US Code

Public Law 119-73 (01/23/2026)

2 U.S.C. § 936

Adjustment for current policies

(a)

Purpose

The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation for legislation affecting 4 areas of the budget—
(1)
section 1395w–4 of title 42 payments made under (referred to in this section as “Payment for Physicians’ Services”);
(2)
the Estate and Gift Tax under subtitle B of title 26;
(3)
the AMT; and
(4)
provisions of EGTRRA or JGTRRA that amended title 26 (or provisions in later statutes further amending the amendments made by EGTRRA or JGTRRA), other than—
(A)
Public Law 109–280 the provisions of those 2 Acts that were made permanent by the Pension Protection Act of 2006 ();
(B)
amendments to the Estate and Gift Tax referred to in paragraph (2);
(C)
the AMT referred to in paragraph (3); and
(D)
the income tax rates on ordinary income that apply to individuals with adjusted gross incomes greater than $200,000 for a single filer and $250,000 for joint filers.
(b)

Duration

This section shall remain in effect through .

(c)

Medicare payments to physicians

(1)

Criteria

section 1395w–4 of title 42Legislation that includes provisions amending or superseding the system for updating payments under subsections (d) and (f) of shall trigger the current policy adjustment required by this chapter.

(2)

Adjustment

The amount of the maximum current policy adjustment shall be the difference between—
(A)
section 1395w–4 of title 42 estimated net outlays attributable to the payment rates and related parameters in accordance with subsections (d) and (f) of (as scheduled on , to be in effect); and
(B)
what those net outlays would have been if—
(i)
the nominal payment rates and related parameters in effect for 2009 had been in effect through , without change; and
(ii)
thereafter, the nominal payment rates and related parameters described in subparagraph (A) had applied and the assumption described in clause (i) had never applied.
(3)

Limitation

If the provisions in the legislation that cause it to meet the criteria in paragraph (1) cover a time period that ends before , subject to the maximum adjustment provided for under paragraph (2), the amount of each current policy adjustment made pursuant to this section shall be limited to the difference between—
(A)
section 1395w–4 of title 42 estimated net outlays attributable to the payment rates and related parameters specified in (as scheduled on , to be in effect for the period of time covered by the relevant provisions of the eligible legislation); and
(B)
what those net outlays would have been if the nominal payment rates and related parameters in effect for 2009 had been in effect, without change, for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
(d)

Estate and Gift Tax

(1)

Criteria

Legislation that includes provisions amending the Estate and Gift Tax under subtitle B of title 26 shall trigger the current policy adjustment required by this chapter.

(2)

Adjustment

The amount of the maximum current policy adjustment shall be the difference between—
(A)
total revenues projected to be collected under title 26 (as scheduled on , to be in effect); and
(B)
what those revenue collections would have been if, on the date of enactment of the legislation meeting the criteria in paragraph (1), estate and gift tax law had instead been amended so that the tax rates, nominal exemption amounts, and related parameters in effect for tax year 2009 had remained in effect through , with nominal exemption amounts indexed for inflation after 2009 consistent with subsection (g).
(3)

Limitation

If the provisions in the legislation that cause it to meet the criteria in paragraph (1) cover a time period that ends before , subject to the maximum adjustment provided for under paragraph (2), the amount of each current policy adjustment made pursuant to this section shall be limited to the difference between—
(A)
total revenues projected to be collected under title 26 (as scheduled on , to be in effect for the period of time covered by the relevant provisions of the eligible legislation); and
(B)
what those revenues would have been if the estate and gift tax law rates, nominal exemption amounts, and related parameters in effect for 2009, with nominal exemption amounts indexed for inflation after 2009 consistent with subsection (g), had been in effect for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
(4)

Duration of policy adjustment

Adjustments made pursuant to this subsection are available for policies affecting the estate and gift tax through only . Any adjustments shall include budgetary effects in all years from these policy changes.

(e)

AMT relief

(1)

Criteria

Legislation that includes provisions extending AMT relief shall trigger the current policy adjustment required by this chapter.

(2)

Adjustment

The amount of the maximum current policy adjustment shall be the difference between—
(A)
total revenues projected to be collected under title 26 (as scheduled on , to be in effect); and
(B)
what those revenue collections would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), AMT law had instead been amended by making commensurate adjustments in the exemption amounts for joint and single filers in such a manner that the number of taxpayers with AMT liability or lost credits that occur as a result of the AMT would not be estimated to exceed the number of taxpayers affected by the AMT in tax year 2008 in any year for which relief is provided, through .
(3)

Limitation

If the provisions in the legislation that cause it to meet the criteria in paragraph (1) cover a time period that ends before , subject to the maximum adjustment provided for under paragraph (2), the amount of each current policy adjustment made pursuant to this section shall be limited to the difference between—
(A)
total revenues projected to be collected under title 26 (as scheduled on , to be in effect for the period of time covered by the relevant provisions of the eligible legislation); and
(B)
what those revenues would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), AMT law had instead been amended by making commensurate adjustments in the exemption amounts for joint and single filers in such a manner that the number of taxpayers with AMT liability or lost credits that occur as a result of the AMT would not be estimated to exceed the number of AMT taxpayers in tax year 2008 for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
(4)

Duration of policy adjustment

Adjustments made pursuant to this subsection are available for policies affecting the AMT through only . Any adjustments shall include budgetary effects in all years from these policy changes.

(f)

Permanent extension of middle-class tax cuts

(1)

Criteria

Legislation that includes provisions extending middle-class tax cuts shall trigger the current policy adjustment required by this chapter if those provisions extend 1 or more of the following provisions:
(A)
The 10 percent bracket as in effect for tax year 2010, as provided for under section 101(a) of EGTRRA and any later amendments through .
(B)
The child tax credit as in effect for tax year 2010, as provided for under section 201 of EGTRRA and any later amendments through .
(C)
Tax benefits for married couples as in effect for tax year 2010, as provided for under title III of EGTRRA and any later amendments through .
(D)
The adoption credit as in effect in tax year 2010, as provided for under section 202 of EGTRRA and any later amendments through .
(E)
The dependent care credit as in effect in tax year 2010, as provided for under section 204 of EGTRRA and any later amendments through .
(F)
The employer-provided child care credit as in effect in tax year 2010, as provided for under section 205 of EGTRRA and any later amendments through .
(G)
The education tax benefits as in effect in tax year 2010, as provided for under title IV of EGTRRA and any later amendments through .
(H)
The 25 and 28 percent brackets as in effect for tax year 2010, as provided for under section 101(a) of EGTRRA and any later amendments through .
(I)
The 33 percent bracket as in effect for tax year 2010, as provided for under section 101(a) of EGTRRA and any later amendment through , affecting taxpayers with adjusted gross income of $200,000 or less for single filers and $250,000 or less for joint filers in tax year 2010, with these income levels indexed for inflation in each subsequent year consistent with subsection (g).
(J)
The rates on income derived from capital gains and qualified dividends as in effect for tax year 2010, as provided for under sections 301 and 302 of JGTRRA and any later amendment through , affecting taxpayers with adjusted gross income of $200,000 or less for single filers and $250,000 for joint filers with these income levels indexed for inflation in each subsequent year consistent with subsection (g).
(K)
1
1 So in original. Probably should be “taxpayers”.
The phaseout of personal exemptions and the overall limitation on itemized deductions as in effect for tax year 2010, as provided for under sections 102 and 103 of EGTRRA of 2001, respectively, and any later amendment through , affecting taxpayer  with adjusted gross income of $200,000 or less for single filers and $250,000 for joint filers, with these income levels indexed for inflation in each subsequent year consistent with subsection (g).
(L)
section 179(b) of title 26 The increase in the limitations on expensing depreciable business assets for small businesses under as in effect in tax year 2010, as provided under section 202 of JGTRRA and any later amendment through .
(2)

Adjustment

The amount of the maximum current policy adjustment shall be the difference between—
(A)
total revenues projected to be collected and outlays to be paid under title 26 (as scheduled on , to be in effect); and
(B)
what those revenue collections and outlay payments would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), the provisions identified in paragraph (1) were made permanent.
(3)

Limitation

If the provisions in the legislation that cause it to meet the criteria in paragraph (1) are not permanent, subject to the maximum adjustment provided for under paragraph (2), the amount of each current policy adjustment made pursuant to this section shall be limited to the difference between—
(A)
total revenues projected to be collected and outlays to be paid under title 26 (as scheduled on , to be in effect for the period of time covered by the relevant provisions of the eligible legislation); and
(B)
what those revenue collections and outlay payments would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), the provisions identified in paragraph (1) had been in effect, without change, for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
(g)

Indexing for inflation

section 1(f)(3) of title 26Indexed amounts are assumed to increase in each year by an amount equal to the cost-of-living adjustment determined under for the calendar year in which the taxable year begins, determined by substituting “calendar year 2008” for “calendar year 1992” in subparagraph (B) of such section.

(h)

Guidance on estimates and current policy adjustments

(1)

Middle class tax cuts

For purposes of estimates made pursuant to subsection (f)—
(A)
each of the income tax provisions shall be estimated as though the AMT had remained at current law as scheduled on to be in effect; and
(B)
2
2 So in original. Probably should be “are”.
if more than 1 of the income tax provisions is  included in a single piece of legislation, those provisions shall be estimated in the order in which they appear.
(2)

AMT

For purposes of estimates made pursuant to subsection (e), changes to the AMT shall be estimated as if, on the date of enactment of legislation meeting the criteria in subsection (e)(1), all of the income tax provisions identified in subsection (f)(1) were made permanent.

Pub. L. 111–139, title I, § 7124 Stat. 16(, , .)

Editorial Notes

References in Text

Pub. L. 107–16115 Stat. 38section 1 of Title 26section 151 of Title 26section 151 of Title 26section 68 of Title 26section 68 of Title 26section 24 of Title 26section 23 of Title 26section 21 of Title 26section 21 of Title 26section 45F of Title 26section 38 of Title 26section 1 of Title 26EGTRRA, referred to in subsecs. (a)(4) and (f)(1)(C), (G), is the Economic Growth and Tax Relief Reconciliation Act of 2001, , , . Titles III and IV of the Act enacted and amended numerous sections and provisions set out as notes in Title 26, Internal Revenue Code. Section 101(a) of the Act amended . Section 102 of the Act amended and enacted provisions set out as a note under . Section 103 of the Act amended and enacted provisions set out as a note under . Section 201 of the Act amended sections 23 to 25, 26, 32, 904, and 1400C of Title 26 and enacted provisions set out as a note under . Section 202 of the Act amended sections 23, 24, 26, 137, 904, and 1400C of Title 26 and enacted provisions set out as a note under . Section 204 of the Act amended and enacted provisions set out as a note under . Section 205 of the Act enacted , amended sections 38 and 1016 of Title 26, and enacted provisions set out as a note under . For complete classification of this Act to the Code, see Short Title of 2001 Amendment note set out under and Tables.

Pub. L. 108–27117 Stat. 752section 179 of Title 26section 179 of Title 26section 1177 of Title 46section 1 of Title 26section 341 of Title 26section 1 of Title 26section 1 of Title 26JGTRRA, referred to in subsecs. (a)(4) and (f)(1)(J), (L), is the Jobs and Growth Tax Relief Reconciliation Act of 2003, , , . Section 202 of the Act amended , Internal Revenue Code, and enacted provisions set out as a note under . Section 301 of the Act amended sections 1, 55, 57, 1445, and 7518 of Title 26 and , Appendix, Shipping, and enacted provisions set out as notes under . Section 302 of the Act amended sections 1, 163, 301, 306, 338, 467, 531, 541, 584, 702, 854, 857, 1255, and 1257 of Title 26, repealed , and enacted provisions set out as a note under . For complete classification of this Act to the Code, see Short Title of 2003 Amendment note set out under and Tables.

Pub. L. 109–280120 Stat. 780section 1001 of Title 29The Pension Protection Act of 2006, referred to in subsec. (a)(4)(A), is , , . For complete classification of this Act to the Code, see Short Title of 2006 Amendment note set out under , Labor, and Tables.

Pub. L. 111–139124 Stat. 8section 931 of this titleThis chapter, referred to in subsecs. (c)(1), (d)(1), (e)(1), and (f)(1), was in the original “this title”, meaning title I of , , , which is classified principally to this chapter. For complete classification of title I to the Code, see Short Title note set out under and Tables.