[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1410 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1410

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

                             April 14, 1999

 Mr. English 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.
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