,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #bdc  ,,in ,,the ,,house ,,of   
,,representatives  ,january #ad1 #bjac  
,mr4 ,ross introduced the following     
bill2 which was referred to the         
,committee on ,ways and ,means1 and in  
addition to the ,committees on          
,oversight and ,government ,reform1     
,house ,administration1 ,rules1 and the 
,budget1 for a period to be subsequently
 determined by the ,speaker1 in each    
case for consideration of such          
provisions as fall within the           
jurisdiction of the committee concerned 
,a ,,bill  ,to adopt the seven immediate
 reforms recommended by the ,national   
,commission on ,fiscal ,responsibility  
and ,reform to reduce spending and make 
the ,federal ,government more efficient4
  #a4 ,short title2 table of contents   
7a7 ,in general ,this ,act may be cited 
as the ,bowles-,simpson ,plan of        
,lowering ,america's ,debt ,act4  7b7   
,table of contents ,the table of        
contents for this ,act is as follows3   

,sec4 #a4 ,short title2 table of        
contents4 ,title ,i--,reduced           
expenditures ,sec4 #aja4 ,reduction in  
appropriations to the ,white ,house and 
,congress4 ,sec4 #ajb4 ,denial of       
certain annual pay adjustments for      
,members of ,congress4 ,sec4 #ajc4 ,pay 
freeze for ,federal employees4 ,sec4    
#ajd4 ,reduction in ,federal workforce4 
,sec4 #aje4 ,reduction in ,government   
travel costs4 ,sec4 #ajf4 ,limitation on
 ,government printing costs4 ,sec4 #ajg4
 ,reduction in ,federal vehicle costs4  
,sec4 #ajh4 ,sale of excess ,federal    
property4 ,sec4 #aji4 ,prohibition on   
earmarks4 ,title ,,ii--,tax ,reform     
,sec4 #bjj4 ,amendment of #aihf ,code4  
,subtitle ,a--,tax rates ,sec4 #bja4    
,individual rates4 ,sec4 #bjb4 ,repeal  
of alternative minimum tax on           
individuals4 ,sec4 #bjc4 ,permanent     
repeal of personal exemption phaseout4  
,sec4 #bjd4 ,permanent repeal of        
phaseout of overall limitation on       
itemized deductions4 ,sec4 #bje4        

,corporate income tax rate reduced to   
flat rate of #bj percent4 ,sec4 #bjf4   
,renewed temporary dividends received   
deduction4 ,subtitle ,b--,elimination of
 tax expenditures ,sec4 #baa4           
,termination of credit for increasing   
research activities4 ,sec4 #bab4        
,termination of deduction for intangible
 drilling and development costs4 ,sec4  
#bac4 ,repeal of domestic production    
activities deduction with respect to    
production of coal1 lignite1 or oil     
shale4 ,sec4 #bad4 ,repeal percentage   
depletion for oil and natural gas wells4
 ,sec4 #bae4 ,termination of credit for 
electricity produced from certain       
renewable resources4 ,sec4 #baf4        
,termination of energy credit4 ,sec4    
#bag4 ,repeal of credit for alcohol used
 as fuel4 ,sec4 #bah4 ,repeal of credit 
for alcohol fuel1 biodiesel1 and        
alternative fuel mixtures4 ,sec4 #bai4  
,repeal of credit for biodiesel and     
renewable diesel used as fuel4 ,sec4    
#bbj4 ,repeal of credit for certain     

plug-in electric vehicles4 ,sec4 #bba4  
,early termination of credit for        
qualified fuel cell motor vehicles4     
,sec4 #bbb4 ,repeal of deduction for    
energy conservation subsidies provided  
by public utilities4 ,sec4 #bbc4 ,repeal
 of qualifying advanced coal project    
credit4 ,sec4 #bbd4 ,repeal of          
qualifying gasification project credit4 
,sec4 #bbe4 ,repeal of special allowance
 for cellulosic biofuel plant property4 
,sec4 #bbf4 ,repeal of election to      
expense certain refineries4 ,sec4 #bbg4 
,repeal of #b-year amortization of      
geological and geophysical expenditures4
 ,sec4 #bbh4 ,repeal of deduction for   
energy efficient commercial building    
property4 ,sec4 #bbi4 ,repeal of credit 
for construction of new energy efficient
 homes4 ,sec4 #bcj4 ,repeal of credit   
for energy efficient appliances4 ,sec4  
#bca4 ,repeal of credit for residential 
energy efficient property4 ,sec4 #bcb4  
,repeal of advanced energy project      
credit4 ,sec4 #bcc4 ,repeal of credit   

for carbon dioxide sequestration4 ,sec4 
#bcd4 ,repeal of low-income housing     
credit4 ,sec4 #bce4 ,repeal of ,hope and
 ,lifetime ,learning ,credits4 ,sec4    
#bcf4 ,repeal of work opportunity tax   
credit4 ,sec4 #bcg4 ,repeal of credit   
for expenses for household and dependent
 care services necessary for gainful    
employment4 ,sec4 #bch4 ,repeal of      
credit for adoption expenses4 ,sec4     
#bci4 ,repeal of credit for expenditures
 to provide access to disabled          
individuals4 ,sec4 #bdj4 ,repeal of     
earned income tax credit4 ,sec4 #bda4   
,repeal of energy conservation subsidies
 provided by public utilities4 ,sec4    
#bdb4 ,repeal of election to expense    
certain refinery property4 ,sec4 #bdc4  
,repeal of deduction for endangered     
species recovery expenditures4 ,sec4    
#bdd4 ,repeal of exclusion of           
cancellation of indebtedness income of  
solvent farmers4 ,sec4 #bde4 ,repeal of 
alternative minimum tax treatment of    
certain property and casualty insurance 

companies4 ,sec4 #bdf4 ,repeal of small 
life insurance company deduction4 ,sec4 
#bdg4 ,termination of #be1jjj exemption 
from passive loss rules for rental real 
estate activities4 ,sec4 #bdh4 ,repeal  
of discharge of indebtedness exclusion4 
,sec4 #bdi4 ,repeal of certain          
exceptions for imputed interest rules4  
,sec4 #bej4 ,termination of partial     
exclusion for gain from certain small   
business stock4 ,sec4 #bea4 ,termination
 of treatment of losses on small        
business stock as ordinary4 ,sec4 #beb4 
,repeal of student loan interest        
deduction4 ,sec4 #bec4 ,repeal of       
deduction of tuition and related        
expenses4 ,sec4 #bed4 ,repeal of gross  
income exclusion for ,united ,states    
savings bonds used to pay higher        
education expenses4 ,sec4 #bee4         
,elimination of personal exemption for  
students age #ai and older4 ,sec4 #bef4 
,elimination of above the line deduction
 for certain expenses of elementary and 
secondary school teachers4 ,sec4 #beg4  

,elimination of gross income exclusion  
for discharge of certain student loan   
debt4 ,sec4 #beh4 ,repeal of exclusion  
from gross income for rental value of   
parsonages4 ,sec4 #bei4 ,repeal of      
exclusion from gross income for benefits
 provided to volunteer firefighters and 
emergency medical responders4 ,sec4     
#bfj4 ,repeal of special treatment of   
,blue ,cross and ,blue ,shield          
organizations1 etc4 ,sec4 #bfa4 ,sense  
of the ,house regarding a territorial   
tax system4 ,subtitle ,c--,phaseout of  
,tax ,expenditures ,sec4 #bga4          
,five-year phaseout of certain tax      
expenditures4 ,subtitle ,d--,special    
,status ,sec4 #cha4 ,termination of     
qualified energy conservation bonds4    
,sec4 #chb4 ,termination of new clean   
renewable energy bonds4 ,sec4 #chc4     
,termination of exempt facility bond    
treatment for water1 sewage1 and solid  
waste facilities4 ,sec4 #chd4           
,termination of expensing and           
amortization of reforestation           

expenditures and expensing of           
timber-growing costs4 ,sec4 #che4       
,termination of deferral of gain on     
sales of stock in agricultural refiners 
and processors to eligible farm         
cooperatives4 ,sec4 #chf4 ,termination  
of election to expense certain          
depreciable business assets4 ,sec4 #chg4
 ,termination of qualified small issue  
bonds4 ,sec4 #chh4 ,termination of      
exempt facility bond treatment for      
qualified highway or surface freight    
transfer facilities4 ,sec4 #chi4        
,termination of exempt facility bond    
treatment for airports1 docks1 and      
wharves4 ,sec4 #cij4 ,termination of    
tribal economic development bonds4 ,sec4
 #cia4 ,termination of exclusion from   
gross income of ,united ,states savings 
bonds interest used to pay higher       
education expenses4 ,sec4 #cib4         
,termination of qualified zone academy  
bonds4 ,sec4 #cic4 ,termination of      
exempt facility bond treatment for      
qualified public educational facilities4

 ,sec4 #cid4 ,termination of hospital   
bonds4  ,i ,reduced expenditures  #aja4 
,reduction in appropriations to the     
,white ,house and ,congress  7a7        
,appropriations to the ,white ,house    
,notwithstanding any other provision of 
law1 the total amount of funds          
appropriated to the appropriations      
account under the heading ,the ,white   
,house under the heading ,,executive    
,,office ,,of ,,the ,,president ,,and   
,,funds ,,appropriated ,,to ,,the       
,,president for each of fiscal years    
#bjad through #bjah may not exceed #he  
percent of the total amount of funds    
appropriated to that account for fiscal 
year #bjac4  7b7 ,appropriations to     
,congress ,notwithstanding any other    
provision of law1 the total amount of   
funds appropriated under the headings   
,,senate and ,,house ,,of               
,,representatives for each of fiscal    
years #bjad through #bjah may not exceed
 #he percent of the total amount of     
funds appropriated under those headings 

for fiscal year #bjac4  #ajb4 ,denial of
 certain annual pay adjustments for     
,members of ,congress ,notwithstanding  
any other provision of law1 no          
adjustment shall be made under section  
#fja7;a7 of the ,legislative            
,reorganization ,act of #aidf 7#b       
,u4,s4,c4 #ca7 during fiscal year #bjad1
 #bjae1 or #bjaf4  #ajc4 ,pay freeze for
 ,federal employees  7a7 ,in general    
,section #adg of the ,continuing        
,appropriations ,act1 #bjaa 7,public    
,law #aaa-bdb2 #e ,u4,s4,c4 #ecjc note71
 as amended by section #aad7;a7 of the  
,continuing ,appropriations ,resolution1
 #bjac 7,public ,law #aab-age2 #abf     
,stat4 #acaf7 is amended--  7#a7 in     
subsection 7b77#a71 by striking the     
matter after ending on and before shall 
be made and inserting ,december #ca1    
#bjae2 and  7#b7 in subsection 7c71 by  
striking the matter after ending on and 
before no senior executive and inserting
 ,december #ca1 #bjae4  7b7 ,elimination
 of delayed adjustment ,section #aad7;b7

 of the ,continuing ,appropriations     
,resolution1 #bjac is repealed4  #ajd4  
,reduction in ,federal workforce  7a7   
,definition ,for the purpose of this    
section--  7#a7 the term total number of
 ,federal employees means the total     
number of ,federal employees in all     
agencies2  7#b7 the term ,federal       
employee means an employee as defined by
 section #baje of title #e1 ,united     
,states ,code2 and  7#c7 the term agency
 means an ,executive agency as defined  
by section #aje of title #e1 ,united    
,states ,code1 excluding the ,government
 ,accountability ,office4  7b7          
,limitation ,the ,president1 through the
 ,office of ,management and ,budget 7in 
consultation with the ,office of        
,personnel ,management71 shall take     
appropriate measures to ensure that1    
effective beginning in fiscal year      
#bjag1 the total number of ,federal     
employees 7as determined under          
subsection 7c77 shall not exceed #ij    
percent of the total number of ,federal 

employees as of ,september #cj1 #bjac   
7as so determined74  7c7 ,monitoring and
 notification ,the ,office of           
,management and ,budget 7in consultation
 with the ,office of ,personnel         
,management7--  7#a7 shall continuously 
monitor all agencies and make a         
determination1 as of ,september #cj1    
#bjac1 and the last day of each quarter 
of each fiscal year beginning           
thereafter1 as to whether or not the    
total number of ,federal employees      
exceeds the maximum number allowable    
under subsection 7b72 and  7#b7 whenever
 a determination under paragraph 7#a7 is
 made that the total number of ,federal 
employees exceeds the maximum number    
allowable under subsection 7b71 shall   
provide written notice to that effect to
 the ,president and ,congress within #ad
 days after the last day of the quarter 
to which such determination relates4    
7d7 ,compliance ,whenever1 with respect 
to the quarter ending on ,september #cj1
 #bjaf1 or any subsequent quarter1 the  

,office of ,management and ,budget      
provides written notice under subsection
 7c77#b7 that the total number of       
,federal employees exceeds the maximum  
number allowable under subsection 7b71  
no agency may thereafter appoint any    
employee to fill any vacancy within such
 agency until the ,office of ,management
 and ,budget provides written notice to 
the ,president and ,congress of a       
determination under subsection 7c77#a7  
that the total number of ,federal       
employees no longer exceeds the maximum 
number allowable under subsection 7b74  
,any notice under the preceding sentence
 shall be provided within #ad days after
 the last day of the quarter to which   
the determination relates4  7e7 ,waiver 
7#a7 ,emergencies ,this section may be  
waived upon a determination by the      
,president that--  7,a7 the existence of
 a state of war or other national       
security concern so requires2 or  7,b7  
the existence of an extraordinary       
emergency threatening life1 health1     

public safety1 property1 or the         
environment so requires4  7#b7 ,agency  
efficiency or critical mission ,this    
section may be waived1 with respect to a
 particular position or category of     
positions in an agency1 upon a          
determination by the ,president that the
 efficiency of the agency or the        
performance of a critical agency mission
 so requires4  7f7 ,replacement rate ,to
 the extent necessary to achieve the    
workforce reduction required by         
subsection 7b71 the ,office of          
,management and ,budget 7in consultation
 with the ,office of ,personnel         
,management7 shall take appropriate     
measures to ensure that agencies shall  
appoint no more than #a employee for    
every #c employees retiring or otherwise
 separating from ,government service    
after the date of the enactment of this 
,act4 ,this subsection shall cease to   
apply after ,september #cj1 #bjaf4  7g7 
,counting rule ,for purposes of this    
section1 any determination of the number

 of employees in an agency shall be     
expressed on a full-time equivalent     
basis4  7h7 ,limitation on procurement  
of service contracts ,the ,president1   
through the ,office of ,management and  
,budget 7in consultation with the       
,office of ,personnel ,management71     
shall take appropriate measures to      
ensure that there is no increase in the 
procurement of service contracts by     
reason of the enactment of this ,act1   
except in cases in which a cost         
comparison demonstrates that such       
contracts would be to the financial     
advantage of the ,government4  #aje4    
,reduction in ,government travel costs  
7a7 ,definition ,in this section1 the   
term agency means an executive agency as
 defined under section #aje of title #e1
 ,united ,states ,code4  7b7 ,reduction 
,notwithstanding any other provision of 
law1 the total amount of funds          
appropriated to the appropriations      
account providing for travel expenses   
for each agency for each of fiscal years

 #bjad1 #bjae1 #bjaf1 #bjag1 and #bjah  
may not exceed #hj percent of the total 
amount of funds appropriated to each of 
those appropriations accounts for fiscal
 year #bjac4  #ajf4 ,limitation on      
,government printing costs ,not later   
than #ahj days after the date of        
enactment of this ,act1 the ,director of
 the ,office of ,management and ,budget 
shall coordinate with the heads of      
,federal departments and independent    
agencies to--  7#a7 determine which     
,government publications could be       
available on ,government websites and no
 longer printed and to devise a strategy
 to reduce overall ,government printing 
costs over the #aj-year period beginning
 with fiscal year #bjad1 except that the
 ,director shall ensure that essential  
printed documents prepared for social   
security recipients1 medicare           
beneficiaries1 and other populations in 
areas with limited internet access or   
use continue to remain available2  7#b7 
establish government-wide ,federal      

guidelines on employee printing2  7#c7  
issue on the ,office of ,management and 
,budget's public website the results of 
a cost-benefit analysis on implementing 
a digital signature system and on       
establishing employee printing          
identification systems1 such as the use 
of individual employee cards or codes1  
to monitor the amount of printing done  
by ,federal employees2 except that the  
,director of the ,office of ,management 
and ,budget shall ensure that ,federal  
employee printing costs unrelated to    
national defense1 homeland security1    
border security1 national disasters1 and
 other emergencies do not exceed        
#hfj1jjj1jjj annually2 and  7#d7 issue  
guidelines requiring every department1  
agency1 commission or office to list at 
a prominent place near the beginning of 
each publication distributed to the     
public and issued or paid for by the    
,federal ,government--  7,a7 the name of
 the issuing agency1 department1        
commission or office2  7,b7 the total   

number of copies of the document        
printed2  7,c7 the collective cost of   
producing and printing all of the copies
 of the document2 and  7,d7 the name of 
the firm publishing the document4  #ajg4
 ,reduction in ,federal vehicle costs   
,notwithstanding any other provision of 
law1 for fiscal year #bjad and each     
fiscal year thereafter1 the amount made 
available to the ,general ,services     
,administration for the acquisition of  
new vehicles for the ,federal fleet     
shall not exceed an amount equal to #hj 
percent of the amount made available for
 the acquisition of those vehicles for  
fiscal year #bjab4  #ajh4 ,sale of      
excess ,federal property  7a7 ,in       
general ,chapter #e of subtitle ,i of   
title #dj1 ,united ,states ,code1 is    
amended by adding at the end the        
following3  ,,vii ,expedited disposal of
 real property  #fba4 ,definitions ,in  
this subchapter3  7#a7 ,director ,the   
term ,director means the ,director of   
the ,office of ,management and ,budget4 

7#b7 ,landholding agency ,the term      
landholding agency means a landholding  
agency 7as defined in section #eja7;i7  
of the ,mc,kinney-,vento ,homeless      
,assistance ,act 7#db ,u4,s4,c4         
#aadaa7;i7774  7#c7 ,real property  7,a7
 ,in general ,the term real property    
means--  7i7 a parcel of real property  
under the administrative jurisdiction of
 the ,federal ,government that is--     
7,i7 excess2  7,,ii7 surplus2  7,,iii7  
underperforming2 or  7,,iv7 otherwise   
not meeting the needs of the ,federal   
,government1 as determined by the       
,director2 and  7ii7 a building or other
 structure located on real property     
described in clause 7i74  7,b7          
,exclusion ,the term real property      
excludes any parcel of real property1   
and any building or other structure     
located on real property1 that is to be 
closed or realigned under the ,defense  
,authorization ,amendments and ,base    
,closure and ,realignment ,act 7#aj     
,u4,s4,c4 #bfhg note2 ,public ,law      

#ajj-ebf74  #fbb4 ,disposal program  7a7
 ,in general ,except as provided in     
subsection 7e71 the ,director shall1 by 
sale or auction1 dispose of a quantity  
of real property with an aggregate value
 of not less than #ajj1jjj1jjj that1 as 
determined by the ,director1 is not     
being used1 and will not be used1 to    
meet the needs of the ,federal          
,government for the period of fiscal    
years #bjad through #bjai4  7b7         
,recommendations ,the head of each      
landholding agency shall recommend to   
the ,director real property for disposal
 under subsection 7a74  7c7 ,selection  
of properties ,after receiving          
recommendations of candidate real       
property under subsection 7b71 the      
,director--  7#a7 with the concurrence  
of the head of each landholding agency1 
may select the real property for        
disposal under subsection 7a72 and  7#b7
 shall notify the recommending          
landholding agency head of the selection
 of the real property4  7d7 ,website    

,the ,director shall ensure that all    
real properties selected for disposal   
under this section are listed on a      
website that shall--  7#a7 be updated   
routinely2 and  7#b7 include the        
functionality to allow any member of the
 public1 at the option of the member1 to
 receive updates of the list through    
electronic mail4  7e7 ,transfer of      
property ,the ,director may transfer    
real property selected for disposal     
under this section to the ,department of
 ,housing and ,urban ,development if the
 ,secretary of ,housing and ,urban      
,development determines that the real   
property is suitable for use in         
assisting the homeless4  4  7b7         
,technical and ,conforming ,amendment   
,the table of sections for chapter #e of
 subtitle ,i of title #dj1 ,united      
,states ,code1 is amended by inserting  
after the item relating to section #faa 
the following3  ,,subchapter            
,,vii--,expedited disposal of real      
property ,sec4 #fba4 ,definitions4 ,sec4

 #fbb4 ,disposal program4  4  #aji4     
,prohibition on earmarks ,section #cab  
of the ,congressional ,budget ,act of   
#aigd is amended by inserting at the end
 the following3  7g7 ,prohibition on    
earmarks  7#a7 ,bills and joint         
resolutions  7,a7 ,in general ,it shall 
not be in order in the ,senate or the   
,house of ,representatives to consider a
 bill1 resolution1 or amendment that    
includes an earmark1 limited tax        
benefit1 or limited tariff benefit4     
7,b7 ,procedure ,in the ,senate1 a point
 of order under this paragraph may be   
raised by a ,senator as provided in     
section #cac7;e7 of the ,congressional  
,budget ,act of #aigd4  7#b7 ,conference
 report  7,a7 ,in general ,it shall not 
be in order in the ,senate or the ,house
 of ,representatives to vote on the     
adoption of a report of a committee of  
conference if the report includes an    
earmark1 limited tax benefit1 or limited
 tariff benefit4  7,b7 ,procedure ,when 
the ,senate is considering a conference 

report on1 or an amendment between the  
,houses in relation to1 an appropriation
 ,act1 upon a point of order being made 
by any ,senator pursuant to this        
paragraph1 and such point of order being
 sustained1 such material contained in  
such conference report shall be deemed  
stricken1 and the ,senate shall proceed 
to consider the question of whether the 
,senate shall recede from its amendment 
and concur with a further amendment1 or 
concur in the ,house amendment with a   
further amendment1 as the case may be1  
which further amendment shall consist of
 only that portion of the conference    
report or ,house amendment1 as the case 
may be1 not so stricken4 ,any such      
motion in the ,senate shall be debatable
 under the same conditions as was the   
conference report4 ,in any case in which
 such point of order is sustained       
against a conference report 7or ,senate 
amendment derived from such conference  
report by operation of this subsection71
 no further amendment shall be in order4

  7#c7 ,waiver ,any ,senator may move to
 waive any or all points of order under 
this subsection by an affirmative vote  
of two-thirds of the ,members1 duly     
chosen and sworn4  7#d7 ,definitions    
,for the purpose of this subsection--   
7,a7 the term earmark means a provision 
or report language included primarily at
 the request of a ,senator or ,member of
 the ,house of ,representatives         
providing1 authorizing1 or recommending 
a specific amount of discretionary      
budget authority1 credit authority1 or  
other spending authority for a contract1
 loan1 loan guarantee1 grant1 loan      
authority1 or other expenditure with or 
to an entity1 or targeted to a specific 
,state1 locality or ,congressional      
district1 other than through a statutory
 or administrative formula-driven or    
competitive award process2  7,b7 the    
term limited tax benefit means any      
revenue provision that--  7i7 provides a
 ,federal tax deduction1 credit1        
exclusion1 or preference to a particular

 beneficiary or limited group of        
beneficiaries under the ,internal       
,revenue ,code of #aihf2 and  7ii7      
contains eligibility criteria that are  
not uniform in application with respect 
to potential beneficiaries of such      
provision2 and  7,c7 the term limited   
tariff benefit means a provision        
modifying the ,harmonized ,tariff       
,schedule of the ,united ,states in a   
manner that benefits #aj or fewer       
entities4  7#e7 ,application ,this      
subsection shall not apply to any       
authorization of appropriations to a    
,federal entity if such authorization is
 not specifically targeted to a ,state1 
locality or congressional district4  4  
,,ii ,tax ,reform  #bjj4 ,amendment of  
#aihf ,code ,except as otherwise        
expressly provided1 whenever in this    
title an amendment or repeal is         
expressed in terms of an amendment to1  
or repeal of1 a section or other        
provision1 the reference shall be       
considered to be made to a section or   

other provision of the ,internal        
,revenue ,code of #aihf4  ,a ,tax rates 
#bja4 ,individual rates  7a7 ,in general
 ,section #a7;i7 is amended to read as  
follows3  7i7 ,post-#bjab rate table    
7#a7 ,in general ,in the case of taxable
 years beginning after ,december #ca1   
#bjab1 the following table shall apply  
in lieu of the tables under subsections 
7a71 7b71 7c71 7d71 and 7e73  ,if       
taxable income is3,the tax is3  ,not    
over #ajj1jjjaj of taxable income  ,over
 #ajj1jjjaj1jjj1 plus #bj of the excess 
over #ajj1jjj4  7#b7 ,inflation         
adjustment  7,a7 ,in general ,in the    
case of any taxable year beginning after
 #bjac1 the ,secretary shall prescribe1 
in the same manner as under subsection  
7f71 a table which shall apply in lieu  
of the table under paragraph 7#a71      
except that subsection 7f77#c77;,b7     
shall be applied by substituting #bjab  
for #aiib4  4  7b7 ,maximum capital     
gains rate ,paragraph 7#a7 of section   
#a7;h7 is amended to read as follows3   

7#a7 ,in general ,if a taxpayer has a   
net capital gain for any taxable year1  
the tax imposed by this section for such
 taxable year shall not exceed the sum  
of--  7,a7 a tax computed at the rates  
and in the same manner as if this       
subsection had not been enacted on      
taxable income reduced by the net       
capital gain2  7,b7 #j percent of so    
much of the net capital gain as does not
 exceed #a1jjj1jjj2 and  7,c7 #bj       
percent of so much of net capital gain  
as exceeds #a1jjj1jjj4  4  7c7          
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjab4  #bjb4 ,repeal of alternative    
minimum tax on individuals  7a7 ,in     
general ,section #ee7;a7 is amended by  
adding at the end the following new     
flush sentence3  ,for purposes of this  
title1 the tentative minimum tax on any 
taxpayer other than a corporation for   
any taxable year beginning after        
,december #ca1 #bjab1 shall be zero4 4  

7b7 ,effective date ,the amendment made 
by this section shall apply to taxable  
years beginning after ,december #ca1    
#bjab4  #bjc4 ,permanent repeal of      
personal exemption phaseout  7a7 ,in    
general ,section #aea7;d7 is amended by 
striking paragraph 7#c74  7b7 ,effective
 date ,the amendment made by this       
section shall apply to taxable years    
beginning after ,december #ca1 #bjab4   
#bjd4 ,permanent repeal of phaseout of  
overall limitation on itemized          
deductions  7a7 ,in general ,part ,i of 
subchapter ,b of chapter #a is amended  
by striking section #fh 7and the item   
relating to such section in the table of
 sections for such part74  7b7          
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjab4  #bje4 ,corporate income tax rate
 reduced to flat rate of #bj percent    
7a7 ,in general ,paragraph 7#a7 of      
section #aa7;b7 is amended by striking  
shall be the sum of-- and all that      

follows through the period at the end   
and inserting shall be #bj percent of   
taxable income44  7b7 ,personal ,service
 ,corporations ,paragraph 7#b7 of       
section #aa7;b7 is amended by striking  
#ce percent and inserting #bj percent4  
7c7 ,conforming ,amendments  7#a7       
,subsection 7a7 of section #abja is     
amended--  7,a7 by striking #ce percent 
7determined without regard to the last  
#b sentences of section #aa7;b77 and    
inserting #bj percent1 and  7,b7 by     
striking #ce percent each place it      
appears 7other than in the matter       
preceding paragraph 7#a77 and inserting 
#bj percent4  7#b7 ,paragraphs 7#a71    
7#b71 and 7#f7 of section #adde7;e7 are 
each amended by striking #ce percent and
 inserting #bj percent4  7d7 ,effective 
date ,the amendments made by this       
section shall apply to taxable years    
beginning after the date of the         
enactment of this ,act4  #bjf4 ,renewed 
temporary dividends received deduction  
7a7 ,election ,subsection 7f7 of section

 #ife is amended to read as follows3    
7f7 ,election ,the taxpayer may elect to
 apply this section to--  7#a7 the      
taxpayer's last taxable year which      
begins before the date of the enactment 
of this subsection1 or  7#b7 the        
taxpayer's first taxable year which     
begins during the #a-year period        
beginning on such date4  ,such election 
may be made for a taxable year only if  
made on or before the due date          
7including extensions7 for filing the   
return of tax for such taxable year4  4 
7b7 ,limitation ,paragraph 7#a7 of      
section #ife7;b7 is amended to read as  
follows3  7#a7 ,in general ,the amount  
of dividends taken into account under   
subsection 7a7 shall not exceed the sum 
of the current and accumulated earnings 
and profits described in section        
#iei7;c77#c7 for the year a deduction is
 claimed under subsection 7a71 without  
diminution by reason of any             
distributions made during the election  
year1 for all controlled foreign        

corporations of the ,united ,states     
shareholder4  4  7c7 ,failure ,to       
maintain employment levels ,paragraph   
7#d7 of section #ife7;b7 is amended to  
read as follows3  7#d7 ,reduction in    
benefits for failure to maintain        
employment levels  7,a7 ,in general ,if1
 during the period consisting of the    
calendar month in which the taxpayer    
first receives a distribution described 
in subsection 7a77#a7 and the succeeding
 #bc calendar months1 the taxpayer does 
not maintain an average employment level
 at least equal to the taxpayer's prior 
average employment1 an additional amount
 equal to #be1jjj multiplied by the     
number of employees by which the        
taxpayer's average employment level     
during such period falls below the prior
 average employment 7but not exceeding  
the aggregate amount allowed as a       
deduction pursuant to subsection        
7a77#a77 shall be taken into income by  
the taxpayer during the taxable year    
that includes the final day of such     

period4  7,b7 ,average employment level 
,for purposes of this paragraph1 the    
taxpayer's average employment level for 
a period shall be the average number of 
full-time ,united ,states employees of  
the taxpayer1 measured at the end of    
each month during the period4  7,c7     
,prior average employment ,for purposes 
of this paragraph1 the taxpayer's prior 
average employment shall be the average 
number of full-time ,united ,states     
employees of the taxpayer during the    
period consisting of the #bd calendar   
months immediately preceding the        
calendar month in which the taxpayer    
first receives a distribution described 
in subsection 7a77#a74  7,d7 ,full-time 
united states employee ,for purposes of 
this paragraph--  7i7 ,in general ,the  
term full-time ,united ,states employee 
means an individual who provides        
services in the ,united ,states as a    
full-time employee1 based on the        
employer's standards and practices2     
except that regardless of the employer's

 classification of the employee1 an     
employee whose normal schedule is #dj   
hours or more per week is considered a  
full-time employee4  7ii7 ,exception for
 changes in ownership of trades or      
businesses ,such term does not include--
  7,i7 any individual who was an        
employee1 on the date of acquisition1 of
 any trade or business acquired by the  
taxpayer during the #bd-month period    
referred to in subparagraph 7,a72 and   
7,,ii7 any individual who was an        
employee of any trade or business       
disposed of by the taxpayer during the  
#bd-month period referred to in         
subparagraph 7,a7 or the #bd-month      
period referred to in subparagraph 7,c74
  7,e7 ,aggregation rules ,in           
determining the taxpayer's average      
employment level and prior average      
employment1 all domestic members of a   
controlled group shall be treated as a  
single taxpayer4  4  7d7 ,threshold     
period ,section #ife is amended by      
striking ,june #cj1 #bjjc each place it 

occurs and inserting ,june #cj1 #bjaa4  
7e7 ,base period ,paragraph 7#b7 of     
subsection #ife7;c7 is amended by       
inserting at the end of subparagraph    
7,a7 the following flush sentence3  ,for
 purposes of this paragraph1 taxable    
years shall not include any year for    
which an election under section #ife was
 in effect4 4  7f7 ,indebtedness        
determination date ,subparagraph 7,b7 of
 section #ife7;b77#c7 is amended by     
striking ,october #c1 #bjjd and         
inserting ,january #ai1 #bjab4  7g7     
,conforming amendments  7#a7 ,subsection
 #ife7;c71 as amended by subsection 7e71
 is amended by striking paragraph 7#a7  
and redesignating paragraphs 7#b71 7#c71
 7#d71 and 7#e7 as paragraphs 7#a71     
7#b71 7#c71 and 7#d71 respectively4     
7#b7 ,paragraph #ife7;c77#d71 as        
redesignated by paragraph 7#a71 is      
amended to read as follows3  7#d7       
,controlled groups ,all ,united ,states 
shareholders which are members of an    
affiliated group filing a consolidated  

return under section #aeja shall be     
treated as one ,united ,states          
shareholder4  4  7h7 ,effective date    
,the amendments made by this section    
shall apply to taxable years ending on  
or after the date of the enactment of   
this ,act4  ,b ,elimination of tax      
expenditures  #baa4 ,termination of     
credit for increasing research          
activities ,effective for taxable years 
beginning after the date of the         
enactment of this ,act1 section #da is  
hereby repealed4  #bab4 ,termination of 
deduction for intangible drilling and   
development costs  7a7 ,in general      
,section #bfc7;c7 is amended by adding  
at the end the following new sentence3  
,this subsection shall not apply to any 
taxable year beginning after the date of
 the enactment of this sentence44  7b7  
,conforming amendments ,paragraphs 7#b7 
and 7#c7 of section #bia7;b7 are each   
amended by striking section #bfc7;c71   
#faf7;a71 and inserting section         
#faf7;a74  7c7 ,effective date ,the     

amendments made by this section shall   
apply to costs paid or incurred in      
taxable years beginning after the date  
of the enactment of this ,act4  #bac4   
,repeal of domestic production          
activities deduction with respect to    
production of coal1 lignite1 or oil     
shale  7a7 ,in general ,subparagraph    
7,b7 of section #aii7;c77#d71 as amended
 by this ,act1 is amended by striking or
 at the end of clause 7iii71 by striking
 the period at the end of clause 7iv7   
and inserting 1 or1 and by adding at the
 end the following new clause3  7v7 the 
lease1 rental1 license1 sale1 exchange1 
or other disposition of coal1 lignite1  
or oil shale4  4  7b7 ,effective date   
,the amendments made by this section    
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  #bad4 ,repeal percentage         
depletion for oil and natural gas wells 
7a7 ,in general ,section #fac;,a is     
amended by adding at the end the        
following new subsection3  7f7          

,termination ,after the date of the     
enactment of the ,bowles-,simpson ,plan 
of ,lowering ,america's ,debt ,act1 this
 section and section #faa shall not     
apply to any oil or gas well4  4  7b7   
,conforming amendment ,section          
#fac;,a7c77#a7 is amended by striking   
subsection 7d7 and inserting subsections
 7d7 and 7f74  7c7 ,effective date ,the 
amendments made by this section shall   
apply to taxable years beginning after  
the date of the enactment of this ,act4 
#bae4 ,termination of credit for        
electricity produced from certain       
renewable resources ,effective for      
property placed in service after the    
date of the enactment of this ,act1     
section #de is repealed4  #baf4         
,termination of energy credit ,effective
 for property placed in service after   
the date of the enactment of this ,act1 
section #dh is repealed4  #bag4 ,repeal 
of credit for alcohol used as fuel      
,effective for fuel sold or used after  
the date of the enactment of this ,act1 

section #dj is repealed4  #bah4 ,repeal 
of credit for alcohol fuel1 biodiesel1  
and alternative fuel mixtures ,effective
 for fuel sold and used after the date  
of the enactment of this ,act1 section  
#fdbf is repealed4  #bai4 ,repeal of    
credit for biodiesel and renewable      
diesel used as fuel ,effective for fuel 
produced1 and sold or used1 after the   
date of the enactment of this ,act1     
section #dj;,a is repealed4  #bbj4      
,repeal of credit for certain plug-in   
electric vehicles ,effective for        
property placed in service after the    
date of the enactment of this ,act1     
section #cj is repealed4  #bba4 ,early  
termination of credit for qualified fuel
 cell motor vehicles ,effective for     
property placed in service after the    
date of the enactment of this ,act1     
section #cj;,b is repealed4  #bbb4      
,repeal of deduction for energy         
conservation subsidies provided by      
public utilities ,effective for amounts 
received after the date of the enactment

 of this ,act1 section #acf is repealed4
  #bbc4 ,repeal of qualifying advanced  
coal project credit ,effective for      
taxable years beginning after the date  
of the enactment of this ,act1 section  
#dh;,a is repealed4  #bbd4 ,repeal of   
qualifying gasification project credit  
,effective for taxable years beginning  
after the date of the enactment of this 
,act1 section #dh;,b is repealed4  #bbe4
 ,repeal of special allowance for       
cellulosic biofuel plant property  7a7  
,in general ,section #afh is amended by 
striking subsection 7l74  7b7 ,effective
 date ,the amendment made by this       
section shall apply to property placed  
in service after the date of the        
enactment of this ,act4  #bbf4 ,repeal  
of election to expense certain          
refineries ,effective for property      
placed in service after the date of the 
enactment of this ,act1 section #agi;,c 
is repealed4  #bbg4 ,repeal of #b-year  
amortization of geological and          
geophysical expenditures  7a7 ,in       

general ,paragraphs 7#a7 and 7#d7 of    
section #afg7;h7 are each amended by    
striking #bd-month and inserting        
#g-year4  7b7 ,conforming amendment     
,subsection 7h7 of section #afg is      
amended by striking paragraph 7#e74  7c7
 ,effective date ,the amendments made by
 this section shall apply to property   
placed in service after the date of the 
enactment of this ,act4  #bbh4 ,repeal  
of deduction for energy efficient       
commercial building property ,effective 
for property placed in service after the
 date of the enactment of this ,act1    
section #agi;,d is repealed4  #bbi4     
,repeal of credit for construction of   
new energy efficient homes ,effective   
for homes acquired after the date of the
 enactment of this ,act1 section #de,l  
is repealed4  #bcj4 ,repeal of credit   
for energy efficient appliances         
,effective for property placed in       
service after the date of the enactment 
of this ,act1 section #be;,c is         
repealed4  #bca4 ,repeal of credit for  

residential energy efficient property   
,effective for property placed in       
service after the date of the enactment 
of this ,act1 section #be;,d is         
repealed4  #bcb4 ,repeal of advanced    
energy project credit ,effective for    
property placed in service after the    
date of the enactment of this ,act1     
section #dh;,c is repealed4  #bcc4      
,repeal of credit for carbon dioxide    
sequestration ,effective for carbon     
dioxide captured after the date of the  
enactment of this ,act1 section #de,q is
 repealed4  #bcd4 ,repeal of low-income 
housing credit ,effective for property  
placed in service after the date of the 
enactment of this ,act1 section #db is  
repealed4  #bce4 ,repeal of ,hope and   
,lifetime ,learning ,credits ,effective 
for amounts paid or incurred after the  
date of the enactment of this ,act1     
section #be;,a is repealed4  #bcf4      
,repeal of work opportunity tax credit  
,effective for wages paid after the date
 of the enactment of this ,act1 section 

#ea is repealed4  #bcg4 ,repeal of      
credit for expenses for household and   
dependent care services necessary for   
gainful employment ,effective for       
expenses paid after the date of the     
enactment of this ,act1 section #ba is  
repealed4  #bch4 ,repeal of credit for  
adoption expenses ,effective for        
expenses paid or incurred after the date
 of the enactment of this ,act1 section 
#bc is repealed4  #bci4 ,repeal of      
credit for expenditures to provide      
access to disabled individuals          
,effective for expenditures paid or     
incurred after the date of the enactment
 of this ,act1 section #dd is repealed4 
#bdj4 ,repeal of earned income tax      
credit ,effective for taxable years     
beginning after the date of the         
enactment of this ,act1 section #cb is  
repealed4  #bda4 ,repeal of energy      
conservation subsidies provided by      
public utilities ,effective for amounts 
received after the date of the enactment
 of this ,act1 section #acf is repealed4

  #bdb4 ,repeal of election to expense  
certain refinery property ,effective for
 property placed in service after the   
date of the enactment of this ,act1     
sections #afh7l7 and #agi;,c are        
repealed4  #bdc4 ,repeal of deduction   
for endangered species recovery         
expenditures  7a7 ,in general           
,subsections 7a7 and 7c77#a7 of section 
#age are each amended by striking 1 or  
for endangered species recovery4  7b7   
,conforming amendments  7#a7 ,the       
heading for section #age is amended by  
striking 2 endangered species recovery  
expenditures4  7#b7 ,paragraph 7#a7 of  
section #age7;c7 is amended by striking 
the second sentence4  7#c7 ,subparagraph
 7,a7 of section #age7;c77#c7 is        
amended--  7,a7 by striking or the      
recovery plan pursuant to the           
,endangered ,species ,act of #aigc1 and 
7,b7 by striking 1 or endangered species
 recovery plan in the heading thereof4  
7c7 ,effective date ,the amendments made
 by this section shall apply to         

expenditures paid or incurred after the 
date of the enactment of this ,act4     
#bdd4 ,repeal of exclusion of           
cancellation of indebtedness income of  
solvent farmers  7a7 ,in general        
,paragraph 7#a7 of section #ajh7;a7 is  
amended by striking subparagraph 7,c7   
and by redesignating subparagraphs 7,d7 
and 7,e7 as subparagraphs 7,c7 and 7,d7 
respectively4  7b7 ,conforming          
amendments  7#a7 ,subparagraph 7,a7 of  
section #ajh7;a77#b7 is amended by      
striking 7,d71 and 7,e7 and inserting   
and 7,d74  7#b7 ,subparagraph 7,b7 of   
section #ajh7;a77#b7 is amended--  7,a7 
by striking ,subparagraphs 7,c7 and 7,d7
 and inserting ,subparagraph 7,c71 and  
7,b7 by striking qualified farm         
exclusion and4  7#c7 ,paragraph 7#a7 of 
section #ajh7;b7 is amended by striking 
7,b71 or 7,c7 and inserting or 7,b74    
7#d7 ,subsection 7c7 of section #ajh is 
amended by striking under subparagraph  
7,d7 each place it appears and inserting
 under subparagraph 7,c74  7#e7 ,section

 #ajh is amended by striking subsection 
7g7 and by redesignating subsections 7h7
 and 7i7 as subsections 7g7 and 7h71    
respectively4  7c7 ,effective date ,the 
amendments made by this section shall   
apply to discharges of indebtedness     
after the date of the enactment of this 
,act4  #bde4 ,repeal of alternative     
minimum tax treatment of certain        
property and casualty insurance         
companies  7a7 ,in general ,clause 7i7  
of section #ef7;g77#d77;,b7 is amended  
by striking the last sentence4  7b7     
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after the date of the   
enactment of this ,act4  #bdf4 ,repeal  
of small life insurance company         
deduction  7a7 ,in general ,section #hjf
 is repealed4  7b7 ,conforming          
amendments  7#a7 ,section #hjd is       
amended by striking means-- and all that
 follows through the period at the end  
and inserting the following3 means the  
general deductions provided in section  

#hje44  7#b7 ,subparagraph 7,b7 of      
section #dec;,b7e77#b7 is amended by    
inserting 1 as in effect on the day     
before the date of the enactment of the 
,bowles-,simpson ,plan of ,lowering     
,america's ,debt ,act after section     
#hjf7;b77#c74  7#c7 ,subclause 7,,ii7 of
 section #dfe7;c77#g77;,d77v7 is amended
 by inserting 1 as in effect on the day 
before the date of the enactment of the 
,bowles-,simpson ,plan of ,lowering     
,america's ,debt ,act after section     
#hjf7;b77#c74  7#d7 ,subparagraph 7,a7  
of section #hae7;c77#b7 is amended by   
striking clause 7ii71 by inserting and  
at the end of clause 7i71 and by        
redesignating clause 7iii7 as clause    
7ii74  7c7 ,effective date ,the         
amendments made by this section shall   
apply to taxable years beginning after  
the date of the enactment of this ,act4 
#bdg4 ,termination of #be1jjj exemption 
from passive loss rules for rental real 
estate activities  7a7 ,in general      
,section #dfi is amended by striking    

subsection 7i74  7b7 ,effective date    
,the amendment made by this section     
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  #bdh4 ,repeal of discharge of    
indebtedness exclusion ,effective for   
discharges of indebtedness occurring on 
or after the date of the enactment of   
this ,act1 section #ajh is repealed4    
#bdi4 ,repeal of certain exceptions for 
imputed interest rules  7a7             
,determination of issue price in the    
case of certain debt instruments issued 
for property ,paragraph 7#c7 of section 
#abgd7;c77#c7 is amended by striking    
subparagraphs 7,a71 7,b71 and 7,c74  7b7
 ,special rule for certain transactions 
where stated principal amount does not  
exceed certain amount ,section #abgd;,a 
is amended by adding at the end the     
following new subsection3  7f7          
,termination ,this section shall not    
apply to any sales or exchanges after   
the date of the enactment of this ,act4 
4  7c7 ,effective date ,the amendment   

made by subsection 7a7 shall apply to   
sales or exchanges after the date of the
 enactment of this ,act4  #bej4         
,termination of partial exclusion for   
gain from certain small business stock  
,section #abjb is amended by adding at  
the end the following new subsection3   
7l7 ,termination ,this section shall not
 apply to any sale or exchange of stock 
after the date of the enactment of the  
,bowles-,simpson ,plan of ,lowering     
,america's ,debt ,act4  4  #bea4        
,termination of treatment of losses on  
small business stock as ordinary        
,section #abdd is amended by adding at  
the end the following new subsection3   
7f7 ,termination ,this section shall not
 apply to any sale or exchange of stock 
after the date of the enactment of the  
,bowles-,simpson ,plan of ,lowering     
,america's ,debt ,act4  4  #beb4 ,repeal
 of student loan interest deduction     
,effective for any loan interest paid   
after the date of the enactment of this 
,act1 section #bba is repealed4  #bec4  

,repeal of deduction of tuition and     
related expenses ,effective for amounts 
paid after the date of the enactment of 
this ,act1 section #bbb is repealed4    
#bed4 ,repeal of gross income exclusion 
for ,united ,states savings bonds used  
to pay higher education expenses        
,effective for taxable years beginning  
after the date of the enactment of this 
,act1 section #ace is repealed4  #bee4  
,elimination of personal exemption for  
students age #ai and older  7a7 ,in     
general ,subparagraph 7,a7 of section   
#aeb7;c77#c7 is amended--  7#a7 by      
striking clause 7ii71  7#b7 by striking 
1 or at the end of clause 7i7 and       
inserting a period1 and  7#c7 by        
striking child and and all that follows 
through 7i7 has not attained and        
inserting child and has not attained4   
7b7 ,effective date ,the amendments made
 by this section shall apply to taxable 
years beginning after the date of the   
enactment of this ,act4  #bef4          
,elimination of above the line deduction

 for certain expenses of elementary and 
secondary school teachers  7a7 ,in      
general ,paragraph 7#b7 of section      
#fb7;a7 is amended by striking          
subparagraph 7,d7 and by redesignating  
subparagraph 7,e7 as subparagraph 7,d74 
7b7 ,conforming amendments  7#a7        
,section #fb is amended by striking     
subsection 7d7 and redesignating        
subsection 7e7 as subsection 7d74  7#b7 
,paragraph 7#bj7 of section #fb7;a7 is  
amended by striking subsection 7e7 and  
inserting subsection 7d74  7c7          
,effective date ,the amendments made by 
this section shall apply to amounts paid
 or incurred after the date of the      
enactment of this ,act4  #beg4          
,elimination of gross income exclusion  
for discharge of certain student loan   
debt ,section #ajh is amended by adding 
at the end the following new paragraph3 
7#e7 ,termination ,this subsection shall
 not apply to discharges of indebtedness
 after the date of the enactment of the 
,bowles-,simpson ,plan of ,lowering     

,america's ,debt ,act4  4  #beh4 ,repeal
 of exclusion from gross income for     
rental value of parsonages ,effective   
for taxable years beginning after the   
date of the enactment of this ,act1     
section #ajg is repealed4  #bei4 ,repeal
 of exclusion from gross income for     
benefits provided to volunteer          
firefighters and emergency medical      
responders ,effective for taxable years 
beginning after the date of the         
enactment of this ,act1 section #aci;,b 
is repealed4  #bfj4 ,repeal of special  
treatment of ,blue ,cross and ,blue     
,shield organizations1 etc ,effective   
for taxable years beginning after the   
date of the enactment of this ,act1     
section #hcc is repealed4  #bfa4 ,sense 
of the ,house regarding a territorial   
tax system ,it is the sense of the      
,house that the ,committee on ,ways and 
,means of the ,house of ,representatives
 should report legislation that will    
transition the ,united ,states to a     
territorial tax system4  ,c ,phaseout of

 ,tax ,expenditures  #bga4 ,five-year   
phaseout of certain tax expenditures    
7a7 ,in general ,effective for taxable  
years beginning after ,december #ca1    
#bjab1 the amount allowable as a credit1
 exclusion from gross income1 exemption 
from taxation1 or deduction for the     
taxable year under the tax provisions   
specified in subsection 7c7 7determined 
without regard to this section7 shall be
 reduced by the applicable percentage of
 the amount so allowable4  7b7          
,applicable percentage ,for purposes if 
this section1 the applicable percentage 
shall be determined in accordance with  
the following table3  ,in the case of   
taxable years  beginning in3,the        
applicable percentage shall be3  #bjacbj
  #bjaddj  #bjaefj  #bjafhj  #bjag and  
thereafter#ajj4  7c7 ,specified         
provisions ,for purposes of this        
section1 the tax provisions specified in
 this subsection are as follows3  7#a7  
,section #iaa of the ,internal ,revenue 
,code of #aihf 7relating to citizens or 

residents of the ,united ,states living 
abroad74  7#b7 ,section #iab of such    
,code 7relating to exemption for certain
 allowances74  7#c7 ,section #da of such
 ,code 7relating to credit for          
increasing research activities74  7#d7  
,section #fca7;c7 of such ,code         
7relating to disposal of coal or        
domestic iron ore with a retained       
economic interest74  7#e7 ,section      
#dea7;i7 of such ,code 7relating to     
special rule for sales or dispositions  
to implement ,federal ,energy           
,regulatory ,commission or ,state       
,electric ,restructuring ,policy74  7#f7
 ,section #fac of such ,code 7relating  
to percentage depletion7 in the case of 
nonfuel minerals4  7#g7 ,section        
#fca7;a7 of such ,code 7relating to     
election to consider cutting as sale or 
exchange74  7#h7 ,section #eab7;b77#ai7 
of such ,code 7relating to treatment of 
gain or loss on sale or exchange of     
certain brownfield sites74  7#i7 ,the   
exclusion from gross income of income on

 life insurance contracts 7as determined
 under section #ggjb7;g7 of the         
,internal ,revenue ,code of #aihf74     
7#aj7 ,section #ajc7;a7 of such ,code1  
to the extent the interest is           
attributable to a qualified mortgage    
bond 7as defined in section #adc7;a7 of 
such ,code71 a qualified veterans'      
mortgage bond 7as defined is section    
#adc7;b7 of such ,code71 or an issue    
described in section #adb7;a77#g7 of    
such ,code4  7#aa7 ,section #aii of such
 ,code 7relating to include attributable
 to domestic production activities74    
7#ab7 ,section #aha of such ,code       
7relating to treatment of certain       
qualified film and television           
productions74  7#ac7 ,section #geah of  
such ,code 7relating to tax incentives  
relating to merchant marine capital     
construction funds7 and chapter #ece of 
title #df1 ,united ,states ,code4  7#ad7
 ,section #acb7;a77#e7 of such ,code    
7relating to qualified transportation   
fringe7 to the extent attributable to a 

transit pass 7as defined in section     
#acb7;f77#e7 of such ,code7 or qualified
 parking 7as so defined74  7#ae7        
,section #de;,g7a7 of such ,code        
7relating to railroad track maintenance 
credit74  7#af7 ,section #df7;a7 of such
 ,code 7relating to rehabilitation      
credit74  7#ag7 ,section #de;,d of such 
,code 7relating to new markets tax      
credit74  7#ah7 ,section #aca of such   
,code 7relating to certain foster care  
payments74  7#ai7 ,section #bac of such 
,code 7relating to medical1 dental1     
etc41 payments74  7#bj7 ,section #cf;,b 
of such ,code 7relating to refundable   
credit for coverage under a qualified   
health plan74  7#ba7 ,section #de,r of  
such ,code 7relating to employee health 
insurance expenses of small employers74 
7#bb7 ,section #de;,c of such ,code     
7relating to clinical testing expenses  
for certain drugs for rare diseases or  
conditions74  7#bc7 ,section #ce of such
 ,code 7relating to health insurance    
costs of eligible individuals74  7#bd7  

,means-tested payments otherwise        
excludable under the general welfare    
doctrine4  7#be7 ,section #gi of such   
,code 7relating to group-term life      
insurance purchased for employees74     
7#bf7 ,section #ajf of such ,code       
7relating to contributions by employer  
to accident and health plans7 to the    
extent attributable to employer provided
 coverage under an accident or          
disability insurance plan4  7#bg7       
,section #afe of such ,code 7relating to
 losses7 to the extent the loss is      
described in section #afe7;c77#c7 of    
such ,code4  7#bh7 ,section #afd7;a77#a7
 of such ,code 7relating to real        
property taxes7 to the extent not       
attributable to real property used in a 
trade or business or the principal      
residence of the taxpayer 7within the   
meaning of section #aba of such ,code74 
,d ,special ,status  #cha4 ,termination 
of qualified energy conservation bonds  
,subsection 7a7 of section #ed;,d is    
amended by striking and at the end of   

paragraph 7#b71 by striking the period  
at the end of paragraph 7#c7 and        
inserting 1 and1 and by adding at the   
end the following new paragraph3  7#d7  
the bond is issued before the date of   
the enactment of the ,implementation of 
,simpson-,bowles ,spending ,reductions  
,act of #bjab4  4  #chb4 ,termination of
 new clean renewable energy bonds       
,subsection 7a7 of section #ed;,c is    
amended by striking and at the end of   
paragraph 7#b71 by striking the period  
at the end of paragraph 7#c7 and        
inserting 1 and1 and by adding at the   
end the following new paragraph3  7#d7  
the bond is issued before the date of   
the enactment of the ,implementation of 
,simpson-,bowles ,spending ,reductions  
,act of #bjab4  4  #chc4 ,termination of
 exempt facility bond treatment for     
water1 sewage1 and solid waste          
facilities  7a7 ,in general ,subsection 
7a7 of section #adb is amended by       
striking paragraphs 7#d71 7#e71 and     
7#f74  7b7 ,effective date ,the         

amendments made by this section shall   
apply to bonds issued after the date of 
the enactment of this ,act4  #chd4      
,termination of expensing and           
amortization of reforestation           
expenditures and expensing of           
timber-growing costs  7a7 ,reforestation
 expenditures ,section #aid is amended  
by adding at the end the following new  
subsection3  7e7 ,termination ,this     
section shall not apply to amount paid  
or incurred after the date of the       
enactment of the ,implementation of     
,simpson-,bowles ,spending ,reductions  
,act of #bjab4  4  7b7 ,expensing of    
timber growing costs ,subsection 7c7 of 
section #bfc;,a is amended by striking  
paragraph 7#e74  7c7 ,effective date    
,the amendment made by this section     
shall apply to expenses paid or incurred
 after the date of the enactment of this
 ,act4  #che4 ,termination of deferral  
of gain on sales of stock in            
agricultural refiners and processors to 
eligible farm cooperatives ,subsection  

7g7 of section #ajdb is amended by      
adding at the end the following new     
paragraph3  7#e7 ,termination ,this     
subsection shall not apply to any sales 
after the date of the enactment of the  
,implementation of ,simpson-,bowles     
,spending ,reductions ,act of #bjab4  4 
#chf4 ,termination of election to       
expense certain depreciable business    
assets  7a7 ,in general ,subparagraph   
7,d7 of section #agi7;b77#a7 is amended 
by striking #be1jjj and inserting #j4   
7b7 ,effective date ,the amendment made 
by this section shall apply to property 
placed in service after ,december #ca1  
#bjab4  #chg4 ,termination of qualified 
small issue bonds ,paragraph 7#a7 of    
section #add7;a7 is amended by inserting
 before the date of the enactment of the
 ,implementation of ,simpson-,bowles    
,spending ,reductions ,act of #bjab     
after any bond issued4  #chh4           
,termination of exempt facility bond    
treatment for qualified highway or      
surface freight transfer facilities  7a7

 ,in general ,subsection 7a7 of section 
#adb is amended by striking paragraph   
7#ae74  7b7 ,effective date ,the        
amendment made by this section shall    
apply to bonds issued after the date of 
the enactment of this ,act4  #chi4      
,termination of exempt facility bond    
treatment for airports1 docks1 and      
wharves  7a7 ,in general ,subsection 7a7
 of section #adb is amended by striking 
paragraphs 7#a7 and 7#b74  7b7          
,effective date ,the amendments made by 
this section shall apply to bonds issued
 after the date of the enactment of this
 ,act4  #cij4 ,termination of tribal    
economic development bonds ,subparagraph
 7,a7 of section #ghga7;f77#c7 is       
amended by inserting before the date of 
the enactment of the ,implementation of 
,simpson-,bowles ,spending ,reductions  
,act of #bjab after any bond issued4    
#cia4 ,termination of exclusion from    
gross income of ,united ,states savings 
bonds interest used to pay higher       
education expenses ,subparagraph 7,a7 of

 section #ace7;c77#a7 is amended by     
inserting and before the date of the    
enactment of the ,implementation of     
,simpson-,bowles ,spending ,reductions  
,act of #bjab after ,december #ca1      
#aihi14  #cib4 ,termination of qualified
 zone academy bonds ,subsection 7a7 of  
section #ed;,e is amended by striking   
and at the end of paragraph 7#b71 by    
striking the period at the end of       
paragraph 7#c71 and inserting 1 and1 and
 by adding at the end the following new 
paragraph3  7#d7 the bond is issued     
before the date of the enactment of the 
,implementation of ,simpson-,bowles     
,spending ,reductions ,act of #bjab4  4 
#cic4 ,termination of exempt facility   
bond treatment for qualified public     
educational facilities  7a7 ,in general 
,subsection 7a7 of section #adb is      
amended by striking paragraph 7#ac74    
7b7 ,effective date ,the amendments made
 by this section shall apply to bonds   
issued after the date of the enactment  
of this ,act4  #cid4 ,termination of    

hospital bonds  7a7 ,in general         
,paragraph 7#a7 of section #ade7;a7 is  
amended by striking or a governmental   
unit and inserting 1 or a governmental  
unit1 other than a hospital4  7b7       
,conforming amendments  7#a7 ,section   
#ade is amended by striking subsection  
7c7 and by redesignating subsections 7d7
 and 7e7 as subsections 7c7 and 7d71    
respectively4  7#b7 ,subsection 7b7 of  
section #ade is amended by striking     
nonhospital each place it appears4  7#c7
 ,paragraph 7#a7 of section #ade7;b7 is 
amended by striking 7other than a       
qualified hospital bond74  7#d7         
,paragraph 7#b7 of section #ade7;b7 is  
amended--  7,a7 by striking other than a
 qualified hospital bond in subparagraph
 7,b71 and  7,b7 by striking            
subparagraph 7,c74  7#e7 ,the heading   
for subsection 7b7 of section #ade is   
amended by striking on bonds other than 
hospital bonds4  7#f7 ,the heading for  
paragraph 7#b7 of section #ade7;b7 is   
amended by striking nonhospital4  7c7   

,effective date ,the amendments made by 
this section shall apply to bonds issued
 after the date of the enactment of this
 ,act4