[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 831 Referred in Senate (RFS)]

  1st Session
                                H. R. 831


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 22, 1995

     Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 AN ACT


 
 To amend the Internal Revenue Code of 1986 to permanently extend the 
deduction for the health insurance costs of self-employed individuals, 
to repeal the provision permitting nonrecognition of gain on sales and 
     exchanges effectuating policies of the Federal Communications 
                  Commission, and for other purposes.

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

SECTION 1. PERMANENT EXTENSION OF DEDUCTION FOR HEALTH INSURANCE COSTS 
              OF SELF-EMPLOYED INDIVIDUALS.

    (a) In General.--Subsection (l) of section 162 of the Internal 
Revenue Code of 1986 (relating to special rules for health insurance 
costs of self-employed individuals) is amended by striking paragraph 
(6).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1993.

SEC. 2. REPEAL OF NONRECOGNITION ON FCC CERTIFIED SALES AND EXCHANGES.

    (a) In General.--Subchapter O of chapter 1 of the Internal Revenue 
Code of 1986 is amended by striking part V (relating to changes to 
effectuate FCC policy).
    (b) Clerical Amendment.--The table of parts for such subchapter O 
is amended by striking the item relating to part V.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to--
                    (A) sales and exchanges on or after January 17, 
                1995, and
                    (B) sales and exchanges before such date if the FCC 
                tax certificate with respect to such sale or exchange 
                is issued on or after such date.
            (2) Binding contracts.--
                    (A) In general.--The amendments made by this 
                section shall not apply to any sale or exchange 
                pursuant to a written contract which was binding on 
                January 16, 1995, and at all times thereafter before 
                the sale or exchange, if the FCC tax certificate with 
                respect to such sale or exchange was applied for, or 
                issued, on or before such date.
                    (B) Sales contingent on issuance of certificate.--A 
                contract shall be treated as not binding for purposes 
                of subparagraph (A) if the sale or exchange pursuant to 
                such contract, or the material terms of such contract, 
                were contingent, at any time on January 16, 1995, on 
                the issuance of an FCC tax certificate. The preceding 
                sentence shall not apply if the FCC tax certificate for 
                such sale or exchange is issued on or before January 
                16, 1995.
            (3) FCC tax certificate.--For purposes of this subsection, 
        the term ``FCC tax certificate'' means any certificate of the 
        Federal Communications Commission for the effectuation of 
        section 1071 of the Internal Revenue Code of 1986 (as in effect 
        on the day before the date of the enactment of this Act).

SEC. 3. NONRECOGNITION ON INVOLUNTARY CONVERSIONS NOT TO APPLY IF 
              REPLACEMENT PROPERTY ACQUIRED FROM RELATED PERSON.

    (a) In General.--Section 1033 of the Internal Revenue Code of 1986 
(relating to involuntary conversions) is amended by redesignating 
subsection (i) as subsection (j) and by inserting after subsection (h) 
the following new subsection:
    ``(i) Nonrecognition Not To Apply if Replacement Property Acquired 
From Related Person.--Subsection (a) shall not apply if the replacement 
property or stock acquired is acquired from a related person. For 
purposes of the preceding sentence, a person is related to another 
person if the relationship between such persons would result in a 
disallowance of losses under section 267 or 707(b).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to replacement property or stock acquired on or after February 6, 
1995.

SEC. 4. PHASEOUT OF EARNED INCOME CREDIT FOR INDIVIDUALS HAVING MORE 
              THAN $2,500 OF TAXABLE INTEREST AND DIVIDENDS.

    (a) In General.--Section 32 of the Internal Revenue Code of 1986 is 
amended by redesignating subsections (i) and (j) as subsections (j) and 
(k), respectively, and by inserting after subsection (h) the following 
new subsection:
    ``(i) Phaseout of Credit for Individuals Having More Than $2,500 of 
Taxable Interest and Dividends.--If the aggregate amount of interest 
and dividends includible in the gross income of the taxpayer for the 
taxable year exceeds $2,500, the amount of the credit which would (but 
for this subsection) be allowed under this section for such taxable 
year shall be reduced (but not below zero) by an amount which bears the 
same ratio to such amount of credit as such excess bears to $650.''
    (b) Inflation Adjustment.--Subsection (j) of section 32 of such 
Code (relating to inflation adjustments), as redesignated by subsection 
(a), is amended by striking paragraph (2) and by inserting the 
following new paragraphs:
            ``(2) Interest and dividend income limitation.--In the case 
        of a taxable year beginning in a calendar year after 1996, each 
        dollar amount contained in subsection (i) shall be increased by 
        an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 1995' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(3) Rounding.--If any amount as adjusted under paragraph 
        (1) or (2) is not a multiple of $10, such dollar amount shall 
        be rounded to the nearest multiple of $10.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

            Passed the House of Representatives February 21, 1995.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.