[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 894 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 894

  To amend the Internal Revenue Code of 1986 to deny the benefits of 
certain export subsidies in the case of exports of certain unprocessed 
                                timber.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 5 (legislative day, April 19), 1993

  Mr. Baucus 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 deny the benefits of 
certain export subsidies in the case of exports of certain unprocessed 
                                timber.

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

SECTION 1. DENIAL OF CERTAIN EXPORT SUBSIDIES.

    (a) Foreign Sales Corporations.--Paragraph (2) of section 927(a) of 
the Internal Revenue Code of 1986 (relating to exclusion of certain 
property) is amended by striking ``or'' at the end of subparagraph (C), 
by striking the period at the end of subparagraph (D) and inserting ``, 
or'', and by adding at the end thereof the following:
                    ``(E) any unprocessed timber which is a softwood.
        For purposes of subparagraph (E), the term `unprocessed timber' 
        means any log, cant, or similar form of timber.''.
    (b) Domestic International Sales Corporations.--Paragraph (2) of 
section 993(c) of such Code (relating to exclusion of certain property) 
is amended by striking ``or'' at the end of subparagraph (C), by 
striking the period at the end of subparagraph (D) and inserting ``, 
or'', and by adding after subparagraph (D) the following:
                    ``(E) any unprocessed timber which is a softwood.
        For purposes of subparagraph (E), the term `unprocessed timber' 
        means any log, cant, or similar form of timber.''.
    (c) Title-Passage Rule.--Subsection (b) of section 865 of such Code 
(relating to source rules for personal property sales) is amended by 
adding at the end thereof the following: ``Notwithstanding the 
preceding sentence, any income from the sale of any unprocessed timber 
which is a softwood and was cut from an area in the United States shall 
be sourced in the United States and the rules of sections 862(a)(6) and 
863(b) shall not apply to any such income. For purposes of the 
preceding sentence, the term `unprocessed timber' means any log, cant, 
or similar form of timber.''.
    (d) Elimination of Deferral.--Subsection (d) of section 954 of such 
Code is amended by adding at the end thereof the following new 
paragraph:
            ``(4) Special rule for certain timber products.--For 
        purposes of subsection (a)(2), the term `foreign base company 
        sales income' includes any income (whether in the form of 
        profits, commissions, fees, or otherwise) derived in connection 
        with--
                    ``(A) the sale of any unprocessed timber referred 
                to in section 865(b), or
                    ``(B) the milling of any such timber outside the 
                United States.
        Subpart G shall not apply to any amount treated as subpart F 
        income by reason of this paragraph.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to sales, exchanges, or other dispositions after the date of the 
enactment of this Act.

                                 <all>