[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2923 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2923

     To amend the Internal Revenue Code of 1986 to extend expiring 
 provisions, to fully allow the nonrefundable personal credits against 
             regular tax liability, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 1999

  Mr. Archer 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 extend expiring 
 provisions, to fully allow the nonrefundable personal credits against 
             regular tax liability, 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. NONREFUNDABLE PERSONAL CREDITS FULLY ALLOWED AGAINST REGULAR 
              TAX LIABILITY.

    (a) In General.--Subsection (a) of section 26 of the Internal 
Revenue Code of 1986 (relating to limitation based on amount of tax) is 
amended to read as follows:
    ``(a) Limitation Based on Amount of Tax.--The aggregate amount of 
credits allowed by this subpart for the taxable year shall not exceed 
the taxpayer's regular tax liability for the taxable year.''.
    (b) Child Credit.--Subsection (d) of section 24 of such Code is 
amended by striking paragraph (2) and by redesignating paragraph (3) as 
paragraph (2).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SEC. 2. RESEARCH CREDIT.

    (a) Extension.--
            (1) In general.--Paragraph (1) of section 41(h) of the 
        Internal Revenue Code of 1986 (relating to termination) is 
        amended--
                    (A) by striking ``June 30, 1999'' and inserting 
                ``June 30, 2004'', and
                    (B) by striking the material following subparagraph 
                (B).
            (2) Technical amendment.--Subparagraph (D) of section 
        45C(b)(1) of such Code is amended by striking ``June 30, 1999'' 
        and inserting ``June 30, 2004''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after June 30, 1999.
    (b) Increase in Percentages Under Alternative Incremental Credit.--
            (1) In general.--Subparagraph (A) of section 41(c)(4) of 
        such Code is amended--
                    (A) by striking ``1.65 percent'' and inserting 
                ``2.65 percent'',
                    (B) by striking ``2.2 percent'' and inserting ``3.2 
                percent'', and
                    (C) by striking ``2.75 percent'' and inserting 
                ``3.75 percent''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after June 30, 1999.
    (c) Special Rule.--
            (1) In general.--For purposes of the Internal Revenue Code 
        of 1986, the credit determined under section 41 of such Code 
        which is attributable to the suspension period--
                    (A) shall not be taken into account under section 
                6654 or 6655 of such Code for any taxable year in 
                determining the amount of any installment the due date 
                for which is before October 1, 2000, and
                    (B) shall not be allowed for any taxable year 
                ending before October 1, 2000.
            (2) Suspension period.--For purposes of this subsection, 
        the suspension period is the period beginning on July 1, 1999, 
        and ending on September 30, 2000.
            (3) Suspended credit treated as payment of tax on october 
        1, 2000.--
                    (A) In general.--The amount of credit not allowed 
                by reason of paragraph (1) for any taxable year ending 
                before October 1, 2000, shall be treated as a payment 
                of tax imposed by chapter 1 of such Code for such 
                taxable year which is made on such date.
                    (B) Accelerated refunds.--If, as a result of the 
                payment referred to in subparagraph (A) with respect to 
                a taxable year, there is an overpayment of tax for such 
                year, the taxpayer may file an application for a 
                tentative refund of such overpayment. Such application 
                shall be in such manner and form, and contain such 
                information, as the Secretary may prescribe.
                    (C) Deadline for applications.--Subparagraph (B) 
                shall apply only to applications filed before October 
                1, 2001.
                    (D) Allowance of adjustments.--Not later than 90 
                days after the date on which an application is filed 
                under this paragraph, the Secretary shall--
                            (i) review the application,
                            (ii) determine the amount of the 
                        overpayment, and
                            (iii) apply, credit, or refund such 
                        overpayment,
                in a manner similar to the manner provided in section 
                6411(b) of such Code.
                    (E) Consolidated returns.--The provisions of 
                section 6411(c) of such Code shall apply to an 
                adjustment under this paragraph in such manner as the 
                Secretary may provide.
            (4) Credit attributable to suspension period.--
                    (A) In general.--For purposes of this subsection, 
                in the case of a taxable year which includes a portion 
                of the suspension period, the amount of credit 
                determined under section 41 of such Code for such 
                taxable year which is attributable to such period is 
                the amount which bears the same ratio to the amount of 
                credit determined under such section 41 for such 
                taxable year as the number of months in the suspension 
                period which are during such taxable year bears to the 
                number of months in such taxable year.
                    (B) Waiver of estimated tax penalties.--No addition 
                to tax shall be made under section 6654 or 6655 of such 
                Code for any period before July 1, 1999, with respect 
                to any underpayment of tax imposed by such Code to the 
                extent such underpayment was created or increased by 
                reason of subparagraph (A).
            (5) Secretary.--For purposes of this subsection, the term 
        ``Secretary'' means the Secretary of the Treasury (or such 
        Secretary's delegate).

SEC. 3. SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) In General.--Sections 953(e)(10) and 954(h)(9) of the Internal 
Revenue Code of 1986 (relating to application) are each amended--
            (1) by striking ``the first taxable year'' and inserting 
        ``taxable years'',
            (2) by striking ``January 1, 2000'' and inserting ``January 
        1, 2005'', and
            (3) by striking ``within which such'' and inserting 
        ``within which any such''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 4. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR MARGINAL 
              PRODUCTION.

    (a) In General.--Subparagraph (H) of section 613A(c)(6) of the 
Internal Revenue Code of 1986 (relating to temporary suspension of 
taxable limit with respect to marginal production) is amended by 
striking ``January 1, 2000'' and inserting ``January 1, 2005''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1999.

SEC. 5. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT.

    (a) Temporary Extension.--Sections 51(c)(4)(B) and 51A(f) of the 
Internal Revenue Code of 1986 (relating to termination) are each 
amended by striking ``June 30, 1999'' and inserting ``December 31, 
2001''.
    (b) Clarification of First Year of Employment.--Paragraph (2) of 
section 51(i) of such Code is amended by striking ``during which he was 
not a member of a targeted group''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after June 30, 
1999.
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