[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1060 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1060

 To amend the Internal Revenue Code of 1986 to provide a tax credit to 
   businesses which mine metallurgical coal and are required to make 
 contributions to the UMWA Combined Benefit Fund created by the Energy 
                          Policy Act of 1992.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 28 (legislative day, April 19), 1993

 Mr. Robb (for himself and Mr. Warner) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide a tax credit to 
   businesses which mine metallurgical coal and are required to make 
 contributions to the UMWA Combined Benefit Fund created by the Energy 
                          Policy Act of 1992.

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

SECTION 1. METALLURGICAL COAL MINING CREDIT.

    (a) General Rule.--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. 45A. METALLURGICAL COAL MINING CREDIT.

    ``(a) General Rule.--For purposes of section 38, the metallurgical 
coal mining credit determined under this section for the taxable year 
is the lesser of--
            ``(1) the applicable percentage of the aggregate amount of 
        the premiums paid or accrued by the taxpayer during the taxable 
        year pursuant to chapter 99 of this title (relating to coal 
        industry health benefits), or
            ``(2) 7.5 percent of the aggregate gross revenue from the 
        sale of qualified metallurgical coal sold by the taxpayer 
        during the taxable year to an unrelated person.
    ``(b) Qualification.--No credit shall be determined under 
subsection (a) with respect to any taxpayer unless at least 20 percent 
of the total tons of qualified coal sold by the taxpayer during each of 
the 4 preceding taxable years was qualified metallurgical coal. For 
purposes of the preceding sentence, only coal produced from an economic 
interest held by the taxpayer shall be taken into account.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable percentage.--The applicable percentage is 
        the percentage of the aggregate tons of qualified coal sold by 
        the taxpayer during the taxable year to unrelated persons which 
        consists of qualified metallurgical coal. In no event shall the 
        applicable percentage exceed 75 percent.
            ``(2) Qualified metallurgical coal.--The term `qualified 
        metallurgical coal' means any bituminous coal which--
                    ``(A) is used in the production of iron and steel, 
                and
                    ``(B) is processed by, or produced from an economic 
                interest held by, a signatory operator.
            ``(3) Unrelated person.--The term `unrelated person' has 
        the same meaning as when used in section 29.
            ``(4) Affiliated groups.--All members of the same 
        affiliated group (as defined in section 1504) shall be treated 
        as one taxpayer for purposes of this section and the credit 
        determined under subsection (a) with respect to such one 
        taxpayer shall be allocated among such members in such manner 
        as the Secretary may prescribe.
            ``(5) Economic interest.--The term `economic interest' 
        means an interest with respect to which an allowance for 
        depletion is allowable.
            ``(6) Bituminous coal.--The term `bituminous coal' means 
        coal classified as bituminous coal according to the publication 
        of the American Society for Testing and Materials under the 
        title `Standard Classification of Coals by Rank' (ASTM D 338-
        91A), as in effect on the date of the enactment of chapter 99.
            ``(7) Qualified coal.--The term `qualified coal' means any 
        bituminous coal which is produced and processed by a signatory 
        operator from an economic interest held by a signatory 
        operator.
            ``(8) Signatory operator.--The term `signatory operator' 
        has the meaning given such term by section 9701(c)(1), and 
        shall include all members of the affiliated group of which such 
        signatory operator is a member that are also signatory 
        operators.
            ``(9) Ton--.The term `ton' means 2,000 pounds.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 is amended by striking ``plus'' at the end of paragraph (7), 
by striking the period at the end of paragraph (8) and inserting ``, 
plus'', and by adding at the end thereof the following new paragraph:
            ``(9) the metallurgical coal credit determined under 
        section 45A.''.
    (c) Credit May Offset 90 Percent of Minimum Tax.--Subsection (c) of 
section 38 of such Code is amended by redesignating paragraph (2) as 
paragraph (3) and by inserting after paragraph (1) the following new 
paragraph:
            ``(2) Metallurgical coal credit may offset 90 percent of 
        minimum tax.--
                    ``(A) In general.--In the case of a taxpayer 
                entitled to a credit determined under section 45A, the 
                amount determined under paragraph (1)(A) shall be 
                reduced by the lesser of--
                            ``(i) the portion of the metallurgical coal 
                        credit not used against the normal limitation, 
                        or
                            ``(ii) 90 percent of the taxpayer's 
                        tentative minimum tax for the taxable year.
                    ``(B) Portion of metallurgical coal credit not used 
                against normal limitation.--For purposes of 
                subparagraph (A), the portion of the metallurgical coal 
                credit not used against the normal limitation is the 
                excess (if any) of--
                            ``(i) the portion of the credit under 
                        subsection (a) which is attributable to the 
                        metallurgical coal credit determined under 
                        section 45A, over
                            ``(ii) the limitation of paragraph (1) 
                        (determined without regard to this paragraph) 
                        reduced by the portion of the credit under 
                        subsection (a) which is not so attributable.''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end thereof the following new item:

                              ``Sec. 45A. Metallurgical coal mining 
                                        credit.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1993.

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