H. Rept. 114-20 - PERMANENT IRA CHARITABLE CONTRIBUTION ACT OF 2015114th Congress (2015-2016)
Committee Report
| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.637 |
| Committees: |
H. Rept. 114-20 - 114th Congress (2015-2016)
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House Report 114-20 - PERMANENT IRA CHARITABLE CONTRIBUTION ACT OF 2015
[House Report 114-20]
[From the U.S. Government Publishing Office]
114th Congress } { Rept. 114-20
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
======================================================================
PERMANENT IRA CHARITABLE CONTRIBUTION ACT
OF 2015
_______
February 9, 2015.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Ryan of Wisconsin, from the Committee on Ways and Means, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 637]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 637) to amend the Internal Revenue Code of 1986 to
make permanent the rule allowing certain tax-free distributions
from individual retirement accounts for charitable purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 3
II. EXPLANATION OF THE BILL..........................................3
A. Tax-Free Distributions from Individual Retirement
Plans for Charitable Purposes (sec. 408(d)(8) of
the Code).......................................... 3
III. VOTES OF THE COMMITTEE...........................................7
IV. BUDGET EFFECTS OF THE BILL.......................................8
A. Committee Estimate of Budgetary Effects............. 8
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 8
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 8
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......11
A. Committee Oversight Findings and Recommendations.... 11
B. Statement of General Performance Goals and
Objectives......................................... 11
C. Information Relating to Unfunded Mandates........... 11
D. Applicability of House Rule XXI 5(b)................ 11
E. Tax Complexity Analysis............................. 11
F. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 12
G. Duplication of Federal Programs..................... 12
H. Disclosure of Directed Rule Makings................. 12
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........12
VII. DISSENTING VIEWS...............................................35
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Permanent IRA Charitable Contribution
Act of 2015''.
SEC. 2. RULE ALLOWING CERTAIN TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL
RETIREMENT ACCOUNTS FOR CHARITABLE PURPOSES MADE
PERMANENT.
(a) In General.--Section 408(d)(8) of the Internal Revenue Code of
1986 is amended by striking subparagraph (F).
(b) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years beginning after December 31,
2014.
SEC. 3. BUDGETARY EFFECTS.
The budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 637, reported by the Committee on Ways and Means,
provides that individuals who are at least 70\1/2\ years old
may make tax-free distributions of up to $100,000 per year from
an individual retirement account (IRA) to a qualifying
charitable organization. An identical, temporary provision
expired for taxable years beginning after December 31, 2014.
B. Background and Need for Legislation
While the Committee continues actively to pursue
comprehensive tax reform as a critical means of promoting
economic growth and job creation, the Committee also believes
that it is important to provide individuals and small
businesses permanent, immediate tax relief to encourage faster
economic growth and job creation, while fostering charitable
giving. By restoring and making permanent the IRA charitable
distribution option, H.R. 637 makes permanent an important
incentive to encourage taxpayers to contribute to charitable
and religious organizations that support important programs
across the nation. According to testimony received by the
Committee, in the first two years it was available, the IRA
charitable distribution option prompted more than $140 million
in charitable donations, with the median gift just under
$4,500, to a broad range of tax-exempt organizations from
social service providers and religious organizations to
cultural institutions and schools, organizations that benefit
communities nationwide.
C. Legislative History
Background
H.R. 637 was introduced on February 2, 2015, and was
referred to the Committee on Ways and Means.
Committee action
The Committee on Ways and Means marked up H.R. 637, the
Permanent IRA Charitable Contribution Act of 2015, on February
4, 2015, and ordered the bill, as amended, favorably reported
(with a quorum being present).
Committee hearings
The need for permanent rules regarding IRA rollovers for
charitable purposes was discussed at no fewer than two hearings
during the 112th and 113th Congresses:
Select Revenue Measures Subcommittee
Hearing on Certain Expiring Tax Provisions (April 26,
2012); and
Full Committee Hearing on Tax Reform and
Charitable Contributions (February 14, 2013).
II. EXPLANATION OF THE BILL
A. Tax-Free Distributions from Individual Retirement Plans for
Charitable Purposes (sec. 408(d)(8) of the Code)
PRESENT LAW
In general
If an amount withdrawn from a traditional individual
retirement arrangement (``IRA'') or a Roth IRA is donated to a
charitable organization, the rules relating to the tax
treatment of withdrawals from IRAs apply to the amount
withdrawn and the charitable contribution is subject to the
normally applicable limitations on deductibility of such
contributions. An exception applies in the case of a qualified
charitable distribution.
Charitable contributions
In computing taxable income, an individual taxpayer who
itemizes deductions generally is allowed to deduct the amount
of cash and up to the fair market value of property contributed
to the following entities: (1) a charity described in section
170(c)(2); (2) certain veterans' organizations, fraternal
societies, and cemetery companies;\1\ and (3) a Federal, State,
or local governmental entity, but only if the contribution is
made for exclusively public purposes.\2\ The deduction also is
allowed for purposes of calculating alternative minimum taxable
income.
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\1\Secs. 170(c)(3)-(5).
\2\Sec. 170(c)(1).
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The amount of the deduction allowable for a taxable year
with respect to a charitable contribution of property may be
reduced depending on the type of property contributed, the type
of charitable organization to which the property is
contributed, and the income of the taxpayer.\3\
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\3\Secs. 170(b) and (e).
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A taxpayer who takes the standard deduction (i.e., who does
not itemize deductions) may not take a separate deduction for
charitable contributions.\4\
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\4\Sec. 179(a).
---------------------------------------------------------------------------
A payment to a charity (regardless of whether it is termed
a ``contribution'') in exchange for which the donor receives an
economic benefit is not deductible, except to the extent that
the donor can demonstrate, among other things, that the payment
exceeds the fair market value of the benefit received from the
charity. To facilitate distinguishing charitable contributions
from purchases of goods or services from charities, present law
provides that no charitable contribution deduction is allowed
for a separate contribution of $250 or more unless the donor
obtains a contemporaneous written acknowledgement of the
contribution from the charity indicating whether the charity
provided any good or service (and an estimate of the value of
any such good or service provided) to the taxpayer in
consideration for the contribution.\5\ In addition, present law
requires that any charity that receives a contribution
exceeding $75 made partly as a gift and partly as consideration
for goods or services furnished by the charity (a ``quid pro
quo'' contribution) is required to inform the contributor in
writing of an estimate of the value of the goods or services
furnished by the charity and that only the portion exceeding
the value of the goods or services may be deductible as a
charitable contribution.\6\
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\5\Sec. 170(f)(8). For any contribution of cash, check, or other
monetary gift, no deduction is allowed unless the donor maintains as a
record of such contribution a bank record or written communication from
the donee charity showing the name of the donee organization, the date
of the contribution, and the amount of the contribution. Sec.
170(f)(17).
\6\Sec. 6115.
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Under present law, total deductible contributions of an
individual taxpayer to public charities, private operating
foundations, and certain types of private nonoperating
foundations generally may not exceed 50 percent of the
taxpayer's contribution base, which is the taxpayer's adjusted
gross income for a taxable year (disregarding any net operating
loss carryback). To the extent a taxpayer has not exceeded the
50-percent limitation, (1) contributions of capital gain
property to public charities generally may be deducted up to 30
percent of the taxpayer's contribution base, (2) contributions
of cash to most private nonoperating foundations and certain
other charitable organizations generally may be deducted up to
30 percent of the taxpayer's contribution base, and (3)
contributions of capital gain property to private foundations
and certain other charitable organizations generally may be
deducted up to 20 percent of the taxpayer's contribution base.
Contributions by individuals in excess of the 50-percent,
30-percent, and 20-percent limits generally may be carried over
and deducted over the next five taxable years, subject to the
relevant percentage limitations on the deduction in each of
those years.
In general, a charitable deduction is not allowed for
income, estate, or gift tax purposes if the donor transfers an
interest in property to a charity (e.g., a remainder) while
also either retaining an interest in that property (e.g., an
income interest) or transferring an interest in that property
to a noncharity for less than full and adequate
consideration.\7\ Exceptions to this general rule are provided
for, among other interests, remainder interests in charitable
remainder annuity trusts, charitable remainder unitrusts, and
pooled income funds, and present interests in the form of a
guaranteed annuity or a fixed percentage of the annual value of
the property.\8\ For such interests, a charitable deduction is
allowed to the extent of the present value of the interest
designated for a charitable organization.
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\7\Secs. 170(f), 2055(e)(2), and 2522(c)(2).
\8\Sec. 170(f)(2).
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IRA rules
Within limits, individuals may make deductible and
nondeductible contributions to a traditional IRA. Amounts in a
traditional IRA are includible in income when withdrawn (except
to the extent the withdrawal represents a return of
nondeductible contributions). Certain individuals also may make
nondeductible contributions to a Roth IRA (deductible
contributions cannot be made to Roth IRAs). Qualified
withdrawals from a Roth IRA are excludable from gross income.
Withdrawals from a Roth IRA that are not qualified withdrawals
are includible in gross income to the extent attributable to
earnings. Includible amounts withdrawn from a traditional IRA
or a Roth IRA before attainment of age 59\1/2\ are subject to
an additional 10-percent early withdrawal tax, unless an
exception applies. Under present law, minimum distributions are
required to be made from tax-favored retirement arrangements,
including IRAs. Minimum required distributions from a
traditional IRA must generally begin by April 1 of the calendar
year following the year in which the IRA owner attains age
70\1/2\.\9\
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\9\Minimum distribution rules also apply in the case of
distribution after the death of a traditional or Roth IRA owner.
---------------------------------------------------------------------------
If an individual has made nondeductible contributions to a
traditional IRA, a portion of each distribution from an IRA is
nontaxable until the total amount of nondeductible
contributions has been received. In general, the amount of a
distribution that is nontaxable is determined by multiplying
the amount of the distribution by the ratio of the remaining
nondeductible contributions to the account balance. In making
the calculation, all traditional IRAs of an individual are
treated as a single IRA, all distributions during any taxable
year are treated as a single distribution, and the value of the
contract, income on the contract, and investment in the
contract are computed as of the close of the calendar year.
In the case of a distribution from a Roth IRA that is not a
qualified distribution, in determining the portion of the
distribution attributable to earnings, contributions and
distributions are deemed to be distributed in the following
order: (1) regular Roth IRA contributions; (2) taxable
conversion contributions;\10\ (3) nontaxable conversion
contributions; and (4) earnings. In determining the amount of
taxable distributions from a Roth IRA, all Roth IRA
distributions in the same taxable year are treated as a single
distribution, all regular Roth IRA contributions for a year are
treated as a single contribution, and all conversion
contributions during the year are treated as a single
contribution.
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\10\Conversion contributions refer to conversions of amounts in a
traditional IR to a Roth IRA.
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Distributions from an IRA (other than a Roth IRA) are
generally subject to withholding unless the individual elects
not to have withholding apply.\11\ Elections not to have
withholding apply are to be made in the time and manner
prescribed by the Secretary.
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\11\Sec. 3405.
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Qualified charitable distributions
Otherwise taxable IRA distributions from a traditional or
Roth IRA are excluded from gross income to the extent they are
qualified charitable distributions.\12\ The exclusion may not
exceed $100,000 per taxpayer per taxable year. Special rules
apply in determining the amount of an IRA distribution that is
otherwise taxable. The otherwise applicable rules regarding
taxation of IRA distributions and the deduction of charitable
contributions continue to apply to distributions from an IRA
that are not qualified charitable distributions. A qualified
charitable distribution is taken into account for purposes of
the minimum distribution rules applicable to traditional IRAs
to the same extent the distribution would have been taken into
account under such rules had the distribution not been directly
distributed under the qualified charitable distribution
provision. An IRA does not fail to qualify as an IRA as a
result of qualified charitable distributions being made from
the IRA.
---------------------------------------------------------------------------
\12\Sec. 408(d)(8). The exclusion does not apply to distributions
from employer-sponsored retirement plans, including SIMPLE IRAs and
simplified employee pensions (``SEPs'').
---------------------------------------------------------------------------
A qualified charitable distribution is any distribution
from an IRA directly by the IRA trustee to an organization
described in section 170(b)(1)(A) (generally, public charities)
other than a supporting organization (as described in section
509(a)(3)) or a donor advised fund (as defined in section
4966(d)(2)). Distributions are eligible for the exclusion only
if made on or after the date the IRA owner attains age 70\1/2\
and only to the extent the distribution would be includible in
gross income (without regard to this provision).
The exclusion applies only if a charitable contribution
deduction for the entire distribution otherwise would be
allowable (under present law), determined without regard to the
generally applicable percentage limitations. Thus, for example,
if the deductible amount is reduced because of a benefit
received in exchange, or if a deduction is not allowable
because the donor did not obtain sufficient substantiation, the
exclusion is not available with respect to any part of the IRA
distribution.
If the IRA owner has any IRA that includes nondeductible
contributions, a special rule applies in determining the
portion of a distribution that is includible in gross income
(but for the qualified charitable distribution provision) and
thus is eligible for qualified charitable distribution
treatment. Under the special rule, the distribution is treated
as consisting of income first, up to the aggregate amount that
would be includible in gross income (but for the qualified
charitable distribution provision) if the aggregate balance of
all IRAs having the same owner were distributed during the same
year. In determining the amount of subsequent IRA distributions
includible in income, proper adjustments are to be made to
reflect the amount treated as a qualified charitable
distribution under the special rule.
Distributions that are excluded from gross income by reason
of the qualified charitable distribution provision are not
taken into account in determining the deduction for charitable
contributions under section 170.
Under present law, the exclusion does not apply to
distributions made in taxable years beginning after December
31, 2014.
REASONS FOR CHANGE
The Committee believes that facilitating charitable
contributions from IRAs will increase giving to charitable
organizations. Therefore, the Committee believes that the
exclusion for qualified charitable distributions should be
permanently extended.
EXPLANATION OF PROVISION
The provision reinstates and makes permanent the exclusion
from gross income for qualified charitable distributions from
an IRA.
The provision exempts any budgetary effects from the PAYGO
scorecards under the Statutory Pay-As-You-Go Act of 2010.
EFFECTIVE DATE
The provision is effective for distributions made in
taxable years beginning after December 31, 2014.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of H.R. 637, the Permanent IRA Charitable
Contribution Act of 2015, on February 4, 2015.
The bill, H.R. 637, was ordered favorably reported as
amended by a roll call vote of 24 yeas to 14 nays (with a
quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Ryan....................... X ........ ......... Mr. Levin........ ........ X .........
Mr. Johnson.................... X ........ ......... Mr. Rangel....... ........ X .........
Mr. Brady...................... X ........ ......... Mr. McDermott.... ........ X .........
Mr. Nunes...................... X ........ ......... Mr. Lewis........ ........ X .........
Mr. Tiberi..................... X ........ ......... Mr. Neal......... ........ X .........
Mr. Reichert................... X ........ ......... Mr. Becerra...... ........ X .........
Mr. Boustany................... X ........ ......... Mr. Doggett...... ........ X .........
Mr. Roskam..................... X ........ ......... Mr. Thompson..... ........ X .........
Mr. Price...................... X ........ ......... Mr. Larson....... ........ X .........
Mr. Buchanan................... X ........ ......... Mr. Blumenauer... ........ ........ .........
Mr. Smith (NE)................. X ........ ......... Mr. Kind......... ........ X .........
Mr. Schock..................... X ........ ......... Mr. Pascrell..... ........ X .........
Ms. Jenkins.................... X ........ ......... Mr. Crowley...... ........ X .........
Mr. Paulsen.................... X ........ ......... Mr. Davis........ ........ X .........
Mr. Marchant................... X ........ ......... Ms. Sanchez...... ........ X .........
Ms. Black...................... X ........ .........
Mr. Reed....................... X ........ .........
Mr. Young...................... X ........ .........
Mr. Kelly...................... X ........ .........
Mr. Renacci.................... X ........ .........
Mr. Meehan..................... X ........ .........
Ms. Noem....................... X ........ .........
Mr. Holding.................... X ........ .........
Mr. Smith (MO)................. X ........ .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 637, as
reported.
The bill, as reported, is estimated to have the following
effect on Federal budget receipts for fiscal years 2015-2025:
FISCAL YEARS
[Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-20 2015-25
--------------------------------------------------------------------------------------------------------------------------------------------------------
-196 -659 -702 -775 -813 -855 -895 -933 -967 -1,001 -1,030 -4,000 -8,826
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pursuant to clause 8 of rule XIII of the Rules of the House
of Representatives, the following statement is made by the
Joint Committee on Taxation with respect to the provisions of
the bill amending the Internal Revenue Code of 1986: the gross
budgetary effect (before incorporating macroeconomic effects)
in any fiscal year is less than 0.25 percent of the current
projected gross domestic product of the United States for that
fiscal year; therefore, the bill is not ``major legislation''
for purposes of requiring that the estimate include the
budgetary effects of changes in economic output, employment,
capital stock and other macroeconomic variables.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority. The
Committee further states that the revenue-reducing tax
provisions involve increased tax expenditures. (See amounts in
table in Part IV.A., above.)
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
U.S. Congress
Congressional Budget Office,
Washington, DC, February 5, 2015.
Hon. Paul Ryan
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 637, the Permanent
IRA Charitable Contribution Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Nate Frentz.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 637--Permanent IRA Charitable Contribution Act of 2015
H.R. 637 would amend the Internal Revenue Code to reinstate
and make permanent a rule that had allowed eligible taxpayers
to exclude from taxable income certain distributions from their
individual retirement accounts (IRAs) that were directly
donated to qualifying charities. Under current law, the rule
expired for distributions made after December 31, 2014. The tax
treatment under H.R. 637 would apply to taxpayers over the age
of 70 years and six months, and would be limited to $100,000
per taxpayer for any year. Qualified donations would include
those to most public charities that would be deductible for
taxpayers who itemize their income tax deductions. Taxpayers
who excluded amounts from taxable income as a result of the
bill would not be allowed to also claim an itemized deduction
for such amounts. Amounts donated from IRAs would count for
purposes of required minimum distributions.
The staff of the Joint Committee on Taxation (JCT)
estimates that enacting H.R. 637 would reduce revenues, thus
increasing federal budget deficits, by about $8.8 billion over
the 2015-2025 period. The estimated budgetary effects of H.R.
637 are shown in the following table.
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------------------------------
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-2020 2015-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN REVENUES
Estimated Revenues........... -196 -659 -702 -775 -813 -855 -895 -933 -967 -1,001 -1,030 -4,000 -8,826
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Staff of the Joint Committee on Taxation.
Although enacting H.R. 637 would affect revenues, the
provisions of the Statutory Pay-As-You-Go Act of 2010 do not
apply to the legislation because it includes a provision that
would direct the Office of Management and Budget to exclude the
estimated changes in revenues from the scorecards used to
enforce the pay-as-you-go rules.
JCT has determined that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Nathaniel
Frentz. The estimate was approved by David Weiner, Assistant
Director for Tax Analysis.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee advises that it was as a result of the
Committee's review of the provisions of H.R. 637 that the
Committee concluded that it is appropriate to report the bill,
as amended, favorably to the House of Representatives with the
recommendation that the bill do pass.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill contains no measure that authorizes funding, so no
statement of general performance goals and objectives for which
any measure authorizes funding is required.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. Applicability of House Rule XXI 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
involve any Federal income tax rate increases within the
meaning of the rule.
E. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'')
requires the staff of the Joint Committee on Taxation (in
consultation with the Internal Revenue Service and the Treasury
Department) to provide a tax complexity analysis. The
complexity analysis is required for all legislation reported by
the Senate Committee on Finance, the House Committee on Ways
and Means, or any committee of conference if the legislation
includes a provision that directly or indirectly amends the
Internal Revenue Code and has widespread applicability to
individuals or small businesses.
Pursuant to clause 3(h)(1) of rule XIII of the Rules of the
House of Representatives, the staff of the Joint Committee on
Taxation has determined that a complexity analysis is not
required under section 4022(b) of the IRS Reform Act because
the bill contains no provisions that amend the Code and that
have ``widespread applicability'' to individuals or small
businesses, within the meaning of the rule.
F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
G. Duplication of Federal Programs
In compliance with Sec. 3(g)(2) of H. Res. 5 (114th
Congress), the Committee states that no provision of the bill
establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program,
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169).
H. Disclosure of Directed Rule Makings
In compliance with Sec. 3(i) of H. Res. 5 (114th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle A--Income Taxes
* * * * * * *
CHAPTER 1--NORMAL TAXES AND SURTAXES
* * * * * * *
Subchapter D--Deferred Compensation, Etc
* * * * * * *
PART I--PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC
* * * * * * *
Subpart A--General Rule
* * * * * * *
SEC. 408. INDIVIDUAL RETIREMENT ACCOUNTS.
(a) Individual Retirement Account.--For purposes of this
section, the term ``individual retirement account'' means a
trust created or organized in the United States for the
exclusive benefit of an individual or his beneficiaries, but
only if the written governing instrument creating the trust
meets the following requirements:
(1) Except in the case of a rollover contribution
described in subsection (d)(3) in section 402(c),
403(a)(4), 403(b)(8), or 457(e)(16), no contribution
will be accepted unless it is in cash, and
contributions will not be accepted for the taxable year
on behalf of any individual in excess of the amount in
effect for such taxable year under section
219(b)(1)(A).
(2) The trustee is a bank (as defined in subsection
(n)) or such other person who demonstrates to the
satisfaction of the Secretary that the manner in which
such other person will administer the trust will be
consistent with the requirements of this section.
(3) No part of the trust funds will be invested in
life insurance contracts.
(4) The interest of an individual in the balance in
his account is nonforfeitable.
(5) The assets of the trust will not be commingled
with other property except in a common trust fund or
common investment fund.
(6) Under regulations prescribed by the Secretary,
rules similar to the rules of section 401(a)(9) and the
incidental death benefit requirements of section 401(a)
shall apply to the distribution of the entire interest
of an individual for whose benefit the trust is
maintained.
(b) Individual Retirement Annuity.--For purposes of this
section, the term ``individual retirement annuity'' means an
annuity contract, or an endowment contract (as determined under
regulations prescribed by the Secretary), issued by an
insurance company which meets the following requirements:
(1) The contract is not transferable by the owner.
(2) Under the contract--
(A) the premiums are not fixed,
(B) the annual premium on behalf of any
individual will not exceed the dollar amount in
effect under section 219(b)(1)(A), and
(C) any refund of premiums will be applied
before the close of the calendar year following
the year of the refund toward the payment of
future premiums or the purchase of additional
benefits.
(3) Under regulations prescribed by the Secretary,
rules similar to the rules of section 401(a)(9) and the
incidental death benefit requirements of section 401(a)
shall apply to the distribution of the entire interest
of the owner.
(4) The entire interest of the owner is
nonforfeitable.
Such term does not include such an annuity contract for any
taxable year of the owner in which it is disqualified on the
application of subsection (e) or for any subsequent taxable
year. For purposes of this subsection, no contract shall be
treated as an endowment contract if it matures later than the
taxable year in which the individual in whose name such
contract is purchased attains age 70 1/2; if it is not for the
exclusive benefit of the individual in whose name it is
purchased or his beneficiaries; or if the aggregate annual
premiums under all such contracts purchased in the name of such
individual for any taxable year exceed the dollar amount in
effect under section 219(b)(1)(A).
(c) Accounts Established by Employers and Certain
Associations of Employees.--A trust created or organized in the
United States by an employer for the exclusive benefit of his
employees or their beneficiaries, or by an association of
employees (which may include employees within the meaning of
section 401(c)(1)) for the exclusive benefit of its members or
their beneficiaries, shall be treated as an individual
retirement account (described in subsection (a)), but only if
the written governing instrument creating the trust meets the
following requirements:
(1) The trust satisfies the requirements of
paragraphs (1) through (6) of subsection (a).
(2) There is a separate accounting for the interest
of each employee or member (or spouse of an employee or
member).
The assets of the trust may be held in a common fund for the
account of all individuals who have an interest in the trust.
(d) Tax Treatment of Distributions.--
(1) In general.--Except as otherwise provided in this
subsection, any amount paid or distributed out of an
individual retirement plan shall be included in gross
income by the payee or distributee, as the case may be,
in the manner provided under section 72.
(2) Special rules for applying section 72.--For
purposes of applying section 72 to any amount described
in paragraph (1)--
(A) all individual retirement plans shall be
treated as 1 contract,
(B) all distributions during any taxable year
shall be treated as 1 distribution, and
(C) the value of the contract, income on the
contract, and investment in the contract shall
be computed as of the close of the calendar
year in which the taxable year begins.
For purposes of subparagraph (C), the value of the
contract shall be increased by the amount of any
distributions during the calendar year.
(3) Rollover contribution.--An amount is described in
this paragraph as a rollover contribution if it meets
the requirements of subparagraphs (A) and (B).
(A) In general.--Paragraph (1) does not apply
to any amount paid or distributed out of an
individual retirement account or individual
retirement annuity to the individual for whose
benefit the account or annuity is maintained
if--
(i) the entire amount received
(including money and any other
property) is paid into an individual
retirement account or individual
retirement annuity (other than an
endowment contract) for the benefit of
such individual not later than the 60th
day after the day on which he receives
the payment or distribution; or
(ii) the entire amount received
(including money and any other
property) is paid into an eligible
retirement plan for the benefit of such
individual not later than the 60th day
after the date on which the payment or
distribution is received, except that
the maximum amount which may be paid
into such plan may not exceed the
portion of the amount received which is
includible in gross income (determined
without regard to this paragraph).
For purposes of clause (ii), the term
``eligible retirement plan'' means an eligible
retirement plan described in clause (iii),
(iv), (v), or (vi) of section 402(c)(8)(B).
(B) Limitation.--This paragraph does not
apply to any amount described in subparagraph
(A)(i) received by an individual from an
individual retirement account or individual
retirement annuity if at any time during the 1-
year period ending on the day of such receipt
such individual received any other amount
described in that subparagraph from an
individual retirement account or an individual
retirement annuity which was not includible in
his gross income because of the application of
this paragraph.
(C) Denial of rollover treatment for
inherited accounts, etc.--
(i) In general.--In the case of an
inherited individual retirement account
or individual retirement annuity--
(I) this paragraph shall not
apply to any amount received by
an individual from such an
account or annuity (and no
amount transferred from such
account or annuity to another
individual retirement account
or annuity shall be excluded
from gross income by reason of
such transfer), and
(II) such inherited account
or annuity shall not be treated
as an individual retirement
account or annuity for purposes
of determining whether any
other amount is a rollover
contribution.
(ii) Inherited individual retirement
account or annuity.--An individual
retirement account or individual
retirement annuity shall be treated as
inherited if--
(I) the individual for whose
benefit the account or annuity
is maintained acquired such
account by reason of the death
of another individual, and
(II) such individual was not
the surviving spouse of such
other individual.
(D) Partial rollovers permitted.--
(i) In general.--If any amount paid
or distributed out of an individual
retirement account or individual
retirement annuity would meet the
requirements of subparagraph (A) but
for the fact that the entire amount was
not paid into an eligible plan as
required by clause (i) or (ii) of
subparagraph (A), such amount shall be
treated as meeting the requirements of
subparagraph (A) to the extent it is
paid into an eligible plan referred to
in such clause not later than the 60th
day referred to in such clause.
(ii) Eligible plan.--For purposes of
clause (i), the term ``eligible plan''
means any account, annuity, contract,
or plan referred to in subparagraph
(A).
(E) Denial of rollover treatment for required
distributions.--This paragraph shall not apply
to any amount to the extent such amount is
required to be distributed under subsection
(a)(6) or (b)(3).
(F) Frozen deposits.--For purposes of this
paragraph, rules similar to the rules of
section 402(c)(7) (relating to frozen deposits)
shall apply.
(G) Simple retirement accounts.--In the case
of any payment or distribution out of a simple
retirement account (as defined in subsection
(p)) to which section 72(t)(6) applies, this
paragraph shall not apply unless such payment
or distribution is paid into another simple
retirement account.
(H) Application of section 72.--
(i) In general.--If--
(I) a distribution is made
from an individual retirement
plan, and
(II) a rollover contribution
is made to an eligible
retirement plan described in
section 402(c)(8)(B)(iii),
(iv), (v), or (vi) with respect
to all or part of such
distribution,
then, notwithstanding paragraph (2),
the rules of clause (ii) shall apply
for purposes of applying section 72.
(ii) Applicable rules.--In the case
of a distribution described in clause
(i)--
(I) section 72 shall be
applied separately to such
distribution,
(II) notwithstanding the pro
rata allocation of income on,
and investment in, the contract
to distributions under section
72, the portion of such
distribution rolled over to an
eligible retirement plan
described in clause (i) shall
be treated as from income on
the contract (to the extent of
the aggregate income on the
contract from all individual
retirement plans of the
distributee), and
(III) appropriate adjustments
shall be made in applying
section 72 to other
distributions in such taxable
year and subsequent taxable
years.
(I) Waiver of 60-day requirement.--The
Secretary may waive the 60-day requirement
under subparagraphs (A) and (D) where the
failure to waive such requirement would be
against equity or good conscience, including
casualty, disaster, or other events beyond the
reasonable control of the individual subject to
such requirement.
(4) Contributions returned before due date of
return.--Paragraph (1) does not apply to the
distribution of any contribution paid during a taxable
year to an individual retirement account or for an
individual retirement annuity if--
(A) such distribution is received on or
before the day prescribed by law (including
extensions of time) for filing such
individual's return for such taxable year,
(B) no deduction is allowed under section 219
with respect to such contribution, and
(C) such distribution is accompanied by the
amount of net income attributable to such
contribution.
In the case of such a distribution, for purposes of
section 61, any net income described in subparagraph
(C) shall be deemed to have been earned and receivable
in the taxable year in which such contribution is made.
(5) Distributions of excess contributions after due
date for taxable year and certain excess rollover
contributions.--
(A) In general.--In the case of any
individual, if the aggregate contributions
(other than rollover contributions) paid for
any taxable year to an individual retirement
account or for an individual retirement annuity
do not exceed the dollar amount in effect under
section 219(b)(1)(A), paragraph (1) shall not
apply to the distribution of any such
contribution to the extent that such
contribution exceeds the amount allowable as a
deduction under section 219 for the taxable
year for which the contribution was paid--
(i) if such distribution is received
after the date described in paragraph
(4),
(ii) but only to the extent that no
deduction has been allowed under
section 219 with respect to such excess
contribution.
If employer contributions on behalf of the
individual are paid for the taxable year to a
simplified employee pension, the dollar
limitation of the preceding sentence shall be
increased by the lesser of the amount of such
contributions or the dollar limitation in
effect under section 415(c)(1)(A) for such
taxable year.
(B) Excess rollover contributions
attributable to erroneous information.--If--
(i) the taxpayer reasonably relies on
information supplied pursuant to
subtitle F for determining the amount
of a rollover contribution, but
(ii) the information was erroneous,
subparagraph (A) shall be applied by
increasing the dollar limit set forth
therein by that portion of the excess
contribution which was attributable to
such information.
For purposes of this paragraph, the amount allowable as
a deduction under section 219 shall be computed without
regard to section 219(g).
(6) Transfer of account incident to divorce.--The
transfer of an individual's interest in an individual
retirement account or an individual retirement annuity
to his spouse or former spouse under a divorce or
separation instrument described in subparagraph (A) of
section 71(b)(2) is not to be considered a taxable
transfer made by such individual notwithstanding any
other provision of this subtitle, and such interest at
the time of the transfer is to be treated as an
individual retirement account of such spouse, and not
of such individual. Thereafter such account or annuity
for purposes of this subtitle is to be treated as
maintained for the benefit of such spouse.
(7) Special rules for simplified employee pensions or
simple retirement accounts.--
(A) Transfer or rollover of contributions
prohibited until deferral test met.--
Notwithstanding any other provision of this
subsection or section 72(t), paragraph (1) and
section 72(t)(1) shall apply to the transfer or
distribution from a simplified employee pension
of any contribution under a salary reduction
arrangement described in subsection (k)(6) (or
any income allocable thereto) before a
determination as to whether the requirements of
subsection (k)(6)(A)(iii) are met with respect
to such contribution.
(B) Certain exclusions treated as
deductions.--For purposes of paragraphs (4) and
(5) and section 4973, any amount excludable or
excluded from gross income under section 402(h)
or 402(k) shall be treated as an amount
allowable or allowed as a deduction under
section 219.
(8) Distributions for charitable purposes.--
(A) In general.--So much of the aggregate
amount of qualified charitable distributions
with respect to a taxpayer made during any
taxable year which does not exceed $100,000
shall not be includible in gross income of such
taxpayer for such taxable year.
(B) Qualified charitable distribution.--For
purposes of this paragraph, the term
``qualified charitable distribution'' means any
distribution from an individual retirement plan
(other than a plan described in subsection (k)
or (p))--
(i) which is made directly by the
trustee to an organization described in
section 170(b)(1)(A) (other than any
organization described in section
509(a)(3) or any fund or account
described in section 4966(d)(2)), and
(ii) which is made on or after the
date that the individual for whose
benefit the plan is maintained has
attained age 70\1/2\.
A distribution shall be treated as a qualified
charitable distribution only to the extent that
the distribution would be includible in gross
income without regard to subparagraph (A).
(C) Contributions must be otherwise
deductible.--For purposes of this paragraph, a
distribution to an organization described in
subparagraph (B)(i) shall be treated as a
qualified charitable distribution only if a
deduction for the entire distribution would be
allowable under section 170 (determined without
regard to subsection (b) thereof and this
paragraph).
(D) Application of section 72.--
Notwithstanding section 72, in determining the
extent to which a distribution is a qualified
charitable distribution, the entire amount of
the distribution shall be treated as includible
in gross income without regard to subparagraph
(A) to the extent that such amount does not
exceed the aggregate amount which would have
been so includible if all amounts in all
individual retirement plans of the individual
were distributed during such taxable year and
all such plans were treated as 1 contract for
purposes of determining under section 72 the
aggregate amount which would have been so
includible. Proper adjustments shall be made in
applying section 72 to other distributions in
such taxable year and subsequent taxable years.
(E) Denial of deduction.--Qualified
charitable distributions which are not
includible in gross income pursuant to
subparagraph (A) shall not be taken into
account in determining the deduction under
section 170.
[(F) Termination.--This paragraph shall not
apply to distributions made in taxable years
beginning after December 31, 2014.]
(9) Distribution for health savings account
funding.--
(A) In general.--In the case of an individual
who is an eligible individual (as defined in
section 223(c)) and who elects the application
of this paragraph for a taxable year, gross
income of the individual for the taxable year
does not include a qualified HSA funding
distribution to the extent such distribution is
otherwise includible in gross income.
(B) Qualified HSA funding distribution.--For
purposes of this paragraph, the term
``qualified HSA funding distribution'' means a
distribution from an individual retirement plan
(other than a plan described in subsection (k)
or (p)) of the employee to the extent that such
distribution is contributed to the health
savings account of the individual in a direct
trustee- to-trustee transfer.
(C) Limitations.--
(i) Maximum dollar limitation.--The
amount excluded from gross income by
subparagraph (A) shall not exceed the
excess of--
(I) the annual limitation
under section 223(b) computed
on the basis of the type of
coverage under the high
deductible health plan covering
the individual at the time of
the qualified HSA funding
distribution, over
(II) in the case of a
distribution described in
clause (ii)(II), the amount of
the earlier qualified HSA
funding distribution.
(ii) One-time transfer.--
(I) In general.--Except as
provided in subclause (II), an
individual may make an election
under subparagraph (A) only for
one qualified HSA funding
distribution during the
lifetime of the individual.
Such an election, once made,
shall be irrevocable.
(II) Conversion from self-
only to family coverage.--If a
qualified HSA funding
distribution is made during a
month in a taxable year during
which an individual has self-
only coverage under a high
deductible health plan as of
the first day of the month, the
individual may elect to make an
additional qualified HSA
funding distribution during a
subsequent month in such
taxable year during which the
individual has family coverage
under a high deductible health
plan as of the first day of the
subsequent month.
(D) Failure to maintain high deductible
health plan coverage.--
(i) In general.--If, at any time
during the testing period, the
individual is not an eligible
individual, then the aggregate amount
of all contributions to the health
savings account of the individual made
under subparagraph (A)--
(I) shall be includible in
the gross income of the
individual for the taxable year
in which occurs the first month
in the testing period for which
such individual is not an
eligible individual, and
(II) the tax imposed by this
chapter for any taxable year on
the individual shall be
increased by 10 percent of the
amount which is so includible.
(ii) Exception for disability or
death.--Subclauses (I) and (II) of
clause (i) shall not apply if the
individual ceased to be an eligible
individual by reason of the death of
the individual or the individual
becoming disabled (within the meaning
of section 72(m)(7)).
(iii) Testing period.--The term
``testing period'' means the period
beginning with the month in which the
qualified HSA funding distribution is
contributed to a health savings account
and ending on the last day of the 12th
month following such month.
(E) Application of section 72.--
Notwithstanding section 72, in determining the
extent to which an amount is treated as
otherwise includible in gross income for
purposes of subparagraph (A), the aggregate
amount distributed from an individual
retirement plan shall be treated as includible
in gross income to the extent that such amount
does not exceed the aggregate amount which
would have been so includible if all amounts
from all individual retirement plans were
distributed. Proper adjustments shall be made
in applying section 72 to other distributions
in such taxable year and subsequent taxable
years.
(e) Tax Treatment of Accounts and Annuities.--
(1) Exemption from tax.--Any individual retirement
account is exempt from taxation under this subtitle
unless such account has ceased to be an individual
retirement account by reason of paragraph (2) or (3).
Notwithstanding the preceding sentence, any such
account is subject to the taxes imposed by section 511
(relating to imposition of tax on unrelated business
income of charitable, etc. organizations).
(2) Loss of exemption of account where employee
engages in prohibited transaction.--
(A) In general.--If, during any taxable year
of the individual for whose benefit any
individual retirement account is established,
that individual or his beneficiary engages in
any transaction prohibited by section 4975 with
respect to such account, such account ceases to
be an individual retirement account as of the
first day of such taxable year. For purposes of
this paragraph--
(i) the individual for whose benefit
any account was established is treated
as the creator of such account, and
(ii) the separate account for any
individual within an individual
retirement account maintained by an
employer or association of employees is
treated as a separate individual
retirement account.
(B) Account treated as distributing all its
assets.--In any case in which any account
ceases to be an individual retirement account
by reason of subparagraph (A) as of the first
day of any taxable year, paragraph (1) of
subsection (d) applies as if there were a
distribution on such first day in an amount
equal to the fair market value (on such first
day) of all assets in the account (on such
first day).
(3) Effect of borrowing on annuity contract.--If
during any taxable year the owner of an individual
retirement annuity borrows any money under or by use of
such contract, the contract ceases to be an individual
retirement annuity as of the first day of such taxable
year. Such owner shall include in gross income for such
year an amount equal to the fair market value of such
contract as of such first day.
(4) Effect of pledging account as security.--If,
during any taxable year of the individual for whose
benefit an individual retirement account is
established, that individual uses the account or any
portion thereof as security for a loan, the portion so
used is treated as distributed to that individual.
(5) Purchase of endowment contract by individual
retirement account.--If the assets of an individual
retirement account or any part of such assets are used
to purchase an endowment contract for the benefit of
the individual for whose benefit the account is
established--
(A) to the extent that the amount of the
assets involved in the purchase are not
attributable to the purchase of life insurance,
the purchase is treated as a rollover
contribution described in subsection (d)(3),
and
(B) to the extent that the amount of the
assets involved in the purchase are
attributable to the purchase of life, health,
accident, or other insurance, such amounts are
treated as distributed to that individual (but
the provisions of subsection (f) do not apply).
(6) Commingling individual retirement account amounts
in certain common trust funds and common investment
funds.--Any common trust fund or common investment fund
of individual retirement account assets which is exempt
from taxation under this subtitle does not cease to be
exempt on account of the participation or inclusion of
assets of a trust exempt from taxation under section
501(a) which is described in section 401(a).
(g) Community Property Laws.--This section shall be applied
without regard to any community property laws.
(h) Custodial Accounts.--For purposes of this section, a
custodial account shall be treated as a trust if the assets of
such account are held by a bank (as defined in subsection (n))
or another person who demonstrates, to the satisfaction of the
Secretary, that the manner in which he will administer the
account will be consistent with the requirements of this
section, and if the custodial account would, except for the
fact that it is not a trust, constitute an individual
retirement account described in subsection (a). For purposes of
this title, in the case of a custodial account treated as a
trust by reason of the preceding sentence, the custodian of
such account shall be treated as the trustee thereof.
(i) Reports.--The trustee of an individual retirement account
and the issuer of an endowment contract described in subsection
(b) or an individual retirement annuity shall make such reports
regarding such account, contract, or annuity to the Secretary
and to the individuals for whom the account, contract, or
annuity is, or is to be, maintained with respect to
contributions (and the years to which they relate),
distributions aggregating $10 or more in any calendar year, and
such other matters as the Secretary may require. The reports
required by this subsection--
(1) shall be filed at such time and in such manner as
the Secretary prescribes, and
(2) shall be furnished to individuals--
(A) not later than January 31 of the calendar
year following the calendar year to which such
reports relate, and
(B) in such manner as the Secretary
prescribes.
In the case of a simple retirement account under subsection
(p), only one report under this subsection shall be required to
be submitted each calendar year to the Secretary (at the time
provided under paragraph (2)) but, in addition to the report
under this subsection, there shall be furnished, within 31 days
after each calendar year, to the individual on whose behalf the
account is maintained a statement with respect to the account
balance as of the close of, and the account activity during,
such calendar year.
(j) Increase in Maximum Limitations for Simplified Employee
Pensions.--In the case of any simplified employee pension,
subsections (a)(1) and (b)(2) of this section shall be applied
by increasing the amounts contained therein by the amount of
the limitation in effect under section 415(c)(1)(A).
(k) Simplified Employee Pension Defined.--
(1) In general.--For purposes of this title, the term
``simplified employee pension'' means an individual
retirement account or individual retirement annuity--
(A) with respect to which the requirements of
paragraphs (2), (3), (4), and (5) of this
subsection are met, and
(B) if such account or annuity is part of a
top-heavy plan (as defined in section 416),
with respect to which the requirements of
section 416(c)(2) are met.
(2) Participation requirements.--This paragraph is
satisfied with respect to a simplified employee pension
for a year only if for such year the employer
contributes to the simplified employee pension of each
employee who--
(A) has attained age 21,
(B) has performed service for the employer
during at least 3 of the immediately preceding
5 years, and
(C) received at least $450 in compensation
(within the meaning of section 414(q)(4)) from
the employer for the year.
For purposes of this paragraph, there shall be excluded
from consideration employees described in subparagraph
(A) or (C) of section 410(b)(3). For purposes of any
arrangement described in subsection (k)(6), any
employee who is eligible to have employer contributions
made on the employee's behalf under such arrangement
shall be treated as if such a contribution was made.
(3) Contributions may not discriminate in favor of
the highly compensated, etc.--
(A) In general.--The requirements of this
paragraph are met with respect to a simplified
employee pension for a year if for such year
the contributions made by the employer to
simplified employee pensions for his employees
do not discriminate in favor of any highly
compensated employee (within the meaning of
section 414(q)).
(B) Special rules.--For purposes of
subparagraph (A), there shall be excluded from
consideration employees described in
subparagraph (A) or (C) of section 410(b)(3).
(C) Contributions must bear uniform
relationship to total compensation.--For
purposes of subparagraph (A), and except as
provided in subparagraph (D), employer
contributions to simplified employee pensions
(other than contributions under an arrangement
described in paragraph (6)) shall be considered
discriminatory unless contributions thereto
bear a uniform relationship to the compensation
(not in excess of the first $200,000) of each
employee maintaining a simplified employee
pension.
(D) Permitted disparity.--For purposes of
subparagraph (C), the rules of section
401(l)(2) shall apply to contributions to
simplified employee pensions (other than
contributions under an arrangement described in
paragraph (6)).
(4) Withdrawals must be permitted.--A simplified
employee pension meets the requirements of this
paragraph only if--
(A) employer contributions thereto are not
conditioned on the retention in such pension of
any portion of the amount contributed, and
(B) there is no prohibition imposed by the
employer on withdrawals from the simplified
employee pension.
(5) Contributions must be made under written
allocation formula.--The requirements of this paragraph
are met with respect to a simplified employee pension
only if employer contributions to such pension are
determined under a definite written allocation formula
which specifies--
(A) the requirements which an employee must
satisfy to share in an allocation, and
(B) the manner in which the amount allocated
is computed.
(6) Employee may elect salary reduction
arrangement.--
(A) Arrangements which qualify.--
(i) In general.--A simplified
employee pension shall not fail to meet
the requirements of this subsection for
a year merely because, under the terms
of the pension, an employee may elect
to have the employer make payments--
(I) as elective employer
contributions to the simplified
employee pension on behalf of
the employee, or
(II) to the employee directly
in cash.
(ii) 50 percent of eligible employees
must elect.--Clause (i) shall not apply
to a simplified employee pension unless
an election described in clause (i)(I)
is made or is in effect with respect to
not less than 50 percent of the
employees of the employer eligible to
participate.
(iii) Requirements relating to
deferral percentage.--Clause (i) shall
not apply to a simplified employee
pension for any year unless the
deferral percentage for such year of
each highly compensated employee
eligible to participate is not more
than the product of--
(I) the average of the
deferral percentages for such
year of all employees (other
than highly compensated
employees) eligible to
participate, multiplied by
(II) 1.25.
(iv) Limitations on elective
deferrals.--Clause (i) shall not apply
to a simplified employee pension unless
the requirements of section 401(a)(30)
are met.
(B) Exception where more than 25 employees.--
This paragraph shall not apply with respect to
any year in the case of a simplified employee
pension maintained by an employer with more
than 25 employees who were eligible to
participate (or would have been required to be
eligible to participate if a pension was
maintained) at any time during the preceding
year.
(C) Distributions of excess contributions.--
(i) In general.--Rules similar to the
rules of section 401(k)(8) shall apply
to any excess contribution under this
paragraph. Any excess contribution
under a simplified employee pension
shall be treated as an excess
contribution for purposes of section
4979.
(ii) Excess contribution.--For
purposes of clause (i), the term
``excess contribution'' means, with
respect to a highly compensated
employee, the excess of elective
employer contributions under this
paragraph over the maximum amount of
such contributions allowable under
subparagraph (A)(iii).
(D) Deferral percentage.--For purposes of
this paragraph, the deferral percentage for an
employee for a year shall be the ratio of--
(i) the amount of elective employer
contributions actually paid over to the
simplified employee pension on behalf
of the employee for the year, to
(ii) the employee's compensation (not
in excess of the first $200,000) for
the year.
(E) Exception for State and local and tax-
exempt pensions.--This paragraph shall not
apply to a simplified employee pension
maintained by--
(i) a State or local government or
political subdivision thereof, or any
agency or instrumentality thereof, or
(ii) an organization exempt from tax
under this title.
(F) Exception where pension does not meet
requirements necessary to insure distribution
of excess contributions.--This paragraph shall
not apply with respect to any year for which
the simplified employee pension does not meet
such requirements as the Secretary may
prescribe as are necessary to insure that
excess contributions are distributed in
accordance with subparagraph (C), including--
(i) reporting requirements, and
(ii) requirements which,
notwithstanding paragraph (4), provide
that contributions (and any income
allocable thereto) may not be withdrawn
from a simplified employee pension
until a determination has been made
that the requirements of subparagraph
(A)(iii) have been met with respect to
such contributions.
(G) Highly compensated employee.--For
purposes of this paragraph, the term ``highly
compensated employee'' has the meaning given
such term by section 414(q).
(H) Termination.--This paragraph shall not
apply to years beginning after December 31,
1996. The preceding sentence shall not apply to
a simplified employee pension of an employer if
the terms of simplified pensions of such
employer, as in effect on December 31, 1996,
provide that an employee may make the election
described in subparagraph (A).
(7) Definitions.--For purposes of this subsection and
subsection (l)--
(A) Employee, employer, or owner-employee.--
The terms ``employee'', ``employer'', and
``owner-employee'' shall have the respective
meanings given such terms by section 401(c).
(B) Compensation.--Except as provided in
paragraph (2)(C), the term ``compensation'' has
the meaning given such term by section 414(s).
(C) Year.--The term ``year'' means--
(i) the calendar year, or
(ii) if the employer elects, subject
to such terms and conditions as the
Secretary may prescribe, to maintain
the simplified employee pension on the
basis of the employer's taxable year.
(8) Cost-of-living adjustment.--The Secretary shall
adjust the $450 amount in paragraph (2)(C) at the same
time and in the same manner as under section 415(d) and
shall adjust the $200,000 amount in paragraphs (3)(C)
and (6)(D)(ii) at the same time, and by the same
amount, as any adjustment under section 401(a)(17)(B);
except that any increase in the $450 amount which is
not a multiple of $50 shall be rounded to the next
lowest multiple of $50.
(9) Cross reference.--For excise tax on certain
excess contributions, see section 4979.
(l) Simplified Employer Reports.--
(1) In general.--An employer who makes a contribution
on behalf of an employee to a simplified employee
pension shall provide such simplified reports with
respect to such contributions as the Secretary may
require by regulations. The reports required by this
subsection shall be filed at such time and in such
manner, and information with respect to such
contributions shall be furnished to the employee at
such time and in such manner, as may be required by
regulations.
(2) Simple retirement accounts.--
(A) No employer reports.--Except as provided
in this paragraph, no report shall be required
under this section by an employer maintaining a
qualified salary reduction arrangement under
subsection (p).
(B) Summary description.--The trustee of any
simple retirement account established pursuant
to a qualified salary reduction arrangement
under subsection (p) and the issuer of an
annuity established under such an arrangement
shall provide to the employer maintaining the
arrangement, each year a description containing
the following information:
(i) The name and address of the
employer and the trustee or issuer.
(ii) The requirements for eligibility
for participation.
(iii) The benefits provided with
respect to the arrangement.
(iv) The time and method of making
elections with respect to the
arrangement.
(v) The procedures for, and effects
of, withdrawals (including rollovers)
from the arrangement.
(C) Employee notification.--The employer
shall notify each employee immediately before
the period for which an election described in
subsection (p)(5)(C) may be made of the
employee's opportunity to make such election.
Such notice shall include a copy of the
description described in subparagraph (B).
(m) Investment in Collectibles Treated as Distributions.--
(1) In general.--The acquisition by an individual
retirement account or by an individually-directed
account under a plan described in section 401(a) of any
collectible shall be treated (for purposes of this
section and section 402) as a distribution from such
account in an amount equal to the cost to such account
of such collectible.
(2) Collectible defined.--For purposes of this
subsection, the term ``collectible'' means--
(A) any work of art,
(B) any rug or antique,
(C) any metal or gem,
(D) any stamp or coin,
(E) any alcoholic beverage, or
(F) any other tangible personal property
specified by the Secretary for purposes of this
subsection.
(3) Exception for certain coins and bullion.--For
purposes of this subsection, the term ``collectible''
shall not include--
(A) any coin which is--
(i) a gold coin described in
paragraph (7), (8), (9), or (10) of
section 5112(a) of title 31, United
States Code,
(ii) a silver coin described in
section 5112(e) of title 31, United
States Code,
(iii) a platinum coin described in
section 5112(k) of title 31, United
States Code, or
(iv) a coin issued under the laws of
any State, or
(B) any gold, silver, platinum, or palladium
bullion of a fineness equal to or exceeding the
minimum fineness that a contract market (as
described in section 7 of the Commodity
Exchange Act, 7 U.S.C. 7) requires for metals
which may be delivered in satisfaction of a
regulated futures contract, if such bullion is
in the physical possession of a trustee
described under subsection (a) of this section.
(n) Bank.--For purposes of subsection (a)(2), the term
``bank'' means--
(1) any bank (as defined in section 581),
(2) an insured credit union (within the meaning of
paragraph (6) or (7) of section 101 of the Federal
Credit Union Act), and
(3) a corporation which, under the laws of the State
of its incorporation, is subject to supervision and
examination by the Commissioner of Banking or other
officer of such State in charge of the administration
of the banking laws of such State.
(o) Definitions and Rules Relating to Nondeductible
Contributions to Individual Retirement Plans.--
(1) In general.--Subject to the provisions of this
subsection, designated nondeductible contributions may
be made on behalf of an individual to an individual
retirement plan.
(2) Limits on amounts which may be contributed.--
(A) In general.--The amount of the designated
nondeductible contributions made on behalf of
any individual for any taxable year shall not
exceed the nondeductible limit for such taxable
year.
(B) Nondeductible limit.--For purposes of
this paragraph--
(i) In general.--The term
``nondeductible limit'' means the
excess of--
(I) the amount allowable as a
deduction under section 219
(determined without regard to
section 219(g)), over
(II) the amount allowable as
a deduction under section 219
(determined with regard to
section 219(g)).
(ii) Taxpayer may elect to treat
deductible contributions as
nondeductible.--If a taxpayer elects
not to deduct an amount which (without
regard to this clause) is allowable as
a deduction under section 219 for any
taxable year, the nondeductible limit
for such taxable year shall be
increased by such amount.
(C) Designated nondeductible contributions.--
(i) In general.--For purposes of this
paragraph, the term ``designated
nondeductible contribution'' means any
contribution to an individual
retirement plan for the taxable year
which is designated (in such manner as
the Secretary may prescribe) as a
contribution for which a deduction is
not allowable under section 219.
(ii) Designation.--Any designation
under clause (i) shall be made on the
return of tax imposed by chapter 1 for
the taxable year.
(3) Time when contributions made.--In determining for
which taxable year a designated nondeductible
contribution is made, the rule of section 219(f)(3)
shall apply.
(4) Individual required to report amount of
designated nondeductible contributions.--
(A) In general.--Any individual who--
(i) makes a designated nondeductible
contribution to any individual
retirement plan for any taxable year,
or
(ii) receives any amount from any
individual retirement plan for any
taxable year,
shall include on his return of the tax imposed
by chapter 1 for such taxable year and any
succeeding taxable year (or on such other form
as the Secretary may prescribe for any such
taxable year) information described in
subparagraph (B).
(B) Information required to be supplied.--The
following information is described in this
subparagraph:
(i) The amount of designated
nondeductible contributions for the
taxable year.
(ii) The amount of distributions from
individual retirement plans for the
taxable year.
(iii) The excess (if any) of--
(I) the aggregate amount of
designated nondeductible
contributions for all preceding
taxable years, over
(II) the aggregate amount of
distributions from individual
retirement plans which was
excludable from gross income
for such taxable years.
(iv) The aggregate balance of all
individual retirement plans of the
individual as of the close of the
calendar year in which the taxable year
begins.
(v) Such other information as the
Secretary may prescribe.
(C) Penalty for reporting contributions not
made.--For penalty where individual reports
designated nondeductible contributions not
made, see section 6693(b).
(p) Simple Retirement Accounts.--
(1) In general.--For purposes of this title, the term
``simple retirement account'' means an individual
retirement plan (as defined in section 7701(a)(37))--
(A) with respect to which the requirements of
paragraphs (3), (4), and (5) are met; and
(B) with respect to which the only
contributions allowed are contributions under a
qualified salary reduction arrangement.
(2) Qualified salary reduction arrangement.--
(A) In general.--For purposes of this
subsection, the term ``qualified salary
reduction arrangement'' means a written
arrangement of an eligible employer under
which--
(i) an employee eligible to
participate in the arrangement may
elect to have the employer make
payments--
(I) as elective employer
contributions to a simple
retirement account on behalf of
the employee, or
(II) to the employee directly
in cash,
(ii) the amount which an employee may
elect under clause (i) for any year is
required to be expressed as a
percentage of compensation and may not
exceed a total of the applicable dollar
amount for any year,
(iii) the employer is required to
make a matching contribution to the
simple retirement account for any year
in an amount equal to so much of the
amount the employee elects under clause
(i)(I) as does not exceed the
applicable percentage of compensation
for the year, and
(iv) no contributions may be made
other than contributions described in
clause (i) or (iii).
(B) Employer may elect 2-percent nonelective
contribution.--
(i) In general.--An employer shall be
treated as meeting the requirements of
subparagraph (A)(iii) for any year if,
in lieu of the contributions described
in such clause, the employer elects to
make nonelective contributions of 2
percent of compensation for each
employee who is eligible to participate
in the arrangement and who has at least
$5,000 of compensation from the
employer for the year. If an employer
makes an election under this
subparagraph for any year, the employer
shall notify employees of such election
within a reasonable period of time
before the 60-day period for such year
under paragraph (5)(C).
(ii) Compensation limitation.--The
compensation taken into account under
clause (i) for any year shall not
exceed the limitation in effect for
such year under section 401(a)(17).
(C) Definitions.--For purposes of this
subsection--
(i) Eligible employer.--
(I) In general.--The term
``eligible employer'' means,
with respect to any year, an
employer which had no more than
100 employees who received at
least $5,000 of compensation
from the employer for the
preceding year.
(II) 2-year grace period.--An
eligible employer who
establishes and maintains a
plan under this subsection for
1 or more years and who fails
to be an eligible employer for
any subsequent year shall be
treated as an eligible employer
for the 2 years following the
last year the employer was an
eligible employer. If such
failure is due to any
acquisition, disposition, or
similar transaction involving
an eligible employer, the
preceding sentence shall not
apply.
(ii) Applicable percentage.--
(I) In general.--The term
``applicable percentage'' means
3 percent.
(II) Election of lower
percentage.--An employer may
elect to apply a lower
percentage (not less than 1
percent) for any year for all
employees eligible to
participate in the plan for
such year if the employer
notifies the employees of such
lower percentage within a
reasonable period of time
before the 60-day election
period for such year under
paragraph (5)(C). An employer
may not elect a lower
percentage under this subclause
for any year if that election
would result in the applicable
percentage being lower than 3
percent in more than 2 of the
years in the 5-year period
ending with such year.
(III) Special rule for years
arrangement not in effect.--If
any year in the 5-year period
described in subclause (II) is
a year prior to the first year
for which any qualified salary
reduction arrangement is in
effect with respect to the
employer (or any predecessor),
the employer shall be treated
as if the level of the employer
matching contribution was at 3
percent of compensation for
such prior year.
(D) Arrangement may be only plan of
employer.--
(i) In general.--An arrangement shall
not be treated as a qualified salary
reduction arrangement for any year if
the employer (or any predecessor
employer) maintained a qualified plan
with respect to which contributions
were made, or benefits were accrued,
for service in any year in the period
beginning with the year such
arrangement became effective and ending
with the year for which the
determination is being made. If only
individuals other than employees
described in subparagraph (A) of
section 410(b)(3) are eligible to
participate in such arrangement, then
the preceding sentence shall be applied
without regard to any qualified plan in
which only employees so described are
eligible to participate.
(ii) Qualified plan.--For purposes of
this subparagraph, the term ``qualified
plan'' means a plan, contract, pension,
or trust described in subparagraph (A)
or (B) of section 219(g)(5).
(E) Applicable dollar amount; cost-of-living
adjustment.--
(i) In general.--For purposes of
subparagraph (A)(ii), the applicable
amount is $10,000.
(ii) Cost-of-living adjustment.--In
the case of a year beginning after
December 31, 2005, the Secretary shall
adjust the $10,000 amount under clause
(i) at the same time and in the same
manner as under section 415(d), except
that the base period taken into account
shall be the calendar quarter beginning
July 1, 2004, and any increase under
this subparagraph which is not a
multiple of $500 shall be rounded to
the next lower multiple of $500.
(3) Vesting requirements.--The requirements of this
paragraph are met with respect to a simple retirement
account if the employee's rights to any contribution to
the simple retirement account are nonforfeitable. For
purposes of this paragraph, rules similar to the rules
of subsection (k)(4) shall apply.
(4) Participation requirements.--
(A) In general.--The requirements of this
paragraph are met with respect to any simple
retirement account for a year only if, under
the qualified salary reduction arrangement, all
employees of the employer who--
(i) received at least $5,000 in
compensation from the employer during
any 2 preceding years, and
(ii) are reasonably expected to
receive at least $5,000 in compensation
during the year, are eligible to make
the election under paragraph (2)(A)(i)
or receive the nonelective contribution
described in paragraph (2)(B).
(B) Excludable employees.--An employer may
elect to exclude from the requirement under
subparagraph (A) employees described in section
410(b)(3).
(5) Administrative requirements.--The requirements of
this paragraph are met with respect to any simple
retirement account if, under the qualified salary
reduction arrangement--
(A) an employer must--
(i) make the elective employer
contributions under paragraph (2)(A)(i)
not later than the close of the 30-day
period following the last day of the
month with respect to which the
contributions are to be made, and
(ii) make the matching contributions
under paragraph (2)(A)(iii) or the
nonelective contributions under
paragraph (2)(B) not later than the
date described in section 404(m)(2)(B),
(B) an employee may elect to terminate
participation in such arrangement at any time
during the year, except that if an employee so
terminates, the arrangement may provide that
the employee may not elect to resume
participation until the beginning of the next
year, and
(C) each employee eligible to participate may
elect, during the 60-day period before the
beginning of any year (and the 60-day period
before the first day such employee is eligible
to participate), to participate in the
arrangement, or to modify the amounts subject
to such arrangement, for such year.
(6) Definitions.--For purposes of this subsection--
(A) Compensation.--
(i) In general.--The term
``compensation'' means amounts
described in paragraphs (3) and (8) of
section 6051(a). For purposes of the
preceding sentence, amounts described
in section 6051(a)(3) shall be
determined without regard to section
3401(a)(3).
(ii) Self-employed.--In the case of
an employee described in subparagraph
(B), the term ``compensation'' means
net earnings from self-employment
determined under section 1402(a)
without regard to any contribution
under this subsection. The preceding
sentence shall be applied as if the
term ``trade or business'' for purposes
of section 1402 included service
described in section 1402(c)(6).
(B) Employee.--The term ``employee'' includes
an employee as defined in section 401(c)(1).
(C) Year.--The term ``year'' means the
calendar year.
(7) Use of designated financial institution.--A plan
shall not be treated as failing to satisfy the
requirements of this subsection or any other provision
of this title merely because the employer makes all
contributions to the individual retirement accounts or
annuities of a designated trustee or issuer. The
preceding sentence shall not apply unless each plan
participant is notified in writing (either separately
or as part of the notice under subsection (l)(2)(C))
that the participant's balance may be transferred
without cost or penalty to another individual account
or annuity in accordance with subsection (d)(3)(G).
(8) Coordination with maximum limitation under
subsection (a).--In the case of any simple retirement
account, subsections (a)(1) and (b)(2) shall be applied
by substituting ``the sum of the dollar amount in
effect under paragraph (2)(A)(ii) of this subsection
and the employer contribution required under
subparagraph (A)(iii) or (B)(i) of paragraph (2) of
this subsection, whichever is applicable'' for ``the
dollar amount in effect under section 219(b)(1)(A)''.
(9) Matching contributions on behalf of self-employed
individuals not treated as elective employer
contributions.--Any matching contribution described in
paragraph (2)(A)(iii) which is made on behalf of a
self-employed individual (as defined in section 401(c))
shall not be treated as an elective employer
contribution to a simple retirement account for
purposes of this title.
(10) Special rules for acquisitions, dispositions,
and similar transactions (A) In general.--An employer
which fails to meet any applicable requirement by
reason of an acquisition, disposition, or similar
transaction shall not be treated as failing to meet
such requirement during the transition period if--
(i) the employer satisfies
requirements similar to the
requirements of section
410(b)(6)(C)(i)(II); and
(ii) the qualified salary reduction
arrangement maintained by the employer
would satisfy the requirements of this
subsection after the transaction if the
employer which maintained the
arrangement before the transaction had
remained a separate employer.
(B) Applicable requirement.--For purposes of
this paragraph, the term ``applicable
requirement'' means--
(i) the requirement under paragraph
(2)(A)(i) that an employer be an
eligible employer;
(ii) the requirement under paragraph
(2)(D) that an arrangement be the only
plan of an employer; and
(iii) the participation requirements
under paragraph (4).
(C) Transition period.--For purposes of this
paragraph, the term ``transition period'' means
the period beginning on the date of any
transaction described in subparagraph (A) and
ending on the last day of the second calendar
year following the calendar year in which such
transaction occurs.
(q) Deemed Iras Under Qualified Employer Plans.--
(1) General rule.--If--
(A) a qualified employer plan elects to allow
employees to make voluntary employee
contributions to a separate account or annuity
established under the plan, and
(B) under the terms of the qualified employer
plan, such account or annuity meets the
applicable requirements of this section or
section 408A for an individual retirement
account or annuity,
then such account or annuity shall be treated for
purposes of this title in the same manner as an
individual retirement plan and not as a qualified
employer plan (and contributions to such account or
annuity as contributions to an individual retirement
plan and not to the qualified employer plan). For
purposes of subparagraph (B), the requirements of
subsection (a)(5) shall not apply.
(2) Special rules for qualified employer plans.--For
purposes of this title, a qualified employer plan shall
not fail to meet any requirement of this title solely
by reason of establishing and maintaining a program
described in paragraph (1).
(3) Definitions.--For purposes of this subsection--
(A) Qualified employer plan.--The term
``qualified employer plan'' has the meaning
given such term by section 72(p)(4)(A)(i);
except that such term shall also include an
eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).
(B) Voluntary employee contribution.--The
term ``voluntary employee contribution'' means
any contribution (other than a mandatory
contribution within the meaning of section
411(c)(2)(C))--
(i) which is made by an individual as
an employee under a qualified employer
plan which allows employees to elect to
make contributions described in
paragraph (1), and
(ii) with respect to which the
individual has designated the
contribution as a contribution to which
this subsection applies.
(r) Cross References.--
(1) For tax on excess contributions in individual
retirement accounts or annuities, see section 4963.
(2) For tax on certain accumulations in individual
retirement accounts or annuities, see section 4974.
* * * * * * *
VII. DISSENTING VIEWS
The seven bills approved by the Republicans at the markup
would add more than $93 billion to the deficit--and if history
is our guide, this is merely the start of the approach the
Republicans embraced last Congress. In the 113th Congress, Ways
and Means Committee Republicans approved $825 billion worth of
deficit-financed, permanent tax cuts. The bills marked up by
the Committee set us down a partisan path, when we should be
embracing bipartisanship and working in a responsible,
bipartisan manner on tax reform.
Even though some of these bills were introduced
individually with some bipartisan support, the opposition to
these bills is based on the position that these tax provisions
should not be made permanent by adding to the deficit without
any revenue offset. Our nation's food banks play a vital role
in feeding some of America's most vulnerable people, this fact
is undeniable. But the approach that the Committee Republicans
are taking with respect to this and other important legislation
undermines the bipartisan support that the provisions enjoy.
Indeed, this provision was not included in the Republican tax
reform plan introduced by the Ways and Means Committee Chairman
last Congress. The American people expect a tax code that
maintains and supports our shared priorities, and each time the
Committee considers these bills in a piecemeal approach, it is
taking a step in the wrong direction and away from
comprehensive tax reform.
We all support the good works of the charitable community
and strive to provide charities with the resources they need to
carry out their charitable mission. The markup was not to
debate the good works of charities or charitable giving across
this country, or the merits of H.R. 637, which would make
permanent provisions that allow for tax-free distributions from
IRAs for charitable purposes.
Finally, we also oppose the manner in which Republicans
were proceeding--selecting seven provisions to make permanent
at a cost of nearly $100 billion without any offset from the
approximately 60 tax provisions that expired at the end of last
year. This approach is both fiscally irresponsible and contrary
to the goals of bipartisan, comprehensive tax reform.
Expired provisions must be dealt with in a comprehensive
manner. The Republicans did not take up other tax extenders
that also are important to Democratic Committee Members. Left
to an uncertain fate are provisions like the Work Opportunity
Tax Credit, the New Markets Tax Credit, and the renewable
energy tax credits, as well as the long-term status of the
Earned Income Tax Credit, the Child Tax Credit, and the
American Opportunity Tax Credit.
Sander M. Levin,
[all]