SA 4407. Mr. KYL submitted an amendment intended to be proposed by him to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation;


At the end add the following:
TITLE X--PRINCIPAL RESIDENCE GAIN EXCLUSION


SEC. X01. INFLATION ADJUSTMENT FOR PRINCIPAL RESIDENCE GAIN EXCLUSION DOLLAR LIMITATION.
(a) In General.--Section 121(b) of the Internal Revenue Code of 1986 (relating to limitations) is amended by adding at the end the following new paragraph:
``(4) INFLATION ADJUSTMENT.--In the case of any calendar year after 2008, the dollar amount contained in paragraph (1) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2007' for `calendar year 1992' in subparagraph (B) thereof.

Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $1,000.''.
(b) Conforming Amendment.--So much of subparagraph (A) of section 121(b)(2) of the Internal Revenue Code of 1986 as precedes clause (i) thereof is amended to read as follows:
``(A) LIMITATION FOR CERTAIN JOINT RETURNS.--Paragraph (1) shall be applied by doubling the dollar amount specified in such paragraph if--''.
(c) Effective Date.--The amendments made by this section shall apply to years beginning after December 31, 2008.


(As printed in the Congressional Record for the Senate on Apr 3, 2008.)