[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 478 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 478

 To amend the Internal Revenue Code of 1986 to allow a credit against 
 income tax for severance taxes and personal property taxes paid to an 
                       Indian tribal government.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1993

Mr. Richardson 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 allow a credit against 
 income tax for severance taxes and personal property taxes paid to an 
                       Indian tribal government.

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

SECTION 1. CREDIT FOR CERTAIN TAXES PAID TO INDIAN TRIBAL GOVERNMENT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end thereof the following new 
section:

``SEC. 44. CERTAIN TAXES PAID TO INDIAN TRIBAL GOVERNMENTS.

    ``(a) General Rule.--For purposes of section 38, the amount of the 
Indian tribal government taxes credit determined under this section for 
any taxable year shall be an amount equal to the aggregate qualified 
taxes paid or incurred during such taxable year by the taxpayer in 
carrying on a trade or business.
    ``(b) Qualified Taxes.--For purposes of this section, the term 
`qualified taxes' means--
            ``(1) any severance tax imposed by an Indian tribal 
        government, and
            ``(2) any personal property tax (as defined in section 
        164(b)(1)) imposed by an Indian tribal government.
    ``(c) Credit Limited to Double-Taxed Activities and Property.--The 
amount of any tax which may be taken into account under subsection (b) 
with respect to removal or with respect to any property shall not 
exceed the lesser of--
            ``(1) the amount of any other tax imposed on such removal 
        or property by any State or local government (other than an 
        Indian tribal government), or
            ``(2) the amount of such other tax which would have been 
        imposed on such removal or property under laws in effect on 
        January 1, 1991.
    ``(d) Denial of Deduction.--No deduction shall be allowed under 
this chapter for any amount for which a credit is determined under this 
section.''
    (b) Credit Allowed as Part of General Business Credit.--Subsection 
(b) of section 38 of such Code is amended by striking ``plus'' at the 
end of paragraph (6), by striking the period at the end of paragraph 
(7) and inserting ``, plus'', and by adding at the end thereof the 
following new paragraph:
            ``(8) the Indian tribal government taxes credit determined 
        under section 44(a).''
    (c) Indian Tribal Government Taxes Credit Allowable Against Entire 
Regular Tax and Alternative Minimum Tax.--
            (1) Subsection (c) of section 38 of such Code (relating to 
        limitation based on amount of tax) is amended by adding at the 
        end thereof the following new paragraph:
            ``(3) Special rules for indian tribal government taxes 
        credit.--
                    ``(A) In general.--This section and section 39 
                shall be applied separately--
                            ``(i) first with respect to so much of the 
                        credit allowed by subsection (a) as is not 
                        attributable to section 44(a), and
                            ``(ii) then with respect to so much of the 
                        credit allowed by subsection (a) as is 
                        attributable to section 44(a).
                    ``(B) Rules for application of indian tribal 
                government taxes credit.--In the case of the credit 
                attributable to section 44(a), in lieu of applying the 
                preceding paragraphs of this subsection, the amount of 
                such credit allowed under subsection (a) for any 
                taxable year shall not exceed the net chapter 1 tax for 
                such year.
                    ``(C) Net chapter 1 tax.--For purposes of 
                subparagraph (B), the term `net chapter 1 tax' means 
                the sum of the regular tax liability for the taxable 
                year and the tax imposed by section 55 for the taxable 
                year, reduced by the sum of the credits allowable under 
                this part for the taxable year (other than under 
                subpart C and section 44(a)).''
            (2) Paragraph (2) of section 55(c) of such code is amended 
        to read as follows:
            ``(4) Cross references.--
                    ``(A) For provisions providing that certain credits 
                are not allowable against the tax imposed by this 
                section, see sections 26(a), 28(d)(2), 29(b)(5), and 
                38(c).
                    ``(B) For provision allowing Indian tribal 
                government taxes credit against the tax imposed by this 
                section, see section 38(c)(3).''
    (b) Clerical Amendment.--The table of sections for such subpart D 
is amended by adding at the end thereof the following new item:

                              ``Sec. 44. Certain taxes paid to Indian 
                                        tribal governments.''
    (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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