May 15, 2014: Congressional Record publishes “TEXT OF AMENDMENTS”

Friday, Sep 24, 2021 @ 7:26pm By EP News Wire Reports

Volume 160, No. 74 covering the 2nd Session of the 113th Congress (2013 - 2014) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“TEXT OF AMENDMENTS” mentioning the Environmental Protection Agency was published in the Senate section on pages S3082-S3145 on May 15, 2014.

The publication is reproduced in full below:

TEXT OF AMENDMENTS

SA 3101. Ms. STABENOW (for herself, Mr. Brown, Mr. Roberts, and Mr. Blunt) submitted an amendment intended to be proposed by her to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 30, strike line 19 and insert the following:

tion 125(c) of such Act).

``(iv) Special maximum increase amount.--In the case of round 4 extension property placed in service by a corporation--

``(I) subparagraph (C)(iii) shall not apply, and

``(II) the term `maximum increase amount' means an amount that is 50 percent of the AMT credit increase amount determined with respect to such corporation under subparagraph (E) by substituting `December 31, 2013' for

`March 31, 2008' and by substituting `January 1, 2011' for

`January 1, 2006'.''.

______

SA 3102. Mr. LEE submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 47, strike line 10 and all that follows through page 50, line 9.

Beginning on page 50, strike line 19 and all that follows through page 55, line 17.

On page 56, strike line 6 and all that follows through line 14.

On page 58, strike line 3 and all that follows through line 11 and insert the following:

case of any alternative fuel credit properly determined under section 6426(d) of the Internal Revenue Code of 1986 for periods after December 31, 2013, and before the date of the enactment of this Act,

Beginning on page 59, strike line 7 and all that follows through page 60, line 2.

At the appropriate place, insert the following:

TITLE VI--ENERGY FREEDOM AND ECONOMIC PROSPERITY ACT OF 2014

Subtitle A--Short Title; etc.

SEC. _01. SHORT TITLE.

This title may be cited as the ``Energy Freedom and Economic Prosperity Act of 2014''.

Subtitle B--Repeal of Energy Tax Subsidies

SEC. _11. EARLY TERMINATION OF CREDIT FOR QUALIFIED FUEL CELL

MOTOR VEHICLES.

(a) In General.--Section 30B is repealed.

(b) Conforming Amendments.--

(1) Subparagraph (A) of section 24(b)(3) is amended by striking ``, 30B''.

(2) Paragraph (2) of section 25B(g) is amended by striking

``, 30B,''.

(3) Subsection (b) of section 38 is amended by striking paragraph (25).

(4) Subsection (a) of section 1016 is amended by striking paragraph (35) and by redesignating paragraphs (36) and (37) as paragraphs (35) and (36), respectively.

(5) Subsection (m) of section 6501 is amended by striking

``, 30B(h)(9)''.

(c) Clerical Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30B.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _12. EARLY TERMINATION OF NEW QUALIFIED PLUG-IN ELECTRIC

DRIVE MOTOR VEHICLES.

(a) In General.--Section 30D is repealed.

(b) Effective Date.--The amendment made by this section shall apply to vehicles placed in service after the date of the enactment of this Act.

SEC. _13. REPEAL OF CREDIT FOR ALCOHOL USED AS FUEL.

(a) In General.--Section 40, as amended by this Act, is repealed.

(b) Conforming Amendments.--

(1) Subsection (b) of section 38 is amended by striking paragraph (3).

(2) Subsection (c) of section 196 is amended by striking paragraph (3) and by redesignating paragraphs (4) through

(14) as paragraphs (3) through (13), respectively.

(3) Paragraph (1) of section 4101(a) is amended by striking

``, and every person producing cellulosic biofuel (as defined in section 40(b)(6)(E))''.

(4) Paragraph (1) of section 4104(a) is amended by striking

``, 40''.

(c) Effective Date.--The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act.

SEC. _14. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

(a) In General.--Section 43 is repealed.

(b) Conforming Amendments.--

(1) Subsection (b) of section 38 is amended by striking paragraph (6).

(2) Paragraph (4) of section 45Q(d) is amended by inserting

``(as in effect on the day before the date of the enactment of the Energy Freedom and Economic Prosperity Act of 2014)'' after ``section 43(c)(2)''.

(3) Subsection (c) of section 196, as amended by sections 105 and 106 of this Act, is amended by striking paragraph (5) and by redesignating paragraphs (6) through (12) as paragraphs (5) through (11), respectively.

(c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 43.

(d) Effective Date.--The amendments made by this section shall apply to costs paid or incurred after December 31, 2014.

SEC. _15. REPEAL OF CREDIT FOR PRODUCING OIL AND GAS FROM

MARGINAL WELLS.

(a) In General.--Section 45I is repealed.

(b) Conforming Amendment.--Subsection (b) of section 38 is amended by striking paragraph (19).

(c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 45I.

(d) Effective Date.--The amendments made by this section shall apply to production in taxable years beginning after December 31, 2014.

SEC. _16. TERMINATION OF CREDIT FOR PRODUCTION FROM ADVANCED

NUCLEAR POWER FACILITIES.

(a) In General.--Subparagraph (B) of section 45J(d)(1) is amended by striking ``January 1, 2021'' and inserting

``January 1, 2015''.

(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _17. REPEAL OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

(a) In General.--Section 45Q is repealed.

(b) Effective Date.--The amendment made by this section shall apply to carbon dioxide captured after December 31, 2014.

SEC. _18. TERMINATION OF ENERGY CREDIT.

(a) In General.--Section 48 is amended by adding at the end the following new subsection:

``(e) Termination.--No credit shall be allowed under subsection (a) for any period after December 31, 2014.''.

(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _19. REPEAL OF QUALIFYING ADVANCED COAL PROJECT.

(a) In General.--Section 48A is repealed.

(b) Conforming Amendment.--Section 46 is amended by striking paragraph (3) and by redesignating paragraphs (4),

(5), and (6) as paragraphs (3), (4), and (5), respectively.

(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48A.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _20. REPEAL OF QUALIFYING GASIFICATION PROJECT CREDIT.

(a) In General.--Section 48B is repealed.

(b) Conforming Amendment.--Section 46, as amended by this Act, is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and

(4), respectively.

(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48B.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _21. REPEAL OF QUALIFYING ADVANCED ENERGY PROJECT

CREDIT.

(a) In General.--Section 48C is repealed.

(b) Conforming Amendment.--Section 46, as amended by this Act, is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3).

(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48C.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

Subtitle C--Reduction of Corporate Income Tax Rate

SEC. _31. CORPORATE INCOME TAX RATE REDUCED.

(a) In General.--Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe, in lieu of the rates of tax under paragraphs

(1) and (2) of section 11(b), section 1201(a), and paragraphs

(1), (2), and (6) of section 1445(e) of the Internal Revenue Code of 1986, such rates of tax as the Secretary estimates would result in--

(1) a decrease in revenue to the Treasury for taxable years beginning during the 10-year period beginning on the date of the enactment of this Act, equal to

(2) the increase in revenue for such taxable years by reason of the amendments made by title I of this Act.

(b) Maintenance of Graduated Rates.--In prescribing the tax rates under subsection (a), the Secretary shall ensure that each rate modified under such subsection is reduced by a uniform percentage.

(c) Effective Date.--The rates prescribed by the Secretary under subsection (a) shall apply to taxable years beginning more than 1 year after the date of the enactment of this Act.

______

SA 3103. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. LIMITATION ON STATE TAXATION OF COMPENSATION EARNED

BY NONRESIDENT TELECOMMUTERS AND OTHER MULTI-

STATE WORKERS.

(a) In General.--Chapter 4 of title 4, United States Code, is amended by adding at the end the following:

``Sec. 127. Limitation on State taxation of compensation earned by nonresident telecommuters and other multi-State workers

``(a) In General.--In applying its income tax laws to the compensation of a nonresident individual, a State may deem such nonresident individual to be present in or working in such State for any period of time only if such nonresident individual is physically present in such State for such period and such State may not impose nonresident income taxes on such compensation with respect to any period of time when such nonresident individual is physically present in another State.

``(b) Determination of Physical Presence.--For purposes of determining physical presence, no State may deem a nonresident individual to be present in or working in such State on the grounds that--

``(1) such nonresident individual is present at or working at home for convenience, or

``(2) such nonresident individual's work at home or office at home fails any convenience of the employer test or any similar test.

``(c) Determination of Periods of Time With Respect to Which Compensation Is Paid.--For purposes of determining the periods of time with respect to which compensation is paid, no State may deem a period of time during which a nonresident individual is physically present in another State and performing certain tasks in such other State to be--

``(1) time that is not normal work time unless such individual's employer deems such period to be time that is not normal work time,

``(2) nonworking time unless such individual's employer deems such period to be nonworking time, or

``(3) time with respect to which no compensation is paid unless such individual's employer deems such period to be time with respect to which no compensation is paid.

``(d) Definitions.--As used in this section--

``(1) State.--The term `State' means each of the several States (or any subdivision thereof), the District of Columbia, and any territory or possession of the United States.

``(2) Income tax.--The term `income tax' has the meaning given such term by section 110(c).

``(3) Income tax laws.--The term `income tax laws' includes any statutes, regulations, administrative practices, administrative interpretations, and judicial decisions.

``(4) Nonresident individual.--The term `nonresident individual' means an individual who is not a resident of the State applying its income tax laws to such individual.

``(5) Employee.--The term `employee' means an employee as defined by the State in which the nonresident individual is physically present and performing personal services for compensation.

``(6) Employer.--The term `employer' means the person having control of the payment of an individual's compensation.

``(7) Compensation.--The term `compensation' means the salary, wages, or other remuneration earned by an individual for personal services performed as an employee or as an independent contractor.

``(e) No Inference.--Nothing in this section shall be construed as bearing on--

``(1) any tax laws other than income tax laws,

``(2) the taxation of corporations, partnerships, trusts, estates, limited liability companies, or other entities, organizations, or persons other than nonresident individuals in their capacities as employees or independent contractors,

``(3) the taxation of individuals in their capacities as shareholders, partners, trust and estate beneficiaries, members or managers of limited liability companies, or in any similar capacities, and

``(4) the income taxation of dividends, interest, annuities, rents, royalties, or other forms of unearned income.''.

(b) Clerical Amendment.--The table of sections of such chapter 4 is amended by adding at the end the following new item:

``127. Limitation on State taxation of compensation earned by nonresident telecommuters and other multi-State workers.''.

______

SA 3104. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--STOP SUBSIDIZING CHILDHOOD OBESITY ACT

SEC. _01. SHORT TITLE.

This title may be cited as the ``Stop Subsidizing Childhood Obesity Act''.

SEC. _02. FINDINGS.

Congress finds the following:

(1) Childhood obesity has more than doubled in children and tripled in adolescents in the past 30 years. Currently, more than one-third of children and adolescents are overweight or obese.

(2) A report by the Robert Wood Johnson Foundation found that if the population of the United States continues on its current trajectory, adult obesity rates could exceed 60 percent in a number of states by 2030.

(3) Health-related behaviors, such as eating habits and physical activity patterns, develop early in life and often extend into adulthood. The diets of American children and adolescents depart substantially from recommended patterns that put their health at risk. Overall, American children and youth are not achieving basic nutritional goals. They are consuming excess calories and added sugars and have higher than recommended intakes of sodium, total fat, and saturated fats.

(4) Budgets for food marketing to children have spiked into the billions of dollars. According to a 2012 report from the Federal Trade Commission, the total amount spent on food marketing to children is about $2,000,000,000 a year.

(5) Companies market food to children through television, radio, Internet, magazines, product placement in movies and video games, schools, product packages, toys, clothing and other merchandise, and almost anywhere a logo or product image can be shown.

(6) According to a comprehensive review by the National Academies' Institute of Medicine, studies demonstrate that television food advertising affects children's food choices, food purchase requests, diets, and health.

(7) A 2005 report from the Institute of Medicine confirmed that ``aggressive marketing of high-calorie foods to children and adolescents has been identified as one of the major contributors to childhood obesity''.

(8) Nearly three-quarters of the foods advertised on television shows intended for children are for sweets and convenience or fast foods.

(9) A study published in the Journal of Law and Economics and funded by the National Institutes of Health found that the elimination of the tax deduction that allows companies to deduct costs associated with advertising food of poor nutritional quality to children could reduce the rates of childhood obesity by 5 to 7 percent.

SEC. _03. DENIAL OF DEDUCTION FOR ADVERTISING AND MARKETING

DIRECTED AT CHILDREN TO PROMOTE THE CONSUMPTION

OF FOOD OF POOR NUTRITIONAL QUALITY.

(a) In General.--Part IX of subchapter B of chapter 1 is amended by adding at the end the following new section:

``SEC. 280I. DENIAL OF DEDUCTION FOR ADVERTISING AND

MARKETING DIRECTED AT CHILDREN TO PROMOTE THE

CONSUMPTION OF FOOD OF POOR NUTRITIONAL

QUALITY.

``(a) In General.--No deduction shall be allowed under this chapter with respect to--

``(1) any advertisement or marketing--

``(A) primarily directed at children for purposes of promoting the consumption by children of any food of poor nutritional quality, or

``(B) of a brand primarily associated with food of poor nutritional quality that is primarily directed at children, and

``(2) any of the following which are incurred or provided primarily for purposes described in paragraph (1):

``(A) Travel expenses (including meals and lodging).

``(B) Goods or services of a type generally considered to constitute entertainment, amusement, or recreation or the use of a facility in connection with providing such goods and services.

``(C) Gifts.

``(D) Other promotion expenses.

``(b) IOM Study.--

``(1) In general.--Not later than 60 days after the date of the enactment of this section, the Secretary shall enter into a contract with the Institute of Medicine under which the Institute of Medicine shall develop procedures for the evaluation and identification of--

``(A) food of poor nutritional quality, and

``(B) brands that are primarily associated with food of poor nutritional quality.

``(2) IOM report.--Not later than 12 months after the date of the enactment of this section, the Institute of Medicine shall submit to the Secretary a report that establishes the proposed procedures described in paragraph (1).

``(c) Definitions.--In this section:

``(1) Brand.--The term `brand' means a corporate or product name, a business image, or a mark, regardless of whether it may legally qualify as a trademark, used by a seller or manufacturer to identify goods or services and to distinguish them from the goods of a competitor.

``(2) Child.--The term `child' means an individual who is under the age of 14.

``(3) Food.--The term `food' shall include beverages, candy, and chewing gum.

``(4) Marketing.--The term `marketing' means any product or brand advertising or promotional techniques directed at children, including--

``(A) advertising (including product placement) on television and radio, in print media, in social media, and on the Internet (including third-party and company-sponsored websites),

``(B) the use of characters or mascots, themes, activities, incentives, or any other advertising or promotional techniques contained on the packaging or labeling of a product,

``(C) advertising preceding a movie shown in a movie theater or placed on a video (DVD or VHS) or within a video game or mobile application,

``(D) promotional content transmitted to televisions, personal computers, and other digital or mobile devices,

``(E) advertising displays and promotions at the retail site or events,

``(F) specialty or premium items distributed in connection with the sale of a product or a product loyalty program,

``(G) character licensing, toy co-branding and cross-promotions,

``(H) celebrity and athlete endorsements, and

``(I) any advertising or promotional techniques used within a school.

``(d) Regulations.--Not later than 18 months after the date of the enactment of this section, the Secretary, in consultation with the Secretary of Health and Human Services and the Federal Trade Commission, shall promulgate such regulations as may be necessary to carry out the purposes of this section, including regulations defining the terms

`directed at children', `food of poor nutritional quality', and `brand primarily associated with food of poor nutritional quality' for purposes of this section.''.

(b) Clerical Amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following new item:

``Sec. 280I. Denial of deduction for advertising and marketing directed at children to promote the consumption of food of poor nutritional quality.''.

(c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning 24 months after the date of the enactment of this Act.

SEC. _04. ADDITIONAL FUNDING FOR THE FRESH FRUIT AND

VEGETABLE PROGRAM.

In addition to any other amounts made available to carry out the Fresh Fruit and Vegetable Program under section 19 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769a), the Secretary of the Treasury (or the Secretary's delegate) shall, on an annual basis, transfer to such program, from amounts in the general fund of the Treasury of the United States, an amount determined by the Secretary of the Treasury (or the Secretary's delegate) to be equal to the increase in revenue for the preceding 12-month period by reason of the enactment of section 280I of the Internal Revenue Code of 1986, as added by this Act.

______

SA 3105. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. MANUFACTURING REINVESTMENT ACCOUNTS.

(a) In General.--Part VI of subchapter B of chapter 1 is amended by inserting after section 199 the following new section:

``SEC. 199A. MANUFACTURING REINVESTMENT ACCOUNTS.

``(a) Deduction Allowed.--In the case of a taxpayer engaged in a manufacturing business, there shall be allowed as a deduction for the taxable year the amount paid in cash by the taxpayer during the taxable year to a manufacturing reinvestment account (hereinafter referred to as an `MRA') for the taxpayer's benefit.

``(b) Limitation.--

``(1) In general.--The amount which a taxpayer may pay into an MRA for the taxable year shall not exceed the lesser of--

``(A) the domestic manufacturing gross receipts of the taxpayer for the taxable year, or

``(B) $500,000.

``(2) Controlled groups.--

``(A) In general.--For purposes of this subsection, all persons treated as a single employer under subsection (a) or

(b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.

``(B) Inclusion of foreign corporations.--For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.

``(c) MRA.--For purposes of this section, the term `MRA' means a trust created or organized in the United States for the exclusive benefit of the taxpayer, but only if the written governing instrument creating the trust meets the following requirements:

``(1) No contribution will be accepted for any taxable year unless it is in cash.

``(2) Contributions will not be accepted for any taxable year in excess of the amount allowed as a deduction under subsection (a) for such year.

``(3) The trustee is an eligible institution.

``(4) No part of the trust assets will be invested in life insurance contracts.

``(5) No part of the trust assets will be invested in any collectible (as defined in section 408(m)).

``(6) The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund.

``(d) Tax Treatment of Accounts.--

``(1) In general.--An MRA is exempt from taxation under this subtitle unless the account has ceased to be an MRA. Notwithstanding the preceding sentence, an MRA is subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable, etc. organizations).

``(2) Account terminations.--Rules similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to MRAs, and any amount treated as distributed under such rules shall be treated as not used to pay qualified reinvestment expenses.

``(e) Treatment of Distributions.--

``(1) In general.--Except as provided in paragraphs (3) and

(4), there shall be includible in the gross income of the taxpayer for any taxable year--

``(A) any amount distributed from an MRA of the taxpayer during such taxable year, and

``(B) any deemed distribution under--

``(i) subsection (g)(1) (relating to deposits not distributed within 7 years),

``(ii) subsection (g)(2) (relating to cessation in manufacturing business), and

``(iii) subparagraph (A) or (B) of subsection (g)(3)

(relating to prohibited transactions and pledging account as security).

``(2) Additional tax.--

``(A) In general.--The tax imposed by this chapter on the taxpayer for any taxable year in which there is a distribution from an MRA shall be increased by 10 percent of the amount of such distribution which is includible in gross income.

``(B) Exception.--Subparagraph (A) shall not apply to distributions during the taxable year to the extent necessary, under regulations prescribed by the Secretary, to avoid bankruptcy.

``(3) Reduced inclusion for amounts reinvested.--Only 43 percent of the aggregate amount distributed from an MRA during the taxable year shall be includible in income under paragraph (1)(A) to the extent that such aggregate amount does not exceed the aggregate amount of qualified reinvestment expenses paid or incurred by the taxpayer during such year.

``(4) Distribution of excess contributions.--Paragraph (1) shall not apply to the distribution of any contribution paid during a taxable year to an MRA to the extent that such contribution exceeds the limitation applicable under subsection (b) if requirements similar to the requirements of section 408(d)(4) are met.

``(f) Definitions.--For purposes of this section--

``(1) Manufacturing business.--The term `manufacturing business' means any trade or business having domestic manufacturing gross receipts.

``(2) Domestic manufacturing gross receipts.--The term

`domestic manufacturing gross receipts' means gross receipts of the taxpayer which are derived from any lease, rental, license, sale, exchange, or other disposition of tangible personal property which was manufactured by the taxpayer in whole or in significant part within the United States. Rules similar to the rules of section 199 shall apply in determining the gross receipts of the taxpayer for purposes of the preceding sentence.

``(3) Qualified reinvestment expenses.--The term `qualified reinvestment expenses' means--

``(A) expenses for property to be used by the taxpayer in a manufacturing business, and

``(B) expenses for job training and workforce development for employees of the taxpayer.

``(4) Eligible institution.--

``(A) In general.--The term `eligible institution' means--

``(i) any insured depository institution, which--

``(I) is not controlled by a bank holding company or savings and loan holding company that is also an eligible institution,

``(II) has total assets of equal to or less than

$25,000,000,000, as reported in the call report as of the end of the fourth quarter of calendar year 2012, and

``(III) is not directly or indirectly controlled by any company or other entity that has total consolidated assets of more than $25,000,000,000, as so reported;

``(ii) any bank holding company which has total consolidated assets of equal to or less than $25,000,000,000;

``(iii) any savings and loan holding company which has total consolidated assets of equal to or less than

$25,000,000,000;

``(iv) any community development financial institution loan fund which has total assets of equal to or less than

$25,000,000,000; and

``(v) any small business lending company that has total assets of equal to or less than $25,000,000,000.

``(B) Insured depository institution.--The term `insured depository institution' has the meaning given such term under section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)).

``(C) Bank holding company.--The term `bank holding company' has the meaning given such term under section 2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(2)(a)(1)).

``(D) Call report.--The term `call report' means--

``(i) reports of Condition and Income submitted to the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation;

``(ii) the Office of Thrift Supervision Thrift Financial Report;

``(iii) any report that is designated by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of Thrift Supervision, as applicable, as a successor to any report referred to in clause (i) or (ii);

``(iv) standard reports of Condition and Income submitted by Community Development Financial Institution loan funds to the Community Development Financial Institutions Fund; and

``(v) with respect to an eligible institution for which no report exists that is described under clause (i), (ii), or

(iii), such other report or set of information as the Secretary, in consultation with the Administrator of the Small Business Administration, may prescribe.

``(g) Special Rules.--

``(1) Tax on deposits in account which are not distributed within 7 years.--

``(A) In general.--If, at the close of any taxable year, there is a nonqualified balance in any MRA--

``(i) there shall be deemed distributed from the MRA during such taxable year an amount equal to such balance, and

``(ii) the taxpayer's tax imposed by this chapter for such taxable year shall be increased by 10 percent of such deemed distribution.

``(B) Nonqualified balance.--For purposes of subparagraph

(A), the term `nonqualified balance' means any balance in the MRA on the last day of the taxable year which is attributable to amounts deposited in such account before the 6th preceding taxable year.

``(C) Ordering rule.--For purposes of this paragraph, distributions from an MRA shall be treated as made from deposits (and income thereon) in the order in which such deposits were made, beginning with the earliest deposits.

``(2) Cessation of manufacturing business.--If the taxpayer ceases to be engaged in a manufacturing business, there shall be deemed distributed from the MRA of the taxpayer at the close of the first taxable year beginning after such cessation an amount equal to the balance in the MRA (if any) at such close.

``(3) Certain rules to apply.--Rules similar to the following rules shall apply for purposes of this section:

``(A) Section 408(e)(2) (relating to loss of exemption of account where taxpayer engages in prohibited transaction).

``(B) Section 408(e)(4) (relating to effect of pledging account as security).

``(C) Section 408(h) (relating to custodial accounts).

``(4) Time when payments deemed made.--For purposes of this section, a taxpayer shall be deemed to have made a payment to an MRA on the last day of a taxable year if such payment is made on account of such taxable year and is made on or before the due date (without regard to extensions) for filing the return of tax for such taxable year.

``(5) Deduction not allowed for self-employment tax.--The deduction allowable by reason of subsection (a) shall not be taken into account in determining an individual's net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2.

``(h) Reports.--The trustee of an MRA shall make such reports regarding such account to the Secretary and to the person for whose benefit the account is maintained with respect to contributions, distributions, and such other matters as the Secretary may require under regulations. The reports required by this subsection shall be filed at such time and in such manner and furnished to such persons at such time and in such manner as may be required by such regulations.

``(i) Termination.--No deduction shall be allowed under this section for any taxable year beginning more than 10 years after the date of the enactment of this section.''.

(b) Tax on Excess Contributions.--

(1) In general.--Subsection (a) of section 4973 is amended by striking ``or'' at the end of paragraph (4), by adding

``or'' at the end of paragraph (5), and by inserting after paragraph (5) the following new paragraph:

``(6) an MRA (within the meaning of section 199A(c)),''.

(2) Excess contribution defined.--Section 4973 is amended by adding at the end the following new subsection:

``(h) Excess Contributions to MRAs.--For purposes of this section, in the case of MRAs (within the meaning of section 199A(c)), the term `excess contributions' means the amount by which the amount contributed for the taxable year to the MRAs of the taxpayer exceeds the amount which may be contributed to such MRAs under section 199A(b) for such taxable year. For purposes of this subsection, any contribution which is distributed out of an MRA in a distribution to which section 199A(e)(3) applies shall be treated as an amount not contributed.''.

(1) In general.--Paragraph (1) of section 4975(e) is amended by striking ``or'' at the end of subparagraph (F), by redesignating subparagraph (G) as subparagraph (H), and by inserting after subparagraph (F) the following:

``(G) an MRA described in section 199A(c), or''.

(2) Special rule.--Subsection (c) of section 4975 is amended by adding at the end the following:

``(7) Special rule for manufacturing reinvestment accounts.--A person for whose benefit an MRA (within the meaning of section 199A(c)) is established shall be exempt from the tax imposed by this section with respect to any transaction concerning such account (which would otherwise be taxable under this section) if, with respect to such transaction, the account ceases to be an MRA by reason of the application of section 199A(g)(3)(A) to such account.''.

(d) Failure To Provide Reports on MRAs.--Paragraph (2) of section 6693(a) is amended by redesignating subparagraphs (A) through (E) as subparagraphs (B) and (F), respectively, and by inserting before subparagraph (B), as so redesignated, the following new subparagraph:

``(A) section 199A(h) (relating to manufacturing reinvestment accounts),''.

(e) Clerical Amendment.--The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 199 the following new item:

``Sec. 199A. Manufacturing reinvestment accounts.''.

(f) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

______

SA 3106. Mr. MENENDEZ submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page _, between lines _ and _, insert the following:

``(12) Special rule for certain qualified facilities.--

``(A) In general.--In the case of a qualified facility described in paragraph (3) or (7) of subsection (d) and placed in service before the date of the enactment of this paragraph, subsection (a)(2)(A)(ii) shall be applied by substituting `the period beginning after December 31, 2013, and ending before January 1, 2016' for `the 10-year period beginning on the date the facility was originally placed in service'.

``(B) Limitation.--No credit shall be allowed under subsection (a) by reason of subparagraph (A) with respect to electricity produced and sold at a facility during any period which, when aggregated with all other periods for which a credit is allowed under this section with respect to electricity produced and sold at such facility, is in excess of 10 years.''.

______

SA 3107. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 24, strike line 1 and all that follows through line 6 on page 25 and insert the following:

SEC. 119. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX

CREDIT.

(a) In General.--Paragraph (4) of section 51(c) is amended by striking ``for the employer'' and all that follows and inserting ``for the employer after--

``(i) December 31, 2017, in the case of a qualified veteran, and

``(ii) December 31, 2015, in the case of any other individual.''.

(b) Credit for Hiring Long-term Unemployment Recipients.--

(1) In general.--Paragraph (1) of section 51(d) is amended by striking ``or'' at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting ``, or'', and by adding at the end the following new subparagraph:

``(J) a qualified long-term unemployment recipient.''.

(2) Qualified long-term unemployment recipient.--Subsection

(d) of section 51 is amended by adding at the end the following new paragraph:

``(15) Qualified long-term unemployment recipient.--The term `qualified long-term unemployment recipient' means any individual who is certified by the designated local agency as being in a period of unemployment which--

``(A) is not less than 27 consecutive weeks, and

``(B) includes a period in which the individual was receiving unemployment compensation under State or Federal law.''.

``(D) Pre-screening of qualified veterans.--

``(i) In general.--Subparagraph (A) shall be applied without regard to subclause (II) of clause (ii) thereof in the case of an individual seeking treatment as a qualified veteran with respect to whom the pre-screening notice contains--

``(I) qualified veteran status documentation,

``(II) qualified proof of unemployment compensation, and

``(III) an affidavit furnished by the individual stating, under penalty of perjury, that the information provided under subclauses (I) and (II) is true.

``(ii) Qualified veteran status documentation.--For purposes of clause (i), the term `qualified veteran status documentation' means any documentation provided to an individual by the Department of Defense or the National Guard upon release or discharge from the Armed Forces which includes information sufficient to establish that such individual is a veteran.

``(iii) Qualified proof of unemployment compensation.--For purposes of clause (i), the term `qualified proof of unemployment compensation' means, with respect to an individual, checks or other proof of receipt of payment of unemployment compensation to such individual for periods aggregating not less than 4 weeks (in the case of an individual seeking treatment under paragraph (3)(A)(iii)), or not less than 6 months (in the case of an individual seeking treatment under clause (ii)(II) or (iv) of paragraph (3)(A)), during the 1-year period ending on the hiring date.''.

(d) Credit Made Available Against Payroll Taxes in Certain Circumstances.--

(1) In general.--Paragraph (2) of section 52(c) is amended--

(A) by striking ``qualified tax-exempt organizations'' in the heading and inserting ``certain employers'', and

(B) by striking ``by qualified tax-exempt organizations'' and inserting ``by certain employers''.

(2) Credit allowed to certain for-profit employers.--Subsection (e) of section 3111 is amended--

(A) by inserting ``or a qualified for-profit employer'' after ``If a qualified tax-exempt organization'' in paragraph

(1),

(B) by striking ``with respect to whom a credit would be allowable under section 38 by reason of section 51 if the organization were not a qualified tax-exempt organization'' in paragraph (1),

``employees of the organization'' each place it appears in paragraphs (1) and (2),

(D) by inserting ``in the case of a qualified tax-exempt organization,'' before ``by only taking into account'' in subparagraph (C) of paragraph (3),

(E) by inserting ``or for-profit employer'' after ``the organization'' in paragraph (4),

(F) by redesignating subparagraph (B) of paragraph (5) as subparagraph (C) of such paragraph, by striking ``and'' at the end of subparagraph (A) of such paragraph, and by inserting after subparagraph (A) of such paragraph the following new subparagraph:

``(B) the term `qualified for-profit employer' means, with respect to a taxable year, an employer not described in subparagraph (A), but only if--

``(i) such employer does not have profits for any of the 3 taxable years preceding such taxable year, and

``(ii) such employer elects under section 51(j) not to have section 51 apply to such taxable year, and'', and

(G) by striking ``has meaning given such term by section 51(d)(3)'' in subparagraph (C) of paragraph (5), as so redesignated, and inserting ``means a qualified veteran (within the meaning of section 51(d)(3)) with respect to whom a credit would be allowable under section 38 by reason of section 51 if the employer of such veteran were not a qualified tax-exempt organization or a qualified for-profit employer''.

(3) Transfers to federal old-age and survivors insurance trust fund.--There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by paragraphs (1) and (2). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.

(e) Report.--Not later than 2 years after the date of the enactment of this Act, and annually thereafter, the Commissioner of Internal Revenue, in consultation with the Secretary of Labor, shall report to the Congress on the effectiveness and cost-effectiveness of the amendments made by subsections (a), (c), and (d) in increasing the employment of veterans. Such report shall include the results of a survey, conducted, if needed, in consultation with the Veterans' Employment and Training Service of the Department of Labor, to determine how many veterans are hired by each employer that claims the credit under section 51, by reason of subsection (d)(1)(B) thereof, or 3111(e) of the Internal Revenue Code of 1986.

(f) Treatment of Possessions.--

(1) Payments to possessions.--

(A) Mirror code possessions.--The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section

(other than subsection (b)). Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession of the United States.

(B) Other possessions.--The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system the amount estimated by the Secretary of the Treasury as being equal to the loss to that possession that would have occurred by reason of the amendments made by this section (other than subsection (b)) if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession establishes to the satisfaction of the Secretary that the possession has implemented (or, at the discretion of the Secretary, will implement) an income tax benefit which is substantially equivalent to the income tax credit in effect after the amendments made by this section (other than subsection (b)).

(2) Coordination with credit allowed against united states income taxes.--The credit allowed against United States income taxes for any taxable year under the amendments made by this section (other than subsection (b)) to section 51 of the Internal Revenue Code of 1986 to any person with respect to any qualified veteran shall be reduced by the amount of any credit (or other tax benefit described in paragraph

(1)(B)) allowed to such person against income taxes imposed by the possession of the United States by reason of this subsection with respect to such qualified veteran for such taxable year.

(3) Definitions and special rules.--

(A) Possession of the united states.--For purposes of this subsection, the term ``possession of the United States'' includes American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the United States Virgin Islands.

(B) Mirror code tax system.--For purposes of this subsection, the term ``mirror code tax system'' means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

(C) Treatment of payments.--For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from credit provisions described in such section.

(g) Effective Dates.--

(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2013.

(2) Special rules relating to veterans.--The amendments made by subsections (c) and (d) shall apply to individuals who begin work for the employer after the date of the enactment of this Act.

______

SA 3108. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill S. 2260, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

(a) In General.--Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

``SEC. 30E. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

``(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the fair market value of any National Scenic Trail conservation contribution of the taxpayer for the taxable year.

``(b) National Scenic Trail Conservation Contribution.--For purposes of this section--

``(1) In general.--The term `National Scenic Trail conservation contribution' means any qualified conservation contribution--

``(A) to the extent the qualified real property interest with respect to such contribution includes a National Scenic Trail (or portion thereof) and its trail corridor, and

``(B) with respect to which the taxpayer makes an election under this section.

``(2) National scenic trail.--The term `National Scenic Trail' means any trail authorized and designated under section 5 of the National Trails System Act (16 U.S.C. 1244), but only if such trail is at least 200 miles in length.

``(3) Trail corridor.--The term `trail corridor' means so much of the corridor of a trail as is--

``(A) not less than--

``(i) 150 feet wide on each side of such trail, or

``(ii) in the case of an interest in real property of the taxpayer which includes less than 150 feet on either side of such trail, the entire distance with respect to such interest on such side, and

``(B) not greater than 2,640 feet wide.

``(4) Qualified conservation contribution; qualified real property interest.--The terms `qualified conservation contribution' and `qualified real property interest' have the respective meanings given such terms by section 170(h), except that paragraph (2)(A) thereof shall be applied without regard to any qualified mineral interest (as defined in paragraph (6) thereof).

``(c) Special Rules.--

``(1) Fair market value.--Fair market value of any National Scenic Trail conservation contribution shall be determined under rules similar to the valuation rules under Treasury Regulations under section 170, except that in any case, to the extent practicable, fair market value shall be determined by reference to the highest and best use of the real property with respect to such contribution.

``(2) Election irrevocable.--An election under this section may not be revoked.

``(3) Denial of double benefit.--No deduction shall be allowed under this chapter with respect to any qualified conservation contribution with respect to which an election is made under this section.

``(d) Limitation Based on Amount of Tax; Carryforward of Unused Credit.--

``(1) Limitation.--The credit allowed under subsection (a) for any taxable year shall not exceed the sum of--

``(A) the taxpayer's regular tax liability (as defined in section 26(b)) for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 30, 30B, 30C, and 30D, plus

``(B) the tax imposed by section 55.

``(2) Carryforward.--

``(A) In general.--If the credit allowable under subsection

(a) exceeds the limitation imposed by paragraph (1) for any taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

``(B) Limitation.--No credit may be carried forward under this subsection to any taxable year following the tenth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis.''.

(b) Continued Use Not Inconsistent With Conservation Purposes.--A contribution of an interest in real property shall not fail to be treated as a National Scenic Trail conservation contribution (as defined in section 30E(b) of the Internal Revenue Code of 1986) solely by reason of continued use of the real property, such as for recreational or agricultural use (including motor vehicle use related thereto), if, under the circumstances, such use does not impair significant conservation interests and is not inconsistent with the purposes of the National Trails System Act (16 U.S.C. 1241 et seq.).

(1) In general.--The Secretary of the Interior shall, in consultation with the Secretary of the Treasury, study--

(A) the efficacy of the National Scenic Trail conservation credit under section 30E of the Internal Revenue Code of 1986 in completing, extending, and increasing the number of National Scenic Trails (as defined in section 30E(b) of such Code), and

(B) the feasibility and estimated costs and benefits of--

(i) making such credit refundable (in whole or in part), and

(ii) allowing transfer of such credit.

(2) Report.--Not later than 4 years after the date of the enactment of this Act, the Secretary of the Interior shall submit a report to Congress on the results of the study conducted under this subsection.

(d) Conforming Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

``30E. National Scenic Trail conservation credit.''.

(e) Effective Date.--The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.

______

SA 3109. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill S. 2260, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. EXTENSION OF TIME PERIOD FOR CONTRIBUTING MILITARY

DEATH GRATUITIES TO ROTH IRAS AND COVERDELL

EDUCATION SAVINGS ACCOUNTS.

(a) In General.--Sections 408A(e)(2)(A) and 530(d)(9)(A) are each amended by striking ``1-year period'' and inserting

``3-year period''.

(b) Effective Date.--The amendments made by this section shall apply to amounts received under section 1477 of title 10, United States Code, or under section 1967 of title 38 of the Internal Revenue Code of 1986 after the date of the enactment of this Act.

______

SA 3110. Mr. FLAKE (for himself, Mr. Alexander, Mr. Toomey, Mr. McCain, Mr. Lee, and Mr. McConnell) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 52, strike line 1 and all that follows through line 21.

______

SA 3111. Mr. FLAKE (for himself, Mr. Alexander, Mr. McCain, Mr. Lee, and Mr. McConnell) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 52, between lines 19 and 20, insert the following:

(1) In general.--The following provisions of section 45(d), as amended by subsection (a), are each amended by striking

``and the construction of which begins before'' each place it appears and inserting ``and before'':

(A) Paragraph (1).

(B) Paragraph (2)(A)(i).

(D) Paragraph (6).

(E) Paragraph (7).

(F) Paragraph (9)(A)(ii).

(G) Paragraph (11)(B).

(2) Open-loop biomass facilities.--Clause (ii) of section 45(d)(3)(A) is amended by striking ``the construction of which begins before'' and inserting ``is originally placed in service before''.

(3) Geothermal facilities.--Paragraph (4) of section 45(d), as amended by subsection (a), is amended by striking ``and which--'' and all that follows and inserting ``and before--

``(A) January 1, 2006, in the case of a facility using solar energy, and

``(B) January 1, 2016, in the case of a facility using geothermal energy.''.

______

SA 3112. Mr. HARKIN (for himself, Mr. Grassley, Mr. Rockefeller, and Mr. Blunt) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. __01. INCREASE IN LIMITATION FOR ALTERNATIVE TAX

LIABILITY FOR SMALL PROPERTY AND CASUALTY

INSURANCE COMPANIES.

(a) In General.--Section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended--

(1) by striking ``every insurance company other than life

(including interinsurers and reciprocal underwriters)'' and inserting ``every property or casualty insurance company'',

(2) in clause (i), by striking ``$1,200,000, and'' and inserting ``$2,100,000,'',

(3) by redesignating clause (ii) as clause (iii),

(4) by inserting after clause (i) the following new clause:

``(ii) more than 50 percent of the gross receipts of such company consist of premiums, and'', and

(5) in the flush matter at the end, by striking ``clause

(ii)'' and inserting ``clause (iii)''.

(b) Inflation Adjustment.--Paragraph (2) of section 831(b) of such Code is amended by adding at the end the following new subparagraph:

``(C) Inflation adjustment.--In the case of any taxable year beginning in a calendar year after 2014, the dollar amount set forth in subparagraph (A)(i) shall 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 such calendar year by substituting

`calendar year 2013' for `calendar year 1992' in subparagraph

(B) thereof.

If the amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.''.

(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

______

SA 3113. Mr. THUNE (for himself, Ms. Ayotte, and Mr. McConnell) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--INTERNET TAX FREEDOM

SEC. _01. SHORT TITLE.

This title may be cited as the ``Internet Tax Freedom Forever Act''.

SEC. _02. FINDINGS.

Congress makes the following findings:

(1) The Internet has continued to drive economic growth, productivity and innovation since the Internet Tax Freedom Act was first enacted in 1998.

(2) The Internet promotes a nationwide economic environment that facilitates innovation, promotes efficiency, and empowers people to broadly share their ideas.

(3) According to the National Broadband Plan, cost remains the biggest barrier to consumer broadband adoption. Keeping Internet access affordable promotes consumer access to this critical gateway to jobs, education, healthcare, and entrepreneurial opportunities, regardless of race, income, or neighborhood.

(4) Small business owners rely heavily on affordable Internet access, providing them with access to new markets, additional consumers, and an opportunity to compete in the global economy.

(5) Economists have recognized that excessive taxation of innovative communications technologies reduces economic welfare more than taxes on other sectors of the economy.

(6) The provision of affordable access to the Internet is fundamental to the American economy and access to it must be protected from multiple and discriminatory taxes at the State and local level.

(7) As a massive global network that spans political boundaries, the Internet is inherently a matter of interstate and foreign commerce within the jurisdiction of the United States Congress under article I, section 8, clause 3 of the Constitution of the United States.

SEC. _03. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES AND

MULTIPLE AND DISCRIMINATORY TAXES ON ELECTRONIC

COMMERCE.

(a) In General.--Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking `` during the period beginning November 1, 2003, and ending November 1, 2014''.

(b) Effective Date.--The amendment made by this section shall apply to taxes imposed after the date of the enactment of this Act.

______

SA 3114. Mr. THUNE (for himself and Mr. Schumer) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. _01. OLYMPIC AND PARALYMPIC MEDALS AND USOC PRIZE MONEY

EXCLUDED FROM GROSS INCOME.

(a) In General.--Section 74 is amended by adding at the end the following new subsection:

``(d) Exception for Olympic and Paralympic Medals and Prizes.--Gross income shall not include the value of any medal awarded in, or any prize money received from the United States Olympic Committee on account of, competition in the Olympic Games or Paralympic Games.''.

(b) Effective Date.--The amendment made by this section shall apply to prizes and awards received after December 31, 2013.

______

SA 3115. Mr. HOEVEN (for himself and Ms. Cantwell) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. SAFE HARBOR FOR EXPENSING BY SMALL BUSINESSES OF

ACQUISITION OR PRODUCTION COSTS OF TANGIBLE

PROPERTY.

(a) In General.--Section 263 is amended by adding at the end the following:

``(j) Election for Small Businesses To Expense Certain Acquisition and Production Costs.--

``(1) In general.--If the amount paid or incurred by an eligible taxpayer to acquire or produce any item of tangible property does not exceed $5,000 (or such higher amount as the Secretary may prescribe by regulations), then, notwithstanding subsection (a), the taxpayer may elect to treat such amount as an expense which is not chargeable to capital account nor treated as a material or supply. Any amount so treated shall be allowed as a deduction for the taxable year in which the property is acquired or produced.

``(2) Eligible taxpayer.--For purposes of this subsection--

``(A) In general.--The term `eligible taxpayer' means, with respect to any taxable year, a taxpayer--

``(i) who meets the gross receipts test of subparagraph (B) for the taxable year, and

``(ii) who, as of the beginning of the taxable year, has in effect written accounting procedures meeting such requirements as the Secretary may prescribe with respect to the expensing of amounts described in paragraph (1).

``(B) Gross receipts test.--A taxpayer meets the gross receipts test of this subparagraph for any taxable year if the average annual gross receipts of such taxpayer for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed $10,000,000.

``(C) Rules relating to gross receipts test.--For purposes of subparagraph (B)--

``(i) the rules of paragraphs (2) and (3) of section 448(c) shall apply, and

``(ii) in the case of a partnership, S corporation, trust, estate, or other pass-thru entity, the gross receipts test shall apply at the entity level.

``(3) Election.--Any election under this subsection for any taxable year shall--

``(A) specify the items of tangible property to which the election applies, and

``(B) be made, in such manner as the Secretary may prescribe, on the taxpayer's return of the tax imposed by this chapter for the taxable year.

Any election made under this subsection, and any specification made in any such election, may not be revoked except with the consent of the Secretary.

``(4) Coordination with section 179.--This subsection shall be applied before section 179.

``(5) Regulations.--The Secretary shall prescribe such regulations as are necessary to carry out the purposes of this subsection, including regulations providing for--

``(A) exceptions for property which is inventory or land or for which the taxpayer makes an election for optional treatment under section 162; and

``(B) the aggregation of all amounts paid or incurred with respect to any item of tangible property.

``(6) Rule of construction.--If, for any taxable year, a taxpayer is not an eligible taxpayer (or is an eligible taxpayer who does not elect to have this subsection apply), nothing in this subsection shall be construed as prohibiting the expensing of any amount paid or incurred during the taxable year to acquire or produce any item of tangible property if such expensing is permitted under any safe harbor or other provision of the regulations prescribed under this section.

``(7) Cross reference.--For capitalization of certain expenses where a taxpayer produces property or acquires property for resale, see section 263A.''.

(b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2013.

______

SA 3116. Mr. ROBERTS (for himself, Mr. McConnell, and Mr. Hatch) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. REPEAL OF DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY

IF FOR PRESCRIBED DRUG OR INSULIN.

Section 9003 of the Patient Protection and Affordable Care Act (Public Law 111-148) and the amendments made by such section are repealed, and the Internal Revenue Code of 1986 shall be applied as if such section, and amendments, had never been enacted.

______

SA 3117. Mr. VITTER submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. __01. PRE-POPULATED RETURNS PROHIBITED.

Except to the extent provided in section 6014, 6020, or 6201(d) of the Internal Revenue Code of 1986, the Secretary of the Treasury (or the Secretary's delegate) shall not provide to any person a proposed final return or statement for use by such person to satisfy a filing or reporting requirement under such Code.

______

SA 3118. Mr. PRYOR (for Mr. Boozman (for himself and Mr. Pryor)) submitted an amendment intended to be proposed by Mr. Pryor to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. MAYFLOWER, ARKANSAS, OIL SPILL COMPENSATION

EXCLUDED FROM GROSS INCOME.

For purposes of the Internal Revenue Code of 1986--

(1) the March 29, 2013, pipeline rupture and oil spill in Mayflower, Arkansas, shall be treated as a qualified disaster under section 139(c) of such Code, and

(2) any compensation provided to or for the benefit of a victim of such disaster shall be treated as a qualified disaster relief payment under section 139(b) of such Code.

______

SA 3119. Mr. HARKIN (for himself, Mr. Grassley, Mr. Rockefeller, Mr. Blunt, and Mr. Brown) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. __01. INCREASE IN LIMITATION FOR ALTERNATIVE TAX

LIABILITY FOR SMALL PROPERTY AND CASUALTY

INSURANCE COMPANIES.

(a) In General.--Section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended--

(1) by striking ``every insurance company other than life

(including interinsurers and reciprocal underwriters)'' and inserting ``every property or casualty insurance company'',

(2) in clause (i), by striking ``$1,200,000, and'' and inserting ``$2,100,000,'',

(3) by redesignating clause (ii) as clause (iii),

(4) by inserting after clause (i) the following new clause:

``(ii) more than 50 percent of the gross receipts of such company consist of premiums, and'', and

(5) in the flush matter at the end, by striking ``clause

(ii)'' and inserting ``clause (iii)''.

(b) Inflation Adjustment.--Paragraph (2) of section 831(b) of such Code is amended by adding at the end the following new subparagraph:

``(C) Inflation adjustment.--In the case of any taxable year beginning in a calendar year after 2014, the dollar amount set forth in subparagraph (A)(i) shall 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 such calendar year by substituting

`calendar year 2013' for `calendar year 1992' in subparagraph

(B) thereof.

If the amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.''.

(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

______

SA 3120. Mr. CARPER (for himself and Mrs. Hagan) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 18, between lines 17 and 18, insert the following:

(d) Split 100 Percent Credit for Contract Research Expenses.--Subparagraph (A) of section 41(b)(3) is amended to read as follows:

``(A) In general.--

``(i) Taxpayers paying for contracted research.--The term

`contract research expenses' means 65 percent of any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research.

``(ii) Taxpayers performing contracted research.--In the case of a taxpayer (other than an entity described in subparagraph (C) or (D) or paragraph (5)(C)) who receives amounts from any person (other than an employer of the taxpayer) for qualified research on behalf of such person, the term `contract research expenses' means so much of the qualified research expenses paid or incurred by the taxpayer as does not exceed 35 percent of the amounts so received from such person.

``(iii) Special rules.--For purposes of clause (ii)--

``(I) Trade or business.--The qualified research expenses of the taxpayer shall be determined as if the trade or business of the taxpayer were the conduct of qualified research on behalf of other persons.

``(II) Research not treated as funded research.--Subparagraph (H) of subsection (d)(4) shall not apply.

``(III) Qualified research.--The qualified research expenses of a taxpayer shall be determined as if the conditions of subparagraph (B) of subsection (d)(1) are satisfied if the business component described in subparagraph

(B)(ii) thereof is a business component of either of the taxpayers described in clauses (i) and (ii).

``(iv) Denial of double benefit.--The amount of any in-house research expenses taken into account under this section with respect to a taxpayer described in clause (ii) shall be reduced by the amount of the contract research expenses taken into account under such clause with respect to such taxpayer for the taxable year.''.

(e) Inclusion of Basic Research Payments.--Subsection (b) of section 41 is amended by redesignating paragraph (5), as added by this section, as paragraph (6), and by inserting after paragraph (4) the following new paragraph:

``(5) Basic research payments.--In the case of basic research payments (as defined in subsection (e)(2)) made by the taxpayer, paragraph (3)(A) shall be applied by substituting `100 percent' for `65 percent'.''.

(f) Effective Date.--The amendments made by subsections (d) and (e) shall apply to taxable years beginning after December 31, 2014.

______

SA 3121. Mr. CARPER submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 10, strike line 11 and all that follows through page 18, line 17, and insert the following:

SEC. 111. PERMANENT EXTENSION AND MODIFICATION OF RESEARCH

CREDIT.

(a) Simplified Credit for Qualified Research Expenses.--Subsection (a) of section 41 is amended to read as follows:

``(a) General Rule.--For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to 25 percent of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined.''.

(b) Special Rules and Termination of Base Amount Calculation.--

(1) In general.--Subsection (c) of section 41 is amended to read as follows:

``(c) Special Rule in Case of No Qualified Research Expenses in Any of 3 Preceding Taxable Years.--

``(1) Taxpayers to which subsection applies.--The credit under this section shall be determined under this subsection, and not under subsection (a), if, in any one of the 3 taxable years preceding the taxable year for which the credit is being determined, the taxpayer has no qualified research expenses.

``(2) Credit rate.--The credit determined under this subsection shall be equal to 10 percent of the qualified research expenses for the taxable year.''.

(2) Consistent treatment of expenses.--Subsection (b) of section 41 is amended by adding at the end the following new paragraph:

``(5) Consistent treatment of expenses required.--

``(A) In general.--Notwithstanding whether the period for filing a claim for credit or refund has expired for any taxable year in the 3-taxable-year period taken into account under subsection (a), the qualified research expenses taken into account for such year shall be determined on a basis consistent with the determination of qualified research expenses for the credit year.

``(B) Prevention of distortions.--The Secretary may prescribe regulations to prevent distortions in calculating a taxpayer's qualified research expenses caused by a change in accounting methods used by such taxpayer between the credit year and a year in such 3-taxable-year period.''.

(1) Partial inclusion of pre-acquisition qualified research expenses.--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 a trade or business of another person (hereinafter in this paragraph referred to as the `predecessor') or the major portion of a separate unit of a trade or business of a predecessor, then the amount of qualified research expenses paid or incurred by the acquiring person during the 3 taxable years preceding the taxable year in which the credit under this section is determined shall be increased by--

``(I) for purposes of applying this section for the taxable year in which such acquisition is made, the amount determined under clause (ii), and

``(II) for purposes of applying this section for any taxable year after the taxable year in which such acquisition is made, so much of the qualified research expenses paid or incurred by the predecessor with respect to the acquired trade or business during the portion of the measurement period that is part of the 3-taxable-year period preceding the taxable year for which the credit is determined as is attributable to the portion of such trade or business or separate unit acquired by such person.

``(ii) Amount determined.--The amount determined under this clause is the amount equal to the product of--

``(I) so much of the qualified research expenses paid or incurred by the predecessor with respect to the acquired trade or business during the 3 taxable years before the taxable year in which the acquisition is made as is attributable to the portion of such trade or business or separate unit acquired by the acquiring person, and

``(II) the number of months 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 12.

``(iii) Special rules for coordinating taxable years.--In the case of an acquiring person and a predecessor whose taxable years do not begin on the same date--

``(I) each reference to a taxable year in clauses (i) and

(ii) shall refer to the appropriate taxable year of the acquiring person,

``(II) the qualified research expenses paid or incurred by 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 months of such taxable year, and

``(III) the amount of such qualified research expenses taken into account under clauses (i) and (ii) 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 months occurring during such taxable year.

``(iv) Measurement period.--For purposes of this subparagraph, the term `measurement period' means the taxable year of the acquiring person in which the acquisition is made and the 3 taxable years of the acquiring person preceding such taxable year.''.

(2) Expenses of a predecessor.--Subparagraph (B) of 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 the predecessor during the 3 taxable years preceding such taxable year shall be reduced--

``(i) in the case of the taxable year in which such disposition is made, by an amount equal to the product of--

``(I) the amount of qualified research expenses paid or incurred during such 3 taxable years with respect to the acquired business, and

``(II) the number of days in the period beginning on the date of acquisition (as determined for purposes of subparagraph (A)(ii)(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).''.

(d) Aggregation of Expenditures.--Paragraph (1) of section 41(f), as amended by the American Taxpayer Relief Act of 2012, is amended--

(1) by striking ``of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums,'' in subparagraph (A)(ii) and inserting

``qualified research expenses'', and

(2) by striking ``of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums,'' in subparagraph (B)(ii) and inserting

``qualified research expenses''.

(e) Split 100 Percent Credit for Contract Research Expenses.--Subparagraph (A) of section 41(b)(3) is amended to read as follows:

``(A) In general.--

``(i) Taxpayers paying for contracted research.--The term

`contract research expenses' means 65 percent of any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research.

``(iii) Special rules.--For purposes of clause (ii)--

``(II) Research not treated as funded research.--Subparagraph (H) of subsection (d)(4) shall not apply.

(B)(ii) thereof is a business component of either of the taxpayers described in clauses (i) and (ii).

(f) Inclusion of Basic Research Payments.--Subsection (b) of section 41 is amended by redesignating paragraph (5), as added by this section, as paragraph (6), and by inserting after paragraph (4) the following new paragraph:

``(5) Basic research payments.--

``(A) In general.--In the case of basic research payments made by the taxpayer, paragraph (3)(A) shall be applied by substituting `100 percent' for `65 percent'.

``(B) Basic research payments.--For purposes of this paragraph, the term `basic research payment' means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research, but only if--

``(i) such payment is made pursuant to a written agreement between such corporation and such qualified organization, and

``(ii) except in the case of a payment to a qualified organization described in clause (iii) or (iv) of subparagraph (C), such basic research is to be performed by such qualified organization.

``(C) Qualified organization.--For purposes of this paragraph, the term `qualified organization' means any of the following organizations:

``(i) Educational institutions.--Any educational organization which--

``(I) is an institution of higher education (within the meaning of section 3304(f)), and

``(II) is described in section 170(b)(1)(A)(ii).

``(ii) Certain scientific research organizations.--Any organization not described in clause (i) which--

``(I) is described in section 501(c)(3) and is exempt from tax under section 501(a),

``(II) is organized and operated primarily to conduct scientific research, and

``(III) is not a private foundation.

``(iii) Scientific tax-exempt organizations.--Any organization which--

``(I) is described in section 501(c)(3) (other than a private foundation) or section 501(c)(6),

``(II) is exempt from tax under section 501(a),

``(III) is organized and operated primarily to promote scientific research by qualified organizations described in clause (i) pursuant to written research agreements, and

``(IV) currently expends substantially all of its funds or substantially all of the basic research payments received by it for grants to, or contracts for basic research with, an organization described in clause (i).

``(iv) Certain grant organizations.--Any organization not described in clause (ii) or (iii) which--

``(I) is described in section 501(c)(3) and is exempt from tax under section 501(a) (other than a private foundation),

``(II) is established and maintained by an organization established before July 10, 1981, which meets the requirements of subclause (I),

``(III) is organized and operated exclusively for the purpose of making grants to organizations described in clause

(i) pursuant to written research agreements for purposes of basic research, and

``(IV) makes an election, revocable only with the consent of the Secretary, to be treated as a private foundation for purposes of this title (other than section 4940, relating to excise tax based on investment income).

``(D) Definitions and special rules.--For purposes of this paragraph--

``(i) Basic research.--The term `basic research' means any original investigation for the advancement of scientific knowledge not having a specific commercial objective, except that such term shall not include--

``(I) basic research conducted outside of the United States, and

``(II) basic research in the social sciences, arts, or humanities.

``(ii) Trade or business qualification.--For purposes of applying paragraph (1) to this paragraph, any basic research payments shall be treated as an amount paid in carrying on a trade or business of the taxpayer in the taxable year in which it is paid (without regard to the provisions of paragraph (3)(B)).

``(iii) Certain corporations not eligible.--The term

`corporation' shall not include--

``(I) an S corporation,

``(II) a personal holding company (as defined in section 542), or

``(III) a service organization (as defined in section 414(m)(3)).''.

(g) Permanent Extension.--

(1) Section 41 is amended by striking subsection (h).

(2) Paragraph (1) of section 45C(b) is amended by striking subparagraph (D).

(h) Conforming Amendments.--

(1) Termination of basic research payment calculation.--Section 41 is amended--

(A) by striking subsection (e),

(B) by redesignating subsection (g) as subsection (e), and

(2) Special rules.--

(A) Paragraph (4) of section 41(f) is amended by striking

``and gross receipts''.

(B) Subsection (f) of section 41 is amended by striking paragraph (6).

(3) Cross-references.--

(A) Subparagraph (B) of section 45C(b)(1) is amended--

(i) by striking ``paragraph (3)(A)'' in clause (ii) and inserting ``paragraph (3)(A)(i)'',

(ii) by striking the period at the end of clause (ii) and inserting ``, and'',

(iii) by striking ``and'' at the end of clause (i), and

(iv) by adding at the end the following new clause:

``(iii) by disregarding clauses (ii), (iii), and (iv) of paragraph (3)(A) of such subsection.''.

(B) Paragraph (2) of section 45C(c) is amended by striking

``base period research expenses'' and inserting ``average qualified research expenses''.

(D) Clause (i) of section 170(e)(4)(B) is amended by striking ``subparagraph (A) or subparagraph (B) of section 41(e)(6)'' and inserting ``clause (i) or clause (ii) of section 41(b)(5)(C)''.

(E) Section 280C is amended--

(i) by striking ``or basic research expenses (as defined in section 41(e)(2))'' in subsection (c)(1),

(ii) by striking ``section 41(a)(1)'' in subsection

(c)(2)(A) and inserting ``section 41(a)'', and

(iii) by striking ``or basic research expenses'' in subsection (c)(2)(B).

(F) Clause (i) of section 1400N(l)(7)(B) is amended by striking ``section 41(g)'' and inserting ``section 41(e)''.

(i) Treatment of Research Credit for Certain Startup Companies.--

(1) In general.--Section 41, as amended by subsections (g) and (h), is amended by adding at the end the following new subsection:

``(g) Treatment of Credit for Qualified Small Businesses.--

``(1) In general.--At the election of a qualified small business for any taxable year, section 3111(f) shall apply to the payroll tax credit portion of the credit otherwise determined under subsection (a) for the taxable year and such portion shall not be treated (other than for purposes of section 280C) as a credit determined under subsection (a).

``(2) Payroll tax credit portion.--For purposes of this subsection, the payroll tax credit portion of the credit determined under subsection (a) with respect to any qualified small business for any taxable year is the least of--

``(A) the amount specified in the election made under this subsection,

``(B) the credit determined under subsection (a) for the taxable year (determined before the application of this subsection), or

``(C) in the case of a qualified small business other than a partnership or S corporation, the amount of the business credit carryforward under section 39 carried from the taxable year (determined before the application of this subsection to the taxable year).

``(3) Qualified small business.--For purposes of this subsection--

``(A) In general.--The term `qualified small business' means, with respect to any taxable year--

``(i) a corporation or partnership, if--

``(I) the gross receipts (as determined under the rules of section 448(c)(3), without regard to subparagraph (A) thereof) of such entity for the taxable year is less than

$5,000,000, and

``(II) such entity did not have gross receipts (as so determined) for any taxable year preceding the 5-taxable-year period ending with such taxable year, and

``(ii) any person (other than a corporation or partnership) who meets the requirements of subclauses (I) and (II) of clause (i), determined--

``(I) by substituting `person' for `entity' each place it appears, and

``(II) by only taking into account the aggregate gross receipts received by such person in carrying on all trades or businesses of such person.

``(B) Limitation.--Such term shall not include an organization which is exempt from taxation under section 501.

``(4) Election.--

``(A) In general.--Any election under this subsection for any taxable year--

``(i) shall specify the amount of the credit to which such election applies,

``(ii) shall be made on or before the due date (including extensions) of--

``(I) in the case of a qualified small business which is a partnership, the return required to be filed under section 6031,

``(II) in the case of a qualified small business which is an S corporation, the return required to be filed under section 6037, and

``(III) in the case of any other qualified small business, the return of tax for the taxable year, and

``(iii) may be revoked only with the consent of the Secretary.

``(B) Limitations.--

``(i) Amount.--The amount specified in any election made under this subsection shall not exceed $250,000.

``(ii) Number of taxable years.--A person may not make an election under this subsection if such person (or any other person treated as a single taxpayer with such person under paragraph (5)(A)) has made an election under this subsection for 5 or more preceding taxable years.

``(C) Special rule for partnerships and s corporations.--In the case of a qualified small business which is a partnership or S corporation, the election made under this subsection shall be made at the entity level.

``(5) Aggregation rules.--

``(A) In general.--Except as provided in subparagraph (B), all persons or entities treated as a single taxpayer under subsection (f)(1) shall be treated as a single taxpayer for purposes of this subsection.

``(B) Special rules.--For purposes of this subsection and section 3111(f)--

``(i) each of the persons treated as a single taxpayer under subparagraph (A) may separately make the election under paragraph (1) for any taxable year, and

``(ii) the $250,000 amount under paragraph (4)(B)(i) shall be allocated among all persons treated as a single taxpayer under subparagraph (A) in the same manner as under subparagraph (A)(ii) or (B)(ii) of subsection (f)(1), whichever is applicable.

``(6) Regulations.--The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including--

``(A) regulations to prevent the avoidance of the purposes of the limitations and aggregation rules under this subsection through the use of successor companies or other means,

``(B) regulations to minimize compliance and record-keeping burdens under this subsection, and

``(C) regulations for recapturing the benefit of credits determined under section 3111(f) in cases where there is a subsequent adjustment to the payroll tax credit portion of the credit determined under subsection (a), including requiring amended income tax returns in the cases where there is such an adjustment.''.

(2) Credit allowed against fica taxes.--Section 3111 is amended by adding at the end the following new subsection:

``(f) Credit for Research Expenditures of Qualified Small Businesses.--

``(1) In general.--In the case of a taxpayer who has made an election under section 41(g) for a taxable year, there shall be allowed as a credit against the tax imposed by subsection (a) for the first calendar quarter which begins after the date on which the taxpayer files the return specified in section 41(g)(4)(A)(ii) an amount equal to the payroll tax credit portion determined under section 41(g)(2).

``(2) Limitation.--The credit allowed by paragraph (1) shall not exceed the tax imposed by subsection (a) for any calendar quarter on the wages paid with respect to the employment of all individuals in the employ of the employer.

``(3) Carryover of unused credit.--If the amount of the credit under paragraph (1) exceeds the limitation of paragraph (2) for any calendar quarter, such excess shall be carried to the succeeding calendar quarter and allowed as a credit under paragraph (1) for such quarter.

``(4) Deduction allowed for credited amounts.--The credit allowed under paragraph (1) shall not be taken into account for purposes of determining the amount of any deduction allowed under chapter 1 for taxes imposed under subsection

(a).''.

(j) Credit Allowed Against Alternative Minimum Tax.--Subparagraph (B) of section 38(c)(4) is amended--

(1) by redesignating clauses (ii), (iii), (iv), (v), (vi),

(vii), (viii), and (ix) as clauses (iii), (iv), (v), (vi),

(vii), (viii), (ix), and (x), respectively, and

(2) by inserting after clause (i) the following new clause:

``(ii) the credit determined under section 41 with respect to an eligible small business (as defined in paragraph

(5)(C), after application of rules similar to the rules of paragraph (5)(D)),''.

(k) Technical Corrections.--Section 409 is amended--

(1) by inserting ``, as in effect before the enactment of the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' in subsection (b)(1)(A),

(2) by inserting ``, as in effect before the enactment of the Tax Reform Act of 1984'' after ``relating to the employee stock ownership credit'' in subsection (b)(4),

(3) by inserting ``(as in effect before the enactment of the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' in subsection (i)(1)(A),

(4) by inserting ``(as in effect before the enactment of the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' in subsection (m), and

(5) by inserting ``(as so in effect)'' after ``section 48(n)(1)'' in subsection (m).

(l) Effective Date.--

(1) In general.--Except as provided in paragraphs (2), (3),

(4), and (5), the amendments made by this section shall apply to taxable years beginning after December 31, 2014.

(2) Permanent extension.--The amendments made by subsection

(g) shall apply to amounts paid or incurred after December 31, 2013.

(3) Treatment of research credit for certain startup companies.--The amendments made by subsection (i) shall apply to credits determined for taxable years beginning after December 31, 2013.

(4) Credit allowed against alternative minimum tax.--The amendments made by subsection (j) shall apply to credits determined for taxable years beginning after December 31, 2013, and to carrybacks of such credits.

(5) Technical corrections.--The amendments made by subsection (k) shall take effect on the date of the enactment of this Act.

______

SA 3122. Mr. CARPER (for himself, Mr. Cardin, and Mr. Warner) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 52, strike lines 20 and 21 and insert the following:

(1) In general.--Subparagraph (A) of section 48(a)(3) is amended by striking ``or'' at the end of clause (vi), by striking the comma at the end of clause (vii) and inserting

``, or'', and by inserting after clause (vii) the following new clause:

``(viii) waste heat to power property,''.

(2) 30 percent credit.--Clause (i) of section 48(a)(2)(A) is amended by striking ``and'' at the end of subclause (III) and by inserting after subclause (IV) the following new subclause:

``(V) waste heat to power property, and''.

(3) Waste heat to power property.--Subsection (c) of section 48 is amended by adding at the end the following new paragraph:

``(5) Waste heat to power property.--

``(A) In general.--The term `waste heat to power property' means property--

``(i) comprising a system which generates electricity through the recovery of a qualified waste heat resource, and

``(ii) which is placed in service before January 1, 2016.

``(B) Qualified waste heat resource.--The term `qualified waste heat resource' means--

``(i) exhaust heat or flared gas from an industrial process that does not have, as its primary purpose, the production of electricity, and

``(ii) a pressure drop in any gas for an industrial or commercial process.

``(C) Limitation.--The term `waste heat to power property' shall not include any property comprising a system if such system has a capacity in excess of 50 megawatt.''.

(d) Effective Dates.--

(1) In general.--The amendments made by subsections (a) and

(b) shall take effect on January 1, 2014.

(2) Waste heat to power.--The amendments made by subsection

(c) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

______

SA 3123. Mr. CARPER submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 18, between lines 17 and 18, insert the following:

(d) Enhanced Credit for Highly Innovative Research.--

(1) In general.--Section 41, as amended by this Act, is amended by adding at the end the following new subsection:

``(j) Enhanced Credit for Highly Innovative Research.--

``(1) In general.--In the case of any qualified research expenses that are certified highly innovative research expenses, subsection (a)(1) shall be applied by substituting

`35 percent' for `20 percent'.

``(2) Certified highly innovative research expenses.--For purposes of this subsection--

``(A) In general.--The term `certified highly innovative research expenses' means any qualified research expenses that--

``(i) are paid or incurred during the taxable year for the creation of--

``(I) a qualified new product category, or

``(II) product technology that represents a significant improvement over previously existing product technology, and

``(ii) are certified as provided in subparagraph (D).

``(B) Qualified new product category.--The term `qualified new product category' means a category of product that--

``(i) has not previously been produced by the taxpayer, and

``(ii) incorporates functions that are substantially different from other products previously produced by the taxpayer.

``(C) Significant improvement over previously existing product technology.--Product technology satisfies the requirements of subparagraph (A)(i)(II) if such technology is an enhancement of a product that--

``(i) requires the use of new techniques or design methods to achieve such enhancement, and

``(ii) represents a significant advance in terms of the performance, energy consumption, environmental benefit, public health impact, cost, or size of the product.

``(D) Certification by national science foundation or national institutes of health.--

``(i) In general.--Qualified research expenses shall not be treated as certified highly innovative research expenses for any taxable year unless such expenses, and the project to which they relate, are certified by--

``(I) the National Science Foundation, or

``(II) the National Institutes of Health,

whichever has appropriate jurisdiction over the subject matter to which such expenses relate, as meeting the requirements of subparagraph (A)(i) (and any regulations or guidance issued by the Secretary pursuant to such subparagraph). Such certification shall be provided by the National Science Foundation under the program established by section 111(d)(2) of the EXPIRE Act of 2014, or by the National Institutes of Health under the program established by section 111(d)(3) of such Act, whichever is appropriate, and shall be attached to the return of tax for such taxable year. In no event shall any taxpayer apply for certification to more than one of the entities described in this subparagraph with respect to the same expenses.

``(ii) Advance certification.--

``(I) In general.--The certification of expenses under clause (i) may be made and provided to the taxpayer not more than 3 taxable years before the first taxable year for which the enhanced credit under this subsection will be claimed with respect to such expenses.

``(II) Reapplication.--The National Science Foundation and the National Institutes of Health shall each establish and make publicly available a cap on the number of times a taxpayer who has been denied certification under clause (i) with respect to any qualified research expenses may reapply for certification for such expenses. The cap established by each such entity shall permit not fewer than 1 reapplication with respect to any expenses.

``(iii) Duration of certification.--

``(I) In general.--The certification under clause (i) shall apply to expenses relating to the same project (as identified in such certification) for not more than 7 consecutive taxable years, beginning with the first taxable year for which the enhanced credit under this subsection is claimed with respect to such expenses.

``(II) Supporting documentation.--In the case of a certification that applies for more than 1 taxable year, the Secretary may require the taxpayer to provide such documentation as the Secretary deems necessary to demonstrate that the expenses to which such certification relates continue to meet the requirements of subparagraph (A)(i).

``(iv) Limitation on certifications.--

``(I) In general.--The total dollar amount of expenses which are certified by each entity under clause (i)

(including by means of advance certification under clause

(ii)) as highly innovative research expenses for purposes of credits determined in any taxable year shall not exceed

$2,000,000,000.

``(II) Adjustment for inflation.--In the case of a taxable year beginning after December 31, 2016, the $2,000,000,000 amount in subclause (I) shall be increased by an amount equal to the product of such dollar amount and the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2015' for

`calendar year 1992' in subparagraph (B) thereof.

``(III) Rounding.--If any amount as adjusted under subclause (II) is not a multiple of $1,000, such amount shall be rounded to the next highest multiple of $1,000.''.

(2) Certification by national science foundation as highly innovative research and promotion of enhanced credit.--The National Science Foundation Authorization Act of 2002 (Public Law 107-368) is amended by adding at the end the following:

``SEC. 27. CERTIFICATION AS HIGHLY INNOVATIVE RESEARCH AND

PROMOTION OF ENHANCED CREDIT.

``(a) Certification.--

``(1) In general.--The Director shall establish a program that provides certification of research expenses as highly innovative research expenses for purposes of the enhanced credit for highly innovative research under section 41(j) of the Internal Revenue Code of 1986.

``(2) Application.--A person that desires to have research expenses certified as highly innovative research expenses for purposes of the enhanced credit for highly innovation research under section 41(j) of the Internal Revenue Code of 1986, shall submit to the Director an application containing such request at such time, in such manner, and accompanied by such information as the Director may require.

``(3) Review of submissions.--In carrying out paragraph

(1), the Director shall establish a review process that involves--

``(A) a set group of reviewers from various fields and backgrounds, and

``(B) published criteria, developed in consultation with the Secretary of the Treasury and the Secretary of Commerce, in accordance with the requirements of section 41(j)(2)(A)(i) of the Internal Revenue Code of 1986 and any regulations or guidance issued by the Secretary of the Treasury pursuant to such section.

``(4) Time for review.--A certification under this subsection shall be denied or approved within 120 days of the submission of the application under paragraph (2) (270 days, in the case of an application for advance certification under section 41(j)(2)(D)(ii) of the Internal Revenue Code of 1986).

``(b) Promotion of Enhanced Credit for Highly Innovative Research.--The Director shall post on the website of the National Science Foundation information on the enhanced credit for highly innovative research under section 41(j) of the Internal Revenue Code of 1986, and the process for applying for certification of research as highly innovative research.

``(c) Confidentiality.--The Director and each reviewer described in subsection (a)(3)(A) shall keep confidential any information provided by a person that desires to have research expenses certified as highly innovative research expenses pursuant to this section.''.

(3) Certification by national institutes of health as highly innovative research and promotion of enhanced credit.--Part H of title IV of the Public Health Service Act

(42 U.S.C. 289 et seq.) is amended by adding at the end the following:

``SEC. 498E. CERTIFICATION AS HIGHLY INNOVATIVE RESEARCH AND

PROMOTION OF ENHANCED CREDIT.

``(a) Certification.--

``(1) In general.--The Director of NIH shall establish a program that provides certification of research expenses as highly innovative research expenses for purposes of the enhanced credit for highly innovative research under section 41(j) of the Internal Revenue Code of 1986.

``(2) Application.--A person that desires to have research expenses certified as highly innovative research expenses for purposes of the enhanced credit for highly innovative research under section 41(j) of the Internal Revenue Code of 1986, shall submit to the Director of NIH an application containing such request at such time, in such manner, and accompanied by such information as the Director may require.

``(3) Review of submissions.--In carrying out paragraph

(1), the Director shall establish a review process that involves--

``(A) a set group of reviewers from various fields and backgrounds, and

``(b) Promotion of Enhanced Credit for Highly Innovative Research.--The Director shall post on the website of the National Institutes of Health information on the enhanced credit for highly innovative research under section 41(j) of the Internal Revenue Code of 1986, and the process for applying for certification of research as highly innovative research.

``(c) Confidentiality.--The Director of NIH and each reviewer described in subsection (a)(3)(A) shall keep confidential any information provided by a person that desires to have research expenses certified as highly innovative research expenses pursuant to this section.''.

(4) Effective date.--The amendment made by paragraph (1) shall apply to expenses paid or incurred in taxable years beginning after December 31, 2015.

______

SA 3124. Mr. CARPER (for himself, Ms. Collins, Mr. Cardin, Mr. Menendez, Mr. Brown, Mr. Markey, Mr. Coons, Mr. Schatz, Mr. King, Mr. Whitehouse, Ms. Mikulski, and Mr. Reed) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OFFSHORE WIND FACILITIES

SEC. _01. QUALIFYING OFFSHORE WIND FACILITY CREDIT.

(a) In General.--Section 46 is amended--

(1) by striking ``and'' at the end of paragraph (5),

(2) by striking the period at the end of paragraph (6) and inserting ``, and'', and

(3) by adding at the end the following new paragraph:

``(7) the qualifying offshore wind facility credit.''.

(b) Amount of Credit.--Subpart E of part IV of subchapter A of chapter 1 is amended by inserting after section 48D the following new section:

``SEC. 48E. CREDIT FOR OFFSHORE WIND FACILITIES.

``(a) In General.--For purposes of section 46, the qualifying offshore wind facility credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying offshore wind facility of the taxpayer.

``(b) Qualified Investment.--

``(1) In general.--For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying offshore wind facility.

``(2) Certain qualified progress expenditures rules made applicable.--Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.

``(c) Definitions.--For purposes of this section--

``(1) Qualifying offshore wind facility.--

``(A) In general.--The term `qualifying offshore wind facility' means an offshore facility using wind to produce electricity.

``(B) Offshore facility.--The term `offshore facility' means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of United States, and the outer Continental Shelf of the United States.

``(2) Eligible property.--The term `eligible property' means any property--

``(A) which is--

``(i) tangible personal property, or

``(ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualifying offshore wind facility, and

``(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.

``(d) Qualifying Credit for Offshore Wind Facilities Program.--

``(1) Establishment.--

``(A) In general.--Not later than 180 days after the date of the enactment of this section, the Secretary, in consultation with the Secretary of Energy and the Secretary of the Interior, shall establish a qualifying credit for offshore wind facilities program to consider and award certifications for qualified investments eligible for credits under this section to qualifying offshore wind facility sponsors.

``(B) Limitation.--The total amount of megawatt capacity for offshore facilities with respect to which credits may be allocated under the program shall not exceed 3,000 megawatts.

``(2) Certification.--

``(A) Application period.--Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require beginning on the date the Secretary establishes the program under paragraph (1).

``(B) Period of issuance.--An applicant which receives a certification shall have 5 years from the date of issuance of the certification in order to place the facility in service and if such facility is not placed in service by that time period, then the certification shall no longer be valid.

``(3) Selection criteria.--In determining which qualifying offshore wind facilities to certify under this section, the Secretary shall--

``(A) take into consideration which facilities will be placed in service at the earliest date, and

``(B) take into account the technology of the facility that may lead to reduced industry and consumer costs or expand access to offshore wind.

``(4) Review, additional allocations, and reallocations.--

``(A) Review.--Periodically, but not later than 4 years after the date of the enactment of this section, the Secretary shall review the credits allocated under this section as of the date of such review.

``(B) Additional allocations and reallocations.--The Secretary may make additional allocations and reallocations of credits under this section if the Secretary determines that--

``(i) the limitation under paragraph (1)(B) has not been attained at the time of the review, or

``(ii) scheduled placed-in-service dates of previously certified facilities have been significantly delayed and the Secretary determines the applicant will not meet the timeline pursuant to paragraph (2)(B).

``(C) Additional program for allocations and reallocations.--If the Secretary determines that credits under this section are available for further allocation or reallocation, but there is an insufficient quantity of qualifying applications for certification pending at the time of the review, the Secretary is authorized to conduct an additional program for applications for certification.

``(5) Disclosure of allocations.--The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.

``(e) Denial of Double Benefit.--A credit shall not be allowed under this section with respect to any facility if--

``(1) a credit has been allowed to such facility under section 45 for such taxable year or any prior taxable year,

``(2) a credit has been allowed with respect to such facility under section 46 by reason of section 48(a) or 48C(a) for such taxable or any preceding taxable year, or

``(3) a grant has been made with respect to such facility under section 1603 of the American Recovery and Reinvestment Act of 2009.''.

(1) Section 49(a)(1)(C) is amended--

(A) by striking ``and'' at the end of clause (v),

(B) by striking the period at the end of clause (vi) and inserting ``, and'', and

``(vii) the basis of any property which is part of a qualifying offshore wind facility under section 48E.''.

(2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48D the following new item:

``48E. Credit for offshore wind facilities.''.

(d) Effective Date.--The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

______

SA 3125. Mrs. GILLIBRAND submitted an amendment intended to be proposed by her to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. ABOVE-THE-LINE DEDUCTION FOR CHILD CARE EXPENSES.

(a) In General.--Part VII of subchapter A of chapter 1 is amended--

(1) by redesignating section 224 as section 225, and

(2) by inserting after section 223 the following new section:

``SEC. 224. CHILD CARE DEDUCTION.

``(a) Allowance of Deduction.--In the case of an individual for which there are 1 or more qualifying children with respect to such individual for the taxable year, there shall be allowed as a deduction an amount equal to the employment-related expenses paid by such individual during the taxable year.

``(b) Dollar Limitations.--The amount allowed as a deduction under subsection (a) with respect to the taxpayer for any taxable year shall not exceed--

``(1) $7,000, if there is 1 qualifying child with respect to the taxpayer for such taxable year, or

``(2) $14,000, if there are 2 or more qualifying children with respect to the taxpayer for such taxable year.

``(c) Definitions and Special Rules.--For purposes of this section--

``(1) Qualifying child.--The term `qualifying child' means a dependent of the taxpayer (as defined in section 152(a)(1))--

``(A) who has not attained age 13, or

``(B) who is physically or mentally incapable of caring for himself or herself.

``(2) Employment-related expenses.--The term `employment-related expenses' has the meaning given such term by section 21(b)(2), applied as if the terms `qualifying child' and

`qualifying children,' within the meaning of this section, were substituted for the terms `qualifying individual' and

`qualifying individuals', respectively.

``(3) Special rules.--Rules similar to the rules of paragraphs (1), (2), (3), (4), (5), (6), (9), and (10) of section 21(e) shall apply.

``(d) Denial of Double Benefit.--

``(1) In general.--No deduction shall be allowed under this section for any expense with respect to which a credit is claimed by the taxpayer under section 21.

``(2) Coordination rule.--For coordination with a dependent care assistance program, see section 129(e)(7).

``(e) Termination.--This section shall not apply to any taxable year beginning after December 31, 2015.''.

(b) Deduction Allowed Above-the-Line.--Subsection (a) of section 62 is amended by inserting after paragraph (21) the following new paragraph:

``(22) Child care deduction.--The deduction allowed by section 224.''.

(c) Conforming Amendment.--Subsection (e) of section 213 is amended by inserting ``, or as a deduction under section 224,'' after ``section 21''.

(d) Clerical Amendment.--The table of sections for part VII of subchapter A of chapter 1 is amended by striking the item relating to section 224 and by inserting the following new items:

``Sec. 224. Child care deduction.

``Sec. 225. Cross reference.''.

(e) Effective Date.--The amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after December 31, 2014.

______

SA 3126. Ms. CANTWELL (for herself, Mr. Thune, Mr. Cornyn, Mr. Nelson, Mrs. Murray, and Mr. Enzi) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 8, strike line 19 and all that follows through page 9, line 3 and insert the following:

SEC. 106. PERMANENT EXTENSION OF DEDUCTION FOR STATE AND

LOCAL GENERAL SALES TAXES.

(a) In General.--Subparagraph (I) of section 164(b)(5) is amended by striking ``, and before January 1, 2014''.

(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2013.

______

SA 3127. Ms. CANTWELL (for herself, Mr. Bennet, Ms. Stabenow, Mr. Menendez, Mr. Cardin, Mr. Brown, Mr. Nelson, and Mr. Carper) submitted an amendment intended to be proposed by her to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page _, between lines _ and _, insert the following:

(c) Extension for Solar Energy Facilities.--Section 45(d)(4)(A) is amended by inserting ``or the construction of which begins after December 31, 2013, and before January 1, 2016,'' after ``2006,''.

______

SA 3128. Mr. MARKEY submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. BUILD AMERICA BONDS MADE PERMANENT.

(a) In General.--Subparagraph (B) of section 54AA(d)(1) is amended by inserting ``or during a period beginning on or after the date of the enactment of the EXPIRE Act of 2014,'' after ``January 1, 2011,''.

(b) Reduction in Credit Percentage to Bondholders.--Subsection (b) of section 54AA is amended to read as follows:

``(b) Amount of Credit.--

``(1) In general.--The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is the applicable percentage of the amount of interest payable by the issuer with respect to such date.

``(2) Applicable percentage.--For purposes of paragraph

(1), the applicable percentage shall be determined under the following table:

``In the case of a bond issued during caleThe applicable percentage is:

2009 or 2010......................................................35

2014..............................................................31

2015..............................................................30

2016..............................................................29

2017 and thereafter............................................28.''.

``(3) Application of other rules.--

``(A) In general.--Notwithstanding any other provision of law, a build America bond shall be considered a recovery zone economic development bond (as defined in section 1400U-2) for purposes of application of section 1601 of title I of division B of Public Law 111-5 (26 U.S.C. 54C note).

``(B) Public transportation projects.--Recipients of any financial assistance authorized under this section that funds public transportation projects, as defined in Title 49, United States Code, must comply with the grant requirements described under section 5309 of such title.''.

(d) Extension of Payments to Issuers.--

(1) In general.--Section 6431 is amended--

(A) by inserting ``or during a period beginning on or after the date of the enactment of the EXPIRE Act of 2014,'' after

``January 1, 2011,'' in subsection (a), and

(B) by striking ``before January 1, 2011'' in subsection

(f)(1)(B) and inserting ``during a particular period''.

(2) Conforming amendments.--Subsection (g) of section 54AA is amended--

(A) by inserting ``or during a period beginning on or after the date of the enactment of the EXPIRE Act of 2014,'' after

``January 1, 2011,'', and

(B) by striking ``Qualified Bonds Issued Before 2011'' in the heading and inserting ``Certain Qualified Bonds''.

(e) Reduction in Percentage of Payments to Issuers.--Subsection (b) of section 6431 is amended--

(1) by striking ``The Secretary'' and inserting the following:

``(1) In general.--The Secretary'',

(2) by striking ``35 percent'' and inserting ``the applicable percentage'', and

(3) by adding at the end the following new paragraph:

``(2) Applicable percentage.--For purposes of this subsection, the term `applicable percentage' means the percentage determined in accordance with the following table:

``In the case of a qualified bond issued dThe applicable percentage is:

2009 or 2010......................................................35

2014..............................................................31

2015..............................................................30

2016..............................................................29

2017 and thereafter............................................28.''.

(f) Current Refundings Permitted.--Subsection (g) of section 54AA is amended by adding at the end the following new paragraph:

``(3) Treatment of current refunding bonds.--

``(A) In general.--For purposes of this subsection, the term `qualified bond' includes any bond (or series of bonds) issued to refund a qualified bond if--

``(i) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,

``(ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and

``(iii) the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond.

``(B) Applicable percentage.--In the case of a refunding bond referred to in subparagraph (A), the applicable percentage with respect to such bond under section 6431(b) shall be the lowest percentage specified in paragraph (2) of such section.

``(C) Determination of average maturity.--For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).

``(D) Issuance restriction not applicable.--Subsection

(d)(1)(B) shall not apply to a refunding bond referred to in subparagraph (A).''.

(g) Clarification Related to Levees and Flood Control Projects.--Subparagraph (A) of section 54AA(g)(2) is amended by inserting ``(including capital expenditures for levees and other flood control projects)'' after ``capital expenditures''.

(h) Gross-Up of Payment to Issuers in Case of Sequestration.--In the case of any payment under section 6431(b) of the Internal Revenue Code of 1986 made after the date of the enactment of this Act to which sequestration applies, the amount of such payment shall be increased to an amount equal to--

(1) such payment (determined before such sequestration), multiplied by

(2) the quotient obtained by dividing 1 by the amount by which 1 exceeds the percentage reduction in such payment pursuant to such sequestration.For purposes of this subsection, the term ``sequestration'' means any reduction in direct spending ordered in accordance with a sequestration report prepared by the Director of the Office and Management and Budget pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 or the Statutory Pay-As-You-Go Act of 2010.

(i) Effective Date.--The amendments made by this section shall apply to obligations issued on or after the date of the enactment of this Act.

______

SA 3129. Ms. STABENOW (for herself, Mr. Brown, Mr. Roberts, and Mr. Blunt) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 30, strike line 19 and insert the following:tion 125(c) of such Act).

``(iv) Special maximum increase amount.--In the case of round 4 extension property placed in service by a corporation--

``(I) subparagraph (C)(iii) shall not apply, and

`March 31, 2008' and by substituting `January 1, 2011' for

`January 1, 2006'.''.

______

SA 3130. Mr. PRYOR submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 6, between lines 20 and 21, insert the following:

(b) Increase in Limitation.--

(1) In general.--Section 62(a)(2)(D) is amended by striking

``$250'' and inserting ``$350''.

(2) Inflation adjustment.--Section 62 is amended by adding at the end the following new subsection:

``(f) Inflation Adjustment for Educator Expenses.--

``(1) In general.--In the case of any taxable year beginning in a calendar year after 2014, the $350 amount under subsection (a)(2)(D) 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 such calendar year by substituting

`calendar year 2013' for `calendar year 1992' in subparagraph

(B) thereof.

``(2) Rounding.--If the amount as adjusted under the preceding sentence is not a multiple of $10,, such amount shall be rounded to the next lowest multiple of $10.''.

______

SA 3131. Mr. PRYOR (for himself and Mr. Boozman) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE--OTHER PROVISIONS

SEC. _01. TREATMENT OF TIMBER GAINS.

(a) 2-year Special Rate.--Paragraph (1) of section 1201(b) is amended by striking ``ending after the date'' and all that follows through ``after such date'' and inserting ``beginning after December 31, 2013, and before January 1, 2016''.

(b) Adjustment of Special Rate.--

(1) In general.--Clause (i) of section 1201(b)(1)(B) is amended by striking ``15 percent'' and inserting ``20 percent''.

(2) Conforming amendment.--Section 55(b) is amended by striking paragraph (4).

(d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

______

SA 3132. Mr. KING (for himself, Ms. Collins, Mrs. Shaheen, and Mr. Begich) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE--OTHER PROVISIONS

SEC. __. CREDITS RELATING TO BIOMASS PROPERTY.

(a) Residential Energy-efficient Property Credit for Biomass Fuel Property Expenditures.--

(1) Allowance of credit.--Subsection (a) of section 25D is amended--

(A) by striking ``and'' at the end of paragraph (4),

(B) by striking the period at the end of paragraph (5) and inserting ``, and'', and

``(6) 30 percent of the qualified biomass fuel property expenditures made by the taxpayer during such year.''.

(2) Qualified biomass fuel property expenditures.--Subsection (d) of section 25D is amended by adding at the end the following new paragraph:

``(6) Qualified biomass fuel property expenditure.--

``(A) In general.--The term `qualified biomass fuel property expenditure' means an expenditure for property--

``(i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and

``(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).

``(B) Biomass fuel.--For purposes of this section, the term

`biomass fuel' means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues, plants

(including aquatic plants), grasses, residues, and fibers. Such term includes densified biomass fuels such as wood pellets.''.

(3) Effective date.--The amendments made by this subsection shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2013.

(b) Investment Tax Credit for Biomass Heating Property.--

(1) In general.--Subparagraph (A) of section 48(a)(3) is amended by striking ``or'' at the end of clause (vi), by inserting ``or'' at the end of clause (vii), and by inserting after clause (vii) the following new clause:

``(viii) open-loop biomass (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces which operate at thermal output efficiencies of not less than 65 percent (measured by the higher heating value of the fuel) and which provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat, but only with respect to periods ending before January 1, 2017,''.

(2) 30 percent and 15 percent credits.--

(A) In general.--Subparagraph (A) of section 48(a)(2) is amended--

(i) by redesignating clause (ii) as clause (iii),

(ii) by inserting after clause (i) the following new clause:

``(ii) except as provided in clause (i)(V), 15 percent in the case of energy property described in paragraph

(3)(A)(viii), and'', and

(iii) by inserting ``or (ii)'' after ``clause (i)'' in clause (iii), as so redesignated.

(B) Increased credit for greater efficiency.--Clause (i) of section 48(a)(2)(A) is amended by striking ``and'' at the end of subclause (III) and by inserting after subclause (IV) the following new subclause:

``(V) energy property described in paragraph (3)(A)(viii) which operates at a thermal output efficiency of not less than 80 percent (measured by the higher heating value of the fuel),''.

(3) Effective date.--The amendments made by this subsection shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

______

SA 3133. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE--OTHER PROVISIONS

SEC. _01. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

(a) In General.--Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

``SEC. 30E. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

``(b) National Scenic Trail Conservation Contribution.--For purposes of this section--

``(1) In general.--The term `National Scenic Trail conservation contribution' means any qualified conservation contribution--

``(A) to the extent the qualified real property interest with respect to such contribution includes a National Scenic Trail (or portion thereof) and its trail corridor, and

``(B) with respect to which the taxpayer makes an election under this section.

``(3) Trail corridor.--The term `trail corridor' means so much of the corridor of a trail as is--

``(A) not less than--

``(i) 150 feet wide on each side of such trail, or

``(ii) in the case of an interest in real property of the taxpayer which includes less than 150 feet on either side of such trail, the entire distance with respect to such interest on such side, and

``(B) not greater than 2,640 feet wide.

``(c) Special Rules.--

``(2) Election irrevocable.--An election under this section may not be revoked.

``(3) Denial of double benefit.--No deduction shall be allowed under this chapter with respect to any qualified conservation contribution with respect to which an election is made under this section.

``(d) Limitation Based on Amount of Tax; Carryforward of Unused Credit.--

``(1) Limitation.--The credit allowed under subsection (a) for any taxable year shall not exceed the sum of--

``(A) the taxpayer's regular tax liability (as defined in section 26(b)) for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 30, 30B, 30C, and 30D, plus

``(B) the tax imposed by section 55.

``(2) Carryforward.--

``(A) In general.--If the credit allowable under subsection

(1) In general.--The Secretary of the Interior shall, in consultation with the Secretary of the Treasury, study--

(B) the feasibility and estimated costs and benefits of--

(i) making such credit refundable (in whole or in part), and

(ii) allowing transfer of such credit.

(d) Conforming Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

``30E. National Scenic Trail conservation credit.''.

(e) Effective Date.--The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.

______

SA 3134. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE--OTHER PROVISIONS

SEC. _01. EXTENSION OF TIME PERIOD FOR CONTRIBUTING MILITARY

DEATH GRATUITIES TO ROTH IRAS AND COVERDELL

EDUCATION SAVINGS ACCOUNTS.

(a) In General.--Sections 408A(e)(2)(A) and 530(d)(9)(A) are each amended by striking ``1-year period'' and inserting

``3-year period''.

______

SA 3135. Mr. BENNET (for himself and Mr. Crapo) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE--OTHER PROVISIONS

SEC. _01. FACILITATE WATER LEASING AND WATER TRANSFERS TO

PROMOTE CONSERVATION AND EFFICIENCY.

(a) In General.--Paragraph (12) of section 501(c) is amended by adding at the end the following new subparagraph:

``(I) Treatment of mutual ditch irrigation companies.--

``(i) In general.--In the case of a mutual ditch or irrigation company or like organization, subparagraph (A) shall be applied without taking into account any income received or accrued--

``(I) from the sale, lease, or exchange of fee or other interests in real property, including interests in water,

``(II) from the sale or exchange of stock in a mutual ditch or irrigation company or like organization or contract rights for the delivery or use of water, or

``(III) from the investment of proceeds from sales, leases, or exchanges under subclauses (I) and (II),

except that any income received under subclause (I), (II), or

(III) which is distributed or expended for expenses (other than for operations, maintenance, and capital improvements) of the mutual ditch or irrigation company or like organization shall be treated as nonmember income in the year in which it is distributed or expended. For purposes of the preceding sentence, expenses (other than for operations, maintenance, and capital improvements) include expenses for the construction of conveyances designed to deliver water outside of the mutual ditch or irrigation company or like organization system.

``(ii) Treatment of organizational governance.--In the case of a mutual ditch or irrigation company or like organization, where State law provides that such a company or organization may be organized in a manner that permits voting on a basis which is pro rata to share ownership on corporate governance matters, subparagraph (A) shall be applied without taking into account whether its member shareholders have one vote on corporate governance matters per share held in the corporation. Nothing in this clause shall be construed to create any inference about the requirements of this subsection for companies or organizations not included in this clause.''.

(b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.

______

SA 3136. Mr. KING submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place in the amendment, insert the following:

SEC. __. REQUIREMENTS WITH RESPECT TO MEDICAL DEVICE PRICING.

(a) Prohibition on Confidentiality Clauses With Respect to Pricing.--A medical device manufacturer may not require hospitals or other buyers to sign purchasing agreements that contain confidentiality clauses restricting such hospitals or buyers from revealing to third parties the prices paid for medical devices.

(b) Reporting on Sales Prices.--The Secretary of Health and Human Services shall require medical device manufacturers to submit to such Secretary a quarterly report on the average and median sales prices of covered devices, as defined in section 1128G(e) of the Social Security Act.

______

SA 3137. Mr. NELSON submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE--IDENTITY THEFT AND TAX FRAUD PREVENTION

Subtitle A--Protecting Victims of Tax-related Identity Theft

SEC. _01. EXPEDITED REFUNDS FOR IDENTITY THEFT VICTIMS.

Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall establish a plan of action to reduce the administrative time required to process and resolve cases of identity theft in connection with tax returns, including the issuance of refunds to legitimate taxpayers, to no more than 90 days, on average.

SEC. _02. SINGLE POINT OF CONTACT FOR IDENTITY THEFT VICTIMS.

Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall establish new procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to identity theft has a single point of contact at the Internal Revenue Service throughout the processing of his or her case. The single point of contact shall track the case of the taxpayer from start to finish and coordinate with other specialized units to resolve case issues as quickly as possible.

SEC. _03. ENHANCEMENTS TO IRS PIN PROGRAM.

(a) In General.--The Secretary of the Treasury, or the Secretary's delegate, shall issue a personal identification number to any individual requesting protection from identity theft-related tax fraud after the individual's true identity has been established and verified.

(b) Report.--Not later than 360 days after the date of enactment of this Act, the Secretary of the Treasury shall submit to Congress a report analyzing the effectiveness of the program described in subsection (a) in reducing tax fraud.

SEC. _04. ELECTRONIC FILING OPT OUT.

Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall implement a program under which a person who has filed an identity theft affidavit with the Secretary may elect to prevent the processing of any Federal tax return submitted in an electronic format by a person purporting to be such a person.

SEC. _05. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY THEFT.

(a) In General.--Chapter 77 is amended by adding at the end the following new section:

``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

``If the Secretary determines that there was an unauthorized use of the identity of any taxpayer, the Secretary shall--

``(1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer, and

``(2) if any person is criminally charged by indictment or information relating to such unauthorized use, notify such taxpayer as soon as practicable of such charge.''.

(b) Clerical Amendment.--The table of sections for chapter 77 is amended by adding at the end the following new item:

``Sec. 7529. Notification of suspected identity theft.''.

(c) Effective Date.--The amendments made by this section shall apply to determinations made after the date of the enactment of this Act.

Subtitle B--Shutting Down Abusive Identity Theft and Tax Fraud Schemes

SEC. _11. RESTRICTIONS ON ABILITY TO USE PREPAID CARDS FOR

TAX FRAUD.

(a) Accounts With Elevated Risk of Identity Theft.--

(1) In general.--Not later than 360 days after the date of the enactment of this Act, the Federal primary financial regulatory agencies, in consultation with the Secretary of the Treasury, shall jointly prescribe regulations requiring newly issued deposit or transaction account numbers, as the case may be, to be distinguishable between verified accounts and at-risk accounts.

(2) Definitions.--As used in this section--

(A) the term ``at-risk account'' means any deposit account or transaction account, including accounts associated with a prepaid access arrangement, that is not a verified account;

(B) the term ``primary financial regulatory agency'' has the same meaning as in section 2(12) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301(12)); and

(C) the term ``verified account'' means any deposit account or transaction account in which the identity of the account holder and any prepaid access customer associated with the account is verified by--

(i) customer identification procedures that comply with section 5318(l) of title 31, United States Code; and

(ii) direct review of an original, unexpired government-issued form of identification bearing a photograph or similar safeguard, such as a driver's license or passport.

(b) GAO Audit of Debit Card Issuers To Ensure Compliance With Customer Identification Requirements.--

(1) Review and evaluation.--The Comptroller General of the United States shall review and evaluate the effectiveness of the current Customer Identification Program rules implementing the customer identification program requirements under section 5318(l) of title 31, United States Code, as such rules apply to the prepaid card industry.

(2) Required considerations.--The review and evaluation required under paragraph (1) shall--

(A) consider whether weaknesses in current customer identification programs are contributing to identity theft and financial loss, particularly with respect to tax fraud; and

(B) review whether--

(i) current risk-based standards for customer identification are the best means to prevent criminal use of prepaid cards and provide sufficient guidance and certainty to the sellers and providers of prepaid access;

(ii) current exclusions from customer identification requirements, such as exclusions for government benefit programs, are appropriate; and

(iii) Federal regulatory agencies exercise adequate oversight and supervision of customer identification practices of the prepaid card industry.

(3) Report to congress.--Not later than 360 days after the date of the enactment this Act, the Comptroller General of the United States shall submit to Congress a report--

(A) on the findings of the review and evaluation required under paragraph (1); and

(B) containing any recommendations or proposals for legislative or administrative action to improve the customer identification practices of the prepaid card industry.

SEC. _12. LIMITATION ON MULTIPLE TAX REFUNDS TO THE SAME

ACCOUNT.

(a) In General.--Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall issue regulations that restrict the delivery or deposit of multiple tax refunds from the same tax year to the same individual account or mailing address.

(b) Exception.--The regulation promulgated under subsection

(a) shall provide that the restrictions shall not apply in cases and situations where the Secretary determines there is not a likelihood of tax fraud.

Subtitle C--Adding Critical New Protections to Safeguard Social

Security Numbers

SEC. _21. PROHIBITING THE DISPLAY OF SOCIAL SECURITY ACCOUNT

NUMBERS ON NEWLY ISSUED MEDICARE IDENTIFICATION

CARDS AND COMMUNICATIONS PROVIDED TO MEDICARE

BENEFICIARIES.

(a) In General.--Not later than 2 years after the date of the enactment of this Act, the Secretary of Health and Human Services, in consultation with the Commissioner of Social Security, shall establish and begin to implement procedures to eliminate the unnecessary collection, use, and display of Social Security account numbers of Medicare beneficiaries.

(b) Newly Issued Medicare Cards and Communications Provided to Beneficiaries.--

(1) Newly issued cards.--

(A) In general.--Not later than 4 years after the date of enactment of this Act, the Secretary of Health and Human Services, in consultation with the Commissioner of Social Security, shall ensure that each newly issued Medicare identification card meets the requirements described in subparagraph (B).

(B) Requirements.--

(i) In general.--Subject to clauses (ii) and (iii), the requirements described in this subparagraph are, with respect to a Medicare identification card, that the card does not display or electronically store (in an unencrypted format) a Medicare beneficiary's Social Security account number.

(ii) Exception.--The Secretary may waive the requirements under clause (i) in the case where the health insurance claim number of a beneficiary is the Social Security number of the beneficiary, the beneficiary's spouse, or another individual.

(iii) Use of partial account number.--The Secretary of Health and Human Services, in consultation with the Commissioner of Social Security, may provide for the use of a partial Social Security account number on a Medicare identification card if the Secretary determines that such use does not allow an unacceptable risk of fraudulent use.

(2) Communications provided to beneficiaries.--Not later than 4 years after the date of enactment of this Act, the Secretary of Health and Human Services shall prohibit the display of a Medicare beneficiary's Social Security account number on written or electronic communication provided to the beneficiary unless the Secretary, in consultation with the Commissioner of Social Security, determines that inclusion of Social Security account numbers on such communications is essential for the operation of the Medicare program.

(c) Medicare Beneficiary Defined.--In this section, the term ``Medicare beneficiary'' means an individual entitled to, or enrolled for, benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.) or enrolled for benefits under part B of such title (42 U.S.C. 1395j et seq.).

(d) Conforming Amendments.--

(1) Reference in the social security act.--Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 405(c)(2)(C)) is amended--

(A) by moving clause (x), as added by section 1414(a)(2) of the Patient Protection and Affordable Care Act (Public Law 111-148), 6 ems to the left;

(B) by redesignating clause (x), as added by section 2(a)(1) of the Social Security Number Protection Act of 2010

(42 U.S.C. 1305 note), as clause (xii); and

``(xiii) Subject to the EXPIRE Act of 2014, social security account numbers shall not be displayed on Medicare identification cards or on communications provided to Medicare beneficiaries.''.

(2) Access to information.--Section 205(r) of the Social Security Act (42 U.S.C. 405(r)) is amended by adding at the end the following new paragraph:

``(10) To prevent and identify fraudulent activity, the Commissioner shall upon the request of the Attorney General or upon the request of the Secretary of Health and Human Services enter into a reimbursable agreement with the Attorney General or the Secretary to provide information collected under paragraph (1) if--

``(A) the requirements of subparagraphs (A) and (B) of paragraph (3) are met; and

``(B) such agreement includes appropriate provisions to protect the confidentiality of information provided by the Commissioner under such agreement.''.

(e) Pilot Program.--

(1) Establishment.--The Secretary shall establish a pilot program utilizing smart card technology to evaluate--

(A) the applicability of smart card technology to the Medicare program under title XVIII of the Social Security Act

(42 U.S.C. 1395 et seq.), including the applicability of such technology to Medicare beneficiaries or Medicare providers; and

(B) whether such cards would be effective in preventing fraud under the Medicare program.

(2) Implementation.--

(A) Initial implementation.--The Secretary shall implement the pilot program under this subsection not later than 1 year after the date of enactment of this Act.

(B) Scope and duration.--The Secretary shall conduct the pilot program--

(i) in not less than 2 States; and

(ii) for a period of not less than 180 days or more than 2 years.

(3) Report.--Not later than 12 months after the completion of the pilot program under this subsection, the Secretary shall submit to the appropriate committees of Congress and make available to the public a report that includes the following:

(A) A summary of the pilot program and findings, including--

(i) the costs or savings to the Medicare program as a result of the implementation of the pilot program;

(ii) whether the use of smart card technology resulted in improvements in the quality of care provided to Medicare beneficiaries under the pilot program; and

(iii) whether such technology was useful in preventing or detecting fraud, waste, and abuse in the Medicare program.

(B) Recommendations regarding whether the use of smart card technology should be expanded under the Medicare program.

(4) Definitions.--In this subsection:

(A) Medicare provider.--The term ``Medicare provider'' includes a provider of services (as defined in section 1861(u) of the Social Security Act (42 U.S.C. 1395x(u))) and a supplier (as defined in section 1861(d) of such Act (42 U.S.C. 1395x(d))).

(B) Secretary.--The term ``Secretary'' means the Secretary of Health and Human Services.

(C) Smart card.--The term ``smart card'' means identification used by a Medicare beneficiary or a Medicare provider that includes anti-fraud attributes. Such a card--

(i) may rely on existing commercial data transfer networks or on a network of proprietary card readers or databases; and

(ii) may include--

(I) cards using technology adapted from the financial services industry;

(II) cards containing individual biometric identification, provided that such identification is encrypted and not contained in any central database;

(III) cards adapting technology and processes utilized in the TRICARE program under chapter 55 of title 10, United States Code, or by the Veterans' Administration; or

(IV) such other technology as the Secretary determines appropriate.

SEC. _22. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF

SOCIAL SECURITY NUMBERS.

(a) Prohibition.--

(1) In general.--Chapter 47 of title 18, United States Code, is amended by inserting after section 1028A the following:

``Sec. 1028B. Prohibition of the display, sale, or purchase of Social Security numbers

``(a) Definitions.--In this section:

``(1) Display.--The term `display' means to intentionally communicate or otherwise make available (on the Internet or in any other manner) to the general public an individual's Social Security number.

``(2) Person.--The term `person' means any individual, partnership, corporation, trust, estate, cooperative, association, or any other entity.

``(3) Purchase.--The term `purchase' means providing directly or indirectly, anything of value in exchange for a Social Security number.

``(4) Sale.--The term `sale' means obtaining, directly or indirectly, anything of value in exchange for a Social Security number.

``(5) State.--The term `State' means any State of the United States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa, and any territory or possession of the United States.

``(b) Limitation on Display.--No person may display any individual's Social Security number to the general public without the affirmatively expressed consent of the individual.

``(c) Limitation on Sale or Purchase.--Except as otherwise provided in this section, no person may sell or purchase any individual's Social Security number without the affirmatively expressed consent of the individual.

``(d) Prerequisites for Consent.--In order for consent to exist under subsection (b) or (c), the person displaying or seeking to display, selling or attempting to sell, or purchasing or attempting to purchase, an individual's Social Security number shall--

``(1) inform the individual of the general purpose for which the number will be used, the types of persons to whom the number may be available, and the scope of transactions permitted by the consent; and

``(2) obtain the affirmatively expressed consent

(electronically or in writing) of the individual.

``(e) Exceptions.--Nothing in this section shall be construed to prohibit or limit the display, sale, or purchase of a Social Security number--

``(1) required, authorized, or excepted under any Federal law;

``(2) for a public health purpose, including the protection of the health or safety of an individual in an emergency situation;

``(3) for a national security purpose;

``(4) for a law enforcement purpose, including the investigation of fraud and the enforcement of a child support obligation;

``(5) if the display, sale, or purchase of the number is for a use occurring as a result of an interaction between businesses, governments, or business and government

(regardless of which entity initiates the interaction), including, but not limited to--

``(A) the prevention of fraud (including fraud in protecting an employee's right to employment benefits);

``(B) the facilitation of credit checks or the facilitation of background checks of employees, prospective employees, or volunteers;

``(C) the retrieval of other information from other businesses, commercial enterprises, government entities, or private nonprofit organizations; or

``(D) when the transmission of the number is incidental to, and in the course of, the sale, lease, franchising, or merger of all, or a portion of, a business;

``(6) if the transfer of such a number is part of a data matching program involving a Federal, State, or local agency; or

``(7) if such number is required to be submitted as part of the process for applying for any type of Federal, State, or local government benefit or program;

except that, nothing in this subsection shall be construed as permitting a professional or commercial user to display or sell a Social Security number to the general public.

``(f) Limitation.--Nothing in this section shall prohibit or limit the display, sale, or purchase of Social Security numbers as permitted under title V of the Gramm-Leach-Bliley Act, or for the purpose of affiliate sharing as permitted under the Fair Credit Reporting Act, except that no entity regulated under such Acts may make Social Security numbers available to the general public, as may be determined by the appropriate regulators under such Acts. For purposes of this subsection, the general public shall not include affiliates or unaffiliated third-party business entities as may be defined by the appropriate regulators.''.

(2) Conforming amendment.--The chapter analysis for chapter 47 of title 18, United States Code, is amended by inserting after the item relating to section 1028 the following:

``1028B. Prohibition of the display, sale, or purchase of Social

Security numbers.''.

(b) Study; Report.--

(1) In general.--The Attorney General shall conduct a study and prepare a report on all of the uses of Social Security numbers permitted, required, authorized, or excepted under any Federal law. The report shall include a detailed description of the uses allowed as of the date of enactment of this Act, the impact of such uses on privacy and data security, and shall evaluate whether such uses should be continued or discontinued by appropriate legislative action.

(2) Report.--Not later than 1 year after the date of enactment of this Act, the Attorney General shall report to Congress findings under this subsection. The report shall include such recommendations for legislation based on criteria the Attorney General determines to be appropriate.

(c) Effective Date.--The amendments made by this section shall take effect on the date that is 30 days after the date on which the final regulations promulgated under section 1028B of title 18, United States Code, are published in the Federal Register.

SEC. _23. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL

SECURITY NUMBER.

(a) Prohibition of Wrongful Use as Personal Identification Number.--No person may obtain any individual's Social Security number for purposes of locating or identifying an individual with the intent to physically injure, harm, or use the identity of the individual for any illegal purpose.

(b) Criminal Sanctions.--Section 208(a) of the Social Security Act (42 U.S.C. 408(a)) is amended--

(1) in paragraph (8), by inserting ``or'' after the semicolon; and

(2) by inserting after paragraph (8) the following:

``(9) except as provided in subsections (e) and (f) of section 1028B of title 18, United States Code, knowingly and willfully displays, sells, or purchases (as those terms are defined in section 1028B(a) of title 18, United States Code) any individual's Social Security account number without having met the prerequisites for consent under section 1028B(d) of title 18, United States Code; or

``(10) obtains any individual's Social Security number for the purpose of locating or identifying the individual with the intent to injure or to harm that individual, or to use the identity of that individual for an illegal purpose;''.

SEC. _24. CIVIL ACTIONS AND CIVIL PENALTIES.

(a) Civil Action in State Courts.--

(1) In general.--Any individual aggrieved by an act of any person in violation of this Act or any amendments made by this Act may, if otherwise permitted by the laws or rules of the court of a State, bring in an appropriate court of that State--

(A) an action to enjoin such violation;

(B) an action to recover for actual monetary loss from such a violation, or to receive up to $500 in damages for each such violation, whichever is greater; or

It shall be an affirmative defense in any action brought under this paragraph that the defendant has established and implemented, with due care, reasonable practices and procedures to effectively prevent violations of the regulations prescribed under this Act. If the court finds that the defendant willfully or knowingly violated the regulations prescribed under this subsection, the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under subparagraph (B).

(2) Statute of limitations.--An action may be commenced under this subsection not later than the earlier of--

(A) 5 years after the date on which the alleged violation occurred; or

(B) 3 years after the date on which the alleged violation was or should have been reasonably discovered by the aggrieved individual.

(3) Nonexclusive remedy.--The remedy provided under this subsection shall be in addition to any other remedies available to the individual.

(b) Civil Penalties.--

(1) In general.--Any person who the Attorney General determines has violated any section of this Act or of any amendments made by this Act shall be subject, in addition to any other penalties that may be prescribed by law--

(A) to a civil penalty of not more than $5,000 for each such violation; and

(B) to a civil penalty of not more than $50,000, if the violations have occurred with such frequency as to constitute a general business practice.

(2) Determination of violations.--Any willful violation committed contemporaneously with respect to the Social Security numbers of 2 or more individuals by means of mail, telecommunication, or otherwise, shall be treated as a separate violation with respect to each such individual.

(3) Enforcement procedures.--The provisions of section 1128A of the Social Security Act (42 U.S.C. 1320a-7a), other than subsections (a), (b), (f), (h), (i), (j), (m), and (n) and the first sentence of subsection (c) of such section, and the provisions of subsections (d) and (e) of section 205 of such Act (42 U.S.C. 405) shall apply to a civil penalty action under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a) of such Act (42 U.S.C. 1320a-7a(a)), except that, for purposes of this paragraph, any reference in section 1128A of such Act (42 U.S.C. 1320a-7a) to the Secretary shall be deemed to be a reference to the Attorney General.

Subtitle D--Strengthening Laws and Improving Enforcement Against Tax-

related Identity Theft

SEC. _31. CRIMINAL PENALTY FOR USING A FALSE IDENTITY IN

CONNECTION WITH TAX FRAUD.

(a) In General.--Section 7206 is amended--

(1) by striking ``Any person'' and inserting the following:

``(a) In General.--Any person'', and

(2) by adding at the end the following new subsection:

``(b) Use of False Identity.--Any person who willfully misappropriates another person's taxpayer identity (as defined in section 6103(b)(6)) for the purpose of making any list, return, account, statement, or other document submitted to the Secretary under the provisions of this title shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $250,000 ($500,000 in the case of a corporation) or imprisoned not more than 5 years, or both, together with the costs of prosecution.''.

(b) Aggravated Identity Theft.--Section 1028A(c) of title 18, United States Code, is amended by striking ``or'' at the end of paragraph (10), by striking the period at the end of paragraph (11) and inserting ``; or'', and by adding at the end the following new paragraph:

``(12) section 7206(b) of the Internal Revenue Code of 1986

(relating to use of false identity in connection with tax fraud).''.

(c) Effective Date.--The amendments made by this section shall apply to offenses committed after the date of the enactment of this Act.

SEC. _32. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE OF

INFORMATION BY PREPARERS OF RETURNS.

(a) In General.--Section 6713(a) is amended--

(1) by striking ``$250'' and inserting ``$1,000'', and

(2) by striking ``$10,000'' and inserting ``$50,000''.

(b) Criminal Penalty.--Section 7216(a) is amended by striking ``$1,000'' and inserting ``$100,000''.

(c) Effective Date.--The amendments made by this section shall apply to disclosures or uses after the date of the enactment of this Act.

SEC. _33. AUTHORITY TO TRANSFER INTERNAL REVENUE SERVICE

APPROPRIATIONS TO USE FOR TAX FRAUD

ENFORCEMENT.

For any fiscal year, the Commissioner of Internal Revenue may transfer not more than $10,000,000 to the ``Enforcement'' account of the Internal Revenue Service from amounts appropriated to other Internal Revenue Service accounts. Any amounts so transferred shall be used solely for the purposes of preventing and resolving potential cases of tax fraud.

SEC. _34. LOCAL LAW ENFORCEMENT LIAISON.

(a) Establishment.--The Commissioner of Internal Revenue shall establish within the Criminal Investigation Division of the Internal Revenue Service the position of Local Law Enforcement Liaison.

(b) Duties.--The Local Law Enforcement Liaison shall serve as the primary source of contact for State and local law enforcement authorities with respect to tax-related identity theft and other tax fraud matters, having duties that shall include--

(1) receiving information from State and local law enforcement authorities;

(2) responding to inquiries from State and local law enforcement authorities;

(3) administering authorized information-sharing initiatives with State or local law enforcement authorities and reviewing the performance of such initiatives;

(4) ensuring any information provided through authorized information-sharing initiatives with State or local law enforcement authorities is used only for the prosecution of identity theft-related crimes and not re-disclosed to third parties; and

(5) any other duties as delegated by the Commissioner of Internal Revenue.

SEC. _35. EXTEND INTERNAL REVENUE SERVICE AUTHORITY TO

REQUIRE TRUNCATED SOCIAL SECURITY NUMBERS ON

FORM W-2.

(a) In General.--Paragraph (2) of section 6051(a) is amended by striking ``his social security number'' and inserting ``an identifying number for the employee''.

(b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

SEC. _36. CLARIFICATION WITH RESPECT TO REGULATION OF FEDERAL

TAX RETURN PREPARERS.

(a) In General.--Subparagraph (D) of section 330(a)(2) of title 31, United States Code, is amended by inserting ``and in preparing and filing their tax returns'' before the period.

(b) Effective Date.--

(1) In general.--The amendment made by this section applies to regulations promulgated before, on, or after the date of the enactment of this Act.

(2) Effect on existing proceedings.--Nothing in this section shall be construed to create a negative inference with respect to the application of section 330 of title 31, United States Code, or the authority of the Secretary of the Treasury under such section, with respect to regulations promulgated before the date of the enactment of this Act.

SEC. _37. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES

ACCOUNTS.

(a) In General.--The Commissioner of Internal Revenue shall establish a program to verify the identity of any individual opening an e-Services account with the Internal Revenue Service before such individual is able to use the e-Services tools.

(b) Report.--The Commissioner of Internal Revenue shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, not later than 1 year after the date of the enactment of this Act, on any further legislative recommendations to prevent fraud relating to the Internal Revenue Service e-Services tools, including an authorized e-file provider program.

Subtitle E--Accelerating Transition to a Real-time Tax System That

Protects Taxpayers and Reduces Fraud

SEC. _41. IMPROVEMENT IN ACCESS TO INFORMATION IN THE

NATIONAL DIRECTORY OF NEW HIRES FOR TAX

ADMINISTRATION PURPOSES.

(a) In General.--Paragraph (3) of section 453(i) of the Social Security Act (42 U.S.C. 653(i)) is amended to read as follows:

``(3) Administration of federal tax laws.--The Secretary of the Treasury shall have access to the information in the National Directory of New Hires for purposes of administering the Internal Revenue Code of 1986.''.

(b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

SEC. _42. PLAN OF ACTION FOR TRANSITIONING TO A REAL-TIME TAX

SYSTEM.

Not later than 270 days after the date of enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall submit to Congress a report analyzing and outlining options and potential timelines for moving toward a tax system that reduces burdens on taxpayers and decreases tax fraud through real-time information matching.

______

SA 3138. Ms. CANTWELL (for herself and Mr. Pryor) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. ___. DEDUCTIBILITY OF CERTAIN 2014 DISASTER LOSSES.

(a) In General.--Section 165(h), as amended by this Act, is amended by inserting after paragraph (2) the following:

``(3) Special rule for losses in federally declared disasters.--

``(A) In general.--If an individual has a net disaster loss for any taxable year, the amount determined under paragraph

(2)(A)(ii) shall be the sum of--

``(i) such net disaster loss, and

``(ii) so much of the excess referred to in the matter preceding clause (i) of paragraph (2)(A) (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual.

``(B) Net disaster loss.--For purposes of subparagraph (A), the term `net disaster loss' means the excess of--

``(i) the personal casualty losses--

``(I) attributable to a federally declared disaster occurring during calendar year 2014, and

``(II) occurring in a disaster area, over

``(ii) personal casualty gains.

``(C) Federally declared disaster and area.--For purposes of this paragraph, the terms `federally declared disaster' and `disaster area' have the meanings given to such terms by subsection (i)(5).''.

(b) Deduction Allowed in Computing Adjusted Gross Income.--Subparagraph (A) of section 165(h)(5) is amended to read as follows:

``(A) Certain personal casualty losses allowable in computing adjusted gross income.--

``(i) Losses not in excess of personal casualty gains.--In any case to which paragraph (2)(A) applies, the deduction for personal casualty losses for any taxable year shall be treated as a deduction allowable in computing adjusted gross income to the extent such losses do not exceed the personal casualty gains for the taxable year.

``(ii) Net disaster losses.--In any case to which paragraph

(3) applies, the portion of the deduction for personal casualty losses for any taxable year which is properly allocable to the net disaster loss for the taxable year shall be treated as a deduction allowable in computing adjusted gross income.''.

(c) Effective Date.--The amendments made by this section shall apply to federally declared disasters occurring after December 31, 2013, and to losses attributable to such disasters.

______

SA 3139. Mr. SANDERS submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 42, strike line 3 and all that follows through page 43, line 12.

______

SA 3140. Ms. CANTWELL (for herself, Mr. Bennet, Ms. Stabenow, Mr. Cardin, Mr. Menendez, Mr. Brown, Mr. Nelson, and Mr. Carper) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 52, between lines 19 and 20, insert the following:

(c) Extension for Solar Energy Facilities.--Section 45(d)(4)(A) is amended by inserting ``or the construction of which begins after December 31, 2013, and before January 1, 2016,'' after ``2006,''.

______

SA 3141. Mr. LEAHY submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. _01. CREDIT FOR INSTALLATION OF SPRINKLERS AND ELEVATORS

IN HISTORIC BUILDINGS.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36B the following new section:

``SEC. 36C. HISTORIC BUILDING EXPENSES.

``(a) In General.--There shall be allowed a credit against the tax imposed by this subtitle for the taxable year an amount equal to 50 percent of the qualified historic building expenses paid or incurred by the taxpayer during such taxable year.

``(b) Limitation.--The credit allowed under subsection (a) with respect to any taxpayer for any taxable year shall not exceed $50,000.

``(c) Qualified Historic Building Expenses.--For purposes of this section--

``(1) In general.--The term `qualified historic building expenses' means amounts paid or incurred to install in a certified historic structure an elevator system or a sprinkler system that meets the requirements found in the most recent edition of NFPA 13: Standard for the Installation of Sprinkler Systems.

``(2) National historic landmarks.--In the case of a certified historic structure that is designated as a National Historic Landmark in accordance with section 101(a) of the National Historic Preservation Act (16 U.S.C. 470a(a)) and that is open to the public, the term `qualified historic building expenses' shall not include an expense described in paragraph (1), unless the installation of property described in such paragraph meets the requirements for a certified rehabilitation under section 47(c)(2)(C).

``(3) Certified historic structure.--The term `certified historic structure' has the meaning given such term in section 47(c)(3), except that such term shall not include any structure which is a single-family residence.''.

(b) Conforming Amendments.--

(1) Section 1324 of title 31, United States Code, is amended by inserting ``, 36C'' after ``, 36B''.

(2) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36B the following new item:

``Sec. 36C. Historic building expenses.''.

(c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.

______

SA 3142. Mr. COBURN submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 115.

______

SA 3143. Mr. MORAN (for himself, Ms. Heitkamp, Mr. Thune, Mr. Heinrich, Mr. Begich, Mr. Inhofe, Mr. Bennet, Ms. Stabenow, Mr. Enzi, Mr. Hoeven, Mr. Udall of New Mexico, Mr. Johnson of South Dakota, Mr. Udall of Colorado, Mrs. Murray, Mr. Crapo, Mr. Tester, Mr. Walsh, and Ms. Murkowski) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--TRIBAL GENERAL WELFARE EXCLUSION

SEC. _01. SHORT TITLE.

This title may be cited as the ``Tribal General Welfare Exclusion Act of 2013''.

SEC. _02. INDIAN GENERAL WELFARE BENEFITS.

(a) In General.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section:

``SEC. 139E. INDIAN GENERAL WELFARE BENEFITS.

``(a) In General.--Gross income does not include the value of any Indian general welfare benefit.

``(b) Indian General Welfare Benefit.--For purposes of this section, the term `Indian general welfare benefit' includes any payment made or services provided to or on behalf of a member of an Indian tribe (or any spouse or dependent of such a member) pursuant to an Indian tribal government program, but only if--

``(1) the program is administered under specified guidelines and does not discriminate in favor of members of the governing body of the tribe, and

``(2) the benefits provided under such program--

``(A) are available to any tribal member who meets such guidelines,

``(B) are for the promotion of general welfare,

``(C) are not lavish or extravagant, and

``(D) are not compensation for services.

``(c) Definitions and Special Rules.--For purposes of this section--

``(1) Indian tribal government.--For purposes of this section, the term `Indian tribal government' includes any agencies or instrumentalities of an Indian tribal government and any Alaska Native regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

``(2) Dependent.--The term `dependent' has the meaning given such term by section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B).

``(3) Lavish or extravagant.--The Secretary shall, in consultation with the Tribal Advisory Committee (as established under section 3(a) of the Tribal General Welfare Exclusion Act of 2013), establish guidelines for what constitutes lavish or extravagant benefits with respect to Indian tribal government programs.

``(4) Establishment of tribal government program.--A program shall not fail to be treated as an Indian tribal government program solely by reason of the program being established by tribal custom or government practice.

``(5) Ceremonial activities.--Any items of cultural significance, reimbursement of costs, or cash honorarium for participation in cultural or ceremonial activities for the transmission of tribal culture shall not be treated as compensation for services.''.

(b) Conforming Amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item:

``Sec. 139E. Indian general welfare benefits.''.

(c) Statutory Construction.--Ambiguities in section 139E of the Internal Revenue Code of 1986, as added by this section, shall be resolved in favor of Indian tribal governments and deference shall be given to Indian tribal governments for the programs administered and authorized by the tribe to benefit the general welfare of the tribal community.

(d) Effective Date.--

(1) In general.--The amendments made by this section shall apply to taxable years for which the period of limitation on refund or credit under section 6511 of the Internal Revenue Code of 1986 has not expired.

(2) One-year waiver of statute of limitations.--If the period of limitation on a credit or refund resulting from the amendments made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period.

SEC. _03. TRIBAL ADVISORY COMMITTEE.

(a) Establishment.--The Secretary of the Treasury shall establish a Tribal Advisory Committee (hereinafter in this subsection referred to as the ``Committee'').

(b) Duties.--

(1) Implementation.--The Committee shall advise the Secretary on matters relating to the taxation of Indians.

(2) Education and training.--The Secretary shall, in consultation with the Committee, establish and require--

(A) training and education for internal revenue field agents who administer and enforce internal revenue laws with respect to Indian tribes on Federal Indian law and the Federal Government's unique legal treaty and trust relationship with Indian tribal governments, and

(B) training of such internal revenue field agents, and provision of training and technical assistance to tribal financial officers, about implementation of this Act and the amendments made thereby.

(1) In general.--The Committee shall be composed of 7 members appointed as follows:

(A) Three members appointed by the Secretary of the Treasury.

(B) One member appointed by the Chairman, and one member appointed by the Ranking Member, of the Committee on Ways and Means of the House of Representatives.

(C) One member appointed by the Chairman, and one member appointed by the Ranking Member, of the Committee on Finance of the Senate.

(2) Term.--

(A) In general.--Except as provided in subparagraph (B), each member's term shall be 4 years.

(B) Initial staggering.--The first appointments made by the Secretary under paragraph (1)(A) shall be for a term of 2 years.

SEC. 4. OTHER RELIEF FOR INDIAN TRIBES.

(a) Temporary Suspension of Examinations.--The Secretary of the Treasury shall suspend all audits and examinations of Indian tribal governments and members of Indian tribes (or any spouse or dependent of such a member), to the extent such an audit or examination relates to the exclusion of a payment or benefit from an Indian tribal government under the general welfare exclusion, until the education and training prescribed by this Act is completed. The running of any period of limitations under section 6501 of the Internal Revenue Code of 1986 with respect to Indian tribal governments and members of Indian tribes shall be suspended during the period during which audits and examinations are suspended under the preceding sentence.

(b) Waiver of Penalties and Interest.--The Secretary of the Treasury may waive any interest and penalties imposed under such Code on any Indian tribal government or member of an Indian tribe (or any spouse or dependent of such a member) to the extent such interest and penalties relate to excluding a payment or benefit from gross income under the general welfare exclusion.

(1) Indian tribal government.--The term ``Indian tribal government'' shall have the meaning given such term by section 139E of the Internal Revenue Code of 1986, as added by this Act.

(2) Indian tribe.--The term ``Indian tribe'' shall have the meaning given such term by section 45A(c)(6) of such Code.

______

SA 3144. Mr. BARRASSO (for himself, Mr. Hatch, Mr. Roberts, Mr. Enzi, Mr. Isakson, Mr. McConnell, Ms. Ayotte, Ms. Collins, Mr. Alexander, and Mr. Crapo) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. ____. PROTECTING PATIENTS FROM HIGHER PREMIUMS.

(a) In General.--Subsection (a)(1) of section 9010 of the Patient Protection and Affordable Care Act (Public Law 111-148), as amended by section 10905 of such Act and by section 1406 of the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), is amended by striking ``2013'' and inserting ``2015''.

(b) Conforming Amendments.--

(1) Subsection (j) of section 9010 of the Patient Protection and Affordable Care Act (Public Law 111-148), as amended by section 10905 of such Act and by section 1406 of the Health Care and Education Reconciliation Act of 2010

(Public Law 111-152), is amended by striking ``2013'' and inserting ``2015''.

(2) Subsection (e) of section 9010 of the Patient Protection and Affordable Care Act

(Public Law 111-148), as amended by section 10905 of such Act and by section 1406 of the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), is amended--

(A) in paragraph (1)--

(i) by striking ``2019'' in the heading and inserting

``2021'',

(ii) by striking ``2019'' and inserting ``2021'',

(iii) by striking ``2018'' in the last line of the table and inserting ``2020'',

(iv) by striking ``2017'' in the 4th line of the table and inserting ``2019'',

(v) by striking ``2016'' in the 3rd line of the table and inserting ``2018'',

(vi) by striking ``2015'' in the 2nd line of the table and inserting ``2017'', and

(vii) by striking ``2014'' in the 1st line of the table and inserting ``2016'', and

(B) in paragraph (2)--

(i) by striking ``2018'' in the heading and inserting

``2020'', and

(ii) by striking ``2018'' and inserting ``2020''.

(c) Effective Date.--The amendments made by this section shall take effect as if included in section 9010 of the Patient Protection and Affordable Care Act.

______

SA 3145. Mr. FLAKE (for himself, Mr. Alexander, Mr. McCain, Mr. Lee, Mr. McConnell, and Mr. Coburn) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 52, between lines 19 and 20, insert the following:

(1) In general.--The following provisions of section 45(d), as amended by subsection (a), are each amended by striking

``and the construction of which begins before'' each place it appears and inserting ``and before'':

(A) Paragraph (1).

(B) Paragraph (2)(A)(i).

(D) Paragraph (6).

(E) Paragraph (7).

(F) Paragraph (9)(A)(ii).

(G) Paragraph (11)(B).

(2) Open-loop biomass facilities.--Clause (ii) of section 45(d)(3)(A) is amended by striking ``the construction of which begins before'' and inserting ``is originally placed in service before''.

(3) Geothermal facilities.--Paragraph (4) of section 45(d), as amended by subsection (a), is amended by striking ``and which--'' and all that follows and inserting ``and before--

``(A) January 1, 2006, in the case of a facility using solar energy, and

``(B) January 1, 2016, in the case of a facility using geothermal energy.''.

______

SA 3146. Mr. FLAKE (for himself, Mr. Alexander, Mr. Toomey, Mr. McCain, Mr. Lee, Mr. McConnell, and Mr. Coburn) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 52, strike line 1 and all that follows through line 21.

______

SA 3147. Mr. CORNYN (for himself, Mr. Coats, Mr. Isakson, and Mr. Burr) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--ECONOMIC GROWTH AND JOBS PROTECTION

SEC. _01. SHORT TITLE.

This title may be cited as the ``Economic Growth and Jobs Protection Act of 2010''.

SEC. _02. REPEAL OF UNEARNED INCOME MEDICARE CONTRIBUTION.

(a) In General.--Chapter 2A is repealed.

(b) Conforming Amendment.--The table of chapters for subtitle A of chapter 1 is amended by striking the item relating to chapter 2A.

______

SA 3148. Mr. CORNYN submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--TAX TRANSPARENCY

SEC. _01. TAX EFFECT TRANSPARENCY.

(a) In General.--Chapter 2 of title 1, United States Code, is amended by inserting after section 102 the following:

``Sec. 102a. Tax effect transparency

``(a) In General.--Each Act of Congress, bill, resolution, conference report thereon, or amendment there to, that modifies Federal tax law shall contain a statement describing the general effect of the modification on Federal tax law.

``(b) Failure To Comply.--

``(1) In general.--A failure to comply with subsection (a) shall give rise to a point of order in either House of Congress, which may be raised by any Senator during consideration in the Senate or any Member of the House of Representatives during consideration in the House of Representatives.

``(2) Nonexclusivity.--The availability of a point of order under this section shall not affect the availability of any other point of order.

``(c) Disposition of Point of Order in the Senate.--

``(1) In general.--Any Senator may raise a point of order that any matter is not in order under subsection (a).

``(2) Waiver.--

``(A) In general.--Any Senator may move to waive a point of order raised under paragraph (1) by an affirmative vote of three-fifths of the Senators duly chosen and sworn.

``(B) Procedures.--For a motion to waive a point of order under subparagraph (A) as to a matter--

``(i) a motion to table the point of order shall not be in order;

``(ii) all motions to waive one or more points of order under this section as to the matter shall be debatable for a total of not more than 1 hour, equally divided between the Senator raising the point of order and the Senator moving to waive the point of order or their designees; and

``(iii) a motion to waive the point of order shall not be amendable.

``(d) Disposition of Point of Order in the House of Representatives.--

``(1) In general.--If a Member of the House of Representatives makes a point of order under this section, the Chair shall put the question of consideration with respect to the proposition of whether any statement made under subsection (a) was adequate or, in the absence of such a statement, whether a statement is required under subsection

(a).

``(2) Consideration.--For a point of order under this section made in the House of Representatives--

``(A) the question of consideration shall be debatable for 10 minutes, equally divided and controlled by the Member making the point of order and by an opponent, but shall otherwise be decided without intervening motion except one that the House of Representatives adjourn or that the Committee of the Whole rise, as the case may be;

``(B) in selecting the opponent, the Speaker of the House of Representatives should first recognize an opponent from the opposing party; and

``(C) the disposition of the question of consideration with respect to a measure shall be considered also to determine the question of consideration under this section with respect to an amendment made in order as original text.

``(e) Rulemaking Authority.--The provisions of this section are enacted by the Congress--

``(1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

``(2) with full recognition of the constitutional right of either House to change such rules (so far as relating to such House) at any time, in the same manner, and to the same extent as in the case of any other rule of such House.''.

(b) Clerical Amendment.--The table of sections at the beginning of chapter 2 of title 1, United States Code, is amended by inserting after the item relating to section 102 the following new item:

``102a. Tax effect transparency.''.

______

SA 3149. Mr. CORNYN submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--ELIMINATING IMPROPER AND ABUSIVE AUDITS

SEC. _01. SHORT TITLE.

This title may be cited as the ``Eliminating Improper and Abusive IRS Audits Act of 2014''.

SEC. _02. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL

DISREGARD OF INTERNAL REVENUE LAWS.

(a) Increase in Amount of Damages.--Section 7433(b) is amended by striking ``$1,000,000 ($100,000, in the case of negligence)'' and inserting ``$3,000,000 ($300,000, in the case of negligence)''.

(b) Extension of Time To Bring Action.--Section 7433(d)(3) is amended by striking ``2 years'' and inserting ``5 years''.

(c) Effective Date.--The amendments made by this section shall apply to actions of employees of the Internal Revenue Service after the date of the enactment of this Act.

SEC. _03. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY

OFFICERS AND EMPLOYEES IN CONNECTION WITH

REVENUE LAWS.

(a) Increase in Penalty.--Section 7214 is amended--

(1) by striking ``$10,000'' in subsection (a) and inserting

``$25,000'', and

(2) by striking ``$5,000'' in subsection (b) and inserting

``$10,000''.

(b) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. _04. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR

UNAUTHORIZED INSPECTION OR DISCLOSURE OF

RETURNS AND RETURN INFORMATION.

(a) Increase in Amount of Damages.--Subparagraph (A) of section 7431(c)(1) is amended by striking ``$1,000'' and inserting ``$10,000''.

(b) Effective Date.--The amendment made by this section shall apply to inspections and disclosure occurring on and after the date of the enactment of this Act.

SEC. _05. EXTENSION OF TIME FOR CONTESTING IRS LEVY.

(a) Extension of Time for Return of Property Subject to Levy.--Subsection (b) of section 6343 is amended by striking

``9 months'' and inserting ``3 years''.

(b) Period of Limitation on Suits.--Subsection (c) of section 6532 is amended--

(1) in paragraph (1) by striking ``9 months'' and inserting

``3 years'', and

(2) in paragraph (2) by striking ``9-month'' and inserting

``3-year''.

(1) levies made after the date of the enactment of this Act, and

(2) levies made on or before such date if the 9-month period has not expired under section 6343(b) of the Internal Revenue Code of 1986 (without regard to this section) as of such date.

SEC. _06. INCREASE IN MONETARY PENALTIES FOR CERTAIN

UNAUTHORIZED DISCLOSURES OF INFORMATION.

(a) In General.--Paragraphs (1), (2), (3), and (4) of section 7213(a) are each amended by striking ``$5,000'' and inserting ``$10,000''.

(b) Effective Date.--The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act.

SEC. _07. BAN ON RAISING NEW ISSUES ON APPEAL.

(a) In General.--Chapter 77 is amended by adding at the end the following new section:

``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING

NEW ISSUES IN AN INTERNAL APPEAL.

``(a) In General.--In reviewing an appeal of any determination initially made by the Internal Revenue Service, the Internal Revenue Service Office of Appeals may not consider or decide any issue that is not within the scope of the initial determination.

``(b) Certain Issues Deemed Outside of Scope of Determination.--For purposes of subsection (a), the following matters shall be considered to be not within the scope of a determination:

``(1) Any issue that was not raised in a notice of deficiency or an examiner's report which is the subject of the appeal.

``(2) Any deficiency in tax which was not included in the initial determination.

``(3) Any theory or justification for a tax deficiency which was not considered in the initial determination.

``(c) No Inference With Respect to Issues Raised by Taxpayers.--Nothing in this section shall be construed to provide any limitation in addition to any limitations in effect on the date of the enactment of this section on the right of a taxpayer to raise an issue, theory, or justification on an appeal from a determination initially made by the Internal Revenue Service that was not within the scope of the initial determination.''.

(b) Clerical Amendment.--The table of sections for chapter 77 is amended by adding at the end the following new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues in an internal appeal.''.

(c) Effective Date.--The amendments made by this section shall apply to matters filed or pending with the Internal Revenue Service Office of Appeals on or after the date of the enactment of this Act.

SEC. _08. LIMITATION ON ENFORCEMENT OF LIENS AGAINST

PRINCIPAL RESIDENCES.

(a) In General.--Section 7403(a) is amended--

(1) by striking ``In any case'' and inserting the following:

``(1) In general.--In any case'', and

(2) by adding at the end the following new paragraph:

``(2) Limitation with respect to principal residence.--

``(A) In general.--Paragraph (1) shall not apply to any property used as the principal residence of the taxpayer

(within the meaning of section 121) unless the Secretary of the Treasury makes a written determination that--

``(i) all other property of the taxpayer, if sold, is insufficient to pay the tax or discharge the liability, and

``(ii) such action will not create an economic hardship for the taxpayer.

``(B) Delegation.--For purposes of this paragraph, the Secretary of the Treasury may not delegate any responsibilities under subparagraph (A) to any person other than--

``(i) the Commissioner of Internal Revenue, or

``(ii) a district director or assistant district director of the Internal Revenue Service.''.

(b) Effective Date.--The amendments made by this section shall apply to actions filed after the date of the enactment of this Act.

SEC. _09. ADDITIONAL PROVISIONS RELATING TO MANDATORY

TERMINATION FOR MISCONDUCT.

(a) Termination of Unemployment for Inappropriate Review of Tax-Exempt Status.--Section 1203(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by striking ``and'' at the end of paragraph

(9), by striking the period at the end of paragraph (10) and inserting ``; and'', and by adding at the end the following new paragraph:

``(11) in the case of any review of an application for tax-exempt status by an organization described in section 501(c) of the Internal Revenue Code of 1986, developing or using any methodology that applies disproportionate scrutiny to any applicant based on the ideology expressed in the name or purpose of the organization.''.

(b) Mandatory Unpaid Administrative Leave for Misconduct.--Paragraph (1) of Section 1203(c) of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by adding at the end the following new sentence: ``Notwithstanding the preceding sentence, if the Commissioner of Internal Revenue takes a personnel action other than termination for an act or omission described in subsection (b), the Commissioner shall place the employee on unpaid administrative leave for a period of not less than 30 days.''.

(c) Limitation on Alternative Punishment.--Paragraph (1) of section 1203(c) of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by striking ``The Commissioner'' and inserting ``Except in the case of an act or omission described in subsection (b)(3)(A), the Commissioner''.

SEC. _10. EXTENSION OF DECLARATORY JUDGMENT PROCEDURES TO

SOCIAL WELFARE ORGANIZATIONS.

(a) In General.--Section 7428(a)(1) is amended by striking

``or'' at the end of subparagraph (C) and by adding at the end the following new subparagraph:

``(E) with respect to the initial classification or continuing classification of an organization described in section 501(c)(4) which is exempt from tax under section 501(a), or''.

(b) Effective Date.--The amendments made by this section shall apply with respect to pleading filed after the date of the enactment of this Act.

SEC. _11. REVIEW BY THE TREASURY INSPECTOR GENERAL FOR TAX

ADMINISTRATION.

(a) Review.--Subsection (k)(1) of section 8D of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--

(1) in subparagraph (C), by striking ``and'' at the end;

(2) by redesignating subparagraph (D) as subparagraph (E);

(3) by inserting after subparagraph (C) the following new subparagraph:

``(D) shall--

``(i) review any criteria employed by the Internal Revenue Service to select tax returns (including applications for recognition of tax-exempt status) for examination or audit, assessment or collection of deficiencies, criminal investigation or referral, refunds for amounts paid, or any heightened scrutiny or review in order to determine whether the criteria discriminates against taxpayers on the basis of race, religion, or political ideology; and

``(ii) consult with the Internal Revenue Service on recommended amendments to such criteria in order to eliminate any discrimination identified pursuant to the review described in clause (i); and''; and

(4) in subparagraph (E), as so redesignated, by striking

``and (C)'' and inserting ``(C), and (D)''.

(b) Semiannual Report.--Subsection (g) of such section is amended by adding at the end the following new paragraph:

``(3) Any semiannual report made by the Treasury Inspector General for Tax Administration that is required pursuant to section 5(a) shall include--

``(A) a statement affirming that the Treasury Inspector General for Tax Administration has reviewed the criteria described in subsection (k)(1)(D) and consulted with the Internal Revenue Service regarding such criteria; and

``(B) a description and explanation of any such criteria that was identified as discriminatory by the Treasury Inspector General for Tax Administration.''.

______

SA 3150. Mr. CORNYN submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--SMALL BUSINESS TAXPAYER BILL OF RIGHTS

SEC. _01. SHORT TITLE.

This title may be cited as the ``Small Business Taxpayer Bill of Rights Act of 2014''.

SEC. _02. MODIFICATION OF STANDARDS FOR AWARDING OF COSTS AND

CERTAIN FEES.

(a) Small Businesses Eligible Without Regard to Net Worth.--Subparagraph (D) of section 7430(c)(4) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``and'', and by adding at the end the following new clause:

``(iii) in the case of an eligible small business, the net worth limitation in clause (ii) of such section shall not apply.''.

(b) Eligible Small Business.--Paragraph (4) of section 7430(c) is amended by adding at the end the following new subparagraph:

``(F) Eligible small business.--For purposes of subparagraph (D)(iii), the term `eligible small business' means, with respect to any proceeding commenced in a taxable year--

``(i) a corporation the stock of which is not publicly traded,

``(ii) a partnership, or

``(iii) a sole proprietorship,if the average annual gross receipts of such corporation, partnership, or sole proprietorship for the 3-taxable-year period preceding such taxable year does not exceed

$50,000,000. For purposes of applying the test under the preceding sentence, rules similar to the rules of paragraphs

(2) and (3) of section 448(c) shall apply.''.

(c) Effective Date.--The amendments made by this section shall apply to proceedings commenced after the date of the enactment of this Act.

SEC. _03. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL

DISREGARD OF INTERNAL REVENUE LAWS.

(a) Increase in Amount of Damages.--Section 7433(b) is amended by striking ``$1,000,000 ($100,000, in the case of negligence)'' and inserting ``$3,000,000 ($300,000, in the case of negligence)''.

(b) Extension of Time To Bring Action.--Section 7433(d)(3) is amended by striking ``2 years'' and inserting ``5 years''.

(c) Effective Date.--The amendments made by this section shall apply to actions of employees of the Internal Revenue Service after the date of the enactment of this Act.

SEC. _04. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY

OFFICERS AND EMPLOYEES IN CONNECTION WITH

REVENUE LAWS.

(a) Increase in Penalty.--Section 7214 is amended--

(1) by striking ``$10,000'' in subsection (a) and inserting

``$25,000'', and

(2) by striking ``$5,000'' in subsection (b) and inserting

``$10,000''.

(b) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. _05. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR

UNAUTHORIZED INSPECTION OR DISCLOSURE OF

RETURNS AND RETURN INFORMATION.

(a) Increase in Amount of Damages.--Subparagraph (A) of section 7431(c)(1) is amended by striking ``$1,000'' and inserting ``$10,000''.

(b) Effective Date.--The amendment made by this section shall apply to inspections and disclosure occurring on and after the date of the enactment of this Act.

SEC. _06. INTEREST ABATEMENT REVIEWS.

(a) Filing Period for Interest Abatement Cases.--

(1) In general.--Subsection (h) of section 6404 is amended--

(A) by striking ``Review of Denial'' in the heading and inserting ``Judicial Review'', and

(B) by striking `` `if such action is brought' '' and all that follows in paragraph (1) and inserting ``if such action is brought--

``(A) at any time after the earlier of--

``(i) the date of the mailing of the Secretary's final determination not to abate such interest, or

``(ii) the date which is 180 days after the date of the filing with the Secretary (in such form as the Secretary may prescribe) of a claim for abatement under this section, and

``(B) not later than the date which is 180 days after the date described in subparagraph (A)(i).''.

(2) Effective date.--The amendments made by this subsection shall apply to claims for abatement of interest filed with the Secretary after the date of the enactment of this Act.

(b) Small Tax Case Election for Interest Abatement Cases.--

(1) In general.--Subsection (f) of section 7463 is amended--

(A) by striking ``and'' at the end of paragraph (1),

(B) by striking the period at the end of paragraph (2) and inserting ``, and'', and

``(3) a petition to the Tax court under section 6404(h) in which the amount of interest abatement sought does not exceed

$50,000.''.

(2) Effective date.--The amendments made by this subsection shall apply to--

(A) cases pending as of the day after the date of the enactment of this Act, and

(B) cases commenced after such date of enactment.

SEC. _07. BAN ON EX PARTE DISCUSSIONS.

(a) In General.--Notwithstanding section 1001(a)(4) of the Internal Revenue Service Restructuring and Reform Act of 1998, the Internal Revenue Service shall prohibit any ex parte communications between officers in the Internal Revenue Service Office of Appeals and other Internal Revenue Service employees with respect to any matter pending before such officers.

(b) Termination of Employment for Misconduct.--Subject to subsection (c), the Commissioner of Internal Revenue shall terminate the employment of any employee of the Internal Revenue Service if there is a final administrative or judicial determination that such employee committed any act or omission prohibited under subsection (a) in the performance of the employee's official duties. Such termination shall be a removal for cause on charges of misconduct.

(1) In general.--The Commissioner of Internal Revenue may take a personnel action other than termination for an act prohibited under subsection (a).

(2) Discretion.--The exercise of authority under paragraph

(1) shall be at the sole discretion of the Commissioner of Internal Revenue and may not be delegated to any other officer. The Commissioner of Internal Revenue, in his sole discretion, may establish a procedure which will be used to determine whether an individual should be referred to the Commissioner of Internal Revenue for a determination by the Commissioner under paragraph (1).

(3) No appeal.--Any determination of the Commissioner of Internal Revenue under this subsection may not be appealed in any administrative or judicial proceeding.

(d) TIGTA Reporting of Termination or Mitigation.--Section 7803(d)(1)(E) of the Internal Revenue Code of 1986 is amended by inserting ``or section 7 of the Small Business Taxpayer Bill of Rights Act of 2014'' after ``1998''.

SEC. _08. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.

(a) In General.--Section 7123 is amended by adding at the end the following new subsection:

``(c) Availability of Dispute Resolutions.--

``(1) In general.--The procedures prescribed under subsection (b)(1) and the pilot program established under subsection (b)(2) shall provide that a taxpayer may request mediation or arbitration in any case unless the Secretary has specifically excluded the type of issue involved in such case or the class of cases to which such case belongs as not appropriate for resolution under such subsection. The Secretary shall make any determination that excludes a type of issue or a class of cases public within 5 working days and provide an explanation for each determination.

``(2) Independent mediators.--

``(A) In general.--The procedures prescribed under subsection (b)(1) shall provide the taxpayer an opportunity to elect to have the mediation conducted by an independent, neutral individual not employed by the Office of Appeals.

``(B) Cost and selection.--

``(i) In general.--Any taxpayer making an election under subparagraph (A) shall be required--

``(I) to share the costs of such independent mediator equally with the Office of Appeals, and

``(II) to limit the selection of the mediator to a roster of recognized national or local neutral mediators.

``(ii) Exception.--Clause (i)(I) shall not apply to any taxpayer who is an individual or who was a small business in the preceding calendar year if such taxpayer had an adjusted gross income that did not exceed 250 percent of the poverty level, as determined in accordance with criteria established by the Director of the Office of Management and Budget, in the taxable year preceding the request.

``(iii) Small business.--For purposes of clause (ii), the term `small business' has the meaning given such term under section 41(b)(3)(D)(iii).

``(3) Availability of process.--The procedures prescribed under subsection (b)(1) and the pilot program established under subsection (b)(2) shall provide the opportunity to elect mediation or arbitration at the time when the case is first filed with the Office of Appeals and at any time before deliberations in the appeal commence.''.

(b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

SEC. _09. EXTENSION OF TIME FOR CONTESTING IRS LEVY.

(a) Extension of Time for Return of Property Subject to Levy.--Subsection (b) of section 6343 is amended by striking

``9 months'' and inserting ``3 years''.

(b) Period of Limitation on Suits.--Subsection (c) of section 6532 is amended--

(1) in paragraph (1) by striking ``9 months'' and inserting

``3 years'', and

(2) in paragraph (2) by striking ``9-month'' and inserting

``3-year''.

(1) levies made after the date of the enactment of this Act, and

(2) levies made on or before such date if the 9-month period has not expired under section 6343(b) of the Internal Revenue Code of 1986 (without regard to this section) as of such date.

SEC. _10. WAIVER OF INSTALLMENT AGREEMENT FEE.

(a) In General.--Section 6159 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

``(f) Waiver of Installment Agreement Fee.--The Secretary shall waive the fees imposed on installment agreements under this section for any taxpayer with an adjusted gross income that does not exceed 250 percent of the poverty level, as determined in accordance with criteria established by the Director of the Office of Management and Budget, and who has agreed to make payments under the installment agreement by electronic payment through a debit instrument.''.

(b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

SEC. _11. SUSPENSION OF RUNNING OF PERIOD FOR FILING PETITION

OF SPOUSAL RELIEF AND COLLECTION CASES.

(a) Petitions for Spousal Relief.--

(1) In general.--Subsection (e) of section 6015 is amended by adding at the end the following new paragraph:

``(6) Suspension of running of period for filing petition in title 11 cases.--In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1)(A) with respect to a final determination of relief under this section, the running of the period prescribed by such paragraph for filing such a petition with respect to such final determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 60 days thereafter.''.

(2) Effective date.--The amendment made by this subsection shall apply to petitions filed under section 6015(e) of the Internal Revenue Code of 1986 after the date of the enactment of this Act.

(b) Collection Proceedings.--

(1) In general.--Subsection (d) of section 6330 is amended--

(A) by striking ``appeal such determination to the Tax Court'' in paragraph (1) and inserting ``petition the Tax Court for review of such determination'',

(B) by striking ``Judicial review of determination'' in the heading of paragraph (1) and inserting ``Petition for review by tax court'',

(D) by inserting after paragraph (1) the following new paragraph:

``(2) Suspension of running of period for filing petition in title 11 cases.--In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1) with respect to a determination under this section, the running of the period prescribed by such subsection for filing such a petition with respect to such determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 30 days thereafter.''.

(2) Conforming amendment.--Subsection (c) of section 6320 is amended by striking ``(2)(B)'' and inserting ``(3)(B)''.

(3) Effective date.--The amendments made by this subsection shall apply to petitions filed under section 6330 of the Internal Revenue Code of 1986 after the date of the enactment of this Act.

SEC. _12. VENUE FOR APPEAL OF SPOUSAL RELIEF AND COLLECTION

CASES.

(a) In General.--Paragraph (1) of section 7482(b) is amended--

(1) by striking ``or'' at the end of subparagraph (E),

(2) by striking the period at the end of subparagraph (F) and inserting a comma, and

(3) by inserting after subparagraph (F) the following new subparagraphs:

``(G) in the case of a petition under section 6015(e), the legal residence of the petitioner, or

``(H) in the case of a petition under section 6320 or 6330--

``(i) the legal residence of the petitioner if the petitioner is an individual, and

``(ii) the principal place of business or principal office or agency if the petitioner is an entity other than an individual.''.

(b) Effective Date.--The amendments made by this section shall apply to petitions filed after the date of enactment of this Act.

SEC. _13. INCREASE IN MONETARY PENALTIES FOR CERTAIN

UNAUTHORIZED DISCLOSURES OF INFORMATION.

(a) In General.--Paragraphs (1), (2), (3), and (4) of section 7213(a) are each amended by striking ``$5,000'' and inserting ``$10,000''.

(b) Effective Date.--The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act.

SEC. _14. DE NOVO TAX COURT REVIEW OF CLAIMS FOR EQUITABLE

INNOCENT SPOUSE RELIEF.

(a) In General.--Subparagraph (A) of section 6015(e)(1) is amended by adding at the end the following new flush sentence:

``Any review of a determination by the Secretary with respect to a claim for equitable relief under subsection (f) shall be reviewed de novo by the Tax Court.''.

(b) Effective Date.--The amendment made by this section shall apply to petitions filed or pending before the Tax Court on and after the date of the enactment of this Act.

SEC. _15. BAN ON RAISING NEW ISSUES ON APPEAL.

(a) In General.--Chapter 77 is amended by adding at the end the following new section:

``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING

NEW ISSUES IN AN INTERNAL APPEAL.

``(b) Certain Issues Deemed Outside of Scope of Determination.--For purposes of subsection (a), the following matters shall be considered to be not within the scope of a determination:

``(1) Any issue that was not raised in a notice of deficiency or an examiner's report which is the subject of the appeal.

``(2) Any deficiency in tax which was not included in the initial determination.

``(3) Any theory or justification for a tax deficiency which was not considered in the initial determination.

(b) Clerical Amendment.--The table of sections for chapter 77 is amended by adding at the end the following new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues in an internal appeal.''.

(c) Effective Date.--The amendments made by this section shall apply to matters filed or pending with the Internal Revenue Service Office of Appeals on or after the date of the enactment of this Act.

______

SA 3151. Mr. GRAHAM (for himself and Mr. Scott) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. _01. ALLOCATION OF CREDIT FOR PRODUCTION OF ADVANCED

NUCLEAR POWER FACILITIES TO PRIVATE PARTNERS OF

TAX-EXEMPT ENTITIES.

(a) In General.--Section 45J is amended--

(1) by redesignating subsection (e) as subsection (f), and

(2) by inserting after subsection (d) the following new subsection:

``(e) Special Rule for Public-private Partnerships.--

``(1) In general.--In the case of an advanced nuclear power facility which is owned by a public private partnership or co-owned by a qualified public entity and a non-public entity, any qualified public entity which is a member of such partnership or a co-owner of such facility may transfer such entity's allocation of the credit under subsection (a), or any portion thereof, to any non-public entity which is a member of such partnership or which is a co-owner of such facility, except that the aggregate allocations of such credit claimed by such non-public entity shall be subject to the limitations under subsections (b) and (c) and section 38.

``(2) Qualified public entity.--For purposes of this subsection, the term `qualified public entity' means--

``(A) a Federal, State, or local government entity, or any political subdivision, agency, or instrumentality thereof,

``(B) a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2), or

``(C) a not-for-profit electric utility which has or had received a loan or loan guarantee under the Rural Electrification Act of 1936.

``(3) Verification of transfer of allocation.--A qualified public entity that makes a transfer under paragraph (1), and a nonpublic entity that receives an allocation under such a transfer, shall provide verification of such transfer in such manner and at such time as the Secretary shall prescribe.

``(4) Treatment of transfer under private use rules.--For purposes of section 141(b)(1), any benefit derived by a non-public entity in connection with a transfer under paragraph

(1) shall not be taken into account as a private business use.''.

(b) Coordination With General Business Credit.--Subsection

``(7) Special rule for credit for production from advanced nuclear power facilities.--

``(A) In general.--In the case of the credit for production from advanced nuclear power facilities determined under section 45J(a), paragraph (1) shall not apply with respect to any qualified public entity (as defined in section 45J(e)(2)) which transfers the entity's allocation of such credit to a non-public partner or a co-owner of such facility as provided in section 45J(e)(1).

``(B) Verification of transfer.--Subparagraph (A) shall not apply to any qualified public entity unless such entity provides verification of a transfer of credit allocation as required under section 45J(e)(3).''.

(c) Special Rule for Proceeds of Transfers for Mutual or Cooperative Electric Companies.--Section 501(c)(12) is amended by adding at the end the following new subparagraph:

``(I) In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2), income received or accrued from a transfer described in section 45J(e)(1) shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses.''.

(d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

______

SA 3152. Mr. COBURN submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. DISCLOSURE OF PUBLIC COMPANIES RECEIVING CERTAIN TAX

BENEFITS.

(a) In General.--Notwithstanding section 6103 of the Internal Revenue Code of 1986 or any other provision of law, the Secretary of the Treasury, or the Secretary's delegate, shall provide to administrator of the website established under the Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6101 note), for purposes of inclusion on such website, the information described in subsection (b) with respect to any corporation--

(1) the stock of which is publicly traded on an established securities market, and

(2) which is allowed an applicable tax benefit.

(b) Information Included.--The information described in this subsection is--

(1) the name of the corporation,

(2) the type of applicable tax benefit, and

(3) the amount of the applicable tax benefit.

(c) Applicable Tax Benefit.--For purposes of this section, the term ``applicable tax benefit'' means, with respect to any taxpayer for any taxable year beginning after December 31, 2013, any credit, deduction, or other benefit allowed to the taxpayer by reason of an amendment made by--

(1) part II or part III of subtitle A of title I of this Act,

(2) subtitle B of title I of this Act, or

(3) section 107(b) of this Act.

______

SA 3153. Mr. COBURN submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 115.

______

SA 3154. Mr. LEE submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 47, strike line 10 and all that follows through page 50, line 9.

Beginning on page 50, strike line 19 and all that follows through page 55, line 17.

On page 56, strike line 6 and all that follows through line 14.

On page 58, strike line 3 and all that follows through line 11 and insert the following:case of any alternative fuel credit properly determined under section 6426(d) of the Internal Revenue Code of 1986 for periods after December 31, 2013, and before the date of the enactment of this Act,

Beginning on page 59, strike line 7 and all that follows through page 60, line 2.

At the appropriate place, insert the following:

TITLE VI--ENERGY FREEDOM AND ECONOMIC PROSPERITY ACT OF 2014

Subtitle A--Short Title; etc.

SEC. _01. SHORT TITLE.

This title may be cited as the ``Energy Freedom and Economic Prosperity Act of 2014''.

Subtitle B--Repeal of Energy Tax Subsidies

SEC. _11. EARLY TERMINATION OF CREDIT FOR QUALIFIED FUEL CELL

MOTOR VEHICLES.

(a) In General.--Section 30B is repealed.

(b) Conforming Amendments.--

(1) Subparagraph (A) of section 24(b)(3) is amended by striking ``, 30B''.

(2) Paragraph (2) of section 25B(g) is amended by striking

``, 30B,''.

(3) Subsection (b) of section 38 is amended by striking paragraph (25).

(4) Subsection (a) of section 1016 is amended by striking paragraph (35) and by redesignating paragraphs (36) and (37) as paragraphs (35) and (36), respectively.

(5) Subsection (m) of section 6501 is amended by striking

``, 30B(h)(9)''.

(c) Clerical Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30B.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _12. EARLY TERMINATION OF NEW QUALIFIED PLUG-IN ELECTRIC

DRIVE MOTOR VEHICLES.

(a) In General.--Section 30D is repealed.

(b) Effective Date.--The amendment made by this section shall apply to vehicles placed in service after the date of the enactment of this Act.

SEC. _13. REPEAL OF CREDIT FOR ALCOHOL USED AS FUEL.

(a) In General.--Section 40, as amended by this Act, is repealed.

(b) Conforming Amendments.--

(1) Subsection (b) of section 38 is amended by striking paragraph (3).

(2) Subsection (c) of section 196 is amended by striking paragraph (3) and by redesignating paragraphs (4) through

(14) as paragraphs (3) through (13), respectively.

(3) Paragraph (1) of section 4101(a) is amended by striking

``, and every person producing cellulosic biofuel (as defined in section 40(b)(6)(E))''.

(4) Paragraph (1) of section 4104(a) is amended by striking

``, 40''.

(c) Effective Date.--The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act.

SEC. _14. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

(a) In General.--Section 43 is repealed.

(b) Conforming Amendments.--

(1) Subsection (b) of section 38 is amended by striking paragraph (6).

(2) Paragraph (4) of section 45Q(d) is amended by inserting

``(as in effect on the day before the date of the enactment of the Energy Freedom and Economic Prosperity Act of 2014)'' after ``section 43(c)(2)''.

(c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 43.

(d) Effective Date.--The amendments made by this section shall apply to costs paid or incurred after December 31, 2014.

SEC. _15. REPEAL OF CREDIT FOR PRODUCING OIL AND GAS FROM

MARGINAL WELLS.

(a) In General.--Section 45I is repealed.

(b) Conforming Amendment.--Subsection (b) of section 38 is amended by striking paragraph (19).

(c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 45I.

(d) Effective Date.--The amendments made by this section shall apply to production in taxable years beginning after December 31, 2014.

SEC. _16. TERMINATION OF CREDIT FOR PRODUCTION FROM ADVANCED

NUCLEAR POWER FACILITIES.

(a) In General.--Subparagraph (B) of section 45J(d)(1) is amended by striking ``January 1, 2021'' and inserting

``January 1, 2015''.

(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _17. REPEAL OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

(a) In General.--Section 45Q is repealed.

(b) Effective Date.--The amendment made by this section shall apply to carbon dioxide captured after December 31, 2014.

SEC. _18. TERMINATION OF ENERGY CREDIT.

(a) In General.--Section 48 is amended by adding at the end the following new subsection:

``(e) Termination.--No credit shall be allowed under subsection (a) for any period after December 31, 2014.''.

(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _19. REPEAL OF QUALIFYING ADVANCED COAL PROJECT.

(a) In General.--Section 48A is repealed.

(b) Conforming Amendment.--Section 46 is amended by striking paragraph (3) and by redesignating paragraphs (4),

(5), and (6) as paragraphs (3), (4), and (5), respectively.

(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48A.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _20. REPEAL OF QUALIFYING GASIFICATION PROJECT CREDIT.

(a) In General.--Section 48B is repealed.

(b) Conforming Amendment.--Section 46, as amended by this Act, is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and

(4), respectively.

(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48B.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

SEC. _21. REPEAL OF QUALIFYING ADVANCED ENERGY PROJECT

CREDIT.

(a) In General.--Section 48C is repealed.

(b) Conforming Amendment.--Section 46, as amended by this Act, is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3).

(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48C.

(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2014.

Subtitle C--Reduction of Corporate Income Tax Rate

SEC. _31. CORPORATE INCOME TAX RATE REDUCED.

(a) In General.--Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe, in lieu of the rates of tax under paragraphs

(1) and (2) of section 11(b), section 1201(a), and paragraphs

(1), (2), and (6) of section 1445(e) of the Internal Revenue Code of 1986, such rates of tax as the Secretary estimates would result in--

(1) a decrease in revenue to the Treasury for taxable years beginning during the 10-year period beginning on the date of the enactment of this Act, equal to

(2) the increase in revenue for such taxable years by reason of the amendments made by title I of this Act.

(b) Maintenance of Graduated Rates.--In prescribing the tax rates under subsection (a), the Secretary shall ensure that each rate modified under such subsection is reduced by a uniform percentage.

(c) Effective Date.--The rates prescribed by the Secretary under subsection (a) shall apply to taxable years beginning more than 1 year after the date of the enactment of this Act.

______

SA 3155. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 129.

______

SA 3156. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 123.

______

SA 3157. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 121.

______

SA 3158. Mr. McCAIN submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--FOREIGN EARNINGS REINVESTMENT

SEC. _01. SHORT TITLE.

This title may be cited as the ``Foreign Earnings Reinvestment Act''.

SEC. _02. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION

FOR DIVIDENDS RECEIVED FROM A CONTROLLED

FOREIGN CORPORATION.

(a) Applicability of Provision.--

(1) In general.--Subsection (f) of section 965 is amended to read as follows:

``(f) Election; Election Year.--

``(1) In general.--The taxpayer may elect to apply this section to--

``(A) the taxpayer's last taxable year which begins before the date of the enactment of the Foreign Earnings Reinvestment Act, or

``(B) the taxpayer's first taxable year which begins during the 1-year period beginning on such date.Such election may be made for a taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.

``(C) Election year.--For purposes of this section, the term `election year' means the taxable year--

``(i) which begins after the date that is one year before the date of the enactment of the Foreign Earnings Reinvestment Act, and

``(ii) to which the taxpayer elects under paragraph (1) to apply this section.''.

(2) Conforming amendments.--

(A) Extraordinary dividends.--Section 965(b)(2) is amended--

(i) by striking ``June 30, 2003'' and inserting ``April 30, 2014'', and

(ii) by adding at the end the following new sentence: ``The amounts described in clauses (i), (ii), and (iii) shall not include any amounts which were taken into account in determining the deduction under subsection (a) for any prior taxable year.''.

(B) Determinations relating to related party indebtedness.--Section 965(b)(3)(B) is amended by striking

``October 3, 2004'' and inserting ``April 30, 2014''.

(C) Determinations relating to base period.--Section 965(c)(2) is amended by striking ``June 30, 2003'' and inserting ``April 30, 2014''.

(b) Deduction Includes Current and Accumulated Foreign Earnings.--

(1) In general.--Paragraph (1) of section 965(b) is amended to read as follows:

``(1) In general.--The amount of dividends taken into account under subsection (a) shall not exceed the sum of the current and accumulated earnings and profits described in section 959(c)(3) for the year a deduction is claimed under subsection (a), without diminution by reason of any distributions made during the election year, for all controlled foreign corporations of the United States shareholder.''.

(2) Conforming amendments.--

(A) Section 965(c), as amended by subsection (a), is amended by striking paragraph (1) and by redesignating paragraphs (2), (3), (4), and (5), as paragraphs (1), (2),

(3), and (4), respectively.

(B) Paragraph (4) of section 965(c), as redesignated by subparagraph (A), is amended to read as follows:

``(4) Controlled groups.--All United States shareholders which are members of an affiliated group filing a consolidated return under section 1501 shall be treated as one United States shareholder.''.

(1) In general.--Paragraph (1) of section 965(a) is amended by striking ``85 percent'' and inserting ``75 percent''.

(2) Bonus deduction in subsequent taxable year for increasing jobs.--Section 965 is amended by adding at the end the following new subsection:

``(g) Bonus Deduction.--

``(1) In general.--In the case of any taxpayer who makes an election to apply this section, there shall be allowed as a deduction for the first taxable year following the election year an amount equal to the applicable percentage of the cash dividends which are taken into account under subsection (a) with respect to such taxpayer for the election year.

``(2) Applicable percentage.--For purposes of paragraph

(1), the applicable percentage is the amount which bears the same ratio (not greater than 1) to 10 percent as--

``(A) the excess (if any) of--

``(i) the qualified payroll of the taxpayer for the calendar year which begins with or within the first taxable year following the election year, over

``(ii) the qualified payroll of the taxpayer for calendar year 2013, bears to

``(B) 10 percent of the qualified payroll of the taxpayer for calendar year 2013.

``(3) Qualified payroll.--For purposes of this paragraph:

``(A) In general.--The term `qualified payroll' means, with respect to a taxpayer for any calendar year, the aggregate wages (as defined in section 3121(a)) paid by the corporation during such calendar year.

``(B) Exception for changes in ownership of trades or businesses.--

``(i) Acquisitions.--If, after December 31, 2012, and before the close of the first taxable year following the election year, a taxpayer acquires the trade or business of a predecessor, then the qualified payroll of such taxpayer for any calendar year shall be increased by so much of the qualified payroll of the predecessor for such calendar year as was attributable to the trade or business acquired by the taxpayer.

``(ii) Dispositions.--If, after December 31, 2012, and before the close of the first taxable year following the election year, a taxpayer disposes of a trade or business, then--

``(I) the qualified payroll of such taxpayer for calendar year 2013 shall be decreased by the amount of wages for such calendar year as were attributable to the trade or business which was disposed of by the taxpayer, and

``(II) if the disposition occurs after the beginning of the first taxable year following the election year, the qualified payroll of such taxpayer for the calendar year which begins with or within such taxable year shall be decreased by the amount of wages for such calendar year as were attributable to the trade or business which was disposed of by the taxpayer.

``(C) Special rule.--For purposes of determining qualified payroll for any calendar year after calendar year 2014, such term shall not include wages paid to any individual if such individual received compensation from the taxpayer for services performed--

``(i) after the date of the enactment of this paragraph, and

``(ii) at a time when such individual was not an employee of the taxpayer.''.

(3) Reduction for failure to maintain employment levels.--Paragraph (4) of section 965(b) is amended to read as follows:

``(4) Reduction in benefits for failure to maintain employment levels.--

``(A) In general.--If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer's prior average employment, an additional amount equal to

$75,000 multiplied by the number of employees by which the taxpayer's average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to subsection (a)(1)) shall be taken into income by the taxpayer during the taxable year that includes the final day of such period.

``(B) Average employment level.--For purposes of this paragraph, the taxpayer's average employment level for a period shall be the average number of full-time United States employees of the taxpayer, measured at the end of each month during the period.

``(C) Prior average employment.--For purposes of this paragraph, the taxpayer's `prior average employment' shall be the average number of full-time United States employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1).

``(D) Full-time united states employee.--For purposes of this paragraph--

``(i) In general.--The term `full-time United States employee' means an individual who provides services in the United States as a full-time employee, based on the employer's standards and practices; except that regardless of the employer's classification of the employee, an employee whose normal schedule is 40 hours or more per week is considered a full-time employee.

``(ii) Exception for changes in ownership of trades or businesses.--Such term does not include--

``(I) any individual who was an employee, on the date of acquisition, of any trade or business acquired by the taxpayer during the 24-month period referred to in subparagraph (A), and

``(II) any individual who was an employee of any trade or business disposed of by the taxpayer during the 24-month period referred to in subparagraph (A) or the 24-month period referred to in subparagraph (C).

``(E) Aggregation rules.--In determining the taxpayer's average employment level and prior average employment, all domestic members of a controlled group shall be treated as a single taxpayer.''.

(d) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

______

SA 3159. Mr. PORTMAN submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. _01. MACROECONOMIC IMPACT ANALYSES FOR MAJOR REVENUE

LEGISLATION.

(a) In General.--Part A of title IV of the Congressional Budget Act of 1974 is amended by adding at the end the following new section:

``macroeconomic impact analysis of major revenue legislation

``Sec. 407. (a) Joint Committee on Taxation.--The Joint Committee on Taxation shall, to the extent practicable, prepare for each major revenue bill or resolution which is--

``(1) reported by the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate; or

``(2) considered on the floor of the House of Representatives or the Senate,as a supplement to estimates prepared under section 402, a macroeconomic impact analysis of the budgetary effects of such bill or resolution for the 10 fiscal-year period beginning with the first fiscal year for which an estimate was prepared under section 402 and each of the next three 10 fiscal-year periods. To the extent practicable, the Joint Committee on Taxation's macroeconomic impact analysis shall be included in full as part of the Congressional Budget Office report accompanying such bill or resolution under section 402. If a macroeconomic impact analysis is not included as part of the Congressional Budget Office report relating to a major revenue bill or resolution, the Chairman of the Committee reporting the bill or resolution shall cause the analysis to be entered into the Congressional Record of the Senate and House of Representatives.

``(b) Definitions.--As used in this section:

``(1) Macroeconomic impact analysis.--The term

`macroeconomic impact analysis' means--

``(A) an estimate of the changes in economic output, employment, interest rates, capital stock, and tax revenues expected to result from the revenue provisions in the proposal to which section 201(f) applies;

``(B) an estimate of revenue feedback expected to result from those revenue provisions; and

``(C) a statement identifying the critical assumptions and the source of data underlying that estimate, to the extent necessary to make the models comprehensible to academic and public policy analysts.

``(2) Major revenue bill or resolution.--The term `major revenue bill or resolution' means a bill, resolution, or conference report for which--

``(A) either--

``(i) the sum of the positive changes in revenues resulting from such measure (not including the impact of any timing shifts for the due date for estimated corporate income tax payments) for any fiscal year in the period for which an estimate is prepared under section 402; or

``(ii) the absolute value of the sum of the negative changes in revenues resulting from such measure (not including the impact of any timing shifts for the due date for estimated corporate income tax payments) for any fiscal year for which such an estimate is prepared,is greater than

``(B) 0.25 percent of the current projected gross domestic product of the United States (as determined by the Bureau of Economic Analysis of the Department of Commerce) for such fiscal year.

``(3) Revenue feedback.--The term `revenue feedback' means changes in revenue resulting from changes in economic growth as the result of the enactment of any major revenue bill or resolution.''.

(b) Conforming Amendment.--The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 406 the following new item:

``Sec. 407. Macroeconomic impact analysis of major revenue legislation.''.

______

SA 3160. Mr. COBURN submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. DISCLOSURE OF PUBLIC COMPANIES RECEIVING CERTAIN TAX

BENEFITS.

(1) the stock of which is publicly traded on an established securities market, and

(2) which is allowed an applicable tax benefit.

(b) Information Included.--The information described in this subsection is--

(1) the name of the corporation,

(2) the type of applicable tax benefit, and

(3) the amount of the applicable tax benefit.

(1) part II or part III of subtitle A of title I of this Act,

(2) subtitle B of title I of this Act, or

(3) section 107(b) of this Act.

______

SA 3161. Mr. TOOMEY (for himself, Mr. Burr, Mr. Cornyn, Mr. Coats, Ms. Ayotte, Mr. McConnell, Mr. Roberts, Mr. Crapo, Mr. Alexander, Mr. Hatch, Mr. Isakson, Ms. Collins, and Mr. Enzi) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. ___. REPEAL OF MEDICAL DEVICE TAX.

(a) In General.--Chapter 32 is amended by striking subchapter E.

(b) Conforming Amendments.--

(1) Subsection (a) of section 4221 is amended by striking the last sentence.

(2) Paragraph (2) of section 6416(b) is amended by striking the last sentence.

(c) Clerical Amendment.--The table of subchapters for chapter 32 is amended by striking the item related to subchapter E.

(d) Effective Date.--The amendments made by this section shall apply to sales after the date of the enactment of this Act.

______

SA 3162. Mr. ENZI (for himself and Mr. Barrasso) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--TAX RETURN DUE DATE SIMPLIFICATION AND MODERNIZATION

SEC. _01. SHORT TITLE.

This title may be cited as the ``Tax Return Due Date Simplification and Modernization Act of 2013''.

SEC. _02. NEW DUE DATE FOR PARTNERSHIP FORM 1065, S

CORPORATION FORM 1120S, AND C CORPORATION FORM

1120.

(a) Partnerships.--

(1) In general.--Section 6072 is amended by adding at the end the following new subsection:

``(f) Returns of Partnerships.--Returns of partnerships under section 6031 made on the basis of the calendar year shall be filed on or before the 15th day of March following the close of the calendar year, and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the third month following the close of the fiscal year.''.

(2) Conforming amendment.--Section 6072(a) is amended by striking ``6017, or 6031'' and inserting ``or 6017''.

(b) S Corporations.--

(1) In general.--So much of subsection (b) of 6072 as precedes the second sentence thereof is amended to read as follows:

``(b) Returns of Certain Corporations.--Returns of S corporations under sections 6012 and 6037 made on the basis of the calendar year shall be filed on or before the 31st day of March following the close of the calendar year, and such returns made on the basis of a fiscal year shall be filed on or before the last day of the third month following the close of the fiscal year.''.

(2) Conforming amendments.--

(A) Section 1362(b) is amended--

(i) by striking ``15th'' each place it appears and inserting ``last'',

(ii) by striking ``2\1/2\'' each place it appears and inserting ``3'', and

(iii) by striking ``2 months and 15 days'' in paragraph (4) and inserting ``3 months''.

(B) Section 1362(d)(1)(C)(i) is amended by striking

``15th'' and inserting ``last''.

(C) Section 1362(d)(1)(C)(ii) is amended by striking ``such 15th day'' and inserting ``the last day of the 3d month thereof''.

(1) Section 170(a)(2)(B) is amended by striking ``third month'' and inserting ``4th month''.

(2) Section 563 is amended by striking ``third month'' each place it appears and inserting ``4th month''.

(3) Section 1354(d)(1)(B)(i) is amended by striking ``3d month'' and inserting ``4th month''.

(4) Subsection (a) and (c) of section 6167 are each amended by striking ``third month'' and inserting ``4th month''.

(5) Section 6425(a)(1) is amended by striking ``third month'' and inserting ``4th month''.

(6) Subsections (b)(2)(A), (g)(3), and (h)(1) of section 6655 are each amended by striking ``3rd month'' and inserting

``4th month''.

(d) Effective Date.--The amendments made by this section shall apply to returns for taxable years beginning after December 31, 2013.

SEC. _03. MODIFICATION OF DUE DATES BY REGULATION.

In the case of returns for taxable years beginning after December 31, 2013, the Secretary of the Treasury or the Secretary's delegate shall modify appropriate regulations to provide as follows:

(1) The maximum extension for the returns of partnerships filing Form 1065 shall be a 6-month period beginning on the due date for filing the return (without regard to any extensions).

(2) The maximum extension for the returns of trusts and estates filing Form 1041 shall be a 5\1/2\-month period beginning on the due date for filing the return (without regard to any extensions).

(3) The maximum extension for the returns of employee benefit plans filing Form 5500 shall be an automatic 3\1/2\-month period beginning on the due date for filing the return

(without regard to any extensions).

(4) The maximum extension for the Forms 990 (series) returns of organizations exempt from income tax shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(5) The maximum extension for the returns of organizations exempt from income tax that are required to file Form 4720 returns of excise taxes shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(6) The maximum extension for the returns of trusts required to file Form 5227 shall be an automatic 6-month period beginning on the due date for filing the return

(without regard to any extensions).

(7) The maximum extension for the returns of Black Lung Benefit Trusts required to file Form 6069 returns of excise taxes shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(8) The maximum extension for a taxpayer required to file Form 8870 shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(9) The due date of Form 3520-A, Annual Information Return of a Foreign Trust with a United States Owner, shall be the 15th day of the 4th month after the close of the trust's taxable year, and the maximum extension shall be a 6-month period beginning on such day.

(10) The due date of Form TD F 90-22.1 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15, and with provision for an extension under rules similar to the rules of 26 C.F.R. 1.6081-5. For any taxpayer required to file such form for the first time, the Secretary of the Treasury may waive any penalty for failure to timely request or file an extension.

(11) Taxpayers filing Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, shall be allowed to extend the time for filing such form separately from the income tax return of the taxpayer, for an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

SEC. _04. CORPORATIONS PERMITTED STATUTORY AUTOMATIC 6-MONTH

EXTENSION OF INCOME TAX RETURNS.

(a) In General.--Section 6081(b) is amended by striking ``3 months'' and inserting ``6 months''.

(b) Effective Date.--The amendment made by this section shall apply to returns for taxable years beginning after December 31, 2013.

______

SA 3163. Mr. GRASSLEY (for himself and Mr. Roberts) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. _01. EXPANSION OF DECLARATORY JUDGMENT REMEDY TO TAX-

EXEMPT ORGANIZATIONS.

(a) In General.--Paragraph (1) of section 7428(a) is amended--

(1) in subparagraph (B) by inserting after ``509(a))'' the following: ``or as a private operating foundation (as defined in section 4942(j)(3))''; and

(2) by amending subparagraph (C) to read as follows:

``(C) with respect to the initial qualification or continuing qualification of an organization as an organization described in section 501(c) (other than paragraph (3)) or 501(d) which is exempt from tax under section 501(a), or''.

(b) Effective Date.--The amendments made by this section shall apply to pleadings filed with respect to determinations

(or requests for determinations) made after December 31, 2014.

______

SA 3164. Mr. JOHANNS submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 46, strike line 10 and all that follows through line 18.

______

SA 3165. Mr. HATCH (for himself, Mr. Alexander, Mr. Enzi, Ms. Collins, Mr. Cochran, and Mr. Crapo) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--REPEAL OF EMPLOYEE MANDATE

SEC. _ PROTECT JOB CREATION.

Sections 1513 and 1514 and subsections (e), (f), and (g) of section 10106 of the Patient Protection and Affordable Act

(and the amendments made by such sections and subsections) are repealed and the Internal Revenue Code of 1986 shall be applied and administered as if such provisions and amendments had never been acted.

______

SA 3166. Mr. HATCH (for himself, Mr. Alexander, Mr. Coats, Mr. Thune, Ms. Ayotte, Mr. McConnell, Mr. Enzi, Ms. Collins, Mr. Cochran, and Mr. Crapo) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--ELIMINATION OF INDIVIDUAL MANDATE

SEC. _01. RESTORING INDIVIDUAL LIBERTY.

Sections 1501 and 1502 and subsections (a), (b), (c), and

(d) of section 10106 of the Patient Protection and Affordable Care Act (and the amendments made by such sections and subsections) are repealed and the Internal Revenue Code of 1986 shall be applied and administered as if such provisions and amendments had never been enacted.

______

SA 3167. Mr. TOOMEY (for himself, Mr. Casey, Mr. Crapo, and Mr. Carper) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. CLARIFICATION OF ORPHAN DRUG EXCEPTION TO ANNUAL

FEE ON BRANDED PRESCRIPTION PHARMACEUTICAL

MANUFACTURERS AND EMPLOYERS.

(a) In General.--Paragraph (3) of section 9008(e) of the Patient Protection and Affordable Care Act (Public Law 111-148) is amended to read as follows:

``(3) Exclusion of orphan drug sales.--

``(A) In general.--The term `branded prescription drug sales' shall not include sales of any drug or biological product--

``(i) with respect to which a credit was allowed for any taxable year under section 45C of the Internal Revenue Code of 1986; or

``(ii) which is approved or licensed by the Food and Drug Administration for marketing solely for 1 or more rare diseases or conditions.

``(B) Limitation.--Subparagraph (A) shall not apply with respect to any drug or biological product after the date on which the drug or biological product is approved or licensed by the Food and Drug Administration for marketing for any indication other than the treatment of a rare disease or condition.

``(C) Rare disease or condition.--For purposes of this paragraph, the term `rare disease or condition' has the meaning given such term under section 45C(d)(1) of the Internal Revenue Code of 1986, except that in the case of any drug or biological product that has not been designated under section 526 of the Federal Food, Drug, and Cosmetic Act for a particular indication, determinations under such section 45C(d)(1) shall be made on the basis of the facts and circumstances as of the date such drug or biological product is approved or licensed by the Food and Drug Administration for marketing for the treatment of such disease or condition.''.

(b) Effective Date.--The amendment made by this section shall apply to branded prescription drug sales after the date of the enactment of this Act.

______

SA 3168. Mr. ENZI submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

After section 157, insert the following:

SEC. 158. ADDITIONAL TAX CREDITS FOR QUALIFYING SUPERCRITICAL

ADVANCED COAL PROJECTS.

(a) 30 Percent Credit Percentage.--Paragraph (3) of section 48A(a) is amended by inserting ``or (iv)'' after ``(iii)''.

(b) Supercritical Advanced Coal-Based Generation Technology Project Defined.--Subsection (c) of section 48A is amended by adding at the end the following:

``(8) The term `supercritical advanced coal-based generation technology project' means a qualifying advanced coal-based generation technology project which includes a coal-fired boiler that--

``(A) in lieu of the requirements under subsection

(f)(1)(A)(ii), reaches an electricity generating efficiency of at least 36 percent, and

``(B) operates at a minimum pressure of 3,200 pounds per square inch.''.

(c) Application Period for Certification.--Subparagraph (A) of section 48A(d)(2) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by adding at the end the following:

``(iii) for an allocation from the dollar amount specified in paragraph (3)(B)(iv) during the 3-year period beginning at earlier of the termination of the period described in clause

(ii) or the date prescribed by the Secretary.''.

(d) Aggregate Credits.--

(1) In general.--Subparagraph (A) of section 48A(d)(3) is amended by striking ``$2,550,000,000'' and inserting

``$3,800,000,000''.

(2) Supercritical advanced coal-based generation technology projects.--Subparagraph (B) of section 48A(d)(3)(B) is amended by striking ``and'' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting

``, and'', and by adding at the end the following:

``(iv) $1,250,000,000 for supercritical advanced coal-based generation technology projects the application for which is submitted during the period described in paragraph

(2)(A)(iii).''.

(e) Carbon Dioxide Sequester.--Subparagraph (G) of section 48A(e)(1) is amended by striking ``subsection (d)(2)(A)(ii)'' and inserting ``clause (ii) or (iii) of subsection

(d)(2)(A)''.

(f) Effective Date.--The amendments made by this section shall apply to periods after the date of the enactment of this Act under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

______

SA 3169. Mr. ENZI (for himself, Mr. Durbin, Mr. Alexander, Ms. Heitkamp, Mr. Rockefeller, Mr. King, Mr. Cardin, Ms. Landrieu, Mr. Franken, Mr. Whitehouse, Mr. Reed, Mr. Manchin, Mr. Johnson of South Dakota, Mr. Blunt, Mr. Udall of Colorado, and Ms. Collins) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE _--MARKETPLACE FAIRNESS

SEC. _01. SHORT TITLE.

This title may be cited as the ``Marketplace Fairness Act of 2013''.

SEC. _02. AUTHORIZATION TO REQUIRE COLLECTION OF SALES AND

USE TAXES.

(a) Streamlined Sales and Use Tax Agreement.--Each Member State under the Streamlined Sales and Use Tax Agreement is authorized to require all sellers not qualifying for the small seller exception described in subsection (c) to collect and remit sales and use taxes with respect to remote sales sourced to that Member State pursuant to the provisions of the Streamlined Sales and Use Tax Agreement, but only if any changes to the Streamlined Sales and Use Tax Agreement made after the date of the enactment of this Act are not in conflict with the minimum simplification requirements in subsection (b)(2). A State may exercise authority under this title beginning 180 days after the State publishes notice of the State's intent to exercise the authority under this title, but no earlier than the first day of the calendar quarter that is at least 180 days after the date of the enactment of this Act.

(b) Alternative.--A State that is not a Member State under the Streamlined Sales and Use Tax Agreement is authorized notwithstanding any other provision of law to require all sellers not qualifying for the small seller exception described in subsection (c) to collect and remit sales and use taxes with respect to remote sales sourced to that State, but only if the State adopts and implements the minimum simplification requirements in paragraph (2). Such authority shall commence beginning no earlier than the first day of the calendar quarter that is at least 6 months after the date that the State--

(1) enacts legislation to exercise the authority granted by this title--

(A) specifying the tax or taxes to which such authority and the minimum simplification requirements in paragraph (2) shall apply; and

(B) specifying the products and services otherwise subject to the tax or taxes identified by the State under subparagraph (A) to which the authority of this title shall not apply; and

(2) implements each of the following minimum simplification requirements:

(A) Provide--

(i) a single entity within the State responsible for all State and local sales and use tax administration, return processing, and audits for remote sales sourced to the State;

(ii) a single audit of a remote seller for all State and local taxing jurisdictions within that State; and

(iii) a single sales and use tax return to be used by remote sellers to be filed with the single entity responsible for tax administration.

A State may not require a remote seller to file sales and use tax returns any more frequently than returns are required for nonremote sellers or impose requirements on remote sellers that the State does not impose on nonremote sellers with respect to the collection of sales and use taxes under this title. No local jurisdiction may require a remote seller to submit a sales and use tax return or to collect sales and use taxes other than as provided by this paragraph.

(B) Provide a uniform sales and use tax base among the State and the local taxing jurisdictions within the State pursuant to paragraph (1).

(D) Provide--

(i) information indicating the taxability of products and services along with any product and service exemptions from sales and use tax in the State and a rates and boundary database;

(ii) software free of charge for remote sellers that calculates sales and use taxes due on each transaction at the time the transaction is completed, that files sales and use tax returns, and that is updated to reflect rate changes as described in subparagraph (H); and

(iii) certification procedures for persons to be approved as certified software providers.

For purposes of clause (iii), the software provided by certified software providers shall be capable of calculating and filing sales and use taxes in all States qualified under this title.

(E) Relieve remote sellers from liability to the State or locality for the incorrect collection, remittance, or noncollection of sales and use taxes, including any penalties or interest, if the liability is the result of an error or omission made by a certified software provider.

(F) Relieve certified software providers from liability to the State or locality for the incorrect collection, remittance, or noncollection of sales and use taxes, including any penalties or interest, if the liability is the result of misleading or inaccurate information provided by a remote seller.

(G) Relieve remote sellers and certified software providers from liability to the State or locality for incorrect collection, remittance, or noncollection of sales and use taxes, including any penalties or interest, if the liability is the result of incorrect information or software provided by the State.

(H) Provide remote sellers and certified software providers with 90 days notice of a rate change by the State or any locality in the State and update the information described in subparagraph (D)(i) accordingly and relieve any remote seller or certified software provider from liability for collecting sales and use taxes at the immediately preceding effective rate during the 90-day notice period if the required notice is not provided.

(c) Small Seller Exception.--A State is authorized to require a remote seller to collect sales and use taxes under this title only if the remote seller has gross annual receipts in total remote sales in the United States in the preceding calendar year exceeding $1,000,000. For purposes of determining whether the threshold in this section is met, the gross annual receipts from remote sales of 2 or more persons shall be aggregated if--

(1) such persons are related to the remote seller within the meaning of subsections (b) and (c) of section 267 or section 707(b)(1) of the Internal Revenue Code of 1986; or

(2) such persons have 1 or more ownership relationships and such relationships were designed with a principal purpose of avoiding the application of these rules.

SEC. _03. LIMITATIONS.

(a) In General.--Nothing in this title shall be construed as--

(1) subjecting a seller or any other person to franchise, income, occupation, or any other type of taxes, other than sales and use taxes;

(2) affecting the application of such taxes; or

(3) enlarging or reducing State authority to impose such taxes.

(b) No Effect on Nexus.--This title shall not be construed to create any nexus or alter the standards for determining nexus between a person and a State or locality.

(c) No Effect on Seller Choice.--Nothing in this title shall be construed to deny the ability of a remote seller to deploy and utilize a certified software provider of the seller's choice.

(d) Licensing and Regulatory Requirements.--Nothing in this title shall be construed as permitting or prohibiting a State from--

(1) licensing or regulating any person;

(2) requiring any person to qualify to transact intrastate business;

(3) subjecting any person to State or local taxes not related to the sale of products or services; or

(4) exercising authority over matters of interstate commerce.

(e) No New Taxes.--Nothing in this title shall be construed as encouraging a State to impose sales and use taxes on any products or services not subject to taxation prior to the date of the enactment of this Act.

(f) No Effect on Intrastate Sales.--The provisions of this title shall apply only to remote sales and shall not apply to intrastate sales or intrastate sourcing rules. States granted authority under section _02(a) shall comply with all intrastate provisions of the Streamlined Sales and Use Tax Agreement.

(g) No Effect on Mobile Telecommunications Sourcing Act.--Nothing in this title shall be construed as altering in any manner or preempting the Mobile Telecommunications Sourcing Act (4 U.S.C. 116-126).

SEC. _04. DEFINITIONS AND SPECIAL RULES.

In this title:

(1) Certified software provider.--The term ``certified software provider'' means a person that--

(A) provides software to remote sellers to facilitate State and local sales and use tax compliance pursuant to section _02(b)(2)(D)(ii); and

(B) is certified by a State to so provide such software.

(2) Locality; local.--The terms ``locality'' and ``local'' refer to any political subdivision of a State.

(3) Member state.--The term ``Member State''--

(A) means a Member State as that term is used under the Streamlined Sales and Use Tax Agreement as in effect on the date of the enactment of this Act; and

(B) does not include any associate member under the Streamlined Sales and Use Tax Agreement.

(4) Person.--The term ``person'' means an individual, trust, estate, fiduciary, partnership, corporation, limited liability company, or other legal entity, and a State or local government.

(5) Remote sale.--The term ``remote sale'' means a sale into a State, as determined under the sourcing rules under paragraph (7), in which the seller would not legally be required to pay, collect, or remit State or local sales and use taxes unless provided by this title.

(6) Remote seller.--The term ``remote seller'' means a person that makes remote sales in the State.

(7) Sourced.--For purposes of a State granted authority under section _02(b), the location to which a remote sale is sourced refers to the location where the product or service sold is received by the purchaser, based on the location indicated by instructions for delivery that the purchaser furnishes to the seller. When no delivery location is specified, the remote sale is sourced to the customer's address that is either known to the seller or, if not known, obtained by the seller during the consummation of the transaction, including the address of the customer's payment instrument if no other address is available. If an address is unknown and a billing address cannot be obtained, the remote sale is sourced to the address of the seller from which the remote sale was made. A State granted authority under section _02(a) shall comply with the sourcing provisions of the Streamlined Sales and Use Tax Agreement.

(8) State.--The term ``State'' means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States, and any tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).

(9) Streamlined sales and use tax agreement.--The term

``Streamlined Sales and Use Tax Agreement'' means the multi-State agreement with that title adopted on November 12, 2002, as in effect on the date of the enactment of this Act and as further amended from time to time.

SEC. _05. SEVERABILITY.

If any provision of this title or the application of such provision to any person or circumstance is held to be unconstitutional, the remainder of this title and the application of the provisions of such to any person or circumstance shall not be affected thereby.

SEC. _06. PREEMPTION.

Except as otherwise provided in this title, this title shall not be construed to preempt or limit any power exercised or to be exercised by a State or local jurisdiction under the law of such State or local jurisdiction or under any other Federal law.

______

SA 3170. Mr. TOOMEY (for himself, Mr. Lee, and Mr. Flake) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 47, strike line 10 and all that follows through page 53, line 3.

Beginning on page 56, strike line 4 and all that follows through page 59, line 4.

Beginning on page 59, strike line 7 and all that follows through page 60, line 2.

______

SA 3171. Mr. TOOMEY submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 23, strike line 5 and all that follows through line 21 and insert the following:

(a) Permanent Extension.--Section 45P is amended by striking subsection (f).

(b) Expansion of Credit.--

(1) Expansion to 100 percent of eligible differential wage payments.--Subsection (a) of section 45P is amended by striking ``20 percent of''.

(2) Adjustment for inflation.--Subsection (b) of section 45P is amended by adding at the end the following new paragraph:

``(4) Adjustment for inflation.--In the case of any taxable year beginning after 2014, the $20,000 amount in paragraph

(1) 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, by substituting `calendar year 2013' for

`calendar year 1992' in subparagraph (B) thereof.

If the amount as increased under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.''.

(3) Applicability to all employers.--

(A) In general.--Subsection (a) of section 45P, as amended by paragraph (1), is amended by striking ``eligible small business employer'' and inserting ``eligible employer''.

(B) Conforming amendments.--Paragraph (3) of section 45P(b) is amended--

(i) in subparagraph (A)--

(I) by striking ``eligible small business employer'' and inserting ``eligible employer'', and

(II) by striking ``any employer which'' and all that follows and inserting ``any employer which, under a written plan of the employer, provides eligible differential wage payments to every qualified employee of the employer.'', and

(ii) by striking ``Eligible small business employer'' in the heading and inserting ``Eligible employer''.

______

SA 3172. Mr. TOOMEY submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. PROHIBITION ON USE OF WAIVER THREATENING BALD

EAGLES.

(a) In General.--Subsection (e) of section 45 is amended by adding at the end the following new paragraph:

``(12) Protection of bald eagles.--

``(A) In general.--Sales shall be taken into account under this section only with respect to electricity produced by a taxpayer who does not have in effect a waiver granted by the Federal government or any agency or instrumentality thereof from any Federal law or provision thereof protecting the life, well-being, or habitat of the bald eagle.

``(B) Recapture of benefit.--In the case of any taxpayer--

``(i) who has in effect a waiver described in subparagraph

(A) as of the date of the enactment of this paragraph, and

``(ii) who has claimed the credit under section 38 by reason of this section for any preceding taxable year,

the tax imposed under subtitle A on the taxpayer for the taxable year that includes such date of enactment shall be increased by so much of such credit as was allowed under section 38, and the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which is equal to such amount.

``(C) Renunciation of waiver.--Any taxpayer to whom subparagraph (B) would otherwise apply (but for the second sentence of this subparagraph) may elect to renounce in writing the waiver described in subparagraph (A). If such renunciation is made to the Secretary and to the appropriate Federal officer of the agency that issued such waiver not later than 12 months after the date of the enactment of this paragraph, such taxpayer shall be exempt from the increase in tax under subparagraph (B).''.

(b) Effective Date.--The amendment made by this section shall apply to electricity produced and sold after the date of the enactment of this Act.

______

SA 3173. Mr. ROBERTS submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. _01. REPEAL OF DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY

IF FOR PRESCRIBED DRUG OR INSULIN.

______

SA 3174. Mr. TOOMEY (for himself, Mr. Burr, Mr. Cornyn, Mr. Crapo, Mr. Coats, Ms. Ayotte, Mr. McConnell, Mr. Alexander, Mr. Roberts, Mr. Isakson, Ms. Collins, Mr. Enzi, and Mr. Hatch) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--OTHER PROVISIONS

SEC. ___. REPEAL OF MEDICAL DEVICE TAX.

(a) In General.--Chapter 32 is amended by striking subchapter E.

(b) Conforming Amendments.--

(1) Subsection (a) of section 4221 is amended by striking the last sentence.

(2) Paragraph (2) of section 6416(b) is amended by striking the last sentence.

(c) Clerical Amendment.--The table of subchapters for chapter 32 is amended by striking the item related to subchapter E.

(d) Effective Date.--The amendments made by this section shall apply to sales after the date of the enactment of this Act.

______

SA 3175. Mr. MENENDEZ submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page _, between lines _ and _, insert the following:

``(12) Special rule for certain qualified facilities.--

______

SA 3176. Mr. KIRK submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SHIFT IN THE COLLECTION OF THE PAYMENT FOR THE

TRANSITIONAL REINSURANCE PROGRAM.

(a) In General.--Section 1341(b) of the Patient Protection and Affordable Care Act (42 U.S.C. 18061(b)) is amended--

(1) in paragraph (1)--

(A) in subparagraph (A)--

(i) by inserting ``beginning on January 1, 2018,'' after

``required to make payments''; and

(ii) by striking ``any plan year beginning in the 3-year period'' and all that follows through the end and inserting

``payments made under subparagraph (C) (as specified in paragraph (3));''

(B) in subparagraph (B), by striking ``and uses'' and all that follows through the period and inserting ``; and' '' and

``(C) the applicable reinsurance entity makes reinsurance payments to health insurance issuers described in subparagraph (A) that cover high risk individuals in the individual market (excluding grandfathered health plans) for any plan year beginning in the 3-year period beginning January 1, 2014, in an aggregate amount of up to the total of the aggregate contribution amounts described in paragraph

(3)(B)(iv), subject to paragraph (4).'';

(2) in paragraph (2), by striking ``paragraph (1)(B)'' and inserting ``paragraph (1)(C)'';

(3) in paragraph (3)--

(A) in subparagraph (A), by striking ``2014'' and inserting

``2018''; and

(B) in subparagraph (B)--

(i) in clause (ii), by striking ``administrative'' and inserting ``operational'';

(ii) by redesignating clauses (iii) and (iv) as clauses

(iv) and (v), respectively;

(iii) by inserting after clause (ii), the following:

``(iii) the aggregate contribution amount for all States shall be based on the total amount of reinsurance payments made under paragraph (1)(C);'';

(iv) by striking clause (iv), as so redesignated, and inserting the following:

``(iv) the aggregate contribution amount collected under clause (iii) shall, without regard to amounts described in clause (ii), be limited to $10,000,000,000 based on the plan years beginning in 2014, $6,000,000,000 based on the plan years beginning in 2015, and $4,000,000,000 based on the plan years beginning in 2016;'';

(v) in clause (v), as so redesignated, by striking ``clause

(iii)'' each place that such term appears and inserting

``clause (iv)'';

(vi) by inserting after clause (v), the following:

``(vi) in addition to the contribution amounts under clauses (iii), (iv), and (v), each issuer's contribution amount--

``(I) shall reflect its proportionate share of an additional $20,300,000 for operational expenses for reinsurance payments for calendar year 2014 and for reinsurance collections for calendar year 2018;

``(II) shall reflect its proportionate share of operational expenses for reinsurance payments for calendar year 2015 and for reinsurance collections for calendar year 2019; and

``(III) shall reflect its proportionate share of operational expenses for reinsurance payments for calendar year 2016 and for reinsurance collections for calendar year 2020; and

``(vii) collection of the contribution amounts provided for in clauses (ii) through (vi) shall be initiated--

``(I) for calendar year 2014, not earlier than January 1, 2018;

``(II) for calendar year 2015, not earlier than January 1, 2019; and

``(III) for calendar year 2016, not earlier than January 1, 2020.'';

(4) in paragraph (4)--

(A) in subparagraph (A)--

(i) by striking ``contribution amounts collected for any calendar year'' and inserting ``amount provided under paragraph (5) for reinsurance payments described in paragraph

(1)(C)''; and

(ii) by striking ``; and'' and inserting a period;

(B) by striking subparagraph (B);

``the contribution'' in subparagraph (A) and inserting ``that the contribution''; and

(D) in the flush matter at the end, by striking ``paragraph

(3)(B)(iv)'' and inserting the following: ``paragraph

(3)(B)(v) and any amounts collected under clauses (ii) of paragraph (3)(B) that, when combined with the funding provided for under paragraph (5), exceed the aggregate amount permitted for making the reinsurance payments described in paragraph (1)(C) and to fund the operational expenses of applicable reinsurance entities,''; and

(5) by adding at the end the following:

``(5) Funding.--To carry out this section, there is appropriated, out of any money in the Treasury not otherwise appropriated, an amount equal to the aggregate amount to be collected for plan years beginning in 2014 set forth in paragraph (3)(B)(iv) for reinsurance payments described in paragraph (1)(C), and an amount equal to the contribution amounts set forth in paragraph (3)(B)(vi) to fund operational expenses of applicable reinsurance entities.''.

(b) Rule of Construction.--Nothing in the amendments made by this section shall be construed to increase the amount of payments to be collected under subsection (b)(1)(A) or to decrease the amount of the reinsurance payments to be made under subsection (b)(1)(C) of section 1341 of the Patient Protection and Affordable Care Act (42 U.S.C. 18061).

(c) Medical Loss Ratio.--The Secretary of Health and Human Services shall promulgate regulations or guidance to ensure that health insurance issuers reflect changes made in section 1341 of the Patient Protection and Affordable Care Act with section 2718 of the Public Health Service Act (42 U.S.C.1 300gg-18) and sections 1342 and 1312(c) of the Patient Protection and Affordable Care Act (42 U.S.C. 18063 and 18032(c)).

______

SA 3177. Mr. CARDIN (for himself, Mr. Roberts, Mr. Thune, Mr. Moran, Mr. Whitehouse, Mr. Crapo, Mr. Blunt, Ms. Collins, Mr. Leahy, Ms. Landrieu, Mr. Franken, Mr. Sanders, Ms. Stabenow, Mr. Brown, and Mr. Johnson of South Dakota) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--PROMOTION AND EXPANSION OF PRIVATE EMPLOYEE OWNERSHIP ACT OF

2014

SEC. _01. SHORT TITLE.

This title may be cited as the ``Promotion and Expansion of Private Employee Ownership Act of 2014''.

SEC. _02. FINDINGS.

Congress finds that--

(1) on January 1, 1998--nearly 25 years after the Employee Retirement Income Security Act of 1974 was enacted and the employee stock ownership plan (hereafter in this section referred to as an ``ESOP'') was created--employees were first permitted to be owners of subchapter S corporations pursuant to the Small Business Job Protection Act of 1996 (Public Law 104-188);

(2) with the passage of the Taxpayer Relief Act of 1997

(Public Law 105-34), Congress designed incentives to encourage businesses to become ESOP-owned S corporations;

(3) since that time, several thousand companies have become ESOP-owned S corporations, creating an ownership interest for several million Americans in companies in every State in the country, in industries ranging from heavy manufacturing to technology development to services;

(4) while estimates show that 40 percent of working Americans have no formal retirement account at all, every United States worker who is an employee-owner of an S corporation company through an ESOP has a valuable qualified retirement savings account;

(5) recent studies have shown that employees of ESOP-owned S corporations enjoy greater job stability than employees of comparable companies;

(6) studies also show that employee-owners of S corporation ESOP companies have amassed meaningful retirement savings through their S ESOP accounts that will give them the means to retire with dignity;

(7) under the Small Business Act (15 U.S.C. 631 et seq.) and the regulations promulgated by the Administrator of the Small Business Administration, a small business concern that was eligible under the Small Business Act for the numerous preferences of the Act is denied treatment as a small business concern after an ESOP acquires more than 49 percent of the business, even if the number of employees, the revenue of the small business concern, and the racial, gender, or other criteria used under the Act to determine whether the small business concern is eligible for benefits under the Act remain the same, solely because of the acquisition by the ESOP; and

(8) it is the goal of Congress to both preserve and foster employee ownership of S corporations through ESOPs.

SEC. _03. DEFERRAL OF TAX FOR CERTAIN SALES OF EMPLOYER STOCK

TO EMPLOYEE STOCK OWNERSHIP PLAN SPONSORED BY S

CORPORATION.

(a) In General.--Subparagraph (A) of section 1042(c)(1) of the Internal Revenue Code of 1986 (defining qualified securities) is amended by striking ``domestic C corporation'' and inserting ``domestic corporation''.

(b) Effective Date.--The amendment made by subsection (a) shall apply to sales after the date of the enactment of this Act.

SEC. _04. DEPARTMENT OF TREASURY TECHNICAL ASSISTANCE OFFICE.

(a) Establishment Required.--Before the end of the 90-day period beginning on the date of enactment of this Act, the Secretary of Treasury shall establish the S Corporation Employee Ownership Assistance Office to foster increased employee ownership of S corporations.

(b) Duties of the Office.--The S Corporation Employee Ownership Assistance Office shall provide--

(1) education and outreach to inform companies and individuals about the possibilities and benefits of employee ownership of S corporations; and

(2) technical assistance to assist S corporations in sponsoring employee stock ownership plans.

SEC. _05. SMALL BUSINESS AND EMPLOYEE STOCK OWNERSHIP.

(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is amended--

(1) by redesignating section 47 as section 48; and

(2) by inserting after section 46 the following:

``SEC. 47. EMPLOYEE STOCK OWNERSHIP PLANS.

``(a) Definitions.--In this section--

``(1) the term `ESOP' means an employee stock ownership plan, as defined in section 4975(e)(7) of the Internal Revenue Code of 1986, as amended; and

``(2) the term `ESOP business concern' means a business concern that was a small business concern eligible for a loan or to participate in a contracting assistance or business development program under this Act before the date on which more than 49 percent of the business concern was acquired by an ESOP.

``(b) Continued Eligibility.--In determining whether an ESOP business concern qualifies as a small business concern for purposes of a loan, preference, or other program under this Act, each ESOP participant shall be treated as directly owning his or her proportionate share of the stock in the ESOP business concern owned by the ESOP.''.

(b) Effective Date.--The amendments made by this section shall take effect on January 1 of the first calendar year beginning after the date of the enactment of this Act.

______

SA 3178. Ms. LANDRIEU submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

On page 56, between lines 23 and 24, insert the following:

(3) Inclusion of liquid derived from natural gas.--Subparagraph (E) of section 6426(d)(2) is amended to read as follows:

``(E) any liquid fuel--

``(i) which meets the requirements of paragraph (4) and which is derived from coal (including peat) through the Fischer-Tropsch process, or

``(ii) which is derived from natural gas through such process,''.

______

SA 3179. Mr. GRASSLEY (for himself and Mr. Nelson) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS

SEC. _01. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

(a) Employment Taxes.--Chapter 25 is amended by adding at the end the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

``(a) General Rules.--For purposes of the taxes, and other obligations, imposed by this subtitle--

``(1) a certified professional employer organization shall be treated as the employer (and no other person shall be treated as the employer) of any work site employee performing services for any customer of such organization, but only with respect to remuneration remitted by such organization to such work site employee, and

``(2) exclusions, definitions, and other rules which are based on the type of employer and which would (but for paragraph (1)) apply shall apply with respect to such taxes imposed on such remuneration.

``(b) Successor Employer Status.--For purposes of sections 3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--

``(1) a certified professional employer organization entering into a service contract with a customer with respect to a work site employee shall be treated as a successor employer and the customer shall be treated as a predecessor employer during the term of such service contract, and

``(2) a customer whose service contract with a certified professional employer organization is terminated with respect to a work site employee shall be treated as a successor employer and the certified professional employer organization shall be treated as a predecessor employer.

``(c) Liability of Certified Professional Employer Organization.--Solely for purposes of its liability for the taxes, and other obligations, imposed by this subtitle--

``(1) a certified professional employer organization shall be treated as the employer of any individual (other than a work site employee or a person described in subsection (f)) who is performing services covered by a contract meeting the requirements of section 7705(e)(2), but only with respect to remuneration remitted by such organization to such individual, and

``(d) Treatment of Credits.--

``(1) In general.--For purposes of any credit specified in paragraph (2)--

``(A) such credit with respect to a work site employee performing services for the customer applies to the customer, not the certified professional employer organization,

``(B) the customer, and not the certified professional employer organization, shall take into account wages and employment taxes--

``(i) paid by the certified professional employer organization with respect to the work site employee, and

``(ii) for which the certified professional employer organization receives payment from the customer, and

``(C) the certified professional employer organization shall furnish the customer with any information necessary for the customer to claim such credit.

``(2) Credits specified.--A credit is specified in this paragraph if such credit is allowed under--

``(A) section 41 (credit for increasing research activity),

``(B) section 45A (Indian employment credit),

``(C) section 45B (credit for portion of employer social security taxes paid with respect to employee cash tips),

``(D) section 45C (clinical testing expenses for certain drugs for rare diseases or conditions),

``(E) section 45R (employee health insurance expenses of small employers),

``(F) section 51 (work opportunity credit),

``(G) section 1396 (empowerment zone employment credit),

``(H) 1400(d) (DC Zone employment credit),

``(I) Section 1400H (renewal community employment credit), and

``(J) any other section as provided by the Secretary.

``(e) Special Rule for Related Party.--This section shall not apply in the case of a customer which bears a relationship to a certified professional employer organization described in section 267(b) or 707(b). For purposes of the preceding sentence, such sections shall be applied by substituting `10 percent' for `50 percent'.

``(f) Special Rule for Certain Individuals.--For purposes of the taxes imposed under this subtitle, an individual with net earnings from self-employment derived from the customer's trade or business is not a work site employee with respect to remuneration paid by a certified professional employer organization.

``(g) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.''.

(b) Certified Professional Employer Organization Defined.--Chapter 79 is amended by adding at the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS

DEFINED.

``(a) In General.--For purposes of this title, the term

`certified professional employer organization' means a person who has been certified by the Secretary for purposes of section 3511 as meeting the requirements of subsection (b).

``(b) General Requirements.--A person meets the requirements of this subsection if such person--

``(1) demonstrates that such person (and any owner, officer, and such other persons as may be specified in regulations) meets such requirements as the Secretary shall establish with respect to tax status, background, experience, business location, and annual financial audits,

``(2) computes its taxable income using an accrual method of accounting unless the Secretary approves another method,

``(3) agrees that it will satisfy the bond and independent financial review requirements of subsection (c) on an ongoing basis,

``(4) agrees that it will satisfy such reporting obligations as may be imposed by the Secretary,

``(5) agrees to verify on such periodic basis as the Secretary may prescribe that it continues to meet the requirements of this subsection, and

``(6) agrees to notify the Secretary in writing within such time as the Secretary may prescribe of any change that materially affects whether it continues to meet the requirements of this subsection.

``(c) Bond and Independent Financial Review Requirements.--

``(1) In general.--An organization meets the requirements of this paragraph if such organization--

``(A) meets the bond requirements of paragraph (2), and

``(B) meets the independent financial review requirements of paragraph (3).

``(2) Bond.--

``(A) In general.--A certified professional employer organization meets the requirements of this paragraph if the organization has posted a bond for the payment of taxes under subtitle C (in a form acceptable to the Secretary) in an amount at least equal to the amount specified in subparagraph

(B).

``(B) Amount of bond.--For the period April 1 of any calendar year through March 31 of the following calendar year, the amount of the bond required is equal to the greater of--

``(i) 5 percent of the organization's liability under section 3511 for taxes imposed by subtitle C during the preceding calendar year (but not to exceed $1,000,000), or

``(ii) $50,000.

``(3) Independent financial review requirements.--A certified professional employer organization meets the requirements of this paragraph if such organization--

``(A) has, as of the most recent review date, caused to be prepared and provided to the Secretary (in such manner as the Secretary may prescribe) an opinion of an independent certified public accountant that the certified professional employer organization's financial statements are presented fairly in accordance with generally accepted accounting principles, and

``(B) provides, not later than the last day of the second month beginning after the end of each calendar quarter, to the Secretary from an independent certified public accountant an assertion regarding Federal employment tax payments and an examination level attestation on such assertion.

Such assertion shall state that the organization has withheld and made deposits of all taxes imposed by chapters 21, 22, and 24 of the Internal Revenue Code in accordance with regulations imposed by the Secretary for such calendar quarter and such examination level attestation shall state that such assertion is fairly stated, in all material respects.

``(4) Controlled group rules.--For purposes of the requirements of paragraphs (2) and (3), all professional employer organizations that are members of a controlled group within the meaning of sections 414(b) and (c) shall be treated as a single organization.

``(5) Failure to file assertion and attestation.--If the certified professional employer organization fails to file the assertion and attestation required by paragraph (3) with respect to any calendar quarter, then the requirements of paragraph (3) with respect to such failure shall be treated as not satisfied for the period beginning on the due date for such attestation.

``(6) Review date.--For purposes of paragraph (3)(A), the review date shall be 6 months after the completion of the organization's fiscal year.

``(d) Suspension and Revocation Authority.--The Secretary may suspend or revoke a certification of any person under subsection (b) for purposes of section 3511 if the Secretary determines that such person is not satisfying the representations or requirements of subsections (b) or (c), or fails to satisfy applicable accounting, reporting, payment, or deposit requirements.

``(e) Work Site Employee.--For purposes of this title--

``(1) In general.--The term `work site employee' means, with respect to a certified professional employer organization, an individual who--

``(A) performs services for a customer pursuant to a contract which is between such customer and the certified professional employer organization and which meets the requirements of paragraph (2), and

``(B) performs services at a work site meeting the requirements of paragraph (3).

``(2) Service contract requirements.--A contract meets the requirements of this paragraph with respect to an individual performing services for a customer if such contract is in writing and provides that the certified professional employer organization shall--

``(A) assume responsibility for payment of wages to such individual, without regard to the receipt or adequacy of payment from the customer for such services,

``(B) assume responsibility for reporting, withholding, and paying any applicable taxes under subtitle C, with respect to such individual's wages, without regard to the receipt or adequacy of payment from the customer for such services,

``(C) assume responsibility for any employee benefits which the service contract may require the organization to provide, without regard to the receipt or adequacy of payment from the customer for such services,

``(D) assume responsibility for hiring, firing, and recruiting workers in addition to the customer's responsibility for hiring, firing and recruiting workers,

``(E) maintain employee records relating to such individual, and

``(F) agree to be treated as a certified professional employer organization for purposes of section 3511 with respect to such individual.

``(3) Work site coverage requirement.--The requirements of this paragraph are met with respect to an individual if at least 85 percent of the individuals performing services for the customer at the work site where such individual performs services are subject to 1 or more contracts with the certified professional employer organization which meet the requirements of paragraph (2) (but not taking into account those individuals who are excluded employees within the meaning of section 414(q)(5)).

``(f) Determination of Employment Status.--Except to the extent necessary for purposes of section 3511, nothing in this section shall be construed to affect the determination of who is an employee or employer for purposes of this title.

``(g) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.''.

(1) Section 3302 is amended by adding at the end the following new subsection:

``(h) Treatment of Certified Professional Employer Organizations.--If a certified professional employer organization (as defined in section 7705), or a customer of such organization, makes a contribution to the State's unemployment fund with respect to a work site employee, such organization shall be eligible for the credits available under this section with respect to such contribution.''.

(2) Section 3303(a) is amended--

(A) by striking the period at the end of paragraph (3) and inserting ``; and'' and by inserting after paragraph (3) the following new paragraph:

``(4) if the taxpayer is a certified professional employer organization (as defined in section 7705) that is treated as the employer under section 3511, such certified professional employer organization is permitted to collect and remit, in accordance with paragraphs (1), (2), and (3), contributions during the taxable year to the State unemployment fund with respect to a work site employee.'', and

(B) in the last sentence--

(i) by striking ``paragraphs (1), (2), and (3)'' and inserting ``paragraphs (1), (2), (3), and (4)'', and

(ii) by striking ``paragraph (1), (2), or (3)'' and inserting ``paragraph (1), (2), (3), or (4)''.

(3) Section 6053(c) is amended by adding at the end the following new paragraph:

``(8) Certified professional employer organizations.--For purposes of any report required by this subsection, in the case of a certified professional employer organization that is treated under section 3511 as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified professional employer organization shall furnish to the customer any information necessary to complete such reporting no later than such time as the Secretary shall prescribe.''.

(d) Clerical Amendments.--

(1) The table of sections for chapter 25 is amended by adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations.''.

(2) The table of sections for chapter 79 is amended by inserting after the item relating to section 7704 the following new item:

``Sec. 7705. Certified professional employer organizations defined.''.

(e) Reporting Requirements and Obligations.--The Secretary of the Treasury shall develop such reporting and recordkeeping rules, regulations, and procedures as the Secretary determines necessary or appropriate to ensure compliance with the amendments made by this section with respect to entities applying for certification as certified professional employer organizations or entities that have been so certified. Such rules shall include--

(1) notification of the Secretary in the case of the commencement or termination of a service contract described in section 7705(e)(2) of the Internal Revenue Code of 1986 between such a person and a customer, and the employer identification number of such customer, and

(2) such other information as the Secretary determines is essential to promote compliance with respect to the credits identified in section 3511(d) of such Code, and

shall be designed in a manner which streamlines, to the extent possible, the application of requirements of such amendments, the exchange of information between a certified professional employer organization and its customers, and the reporting and recordkeeping obligations of the certified professional employer organization.

(f) User Fees.--Subsection (b) of section 7528 is amended by adding at the end the following new paragraph:

``(4) Certified professional employer organizations.--The annual fee charged under the program in connection with the ongoing certification by the Secretary of a professional employer organization under section 7705 shall not exceed

$1,000.''.

(g) Effective Dates.--

(1) In general.--The amendments made by this section shall apply with respect to wages for services performed on or after January 1 of the first calendar year beginning more than 12 months after the date of the enactment of this Act.

(2) Certification program.--The Secretary of the Treasury shall establish the certification program described in section 7705(b) of the Internal Revenue Code of 1986, as added by subsection (b), not later than 6 months before the effective date determined under paragraph (1).

(h) No Inference.--Nothing contained in this section or the amendments made by this section shall be construed to create any inference with respect to the determination of who is an employee or employer--

(1) for Federal tax purposes (other than the purposes set forth in the amendments made by this section), or

(2) for purposes of any other provision of law.

______

SA 3180. Mr. COONS (for himself, Mr. Moran, Ms. Stabenow, Ms. Murkowski, and Ms. Collins) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--MASTER LIMITED PARTNERSHIPS

SEC. _01. SHORT TITLE.

This title may be cited as the ``Master Limited Partnerships Parity Act''.

SEC. _02. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP

STRUCTURE TO ENERGY POWER GENERATION PROJECTS,

TRANSPORTATION FUELS, AND RELATED ENERGY

ACTIVITIES.

(a) In General.--Subparagraph (E) of section 7704(d)(1) is amended--

(1) by striking ``income and gains derived from the exploration'' and inserting ``income and gains derived from the following:

``(i) Minerals, natural resources, etc.--The exploration'',

(2) by inserting ``or'' before ``industrial source'',

(3) by inserting a period after ``carbon dioxide'', and

(4) by striking ``, or the transportation or storage'' and all that follows and inserting the following:

``(ii) Renewable energy.--The generation of electric power exclusively utilizing any resource described in section 45(c)(1) or energy property described in section 48

(determined without regard to any termination date), or in the case of a facility described in paragraph (3) or (7) of section 45(d) (determined without regard to any placed in service date or date by which construction of the facility is required to begin), the accepting or processing of such resource.

``(iii) Electricity storage devices.--The receipt and sale of electric power that has been stored in a device directly connected to the grid.

``(iv) Combined heat and power.--The generation, storage, or distribution of thermal energy exclusively utilizing property described in section 48(c)(3) (determined without regard to subparagraphs (B) and (D) thereof and without regard to any placed in service date).

``(v) Renewable thermal energy.--The generation, storage, or distribution of thermal energy exclusively using any resource described in section 45(c)(1) or energy property described in clause (i) or (iii) of section 48(a)(3)(A).

``(vi) Waste heat to power.--The use of recoverable waste energy, as defined in section 371(5) of the Energy Policy and Conservation Act (42 U.S.C. 6341(5)) (as in effect on the date of the enactment of the Master Limited Partnerships Parity Act).

``(vii) Renewable fuel infrastructure.--The storage or transportation of any fuel described in subsection (b), (c),

(d), or (e) of section 6426.

``(viii) Renewable fuels.--The production, storage, or transportation of any renewable fuel described in section 211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J))

(as in effect on the date of the enactment of the Master Limited Partnerships Parity Act) or section 40A(d)(1).

``(ix) Renewable chemicals.--The production, storage, or transportation of any renewable chemical (as defined in paragraph (6)).

``(x) Energy efficient buildings.--The audit and installation through contract or other agreement of any energy efficient building property described in section 179D(c)(1).

``(xi) Gasification with sequestration.--The production of any product from a project that meets the requirements of subparagraphs (A) and (B) of section 48B(c)(1) and that separates and sequesters in secure geological storage (as determined under section 45Q(d)(2)) at least 75 percent of such project's total qualified carbon dioxide (as defined in section 45Q(b)).

``(xii) Carbon capture and sequestration.--The generation or storage of electric power produced from any facility which is a qualified facility described in section 45Q(c) and which disposes of any captured qualified carbon dioxide (as defined in section 45Q(b)) in secure geological storage (as determined under section 45Q(d)(2)).''.

(b) Renewable Chemical.--Section 7704(d) is amended by adding at the end the following new paragraph:

``(6) Renewable chemical.--The term `renewable chemical' means a monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass (as defined in section 9001(12) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101(12)), as in effect on the date of the enactment of the Master Limited Partnerships Parity Act).''.

(c) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act, in taxable years ending after such date.

______

SA 3181. Mr. LEVIN (for himself, Mr. Brown, Mrs. Shaheen, Ms. Hirono, and Mr. Whitehouse) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 135.

______

SA 3182. Mr. CARDIN (for himself, Mrs. Feinstein, and Mr. Schatz) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 151 and insert the following:

SEC. 151. EXTENSION AND MODIFICATION OF CREDIT FOR

NONBUSINESS ENERGY PROPERTY.

(a) Treatment in 2014.--

(1) In general.--Paragraph (2) of section 25C(g) is amended by striking ``December 31, 2013'' and inserting ``December 31, 2014''.

(2) Updated energy star requirements for windows, doors, skylights, and roofing.--

(A) In general.--Paragraph (1) of section 25C(c) is amended by striking ``which meets'' and all that follows through

``requirements)''.

(B) Energy efficient building envelope component.--Subsection (c) of section 25C is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:

``(2) Energy efficient building envelope component.--The term `energy efficient building envelope component' means a building envelope component which meets--

``(A) applicable Energy Star program requirements, in the case of a roof or roof products,

``(B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and

``(C) the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, in the case of any other component.''.

``(D) any roof or roof products which are installed on a dwelling unit and are specifically and primarily designed to reduce the heat gain of such dwelling unit.''.

(3) Separate standards for tankless and storage water heaters.--

(A) In general.--Subparagraph (D) of section 25C(d)(3) is amended by striking ``which has either'' and all that follows and inserting ``which has either--

``(i) in the case of a storage water heater, an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent, and

``(ii) in the case of any other water heater, an energy factor of at least 0.90 or a thermal efficiency of at least 90 percent, and''.

(B) Storage water heaters.--Paragraph (3) of section 25C(d) is amended by adding at the end the following flush sentence:

``For purposes of subparagraph (D)(i), the term `storage water heater' means a water heater that has a water storage capacity of more than 20 gallons but not more than 55 gallons.''.

(4) Modification of testing standards for biomass stoves.--Subparagraph (E) of section 25C(d)(3) is amended by inserting before the period the following: ``, when tested using the higher heating value of the fuel and in accordance with the Canadian Standards Administration B415.1 test protocol''.

(5) Separate standard for oil hot water boilers.--Paragraph

(4) of section 25C(d) is amended by striking ``95'' and inserting ``95 (90 in the case of an oil hot water boiler)''.

(6) Effective date.--The amendments made by this subsection shall apply to property placed in service after December 31, 2013.

(b) Treatment in 2015.--

(1) Performance based home energy improvements.--Subpart A of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.

``(a) In General.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year for a qualified whole home energy efficiency retrofit an amount determined under subsection (b).

``(b) Amount Determined.--

``(1) In general.--Subject to paragraph (4), the amount determined under this subsection is equal to--

``(A) the base amount under paragraph (2), increased by

``(B) the amount determined under paragraph (3).

``(2) Base amount.--For purposes of paragraph (1)(A), the base amount is $2,000, but only if the energy use for the residence is reduced by at least 20 percent below the baseline energy use for such residence as calculated according to paragraph (5).

``(3) Increase amount.--For purposes of paragraph (1)(B), the amount determined under this paragraph is $500 for each additional 5 percentage point reduction in energy use.

``(4) Limitation.--In no event shall the amount determined under this subsection exceed the lesser of--

``(A) $5,000 with respect to any residence, or

``(B) 30 percent of the qualified home energy efficiency expenditures paid or incurred by the taxpayer under subsection (c) with respect to such residence.

``(5) Determination of energy use reduction.--For purposes of this subsection--

``(A) In general.--The reduction in energy use for any residence shall be determined by modeling the annual predicted percentage reduction in total energy costs for heating, cooling, hot water, and permanent lighting. It shall be modeled using computer modeling software approved under subsection (d)(2) and a baseline energy use calculated according to subsection (d)(1)(C).

``(B) Energy costs.--For purposes of subparagraph (A), the energy cost per unit of fuel for each fuel type shall be determined by dividing the total actual energy bill for the residence for that fuel type for the most recent available 12-month period by the total energy units of that fuel type used over the same period.

``(c) Qualified Home Energy Efficiency Expenditures.--For purposes of this section, the term `qualified home energy efficiency expenditures'--

``(1) means any amount paid or incurred by the taxpayer during the taxable year for a qualified whole home energy efficiency retrofit, including the cost of diagnostic procedures, labor, and modeling,

``(2) includes only measures that have an average estimated life of 5 years or more as determined by the Secretary, after consultation with the Secretary of Energy, and

``(3) does not include any amount which is paid or incurred in connection with any expansion of the building envelope of the residence.

``(d) Qualified Whole Home Energy Efficiency Retrofit.--For purposes of this section--

``(1) In general.--The term `qualified whole home energy efficiency retrofit' means the implementation of measures placed in service during the taxable year intended to reduce the energy use of the principal residence of the taxpayer which is located in the United States. A qualified whole home energy efficiency retrofit shall--

``(A) subject to paragraph (4), be designed, implemented, and installed by a contractor which is--

``(i) accredited by the Building Performance Institute

(hereafter in this section referred to as `BPI') or a preexisting BPI accreditation-based State certification program with enhancements to achieve State energy policy,

``(ii) a Residential Energy Services Network (hereafter in this section referred to as `RESNET') accredited Energy Smart Home Performance Team, or

``(iii) accredited by an equivalent certification program approved by the Secretary, after consultation with the Secretary of Energy, for this purpose,

``(B) install a set of measures modeled to achieve a reduction in energy use of at least 20 percent below the baseline energy use established in subparagraph (C), using computer modeling software approved under paragraph (2),

``(C) establish the baseline energy use by calibrating the model using sections 3 and 4 and Annex D of BPI Standard BPI-2400-S-2011: Standardized Qualification of Whole House Energy Savings Estimates, or an equivalent standard approved by the Secretary, after consultation with Secretary of Energy, for this purpose,

``(D) document the measures implemented in the residence through photographs taken before and after the retrofit, including photographs of its visible energy systems and envelope as relevant, and

``(E) implement a test-out procedure, following guidelines of the applicable certification program specified under clause (i) or (ii) of subparagraph (A), or equivalent guidelines approved by the Secretary, after consultation with the Secretary of Energy, for this purpose, to ensure--

``(i) the safe operation of all systems post retrofit, and

For purposes of subparagraph (A)(iii), an organization or State may submit an equivalent certification program for approval by the Secretary, in consultation with the Secretary of Energy. The Secretary shall approve or deny such submission not later than 180 days after receipt, and, if the Secretary fails to respond in that time period, the submitted equivalent certification program shall be considered approved.

``(2) Approved modeling software.--For purposes of paragraph (1)(B), the contractor (or, if applicable, the person described in paragraph (4)) shall use modeling software certified by RESNET as following the software verification test suites in section 4.2.1 of RESNET Publication No. 06-001 or certified by an alternative organization as following an equivalent standard, as approved by the Secretary, after consultation with the Secretary of Energy, for this purpose.

``(3) Documentation.--The Secretary, after consultation with the Secretary of Energy, shall prescribe regulations directing what specific documentation is required to be retained or submitted by the taxpayer in order to claim the credit under this section, which shall include, in addition to the photographs under paragraph (1)(D), a form approved by the Secretary that is completed and signed by the qualified whole home energy efficiency retrofit contractor under penalties of perjury. Such form shall include--

``(A) a statement that the contractor (or, if applicable, the person described in paragraph (4)) followed the specified procedures for establishing baseline energy use and estimating reduction in energy use,

``(B) the name of the software used for calculating the baseline energy use and reduction in energy use, the percentage reduction in projected energy savings achieved, and a statement that such software was certified for this program by the Secretary, after consultation with the Secretary of Energy,

``(C) a statement that the contractor (or, if applicable, the person described in paragraph (4)) will retain the details of the calculations and underlying energy bills for 5 years and will make such details available for inspection by the Secretary or the Secretary of Energy, if so requested,

``(D) a list of measures installed and a statement that all measures included in the reduction in energy use estimate are included in, and installed according to, standards of the applicable certification program specified under clause (i) or (ii) of subparagraph (A), or equivalent standards approved by the Secretary, after consultation with the Secretary of Energy,

``(E) a statement that the contractor (or, if applicable, the person described in paragraph (4)) meets the requirements of paragraph (1)(A), and

``(F) documentation of the total cost of the project in order to comply with the limitation under subsection

(b)(4)(B).

``(4) Certified home energy rater.--For purposes of paragraph (1)(A), a contractor shall be deemed to have satisfied the accreditation requirement under such paragraph if the contractor enters into a contract with a person that satisfies such accreditation requirement for purposes of modeling the energy use reduction described in paragraph

(1)(B).

``(e) Additional Rules.--For purposes of this section--

``(1) No double benefit.--

``(A) In general.--With respect to any residence, no credit shall be allowed under this section for any taxable year in which the taxpayer claims a credit under section 25C.

``(B) Renewable energy systems and appliances.--In the case of a renewable energy system or appliance that qualifies for another credit under this chapter, the resulting reduction in energy use shall not be taken into account in determining the percentage energy use reductions under subsection (b).

``(C) No double benefit for certain expenditures.--The term

`qualified home energy efficiency expenditures' shall not include any expenditure for which a deduction or credit is claimed by the taxpayer under this chapter for the taxable year or with respect to which the taxpayer receives any Federal energy efficiency rebate.

``(2) Principal residence.--The term `principal residence' has the same meaning as when used in section 121.

``(3) Special rules.--Rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and section 25C(e)(2) shall apply, as determined by the Secretary, after consultation with the Secretary of Energy.

``(4) Basis adjustments.--For purposes of this subtitle, if a credit is allowed under this section with respect to any expenditure with respect to any property, the increase in the basis of such property which would (but for this paragraph) result from such expenditure shall be reduced by the amount of the credit so allowed.

``(5) Election not to claim credit.--No credit shall be determined under subsection (a) for the taxable year if the taxpayer elects not to have subsection (a) apply to such taxable year.

``(6) Multiple year retrofits.--If the taxpayer has claimed a credit under this section in a previous taxable year, the baseline energy use for the calculation of reduced energy use must be established after the previous retrofit has been placed in service.

``(f) Termination.--This section shall not apply with respect to any costs paid or incurred after December 31, 2015.

``(g) Secretary Review.--The Secretary, after consultation with the Secretary of Energy, shall establish a review process for the retrofits performed, including an estimate of the usage of the credit and a statistically valid analysis of the average actual energy use reductions, utilizing utility bill data collected on a voluntary basis, and report to Congress not later than June 30, 2015, any findings and recommendations for--

``(1) improvements to the effectiveness of the credit under this section, and

``(2) expansion of the credit under this section to rental units.''.

(2) Conforming amendments.--

(A) Section 1016(a) is amended--

(i) by striking ``and'' at the end of paragraph (36),

(ii) by striking the period at the end of paragraph (37) and inserting ``, and'', and

(iii) by adding at the end the following new paragraph:

``(38) to the extent provided in section 25E(e)(4), in the case of amounts with respect to which a credit has been allowed under section 25E.''.

(B) Section 6501(m) is amended by inserting ``25E(e)(5),'' after ``section''.

(C) The table of sections for subpart A of part IV of subchapter A chapter 1 is amended by inserting after the item relating to section 25D the following new item:

``Sec. 25E. Performance based energy improvements.''.

(3) Effective date.--The amendments made by this subsection shall apply to amounts paid or incurred for a qualified whole home energy efficiency retrofit placed in service after December 31, 2014.

______

SA 3183. Mr. CARDIN (for himself and Mr. Schumer) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OTHER PROVISIONS

SEC. __. TREATMENT OF PARTNERSHIP ALLOCATIONS OF THE

REHABILITATION TAX CREDIT BEFORE 2014.

(a) Safe Harbor.--

(1) In general.--An arrangement for the allocation of the credit determined under section 47(a) of the Internal Revenue Code of 1986 with respect to any building placed in service before January 1, 2014, shall not fail to be treated as a partnership for purposes of the Internal Revenue Code of 1986 if such arrangement meets the requirements of paragraph (2).

(2) Safe-harbor requirements.--An arrangement meets the requirements of this paragraph if--

(A) such arrangement is a written agreement which is intended to be a partnership agreement for purposes of the Internal Revenue Code of 1986,

(B) such arrangement allows for a distributive share of the credit determined under section 47(a) of such Code to taxpayers who make a qualified substantial capital contribution with respect to the rehabilitation of a qualified rehabilitated building, and

(C) under the terms of such arrangement, after the date that is 1 year after the date of the enactment of this Act, neither any principal nor any related person--

(i) is obligated to acquire an interest of another person in the partnership for a price that exceeds the fair market value of the interest,

(ii) is permitted to acquire another person's interest in the partnership for a price that is less than the fair market value of the interest,

(iii) is required--

(I) to distribute to another partner any amount which is secured by cash or cash equivalents, or

(II) to acquire the interest of any other partner through funds secured by cash or cash equivalents, and

(iv) directly or indirectly guarantees or otherwise insures the amount of any credit determined under section 47(a) of such Code, or the cash equivalent of any such credit.

(3) Definitions.--For purposes of this section--

(A) Qualified substantial capital contribution.--The term

``qualified substantial capital contribution'' means, with respect to any qualified rehabilitated building, a capital contribution which--

(i) is made not later than the date that is 12 months after the date such qualified rehabilitated building was placed in service, and

(ii) is greater than the lesser of--

(I) 5 percent of the reasonably anticipated qualified rehabilitation expenditures (as defined in section 47(c)(2) of the Internal Revenue Code of 1986) with respect to such qualified rehabilitated building, or

(II) $200,000.

(B) Principal.--The term ``principal'' means any person under the arrangement--

(i) who owns the qualified rehabilitated building described in paragraph (2)(B),

(ii) who is treated as having acquired such qualified rehabilitated building by reason of an election under 50(d)(5) of the Internal Revenue Code of 1986 , or

(iii) who manages the partnership or is authorized to act on behalf of the partnership.

(C) Related person.--The term ``related person'' has the meaning given such term under section 465(b)(3)(C) of the Internal Revenue Code of 1986.

(D) Qualified rehabilitated building.--The term ``qualified rehabilitated building'' has the meaning given such term under section 47(c)(1) of the Internal Revenue Code of 1986.

(b) Treatment of Assessments and Enforcement Actions Relating to Credit.--In the case of any arrangement for the allocation of the credit determined under section 47(a) of the Internal Revenue Code of 1986 with respect to any qualified rehabilitated building placed in service before January 1, 2014--

(1) no assessment shall be made under section 6201 of the Internal Revenue Code of 1986 with respect to such arrangement, and no enforcement action with respect to any such assessment (including any notice of deficiency or the imposition of any lien or levy) shall proceed, before the date that is 1 year after the date of the enactment of this Act, and

(2) the running of the period of limitations under section 6229, 6501, or 6502 of the Internal Revenue Code of 1986 with respect to such arrangement shall be suspended for the period described in paragraph (1).

______

SA 3184. Mr. CARDIN (for himself, Ms. Collins, Mr. Casey, Mrs. Shaheen, Mr. Portman, Mr. King, Mr. Wicker, Mr. Coons, Ms. Hirono, Mr. Schumer, Mr. Leahy, Ms. Mikulski, Ms. Ayotte, Mr. Begich, Mr. Heinrich, Mr. Udall of Colorado, Ms. Murkowski, Mr. Schatz, and Mr. Roberts) submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--SMALL BREWER REINVESTMENT

SEC. _01. SHORT TITLE.

This Act may be cited as the ``Small Brewer Reinvestment and Expanding Workforce Act of 2013''.

SEC. _02. REDUCED RATE OF EXCISE TAX ON BEER PRODUCED

DOMESTICALLY BY CERTAIN QUALIFYING PRODUCERS.

(a) In General.--Paragraph (2) of section 5051(a) is amended--

(1) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and

(2) by striking subparagraph (A) and inserting the following new subparagraphs:

``(A) In general.--In the case of a brewer who produces not more than 6,000,000 barrels of beer during the calendar year, the per barrel rate of tax imposed by this section shall be--

``(i) $3.50 on the first 60,000 qualified barrels of production, and

``(ii) $16 on the first 1,940,000 qualified barrels of production to which clause (i) does not apply.

``(B) Qualified barrels of production.--For purposes of this paragraph, the term `qualified barrels of production' means, with respect to any brewer for any calendar year, the number of barrels of beer which are removed in such year for consumption or sale and which have been brewed or produced by such brewer at qualified breweries in the United States.''.

(b) Conforming Amendments.--

(1) Subparagraph (C) of section 5051(a)(2), as redesignated by this section, is amended--

(A) by striking ``2,000,000 barrel quantity'' and inserting

``6,000,000 barrel quantity'', and

(B) by striking ``60,000 barrel quantity'' and inserting

``60,000 and 1,940,000 barrel quantities''.

(2) Subparagraph (D) of such section, as so redesignated, is amended by striking ``2,000,000 barrels'' and inserting

``6,000,000 barrels''.

(c) Effective Date.--The amendments made by this section shall apply to beer removed during calendar years beginning after the date of the enactment of this Act.

______

SA 3185. Mr. CARDIN (for himself, Mrs. Feinstein, and Mr. Schatz) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Strike section 159 and insert the following:

SEC. 159. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY-

EFFICIENT COMMERCIAL BUILDINGS; DEDUCTION FOR

RETROFITS OF EXISTING COMMERCIAL AND

MULTIFAMILY BUILDINGS.

(a) Extension.--

(1) Through 2015.--Section 179D(h) is amended by striking

``December 31, 2013'' and inserting ``December 31, 2015''.

(2) Inclusion of multifamily buildings.--

(A) In general.--Subparagraph (B) of section 179D(c)(1) is amended by striking ``building'' and inserting ``commercial building or multifamily building''.

(B) Definitions.--Subsection (c) of section 179D is amended by adding at the end the following new paragraphs:

``(3) Commercial building.--The term `commercial building' means a building with a primary use or purpose other than as residential housing.

``(4) Multifamily building.--The term `multifamily building' means a structure of 5 or more dwelling units with a primary use as residential housing, and includes such buildings owned and operated as a condominium, cooperative, or other common interest community.''.

(b) Increase in Maximum Amount of Deduction.--

(1) In general.--Subparagraph (A) of section 179D(b)(1) is amended by striking ``$1.80'' and inserting ``$3.00''.

(2) Partial allowance.--Paragraph (1) of section 179D(d) is amended to read as follows:

``(1) Partial allowance.--

``(A) In general.--Except as provided in subsection (f), if--

``(i) the requirement of subsection (c)(1)(D) is not met, but

``(ii) there is a certification in accordance with paragraph (6) that--

``(I) any system referred to in subsection (c)(1)(C) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with respect to such system, or

``(II) the systems referred to in subsection (c)(1)(C)(ii) and subsection (c)(1)(C)(iii) together satisfy the energy-savings targets established by the Secretary under subparagraph (B) with respect to such systems,

then the requirement of subsection (c)(1)(D) shall be treated as met with respect to such system or systems, and the deduction under subsection (a) shall be allowed with respect to energy-efficient commercial building property installed as part of such system and as part of a plan to meet such targets, except that subsection (b) shall be applied to such property described in clause (ii)(I) by substituting `$1.00' for `$3.00' and to such property described in clause (ii)(II) by substituting `$2.20' for `$3.00'.

``(B) Regulations.--

``(i) In general.--The Secretary, after consultation with the Secretary of Energy, shall promulgate regulations establishing a target for each system described in subsection

(c)(1)(C) which, if such targets were met for all such systems, the property would meet the requirements of subsection (c)(1)(D).

``(ii) Safe harbor for combined systems.--The Secretary, after consultation with the Secretary of Energy, and not later than 6 months after the date of the enactment of the Energy Efficiency Tax Incentives Act, shall promulgate regulations regarding combined envelope and mechanical system performance that detail appropriate components, efficiency levels, or other relevant information for the systems referred to in subsection (c)(1)(C)(ii) and subsection

(c)(1)(C)(iii) together to be deemed to have achieved two-thirds of the requirements of subsection (c)(1)(D).''.

(1) In general.--Section 179D is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

``(h) Tax Incentives Not Available.--Energy-efficient measures for which a deduction is allowed under this section shall not be eligible for a deduction under section 179F.''.

(2) Low-income housing exception to basis reduction.--Subsection (e) of section 179D is amended by inserting

``(other than property placed in service in a qualified low-income building (within the meaning of section 42))'' after

``building property''.

(d) Allocation of Deduction.--Paragraph (4) of section 179D(d) is amended to read as follows:

``(4) Allocation of deduction.--

``(A) In general.--Not later than 180 days after the date of the enactment of this subsection, the Secretary, in consultation with the Secretary of Energy, shall promulgate a regulation to allow the owner of a commercial or multifamily building, including a government, tribal, or non-profit owner, to allocate any deduction allowed under this section, or a portion thereof, to the person primarily responsible for designing the property in lieu of the owner or to a commercial tenant that leases or otherwise occupies space in such building pursuant to a written agreement. Such person shall be treated as the taxpayer for purposes of this section.

``(B) Form of allocation.--An allocation made under this paragraph shall be in writing and in a form that meets the form of allocation requirements in Notice 2008-40 of the Internal Revenue Service.

``(C) Provision of allocation.--Not later than 30 days after receipt of a written request from a person eligible to receive an allocation under this paragraph, the owner of a building that makes an allocation under this paragraph shall provide the form of allocation (as described in subparagraph

(B)) to such person.

``(D) Allocation from public owner of building.--In the case of a commercial building or multifamily building that is owned by a Federal, State, or local government or a subdivision thereof, Notice 2006-52 of the Internal Revenue Service, as amplified by Notice 2008-40, shall apply to any allocation.''.

(e) Treatment of Basis in Context of Allocation.--Subsection (e) of section 179D, as amended by subsection

(c)(2), is amended by inserting ``or so allocated'' after

``so allowed''.

(f) Earnings and Profits Conformity for Real Estate Investment Trusts.--Subparagraph (B) of section 312(k)(3) is amended--

(1) by striking ``.--For purposes of'' and inserting ``.--

``(i) In general.--Except as provided in clause (ii), for purposes of'', and

(2) by adding at the end the following new clause:

``(ii) Earnings and profits conformity for real estate investment trusts.--

``(I) In general.--For purposes of computing the earnings and profits of a real estate investment trust (other than a captive real estate investment trust), the entire amount deductible under section 179D shall be allowed as deductions in the taxable years for which such amounts are claimed under such section.

``(II) Captive real estate investment trust.--The term

`captive real estate investment trust' means a real estate investment trust the shares or beneficial interests of which are not regularly traded on an established securities market and more than 50 percent of the voting power or value of the beneficial interests or shares of which are owned or controlled, directly or indirectly, or constructively, by a single entity that is treated as an association taxable as a corporation under this title and is not exempt from taxation pursuant to the provisions of section 501(a).

``(III) Rules of application.--For purposes of this clause, the constructive ownership rules of section 318(a), as modified by section 856(d)(5), shall apply in determining the ownership of stock, assets, or net profits of any person, and the following entities are not considered an association taxable as a corporation:

``(aa) Any real estate investment trust other than a captive real estate investment trust.

``(bb) Any qualified real estate investment trust subsidiary under section 856, other than a qualified REIT subsidiary of a captive real estate investment trust.

``(cc) Any Listed Australian Property Trust (meaning an Australian unit trust registered as a `Managed Investment Scheme' under the Australian Corporations Act in which the principal class of units is listed on a recognized stock exchange in Australia and is regularly traded on an established securities market), or an entity organized as a trust, provided that a Listed Australian Property Trust owns or controls, directly or indirectly, 75 percent or more of the voting power or value of the beneficial interests or shares of such trust.

``(dd) Any corporation, trust, association, or partnership organized outside the laws of the United States and which satisfies the criteria described in subclause (IV).

``(IV) Criteria.--The criteria described in this subclause are as follows:

``(aa) At least 75 percent of the entity's total asset value at the close of its taxable year is represented by real estate assets (as defined in section 856(c)(5)(B)), cash and cash equivalents, and United States Government securities.

``(bb) The entity is not subject to tax on amounts distributed to its beneficial owners, or is exempt from entity-level taxation.

``(cc) The entity distributes at least 85 percent of its taxable income (as computed in the jurisdiction in which it is organized) to the holders of its shares or certificates of beneficial interest on an annual basis.

``(dd) Not more than 10 percent of the voting power or value in such entity is held directly or indirectly or constructively by a single entity or individual, or the shares or beneficial interests of such entity are regularly traded on an established securities market.

``(ee) The entity is organized in a country which has a tax treaty with the United States.''.

(g) Rules for Lighting Systems.--Subsection (f) of section 179D is amended to read as follows:

``(f) Rules for Lighting Systems.--

``(1) In general.--With respect to property that is part of a lighting system, the deduction allowed under subsection (a) shall be equal to--

``(A) for a lighting system that includes installation of a lighting control described in paragraph (2)(A), the applicable amount determined under paragraph (3)(A),

``(B) for a lighting system that includes installation of a lighting control described in paragraph (2)(B), the applicable amount determined under paragraph (3)(B), or

``(C) for a lighting system that does not include installation of any lighting controls described in subparagraph (A) or (B) of paragraph (2), the applicable amount determined under paragraph (3)(C).

``(2) Energy saving controls.--

``(A) Lighting controls in certain spaces.--For purposes of paragraph (1)(A), the lighting controls described in this subparagraph are the following:

``(i) Occupancy sensors (as described in paragraph (4)(I)) in spaces not greater than 800 square feet.

``(ii) Bi-level controls (as described in paragraph

(4)(A)).

``(iii) Continuous or step dimming controls (as described in subparagraphs (B) and (K) of paragraph (4)).

``(iv) Daylight dimming where sufficient daylight is available (as described in paragraph (4)(C)).

``(v) A multi-scene controller (as described in paragraph

(4)(H)).

``(vi) Time scheduling controls (as described in paragraph

(4)(L)), provided that such controls are not required by Standard 90.1-2010.

``(vii) Such other lighting controls as the Secretary, in consultation with the Secretary of Energy, determines appropriate.

``(B) Other control types.--For purposes of paragraph

(1)(B), the lighting controls described in this subparagraph are the following:

``(i) Occupancy sensors (as described in paragraph (4)(I)) in spaces greater than 800 square feet.

``(ii) Demand responsive controls (as described in paragraph (4)(D)).

``(iii) Lumen maintenance controls (as described in paragraph (4)(F)) where solid state lighting is used.

``(iv) Such other lighting controls as the Secretary, in consultation with the Secretary of Energy, determines appropriate.

``(3) Applicable amount.--

``(A) Lighting controls in certain spaces.--For purposes of paragraph (1)(A), the applicable amount shall be determined in accordance with the following table:

``If the percentage of reduction in lighting power density is not less than: The amount of the deduction per square foot is:

15 percent.....................................................$0.30

20 percent.....................................................$0.44

25 percent.....................................................$0.58

30 percent.....................................................$0.72

35 percent.....................................................$0.86

40 percent.....................................................$1.00.

``(B) Lighting controls in larger spaces and where solid lighting is used.--For purposes of paragraph (1)(B), the applicable amount shall be determined in accordance with the following table:

``If the percentage of reduction in lighting power density is not less than: The amount of the deduction per square foot is:

20 percent.....................................................$0.30

25 percent.....................................................$0.44

30 percent.....................................................$0.58

35 percent.....................................................$0.72

40 percent.....................................................$0.86

45 percent.....................................................$1.00.

``(C) No qualified lighting controls.--For purposes of paragraph (1)(C), the applicable amount shall be determined in accordance with the following table:

``If the percentage of reduction in lighting power density is not less than: The amount of the deduction per square foot is:

25 percent.....................................................$0.30

30 percent.....................................................$0.44

35 percent.....................................................$0.58

40 percent.....................................................$0.72

45 percent.....................................................$0.86

50 percent.....................................................$1.00.

``(4) Definitions.--For purposes of this subsection:

``(A) Bi-level control.--

``(i) In general.--Subject to clause (ii), the term `bi-level control' means a lighting control strategy that provides for 2 different levels of lighting.

``(ii) Full-off setting.--For purposes of clause (i), a bi-level control shall also provide for a full-off setting.

``(B) Continuous dimming.--The term `continuous dimming' means a lighting control strategy that adjusts the light output of a lighting system between minimum and maximum light output in a manner that is not perceptible.

``(C) Daylight dimming; sufficient daylight.--

``(i) Daylight dimming.--The term `daylight dimming' means any device that--

``(I) adjusts electric lighting power in response to the amount of daylight that is present in an area, and

``(II) provides for separate control of the lamps for general lighting in the daylight area by not less than 1 multi-level photocontrol, including continuous dimming devices, that satisfies the following requirements:

``(aa) The light sensor for the multi-level photocontrol is remote from where calibration adjustments are made.

``(bb) The calibration adjustments are readily accessible.

``(cc) The multi-level photocontrol reduces electric lighting power in response to the amount of daylight with--

``(AA) not less than 1 control step that is between 50 percent and 70 percent of design lighting power, and

``(BB) not less than 1 control step that is not less than 35 percent of design lighting power.

``(ii) Sufficient daylight.--

``(I) In general.--The term `sufficient daylight' means--

``(aa) in the case of toplighted areas, when the total daylight area under skylights plus the total daylight area under rooftop monitors in an enclosed space is greater than 900 square feet (as defined in Standard 90.1-2010), and

``(bb) in the case of sidelighted areas, when the combined primary sidelight area in an enclosed space is not less than 250 square feet (as defined in Standard 90.1-2010).

``(II) Exceptions.--Sufficient daylight shall be deemed to not be available if--

``(aa) in the case of areas described in subclause

(I)(aa)--

``(AA) for daylighted areas under skylights, it is documented that existing adjacent structures or natural objects block direct beam sunlight for more than 1500 daytime hours (after 8 a.m. and before 4 p.m., local time) per year,

``(BB) for daylighted areas, the skylight effective aperture is less than 0.006, or

``(CC) for buildings in climate zone 8, as defined under Standard 90.1-2010, the daylight areas total less than 1500 square feet in an enclosed space, and

``(bb) in the case of primary sidelighted areas described in subclause (I)(bb)--

``(AA) the top of the existing adjacent structures are at least twice as high above the windows as the distance from the window, or

``(BB) the sidelighting effective aperture is less than 0.1.

``(iii) Daylight, sidelighting, and other related terms.--The terms `daylight area', `daylight area under skylights',

`daylight area under rooftop monitors', `daylighted area',

`enclosed space', `primary sidelighted areas', `sidelighting effective aperture', and `skylight effective aperture' have the same meaning given such terms under Standard 90.1-2010.

``(D) Demand responsive control.--

``(i) In general.--The term `demand responsive control' means a control device that receives and automatically responds to a demand response signal and--

``(I) in the case of space-conditioning systems, conducts a centralized demand shed for non-critical zones during a demand response period and that has the capability to, on a signal from a centralized contract or software point within an Energy Management Control System--

``(aa) remotely increase the operating cooling temperature set points in such zones by not less than 4 degrees,

``(bb) remotely decrease the operating heating temperature set points in such zones by not less than 4 degrees,

``(cc) remotely reset temperatures in such zones to originating operating levels, and

``(dd) provide an adjustable rate of change for any temperature adjustment and reset, and

``(II) in the case of lighting power, has the capability to reduce lighting power by not less than 30 percent during a demand response period.

``(ii) Demand response period.--The term `demand response period' means a period in which short-term adjustments in electricity usage are made by end-use customers from normal electricity consumption patterns, including adjustments in response to--

``(I) the price of electricity, and

``(II) participation in programs or services that are designed to modify electricity usage in response to wholesale market prices for electricity or when reliability of the electrical system is in jeopardy.

``(iii) Demand response signal.--The term `demand response signal' means a signal sent to an end-use customer by a local utility, independent system operator, or designated curtailment service provider or aggregator that--

``(I) indicates an adjustment in the price of electricity, or

``(II) is a request to modify electricity consumption.

``(E) Lamp.--The term `lamp' means an artificial light source that produces optical radiation (including ultraviolet and infrared radiation).

``(F) Lumen maintenance control.--The term `lumen maintenance control' means a lighting control strategy that maintains constant light output by adjusting lamp power to compensate for age and cleanliness of luminaires.

``(G) Luminaire.--The term `luminaire' means a complete lighting unit for the production, control, and distribution of light that consists of--

``(i) not less than 1 lamp, and

``(ii) any of the following items:

``(I) Optical control devices designed to distribute light.

``(II) Sockets or mountings for the positioning, protection, and operation of the lamps.

``(III) Mechanical components for support or attachment.

``(IV) Electrical and electronic components for operation and control of the lamps.

``(H) Multi-scene control.--The term `multi-scene control' means a lighting control device or system that allows for--

``(i) not less than 2 predetermined lighting settings,

``(ii) a setting that turns off all luminaires in an area, and

``(iii) a recall of the settings described in clauses (i) and (ii) for any luminaires or groups of luminaires to adjust to multiple activities within the area.

``(I) Occupancy sensor.--The term `occupancy sensor' means a control device that--

``(i) detects the presence or absence of individuals within an area and regulates lighting, equipment, or appliances according to a required sequence of operation,

``(ii) shuts off lighting when an area is unoccupied,

``(iii) except in areas designated as emergency egress and using less than 0.2 watts per square foot of floor area, provides for manual shut-off of all luminaires regardless of the status of the sensor and allows for--

``(I) independent control in each area enclosed by ceiling-height partitions,

``(II) controls that are readily accessible, and

``(III) operation by a manual switch that is located in the same area as the lighting that is subject to the control device.

``(J) Standard 90.1-2010.--The term `Standard 90.1-2010' means Standard 90.1-2010 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America.

``(K) Step dimming.--The term `step dimming' means a lighting control strategy that adjusts the light output of a lighting system by 1 or more predetermined amounts of greater than 1 percent of full output in a manner that may be perceptible.

``(L) Time scheduling control.--The term `time scheduling control' means a control strategy that automatically controls lighting, equipment, or systems based on a particular time of day or other daily event (including sunrise and sunset).''.

(h) Updated Standards.--

(1) Initial update.--

(A) In general.--Section 179D(c) is amended by striking

``90.1-2001'' each place it appears and inserting ``90.1-2004''.

(B) Conforming amendment.--Paragraph (2) of section 179D(c) is amended by striking ``(as in effect on April 2, 2003)''.

(2) Second update.--

(A) In general.--Section 179D is amended by striking

``90.1-2004'' each place it appears in subsections (c) and

(f) and inserting ``90.1-2007''.

(B) Effective date.--The amendments made by subparagraph

(A) shall apply to property placed in service after December 31, 2014.

(i) Treatment of Lighting Systems.--Section 179D(c)(1) is amended by striking ``interior'' each place it appears.

(j) Reporting Program.--Section 179D, as amended by subsection (c)(1), is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:

``(i) Reporting Program.--For purposes of the report required under section 179F(l), the Secretary, in consultation with the Secretary of Energy, shall--

``(1) develop a program to collect a statistically valid sample of energy consumption data from taxpayers that received full deductions under this section, regardless of whether such taxpayers allocated all or a portion of such deduction, and

``(2) include such data in the report, with such redactions as deemed necessary to protect the personally identifiable information of such taxpayers.''.

(k) Special Rule for Partnerships and S Corporations.--Section 179D, as amended by subsection (j), is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection:

``(j) Special Rule for Partnerships and S Corporations.--In the case of a partnership or S corporation, this section shall be applied at the partner or shareholder level, subject to such reporting requirements as are determined appropriate by the Secretary.''.

(l) Deduction for Retrofits of Existing Commercial and Multifamily Buildings.--

(1) In general.--Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 179E the following new section:

``SEC. 179F. DEDUCTION FOR RETROFITS OF EXISTING COMMERCIAL

AND MULTIFAMILY BUILDINGS.

``(a) Allowance of Deduction.--

``(1) In general.--With respect to each certified retrofit plan, there shall be allowed as a deduction an amount equal to the lesser of--

``(A) the sum of--

``(i) the design deduction, and

``(ii) the realized deduction, or

``(B) the total cost to develop and implement such certified retrofit plan.

``(2) Exception.--For purposes of the amount described in paragraph (1)(B), if such amount is taken as a design deduction, no realized deduction shall be allowed.

``(b) Deduction Amounts.--For purposes of this section--

``(1) Design deduction.--A design deduction shall be--

``(A) based on projected source energy savings as calculated in accordance with subsection (c)(3)(B),

``(B) correlated to the percent of source energy savings set forth in the general scale in paragraph (3)(A) that a certified retrofit plan is projected to achieve when energy-efficient measures are placed in service, and

``(C) equal to 60 percent of the amount allowed under the general scale.

``(2) Realized deduction.--

``(A) In general.--A realized deduction shall be--

``(i) based on realized source energy savings as calculated in accordance with subsection (c)(3)(C),

``(ii) correlated to the percent of source energy savings set forth in the general scale in paragraph (3)(A) as realized by a certified retrofit plan, and

``(iii) equal to 40 percent of the amount allowed under the general scale.

``(B) Adjustment of source energy savings.--The percent of source energy savings for purposes of any realized deduction may vary from such savings projected when energy-efficient measures were placed in service for purposes of a design deduction under paragraph (1).

``(C) No recapture of design deduction.--Notwithstanding the regulations prescribed under subsection (f), no recapture of a design deduction shall be required where the owner of the commercial or multifamily building--

``(i) claims or allocates a design deduction when energy-efficient measures are placed into service pursuant to the terms and conditions of a certified retrofit plan, and

``(ii) is not eligible for or does not subsequently claim or allocate a realized deduction.

``(3) General scale.--

``(A) In general.--The scale for deductions allowed under this section shall be--

``(i) $1.00 per square foot of retrofit floor area for 20 to 24 percent source energy savings,

``(ii) $1.50 per square foot of retrofit floor area for 25 to 29 percent source energy savings,

``(iii) $2.00 per square foot of retrofit floor area for 30 to 34 percent source energy savings,

``(iv) $2.50 per square foot of retrofit floor area for 35 to 39 percent source energy savings,

``(v) $3.00 per square foot of retrofit floor area for 40 to 44 percent source energy savings,

``(vi) $3.50 per square foot of retrofit floor area for 45 to 49 percent source energy savings, and

``(vii) $4.00 per square foot of retrofit floor area for 50 percent or more source energy savings.

``(B) Historic buildings.--

``(i) In general.--With respect to energy-efficient measures placed in service as part of a certified retrofit plan in a commercial building or multifamily building on or eligible for the National Register of Historic Places, the respective dollar amounts set forth in the general scale under subparagraph (A) shall--

``(I) each be increased by 20 percent, for the purposes of calculating any applicable design deduction and realized deduction, and

``(II) not exceed the total cost to develop and implement such certified retrofit plan.

``(ii) Exception.--If the amount described in clause

(i)(II) is taken as a design deduction, then no realized deduction shall be allowed.

``(c) Calculation of Energy Savings.--

``(1) In general.--For purposes of the design deduction and the realized deduction, source energy savings shall be calculated with reference to a baseline of the annual source energy consumption of the commercial or multifamily building before energy-efficient measures were placed in service.

``(2) Baseline benchmark.--The baseline under paragraph (1) shall be determined using a building energy performance benchmarking tool designated by the Administrator of the Environmental Protection Agency, and based upon 1 year of source energy consumption data prior to the date upon which the energy-efficient measures are placed in service.

``(3) Design and realized source energy savings.--

``(A) In general.--In certifying a retrofit plan as a certified retrofit plan, a licensed engineer or architect shall calculate source energy savings by utilizing the baseline benchmark defined in paragraph (2) and determining percent improvements from such baseline.

``(B) Design deduction.--For purposes of claiming a design deduction, the regulations issued under subsection (f)(1) shall prescribe the standards and process for a licensed engineer or architect to calculate and certify source energy savings projected from the design of a certified retrofit plan as of the date energy-efficient measures are placed in service.

``(C) Realized deduction.--For purposes of claiming a realized deduction, a licensed engineer or architect shall calculate and certify source energy savings realized by a certified retrofit plan 2 years after a design deduction is allowed by utilizing energy consumption data after energy-efficient measures are placed in service, and adjusting for climate, building occupancy hours, density, or other factors deemed appropriate in the benchmarking tool designated under paragraph (2).

``(d) Certified Retrofit Plan and Other Definitions.--For purposes of this section--

``(1) Certified retrofit plan.--The term `certified retrofit plan' means a plan that--

``(A) is designed to reduce the annual source energy costs of a commercial building, or a multifamily building, through the installation of energy-efficient measures,

``(B) is certified under penalty of perjury by a licensed engineer or architect, who is not a direct employee of the owner of the commercial building or multifamily building that is the subject of the plan, and is licensed in the State in which such building is located,

``(C) describes the square footage of retrofit floor area covered by such a plan,

``(D) specifies that it is designed to achieve a final source energy usage intensity after energy-efficient measures are placed in service in a commercial building or a multifamily building that does not exceed on a square foot basis the average level of energy usage intensity of other similar buildings, as described in paragraph (2),

``(E) requires that after the energy-efficient measures are placed in service, the commercial building or multifamily building meets the applicable State and local building code requirements for the area in which such building is located,

``(F) satisfies the regulations prescribed under subsection

(f), and

``(G) is submitted to the Secretary of Energy after energy-efficient measures are placed in service, for the purpose of informing the report to Congress required by subsection (l).

``(2) Average level of energy usage intensity.--

``(A) In general.--The maximum average level of energy usage intensity under paragraph (1)(D) shall not exceed 300,000 British thermal units per square foot.

``(B) Regulations.--

``(i) In general.--The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall develop distinct standards for categories and subcategories of buildings with respect to maximum average level of energy usage intensity based on the best available information used by the ENERGY STAR program.

``(ii) Review.--The standards developed pursuant to clause

(i) shall be reviewed and updated by the Secretary, in consultation with the Administrator of the Environmental Protection Agency, not later than every 3 years.

``(3) Commercial building.--

``(A) In general.--The term `commercial building' means a building located in the United States--

``(i) that is in existence and occupied on the date of the enactment of this section,

``(ii) for which a certificate of occupancy has been issued at least 10 years before energy efficiency measures are placed in service, and

``(iii) with a primary use or purpose other than as residential housing.

``(B) Shopping centers.--In the case of a retail shopping center, the term `commercial building' shall include an area within such building that is--

``(i) 50,000 square feet or larger that is covered by a separate utility grade meter to record energy consumption in such area, and

``(ii) under the day-to-day management and operation of--

``(I) the owner of such building as common space areas, or

``(II) a retail tenant, lessee, or other occupant.

``(4) Energy-efficient measures.--The term `energy-efficient measures' means a measure, or combination of measures, placed in service through a certified retrofit plan--

``(A) on or in a commercial building or multifamily building,

``(B) as part of--

``(i) the lighting systems,

``(ii) the heating, cooling, ventilation, refrigeration, or hot water systems,

``(iii) building transportation systems, such as elevators and escalators,

``(iv) the building envelope, which may include an energy-efficient cool roof,

``(v) a continuous commissioning contract under the supervision of a licensed engineer or architect, or

``(vi) building operations or monitoring systems, including utility-grade meters and submeters, and

``(C) including equipment, materials, and systems within subparagraph (B) with respect to which depreciation (or amortization in lieu of depreciation) is allowed.

``(5) Energy savings.--The term `energy savings' means source energy usage intensity reduced on a per square foot basis through design and implementation of a certified retrofit plan.

``(6) Multifamily building.--The term `multifamily building'--

``(A) means--

``(i) a structure of 5 or more dwelling units located in the United States--

``(I) that is in existence and occupied on the date of the enactment of this section,

``(II) for which a certificate of occupancy has been issued at least 10 years before energy efficiency measures are placed in service, and

``(III) with a primary use as residential housing, and

``(B) includes such buildings owned and operated as a condominium, cooperative, or other common interest community.

``(7) Source energy.--The term `source energy' means the total amount of raw fuel that is required to operate a commercial building or multifamily building, and accounts for losses that are incurred in the generation, storage, transport, and delivery of fuel to such a building.

``(e) Timing of Claiming Deductions.--Deductions allowed under this section may be claimed as follows:

``(1) Design deduction.--In the case of a design deduction, in the taxable year that energy efficiency measures are placed in service.

``(2) Realized deduction.--In the case of a realized deduction, in the second taxable year following the taxable year described in paragraph (1).

``(f) Regulations.--

``(1) In general.--Not later than 180 days after the date of the enactment of this section, and after notice and opportunity for public comment, the Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall prescribe regulations--

``(A) for the manner and method for a licensed engineer or architect to certify retrofit plans, model projected energy savings, and calculate realized energy savings, and

``(B) notwithstanding subsection (b)(2)(C), to provide, as appropriate, for a recapture of the deductions allowed under this section if a retrofit plan is not fully implemented, or a retrofit plan and energy savings are not certified or verified in accordance with regulations prescribed under this subsection.

``(2) Reliance on established protocols, etc.--To the maximum extent practicable and available, such regulations shall rely upon established protocols and documents used in the ENERGY STAR program, and industry best practices and existing guidelines, such as the Building Energy Modeling Guidelines of the Commercial Energy Services Network

(COMNET).

``(3) Allowance of deductions pending issuance of regulations.--Pending issuance of the regulations under paragraph (1), the owner of a commercial building or a multifamily building shall be allowed to claim or allocate a deduction allowed under this section.

``(g) Notice to Owner.--Each certification of a retrofit plan and calculation of energy savings required under this section shall include an explanation to the owner of a commercial building or a multifamily building regarding the energy-efficient measures placed in service and their projected and realized annual energy costs.

``(h) Allocation of Deduction.--

``(1) In general.--Not later than 180 days after the date of the enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall promulgate a regulation to allow the owner of a commercial building or a multifamily building, including a government, tribal, or non-profit owner, to allocate any deduction allowed under this section, or a portion thereof, to the person primarily responsible for funding, financing, designing, leasing, operating, or placing in service energy-efficient measures. Such person shall be treated as the taxpayer for purposes of this section and shall include a building tenant, financier, architect, professional engineer, licensed contractor, energy services company, or other building professional.

``(2) Form of allocation.--An allocation made under this paragraph shall be in writing and in a form that meets the form of allocation requirements in Notice 2008-40 of the Internal Revenue Service.

``(3) Provision of allocation.--Not later than 30 days after receipt of a written request from a person eligible to receive an allocation under this paragraph, the owner of a building that makes an allocation under this paragraph shall provide the form of allocation (as described in paragraph

(2)) to such person.

``(4) Allocation from public owner of building.--In the case of a commercial building or a multifamily building that is owned by a Federal, State, or local government or a subdivision thereof, Notice 2006-52 of the Internal Revenue Service, as amplified by Notice 2008-40, shall apply to any allocation.

``(i) Basis Reduction.--For purposes of this subtitle, if a deduction is allowed under this section with respect to any energy-efficient measures placed in service under a certified retrofit plan other than in a qualified low-income building

(within the meaning of section 42), the basis of such measures shall be reduced by the amount of the deduction so allowed or so allocated.

``(k) Tax Incentives Not Available.--

``(1) Energy efficient commercial buildings deduction.--Energy-efficient measures for which a deduction is allowed under this section shall not be eligible for a deduction under section 179D.

``(2) New energy efficient home credit.--No deduction shall be allowed under this section with respect to any building or dwelling unit with respect to which a credit under section 45L was allowed.

``(l) Report to Congress.--

``(1) In general.--Biennially, beginning with the first year after the enactment of this section, the Secretary, in conjunction with the Secretary of Energy, shall submit a report to Congress that--

``(A) explains the energy saved, the energy-efficient measures implemented, the realization of energy savings projected, and records the amounts and types of deductions allowed under this section,

``(B) explains the energy saved, the energy efficient measures implemented, and records the amount of deductions allowed under section 179D, based on the data collected pursuant to subsection (i) of such section,

``(C) determines the number of jobs created as a result of the deduction allowed under this section,

``(D) determines how the use of any deduction allowed under this section may be improved, based on the information provided to the Secretary of Energy,

``(E) provides aggregated data with respect to the information described in subparagraphs (A) through (D), and

``(F) provides statutory recommendations to Congress that would reduce energy consumption in new and existing commercial buildings located in the United States, including recommendations on providing energy-efficient tax incentives for subsections of buildings that operate with specific utility-grade metering.

``(2) Protection of taxpayer information.--The Secretary and the Secretary of Energy shall share information on deductions allowed under this section and related reports submitted, as requested by each agency to fulfill its obligations under this section, with such redactions as deemed necessary to protect the personally identifiable financial information of a taxpayer.

``(3) Incorporation into department of energy programs.--The Secretary of Energy shall, to the maximum extent practicable, incorporate conclusions of the report under this subsection into current Department of Energy building performance and energy efficiency data collection and other reporting programs.

``(m) Termination.--This section shall not apply to any property placed in service after December 31, 2015.''.

(2) Effect on depreciation on earnings and profits.--Subparagraph (B) of section 312(k)(3), as amended by this title, is amended--

(A) by striking ``or 179E'' both places it appears in clause (i) and inserting ``179E, or 179F'',

(B) by striking ``or 179e'' in the heading and inserting

``179e, or 179f'', and

(3) Conforming amendment.--The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 179E the following new item:

``Sec. 179F. Deduction for retrofits of existing commercial and multifamily buildings.''.

(m) Effective Date.--Except as otherwise provided, the amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act.

______

SA 3186. Mr. CARDIN submitted an amendment intended to be proposed by him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE--OTHER PROVISIONS

SEC. _01. DEPRECIATION RECOVERY PERIOD FOR CERTAIN ROOF

SYSTEMS.

(a) 20-Year Recovery Period.--

(1) In general.--Subparagraph (F) of section 168(e)(3) is amended to read as follows:

``(F) 20-year property.--The term `20-year property' means--

``(i) initial clearing and grading land improvements with respect to any electric utility transmission and distribution plant, and

``(ii) any qualified energy-efficient cool roof replacement property.''.

(2) Qualified energy-efficient cool roof replacement property.--Section 168(e) is amended by adding at the end the following new paragraph:

``(9) Qualified energy-efficient cool roof replacement property.--

``(A) In general.--The term `qualified energy-efficient cool roof replacement property' means any roof system--

``(i) which is placed in service above conditioned or semi-heated space on an eligible commercial building,

``(ii) which has a slope equal to or less than 2:12,

``(iii) which replaces an existing roof system, and

``(iv) which includes--

``(I) insulation which meets or exceeds the minimum prescriptive requirements in tables A-1 to A-9 in the Normative Appendix A of ASHRAE Standard 189.1-2011, and

``(II) in the case of an eligible commercial building located in a climate zone other than climate zone 6, 7, or 8

(as specified in ASHRAE Standard 189.1-2011), a primary roof covering which has a cool roof surface.

``(B) Cool roof surface.--The term `cool roof surface' means a roof the exterior surface of which--

``(i) has a 3-year-aged solar reflectance of at least 0.55 and a 3-year-aged thermal emittance of at least 0.75, as determined in accordance with the Cool Roof Rating Council CRRC-1 Product Rating Program, or

``(ii) has a 3-year-aged solar reflectance index (SRI) of at least 64, as determined in accordance with ASTM Standard E1980, determined--

``(I) using a medium-wind-speed convection coefficient of 12 W/m2.K, and

``(II) using the values for 3-year-aged solar reflectance and 3-year-aged thermal emittance determined in accordance with the Cool Roof Rating Council CRRC-1 Product Rating Program.

``(C) Roof system.--The term `roof system' means a system of roof components, including roof insulation and a membrane or primary roof covering, but not including the roof deck, designed to weather-proof and improve the thermal resistance of a building.

``(D) Eligible commercial building.--The term `eligible commercial building' means any building--

``(i) which is within the scope of ASHRAE Standard 90.1-2010,

``(ii) which is located in the United States,

``(iii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and

``(iv) which was placed in service prior to December 31, 2009.

``(E) ASHRAE.--The term `ASHRAE' means the American Society of Heating, Refrigerating and Air-Conditioning Engineers.''.

(b) Requirement To Use Straight Line Method.--Paragraph (3) of section 168(b) is amended by adding at the end the following new subparagraph:

``(J) Any qualified energy-efficient cool roof replacement property.''.

(c) Alternative System.--The table contained in section 168(g)(3)(B) is amended by striking the last item and inserting the following new items:

``(F)(i).......................................................... 25

(F)(ii)......................................................27.5''.

(d) Depreciation Rules for Certain Qualified Energy-efficient Cool Roof Replacement Property for Purposes of Computing the Earnings and Profits of a Real Estate Investment Trust.--

(1) In general.--Paragraph (3) of section 312(k) is amended by adding at the end the following new subparagraph:

``(C) Treatment of qualified energy-efficient cool roof replacement property.--In the case of any qualified energy-efficient cool roof replacement property (within the meaning of section 168(e)(9)), the adjustment for depreciation to earnings and profits of a real estate investment trust for any taxable year shall be determined under the alternative depreciation method (within the meaning of section 168(g)(2)), except that the recovery period shall be 20 years.''.

(2) Conforming amendment.--Subparagraph (A) of section 312(k)(3) is amended by striking ``subparagraph (B),'' and inserting ``subparagraphs (B) and (C),''.

(e) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

______

SA 3187. Mr. CARDIN (for himself, Mr. Schatz, and Mrs. Feinstein) submitted an amendment intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow employers to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of the employer mandate under the Patient Protection and Affordable Care Act; which was ordered to lie on the table; as follows:

Beginning on page 47, strike line 10 through page 50, line 9.

Beginning on page 53, strike line 13 through page 55, line 17.

At the appropriate place, insert the following:

TITLE __--ENERGY EFFICIENCY TAX INCENTIVES ACT

SEC. _01. SHORT TITLE.

This title may be cited as the ``Energy Efficiency Tax Incentives Act''.

Subtitle A--Commercial Building Modernization

SEC. _11. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY-

EFFICIENT COMMERCIAL BUILDINGS.

(a) Extension.--

(1) Through 2016.--Section 179D(h) is amended by striking

``December 31, 2013'' and inserting ``December 31, 2016''.