Bowles-Simpson Plan of Lowering America's Debt Act - Prohibits the total amount of appropriations to the White House for the Executive Office of the President, to the President, and to Congress for FY2014-FY2018 from exceeding 85% of the total amount of such appropriations for FY2013. Eliminates cost-of-living adjustments (COLA) for Members of Congress during FY2014-FY2016.
Amends the Continuing Appropriations Act, 2011 to extend through December 31, 2015, the freeze on any COLA to the pay of certain federal civilian employees (thus extending such freeze from two to five calendar years).
Requires the Office of Management and Budget (OMB) to: (1) take appropriate measures to ensure that the total number of federal employees, beginning in FY2017, does not exceed 90% of the total number of federal employees on September 30, 2013; (2) continuously monitor all agencies, make a determination, as of September 30, 2013, on whether the total number of federal employees in any quarter of a fiscal year exceeds the maximum number allowed by this Act, and notify the President and Congress if the number exceeds the maximum; and (3) ensure that there is no increase in the procurement of service contracts due to this Act unless a cost comparison demonstrates that such contracts would be financially advantageous to the federal government. Allows the President to waive the workforce limitations imposed by this Act in specified circumstances.
Requires OMB to: (1) take appropriate measures through FY2016 to ensure that agencies shall appoint no more than one employee for every three employees retiring or otherwise separating from government service; (2) coordinate with federal departments and independent agencies to take certain steps to limit government printing costs; and (3) dispose of a quantity of real property worth at least $100 million altogether (with specified exceptions) that is not being used, and that will not be used, to meet the needs of the federal government for FY2014-FY2019.
Prohibits the total amount of funds appropriated for travel expenses for each agency for each of FY2014-FY2018 from exceeding 80% of the total amount of funds appropriated for FY2013. Reduces the amount available to the General Services Administration (GSA) for FY2014 and succeeding fiscal years for acquiring new vehicles for the federal fleet to 80% of the amount available for FY2012 for such purpose.
Amends the Congressional Budget Act of 1974 to prohibit consideration in Congress of legislation that includes an earmark, limited tax benefit, or limited tariff benefit.
Amends the Internal Revenue Code to: (1) impose after 2012, a 10% income tax rate on taxable income of $100,000 or less and a 20% rate on taxable income over $100,000, and a 20% rate for net capital gain exceeding $1 million; (2) reduce the income tax rate on corporations to a flat rate of 20%; (3) repeal various tax credits, deductions, and exclusions, including the alternative minimum tax (AMT) on individuals; (4) provide for 5-year phaseout of specified tax expenditures, and (5) terminate the authority for issuing certain tax-exempt bonds for financing projects relating to energy conservation, infrastructure, education, and hospital construction.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 243 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 243
To adopt the seven immediate reforms recommended by the National
Commission on Fiscal Responsibility and Reform to reduce spending and
make the Federal Government more efficient.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 14, 2013
Mr. Ross introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Oversight and Government Reform, House Administration, Rules, and the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To adopt the seven immediate reforms recommended by the National
Commission on Fiscal Responsibility and Reform to reduce spending and
make the Federal Government more efficient.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) In General.--This Act may be cited as the ``Bowles-Simpson Plan
of Lowering America's Debt Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REDUCED EXPENDITURES
Sec. 101. Reduction in appropriations to the White House and Congress.
Sec. 102. Denial of certain annual pay adjustments for Members of
Congress.
Sec. 103. Pay freeze for Federal employees.
Sec. 104. Reduction in Federal workforce.
Sec. 105. Reduction in Government travel costs.
Sec. 106. Limitation on Government printing costs.
Sec. 107. Reduction in Federal vehicle costs.
Sec. 108. Sale of excess Federal property.
Sec. 109. Prohibition on earmarks.
TITLE II--TAX REFORM
Sec. 200. Amendment of 1986 Code.
Subtitle A--Tax Rates
Sec. 201. Individual rates.
Sec. 202. Repeal of alternative minimum tax on individuals.
Sec. 203. Permanent repeal of personal exemption phaseout.
Sec. 204. Permanent repeal of phaseout of overall limitation on
itemized deductions.
Sec. 205. Corporate income tax rate reduced to flat rate of 20 percent.
Sec. 206. Renewed temporary dividends received deduction.
Subtitle B--Elimination of Tax Expenditures
Sec. 211. Termination of credit for increasing research activities.
Sec. 212. Termination of deduction for intangible drilling and
development costs.
Sec. 213. Repeal of domestic production activities deduction with
respect to production of coal, lignite, or
oil shale.
Sec. 214. Repeal percentage depletion for oil and natural gas wells.
Sec. 215. Termination of credit for electricity produced from certain
renewable resources.
Sec. 216. Termination of energy credit.
Sec. 217. Repeal of credit for alcohol used as fuel.
Sec. 218. Repeal of credit for alcohol fuel, biodiesel, and alternative
fuel mixtures.
Sec. 219. Repeal of credit for biodiesel and renewable diesel used as
fuel.
Sec. 220. Repeal of credit for certain plug-in electric vehicles.
Sec. 221. Early termination of credit for qualified fuel cell motor
vehicles.
Sec. 222. Repeal of deduction for energy conservation subsidies
provided by public utilities.
Sec. 223. Repeal of qualifying advanced coal project credit.
Sec. 224. Repeal of qualifying gasification project credit.
Sec. 225. Repeal of special allowance for cellulosic biofuel plant
property.
Sec. 226. Repeal of election to expense certain refineries.
Sec. 227. Repeal of 2-year amortization of geological and geophysical
expenditures.
Sec. 228. Repeal of deduction for energy efficient commercial building
property.
Sec. 229. Repeal of credit for construction of new energy efficient
homes.
Sec. 230. Repeal of credit for energy efficient appliances.
Sec. 231. Repeal of credit for residential energy efficient property.
Sec. 232. Repeal of advanced energy project credit.
Sec. 233. Repeal of credit for carbon dioxide sequestration.
Sec. 234. Repeal of low-income housing credit.
Sec. 235. Repeal of Hope and Lifetime Learning Credits.
Sec. 236. Repeal of work opportunity tax credit.
Sec. 237. Repeal of credit for expenses for household and dependent
care services necessary for gainful
employment.
Sec. 238. Repeal of credit for adoption expenses.
Sec. 239. Repeal of credit for expenditures to provide access to
disabled individuals.
Sec. 240. Repeal of earned income tax credit.
Sec. 241. Repeal of energy conservation subsidies provided by public
utilities.
Sec. 242. Repeal of election to expense certain refinery property.
Sec. 243. Repeal of deduction for endangered species recovery
expenditures.
Sec. 244. Repeal of exclusion of cancellation of indebtedness income of
solvent farmers.
Sec. 245. Repeal of alternative minimum tax treatment of certain
property and casualty insurance companies.
Sec. 246. Repeal of small life insurance company deduction.
Sec. 247. Termination of $25,000 exemption from passive loss rules for
rental real estate activities.
Sec. 248. Repeal of discharge of indebtedness exclusion.
Sec. 249. Repeal of certain exceptions for imputed interest rules.
Sec. 250. Termination of partial exclusion for gain from certain small
business stock.
Sec. 251. Termination of treatment of losses on small business stock as
ordinary.
Sec. 252. Repeal of student loan interest deduction.
Sec. 253. Repeal of deduction of tuition and related expenses.
Sec. 254. Repeal of gross income exclusion for United States savings
bonds used to pay higher education
expenses.
Sec. 255. Elimination of personal exemption for students age 19 and
older.
Sec. 256. Elimination of above the line deduction for certain expenses
of elementary and secondary school
teachers.
Sec. 257. Elimination of gross income exclusion for discharge of
certain student loan debt.
Sec. 258. Repeal of exclusion from gross income for rental value of
parsonages.
Sec. 259. Repeal of exclusion from gross income for benefits provided
to volunteer firefighters and emergency
medical responders.
Sec. 260. Repeal of special treatment of Blue Cross and Blue Shield
organizations, etc.
Sec. 261. Sense of the House regarding a territorial tax system.
Subtitle C--Phaseout of Tax Expenditures
Sec. 271. Five-year phaseout of certain tax expenditures.
Subtitle D--Special Status
Sec. 381. Termination of qualified energy conservation bonds.
Sec. 382. Termination of new clean renewable energy bonds.
Sec. 383. Termination of exempt facility bond treatment for water,
sewage, and solid waste facilities.
Sec. 384. Termination of expensing and amortization of reforestation
expenditures and expensing of timber-
growing costs.
Sec. 385. Termination of deferral of gain on sales of stock in
agricultural refiners and processors to
eligible farm cooperatives.
Sec. 386. Termination of election to expense certain depreciable
business assets.
Sec. 387. Termination of qualified small issue bonds.
Sec. 388. Termination of exempt facility bond treatment for qualified
highway or surface freight transfer
facilities.
Sec. 389. Termination of exempt facility bond treatment for airports,
docks, and wharves.
Sec. 390. Termination of tribal economic development bonds.
Sec. 391. Termination of exclusion from gross income of United States
savings bonds interest used to pay higher
education expenses.
Sec. 392. Termination of qualified zone academy bonds.
Sec. 393. Termination of exempt facility bond treatment for qualified
public educational facilities.
Sec. 394. Termination of hospital bonds.
TITLE I--REDUCED EXPENDITURES
SEC. 101. REDUCTION IN APPROPRIATIONS TO THE WHITE HOUSE AND CONGRESS.
(a) Appropriations to the White House.--Notwithstanding any other
provision of law, the total amount of funds appropriated to the
appropriations account under the heading ``The White House'' under the
heading ``EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT'' for each of fiscal years 2014 through 2018 may not
exceed 85 percent of the total amount of funds appropriated to that
account for fiscal year 2013.
(b) Appropriations to Congress.--Notwithstanding any other
provision of law, the total amount of funds appropriated under the
headings ``SENATE'' and ``HOUSE OF REPRESENTATIVES'' for each of fiscal
years 2014 through 2018 may not exceed 85 percent of the total amount
of funds appropriated under those headings for fiscal year 2013.
SEC. 102. DENIAL OF CERTAIN ANNUAL PAY ADJUSTMENTS FOR MEMBERS OF
CONGRESS.
Notwithstanding any other provision of law, no adjustment shall be
made under section 601(a) of the Legislative Reorganization Act of 1946
(2 U.S.C. 31) during fiscal year 2014, 2015, or 2016.
SEC. 103. PAY FREEZE FOR FEDERAL EMPLOYEES.
(a) In General.--Section 147 of the Continuing Appropriations Act,
2011 (Public Law 111-242; 5 U.S.C. 5303 note), as amended by section
114(a) of the Continuing Appropriations Resolution, 2013 (Public Law
112-175; 126 Stat. 1316) is amended--
(1) in subsection (b)(1), by striking the matter after
``ending on'' and before ``shall be made'' and inserting
``December 31, 2015''; and
(2) in subsection (c), by striking the matter after
``ending on'' and before ``no senior executive'' and inserting
``December 31, 2015''.
(b) Elimination of Delayed Adjustment.--Section 114(b) of the
Continuing Appropriations Resolution, 2013 is repealed.
SEC. 104. REDUCTION IN FEDERAL WORKFORCE.
(a) Definition.--For the purpose of this section--
(1) the term ``total number of Federal employees'' means
the total number of Federal employees in all agencies;
(2) the term ``Federal employee'' means an employee as
defined by section 2105 of title 5, United States Code; and
(3) the term ``agency'' means an Executive agency as
defined by section 105 of title 5, United States Code,
excluding the Government Accountability Office.
(b) Limitation.--The President, through the Office of Management
and Budget (in consultation with the Office of Personnel Management),
shall take appropriate measures to ensure that, effective beginning in
fiscal year 2017, the total number of Federal employees (as determined
under subsection (c)) shall not exceed 90 percent of the total number
of Federal employees as of September 30, 2013 (as so determined).
(c) Monitoring and Notification.--The Office of Management and
Budget (in consultation with the Office of Personnel Management)--
(1) shall continuously monitor all agencies and make a
determination, as of September 30, 2013, and the last day of
each quarter of each fiscal year beginning thereafter, as to
whether or not the total number of Federal employees exceeds
the maximum number allowable under subsection (b); and
(2) whenever a determination under paragraph (1) is made
that the total number of Federal employees exceeds the maximum
number allowable under subsection (b), shall provide written
notice to that effect to the President and Congress within 14
days after the last day of the quarter to which such
determination relates.
(d) Compliance.--Whenever, with respect to the quarter ending on
September 30, 2016, or any subsequent quarter, the Office of Management
and Budget provides written notice under subsection (c)(2) that the
total number of Federal employees exceeds the maximum number allowable
under subsection (b), no agency may thereafter appoint any employee to
fill any vacancy within such agency until the Office of Management and
Budget provides written notice to the President and Congress of a
determination under subsection (c)(1) that the total number of Federal
employees no longer exceeds the maximum number allowable under
subsection (b). Any notice under the preceding sentence shall be
provided within 14 days after the last day of the quarter to which the
determination relates.
(e) Waiver.--
(1) Emergencies.--This section may be waived upon a
determination by the President that--
(A) the existence of a state of war or other
national security concern so requires; or
(B) the existence of an extraordinary emergency
threatening life, health, public safety, property, or
the environment so requires.
(2) Agency efficiency or critical mission.--This section
may be waived, with respect to a particular position or
category of positions in an agency, upon a determination by the
President that the efficiency of the agency or the performance
of a critical agency mission so requires.
(f) Replacement Rate.--To the extent necessary to achieve the
workforce reduction required by subsection (b), the Office of
Management and Budget (in consultation with the Office of Personnel
Management) shall take appropriate measures to ensure that agencies
shall appoint no more than 1 employee for every 3 employees retiring or
otherwise separating from Government service after the date of the
enactment of this Act. This subsection shall cease to apply after
September 30, 2016.
(g) Counting Rule.--For purposes of this section, any determination
of the number of employees in an agency shall be expressed on a full-
time equivalent basis.
(h) Limitation on Procurement of Service Contracts.--The President,
through the Office of Management and Budget (in consultation with the
Office of Personnel Management), shall take appropriate measures to
ensure that there is no increase in the procurement of service
contracts by reason of the enactment of this Act, except in cases in
which a cost comparison demonstrates that such contracts would be to
the financial advantage of the Government.
SEC. 105. REDUCTION IN GOVERNMENT TRAVEL COSTS.
(a) Definition.--In this section, the term ``agency'' means an
executive agency as defined under section 105 of title 5, United States
Code.
(b) Reduction.--Notwithstanding any other provision of law, the
total amount of funds appropriated to the appropriations account
providing for travel expenses for each agency for each of fiscal years
2014, 2015, 2016, 2017, and 2018 may not exceed 80 percent of the total
amount of funds appropriated to each of those appropriations accounts
for fiscal year 2013.
SEC. 106. LIMITATION ON GOVERNMENT PRINTING COSTS.
Not later than 180 days after the date of enactment of this Act,
the Director of the Office of Management and Budget shall coordinate
with the heads of Federal departments and independent agencies to--
(1) determine which Government publications could be
available on Government websites and no longer printed and to
devise a strategy to reduce overall Government printing costs
over the 10-year period beginning with fiscal year 2014, except
that the Director shall ensure that essential printed documents
prepared for social security recipients, medicare
beneficiaries, and other populations in areas with limited
internet access or use continue to remain available;
(2) establish government-wide Federal guidelines on
employee printing;
(3) issue on the Office of Management and Budget's public
website the results of a cost-benefit analysis on implementing
a digital signature system and on establishing employee
printing identification systems, such as the use of individual
employee cards or codes, to monitor the amount of printing done
by Federal employees; except that the Director of the Office of
Management and Budget shall ensure that Federal employee
printing costs unrelated to national defense, homeland
security, border security, national disasters, and other
emergencies do not exceed $860,000,000 annually; and
(4) issue guidelines requiring every department, agency,
commission or office to list at a prominent place near the
beginning of each publication distributed to the public and
issued or paid for by the Federal Government--
(A) the name of the issuing agency, department,
commission or office;
(B) the total number of copies of the document
printed;
(C) the collective cost of producing and printing
all of the copies of the document; and
(D) the name of the firm publishing the document.
SEC. 107. REDUCTION IN FEDERAL VEHICLE COSTS.
Notwithstanding any other provision of law, for fiscal year 2014
and each fiscal year thereafter, the amount made available to the
General Services Administration for the acquisition of new vehicles for
the Federal fleet shall not exceed an amount equal to 80 percent of the
amount made available for the acquisition of those vehicles for fiscal
year 2012.
SEC. 108. SALE OF EXCESS FEDERAL PROPERTY.
(a) In General.--Chapter 5 of subtitle I of title 40, United States
Code, is amended by adding at the end the following:
``SUBCHAPTER VII--EXPEDITED DISPOSAL OF REAL PROPERTY
``Sec. 621. Definitions
``In this subchapter:
``(1) Director.--The term `Director' means the Director of
the Office of Management and Budget.
``(2) Landholding agency.--The term `landholding agency'
means a landholding agency (as defined in section 501(i) of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411(i))).
``(3) Real property.--
``(A) In general.--The term `real property' means--
``(i) a parcel of real property under the
administrative jurisdiction of the Federal
Government that is--
``(I) excess;
``(II) surplus;
``(III) underperforming; or
``(IV) otherwise not meeting the
needs of the Federal Government, as
determined by the Director; and
``(ii) a building or other structure
located on real property described in clause
(i).
``(B) Exclusion.--The term `real property' excludes
any parcel of real property, and any building or other
structure located on real property, that is to be
closed or realigned under the Defense Authorization
Amendments and Base Closure and Realignment Act (10
U.S.C. 2687 note; Public Law 100-526).
``Sec. 622. Disposal program
``(a) In General.--Except as provided in subsection (e), the
Director shall, by sale or auction, dispose of a quantity of real
property with an aggregate value of not less than $100,000,000 that, as
determined by the Director, is not being used, and will not be used, to
meet the needs of the Federal Government for the period of fiscal years
2014 through 2019.
``(b) Recommendations.--The head of each landholding agency shall
recommend to the Director real property for disposal under subsection
(a).
``(c) Selection of Properties.--After receiving recommendations of
candidate real property under subsection (b), the Director--
``(1) with the concurrence of the head of each landholding
agency, may select the real property for disposal under
subsection (a); and
``(2) shall notify the recommending landholding agency head
of the selection of the real property.
``(d) Website.--The Director shall ensure that all real properties
selected for disposal under this section are listed on a website that
shall--
``(1) be updated routinely; and
``(2) include the functionality to allow any member of the
public, at the option of the member, to receive updates of the
list through electronic mail.
``(e) Transfer of Property.--The Director may transfer real
property selected for disposal under this section to the Department of
Housing and Urban Development if the Secretary of Housing and Urban
Development determines that the real property is suitable for use in
assisting the homeless.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 5 of subtitle I of title 40, United States Code, is amended by
inserting after the item relating to section 611 the following:
``subchapter vii--expedited disposal of real property
``Sec. 621. Definitions.
``Sec. 622. Disposal program.''.
SEC. 109. PROHIBITION ON EARMARKS.
Section 312 of the Congressional Budget Act of 1974 is amended by
inserting at the end the following:
``(g) Prohibition on Earmarks.--
``(1) Bills and joint resolutions.--
``(A) In general.--It shall not be in order in the
Senate or the House of Representatives to consider a
bill, resolution, or amendment that includes an
earmark, limited tax benefit, or limited tariff
benefit.
``(B) Procedure.--In the Senate, a point of order
under this paragraph may be raised by a Senator as
provided in section 313(e) of the Congressional Budget
Act of 1974.
``(2) Conference report.--
``(A) In general.--It shall not be in order in the
Senate or the House of Representatives to vote on the
adoption of a report of a committee of conference if
the report includes an earmark, limited tax benefit, or
limited tariff benefit.
``(B) Procedure.--When the Senate is considering a
conference report on, or an amendment between the
Houses in relation to, an appropriation Act, upon a
point of order being made by any Senator pursuant to
this paragraph, and such point of order being
sustained, such material contained in such conference
report shall be deemed stricken, and the Senate shall
proceed to consider the question of whether the Senate
shall recede from its amendment and concur with a
further amendment, or concur in the House amendment
with a further amendment, as the case may be, which
further amendment shall consist of only that portion of
the conference report or House amendment, as the case
may be, not so stricken. Any such motion in the Senate
shall be debatable under the same conditions as was the
conference report. In any case in which such point of
order is sustained against a conference report (or
Senate amendment derived from such conference report by
operation of this subsection), no further amendment
shall be in order.
``(3) Waiver.--Any Senator may move to waive any or all
points of order under this subsection by an affirmative vote of
two-thirds of the Members, duly chosen and sworn.
``(4) Definitions.--For the purpose of this subsection--
``(A) the term `earmark' means a provision or
report language included primarily at the request of a
Senator or Member of the House of Representatives
providing, authorizing, or recommending a specific
amount of discretionary budget authority, credit
authority, or other spending authority for a contract,
loan, loan guarantee, grant, loan authority, or other
expenditure with or to an entity, or targeted to a
specific State, locality or Congressional district,
other than through a statutory or administrative
formula-driven or competitive award process;
``(B) the term `limited tax benefit' means any
revenue provision that--
``(i) provides a Federal tax deduction,
credit, exclusion, or preference to a
particular beneficiary or limited group of
beneficiaries under the Internal Revenue Code
of 1986; and
``(ii) contains eligibility criteria that
are not uniform in application with respect to
potential beneficiaries of such provision; and
``(C) the term `limited tariff benefit' means a
provision modifying the Harmonized Tariff Schedule of
the United States in a manner that benefits 10 or fewer
entities.
``(5) Application.--This subsection shall not apply to any
authorization of appropriations to a Federal entity if such
authorization is not specifically targeted to a State, locality
or congressional district.''.
TITLE II--TAX REFORM
SEC. 200. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
Subtitle A--Tax Rates
SEC. 201. INDIVIDUAL RATES.
(a) In General.--Section 1(i) is amended to read as follows:
``(i) Post-2012 Rate Table.--
``(1) In general.--In the case of taxable years beginning
after December 31, 2012, the following table shall apply in
lieu of the tables under subsections (a), (b), (c), (d), and
(e):
``If taxable income is: The tax is:
Not over $100,000..............
10% of taxable income
Over $100,000..................
$10,000, plus 20% of the excess
over $100,000.
``(2) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2013, the Secretary shall prescribe, in
the same manner as under subsection (f), a table which
shall apply in lieu of the table under paragraph (1),
except that subsection (f)(3)(B) shall be applied by
substituting `2012' for `1992'.''.
(b) Maximum Capital Gains Rate.--Paragraph (1) of section 1(h) is
amended to read as follows:
``(1) In general.--If a taxpayer has a net capital gain for
any taxable year, the tax imposed by this section for such
taxable year shall not exceed the sum of--
``(A) a tax computed at the rates and in the same
manner as if this subsection had not been enacted on
taxable income reduced by the net capital gain;
``(B) 0 percent of so much of the net capital gain
as does not exceed $1,000,000; and
``(C) 20 percent of so much of net capital gain as
exceeds $1,000,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 202. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDIVIDUALS.
(a) In General.--Section 55(a) is amended by adding at the end the
following new flush sentence:
``For purposes of this title, the tentative minimum tax on any taxpayer
other than a corporation for any taxable year beginning after December
31, 2012, shall be zero.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2012.
SEC. 203. PERMANENT REPEAL OF PERSONAL EXEMPTION PHASEOUT.
(a) In General.--Section 151(d) is amended by striking paragraph
(3).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2012.
SEC. 204. PERMANENT REPEAL OF PHASEOUT OF OVERALL LIMITATION ON
ITEMIZED DEDUCTIONS.
(a) In General.--Part I of subchapter B of chapter 1 is amended by
striking section 68 (and the item relating to such section in the table
of sections for such part).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 205. CORPORATE INCOME TAX RATE REDUCED TO FLAT RATE OF 20 PERCENT.
(a) In General.--Paragraph (1) of section 11(b) is amended by
striking ``shall be the sum of--'' and all that follows through the
period at the end and inserting ``shall be 20 percent of taxable
income.''.
(b) Personal Service Corporations.--Paragraph (2) of section 11(b)
is amended by striking ``35 percent'' and inserting ``20 percent''.
(c) Conforming Amendments.--
(1) Subsection (a) of section 1201 is amended--
(A) by striking ``35 percent (determined without
regard to the last 2 sentences of section 11(b))'' and
inserting ``20 percent'', and
(B) by striking ``35 percent'' each place it
appears (other than in the matter preceding paragraph
(1)) and inserting ``20 percent''.
(2) Paragraphs (1), (2), and (6) of section 1445(e) are
each amended by striking ``35 percent'' and inserting ``20
percent''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 206. RENEWED TEMPORARY DIVIDENDS RECEIVED DEDUCTION.
(a) Election.--Subsection (f) of section 965 is amended to read as
follows:
``(f) Election.--The taxpayer may elect to apply this section to--
``(1) the taxpayer's last taxable year which begins before
the date of the enactment of this subsection, or
``(2) 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.''.
(b) Limitation.--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.''.
(c) 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 $25,000 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) Threshold Period.--Section 965 is amended by striking ``June
30, 2003'' each place it occurs and inserting ``June 30, 2011''.
(e) Base Period.--Paragraph (2) of subsection 965(c) is amended by
inserting at the end of subparagraph (A) the following flush sentence:
``For purposes of this paragraph, taxable years shall not include any
year for which an election under section 965 was in effect.''.
(f) Indebtedness Determination Date.--Subparagraph (B) of section
965(b)(3) is amended by striking ``October 3, 2004'' and inserting
``January 19, 2012''.
(g) Conforming Amendments.--
(1) Subsection 965(c), as amended by subsection (e), is
amended by striking paragraph (1) and redesignating paragraphs
(2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4),
respectively.
(2) Paragraph 965(c)(4), as redesignated by paragraph (1),
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.''.
(h) Effective Date.--The amendments made by this section shall
apply to taxable years ending on or after the date of the enactment of
this Act.
Subtitle B--Elimination of Tax Expenditures
SEC. 211. TERMINATION OF CREDIT FOR INCREASING RESEARCH ACTIVITIES.
Effective for taxable years beginning after the date of the
enactment of this Act, section 41 is hereby repealed.
SEC. 212. TERMINATION OF DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS.
(a) In General.--Section 263(c) is amended by adding at the end the
following new sentence: ``This subsection shall not apply to any
taxable year beginning after the date of the enactment of this
sentence.''.
(b) Conforming Amendments.--Paragraphs (2) and (3) of section
291(b) are each amended by striking ``section 263(c), 616(a),'' and
inserting ``section 616(a)''.
(c) Effective Date.--The amendments made by this section shall
apply to costs paid or incurred in taxable years beginning after the
date of the enactment of this Act.
SEC. 213. REPEAL OF DOMESTIC PRODUCTION ACTIVITIES DEDUCTION WITH
RESPECT TO PRODUCTION OF COAL, LIGNITE, OR OIL SHALE.
(a) In General.--Subparagraph (B) of section 199(c)(4), as amended
by this Act, is amended by striking ``or'' at the end of clause (iii),
by striking the period at the end of clause (iv) and inserting ``,
or'', and by adding at the end the following new clause:
``(v) the lease, rental, license, sale, exchange, or other
disposition of coal, lignite, or oil shale.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 214. REPEAL PERCENTAGE DEPLETION FOR OIL AND NATURAL GAS WELLS.
(a) In General.--Section 613A is amended by adding at the end the
following new subsection:
``(f) Termination.--After the date of the enactment of the Bowles-
Simpson Plan of Lowering America's Debt Act, this section and section
611 shall not apply to any oil or gas well.''.
(b) Conforming Amendment.--Section 613A(c)(1) is amended by
striking ``subsection (d)'' and inserting ``subsections (d) and (f)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 215. TERMINATION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN
RENEWABLE RESOURCES.
Effective for property placed in service after the date of the
enactment of this Act, section 45 is repealed.
SEC. 216. TERMINATION OF ENERGY CREDIT.
Effective for property placed in service after the date of the
enactment of this Act, section 48 is repealed.
SEC. 217. REPEAL OF CREDIT FOR ALCOHOL USED AS FUEL.
Effective for fuel sold or used after the date of the enactment of
this Act, section 40 is repealed.
SEC. 218. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE
FUEL MIXTURES.
Effective for fuel sold and used after the date of the enactment of
this Act, section 6426 is repealed.
SEC. 219. REPEAL OF CREDIT FOR BIODIESEL AND RENEWABLE DIESEL USED AS
FUEL.
Effective for fuel produced, and sold or used, after the date of
the enactment of this Act, section 40A is repealed.
SEC. 220. REPEAL OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.
Effective for property placed in service after the date of the
enactment of this Act, section 30 is repealed.
SEC. 221. EARLY TERMINATION OF CREDIT FOR QUALIFIED FUEL CELL MOTOR
VEHICLES.
Effective for property placed in service after the date of the
enactment of this Act, section 30B is repealed.
SEC. 222. REPEAL OF DEDUCTION FOR ENERGY CONSERVATION SUBSIDIES
PROVIDED BY PUBLIC UTILITIES.
Effective for amounts received after the date of the enactment of
this Act, section 136 is repealed.
SEC. 223. REPEAL OF QUALIFYING ADVANCED COAL PROJECT CREDIT.
Effective for taxable years beginning after the date of the
enactment of this Act, section 48A is repealed.
SEC. 224. REPEAL OF QUALIFYING GASIFICATION PROJECT CREDIT.
Effective for taxable years beginning after the date of the
enactment of this Act, section 48B is repealed.
SEC. 225. REPEAL OF SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL PLANT
PROPERTY.
(a) In General.--Section 168 is amended by striking subsection (l).
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 226. REPEAL OF ELECTION TO EXPENSE CERTAIN REFINERIES.
Effective for property placed in service after the date of the
enactment of this Act, section 179C is repealed.
SEC. 227. REPEAL OF 2-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES.
(a) In General.--Paragraphs (1) and (4) of section 167(h) are each
amended by striking ``24-month'' and inserting ``7-year''.
(b) Conforming Amendment.--Subsection (h) of section 167 is amended
by striking paragraph (5).
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 228. REPEAL OF DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL BUILDING
PROPERTY.
Effective for property placed in service after the date of the
enactment of this Act, section 179D is repealed.
SEC. 229. REPEAL OF CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT
HOMES.
Effective for homes acquired after the date of the enactment of
this Act, section 45L is repealed.
SEC. 230. REPEAL OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.
Effective for property placed in service after the date of the
enactment of this Act, section 25C is repealed.
SEC. 231. REPEAL OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
Effective for property placed in service after the date of the
enactment of this Act, section 25D is repealed.
SEC. 232. REPEAL OF ADVANCED ENERGY PROJECT CREDIT.
Effective for property placed in service after the date of the
enactment of this Act, section 48C is repealed.
SEC. 233. REPEAL OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
Effective for carbon dioxide captured after the date of the
enactment of this Act, section 45Q is repealed.
SEC. 234. REPEAL OF LOW-INCOME HOUSING CREDIT.
Effective for property placed in service after the date of the
enactment of this Act, section 42 is repealed.
SEC. 235. REPEAL OF HOPE AND LIFETIME LEARNING CREDITS.
Effective for amounts paid or incurred after the date of the
enactment of this Act, section 25A is repealed.
SEC. 236. REPEAL OF WORK OPPORTUNITY TAX CREDIT.
Effective for wages paid after the date of the enactment of this
Act, section 51 is repealed.
SEC. 237. REPEAL OF CREDIT FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT
CARE SERVICES NECESSARY FOR GAINFUL EMPLOYMENT.
Effective for expenses paid after the date of the enactment of this
Act, section 21 is repealed.
SEC. 238. REPEAL OF CREDIT FOR ADOPTION EXPENSES.
Effective for expenses paid or incurred after the date of the
enactment of this Act, section 23 is repealed.
SEC. 239. REPEAL OF CREDIT FOR EXPENDITURES TO PROVIDE ACCESS TO
DISABLED INDIVIDUALS.
Effective for expenditures paid or incurred after the date of the
enactment of this Act, section 44 is repealed.
SEC. 240. REPEAL OF EARNED INCOME TAX CREDIT.
Effective for taxable years beginning after the date of the
enactment of this Act, section 32 is repealed.
SEC. 241. REPEAL OF ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC
UTILITIES.
Effective for amounts received after the date of the enactment of
this Act, section 136 is repealed.
SEC. 242. REPEAL OF ELECTION TO EXPENSE CERTAIN REFINERY PROPERTY.
Effective for property placed in service after the date of the
enactment of this Act, sections 168(l) and 179C are repealed.
SEC. 243. REPEAL OF DEDUCTION FOR ENDANGERED SPECIES RECOVERY
EXPENDITURES.
(a) In General.--Subsections (a) and (c)(1) of section 175 are each
amended by striking ``, or for endangered species recovery''.
(b) Conforming Amendments.--
(1) The heading for section 175 is amended by striking ``;
endangered species recovery expenditures''.
(2) Paragraph (1) of section 175(c) is amended by striking
the second sentence.
(3) Subparagraph (A) of section 175(c)(3) is amended--
(A) by striking ``or the recovery plan pursuant to
the Endangered Species Act of 1973'', and
(B) by striking ``, or endangered species recovery
plan'' in the heading thereof.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred after the date of the enactment
of this Act.
SEC. 244. REPEAL OF EXCLUSION OF CANCELLATION OF INDEBTEDNESS INCOME OF
SOLVENT FARMERS.
(a) In General.--Paragraph (1) of section 108(a) is amended by
striking subparagraph (C) and by redesignating subparagraphs (D) and
(E) as subparagraphs (C) and (D) respectively.
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 108(a)(2) is amended by
striking ``(D), and (E)'' and inserting ``and (D)''.
(2) Subparagraph (B) of section 108(a)(2) is amended--
(A) by striking ``Subparagraphs (C) and (D)'' and
inserting ``Subparagraph (C)'', and
(B) by striking ``qualified farm exclusion and''.
(3) Paragraph (1) of section 108(b) is amended by striking
``(B), or (C)'' and inserting ``or (B)''.
(4) Subsection (c) of section 108 is amended by striking
``under subparagraph (D)'' each place it appears and inserting
``under subparagraph (C)''.
(5) Section 108 is amended by striking subsection (g) and
by redesignating subsections (h) and (i) as subsections (g) and
(h), respectively.
(c) Effective Date.--The amendments made by this section shall
apply to discharges of indebtedness after the date of the enactment of
this Act.
SEC. 245. REPEAL OF ALTERNATIVE MINIMUM TAX TREATMENT OF CERTAIN
PROPERTY AND CASUALTY INSURANCE COMPANIES.
(a) In General.--Clause (i) of section 56(g)(4)(B) is amended by
striking the last sentence.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 246. REPEAL OF SMALL LIFE INSURANCE COMPANY DEDUCTION.
(a) In General.--Section 806 is repealed.
(b) Conforming Amendments.--
(1) Section 804 is amended by striking ``means--'' and all
that follows through the period at the end and inserting the
following: ``means the general deductions provided in section
805.''.
(2) Subparagraph (B) of section 453B(e)(2) is amended by
inserting ``, as in effect on the day before the date of the
enactment of the Bowles-Simpson Plan of Lowering America's Debt
Act'' after ``section 806(b)(3)''.
(3) Subclause (II) of section 465(c)(7)(D)(v) is amended by
inserting ``, as in effect on the day before the date of the
enactment of the Bowles-Simpson Plan of Lowering America's Debt
Act'' after ``section 806(b)(3)''.
(4) Subparagraph (A) of section 815(c)(2) is amended by
striking clause (ii), by inserting ``and'' at the end of clause
(i), and by redesignating clause (iii) as clause (ii).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 247. TERMINATION OF $25,000 EXEMPTION FROM PASSIVE LOSS RULES FOR
RENTAL REAL ESTATE ACTIVITIES.
(a) In General.--Section 469 is amended by striking subsection (i).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 248. REPEAL OF DISCHARGE OF INDEBTEDNESS EXCLUSION.
Effective for discharges of indebtedness occurring on or after the
date of the enactment of this Act, section 108 is repealed.
SEC. 249. REPEAL OF CERTAIN EXCEPTIONS FOR IMPUTED INTEREST RULES.
(a) Determination of Issue Price in the Case of Certain Debt
Instruments Issued for Property.--Paragraph (3) of section 1274(c)(3)
is amended by striking subparagraphs (A), (B), and (C).
(b) Special Rule for Certain Transactions Where Stated Principal
Amount Does Not Exceed Certain Amount.--Section 1274A is amended by
adding at the end the following new subsection:
``(f) Termination.--This section shall not apply to any sales or
exchanges after the date of the enactment of this Act.''.
(c) Effective Date.--The amendment made by subsection (a) shall
apply to sales or exchanges after the date of the enactment of this
Act.
SEC. 250. TERMINATION OF PARTIAL EXCLUSION FOR GAIN FROM CERTAIN SMALL
BUSINESS STOCK.
Section 1202 is amended by adding at the end the following new
subsection:
``(l) Termination.--This section shall not apply to any sale or
exchange of stock after the date of the enactment of the Bowles-Simpson
Plan of Lowering America's Debt Act.''.
SEC. 251. TERMINATION OF TREATMENT OF LOSSES ON SMALL BUSINESS STOCK AS
ORDINARY.
Section 1244 is amended by adding at the end the following new
subsection:
``(f) Termination.--This section shall not apply to any sale or
exchange of stock after the date of the enactment of the Bowles-Simpson
Plan of Lowering America's Debt Act.''.
SEC. 252. REPEAL OF STUDENT LOAN INTEREST DEDUCTION.
Effective for any loan interest paid after the date of the
enactment of this Act, section 221 is repealed.
SEC. 253. REPEAL OF DEDUCTION OF TUITION AND RELATED EXPENSES.
Effective for amounts paid after the date of the enactment of this
Act, section 222 is repealed.
SEC. 254. REPEAL OF GROSS INCOME EXCLUSION FOR UNITED STATES SAVINGS
BONDS USED TO PAY HIGHER EDUCATION EXPENSES.
Effective for taxable years beginning after the date of the
enactment of this Act, section 135 is repealed.
SEC. 255. ELIMINATION OF PERSONAL EXEMPTION FOR STUDENTS AGE 19 AND
OLDER.
(a) In General.--Subparagraph (A) of section 152(c)(3) is amended--
(1) by striking clause (ii),
(2) by striking ``, or'' at the end of clause (i) and
inserting a period, and
(3) by striking ``child and'' and all that follows through
``(i) has not attained'' and inserting ``child and has not
attained''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 256. ELIMINATION OF ABOVE THE LINE DEDUCTION FOR CERTAIN EXPENSES
OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Paragraph (2) of section 62(a) is amended by
striking subparagraph (D) and by redesignating subparagraph (E) as
subparagraph (D).
(b) Conforming Amendments.--
(1) Section 62 is amended by striking subsection (d) and
redesignating subsection (e) as subsection (d).
(2) Paragraph (20) of section 62(a) is amended by striking
``subsection (e)'' and inserting ``subsection (d)''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
SEC. 257. ELIMINATION OF GROSS INCOME EXCLUSION FOR DISCHARGE OF
CERTAIN STUDENT LOAN DEBT.
Section 108 is amended by adding at the end the following new
paragraph:
``(5) Termination.--This subsection shall not apply to
discharges of indebtedness after the date of the enactment of
the Bowles-Simpson Plan of Lowering America's Debt Act.''.
SEC. 258. REPEAL OF EXCLUSION FROM GROSS INCOME FOR RENTAL VALUE OF
PARSONAGES.
Effective for taxable years beginning after the date of the
enactment of this Act, section 107 is repealed.
SEC. 259. REPEAL OF EXCLUSION FROM GROSS INCOME FOR BENEFITS PROVIDED
TO VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL
RESPONDERS.
Effective for taxable years beginning after the date of the
enactment of this Act, section 139B is repealed.
SEC. 260. REPEAL OF SPECIAL TREATMENT OF BLUE CROSS AND BLUE SHIELD
ORGANIZATIONS, ETC.
Effective for taxable years beginning after the date of the
enactment of this Act, section 833 is repealed.
SEC. 261. SENSE OF THE HOUSE REGARDING A TERRITORIAL TAX SYSTEM.
It is the sense of the House that the Committee on Ways and Means
of the House of Representatives should report legislation that will
transition the United States to a territorial tax system.
Subtitle C--Phaseout of Tax Expenditures
SEC. 271. FIVE-YEAR PHASEOUT OF CERTAIN TAX EXPENDITURES.
(a) In General.--Effective for taxable years beginning after
December 31, 2012, the amount allowable as a credit, exclusion from
gross income, exemption from taxation, or deduction for the taxable
year under the tax provisions specified in subsection (c) (determined
without regard to this section) shall be reduced by the applicable
percentage of the amount so allowable.
(b) Applicable Percentage.--For purposes if this section, the
applicable percentage shall be determined in accordance with the
following table:
In the case of taxable years The applicable percentage shall be:
beginning in:
2013............................................... 20
2014............................................... 40
2015............................................... 60
2016............................................... 80
2017 and thereafter................................ 100.
(c) Specified Provisions.--For purposes of this section, the tax
provisions specified in this subsection are as follows:
(1) Section 911 of the Internal Revenue Code of 1986
(relating to citizens or residents of the United States living
abroad).
(2) Section 912 of such Code (relating to exemption for
certain allowances).
(3) Section 41 of such Code (relating to credit for
increasing research activities).
(4) Section 631(c) of such Code (relating to disposal of
coal or domestic iron ore with a retained economic interest).
(5) Section 451(i) of such Code (relating to special rule
for sales or dispositions to implement Federal Energy
Regulatory Commission or State Electric Restructuring Policy).
(6) Section 613 of such Code (relating to percentage
depletion) in the case of nonfuel minerals.
(7) Section 631(a) of such Code (relating to election to
consider cutting as sale or exchange).
(8) Section 512(b)(19) of such Code (relating to treatment
of gain or loss on sale or exchange of certain brownfield
sites).
(9) The exclusion from gross income of income on life
insurance contracts (as determined under section 7702(g) of the
Internal Revenue Code of 1986).
(10) Section 103(a) of such Code, to the extent the
interest is attributable to a qualified mortgage bond (as
defined in section 143(a) of such Code), a qualified veterans'
mortgage bond (as defined is section 143(b) of such Code), or
an issue described in section 142(a)(7) of such Code.
(11) Section 199 of such Code (relating to include
attributable to domestic production activities).
(12) Section 181 of such Code (relating to treatment of
certain qualified film and television productions).
(13) Section 7518 of such Code (relating to tax incentives
relating to merchant marine capital construction funds) and
chapter 535 of title 46, United States Code.
(14) Section 132(a)(5) of such Code (relating to qualified
transportation fringe) to the extent attributable to a transit
pass (as defined in section 132(f)(5) of such Code) or
qualified parking (as so defined).
(15) Section 45G(a) of such Code (relating to railroad
track maintenance credit).
(16) Section 46(a) of such Code (relating to rehabilitation
credit).
(17) Section 45D of such Code (relating to new markets tax
credit).
(18) Section 131 of such Code (relating to certain foster
care payments).
(19) Section 213 of such Code (relating to medical, dental,
etc., payments).
(20) Section 36B of such Code (relating to refundable
credit for coverage under a qualified health plan).
(21) Section 45R of such Code (relating to employee health
insurance expenses of small employers).
(22) Section 45C of such Code (relating to clinical testing
expenses for certain drugs for rare diseases or conditions).
(23) Section 35 of such Code (relating to health insurance
costs of eligible individuals).
(24) Means-tested payments otherwise excludable under the
general welfare doctrine.
(25) Section 79 of such Code (relating to group-term life
insurance purchased for employees).
(26) Section 106 of such Code (relating to contributions by
employer to accident and health plans) to the extent
attributable to employer provided coverage under an accident or
disability insurance plan.
(27) Section 165 of such Code (relating to losses) to the
extent the loss is described in section 165(c)(3) of such Code.
(28) Section 164(a)(1) of such Code (relating to real
property taxes) to the extent not attributable to real property
used in a trade or business or the principal residence of the
taxpayer (within the meaning of section 121 of such Code).
Subtitle D--Special Status
SEC. 381. TERMINATION OF QUALIFIED ENERGY CONSERVATION BONDS.
Subsection (a) of section 54D is amended by striking ``and'' at the
end of paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the following new
paragraph:
``(4) the bond is issued before the date of the enactment
of the Implementation of Simpson-Bowles Spending Reductions Act
of 2012.''.
SEC. 382. TERMINATION OF NEW CLEAN RENEWABLE ENERGY BONDS.
Subsection (a) of section 54C is amended by striking ``and'' at the
end of paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the following new
paragraph:
``(4) the bond is issued before the date of the enactment
of the Implementation of Simpson-Bowles Spending Reductions Act
of 2012.''.
SEC. 383. TERMINATION OF EXEMPT FACILITY BOND TREATMENT FOR WATER,
SEWAGE, AND SOLID WASTE FACILITIES.
(a) In General.--Subsection (a) of section 142 is amended by
striking paragraphs (4), (5), and (6).
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 384. TERMINATION OF EXPENSING AND AMORTIZATION OF REFORESTATION
EXPENDITURES AND EXPENSING OF TIMBER-GROWING COSTS.
(a) Reforestation Expenditures.--Section 194 is amended by adding
at the end the following new subsection:
``(e) Termination.--This section shall not apply to amount paid or
incurred after the date of the enactment of the Implementation of
Simpson-Bowles Spending Reductions Act of 2012.''.
(b) Expensing of Timber Growing Costs.--Subsection (c) of section
263A is amended by striking paragraph (5).
(c) Effective Date.--The amendment made by this section shall apply
to expenses paid or incurred after the date of the enactment of this
Act.
SEC. 385. TERMINATION OF DEFERRAL OF GAIN ON SALES OF STOCK IN
AGRICULTURAL REFINERS AND PROCESSORS TO ELIGIBLE FARM
COOPERATIVES.
Subsection (g) of section 1042 is amended by adding at the end the
following new paragraph:
``(5) Termination.--This subsection shall not apply to any
sales after the date of the enactment of the Implementation of
Simpson-Bowles Spending Reductions Act of 2012.''.
SEC. 386. TERMINATION OF ELECTION TO EXPENSE CERTAIN DEPRECIABLE
BUSINESS ASSETS.
(a) In General.--Subparagraph (D) of section 179(b)(1) is amended
by striking ``$25,000'' and inserting ``$0''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2012.
SEC. 387. TERMINATION OF QUALIFIED SMALL ISSUE BONDS.
Paragraph (1) of section 144(a) is amended by inserting ``before
the date of the enactment of the Implementation of Simpson-Bowles
Spending Reductions Act of 2012'' after ``any bond issued''.
SEC. 388. TERMINATION OF EXEMPT FACILITY BOND TREATMENT FOR QUALIFIED
HIGHWAY OR SURFACE FREIGHT TRANSFER FACILITIES.
(a) In General.--Subsection (a) of section 142 is amended by
striking paragraph (15).
(b) Effective Date.--The amendment made by this section shall apply
to bonds issued after the date of the enactment of this Act.
SEC. 389. TERMINATION OF EXEMPT FACILITY BOND TREATMENT FOR AIRPORTS,
DOCKS, AND WHARVES.
(a) In General.--Subsection (a) of section 142 is amended by
striking paragraphs (1) and (2).
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 390. TERMINATION OF TRIBAL ECONOMIC DEVELOPMENT BONDS.
Subparagraph (A) of section 7871(f)(3) is amended by inserting
``before the date of the enactment of the Implementation of Simpson-
Bowles Spending Reductions Act of 2012'' after ``any bond issued''.
SEC. 391. TERMINATION OF EXCLUSION FROM GROSS INCOME OF UNITED STATES
SAVINGS BONDS INTEREST USED TO PAY HIGHER EDUCATION
EXPENSES.
Subparagraph (A) of section 135(c)(1) is amended by inserting ``and
before the date of the enactment of the Implementation of Simpson-
Bowles Spending Reductions Act of 2012'' after ``December 31, 1989,''.
SEC. 392. TERMINATION OF QUALIFIED ZONE ACADEMY BONDS.
Subsection (a) of section 54E is amended by striking ``and'' at the
end of paragraph (2), by striking the period at the end of paragraph
(3), and inserting ``, and'', and by adding at the end the following
new paragraph:
``(4) the bond is issued before the date of the enactment
of the Implementation of Simpson-Bowles Spending Reductions Act
of 2012.''.
SEC. 393. TERMINATION OF EXEMPT FACILITY BOND TREATMENT FOR QUALIFIED
PUBLIC EDUCATIONAL FACILITIES.
(a) In General.--Subsection (a) of section 142 is amended by
striking paragraph (13).
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 394. TERMINATION OF HOSPITAL BONDS.
(a) In General.--Paragraph (1) of section 145(a) is amended by
striking ``or a governmental unit'' and inserting ``, or a governmental
unit, other than a hospital''.
(b) Conforming Amendments.--
(1) Section 145 is amended by striking subsection (c) and
by redesignating subsections (d) and (e) as subsections (c) and
(d), respectively.
(2) Subsection (b) of section 145 is amended by striking
``nonhospital'' each place it appears.
(3) Paragraph (1) of section 145(b) is amended by striking
``(other than a qualified hospital bond)''.
(4) Paragraph (2) of section 145(b) is amended--
(A) by striking ``other than a qualified hospital
bond'' in subparagraph (B), and
(B) by striking subparagraph (C).
(5) The heading for subsection (b) of section 145 is
amended by striking ``on Bonds Other Than Hospital Bonds''.
(6) The heading for paragraph (2) of section 145(b) is
amended by striking ``nonhospital''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
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Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, House Administration, Rules, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, House Administration, Rules, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, House Administration, Rules, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, House Administration, Rules, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, House Administration, Rules, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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