II Calendar No. 28 116TH CONGRESS 1ST SESSION S. 617 To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster tax relief, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 28, 2019 Mr. GRASSLEY (for himself and Mr. WYDEN) introduced the following bill; which was read the first time MARCH 4, 2019 Read the second time and placed on the calendar A BILL To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster tax relief, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE, ETC. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Tax Extender and Disaster Relief Act of 2019’’. 5 (b) AMENDMENT OF 1986 CODE.—Except as other- 6 wise expressly provided, whenever in this Act an amend- 7 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 617 PCS ment or repeal is expressed in terms of an amendment 1 to, or repeal of, a section or other provision, the reference 2 shall be considered to be made to a section or other provi- 3 sion of the Internal Revenue Code of 1986. 4 (c) TABLE OF CONTENTS.—The table of contents of 5 this Act is as follows: 6 Sec. 1. Short title, etc. TITLE I—EXTENSION OF EXPIRING PROVISIONS Subtitle A—Provisions Expiring in 2018 Sec. 101. Nonbusiness energy property. Sec. 102. Qualified fuel cell motor vehicles. Sec. 103. Alternative fuel refueling property credit. Sec. 104. 2-wheeled plug-in electric vehicle credit. Sec. 105. Second generation biofuel producer credit. Sec. 106. Biodiesel and renewable diesel incentives. Sec. 107. Credit for electricity produced from certain renewable resources. Sec. 108. Production credit for Indian coal facilities. Sec. 109. Railroad track maintenance credit. Sec. 110. Energy efficient homes credit. Sec. 111. Classification of certain race horses as 3-year property. Sec. 112. Special allowance for second generation biofuel plant property. Sec. 113. Energy efficient commercial buildings deduction. Sec. 114. Election to expense advanced mine safety equipment. Sec. 115. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utili- ties. Sec. 116. Extension and clarification of excise tax credits relating to alternative fuels. Sec. 117. 7-year recovery period for motorsports entertainment complexes. Sec. 118. Accelerated depreciation for business property on Indian reservation. Sec. 119. Expensing rules for certain productions. Sec. 120. Indian employment credit. Sec. 121. Mine rescue team training credit. Sec. 122. Exclusion from gross income of discharge of qualified principal resi- dence indebtedness. Sec. 123. Treatment of mortgage insurance premiums as qualified residence in- terest. Sec. 124. Deduction of qualified tuition and related expenses. Sec. 125. Extension of empowerment zone tax incentives. Sec. 126. American Samoa economic development credit. Subtitle B—Provisions Expiring in 2019 Sec. 151. Temporary reduction in medical expense deduction floor. Sec. 152. Extension of oil spill liability trust fund rate. Sec. 153. Black lung liability trust fund excise tax. VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 617 PCS TITLE II—DISASTER TAX RELIEF Sec. 201. Definitions. Sec. 202. Special disaster-related rules for use of retirement funds. Sec. 203. Employee retention credit for employers affected by qualified disas- ters. Sec. 204. Other disaster-related tax relief provisions. Sec. 205. Treatment of certain possessions. TITLE I—EXTENSION OF 1 EXPIRING PROVISIONS 2 Subtitle A—Provisions Expiring in 3 2018 4 SEC. 101. NONBUSINESS ENERGY PROPERTY. 5 (a) IN GENERAL.—Section 25C(g)(2) is amended by 6 striking ‘‘December 31, 2017’’ and inserting ‘‘December 7 31, 2019’’. 8 (b) EFFECTIVE DATE.—The amendment made by 9 this section shall apply to property placed in service after 10 December 31, 2017. 11 SEC. 102. QUALIFIED FUEL CELL MOTOR VEHICLES. 12 (a) IN GENERAL.—Section 30B(k)(1) is amended by 13 striking ‘‘December 31, 2017’’ and inserting ‘‘December 14 31, 2019’’. 15 (b) EFFECTIVE DATE.—The amendment made by 16 this section shall apply to property purchased after De- 17 cember 31, 2017. 18 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 617 PCS SEC. 103. ALTERNATIVE FUEL REFUELING PROPERTY 1 CREDIT. 2 (a) IN GENERAL.—Section 30C(g) is amended by 3 striking ‘‘December 31, 2017’’ and inserting ‘‘December 4 31, 2019’’. 5 (b) EFFECTIVE DATE.—The amendment made by 6 this section shall apply to property placed in service after 7 December 31, 2017. 8 SEC. 104. 2-WHEELED PLUG-IN ELECTRIC VEHICLE CREDIT. 9 (a) IN GENERAL.—Section 30D(g)(3)(E)(ii) is 10 amended by striking ‘‘January 1, 2018’’ and inserting 11 ‘‘January 1, 2020’’. 12 (b) EFFECTIVE DATE.—The amendment made by 13 this section shall apply to vehicles acquired after Decem- 14 ber 31, 2017. 15 SEC. 105. SECOND GENERATION BIOFUEL PRODUCER 16 CREDIT. 17 (a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 18 by striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 19 2020’’. 20 (b) EFFECTIVE DATE.—The amendment made by 21 this section shall apply to qualified second generation 22 biofuel production after December 31, 2017. 23 SEC. 106. BIODIESEL AND RENEWABLE DIESEL INCEN- 24 TIVES. 25 (a) INCOME TAX CREDIT.— 26 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 617 PCS (1) IN GENERAL.—Subsection (g) of section 1 40A is amended by striking ‘‘December 31, 2017’’ 2 and inserting ‘‘December 31, 2019’’. 3 (2) EFFECTIVE DATE.—The amendment made 4 by this subsection shall apply to fuel sold or used 5 after December 31, 2017. 6 (b) EXCISE TAX INCENTIVES.— 7 (1) IN GENERAL.—Section 6426(c)(6) is 8 amended by striking ‘‘December 31, 2017’’ and in- 9 serting ‘‘December 31, 2019’’. 10 (2) PAYMENTS.—Section 6427(e)(6)(B) is 11 amended by striking ‘‘December 31, 2017’’ and in- 12 serting ‘‘December 31, 2019’’. 13 (3) EFFECTIVE DATE.—The amendments made 14 by this subsection shall apply to fuel sold or used 15 after December 31, 2017. 16 (4) SPECIAL RULE FOR 2018.—Notwithstanding 17 any other provision of law, in the case of any bio- 18 diesel mixture credit properly determined under sec- 19 tion 6426(c) of the Internal Revenue Code of 1986 20 for the period beginning on January 1, 2018, and 21 ending on December 31, 2018, such credit shall be 22 allowed, and any refund or payment attributable to 23 such credit (including any payment under section 24 6427(e) of such Code) shall be made, only in such 25 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 617 PCS manner as the Secretary of the Treasury (or the 1 Secretary’s delegate) shall provide. Such Secretary 2 shall issue guidance within 30 days after the date of 3 the enactment of this Act providing for a one-time 4 submission of claims covering periods described in 5 the preceding sentence. Such guidance shall provide 6 for a 180-day period for the submission of such 7 claims (in such manner as prescribed by such Sec- 8 retary) to begin not later than 30 days after such 9 guidance is issued. Such claims shall be paid by such 10 Secretary not later than 60 days after receipt. If 11 such Secretary has not paid pursuant to a claim 12 filed under this subsection within 60 days after the 13 date of the filing of such claim, the claim shall be 14 paid with interest from such date determined by 15 using the overpayment rate and method under sec- 16 tion 6621 of such Code. 17 SEC. 107. CREDIT FOR ELECTRICITY PRODUCED FROM 18 CERTAIN RENEWABLE RESOURCES. 19 (a) IN GENERAL.—The following provisions of sec- 20 tion 45(d) are each amended by striking ‘‘January 1, 21 2018’’ each place it appears and inserting ‘‘January 1, 22 2020’’: 23 (1) Paragraph (2)(A). 24 (2) Paragraph (3)(A). 25 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 617 PCS (3) Paragraph (4)(B). 1 (4) Paragraph (6). 2 (5) Paragraph (7). 3 (6) Paragraph (9). 4 (7) Paragraph (11)(B). 5 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED 6 FACILITIES AS ENERGY PROPERTY.—Section 7 48(a)(5)(C)(ii) is amended by striking ‘‘before January 1, 8 2018 (January 1, 2020, in the case of any facility which 9 is described in paragraph (1) of section 45(d)), and’’ and 10 inserting ‘‘before— 11 ‘‘(I) January 1, 2020, in the case 12 of any facility which is described in 13 paragraph (1) of section 45(d), and 14 ‘‘(II) January 1, 2020, in the 15 case of any other facility, and’’. 16 (c) EFFECTIVE DATE.—The amendments made by 17 this section shall take effect on January 1, 2018. 18 SEC. 108. PRODUCTION CREDIT FOR INDIAN COAL FACILI- 19 TIES. 20 (a) IN GENERAL.—Section 45(e)(10)(A) is amended 21 by striking ‘‘12-year period’’ each place it appears and in- 22 serting ‘‘14-year period’’. 23 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 617 PCS (b) EFFECTIVE DATE.—The amendment made by 1 this section shall apply to coal produced after December 2 31, 2017. 3 SEC. 109. RAILROAD TRACK MAINTENANCE CREDIT. 4 (a) IN GENERAL.—Section 45G((f) is amended by 5 striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 6 2020’’. 7 (b) EFFECTIVE DATE.— 8 (1) IN GENERAL.—The amendment made by 9 this section shall apply to expenditures paid or in- 10 curred during taxable years beginning after Decem- 11 ber 31, 2017. 12 (2) SAFE HARBOR ASSIGNMENTS.—Assign- 13 ments, including related expenditures paid or in- 14 curred, under paragraph (2) of section 45G(b) of the 15 Internal Revenue Code of 1986 for any taxable year 16 beginning on or after January 1, 2018, and before 17 January 1, 2019, shall be treated as effective as of 18 the close of such taxable year if made pursuant to 19 a written agreement entered into no later than 90 20 days following the date of the enactment of this Act. 21 SEC. 110. ENERGY EFFICIENT HOMES CREDIT. 22 (a) IN GENERAL.—Section 45L(g) is amended by 23 striking ‘‘December 31, 2017’’ and inserting ‘‘December 24 31, 2019’’. 25 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 9 •S 617 PCS (b) EFFECTIVE DATE.—The amendment made by 1 this section shall apply to homes acquired after December 2 31, 2017. 3 SEC. 111. CLASSIFICATION OF CERTAIN RACE HORSES AS 3- 4 YEAR PROPERTY. 5 (a) IN GENERAL.—Section 168(e)(3)(A)(i) is amend- 6 ed— 7 (1) by striking ‘‘January 1, 2018’’ in subclause 8 (I) and inserting ‘‘January 1, 2020’’, and 9 (2) by striking ‘‘December 31, 2017’’ in sub- 10 clause (II) and inserting ‘‘December 31, 2019’’. 11 (b) EFFECTIVE DATE.—The amendments made by 12 this section shall apply to property placed in service after 13 December 31, 2017. 14 SEC. 112. SPECIAL ALLOWANCE FOR SECOND GENERATION 15 BIOFUEL PLANT PROPERTY. 16 (a) IN GENERAL.—Section 168(l)(2)(D) is amended 17 by striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 18 2020’’. 19 (b) EFFECTIVE DATE.—The amendment made by 20 this section shall apply to property placed in service after 21 December 31, 2017. 22 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 10 •S 617 PCS SEC. 113. ENERGY EFFICIENT COMMERCIAL BUILDINGS DE- 1 DUCTION. 2 (a) IN GENERAL.—Section 179D(h) is amended by 3 striking ‘‘December 31, 2017’’ and inserting ‘‘December 4 31, 2019’’. 5 (b) EFFECTIVE DATE.—The amendment made by 6 this section shall apply to property placed in service after 7 December 31, 2017. 8 SEC. 114. ELECTION TO EXPENSE ADVANCED MINE SAFETY 9 EQUIPMENT. 10 (a) IN GENERAL.—Section 179E(g) is amended by 11 striking ‘‘December 31, 2017’’ and inserting ‘‘December 12 31, 2019’’. 13 (b) EFFECTIVE DATE.—The amendment made by 14 this section shall apply to property placed in service after 15 December 31, 2017. 16 SEC. 115. EXTENSION OF SPECIAL RULE FOR SALES OR DIS- 17 POSITIONS TO IMPLEMENT FERC OR STATE 18 ELECTRIC RESTRUCTURING POLICY FOR 19 QUALIFIED ELECTRIC UTILITIES. 20 (a) IN GENERAL.—Section 451(k)(3) is amended by 21 striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 22 2020’’. 23 (b) EFFECTIVE DATE.—The amendment made by 24 this section shall apply to dispositions after December 31, 25 2017. 26 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 11 •S 617 PCS SEC. 116. EXTENSION AND CLARIFICATION OF EXCISE TAX 1 CREDITS RELATING TO ALTERNATIVE FUELS. 2 (a) EXTENSION.— 3 (1) IN GENERAL.—Sections 6426(d)(5) and 4 6426(e)(3) are each amended by striking ‘‘December 5 31, 2017’’ and inserting ‘‘December 31, 2019’’. 6 (2) OUTLAY PAYMENTS FOR ALTERNATIVE 7 FUELS.—Section 6427(e)(6)(C) is amended by strik- 8 ing ‘‘December 31, 2017’’ and inserting ‘‘December 9 31, 2019’’. 10 (3) EFFECTIVE DATE.—The amendments made 11 by this section shall apply to fuel sold or used after 12 December 31, 2017. 13 (b) SPECIAL RULE FOR 2018.—Notwithstanding any 14 other provision of law, in the case of any alternative fuel 15 credit properly determined under section 6426(d) of the 16 Internal Revenue Code of 1986 for the period beginning 17 on January 1, 2018, and ending on December 31, 2018, 18 such credit shall be allowed, and any refund or payment 19 attributable to such credit (including any payment under 20 section 6427(e) of such Code) shall be made, only in such 21 manner as the Secretary of the Treasury (or the Sec- 22 retary’s delegate) shall provide. Such Secretary shall issue 23 guidance within 30 days after the date of the enactment 24 of this Act providing for a one-time submission of claims 25 covering periods described in the preceding sentence. Such 26 VerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617 pamtmann on DSKBFK8HB2PROD with BILLS 12 •S 617 PCS guidance shall provide for a 180-day period for the sub- 1 mission of such claims (in such mann [Text truncated for display. Full text available on Congress.gov.]