[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1460 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1460

   To amend the Internal Revenue Code of 1986 to provide for the tax 
treatment of associations resulting from mergers of certain farm credit 
                             associations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 1993

Mr. McDermott introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide for the tax 
treatment of associations resulting from mergers of certain farm credit 
                             associations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAX TREATMENT OF ASSOCIATIONS RESULTING FROM MERGERS OF 
              CERTAIN FARM CREDIT ASSOCIATIONS.

    (a) In General.--Part IV of subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 (relating to farmers' cooperatives) is 
amended by adding after section 521 the following new section:

``SEC. 522. CERTAIN MERGED FARM CREDIT ASSOCIATIONS.

    ``(a) In General.--For purposes of this title, except as otherwise 
provided in this section, an applicable merged association shall be 
treated in the same manner as a production credit association is 
treated under section 2.6 of the Farm Credit Act of 1971 (12 U.S.C. 
2077).
    ``(b) Treatment of Exempt Items.--
            ``(1) In general.--For purposes of this title, an exempt 
        item shall not be taken into account in computing the tax 
        liability of any applicable merged association.
            ``(2) Exempt item.--For purposes of this subsection, the 
        term `exempt item' means any item of income, gain, loss, or 
        deduction which is properly allocable to loans described in 
        section 1.7 of the Farm Credit Act of 1971 (12 U.S.C. 2015) 
        which have an initial term of at least 10 years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Applicable merged association.--The term `applicable 
        merged association' means any association resulting from a 
        merger under section 7.8 of the Farm Credit Act of 1971 or 
        section 410(e) or 411 of the Agricultural Credit Act of 1987 of 
        1 or more production credit associations and 1 or more Federal 
        land bank associations. Such term includes any corporation 
        resulting from a subsequent merger of an association referred 
        to in the preceding sentence with another corporation.
            ``(2) References to farm credit act of 1971.--Any reference 
        in this section to the Farm Credit Act of 1971 shall be a 
        reference to such section as in effect on December 31, 1992.''
    (b) Conforming Amendments.--
            (1) The table of sections for part IV of subchapter F of 
        chapter 1 of such Code is amended by adding at the end thereof 
        the following new item:

                              ``Sec. 522. Certain merged farm credit 
                                        associations.''
            (2)(A) The part heading for such part IV is amended by 
        adding at the end thereof the following: ``; Certain Farm 
        Credit Associations''.
            (B) The item relating to part IV in the table of parts for 
        subchapter F of chapter 1 of such Code is amended by inserting 
        ``; certain farm credit associations'' after ``cooperatives''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

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