Tax Extension Act of 1992

Tax Extension Act of 1992 - Title I: Extension of Certain Expiring Tax Provisions - Amends the Internal Revenue Code to extend from August 1, 1992, until August 1, 1993, the provisions governing the allocation of research and experimental expenditures for purposes of determining sources of income.

Extends the following provisions from June 30, 1992, until December 31, 1993: (1) the tax credit for increasing research activities; (2) the targeted jobs credit; (3) the authority to issue qualified mortgage bonds and qualified mortgage credit certificates; (4) the authority to issue qualified small issue bonds to finance manufactuiring facilities and farm property; (5) employer-provided educational assistance; (6) the tax exclusion for employer-provided group legal services plans; (7) the energy investment credit for solar and geothermal property; (8) the credit for clinical testing expenses for certain drugs for rare diseases or conditions; and (9) health insurance costs of self-employed individuals.

Extends the low-income housing credit until December 31, 1993, with modifications. Expands the ten-year anti-churning rule waiver to certain projects substantially assisted, financed, or operated under the National Housing Act. Allows units occupied by certain full-time students to qualify for such credit. Authorizes the Treasury Department to waive penalties for certain de minimis errors and recertifications. Provides that certain community service facilities in projects in qualified census tracts are included in eligible basis as functionally related and subordinate facilities. Requires housing credit agencies, in determining whether the credit allocated to a building exceeds the amount necessary to assure the project's feasibility, to consider the reasonableness of total project costs and the appropriateness of amenities. Allows certain building owners to elect to use apartment size or family size in determining the credit's gross rent limitation.

Provides for the tax treatment of resale price control and subsidy lien programs under mortgage revenue bond provisions.

Amends the Internal Revenue Code to exclude from the five-year occupancy requirement under the tax-exempt mortgage revenue bond program any two-family residence which: (1) is a targeted area residence; or (2) is located in an area designated as an economic development zone or enterprise zone by Federal or State law.

Amends the Railroad Retirement Solvency Act of 1983 to extend, from October 1, 1992, until January 1, 1994, the authority to transfer income tax revenues attributable to the taxation of tier railroad retirement benefits to the railroad retirement account.

Extends the termination date of the nonconventional source fuels credit for one year.

Repeals the tax preference for the appreciated property charitable deduction during 1992 and 1993. Requires a report by the Secrretary of the Treasury to certain congressional committees on an advance valuation procedure.

Title II: Repeal of Certain Luxury Excise Taxes; Imposition of Tax on Diesel Fuel Used in Noncommercial Boats - Repeals the luxury excise tax on boats, aircraft, jewelry, and furs.

Provides an inflation adjustment for the threshold amount on which luxury vehicles are taxed. Terminates the luxury tax on passenger vehicles after December 31, 1999.

Extends the diesel fuels excise tax to diesel fuel used in noncommercial boats. Exempts from such tax diesel fuel used for fisheries or commercial navigation.

Retains diesel fuel taxes in the general Treasury (instead of the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund).