[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1928 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1928

To amend the Internal Revenue Code of 1986 to eliminate tax incentives 
    for exporting jobs outside of the United States, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 28, 1996

   Mr. Levin 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 eliminate tax incentives 
    for exporting jobs outside of the United States, 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. DISALLOWANCE OF DEDUCTION FOR COSTS INCURRED IN MOVING 
              EQUIPMENT OUTSIDE THE UNITED STATES.

    (a) Disallowance.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items not deductible) is 
amended by adding at the end the following new section:

``SEC. 280I. COSTS INCURRED IN MOVING CERTAIN PROPERTY OUTSIDE THE 
              UNITED STATES.

    ``(a) General Rule.--No deduction shall be allowed under this 
chapter for amounts paid or incurred directly or indirectly for costs 
of transporting tangible property outside the United States if, during 
the 2-year period preceding the transportation--
            ``(1) the property was used, or purchased for use, in the 
        active conduct of a trade or business by the taxpayer within 
        the United States, and
            ``(2) there has been a reduction by the taxpayer in 
        production or operations within the United States in which such 
        property is capable of being used.
    ``(b) Exception.--The Secretary may by regulation exempt from the 
application of this section property which by its nature, or by the 
nature of the trade or business within which it is used, is used on a 
regular basis both within and without the United States.''
    (b) Conforming Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

                              ``Sec. 280I. Costs incurred in moving 
                                        certain property outside the 
                                        United States.''
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred on or after the date of the enactment 
of this Act.

SEC. 3. TRANSFERS IN REORGANIZATION.

    (a) In General.--Section 367(a) of the Internal Revenue Code of 
1986 is amended by striking paragraph (3) and by redesignating 
paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), 
respectively.
    (b) Conforming Amendments.--Paragraph (4) of section 367(a) of such 
Code, as redesignated by subsection (a), is amended by striking 
``Paragraphs (2) and (3)'' in the text and heading and inserting 
``Paragraph (2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transfers on or after the date of the enactment of this Act.
                                 <all>