IB Union Calendar No. 300 116TH CONGRESS 2D SESSION H. R. 3301 [Report No. 116–379] To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster relief, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 18, 2019 Mr. THOMPSON of California introduced the following bill; which was referred to the Committee on Ways and Means JANUARY 21, 2020 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on June 18, 2019] VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 3301 RH A BILL To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster relief, and for other purposes. VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 3301 RH 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 ‘‘Taxpayer Certainty and Disaster Tax Relief Act of 2019’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; etc. TITLE I—EXTENSION OF CERTAIN EXPIRING PROVISIONS Subtitle A—Tax Relief and Support for Families and Individuals Sec. 101. Exclusion from gross income of discharge of qualified principal resi- dence indebtedness. Sec. 102. Treatment of mortgage insurance premiums as qualified residence inter- est. Sec. 103. Reduction in medical expense deduction floor. Sec. 104. Deduction of qualified tuition and related expenses. Sec. 105. Black lung disability trust fund excise tax. Subtitle B—Incentives for Employment, Economic Growth, and Community Development Sec. 111. Indian employment credit. Sec. 112. Railroad track maintenance credit. Sec. 113. Mine rescue team training credit. Sec. 114. 7-year recovery period for motorsports entertainment complexes. Sec. 115. Accelerated depreciation for business property on Indian reservations. Sec. 116. Expensing rules for certain productions. Sec. 117. Empowerment zone tax incentives. Sec. 118. American Samoa economic development credit. Subtitle C—Incentives for Energy Production, Efficiency, and Green Economy Jobs Sec. 121. Biodiesel and renewable diesel. Sec. 122. Second generation biofuel producer credit. Sec. 123. Nonbusiness energy property. Sec. 124. Qualified fuel cell motor vehicles. Sec. 125. Alternative fuel refueling property credit. Sec. 126. 2-wheeled plug-in electric vehicle credit. Sec. 127. Credit for electricity produced from certain renewable resources. Sec. 128. Production credit for Indian coal facilities. Sec. 129. Energy efficient homes credit. Sec. 130. Special allowance for second generation biofuel plant property. Sec. 131. Energy efficient commercial buildings deduction. VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6213 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 3301 RH Sec. 132. Special rule for sales or dispositions to implement FERC or State elec- tric restructuring policy for qualified electric utilities. Sec. 133. Extension and clarification of excise tax credits relating to alternative fuels. Sec. 134. Oil spill liability trust fund rate. Subtitle D—Certain Provisions Expiring at the End of 2019 Sec. 141. New markets tax credit. Sec. 142. Employer credit for paid family and medical leave. Sec. 143. Work opportunity credit. Sec. 144. Certain provisions related to beer, wine, and distilled spirits. Sec. 145. Look-thru rule for related controlled foreign corporations. Sec. 146. Credit for health insurance costs of eligible individuals. TITLE II—ESTATE AND GIFT TAX Sec. 201. Reduction of unified credit against estate tax. TITLE III—DISASTER TAX RELIEF Sec. 301. Definitions. Sec. 302. Special disaster-related rules for use of retirement funds. Sec. 303. Employee retention credit for employers affected by qualified disasters. Sec. 304. Other disaster-related tax relief provisions. Sec. 305. Automatic extension of filing deadlines in case of certain taxpayers af- fected by Federally declared disasters. Sec. 306. Modification of the tax rate for the excise tax on investment income of private foundations. Sec. 307. Additional low-income housing credit allocations for qualified 2017 and 2018 California disaster areas. Sec. 308. Treatment of certain possessions. (c) AMENDMENT OF 1986 CODE.—Except as otherwise 1 expressly provided, whenever in this Act an amendment or 2 repeal is expressed in terms of an amendment to, or repeal 3 of, a section or other provision, the reference shall be consid- 4 ered to be made to a section or other provision of the Inter- 5 nal Revenue Code of 1986. 6 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 3301 RH TITLE I—EXTENSION OF 1 CERTAIN EXPIRING PROVISIONS 2 Subtitle A—Tax Relief and Support 3 for Families and Individuals 4 SEC. 101. EXCLUSION FROM GROSS INCOME OF DISCHARGE 5 OF QUALIFIED PRINCIPAL RESIDENCE IN- 6 DEBTEDNESS. 7 (a) IN GENERAL.—Section 108(a)(1)(E) is amended 8 by striking ‘‘January 1, 2018’’ each place it appears and 9 inserting ‘‘January 1, 2021’’. 10 (b) CONFORMING AMENDMENT.—Section 108(h)(2) is 11 amended by inserting ‘‘and determined without regard to 12 the substitution described in section 163(h)(3)(F)(i)(II)’’ 13 after ‘‘clause (ii) thereof’’. 14 (c) EFFECTIVE DATE.—The amendments made by this 15 section shall apply to discharges of indebtedness after De- 16 cember 31, 2017. 17 SEC. 102. TREATMENT OF MORTGAGE INSURANCE PRE- 18 MIUMS AS QUALIFIED RESIDENCE INTEREST. 19 (a) IN GENERAL.—Section 163(h)(3)(E)(iv)(I) is 20 amended by striking ‘‘December 31, 2017’’ and inserting 21 ‘‘December 31, 2020’’. 22 (b) EFFECTIVE DATE.—The amendment made by this 23 section shall apply to amounts paid or incurred after De- 24 cember 31, 2017. 25 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 3301 RH SEC. 103. REDUCTION IN MEDICAL EXPENSE DEDUCTION 1 FLOOR. 2 (a) IN GENERAL.—Section 213(f) is amended to read 3 as follows: 4 ‘‘(f) TEMPORARY SPECIAL RULE.—In the case of tax- 5 able years beginning before January 1, 2021, subsection (a) 6 shall be applied with respect to a taxpayer by substituting 7 ‘7.5 percent’ for ‘10 percent’.’’. 8 (b) ALTERNATIVE MINIMUM TAX.—Section 56(b)(1) is 9 amended by striking subparagraph (B) and by redesig- 10 nating subparagraphs (C), (D), (E), and (F), as subpara- 11 graphs (B), (C), (D), and (E), respectively. 12 (c) EFFECTIVE DATE.—The amendments made by this 13 section shall apply to taxable years ending after December 14 31, 2018. 15 SEC. 104. DEDUCTION OF QUALIFIED TUITION AND RE- 16 LATED EXPENSES. 17 (a) IN GENERAL.—Section 222(e) is amended by strik- 18 ing ‘‘December 31, 2017’’ and inserting ‘‘December 31, 19 2020’’. 20 (b) EFFECTIVE DATE.—The amendment made by this 21 section shall apply to taxable years beginning after Decem- 22 ber 31, 2017. 23 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 3301 RH SEC. 105. BLACK LUNG DISABILITY TRUST FUND EXCISE 1 TAX. 2 (a) IN GENERAL.—Section 4121(e)(2)(A) is amended 3 by striking ‘‘December 31, 2018’’ and inserting ‘‘December 4 31, 2020’’. 5 (b) EFFECTIVE DATE.—The amendment made by this 6 section shall apply on and after the first day of the first 7 calendar month beginning after the date of the enactment 8 of this Act. 9 Subtitle B—Incentives for Employ- 10 ment, Economic Growth, and 11 Community Development 12 SEC. 111. INDIAN EMPLOYMENT CREDIT. 13 (a) IN GENERAL.—Section 45A(f) is amended by strik- 14 ing ‘‘December 31, 2017’’ and inserting ‘‘December 31, 15 2020’’. 16 (b) EFFECTIVE DATE.—The amendment made by this 17 section shall apply to taxable years beginning after Decem- 18 ber 31, 2017. 19 SEC. 112. RAILROAD TRACK MAINTENANCE CREDIT. 20 (a) IN GENERAL.—Section 45G(f) is amended by strik- 21 ing ‘‘January 1, 2018’’ and inserting ‘‘January 1, 2021’’. 22 (b) SAFE HARBOR ASSIGNMENTS.—Any assignment, 23 including related expenditures paid or incurred, under sec- 24 tion 45G(b)(2) of the Internal Revenue Code of 1986 for 25 a taxable year beginning on or after January 1, 2018, and 26 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 3301 RH before January 1, 2019, shall be treated as effective as of 1 the close of such taxable year if made pursuant to a written 2 agreement entered into no later than 90 days following the 3 date of the enactment of this Act. 4 (c) EFFECTIVE DATE.—The amendment made by this 5 section shall apply to expenditures paid or incurred during 6 taxable years beginning after December 31, 2017. 7 SEC. 113. MINE RESCUE TEAM TRAINING CREDIT. 8 (a) IN GENERAL.—Section 45N(e) is amended by 9 striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 10 2020’’. 11 (b) EFFECTIVE DATE.—The amendment made by this 12 section shall apply to taxable years beginning after Decem- 13 ber 31, 2017. 14 SEC. 114. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 15 ENTERTAINMENT COMPLEXES. 16 (a) IN GENERAL.—Section 168(i)(15)(D) is amended 17 by striking ‘‘December 31, 2017’’ and inserting ‘‘December 18 31, 2020’’. 19 (b) EFFECTIVE DATE.—The amendment made by this 20 section shall apply to property placed in service after De- 21 cember 31, 2017. 22 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 3301 RH SEC. 115. ACCELERATED DEPRECIATION FOR BUSINESS 1 PROPERTY ON INDIAN RESERVATIONS. 2 (a) IN GENERAL.—Section 168(j)(9) is amended by 3 striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 4 2020’’. 5 (b) EFFECTIVE DATE.—The amendment made by this 6 section shall apply to property placed in service after De- 7 cember 31, 2017. 8 SEC. 116. EXPENSING RULES FOR CERTAIN PRODUCTIONS. 9 (a) IN GENERAL.—Section 181(g) is amended by strik- 10 ing ‘‘December 31, 2017’’ and inserting ‘‘December 31, 11 2020’’. 12 (b) EFFECTIVE DATE.—The amendment made by this 13 section shall apply to productions commencing after Decem- 14 ber 31, 2017. 15 SEC. 117. EMPOWERMENT ZONE TAX INCENTIVES. 16 (a) IN GENERAL.—Section 1391(d)(1)(A)(i) is amend- 17 ed by striking ‘‘December 31, 2017’’ and inserting ‘‘Decem- 18 ber 31, 2020’’. 19 (b) TREATMENT OF CERTAIN TERMINATION DATES 20 SPECIFIED IN NOMINATIONS.—In the case of a designation 21 of an empowerment zone the nomination for which included 22 a termination date which is contemporaneous with the date 23 specified in subparagraph (A)(i) of section 1391(d)(1) of 24 the Internal Revenue Code of 1986 (as in effect before the 25 enactment of this Act), subparagraph (B) of such section 26 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 3301 RH shall not apply with respect to such designation if, after 1 the date of the enactment of this section, the entity which 2 made such nomination amends the nomination to provide 3 for a new termination date in such manner as the Secretary 4 of the Treasury (or the Secretary’s designee) may provide. 5 (c) EFFECTIVE DATE.—The amendment made by sub- 6 section (a) shall apply to taxable years beginning after De- 7 cember 31, 2017. 8 SEC. 118. AMERICAN SAMOA ECONOMIC DEVELOPMENT 9 CREDIT. 10 (a) IN GENERAL.—Section 119(d) of division A of the 11 Tax Relief and Health Care Act of 2006 is amended— 12 (1) by striking ‘‘January 1, 2018’’ each place it 13 appears and inserting ‘‘January 1, 2021’’, 14 (2) by striking ‘‘first 12 taxable years’’ in para- 15 graph (1) and inserting ‘‘first 15 taxable years’’, 16 (3) by striking ‘‘first 6 taxable years’’ in para- 17 graph (2) and inserting ‘‘first 9 taxable years’’, and 18 (4) by adding at the end the following flush sen- 19 tence: 20 ‘‘In the case of a corporation described in subsection (a)(2), 21 the Internal Revenue Code of 1986 shall be applied and ad- 22 ministered without regard to the amendments made by sec- 23 tion 401(d)(1) of the Tax Technical Corrections Act of 24 2018.’’. 25 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 3301 RH (b) CONFORMING AMENDMENT.—Section 119(e) of di- 1 vision A of the Tax Relief and Health Care Act of 2006 2 is amended by inserting ‘‘(as in effect before its repeal)’’ 3 after ‘‘section 199 of the Internal Revenue Code of 1986’’. 4 (c) EFFECTIVE DATE.—The amendments made by this 5 section shall apply to taxable years beginning after Decem- 6 ber 31, 2017. 7 Subtitle C—Incentives for Energy 8 Production, Efficiency, and 9 Green Economy Jobs 10 SEC. 121. BIODIESEL AND RENEWABLE DIESEL. 11 (a) INCOME TAX CREDIT.— 12 (1) IN GENERAL.—Section 40A(g) is amended by 13 striking ‘‘December 31, 2017’’ and inserting ‘‘Decem- 14 ber 31, 2020’’. 15 (2) EFFECTIVE DATE.—The amendment made by 16 this subsection shall apply to fuel sold or used after 17 December 31, 2017. 18 (b) EXCISE TAX INCENTIVES.— 19 (1) TERMINATION.— 20 (A) IN GENERAL.—Section 6426(c)(6) is 21 amended by striking ‘‘December 31, 2017’’ and 22 inserting ‘‘December 31, 2020’’. 23 VerDate Sep 11 2014 20:50 Jan 21, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H3301.RH H3301 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 3301 RH (B) PAYMENTS.—Section 6427(e)(6)(B) is 1 amended by striking ‘‘December 31, 2017’’ and 2 inserting ‘‘December 31, 2020’’. 3 (2) EFFECTIVE DATE.—The amendments made 4 by this subsection shall apply to fuel sold or used 5 after December 31, 2017. 6 (3) SPECIAL RULE.—Notwithstanding any other 7 provision of law, in the case of any biodiesel mixture 8 credit properly determined under section 6426(c) of 9 the Internal Revenue Code of 1986 for the period be- 10 ginning on January 1, 2018, and ending with the 11 close of the last calendar quarter beginning before the 12 date of the enactment of this Act, such credit shall be 13 allowed, and any refund or payment attributable to 14 [Text truncated for display. 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