30C note.>>  Effective Date.--The 
amendment made by this section shall apply to property placed in service 
after December 31, 2011.
SEC. 403. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN ELECTRIC 
                        VEHICLES.

    (a) In General.--Section 30D is amended by adding at the end the 
following new subsection:
    ``(g) Credit Allowed for 2- and 3-wheeled Plug-in Electric 
Vehicles.--
            ``(1) In general.--In the case of a qualified 2- or 3-
        wheeled plug-in electric vehicle--
                    ``(A) there shall be allowed as a credit against the 
                tax imposed by this chapter for the taxable year an 
                amount equal to the sum of the applicable amount with 
                respect

[[Page 126 STAT. 2338]]

                to each such qualified 2- or 3-wheeled plug-in electric 
                vehicle placed in service by the taxpayer during the 
                taxable year, and
                    ``(B) the amount of the credit allowed under 
                subparagraph (A) shall be treated as a credit allowed 
                under subsection (a).
            ``(2) Applicable amount.--For purposes of paragraph (1), the 
        applicable amount is an amount equal to the lesser of--
                    ``(A) 10 percent of the cost of the qualified 2- or 
                3-wheeled plug-in electric vehicle, or
                    ``(B) $2,500.
            ``(3) Qualified 2- or 3-wheeled plug-in electric vehicle.--
        The term `qualified 2- or 3-wheeled plug-in electric vehicle' 
        means any vehicle which--
                    ``(A) has 2 or 3 wheels,
                    ``(B) meets the requirements of subparagraphs (A), 
                (B), (C), (E), and (F) of subsection (d)(1) (determined 
                by substituting `2.5 kilowatt hours' for `4 kilowatt 
                hours' in subparagraph (F)(i)),
                    ``(C) is manufactured primarily for use on public 
                streets, roads, and highways,
                    ``(D) is capable of achieving a speed of 45 miles 
                per hour or greater, and
                    ``(E) is acquired after December 31, 2011, and 
                before January 1, 2014.''.

    (b) Conforming Amendments.--
            (1) No double benefit.--Paragraph (2) of section 30D(f) is 
        amended--
                    (A) by striking ``new qualified plug-in electric 
                drive motor vehicle'' and inserting ``vehicle for which 
                a credit is allowable under subsection (a)'', and
                    (B) by striking ``allowed under subsection (a)'' and 
                inserting ``allowed under such subsection''.
            (2) <<NOTE: 26 USC 30D.>>  Air quality and safety 
        standards.--Section 30D(f)(7) is amended by striking ``motor 
        vehicle'' and inserting ``vehicle''.

    (c) <<NOTE: Applicability. 26 USC 30D note.>>  Effective Date.--The 
amendments made by this section shall apply to vehicles acquired after 
December 31, 2011.
SEC. 404. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL 
                        PRODUCER CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (H) of section 40(b)(6) is 
        amended to read as follows:
                    ``(H) Application of paragraph.--
                          ``(i) In general.--This paragraph shall apply 
                      with respect to qualified cellulosic biofuel 
                      production after December 31, 2008, and before 
                      January 1, 2014.
                          ``(ii) No carryover to certain years after 
                      expiration.--If this paragraph ceases to apply for 
                      any period by reason of clause (i), rules similar 
                      to the rules of subsection (e)(2) shall apply.''.
            (2) Conforming amendment.--Paragraph (2) of section 40(e) is 
        amended by striking ``or subsection (b)(6)(H)''.
            (3) <<NOTE: 26 USC 40 note.>>  Effective date.--The 
        amendments made by this subsection shall take effect as if 
        included in section 15321(b) of the Heartland, Habitat, and 
        Horticulture Act of 2008.

    (b) Algae Treated as a Qualified Feedstock.--

[[Page 126 STAT. 2339]]

            (1) In general.--Subclause (I) of <<NOTE: 26 USC 
        40.>> section 40(b)(6)(E)(i) is amended to read as follows:
                                    ``(I) is derived by, or from, 
                                qualified feedstocks, and''.
            (2) Qualified feedstock; special rules for algae.--Paragraph 
        (6) of section 40(b) is amended by redesignating subparagraphs 
        (F), (G), and (H), as amended by this Act, as subparagraphs (H), 
        (I), and (J), respectively, and by inserting after subparagraph 
        (E) the following new subparagraphs:
                    ``(F) Qualified feedstock.--For purposes of this 
                paragraph, the term `qualified feedstock' means--
                          ``(i) any lignocellulosic or hemicellulosic 
                      matter that is available on a renewable or 
                      recurring basis, and
                          ``(ii) any cultivated algae, cyanobacteria, or 
                      lemna.
                    ``(G) Special rules for algae.--In the case of fuel 
                which is derived by, or from, feedstock described in 
                subparagraph (F)(ii) and which is sold by the taxpayer 
                to another person for refining by such other person into 
                a fuel which meets the requirements of subparagraph 
                (E)(i)(II) and the refined fuel is not excluded under 
                subparagraph (E)(iii)--
                          ``(i) such sale shall be treated as described 
                      in subparagraph (C)(i),
                          ``(ii) such fuel shall be treated as meeting 
                      the requirements of subparagraph (E)(i)(II) and as 
                      not being excluded under subparagraph (E)(iii) in 
                      the hands of such taxpayer, and
                          ``(iii) except as provided in this 
                      subparagraph, such fuel (and any fuel derived from 
                      such fuel) shall not be taken into account under 
                      subparagraph (C) with respect to the taxpayer or 
                      any other person.''.
            (3) Conforming amendments.--
                    (A) Section 40, as amended by paragraph (2), is 
                amended--
                          (i) by striking ``cellulosic biofuel'' each 
                      place it appears in the text thereof and inserting 
                      ``second generation biofuel'',
                          (ii) by striking ``Cellulosic'' in the 
                      headings of subsections (b)(6), (b)(6)(E), and 
                      (d)(3)(D) and inserting ``Second generation'', and
                          (iii) by striking ``cellulosic'' in the 
                      headings of subsections (b)(6)(C), (b)(6)(D), 
                      (b)(6)(H), (d)(6), and (e)(3) and inserting 
                      ``second generation''.
                    (B) Clause (ii) of section 40(b)(6)(E) is amended by 
                striking ``Such term shall not'' and inserting ``The 
                term `second generation biofuel' shall not''.
                    (C) Paragraph (1) of section 4101(a) is amended by 
                striking ``cellulosic biofuel'' and inserting ``second 
                generation biofuel''.
            (4) <<NOTE: Applicability. 26 USC 40 note.>>  Effective 
        date.--The amendments made by this subsection shall apply to 
        fuels sold or used after the date of the enactment of this Act.

[[Page 126 STAT. 2340]]

SEC. 405. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE 
                        DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of <<NOTE: 26 USC 40A.>> section 40A is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.

    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2011'' and inserting ``December 31, 2013''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2011'' and inserting ``December 31, 
        2013''.

    (c) <<NOTE: Applicability. 26 USC 40A note.>>  Effective Date.--The 
amendments made by this section shall apply to fuel sold or used after 
December 31, 2011.
SEC. 406. EXTENSION OF PRODUCTION CREDIT FOR INDIAN COAL 
                        FACILITIES PLACED IN SERVICE BEFORE 2009.

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended by 
striking ``7-year period'' each place it appears and inserting ``8-year 
period''.
    (b) <<NOTE: Applicability. 26 USC 45 note.>>  Effective Date.--The 
amendment made by this section shall apply to coal produced after 
December 31, 2012.
SEC. 407. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT TO 
                        FACILITIES PRODUCING ENERGY FROM CERTAIN 
                        RENEWABLE RESOURCES.

    (a) Production Tax Credit.--
            (1) Extension for wind facilities.--Paragraph (1) of section 
        45(d) is amended by striking ``January 1, 2013'' and inserting 
        ``January 1, 2014''.
            (2) Exclusion of paper which is commonly recycled from 
        definition of municipal solid waste.--Section 45(c)(6) is 
        amended by inserting ``, except that such term does not include 
        paper which is commonly recycled and which has been segregated 
        from other solid waste (as so defined)'' after ``(42 U.S.C. 
        6903)''.
            (3) Modification to definition of qualified facility.--
                    (A) In general.--The following provisions of section 
                45(d), as amended by paragraph (1), are each amended by 
                striking ``before January 1, 2014'' and inserting ``the 
                construction of which begins before January 1, 2014'':
                          (i) Paragraph (1).
                          (ii) Paragraph (2)(A)(i).
                          (iii) Paragraph (3)(A)(i)(I).
                          (iv) Paragraph (6).
                          (v) Paragraph (7).
                          (vi) Paragraph (9)(B).
                          (vii) Paragraph (11)(B).
                    (B) Certain closed-loop biomass facilities.--
                Subparagraph (A) of section 45(d)(2) is amended by 
                adding at the end the following new flush sentence:
                ``For purposes of clause (ii), a facility shall be 
                treated as modified before January 1, 2014, if the 
                construction of such modification begins before such 
                date.''.

[[Page 126 STAT. 2341]]

                    (C) Certain open-loop biomass facilities.--Clause 
                (ii) of <<NOTE: 26 USC 45.>> section 45(d)(3)(A) is 
                amended by striking ``is originally placed in service'' 
                and inserting ``the construction of which begins''.
                    (D) Geothermal facilities.--
                          (i) In general.--Paragraph (4) of section 
                      45(d) is amended by striking ``and before January 
                      1, 2014'' and all that follows and inserting ``and 
                      which--
                    ``(A) in the case of a facility using solar energy, 
                is placed in service before January 1, 2006, or
                    ``(B) in the case of a facility using geothermal 
                energy, the construction of which begins before January 
                1, 2014.
        Such term shall not include any property described in section 
        48(a)(3) the basis of which is taken into account by the 
        taxpayer for purposes of determining the energy credit under 
        section 48.''.
                    (E) Incremental hydropower production.--Paragraph 
                (9) of section 45(d) is amended--
                          (i) by redesignating subparagraphs (A) and 
                      (B), as amended by subparagraph (A), as clauses 
                      (i) and (ii), respectively, and by moving such 
                      clauses (as so redesignated) 2 ems to the right,
                          (ii) by striking ``In the case of a facility'' 
                      and inserting the following:
                    ``(A) In general.--In the case of a facility'',
                          (iii) by redesignating subparagraph (C) as 
                      subparagraph (B), and
                          (iv) by adding at the end the following new 
                      subparagraph:
                    ``(C) Special rule.--For purposes of subparagraph 
                (A)(i), an efficiency improvement or addition to 
                capacity shall be treated as placed in service before 
                January 1, 2014, if the construction of such improvement 
                or addition begins before such date.''.

    (b) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Subparagraph (C) of section 48(a)(5) is amended to read as 
follows:
                    ``(C) Qualified investment credit facility.--For 
                purposes of this paragraph, the term `qualified 
                investment credit facility' means any facility--
                          ``(i) which is a qualified facility (within 
                      the meaning of section 45) described in paragraph 
                      (1), (2), (3), (4), (6), (7), (9), or (11) of 
                      section 45(d),
                          ``(ii) which is placed in service after 2008 
                      and the construction of which begins before 
                      January 1, 2014, and
                          ``(iii) with respect to which--
                                    ``(I) no credit has been allowed 
                                under section 45, and
                                    ``(II) the taxpayer makes an 
                                irrevocable election to have this 
                                paragraph apply.''.

    (c) Technical Corrections.--
            (1) Subparagraph (D) of section 48(a)(5) is amended--
                    (A) by striking ``and'' at the end of clause 
                (i)(II),
                    (B) by striking the period at the end of clause (ii) 
                and inserting a comma, and
                    (C) by adding at the end the following new clauses:

[[Page 126 STAT. 2342]]

                          ``(iii) which is constructed, reconstructed, 
                      erected, or acquired by the taxpayer, and
                          ``(iv) the original use of which commences 
                      with the taxpayer.''.
            (2) Paragraphs (1) and (2) of subsection (a) of section 1603 
        of division B of the American Recovery and Reinvestment Act of 
        2009 <<NOTE: 26 USC 48 note.>> are each amended by striking 
        ``placed in service'' and inserting ``originally placed in 
        service by such person''.

    (d) <<NOTE: Applicability. 26 USC 45 note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall take effect on 
        the date of the enactment of this Act.
            (2) Modification to definition of municipal solid waste.--
        The amendments made by subsection (a)(2) shall apply to 
        electricity produced and sold after the date of the enactment of 
        this Act, in taxable years ending after such date.
            (3) Technical corrections.--The amendments made by 
        subsection (c) shall apply as if included in the enactment of 
        the provisions of the American Recovery and Reinvestment Act of 
        2009 to which they relate.
SEC. 408. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of <<NOTE: 26 USC 45L.>> section 45L 
is amended by striking ``December 31, 2011'' and inserting ``December 
31, 2013''.

    (b) Energy Savings Requirements.--Clause (i) of section 45L(c)(1)(A) 
is amended by striking ``2003 International Energy Conservation Code, as 
such Code (including supplements) is in effect on the date of the 
enactment of this section''and inserting ``2006 International Energy 
Conservation Code, as such Code (including supplements) is in effect on 
January 1, 2006''.
    (c) <<NOTE: Applicability. 26 USC 45L note.>>  Effective Date.--The 
amendments made by this section shall apply to homes acquired after 
December 31, 2011.
SEC. 409. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.

    (a) In General.--Section 45M(b) is amended by striking ``2011'' each 
place it appears other than in the provisions specified in subsection 
(b) and inserting ``2011, 2012, or 2013''.
    (b) Provisions Specified.--The provisions of section 45M(b) 
specified in this subsection are subparagraph (C) of paragraph (1) and 
subparagraph (E) of paragraph (2).
    (c) <<NOTE: Applicability. 26 USC 45M note.>>  Effective Date.--The 
amendments made by this section shall apply to appliances produced after 
December 31, 2011.
SEC. 410. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR 
                        CELLULOSIC BIOFUEL PLANT PROPERTY.

    (a) Extension.--
            (1) In general.--Subparagraph (D) of section 168(l)(2) is 
        amended by striking ``January 1, 2013'' and inserting ``January 
        1, 2014''.
            (2) <<NOTE: Applicability. 26 USC 168 note.>>  Effective 
        date.--The amendment made by this subsection shall apply to 
        property placed in service after December 31, 2012.

    (b) Algae Treated as a Qualified Feedstock for Purposes of Bonus 
Depreciation for Biofuel Plant Property.--
            (1) In general.--Subparagraph (A) of section 168(l)(2) is 
        amended by striking ``solely to produce cellulosic biofuel'' and

[[Page 126 STAT. 2343]]

        inserting ``solely to produce second generation biofuel (as 
        defined in section 40(b)(6)(E))''.
            (2) Conforming amendments.--Subsection (l) of section 168, 
        as amended by <<NOTE: 26 USC 168.>> subsection (a), is amended--
                    (A) by striking ``cellulosic biofuel'' each place it 
                appears in the text thereof and inserting ``second 
                generation biofuel'',
                    (B) by striking paragraph (3) and redesignating 
                paragraphs (4) through (8) as paragraphs (3) through 
                (7), respectively,
                    (C) by striking ``Cellulosic'' in the heading of 
                such subsection and inserting ``Second Generation'', and
                    (D) by striking ``cellulosic'' in the heading of 
                paragraph (2) and inserting ``second generation''.
            (3) <<NOTE: Applicability. 26 USC 168 note.>>  Effective 
        date.--The amendments made by this subsection shall apply to 
        property placed in service after the date of the enactment of 
        this Act.
SEC. 411. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
                        IMPLEMENT FERC OR STATE ELECTRIC 
                        RESTRUCTURING POLICY FOR QUALIFIED 
                        ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) <<NOTE: Applicability. 26 USC 451 note.>>  Effective Date.--The 
amendment made by this section shall apply to dispositions after 
December 31, 2011.
SEC. 412. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

    (a) In General.--Sections 6426(d)(5) and 6426(e)(3) are each amended 
by striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Outlay Payments for Alternative Fuels.--Paragraph (6) of section 
6427(e) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``or alternative fuel mixture (as 
                defined in subsection (d)(2) or (e)(3) of section 
                6426)'' and inserting ``(as defined in section 
                6426(d)(2))'', and
                    (B) by striking ``December 31, 2011, and'' and 
                inserting ``December 31, 2013,'',
            (2) in subparagraph (D)--
                    (A) by striking ``or alternative fuel mixture'', and
                    (B) by striking the period at the end and inserting 
                ``, and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(E) any alternative fuel mixture (as defined in 
                section 6426(e)(2)) sold or used after December 31, 
                2011.''.

    (c) <<NOTE: Applicability. 26 USC 6426 note.>>  Effective Date.--The 
amendments made by this section shall apply to fuel sold or used after 
December 31, 2011.

                          TITLE V--UNEMPLOYMENT

SEC. 501. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION 
                        PROGRAM.

    (a) Extension.--Section 4007(a)(2) of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended by striking ``January 2, 2013'' and inserting ``January 1, 
2014''.

[[Page 126 STAT. 2344]]

    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (H), by striking ``and'' at the end; and
            (2) by inserting after subparagraph (I) the following:
                    ``(J) the amendments made by section 501(a) of the 
                American Taxpayer Relief Act of 2012;''.

    (c) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the enactment 
of the Unemployment Benefits Extension Act of 2012 (Public Law 112-96)
SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

    (a) In General.--Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in Public Law 111-5 
(26 U.S.C. 3304 note), is amended--
            (1) by striking ``December 31, 2012'' each place it appears 
        and inserting ``December 31, 2013''; and
            (2) in subsection (c), by striking ``June 30, 2013'' and 
        inserting ``June 30, 2014''.

    (b) Extension of Matching for States With No Waiting Week.--Section 
5 of the Unemployment Compensation Extension Act of 2008 (Public Law 
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 30, 2013'' 
and inserting ``June 30, 2014''.
    (c) Extension of Modification of Indicators Under the Extended 
Benefit Program.--Section 203 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
            (1) in subsection (d), by striking ``December 31, 2012'' and 
        inserting ``December 31, 2013''; and
            (2) in subsection (f)(2), by striking ``December 31, 2012'' 
        and inserting ``December 31, 2013''.

    (d) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the enactment 
of the Unemployment Benefits Extension Act of 2012 (Public Law 112-96).
SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND 
                        REEMPLOYMENT AND ELIGIBILITY ASSESSMENT 
                        ACTIVITIES.

    (a) In General.--Section 4004(c)(2)(A) of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended by striking ``through fiscal year 2013'' and inserting ``through 
fiscal year 2014''.
    (b) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the enactment 
of the Unemployment Benefits Extension Act of 2012 (Public Law 112-96).
SEC. 504. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                        RAILROAD UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment 
Insurance Act, as added by section 2006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9 
of the Worker, Homeownership, and Business Assistance Act of 2009 
(Public Law 111-92), section 505 of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-
312), section 202 of the Temporary Payroll Tax Cut Continuation Act of 
2011 (Public

[[Page 126 STAT. 2345]]

Law 112-78), and section 2124 of the Unemployment Benefits Extension Act 
of 2012 <<NOTE: 45 USC 352.>> (Public Law 112-96), is amended--
            (1) by striking ``June 30, 2012'' and inserting ``June 30, 
        2013''; and
            (2) by striking ``December 31, 2012'' and inserting 
        ``December 31, 2013''.

    (b) <<NOTE: 45 USC 352 note.>>  Clarification on Authority to Use 
Funds.--Funds appropriated under either the first or second sentence of 
clause (iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance 
Act shall be available to cover the cost of additional extended 
unemployment benefits provided under such section 2(c)(2)(D) by reason 
of the amendments made by subsection (a) as well as to cover the cost of 
such benefits provided under such section 2(c)(2)(D), as in effect on 
the day before the date of enactment of this Act.

    (c) Funding for Administration.--Out of any funds in the Treasury 
not otherwise appropriated, there are appropriated to the Railroad 
Retirement Board $250,000 for administrative expenses associated with 
the payment of additional extended unemployment benefits provided under 
section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason 
of the amendments made by subsection (a), to remain available until 
expended.

             TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS

                     Subtitle A--Medicare Extensions

SEC. 601. MEDICARE PHYSICIAN PAYMENT UPDATE.

    (a) In General.--Section 1848(d) of the Social Security Act (42 
U.S.C. 1395w-4(d)) is amended by adding at the end the following new 
paragraph:
            ``(14) Update for 2013.--
                    ``(A) In general.--Subject to paragraphs (7)(B), 
                (8)(B), (9)(B), (10)(B), (11)(B), (12)(B), and (13)(B), 
                in lieu of the update to the single conversion factor 
                established in paragraph (1)(C) that would otherwise 
                apply for 2013, the update to the single conversion 
                factor for such year shall be zero percent.
                    ``(B) No effect on computation of conversion factor 
                for 2014 and subsequent years.--The conversion factor 
                under this subsection shall be computed under paragraph 
                (1)(A) for 2014 and subsequent years as if subparagraph 
                (A) had never applied.''.

    (b) Advancement of Clinical Data Registries To Improve the Quality 
of Health Care.--
            (1) In general.--Section 1848(m)(3) of the Social Security 
        Act (42 U.S.C. 1395w-4(m)(3)) is amended--
                    (A) by redesignating subparagraph (D) as 
                subparagraph (F); and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraphs:
                    ``(D) Satisfactory reporting measures through 
                participation in a qualified clinical data registry.--
                For 2014 and subsequent years, the Secretary shall treat

[[Page 126 STAT. 2346]]

                an eligible professional as satisfactorily submitting 
                data on quality measures under subparagraph (A) if, in 
                lieu of reporting measures under subsection (k)(2)(C), 
                the eligible professional is satisfactorily 
                participating, as determined by the Secretary, in a 
                qualified clinical data registry (as described in 
                subparagraph (E)) for the year.
                    ``(E) Qualified clinical data registry.--
                          ``(i) In general.--The Secretary shall 
                      establish requirements for an entity to be 
                      considered a qualified clinical data registry. 
                      Such requirements shall include a requirement that 
                      the entity provide the Secretary with such 
                      information, at such times, and in such manner, as 
                      the Secretary determines necessary to carry out 
                      this subsection.
                          ``(ii) Considerations.--In establishing the 
                      requirements under clause (i), the Secretary shall 
                      consider whether an entity--
                                    ``(I) has in place mechanisms for 
                                the transparency of data elements and 
                                specifications, risk models, and 
                                measures;
                                    ``(II) requires the submission of 
                                data from participants with respect to 
                                multiple payers;
                                    ``(III) provides timely performance 
                                reports to participants at the 
                                individual participant level; and
                                    ``(IV) supports quality improvement 
                                initiatives for participants.
                          ``(iii) Measures.--With respect to measures 
                      used by a qualified clinical data registry--
                                    ``(I) sections 1890(b)(7) and 
                                1890A(a) shall not apply; and
                                    ``(II) measures endorsed by the 
                                entity with a contract with the 
                                Secretary under section 1890(a) may be 
                                used.
                          ``(iv) Consultation.--In carrying out this 
                      subparagraph, the Secretary shall consult with 
                      interested parties.
                          ``(v) <<NOTE: Process.>>  Determination.--The 
                      Secretary shall establish a process to determine 
                      whether or not an entity meets the requirements 
                      established under clause (i). Such process may 
                      involve one or both of the following:
                                    ``(I) A determination by the 
                                Secretary.
                                    ``(II) A designation by the 
                                Secretary of one or more independent 
                                organizations to make such 
                                determination.''.
            (2) GAO study and report on incorporating registry data into 
        the medicare program in order to improve quality and 
        efficiency.--
                    (A) Study.--The Comptroller General of the United 
                States shall conduct a study on the potential of 
                clinical data registries to improve the quality and 
                efficiency of care in the Medicare program, including 
                through payment system incentives. Such study shall 
                include an analysis of the role of health information 
                technology in facilitating clinical data registries and 
                the use of data from such registries among private 
                health insurers as well as other entities the 
                Comptroller General determines appropriate.

[[Page 126 STAT. 2347]]

                    (B) <<NOTE: Recommenda- tions.>>  Report.--Not later 
                than November 15, 2013, the Comptroller General of the 
                United States shall submit to Congress a report on the 
                study conducted under subparagraph (A), together with 
                recommendations for such legislation and administrative 
                action as the Comptroller General determines 
                appropriate.
SEC. 602. WORK GEOGRAPHIC ADJUSTMENT.

    Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 1395w-
4(e)(1)(E)) is amended by striking ``before January 1, 2013'' and 
inserting ``before January 1, 2014''.
SEC. 603. PAYMENT FOR OUTPATIENT THERAPY SERVICES.

    (a) Extension.--Section 1833(g) of the Social Security Act (42 
U.S.C. 1395l(g)) is amended--
            (1) in paragraph (5)(A), in the first sentence, by striking 
        ``December 31, 2012'' and inserting ``December 31, 2013''; and
            (2) in paragraph (6)--
                    (A) by striking ``December 31, 2012'' and inserting 
                ``December 31, 2013''; and
                    (B) by inserting ``or 2013'' after ``during 2012''.

    (b) Application of Therapy Cap to Therapy Furnished as Part of 
Outpatient Critical Access Hospital Services.--Section 1833(g)(6) of the 
Social Security Act (42 U.S.C. 1395l(g)(6)), as amended by subsection 
(a), is amended--
            (1) by striking ``In applying'' and inserting ``(A) In 
        applying''; and
            (2) by adding at the end the following new subparagraph:

    ``(B)(i) <<NOTE: Time period.>>  With respect to outpatient therapy 
services furnished beginning on or after January 1, 2013, and before 
January 1, 2014, for which payment is made under section 1834(g), the 
Secretary shall count toward the uniform dollar limitations described in 
paragraphs (1) and (3) and the threshold described in paragraph (5)(C) 
the amount that would be payable under this part if such services were 
paid under section 1834(k)(1)(B) instead of being paid under section 
1834(g).

    ``(ii) Nothing in clause (i) shall be construed as changing the 
method of payment for outpatient therapy services under section 
1834(g).''.
    (c) Beneficiary Protections.--Section 1833(g)(5) of the Social 
Security Act (42 U.S.C. 1395l(g)(5)) is amended by adding at the end the 
following new subparagraph:
    ``(D) <<NOTE: Applicability.>>  With respect to services furnished 
on or after January 1, 2013, where payment may not be made as a result 
of application of paragraphs (1) and (3), section 1879 shall apply in 
the same manner as such section applies to a denial that is made by 
reason of section 1862(a)(1).''.

    (d) <<NOTE: 42 USC 1395l note.>>  Implementation.--Notwithstanding 
any other provision of law, the Secretary of Health and Human Services 
may implement the provisions of, and the amendments made by, this 
section by program instruction or otherwise.
SEC. 604. AMBULANCE ADD-ON PAYMENTS.

    (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social Security 
Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
            (1) in the matter preceding clause (i), by striking 
        ``January 1, 2013'' and inserting ``January 1, 2014''; and

[[Page 126 STAT. 2348]]

            (2) in each of clauses (i) and (ii), by striking ``January 
        1, 2013'' and inserting ``January 1, 2014'' each place it 
        appears.

    (b) Air Ambulance.--Section 146(b)(1) of the Medicare Improvements 
for Patients and Providers Act of 2008 (Public Law 110-275), as amended 
by sections 3105(b) and 10311(b) of the Patient Protection and 
Affordable Care Act (Public Law 111-148), section 106(b) of the Medicare 
and Medicaid Extenders Act of 2010 (Public Law 111-309), section 306(b) 
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112-78), and section 3007(b) of the Middle Class Tax Relief and Job 
Creation Act of 2012 (Public Law 112-96), <<NOTE: 42 USC 1395m 
note.>> is amended by striking ``December 31, 2012'' and inserting 
``June 30, 2013''.

    (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended in the first 
sentence by striking ``January 1, 2013'' and inserting ``January 1, 
2014''.
    (d) Studies of Ambulance Costs.--
            (1) In general.--The Secretary of Health and Health and 
        Human Services (in this subsection referred to as the 
        ``Secretary'') shall conduct a study of each of the following:
                    (A) A study that analyzes data on existing cost 
                reports for ambulance services furnished by hospitals 
                and critical access hospitals, including variation by 
                characteristics of such providers of services.
                    (B) A study of the feasibility of obtaining cost 
                data on a periodic basis from all ambulance providers of 
                services and suppliers for potential use in examining 
                the appropriateness of the Medicare add-on payments for 
                ground ambulance services furnished under the fee 
                schedule under section 1834(l) of the Social Security 
                Act (42 U.S.C. 1395m(l)) and in preparing for future 
                reform of such payment system.
            (2) Components of one of the studies.--In conducting the 
        study under paragraph (1)(B), the Secretary shall--
                    (A) <<NOTE: Consultation.>>  consult with industry 
                on the design of such cost collection efforts;
                    (B) explore use of cost surveys and cost reports to 
                collect appropriate cost data and the periodicity of 
                such cost data collection;
                    (C) examine the feasibility of development of a 
                standard cost reporting tool for providers of services 
                and suppliers of ground ambulance services; and
                    (D) examine the ability to furnish such cost data by 
                various types of ambulance providers of services and 
                suppliers, especially by rural and super-rural providers 
                of services and suppliers.
            (3) Reports.--
                    (A) Existing cost reports.--Not later than October 
                1, 2013, the Secretary shall submit a report to Congress 
                on the study conducted under paragraph (1)(A), together 
                with recommendations for such legislation and 
                administrative action as the Secretary determines 
                appropriate.
                    (B) <<NOTE: Recommenda- tions.>>  Obtaining cost 
                data.--Not later than July 1, 2014, the Secretary shall 
                submit a report to Congress on the study conducted under 
                paragraph (1)(B), together with recommendations for such 
                legislation and administrative action as the Secretary 
                determines appropriate.

[[Page 126 STAT. 2349]]

SEC. 605. EXTENSION OF MEDICARE INPATIENT HOSPITAL PAYMENT 
                        ADJUSTMENT FOR LOW-VOLUME HOSPITALS.

    Section 1886(d)(12) of the Social Security Act (42 U.S.C. 
1395ww(d)(12)) is amended--
            (1) in subparagraph (B), in the matter preceding clause (i), 
        by striking ``2013'' and inserting ``2014'';
            (2) in subparagraph (C)(i), by striking ``and 2012'' each 
        place it appears and inserting ``, 2012, and 2013''; and
            (3) in subparagraph (D), by striking ``and 2012'' and 
        inserting ``, 2012, and 2013''.
SEC. 606. EXTENSION OF THE MEDICARE-DEPENDENT HOSPITAL (MDH) 
                        PROGRAM.

    (a) Extension of Payment Methodology.--Section 1886(d)(5)(G) of the 
Social Security Act (42 U.S.C. 1395ww(d)(5)(G)) is amended--
            (1) in clause (i), by striking ``October 1, 2012'' and 
        inserting ``October 1, 2013''; and
            (2) in clause (ii)(II), by striking ``October 1, 2012'' and 
        inserting ``October 1, 2013''.

    (b) Conforming Amendments.--
            (1) Extension of target amount.--Section 1886(b)(3)(D) of 
        the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``October 1, 2012'' and inserting ``October 1, 2013''; 
                and
                    (B) in clause (iv), by striking ``through fiscal 
                year 2012'' and inserting ``through fiscal year 2013''.
            (2) Permitting hospitals to decline reclassification.--
        Section 13501(e)(2) of the Omnibus Budget Reconciliation Act of 
        1993 (42 U.S.C. 1395ww note) is amended by striking ``through 
        fiscal year 2012'' and inserting ``through fiscal year 2013''.
SEC. 607. EXTENSION FOR SPECIALIZED MEDICARE ADVANTAGE PLANS FOR 
                        SPECIAL NEEDS INDIVIDUALS.

    Section 1859(f)(1) of the Social Security Act (42 U.S.C. 1395w-
28(f)(1)) is amended by striking ``2014'' and inserting ``2015''.
SEC. 608. EXTENSION OF MEDICARE REASONABLE COST CONTRACTS.

    Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C. 
1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause (I), 
by striking ``January 1, 2013'' and inserting ``January 1, 2014''.
SEC. 609. PERFORMANCE IMPROVEMENT.

    (a) Extension of Funding for Contract With Consensus-based Entity 
Regarding Performance Measurement.--
            (1) In general.--Section 1890(d) of the Social Security Act 
        (42 U.S.C. 1395aaa(d)) is amended by striking ``fiscal years 
        2009 through 2012'' and inserting ``fiscal years 2009 through 
        2013''.
            (2) Revision to duties.--Section 1890(b) of the Social 
        Security Act (42 U.S.C. 1395aaa(b)) is amended by striking 
        paragraph (4).

    (b) Providing Data for Performance Improvement in a Timely Manner.--
            (1) <<NOTE: Strategy.>>  In general.--The Secretary of 
        Health and Human Services (in this subsection referred to as the 
        ``Secretary'') shall

[[Page 126 STAT. 2350]]

        develop a strategy to provide data for performance improvement 
        in a timely manner to applicable providers under the Medicare 
        program under title XVIII of the Social Security Act (42 U.S.C. 
        1395 et seq.), including with respect to the provision of the 
        following:
                    (A) Utilization data, including such data for items 
                and services under parts A, B, and D of the Medicare 
                program.
                    (B) Feedback on quality data submitted by the 
                applicable provider under the Medicare program.
            (2) Considerations.--In developing the strategy under 
        paragraph (1), the Secretary shall consider--
                    (A) the type of applicable provider receiving the 
                data;
                    (B) the frequency of providing the data so that it 
                can be the most relevant in improving provider 
                performance;
                    (C) risk adjustment methods;
                    (D) presentation of the data in a meaningful manner 
                and easily understandable format;
                    (E) with respect to utilization data, the provision 
                of data that the Secretary determines would be useful to 
                improve the performance of the type of applicable 
                provider involved; and
                    (F) administrative costs involved with providing 
                data.
            (3) <<NOTE: Deadline. Web posting.>>  Submission and 
        availability of initial strategy.--Not later than 1 year after 
        the date of the enactment of this Act, the Secretary shall--
                    (A) submit to the relevant committees of Congress 
                the strategy described in paragraph (1); and
                    (B) post such strategy on the website of the Centers 
                for Medicare & Medicaid Services.
            (4) Strategy update.--
                    (A) Feedback from stakeholders.--The Secretary shall 
                seek feedback from stakeholders on the initial strategy 
                submitted under paragraph (3).
                    (B) <<NOTE: Deadline. Web posting.>>  Strategy 
                update.--The Secretary shall--
                          (i) update the strategy described in paragraph 
                      (1) based on the feedback submitted under 
                      subparagraph (A); and
                          (ii) not later than 18 months after the date 
                      of the enactment of this Act--
                                    (I) submit such updated strategy to 
                                the relevant committees of Congress; and
                                    (II) post such updated strategy on 
                                the website of the Centers for Medicare 
                                & Medicaid Services.
            (5) GAO study and report on private sector information 
        sharing activities.--
                    (A) Study.--The Comptroller General of the United 
                States (in this paragraph referred to as the 
                ``Comptroller General'') shall conduct a study on 
                information sharing activities. Such study shall include 
                an analysis of--
                          (i) how private sector entities share timely 
                      data with hospitals, physicians, and other 
                      providers and what lessons can be learned from 
                      those activities;
                          (ii) how the Medicare program currently shares 
                      data with providers, including what data is 
                      provided and to which providers, and what 
                      divisions within the Centers for Medicare & 
                      Medicaid Services oversee those efforts;

[[Page 126 STAT. 2351]]

                          (iii) what, if any, differences there are 
                      between the private sector and the Medicare 
                      program under title XVIII of the Social Security 
                      Act (42 U.S.C. 1395 et seq.) in terms of sharing 
                      data; and
                          (iv) what, if any, barriers there are for the 
                      Centers for Medicare & Medicaid Services to 
                      sharing timely data with applicable providers and 
                      recommendations to eliminate or reduce such 
                      barriers.
                    (B) Report.--Not later than 8 months after the date 
                of the enactment of this Act, the Comptroller General 
                shall submit to the relevant committees of Congress a 
                report containing the results of the study conducted 
                under subparagraph (A), together with recommendations 
                for such legislation and administrative action as the 
                Comptroller General determines appropriate.
            (6) Definitions.--In this subsection:
                    (A) Applicable provider.--The term ``applicable 
                provider'' means the following:
                          (i) A critical access hospital (as defined in 
                      section 1861(mm)(1) of the Social Security Act (42 
                      U.S.C. 1395xx(mm)(1))).
                          (ii) A hospital (as defined in section 1861(e) 
                      of such Act (42 U.S.C. 1395x(e))).
                          (iii) A physician (as defined in section 
                      1861(r) of such Act (42 U.S.C. 1395x(r))).
                          (iv) Any other provider the Secretary 
                      determines should receive the information 
                      described in subsection (a).
                    (B) Performance improvement.--The term ``performance 
                improvement'' means improvements in quality, reducing 
                per capita costs, and other criteria the Secretary 
                determines appropriate.
SEC. 610. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR LOW-
                        INCOME PROGRAMS.

    (a) Additional Funding for State Health Insurance Programs.--
Subsection (a)(1)(B) of section 119 of the Medicare Improvements for 
Patients and Providers Act of 2008 (42 U.S.C. 1395b-3 note), as amended 
by section 3306 of the Patient Protection and Affordable Care Act Public 
Law 111-148), is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after clause (ii) the following new clause:
                          ``(iii) for fiscal year 2013, of 
                      $7,500,000.''.

    (b) Additional Funding for Area Agencies on Aging.--Subsection 
(b)(1)(B) of such section 119, as so amended, is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after clause (ii) the following new clause:
                          ``(iii) for fiscal year 2013, of 
                      $7,500,000.''.

    (c) Additional Funding for Aging and Disability Resource Centers.--
Subsection (c)(1)(B) of such section 119, as so amended, is amended--
            (1) in clause (i), by striking ``and'' at the end;

[[Page 126 STAT. 2352]]

            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after clause (ii) the following new clause:
                          ``(iii) for fiscal year 2013, of 
                      $5,000,000.''.

    (d) Additional Funding for Contract With the National Center for 
Benefits and Outreach Enrollment.--Subsection (d)(2) of such section 
119, as so amended, is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after clause (ii) the following new clause:
                          ``(iii) for fiscal year 2013, of 
                      $5,000,000.''.

                   Subtitle B--Other Health Extensions

SEC. 621. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

    (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``2012'' and 
inserting ``2013''.
    (b) Extending Total Amount Available for Allocation.--Section 
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (Q), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (R), by striking the period at 
                the end and inserting a semicolon; and
                    (C) <<NOTE: Time periods.>>  by adding at the end 
                the following new subparagraphs:
                    ``(S) for the period that begins on January 1, 2013, 
                and ends on September 30, 2013, the total allocation 
                amount is $485,000,000; and
                    ``(T) for the period that begins on October 1, 2013, 
                and ends on December 31, 2013, the total allocation 
                amount is $300,000,000.''; and
            (2) in paragraph (3), in the matter preceding subparagraph 
        (A), by striking ``or (R)'' and inserting ``(R), or (T)''.
SEC. 622. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

    Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42 
U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking ``2012'' 
and inserting ``2013''.
SEC. 623. EXTENSION OF MEDICAID AND CHIP EXPRESS LANE OPTION.

    Section 1902(e)(13)(I) of the Social Security Act (42 U.S.C. 
1396a(e)(13)(I)) is amended by striking ``2013'' and inserting ``2014''.
SEC. 624. EXTENSION OF FAMILY-TO-FAMILY HEALTH INFORMATION 
                        CENTERS.

    Section 501(c)(1)(A)(iii) of the Social Security Act (42 U.S.C. 
701(c)(1)(A)(iii)) is amended by striking ``2012'' and inserting 
``2013''.
SEC. 625. EXTENSION OF SPECIAL DIABETES PROGRAM FOR TYPE I 
                        DIABETES AND FOR INDIANS.

    (a) Special Diabetes Programs for Type I Diabetes.--Section 
330B(b)(2)(C) of the Public Health Service Act (42 U.S.C. 254c-
2(b)(2)(C)) is amended by striking ``2013'' and inserting ``2014''.

[[Page 126 STAT. 2353]]

    (b) Special Diabetes Programs for Indians.--Section 330C(c)(2)(C) of 
the Public Health Service Act (42 U.S.C. 254c-3(c)(2)(C)) is amended by 
striking ``2013'' and inserting ``2014''.

                   Subtitle C--Other Health Provisions

SEC. 631. IPPS DOCUMENTATION AND CODING ADJUSTMENT FOR 
                        IMPLEMENTATION OF MS-DRGS.

    (a) Rule of Construction and Clarification.--
            (1) Rule of construction.--Nothing in the amendments made by 
        subsection (b) shall be construed as changing the existing 
        authority under section 1886(d) of the Social Security Act (42 
        U.S.C. 1395ww(d)) to make prospective documentation and coding 
        adjustments to the standardized amounts under such section 
        1886(d) to correct for changes in the coding or classification 
        of discharges that do not reflect real changes in case mix.
            (2) Clarification.--Effective on the date of the enactment 
        of this section, except as provided in section 7(b)(1)(B)(ii) of 
        the TMA, Abstinence Education, and QI Programs Extension Act of 
        2007, as added by subsection (b)(2)(A)(ii)(IV) of this section, 
        the Secretary of Health and Human Services shall not have 
        authority to fully recoup past overpayments related to 
        documentation and coding changes from fiscal years 2008 and 
        2009.

    (b) Adjustment.--Section 7 of the TMA, Abstinence Education, and QI 
Programs Extension Act of 2007 (Public Law 110-90; 121 Stat. 986) is 
amended--
            (1) in the heading, by striking ``limitation'' and all that 
        follows through ``adjustment'' and inserting ``documentation and 
        coding adjustments''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) in the matter before subparagraph (A)--
                                    (I) by striking ``or 2009'' and 
                                inserting ``, 2009, or 2010''; and
                                    (II) by inserting ``or otherwise 
                                applied for such year'' after ``applied 
                                under subsection (a)''; and
                          (ii) in subparagraph (B)--
                                    (I) by inserting ``(i)'' after 
                                ``(B)'';
                                    (II) by striking ``or decrease'';
                                    (III) by striking the period at the 
                                end and inserting ``; and''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(ii) make an additional adjustment to the 
                standardized amounts under such section 1886(d) based 
                upon the Secretary's estimates for discharges occurring 
                only during fiscal years 2014, 2015, 2016, and 2017 to 
                fully offset $11,000,000,000 (which represents the 
                amount of the increase in aggregate payments from fiscal 
                years 2008 through 2013 for which an adjustment was not 
                previously applied).''; and
                    (B) in paragraph (3)--
                          (i) in subparagraph (A), by inserting before 
                      the semicolon the following: ``or affecting the 
                      Secretary's authority under such paragraph to 
                      apply a prospective

[[Page 126 STAT. 2354]]

                      adjustment to offset aggregate additional payments 
                      related to documentation and coding improvements 
                      made with respect to discharges during fiscal year 
                      2010''; and
                          (ii) in subparagraph (B), by striking ``and 
                      2012'' and inserting ``2012, 2014, 2015, 2016, and 
                      2017''.
SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT SYSTEM TO 
                        REFLECT FINDINGS IN THE GAO REPORT.

    (a) Adjustment to ESRD Bundled Payment Rate To Account for Changes 
in the Utilization of Certain Drugs and Biologicals.--Section 
1881(b)(14) of the Social Security Act (42 U.S.C. 1395rr(b)(14)) is 
amended by adding at the end the following new subparagraph:
    ``(I) <<NOTE: Reductions.>>  For services furnished on or after 
January 1, 2014, the Secretary shall, by comparing per patient 
utilization data from 2007 with such data from 2012, make reductions to 
the single payment that would otherwise apply under this paragraph for 
renal dialysis services to reflect the Secretary's estimate of the 
change in the utilization of drugs and biologicals described in clauses 
(ii), (iii), and (iv) of subparagraph (B) (other than oral-only ESRD-
related drugs, as such term is used in the final rule promulgated by the 
Secretary in the Federal Register on August 12, 2010 (75 Fed. Reg. 
49030)). In making reductions under the preceding sentence, the 
Secretary shall take into account the most recently available data on 
average sales prices and changes in prices for drugs and biological 
reflected in the ESRD market basket percentage increase factor under 
subparagraph (F).''.

    (b) <<NOTE: 42 USC 1395rr note.>>  Two-year Delay of Implementation 
of Oral-Only ESRD-Related Drugs in the ESRD Prospective Payment System; 
Monitoring.--
            (1) Delay.--The Secretary of Health and Human Services may 
        not implement the policy under section 413.174(f)(6) of title 
        42, Code of Federal Regulations (relating to oral-only ESRD-
        related drugs in the ESRD prospective payment system), prior to 
        January 1, 2016.
            (2) Monitoring.--With respect to the implementation of oral-
        only ESRD-related drugs in the ESRD prospective payment system 
        under subsection (b)(14) of section 1881 of the Social Security 
        Act (42 U.S.C. 1395rr(b)(14)), the Secretary of Health and Human 
        Services shall monitor the bone and mineral metabolism of 
        individuals with end stage renal disease.

    (c) <<NOTE: 42 USC 1395rr note.>>  Analysis of Case Mix Payment 
Adjustments.--By not later than January 1, 2016, the Secretary of Health 
and Human Services shall--
            (1) conduct an analysis of the case mix payment adjustments 
        being used under section 1881(b)(14)(D)(i) of the Social 
        Security Act (42 U.S.C. 1395rr(b)(14)(D)(i)); and
            (2) make appropriate revisions to such case mix payment 
        adjustments.

    (d) Updated GAO Report.--Not later than December 31, 2015, the 
Comptroller General of the United States shall submit to Congress a 
report that updates the report submitted to Congress under section 10336 
of the Patient Protection and Affordable Care Act (Public Law 111-148; 
124 Stat. 974). <<NOTE: Analysis.>> The updated report shall include an 
analysis of how the Secretary of Health and Human Services has addressed 
points raised in the report submitted under

[[Page 126 STAT. 2355]]

such section 10336 with respect to the Secretary's preparations to 
implement payment for oral-only ESRD-related drugs in the bundled 
prospective payment system under section 1881(b)(14) of the Social 
Security Act (42 U.S.C. 1395rr(b)(14)).
SEC. 633. TREATMENT OF MULTIPLE SERVICE PAYMENT POLICIES FOR 
                        THERAPY SERVICES.

    (a) Services Furnished by Physicians and Certain Other Providers.--
Section 1848(b)(7) of the Social Security Act (42 U.S.C. 1395w-4(b)(7)) 
is amended--
            (1) by striking ``2011,'' and inserting ``2011, and before 
        April 1, 2013,''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of such services furnished on or after April 1, 2013, 
        and for which payment is made under such fee schedules, instead 
        of the 25 percent multiple procedure payment reduction specified 
        in such final rule, the reduction percentage shall be 50 
        percent.''.

    (b) Services Furnished by Other Providers.--Section 1834(k) of the 
Social Security Act (42 U.S.C. 1395m(k)) is amended by adding at the end 
the following new paragraph:
            ``(7) Adjustment in discount for certain multiple therapy 
        services.--In the case of therapy services furnished on or after 
        April 1, 2013, and for which payment is made under this 
        subsection pursuant to the applicable fee schedule amount (as 
        defined in paragraph (3)), instead of the 25 percent multiple 
        procedure payment reduction specified in the final rule 
        published by the Secretary in the Federal Register on November 
        29, 2010, the reduction percentage shall be 50 percent.''.
SEC. 634. PAYMENT FOR CERTAIN RADIOLOGY SERVICES FURNISHED UNDER 
                        THE MEDICARE HOSPITAL OUTPATIENT 
                        DEPARTMENT PROSPECTIVE PAYMENT SYSTEM.

    Section 1833(t)(16) of the Social Security Act (42 U.S.C. 
1395l(t)(16)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Special payment rule.--
                          ``(i) In general.--In the case of covered OPD 
                      services furnished on or after April 1, 2013, in a 
                      hospital described in clause (ii), if--
                                    ``(I) the payment rate that would 
                                otherwise apply under this subsection 
                                for stereotactic radiosurgery, complete 
                                course of treatment of cranial lesion(s) 
                                consisting of 1 session that is multi-
                                source Cobalt 60 based (identified as of 
                                January 1, 2013, by HCPCS code 77371 
                                (and any succeeding code) and reimbursed 
                                as of such date under APC 0127 (and any 
                                succeeding classification group)); 
                                exceeds
                                    ``(II) the payment rate that would 
                                otherwise apply under this subsection 
                                for linear accelerator based 
                                stereotactic radiosurgery, complete 
                                course of therapy in one session 
                                (identified as of January 1, 2013, by 
                                HCPCS code G0173 (and any succeeding 
                                code) and reimbursed as of such date 
                                under APC 0067 (and any succeeding 
                                classification group)),

[[Page 126 STAT. 2356]]

                      the payment rate for the service described in 
                      subclause (I) shall be reduced to an amount equal 
                      to the payment rate for the service described in 
                      subclause (II).
                          ``(ii) Hospital described.--A hospital 
                      described in this clause is a hospital that is 
                      not--
                                    ``(I) located in a rural area (as 
                                defined in section 1886(d)(2)(D));
                                    ``(II) classified as a rural 
                                referral center under section 
                                1886(d)(5)(C); or
                                    ``(III) a sole community hospital 
                                (as defined in section 
                                1886(d)(5)(D)(iii)).
                          ``(iii) <<NOTE: Time period.>>  Not budget 
                      neutral.--In making any budget neutrality 
                      adjustments under this subsection for 2013 (with 
                      respect to covered OPD services furnished on or 
                      after April 1, 2013, and before January 1, 2014) 
                      or a subsequent year, the Secretary shall not take 
                      into account the reduced expenditures that result 
                      from the application of this subparagraph.''.
SEC. 635. ADJUSTMENT OF EQUIPMENT UTILIZATION RATE FOR ADVANCED 
                        IMAGING SERVICES.

    Section 1848 of the Social Security Act (42 U.S.C. 1395w-4) is 
amended--
            (1) in subsection (b)(4)(C)--
                    (A) by striking ``and subsequent years'' and 
                inserting ``, 2012, and 2013''; and
                    (B) by adding at the end the following new sentence: 
                ``With respect to fee schedules established for 2014 and 
                subsequent years, in such methodology, the Secretary 
                shall use a 90 percent utilization rate.''; and
            (2) in subsection (c)(2)(B)(v)(III), by striking ``change in 
        the utilization rate applicable to 2011, as described in'' and 
        inserting ``changes in the utilization rate applicable to 2011 
        and 2014, as described in the first and second sentence, 
        respectively, of''.
SEC. 636. MEDICARE PAYMENT OF COMPETITIVE PRICES FOR DIABETIC 
                        SUPPLIES AND ELIMINATION OF OVERPAYMENT 
                        FOR DIABETIC SUPPLIES.

    (a) Application of Competitive Bidding Prices for Diabetic 
Supplies.--Section 1834(a)(1) of the Social Security Act (42 U.S.C. 
1395m(a)(1)) is amended--
            (1) in subparagraph (F), in the matter preceding clause (i), 
        by striking ``subparagraph (G)'' and inserting ``subparagraphs 
        (G) and (H)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(H) Diabetic supplies.--
                          ``(i) In general.--On or after the date 
                      described in clause (ii), the payment amount under 
                      this part for diabetic supplies, including testing 
                      strips, that are non-mail order items (as defined 
                      by the Secretary) shall be equal to the single 
                      payment amounts established under the national 
                      mail order competition for diabetic supplies under 
                      section 1847.
                          ``(ii) Date described.--The date described in 
                      this clause is the date of the implementation of 
                      the single payment amounts under the national mail 
                      order competition for diabetic supplies under 
                      section 1847.''.

[[Page 126 STAT. 2357]]

    (b) Overpayment Elimination for Diabetic Supplies.--Section 1834(a) 
of the Social Security Act (42 U.S.C. 1395m(a)) is amended by adding at 
the end the following new paragraph:
            ``(22) <<NOTE: Time period. Applicability.>>  Special 
        payment rule for diabetic supplies.--Notwithstanding the 
        preceding provisions of this subsection, for purposes of 
        determining the payment amount under this subsection for 
        diabetic supplies furnished on or after the first day of the 
        calendar quarter during 2013 that is at least 30 days after the 
        date of the enactment of this paragraph and before the date 
        described in paragraph (1)(H)(ii), the Secretary shall 
        recalculate and apply the covered item update under paragraph 
        (14) as if subparagraph (J)(i) of such paragraph was amended by 
        striking `but only if furnished through mail order'.''.
SEC. 637. MEDICARE PAYMENT ADJUSTMENT FOR NON-EMERGENCY AMBULANCE 
                        TRANSPORTS FOR ESRD BENEFICIARIES.

    Section 1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) is 
amended by adding at the end the following new paragraph:
            ``(15) Payment adjustment for non-emergency ambulance 
        transports for esrd beneficiaries.--The fee schedule amount 
        otherwise applicable under the preceding provisions of this 
        subsection shall be reduced by 10 percent for ambulance services 
        furnished on or after October 1, 2013, consisting of non-
        emergency basic life support services involving transport of an 
        individual with end-stage renal disease for renal dialysis 
        services (as described in section 1881(b)(14)(B)) furnished 
        other than on an emergency basis by a provider of services or a 
        renal dialysis facility.''.
SEC. 638. REMOVING OBSTACLES TO COLLECTION OF OVERPAYMENTS.

    (a) In General.--The last sentence of subsections (b) and (c) of 
section 1870 of the Social Security Act (42 U.S.C. 1395gg) are each 
amended--
            (1) by striking ``third year'' and inserting ``fifth year''; 
        and
            (2) by striking ``three-year'' and inserting ``five-year''.

    (b) <<NOTE: 42 USC 1395gg note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect on the date of the enactment of 
this Act.
SEC. 639. MEDICARE ADVANTAGE CODING INTENSITY ADJUSTMENT.

    Section 1853(a)(1)(C)(ii)(III) of the Social Security Act (42 U.S.C. 
1395w-23(a)(1)(C)(ii)(III)) is amended--
            (1) by striking ``1.3 percentage points'' and inserting 
        ``1.5 percentage points''; and
            (2) by striking ``5.7 percent'' and inserting ``5.9 
        percent''.
SEC. 640. ELIMINATION OF ALL FUNDING FOR THE MEDICARE IMPROVEMENT 
                        FUND.

    Section 1898(b)(1) of the Social Security Act (42 U.S.C. 
1395iii(b)(1)) is amended by striking subparagraphs (A), (B), and (C) 
and inserting the following new subparagraphs:
                    ``(A) fiscal year 2014, $0; and
                    ``(B) fiscal year 2015, $0.''.
SEC. 641. REBASING OF STATE DSH ALLOTMENTS.

    Section 1923(f)(8) of the Social Security Act (42 U.S.C. 1396r-
4(f)(8)) is amended to read as follows:

[[Page 126 STAT. 2358]]

            ``(8) Special rules for calculating dsh allotments for 
        certain fiscal years.--
                    ``(A) Fiscal year 2021.--Only with respect to fiscal 
                year 2021, the DSH allotment for a State, in lieu of the 
                amount determined under paragraph (3) for the State for 
                that year, shall be equal to the DSH allotment for the 
                State as reduced under paragraph (7) for fiscal year 
                2020, increased, subject to subparagraphs (B) and (C) of 
                paragraph (3), and paragraph (5), by the percentage 
                change in the consumer price index for all urban 
                consumers (all items; U.S. city average), for fiscal 
                year 2020.
                    ``(B) Fiscal year 2022.--Only with respect to fiscal 
                year 2022, the DSH allotment for a State, in lieu of the 
                amount determined under paragraph (3) for the State for 
                that year, shall be equal to the DSH allotment for the 
                State for fiscal year 2021, as determined under 
                subparagraph (A), increased, subject to subparagraphs 
                (B) and (C) of paragraph (3), and paragraph (5), by the 
                percentage change in the consumer price index for all 
                urban consumers (all items; U.S. city average), for 
                fiscal year 2021.
                    ``(C) Subsequent fiscal years.--The DSH allotment 
                for a State for fiscal years after fiscal year 2022 
                shall be calculated under paragraph (3) without regard 
                to this paragraph and paragraph (7).''.
SEC. 642. REPEAL OF CLASS PROGRAM.

    (a) <<NOTE: 42 USC 300ll--300ll-9.>>  Repeal.--Title XXXII of the 
Public Health Service Act (42 U.S.C. 300ll et seq.; relating to the 
CLASS program) is repealed.

    (b) Conforming Changes.--
            (1) Title VIII of the Patient Protection and Affordable Care 
        Act (Public Law 111-148; <<NOTE: 42 USC 201 note, 300ll 
        notes.>> 124 Stat. 119, 846-847) is repealed.
            (2) Section 1902(a) of the Social Security Act (42 U.S.C. 
        1396a(a)) is amended--
                    (A) by striking paragraphs (81) and (82);
                    (B) in paragraph (80), by inserting ``and'' at the 
                end; and
                    (C) by redesignating paragraph (83) as paragraph 
                (81).
            (3) Paragraphs (2) and (3) of section 6021(d) of the Deficit 
        Reduction Act of 2005 (42 U.S.C. 1396p note) are amended to read 
        as such paragraphs were in effect on the day before the date of 
        the enactment of section 8002(d) of the Patient Protection and 
        Affordable Care Act <<NOTE: Rescission.>> (Public Law 111-148). 
        Of the funds appropriated by paragraph (3) of such section 
        6021(d), as amended by the Patient Protection and Affordable 
        Care Act, the unobligated balance is rescinded.
SEC. 643. COMMISSION ON LONG-TERM CARE.

    (a) Establishment.--There is established a commission to be known as 
the Commission on Long-Term Care (referred to in this section as the 
``Commission'').
    (b) Duties.--
            (1) <<NOTE: Plans.>>  In general.--The Commission shall 
        develop a plan for the establishment, implementation, and 
        financing of a comprehensive, coordinated, and high-quality 
        system that ensures the availability of long-term services and 
        supports for individuals in need of such services and supports, 
        including elderly individuals, individuals with substantial 
        cognitive or functional limitations, other individuals who 
        require assistance to perform

[[Page 126 STAT. 2359]]

        activities of daily living, and individuals desiring to plan for 
        future long-term care needs.
            (2) <<NOTE: Recommenda- tions.>>  Existing health care 
        programs.--For purposes of developing the plan described in 
        paragraph (1), the Commission shall provide recommendations 
        for--
                    (A) addressing the interaction of a long-term 
                services and support system with existing programs for 
                long-term services and supports, including the Medicare 
                program under title XVIII of the Social Security Act (42 
                U.S.C. 1395 et seq.) and the Medicaid program under 
                title XIX of the Social Security Act (42 U.S.C. 1396 et 
                seq.), and private long-term care insurance;
                    (B) improvements to such health care programs that 
                are necessary for ensuring the availability of long-term 
                services and supports; and
                    (C) issues related to workers who provide long-term 
                services and supports, including--
                          (i) whether the number of such workers is 
                      adequate to provide long-term services and 
                      supports to individuals with long-term care needs;
                          (ii) workforce development necessary to 
                      deliver high-quality services to such individuals;
                          (iii) development of entities that have the 
                      capacity to serve as employers and fiscal agents 
                      for workers who provide long-term services and 
                      supports in the homes of such individuals; and
                          (iv) addressing gaps in Federal and State 
                      infrastructure that prevent delivery of high-
                      quality long term services and supports to such 
                      individuals.
            (3) Additional considerations.--For purposes of developing 
        the plan described in paragraph (1), the Commission shall take 
        into account projected demographic changes and trends in the 
        population of the United States, as well as the potential for 
        development of new technologies, delivery systems, or other 
        mechanisms to improve the availability and quality of long-term 
        services and supports.
            (4) Consultation.--For purposes of developing the plan 
        described in paragraph (1), the Commission shall consult with 
        the Medicare Payment Advisory Commission, the Medicaid and CHIP 
        Payment and Access Commission, the National Council on 
        Disability, and relevant consumer groups.

    (c) Membership.--
            (1) <<NOTE: Deadline. Appointments. President. Congress.>>  
        In general.--The Commission shall be composed of 15 members, to 
        be appointed not later than 30 days after the date of enactment 
        of this Act, as follows:
                    (A) The President of the United States shall appoint 
                3 members.
                    (B) The majority leader of the Senate shall appoint 
                3 members.
                    (C) The minority leader of the Senate shall appoint 
                3 members.
                    (D) The Speaker of the House of Representatives 
                shall appoint 3 members.
                    (E) The minority leader of the House of 
                Representatives shall appoint 3 members.
            (2) Representation.--The membership of the Commission shall 
        include individuals who--

[[Page 126 STAT. 2360]]

                    (A) represent the interests of--
                          (i) consumers of long-term services and 
                      supports and related insurance products, as well 
                      as their representatives;
                          (ii) older adults;
                          (iii) individuals with cognitive or functional 
                      limitations;
                          (iv) family caregivers for individuals 
                      described in clause (i), (ii), or (iii);
                          (v) the health care workforce who directly 
                      provide long-term services and supports;
                          (vi) private long-term care insurance 
                      providers;
                          (vii) employers;
                          (viii) State insurance departments; and
                          (ix) State Medicaid agencies;
                    (B) have demonstrated experience in dealing with 
                issues related to long-term services and supports, 
                health care policy, and public and private insurance; 
                and
                    (C) represent the health care interests and needs of 
                a variety of geographic areas and demographic groups.
            (3) Chairman and vice-chairman.--The Commission shall elect 
        a chairman and vice chairman from among its members.
            (4) Vacancies.--Any vacancy in the membership of the 
        Commission shall be filled in the manner in which the original 
        appointment was made and shall not affect the power of the 
        remaining members to execute the duties of the Commission.
            (5) Quorum.--A quorum shall consist of 8 members of the 
        Commission, except that 4 members may conduct a hearing under 
        subsection (e)(1).
            (6) Meetings.--The Commission shall meet at the call of its 
        chairman or a majority of its members.
            (7) Compensation and reimbursement of expenses.--
                    (A) In general.--To enable the Commission to 
                exercise its powers, functions, and duties, there are 
                authorized to be disbursed by the Senate the actual and 
                necessary expenses of the Commission approved by the 
                chairman and vice chairman, subject to subparagraph (B) 
                and the rules and regulations of the Senate.
                    (B) Members.--Members of the Commission are not 
                entitled to receive compensation for service on the 
                Commission. Members may be reimbursed for travel, 
                subsistence, and other necessary expenses incurred in 
                carrying out the duties of the Commission.

    (d) Staff and Ethical Standards.--
            (1) Staff.--The chairman and vice chairman of the Commission 
        may jointly appoint and fix the compensation of staff as they 
        deem necessary, within the guidelines for employees of the 
        Senate and following all applicable rules and employment 
        requirements of the Senate.
            (2) <<NOTE: Compliance.>>  Ethical standards.--Members of 
        the Commission who serve in the House of Representatives shall 
        be governed by the ethics rules and requirements of the House. 
        Members of the Senate who serve on the Commission and staff of 
        the Commission shall comply with the ethics rules of the Senate.

    (e) Powers.--
            (1) Hearings and other activities.--For the purpose of 
        carrying out its duties, the Commission may hold such hearings

[[Page 126 STAT. 2361]]

        and undertake such other activities as the Commission determines 
        to be necessary to carry out its duties.
            (2) Studies by general accounting office.--Upon the request 
        of the Commission, the Comptroller General of the United States 
        shall conduct such studies or investigations as the Commission 
        determines to be necessary to carry out its duties.
            (3) Cost estimates by congressional budget office.--Upon the 
        request of the Commission, the Director of the Congressional 
        Budget Office shall provide to the Commission such cost 
        estimates as the Commission determines to be necessary to carry 
        out its duties.
            (4) Detail of federal employees.--Upon the request of the 
        Commission, the head of any Federal agency is authorized to 
        detail, without reimbursement, any of the personnel of such 
        agency to the Commission to assist the Commission in carrying 
        out its duties. Any such detail shall not interrupt or otherwise 
        affect the civil service status or privileges of the Federal 
        employee.
            (5) Technical assistance.--Upon the request of the 
        Commission, the head of a Federal agency shall provide such 
        technical assistance to the Commission as the Commission 
        determines to be necessary to carry out its duties.
            (6) Use of mails.--The Commission may use the United States 
        mails in the same manner and under the same conditions as 
        Federal agencies.
            (7) Obtaining information.--The Commission may secure 
        directly from any Federal agency information necessary to enable 
        it to carry out its duties, if the information may be disclosed 
        under section 552 of title 5, United States Code. Upon request 
        of the Chairman of the Commission, the head of such agency shall 
        furnish such information to the Commission.
            (8) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission on a reimbursable basis such 
        administrative support services as the Commission may request.

    (f) Commission Consideration.--
            (1) Approval of report and legislative language.--
                    (A) In general.--Not later than 6 months after 
                appointment of the members of the Commission (as 
                described in subsection (c)(1)), the Commission shall 
                vote on a comprehensive and detailed report based on the 
                long-term care plan described in subsection (b)(1) that 
                contains any recommendations or proposals for 
                legislative or administrative action as the Commission 
                deems appropriate, including proposed legislative 
                language to carry out the recommendations or proposals 
                (referred to in this section as the ``Commission 
                bill'').
                    (B) Approval by majority of members.--The Commission 
                bill shall require the approval of a majority of the 
                members of the Commission.
            (2) Transmission of commission bill.--
                    (A) <<NOTE: Deadline.>>  In general.--If the 
                Commission bill is approved by the Commission pursuant 
                to paragraph (1), then not later than 10 days after such 
                approval, the Commission

[[Page 126 STAT. 2362]]

                shall submit the Commission bill to the President, the 
                Vice President, the Speaker of the House of 
                Representatives, and the majority and minority Leaders 
                of each House on Congress.
                    (B) Commission bill to be made public.--Upon the 
                approval or disapproval of the Commission bill pursuant 
                to paragraph (1), the Commission shall promptly make 
                such proposal, and a record of the vote, available to 
                the public.

    (g) Termination.--The Commission shall terminate 30 days after the 
vote described in subsection (f)(1).
    (h) Consideration of Commission Recommendations.--If approved by the 
majority required by subsection (f)(1), the Commission bill that has 
been submitted pursuant to subsection (f)(2)(A) shall be introduced in 
the Senate (by request) on the next day on which the Senate is in 
session by the majority leader of the Senate or by a Member of the 
Senate designated by the majority leader of the Senate and shall be 
introduced in the House of Representatives (by request) on the next 
legislative day by the majority leader of the House or by a member of 
the House designated by the majority leader of the House.
SEC. 644. CONSUMER OPERATED AND ORIENTED PLAN PROGRAM CONTINGENCY 
                        FUND.

    (a) <<NOTE: 42 USC 18042 note.>>  Establishment.--The Secretary of 
Health and Human Services shall establish a fund to be used to provide 
assistance and oversight to qualified nonprofit health insurance issuers 
that have been awarded loans or grants under section 1322 of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18042) prior to the date 
of enactment of this Act.

    (b) Transfer and Rescission.--
            (1) Transfer.--From the unobligated balance of funds 
        appropriated under section 1322(g) of the Patient Protection and 
        Affordable Care Act (42 U.S.C. 18042(g)), 10 percent of such 
        sums are hereby transferred to the fund established under 
        subsection (a) to remain available until expended.
            (2) Rescission.--Except as provided for in paragraph (1), 
        amounts appropriated under section 1322(g) of the Patient 
        Protection and Affordable Care Act (42 U.S.C. 18042(g)) that are 
        unobligated as of the date of enactment of this Act are 
        rescinded.

              TITLE VII--EXTENSION OF AGRICULTURAL PROGRAMS

SEC. 701. <<NOTE: 7 USC 8701 note.>>  1-YEAR EXTENSION OF 
                        AGRICULTURAL PROGRAMS.

    (a) <<NOTE: Deadline.>>  Extension.--Except as otherwise provided in 
this section and amendments made by this section and notwithstanding any 
other provision of law, the authorities provided by each provision of 
the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
Stat. 1651) and each amendment made by that Act (and for mandatory 
programs at such funding levels), as in effect on September 30, 2012, 
shall continue, and the Secretary of Agriculture shall carry out the 
authorities, until the later of--
            (1) September 30, 2013; or

[[Page 126 STAT. 2363]]

            (2) the date specified in the provision of that Act or 
        amendment made by that Act.

    (b) Commodity Programs.--
            (1) In general.--The terms and conditions applicable to a 
        covered commodity or loan commodity (as those terms are defined 
        in section 1001 of the Food, Conservation, and Energy Act of 
        2008 (7 U.S.C. 8702)) or to peanuts, sugarcane, or sugar beets 
        for the 2012 crop year pursuant to title I of that Act (7 U.S.C. 
        8702 et seq.) and each amendment made by that title shall be 
        applicable to the 2013 crop year for that covered commodity, 
        loan commodity, peanuts, sugarcane, or sugar beets.
            (2) Milk.--
                    (A) In general.--Notwithstanding subsection (a), the 
                Secretary of Agriculture shall carry out the dairy 
                product price support program under section 1501 of the 
                Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
                8771) through December 31, 2013.
                    (B) Milk income loss contract program.--Section 1506 
                of the Food, Conservation, and Energy Act of 2008 (7 
                U.S.C. 8773) <<NOTE: 7 USC 8773 note.>> is amended by 
                striking ``2012'' each place it appears in subsections 
                (c)(3), (d)(1), (d)(2), (e)(2)(A), (g), and (h)(1) and 
                inserting ``2013''.
            (3) Suspension of permanent price support authorities.--The 
        provisions of law specified in subsections (a) through (c) of 
        section 1602 of the Food, Conservation, and Energy Act of 2008 
        (7 U.S.C. 8782) shall be suspended--
                    (A) for the 2013 crop or production year of a 
                covered commodity (as that term is defined in section 
                1001 of that Act (7 U.S.C. 8702)), peanuts, sugarcane, 
                and sugar, as appropriate; and
                    (B) in the case of milk, through December 31, 2013.

    (c) Conservation Programs.--
            (1) Conservation reserve.--Section 1231(d) of the Food 
        Security Act of 1985 (16 U.S.C. 3831(d)) is amended in the 
        second sentence by striking ``and 2012'' and inserting ``2012, 
        and 2013''.
            (2) Voluntary public access.--Section 1240R of the Food 
        Security Act of 1985 (16 U.S.C. 3839bb-5) is amended by striking 
        subsection (f) and inserting the following:

    ``(f) Funding.--
            ``(1) Fiscal years 2009 through 2012.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use to carry 
        out this section, to the maximum extent practicable, $50,000,000 
        for the period of fiscal years 2009 through 2012.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $10,000,000 for 
        fiscal year 2013.''.

    (d) Supplemental Nutrition Assistance Program.--
            (1) Employment and training program.--Section 16(h)(1)(A) of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) is 
        amended by inserting ``, except that for fiscal year 2013, the 
        amount shall be $79,000,000'' before the period at the end.
            (2) Nutrition education.--Section 28(d)(1) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon at the end; and

[[Page 126 STAT. 2364]]

                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) for fiscal year 2012, $388,000,000;
                    ``(C) for fiscal year 2013, $285,000,000;
                    ``(D) for fiscal year 2014, $401,000,000;
                    ``(E) for fiscal year 2015, $407,000,000; and
                    ``(F) for fiscal year 2016 and each subsequent 
                fiscal year, the applicable amount during the preceding 
                fiscal year, as adjusted to reflect any increases for 
                the 12-month period ending the preceding June 30 in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.''.

    (e) Research Programs.--
            (1) Organic agriculture research and extension initiative.--
        Section 1672B(f) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 5925b(f)) is amended--
                    (A) in the heading of paragraph (1), by striking 
                ``In general'' and inserting ``Mandatory funding for 
                fiscal years 2009 through 2012'';
                    (B) in the heading of paragraph (2), by striking 
                ``Additional funding'' and inserting ``Discretionary 
                funding for fiscal years 2009 through 2012''; and
                    (C) by adding at the end the following:
            ``(3) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out this 
        section $25,000,000 for fiscal year 2013.''.
            (2) Specialty crop research initiative.--Section 412(h) of 
        the Agricultural Research, Extension, and Education Reform Act 
        of 1998 (7 U.S.C. 7632(h)) is amended--
                    (A) in the heading of paragraph (1), by striking 
                ``In general'' and inserting ``Mandatory funding for 
                fiscal years 2008 through 2012'';
                    (B) in the heading of paragraph (2), by inserting 
                ``for fiscal years 2008 through 2012'' after 
                ``Appropriations'';
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (D) by inserting after paragraph (2) the following:
            ``(3) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out this 
        section $100,000,000 for fiscal year 2013.''.
            (3) Beginning farmer and rancher development program.--
        Section 7405(h) of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 3319f(h)) is amended--
                    (A) in the heading of paragraph (1), by striking 
                ``In general'' and inserting ``Mandatory funding for 
                fiscal years 2009 through 2012'';
                    (B) in the heading of paragraph (2), by inserting 
                ``for fiscal years 2008 through 2012'' after 
                ``Appropriations''; and
                    (C) by adding at the end the following:
            ``(3) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out this 
        section $30,000,000 for fiscal year 2013.''.

    (f) Energy Programs.--
            (1) Biobased markets program.--Section 9002(h) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C.

[[Page 126 STAT. 2365]]

        8102(h)) is amended in paragraph (2) by striking ``2012'' and 
        inserting ``2013''.
            (2) Biorefinery assistance.--Section 9003(h)(2) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8103(h)(2)) 
        is amended by striking ``2012'' and inserting ``2013''.
            (3) Repowering assistance.--Section 9004(d)(2) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8104(d)(2)) 
        is amended by striking ``2012'' and inserting ``2013''.
            (4) Bioenergy program for advanced biofuels.--Section 
        9005(g)(2) of the Farm Security and Rural Investment Act of 2002 
        (7 U.S.C. 8105(g)(2)) is amended by striking ``2012'' and 
        inserting ``2013''.
            (5) Biodiesel fuel education program.--Section 9006 of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106) 
        is amended by striking subsection (d) and inserting the 
        following:

    ``(d) Funding.--
            ``(1) Fiscal years 2009 through 2012.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use to carry 
        out this section $1,000,000 for each of fiscal years 2008 
        through 2012.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $1,000,000 for 
        fiscal year 2013.''.
            (6) Rural energy for america program.--Section 9007(g)(3) of 
        the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8107(g)(3)) is amended by striking ``2012'' and inserting 
        ``2013''.
            (7) Biomass research and development.--Section 9008(h)(2) of 
        the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8108(h)(2)) is amended by striking ``2012'' and inserting 
        ``2013''.
            (8) Rural energy self-sufficiency initiative.--Section 
        9009(d) of the Farm Security and Rural Investment Act of 2002 (7 
        U.S.C. 8109(d)) is amended by striking ``2012'' and inserting 
        ``2013''.
            (9) Feedstock flexibility program for bioenergy producers.--
        Section 9010(b) of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 8110(b)) is amended in paragraphs (1)(A) and 
        (2)(A) by striking ``2012'' each place it appears and inserting 
        ``2013''.
            (10) Biomass crop assistance program.--Section 9011(f) of 
        the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8111(f)) is amended--
                    (A) by striking ``(f) Funding.--Of the funds'' and 
                inserting ``(f) Funding.--
            ``(1) Fiscal years 2008 through 2012.--Of the funds''; and
                    (B) adding at the end the following:
            ``(2) Fiscal year 2013.--
                    ``(A) <<NOTE: Appropriation authorization.>>  In 
                general.--There is authorized to be appropriated to 
                carry out this section $20,000,000 for fiscal year 2013.
                    ``(B) Multiyear contracts.--For each multiyear 
                contract entered into by the Secretary during a fiscal 
                year under this paragraph, the Secretary shall ensure 
                that sufficient funds are obligated from the amounts 
                appropriated

[[Page 126 STAT. 2366]]

                for that fiscal year to fully cover all payments 
                required by the contract for all years of the 
                contract.''.
            (11) Forest biomass for energy.--Section 9012(d) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8112(d)) is 
        amended by striking ``2012'' and inserting ``2013''.
            (12) Community wood energy program.--Section 9013(e) of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8113(e)) is amended by striking ``2012'' and inserting ``2013''.

    (g) Horticulture and Organic Agriculture Programs.--
            (1) Farmers market promotion program.--Section 6(e) of the 
        Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 
        3005(e)) is amended--
                    (A) in the heading of paragraph (1), by striking 
                ``In general'' and inserting ``Fiscal years 2008 through 
                2012'';
                    (B) by redesignating paragraphs (2), (3), and (4) as 
                paragraphs (3), (4), and (5), respectively;
                    (C) by inserting after paragraph (1) the following:
            ``(2) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out this 
        section $10,000,000 for fiscal year 2013.'';
                    (D) in paragraph (3) (as so redesignated), by 
                striking ``paragraph (1)'' and inserting ``paragraph (1) 
                or (2)''; and
                    (E) in paragraph (5) (as so redesignated), by 
                striking ``paragraph (2)'' and inserting ``paragraph 
                (3)''.
            (2) National clean plant network.--Section 10202(e) of the 
        Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761(e)) is 
        amended--
                    (A) by striking ``Of the funds'' and inserting the 
                following:
            ``(1) Fiscal years 2009 through 2012.--Of the funds''; and
                    (B) by adding at the end the following:
            ``(2) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out the 
        Program $5,000,000 for fiscal year 2013.''.
            (3) National organic certification cost-share program.--
        Section 10606 of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 6523) is amended--
                    (A) in subsection (a), by striking ``Of funds of the 
                Commodity Credit Corporation, the Secretary of 
                Agriculture (acting through the Agricultural Marketing 
                Service) shall use $22,000,000 for fiscal year 2008, to 
                remain available until expended, to'' and inserting 
                ``The Secretary of Agriculture (acting through the 
                Agricultural Marketing Service) shall''; and
                    (B) by adding at the end the following:

    ``(d) Funding.--
            ``(1) Mandatory funding for fiscal years 2008 through 
        2012.--Of the funds of the Commodity Credit Corporation, the 
        Secretary shall make available to carry out this section 
        $22,000,000 for the period of fiscal years 2008 through 2012.
            ``(2) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out this 
        section $22,000,000 for fiscal year 2013, to remain available 
        until expended.''.
            (4) Organic production and market data initiatives.--Section 
        7407(d) of the Farm Security and Rural Investment Act of 2002 (7 
        U.S.C. 5925c(d)) is amended--

[[Page 126 STAT. 2367]]

                    (A) in the heading of paragraph (1), by striking 
                ``In general'' and inserting ``Mandatory funding through 
                fiscal year 2012'';
                    (B) in the heading of paragraph (2), by striking 
                ``Additional funding'' and inserting ``Discretionary 
                funding for fiscal years 2008 through 2012''; and
                    (C) by adding at the end the following:
            ``(3) <<NOTE: Appropriation authorization.>>  Fiscal year 
        2013.--There is authorized to be appropriated to carry out this 
        section $5,000,000, to remain available until expended.''.

    (h) Outreach and Technical Assistance for Socially Disadvantaged 
Farmers or Ranchers.--Section 2501(a)(4) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)(4)) is amended--
            (1) in the heading of subparagraph (A), by striking ``In 
        general'' and inserting ``Fiscal years 2009 through 2012'';
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively;
            (3) by inserting after subparagraph (A) the following:
                    ``(B) <<NOTE: Appropriation authorization.>>  Fiscal 
                year 2013.--There is authorized to be appropriated to 
                carry out this section $20,000,000 for fiscal year 
                2013.'';
            (4) in subparagraph (C) (as so redesignated), by striking 
        ``subparagraph (A)'' and inserting ``subparagraph (A) or (B)''; 
        and
            (5) in subparagraph (D) (as so redesignated), by striking 
        ``subparagraph (A)'' and inserting ``subparagraph (A) or (B)''.

    (i) Exceptions.--
            (1) In general.--Subsection (a) does not apply with respect 
        to mandatory funding provided by programs authorized by 
        provisions of law amended by subsections (d) through (h).
            (2) Conservation.--Subsection (a) does not apply with 
        respect to the programs specified in paragraphs (3)(B), (4), 
        (6), and (7) of section 1241(a) of the Food Security Act of 1985 
        (16 U.S.C. 3841(a)), relating to the conservation stewardship 
        program, farmland protection program, environmental quality 
        incentives program, and wildlife habitat incentives program, for 
        which program authority was extended through fiscal year 2014 by 
        section 716 of Public Law 112-55 (125 Stat. 582).
            (3) Trade.--Subsection (a) does not apply with respect to 
        the following provisions of law:
                    (A) Section 3206 of the Food, Conservation, and 
                Energy Act of 2008 (7 U.S.C. 1726c) relating to the use 
                of Commodity Credit Corporation funds to support local 
                and regional food aid procurement projects.
                    (B) Section 3107(l)(1) of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 1736o-1(l)(1)) 
                relating to the use of Commodity Credit Corporation 
                funds to carry out the McGovern-Dole International Food 
                for Education and Child Nutrition Program.
            (4) Survey of foods purchased by school food authorities.--
        Subsection (a) does not apply with respect to section 4307 of 
        the Food, Conservation, and Energy Act of 2008 (Public Law 110-
        246; 122 Stat. 1893) relating to the use of Commodity Credit 
        Corporation funds for a survey and report regarding foods 
        purchased by school food authorities.

[[Page 126 STAT. 2368]]

            (5) Rural development.--Subsection (a) does not apply with 
        respect to the following provisions of law:
                    (A) Section 379E(d)(1) of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2008s(d)(1)), relating 
                to funding of the rural microentrepreneur assistance 
                program.
                    (B) Section 6029 of the Food, Conservation, and 
                Energy Act of 2008 (Public Law 110-246; 122 Stat. 1955) 
                relating to funding of pending rural development loan 
                and grant applications.
                    (C) Section 231(b)(7)(A) of the Agricultural Risk 
                Protection Act of 2000 (7 U.S.C. 1632a(b)(7)(A)), 
                relating to funding of value-added agricultural market 
                development program grants.
                    (D) Section 375(e)(6)(B) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2008j(e)(6)(B)) 
                relating to the use of Commodity Credit Corporation 
                funds for the National Sheep Industry Improvement 
                Center.
            (6) Market loss assistance for asparagus producers.--
        Subsection (a) does not apply with respect to section 10404(d) 
        of the Food, Conservation, and Energy Act of 2008 (Public Law 
        110-246; 122 Stat. 2112).
            (7) Supplemental agricultural disaster assistance.--
        Subsection (a) does not apply with respect to section 531 of the 
        Federal Crop Insurance Act (7 U.S.C. 1531) and title IX of the 
        Trade Act of 1974 (19 U.S.C. 2497 et seq.) relating to the 
        provision of supplemental agricultural disaster assistance.
            (8) Pigford claims.--Subsection (a) does not apply with 
        respect to section 14012 of the Food, Conservation, and Energy 
        Act of 2008 (Public Law 110-246; 122 Stat. 2209) relating to 
        determination on the merits of Pigford claims.
            (9) Heartland, habitat, harvest, and horticulture act of 
        2008.--Subsection (a) does not apply with respect to title XV of 
        the Food, Conservation, and Energy Act of 2008 (Public Law 110-
        246; 122 Stat. 2246), and amendments made by that title, 
        relating to the provision of supplemental agricultural disaster 
        assistance under title IX of the Trade Act of 1974 (19 U.S.C. 
        2497 et seq.), certain revenue and tax provisions, and certain 
        trade benefits and other matters.

    (j) Effective Date.--Except as otherwise provided in this section, 
this section and the amendments made by this section take effect on the 
earlier of--
            (1) the date of the enactment of this Act; or
            (2) September 30, 2012.
SEC. 702. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) In General.--Section 531 of the Federal Crop Insurance Act (7 
U.S.C. 1531) is amended--
            (1) in subsection (a)(5)--
                    (A) in the matter preceding clause (i), by striking 
                the first ``under''; and
                    (B) by redesignating clauses (i) through (iii) as 
                subparagraphs (A), (B), and (C), respectively, and 
                indenting appropriately;
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``use such sums as 
                are necessary from the Trust Fund to''; and

[[Page 126 STAT. 2369]]

                    (B) by adding at the end the following:
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $80,000,000 for 
        each of fiscal years 2012 and 2013.'';
            (3) in subsection (d)--
                    (A) in paragraph (2), by striking ``use such sums as 
                are necessary from the Trust Fund to''; and
                    (B) by adding at the end the following:
            ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $400,000,000 for 
        each of fiscal years 2012 and 2013.'';
            (4) in subsection (e)--
                    (A) in paragraph (1), by striking ``use up to 
                $50,000,000 per year from the Trust Fund to''; and
                    (B) by adding at the end the following:
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each of fiscal years 2012 and 2013.'';
            (5) in subsection (f)--
                    (A) in paragraph (2)(A), by striking ``use such sums 
                as are necessary from the Trust Fund to''; and
                    (B) by adding at the end the following:
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $20,000,000 for 
        each of fiscal years 2012 and 2013.''; and
            (6) in subsection (i), by inserting ``or, in the case of 
        subsections (c) through (f), September 30, 2013'' after 
        ``2011,''.

    (b) <<NOTE: 7 USC 1531 note.>>  Effective Date.--The amendments made 
by subsection (a) shall take effect on October 1, 2012.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. STRATEGIC DELIVERY SYSTEMS.

    (a) In General.--Paragraph 3 of section 495(c) of title 10, United 
States Code,, as added by section 1035 of the National Defense 
Authorization Act for Fiscal Year 2013, is amended--
            (1) by striking ``that'' before ``the Russian Federation'' 
        and inserting ``whether''; and
            (2) by inserting ``strategic'' before ``arms control 
        obligations''.

    (b) <<NOTE: 10 USC 495 note.>>  Effective Date.--The amendments made 
by subsection (a) shall take effect as if included in the enactment of 
the National Defense Authorization Act for Fiscal Year 2013.
SEC. 802. NO COST OF LIVING ADJUSTMENT IN PAY OF MEMBERS OF 
                        CONGRESS.

    Notwithstanding <<NOTE: 2 USC 31 note.>> any other provision of law, 
no adjustment shall be made under section 601(a) of the Legislative 
Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost of living 
adjustments for Members of Congress) during fiscal year 2013.

[[Page 126 STAT. 2370]]

                       TITLE IX--BUDGET PROVISIONS

               Subtitle A--Modifications of Sequestration

SEC. 901. TREATMENT OF SEQUESTER.

    (a) Adjustment.--Section 251A(3) of the Balanced Budget and 
Emergency Deficit Control <<NOTE: 2 USC 901a.>> Act of 1985 is amended--
            (1) in subparagraph (C), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (D), by striking the period and 
        inserting`` ; and''; and
            (3) by inserting at the end the following:
                    ``(E) for fiscal year 2013, reducing the amount 
                calculated under subparagraphs (A) through (D) by 
                $24,000,000,000.''.

    (b) After Session Sequester.--Notwithstanding any other provision of 
law, the fiscal year 2013 spending reductions required by section 
251(a)(1) of the Balanced Budget and Emergency Deficit Control Act of 
1985 shall be evaluated and implemented on March 27, 2013.
    (c) Postponement of Budget Control Act Sequester for Fiscal Year 
2013.--Section 251A of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in paragraph (4), by striking ``January 2, 2013'' and 
        inserting ``March 1, 2013''; and
            (2) in paragraph (7)(A), by striking ``January 2, 2013'' and 
        inserting ``March 1, 2013''.

    (d) Additional Adjustments.--
            (1) Section 251.--Paragraphs (2) and (3) of section 251(c) 
        of the Balanced Budget and Emergency Deficit Control Act of 1985 
        are <<NOTE: 2 USC 901.>> amended to read as follows:
            ``(2) for fiscal year 2013--
                    ``(A) for the security category, as defined in 
                section 250(c)(4)(B), $684,000,000,000 in budget 
                authority; and
                    ``(B) for the nonsecurity category, as defined in 
                section 250(c)(4)(A), $359,000,000,000 in budget 
                authority;
            ``(3) for fiscal year 2014--
                    ``(A) for the security category, $552,000,000,000 in 
                budget authority; and
                    ``(B) for the nonsecurity category, $506,000,000,000 
                in budget authority;''.

    (e) <<NOTE: Effective date. President. Applicability. 2 USC 901a 
note.>>  2013 Sequester.--On March 1, 2013, the President shall order a 
sequestration for fiscal year 2013 pursuant to section 251A of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended by 
this section, pursuant to which, only for the purposes of the 
calculation in sections 251A(5)(A), 251A(6)(A), and 251A(7)(A), section 
251(c)(2) shall be applied as if it read as follows:
            ``(2) For fiscal year 2013--
                    ``(A) for the security category, $544,000,000,000 in 
                budget authority; and
                    ``(B) for the nonsecurity category, $499,000,000,000 
                in budget authority;''.

[[Page 126 STAT. 2371]]

SEC. 902. AMOUNTS IN APPLICABLE RETIREMENT PLANS MAY BE 
                        TRANSFERRED TO DESIGNATED ROTH ACCOUNTS 
                        WITHOUT DISTRIBUTION.

    (a) <<NOTE: 26 USC 402A.>>  In General.--Section 402A(c)(4) is 
amended by adding at the end the following:
                    ``(E) Special rule for certain transfers.--In the 
                case of an applicable retirement plan which includes a 
                qualified Roth contribution program--
                          ``(i) the plan may allow an individual to 
                      elect to have the plan transfer any amount not 
                      otherwise distributable under the plan to a 
                      designated Roth account maintained for the benefit 
                      of the individual,
                          ``(ii) such transfer shall be treated as a 
                      distribution to which this paragraph applies which 
                      was contributed in a qualified rollover 
                      contribution (within the meaning of section 
                      408A(e)) to such account, and
                          ``(iii) the plan shall not be treated as 
                      violating the provisions of section 
                      401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), or 
                      457(d)(1)(A), or of section 8433 of title 5, 
                      United States Code, solely by reason of such 
                      transfer.''.

    (b) <<NOTE: 26 USC 402A note.>>  Effective Date.--The amendment made 
by this section shall apply to transfers after December 31, 2012, in 
taxable years ending after such date.

                      Subtitle B--Budgetary Effects

SEC. 911. BUDGETARY EFFECTS.

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

    Approved January 2, 2013.

LEGISLATIVE HISTORY--H.R. 8:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD:
                                                        Vol. 158 (2012):
                                    Aug. 1, considered and passed House.
                                    Dec. 31, considered and passed 
                                        Senate, amended.
                                                        Vol. 158 (2013):
                                    Jan. 1, House concurred in Senate 
                                        amendments.

                                  <all>