[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 842 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 842

To amend the Internal Revenue Code of 1986 to exempt small issues from 
    the restrictions on the deduction by financial institutions for 
                               interest.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 1997

Mr. English of Pennsylvania (for himself and Mr. Holden) 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 exempt small issues from 
    the restrictions on the deduction by financial institutions for 
                               interest.

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

SECTION 1. QUALIFIED SMALL ISSUE BONDS EXEMPT FROM RESTRICTIONS ON 
              DEDUCTION BY FINANCIAL INSTITUTIONS FOR INTEREST.

    (a) In General.--Clause (ii) of section 265(b)(3)(B) of the 
Internal Revenue Code of 1986 (defining qualified tax-exempt 
obligations) is amended by striking ``or'' at the end of subclause (I), 
by redesignating subclause (II) as subclause (III), and by inserting 
after subclause (I) the following new subclause:
                                    ``(II) any qualified small issue 
                                bond (as defined in section 144(a)), 
                                or''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of enactment of this 
Act.
                                 <all>