[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1431 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1431

To amend the Internal Revenue Code of 1986 to repeal the 30-percent of 
 gross income limitation applicable to regulated investment companies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 1995

 Mr. Flanagan 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 repeal the 30-percent of 
 gross income limitation applicable to regulated investment companies.

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

SECTION 1. REPEAL OF 30-PERCENT OF GROSS INCOME LIMITATION APPLICABLE 
              TO REGULATED INVESTMENT COMPANIES.

    (a) General Rule.--Subsection (b) of section 851 of the Internal 
Revenue Code of 1986 (relating to limitations) is amended by striking 
paragraph (3), by adding ``and'' at the end of paragraph (2), and by 
redesignating paragraph (4) as paragraph (3).
    (b) Technical Amendments.--
            (1) The material following paragraph (3) of section 851(b) 
        of such Code (as redesignated by subsection (a)) is amended--
                    (A) by striking ``paragraphs (2) and (3)'' and 
                inserting ``paragraph (2)'', and
                    (B) by striking the last sentence thereof.
            (2) Subsection (c) of section 851 of such Code is amended 
        by striking ``subsection (b)(4)'' each place it appears 
        (including the heading) and inserting ``subsection (b)(3)''.
            (3) Subsection (d) of section 851 of such Code is amended 
        by striking ``subsections (b)(4)'' and inserting ``subsections 
        (b)(3)''.
            (4) Paragraph (1) of section 851(e) of such Code is amended 
        by striking ``subsection (b)(4)'' and inserting ``subsection 
        (b)(3)''.
            (5) Paragraph (4) of section 851(e) of such Code is amended 
        by striking ``subsections (b)(4)'' and inserting ``subsections 
        (b)(3)''.
            (6) Section 851 of such Code is amended by striking 
        subsection (g) and redesignating subsection (h) as subsection 
        (g).
            (7) Subsection (g) of section 851 of such Code (as 
        redesignated by paragraph (6)) is amended by striking paragraph 
        (3).
            (8) Section 817(h)(2) of such Code is amended--
                    (A) by striking ``851(b)(4)'' in subparagraph (A) 
                and inserting ``851(b)(3)'', and
                    (B) by striking ``851(b)(4)(A)(i)'' in subparagraph 
                (B) and inserting ``851(b)(3)(A)(i)''.
            (9) Section 1092(f)(2) of such Code is amended by striking 
        ``Except for purposes of section 851(b)(3), the'' and inserting 
        ``The''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 <all>