[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 260 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 260

 To amend the Internal Revenue Code of 1986 to provide that the amount 
of any contribution to any No Net Cost Tobacco Fund or any No Net Cost 
       Tobacco Account shall be treated as a deductible expense.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

  Mr. Neal of North Carolina 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 that the amount 
of any contribution to any No Net Cost Tobacco Fund or any No Net Cost 
       Tobacco Account shall be treated as a deductible expense.

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

SECTION 1. CONTRIBUTIONS TO NO NET COST TOBACCO FUND OR ACCOUNT SHALL 
              BE TREATED AS DEDUCTIBLE EXPENSES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by adding at the end thereof 
the following new section:

``SEC. 197. NO NET COST TOBACCO EXPENDITURES.

    ``(a) In General.--Any qualified no net cost tobacco expenditure 
which is paid or incurred by the taxpayer during the taxable year shall 
be treated as an expense which is not chargeable to a capital account. 
The expenditure so treated shall be allowed as a deduction.
    ``(b) Qualified No Net Cost Tobacco Expenditure Defined.--For 
purposes of this section, the term `qualified no net cost tobacco 
expenditure' means--
            ``(1) any amount required to be contributed to any No Net 
        Cost Tobacco Fund (as defined in section 106A(a)(3) of the 
        Agricultural Adjustment Act of 1949 (7 U.S.C. 1445-1)), and
            ``(2) the amount of any assessment required to be paid to 
        any No Net Cost Tobacco Account (as defined in section 
        106B(a)(2) of such Act).
    ``(c) Amounts Subsequently Included in Gross Income.--
Notwithstanding any other provision of law, any amount received by the 
taxpayer from the sale, exchange, redemption, or other disposition of 
any capital stock, stock certificate, or qualified per-unit retain 
certificate (as defined in section 1388(h)) received by the taxpayer in 
connection with any qualified no cost tobacco expenditure to which 
subsection (a) applies shall be included in gross income of the 
taxpayer for the taxable year in which such amount is received.
    ``(d) Application of Section.--No provision of this section shall 
be construed to affect the tax treatment of any organization--
            ``(1) which established a No Net Cost Tobacco Fund under 
        section 106A of the Agricultural Adjustment Act of 1949, or
            ``(2) for which a No Net Cost Tobacco Account was 
        established under section 106B of such Act,
in connection with any expenditure to which subsection (a) applies.''
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
thereof the following new item:

                              ``Sec. 197. No net cost tobacco 
                                        expenditures.''
    (c) Effective Date.--The amendments made by this section shall 
apply to qualified no net cost tobacco expenditures paid or incurred 
during taxable years beginning after December 31, 1992.

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