[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1789 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1789

   To provide for the tax treatment of certain distributions made by 
                      Alaska Native Corporations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 1993

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

_______________________________________________________________________

                                 A BILL


 
   To provide for the tax treatment of certain distributions made by 
                      Alaska Native Corporations.

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

SECTION 1. TAX TREATMENT OF CERTAIN DISTRIBUTIONS MADE BY ALASKA NATIVE 
              CORPORATIONS.

    (a) General Rule.--For purposes of the Internal Revenue Code of 
1986, any qualified distribution made by a Native Corporation shall be 
treated as a distribution not made out of earnings and profits.
    (b) Qualified Distribution.--For purposes of this section--
            (1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified distribution' means any 
        distribution to a Native (as defined in section 3 of the Alaska 
        Native Claims Settlement Act) or descendant of a Native (as so 
        defined)--
                    (A) which is made after the date of the enactment 
                of the Alaska Native Claims Settlement Act, and
                    (B) which but for this section would have been 
                treated as a dividend under chapter 1 of such Code.
            (2) Limitation.--The aggregate amount of distributions made 
        by any Native Corporation which may be treated as qualified 
        distributions shall not exceed the lesser of--
                    (A) the aggregate amount received in cash by such 
                Corporation on or before July 9, 1992, from the sale of 
                any depletable property received by such Corporation 
                pursuant to the Alaska Native Claims Settlement Act, or
                    (B) the aggregate bases (as determined pursuant to 
                section 21(c) of such Act) of depletable property 
                received by such Corporation pursuant to such Act and 
                sold on or before July 9, 1992, reduced by the 
                aggregate bases of any depletable property sold in a 
                sale referred to in subsection (c)(2)(B).
    (c) Adjustments to Amount Realized.--For purposes of subsection 
(b)(2)(A)--
            (1) there shall be taken into account any amount of cash 
        received by the Corporation indirectly through another 
        corporation all the stock of which is owned directly by such 
        Corporation, but
            (2) the following amounts shall be disregarded:
                    (A) Any amount realized directly or indirectly by 
                the Corporation for the use of losses or credits of 
                such Corporation or of a corporation all of the stock 
                of which is owned directly by such Corporation where 
                such use would not have been allowable without regard 
                to section 60(b)(5) of the Tax Reform Act of 1984 (as 
                amended by section 1804(e)(4) of the Tax Reform Act of 
                1986, and repealed by section 5021 of the Technical and 
                Miscellaneous Revenue Act of 1988).
                    (B) Any amount realized directly or indirectly by 
                the Corporation from a special purpose sale of any 
                depletable property where the loss incurred on such 
                sale was used in a manner which would not have been 
                allowable, but for such section 60(b)(5) and such 
                Corporation realized directly or indirectly any 
                consideration for such use.
    (d) Special Purpose Sale.--For purposes of subsection (c), the term 
``special purpose sale'' means a sale in which a loss was recognized, 
and which was made under an agreement which was entered into either (1) 
after October 22, 1986, and on or before April 26, 1988, or (2) after 
April 26, 1988, if the loss incurred thereon was used in a contract 
referred to in section 5021(b) of the Technical and Miscellaneous 
Revenue Act of 1988.
    (e) Native Corporation.--For purposes of this section, the term 
``Native Corporation'' has the meaning given such term by section 3 of 
the Alaska Native Claims Settlement Act.
    (f) Depletable Property.--For purposes of this section, the term 
``depletable property'' means any property of a character subject to 
the allowance for depletion under section 611 of the Internal Revenue 
Code of 1986.

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