PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX RELIEF.

SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX RELIEF. (a) [26 U.S.C. 1 note] Permanent Extension.—The Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended by striking section 303. (b) 20-Percent Capital Gains Rate for Certain High Income Individuals.— (1) In general.—Paragraph (1) of section 1(h) is amended by striking subparagraph (C), by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F) and by inserting after subparagraph (B) the following new subparagraphs: “(C) 15 percent of the lesser of— “(i) so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the amount on which a tax is determined under subparagraph (B), or “(ii) the excess of— “(I) the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 39.6 percent, over “(II) the sum of the amounts on which a tax is determined under subparagraphs (A) and (B), “(D) 20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C),” . (2) [26 U.S.C. 55] Minimum tax.—Paragraph (3) of section 55(b) is amended by striking subparagraph (C), by redesignating subparagraph (D) as subparagraph (E), and by inserting after subparagraph (B) the following new subparagraphs: “(C) 15 percent of the lesser of— “(i) so much of the adjusted net capital gain (or, if less, taxable excess) as exceeds the amount on which tax is determined under subparagraph (B), or “(ii) the excess described in section 1(h)(1)(C)(ii), plus “(D) 20 percent of the adjusted net capital gain (or, if less, taxable excess) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C), plus” . (c) Conforming Amendments.— (1) The following provisions are each amended by striking “15 percent” and inserting “20 percent”: (A) Section 531. (B) Section 541. (C) Section 1445(e)(1). (D) The second sentence of section 7518(g)(6)(A). (E) Section 53511(f)(2) of title 46, United States Code. (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by striking “5 percent (0 percent in the case of taxable years beginning after 2007)” and inserting “0 percent”. (3) Section 1445(e)(6) is amended by striking “15 percent (20 percent in the case of taxable years beginning after December 31, 2010)” and inserting “20 percent”. (d) [26 U.S.C. 1 note] Effective Dates.— (1) In general.—Except as otherwise provided, the amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2012. (2) Withholding.—The amendments made by paragraphs (1)(C) and (3) of subsection (c) shall apply to amounts paid on or after January 1, 2013.