[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4714 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4714

To amend the Internal Revenue Code of 1986 to restore the exception to 
         the market discount rules for tax-exempt obligations.


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                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 1994

  Mr. Cardin 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 restore the exception to 
         the market discount rules for tax-exempt obligations.

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

SECTION 1. RESTORATION OF EXCEPTION FROM MARKET DISCOUNT RULES FOR TAX-
              EXEMPT OBLIGATIONS.

    (a) In General.--Paragraph (1) of section 1278(a) of the Internal 
Revenue Code of 1986 (defining market discount bond) is amended--
            (1) by adding at the end of subparagraph (B) the following 
        new clause:
                            ``(iv) Tax-exempt obligations.--Any tax-
                        exempt obligation (as defined in section 
                        1275(a)(3)).'', and
            (2) by striking subparagraph (C) and redesignating 
        subparagraph (D) as subparagraph (C).
    (b) Conforming Amendments.--
            (1) Sections 1276(a)(4) and 1278(b)(1) of such Code are 
        each amended by striking ``103,''.
            (2) Subparagraph (B) of section 1278(a)(4) of such Code is 
        amended by striking ``or, in the case of a tax-exempt 
        obligation'' and all that follows and inserting a period.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations purchased (within the meaning of section 
1272(d)(1) of the Internal Revenue Code of 1986) after April 30, 1993.
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