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





                                                 Union Calendar No. 199

106th CONGRESS

  1st Session

                               H. R. 2923

                          [Report No. 106-344]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 28, 1999

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 199
106th CONGRESS
  1st Session
                                H. R. 2923

                          [Report No. 106-344]

     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

                           September 28, 1999

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 23, 1999]

_______________________________________________________________________

                                 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,

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

SEC. 101. 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. 102. 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 otherwise allowable under such Code and which is 
        attributable to the suspension period shall not be taken into 
        account prior to October 1, 2000. On or after such date, such 
        credit may be taken into account through the filing of an 
        amended return, an application for expedited refund, an 
        adjustment of estimated taxes, or other means allowed by such 
        Code.
            (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) Expedited refunds.--
                    (A) In general.--If there is an overpayment of tax 
                with respect to a taxable year by reason of paragraph 
                (1), 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.
                    (B) Deadline for applications.--Subparagraph (A) 
                shall apply only to applications filed before October 
                1, 2001.
                    (C) 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.
                    (D) 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. 103. 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. 104. 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. 105. 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.

               TITLE II--OTHER TIME-SENSITIVE PROVISIONS

SEC. 201. ADVANCE PRICING AGREEMENTS TREATED AS CONFIDENTIAL TAXPAYER 
              INFORMATION.

    (a) In General.--
            (1) Treatment as return information.--Paragraph (2) of 
        section 6103(b) of the Internal Revenue Code of 1986 (defining 
        return information) is amended by striking ``and'' at the end 
        of subparagraph (A), by inserting ``and'' at the end of 
        subparagraph (B), and by inserting after subparagraph (B) the 
        following new subparagraph:
                    ``(C) any advance pricing agreement entered into by 
                a taxpayer and the Secretary and any background 
                information related to such agreement or any 
                application for an advance pricing agreement,''.
            (2) Exception from public inspection as written 
        determination.--Paragraph (1) of section 6110(b) of such Code 
        (defining written determination) is amended by adding at the 
        end the following new sentence: ``Such term shall not include 
        any advance pricing agreement entered into by a taxpayer and 
        the Secretary and any background information related to such 
        agreement or any application for an advance pricing 
        agreement.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) Annual Report Regarding Advance Pricing Agreements.--
            (1) In general.--Not later than 90 days after the end of 
        each calendar year, the Secretary of the Treasury shall prepare 
        and publish a report regarding advance pricing agreements.
            (2) Contents of report.--The report shall include the 
        following for the calendar year to which such report relates:
                    (A) Information about the structure, composition, 
                and operation of the advance pricing agreement program 
                office.
                    (B) A copy of each model advance pricing agreement.
                    (C) The number of--
                            (i) applications filed during such calendar 
                        year for advanced pricing agreements;
                            (ii) advance pricing agreements executed 
                        cumulatively to date and during such calendar 
                        year;
                            (iii) renewals of advanced pricing 
                        agreements issued;
                            (iv) pending requests for advance pricing 
                        agreements;
                            (v) pending renewals of advance pricing 
                        agreements;
                            (vi) for each of the items in clauses (ii) 
                        through (v), the number that are unilateral, 
                        bilateral, and multilateral, respectively;
                            (vii) advance pricing agreements revoked or 
                        canceled, and the number of withdrawals from 
                        the advance pricing agreement program; and
                            (viii) advanced pricing agreements 
                        finalized or renewed by industry.
                    (D) General descriptions of--
                            (i) the nature of the relationships between 
                        the related organizations, trades, or 
                        businesses covered by advance pricing 
                        agreements;
                            (ii) the covered transactions and the 
                        business functions performed and risks assumed 
                        by such organizations, trades, or businesses;
                            (iii) the related organizations, trades, or 
                        businesses whose prices or results are tested 
                        to determine compliance with transfer pricing 
                        methodologies prescribed in advanced pricing 
                        agreements;
                            (iv) methodologies used to evaluate tested 
                        parties and transactions and the circumstances 
                        leading to the use of those methodologies;
                            (v) critical assumptions made and sources 
                        of comparables used;
                            (vi) comparable selection criteria and the 
                        rationale used in determining such criteria;
                            (vii) the nature of adjustments to 
                        comparables or tested parties;
                            (viii) the nature of any ranges agreed to, 
                        including information regarding when no range 
                        was used and why, when interquartile ranges 
                        were used, and when there was a statistical 
                        narrowing of the comparables;
                            (ix) adjustment mechanisms provided to 
                        rectify results that fall outside of the agreed 
                        upon advance pricing agreement range;
                            (x) the various term lengths for advance 
                        pricing agreements, including rollback years, 
                        and the number of advance pricing agreements 
                        with each such term length;
                            (xi) the nature of documentation required; 
                        and
                            (xii) approaches for sharing of currency or 
                        other risks.
                    (E) Statistics regarding the amount of time taken 
                to complete new and renewal advance pricing agreements.
                    (F) A detailed description of the Secretary of the 
                Treasury's efforts to ensure compliance with existing 
                advance pricing agreements.
            (3) Confidentiality.--The reports required by this 
        subsection shall be treated as authorized by the Internal 
        Revenue Code of 1986 for purposes of section 6103 of such Code, 
        but the reports shall not include information--
                    (A) which would not be permitted to be disclosed 
                under section 6110(c) of such Code if such report were 
                a written determination as defined in section 6110 of 
                such Code, or
                    (B) which can be associated with, or otherwise 
                identify, directly or indirectly, a particular 
                taxpayer.
            (4) First report.--The report for calendar year 1999 shall 
        include prior calendar years after 1990.
    (c) Regulations.--The Secretary of the Treasury or the Secretary's 
delegate shall prescribe such regulations as may be necessary or 
appropriate to carry out the purposes of section 6103(b)(2)(C), and the 
last sentence of section 6110(b)(1), of the Internal Revenue Code of 
1986, as added by this section.

SEC. 202. INCLUSION OF CERTAIN VACCINES AGAINST STREPTOCOCCUS 
              PNEUMONIAE TO LIST OF TAXABLE VACCINES.

    (a) Inclusion of Vaccines.--
            (1) In general.--Section 4132(a)(1) of the Internal Revenue 
        Code of 1986 (defining taxable vaccine) is amended by adding at 
        the end the following new subparagraph:
                    ``(L) Any conjugate vaccine against streptococcus 
                pneumoniae.''.
            (2) Effective date.--
                    (A) Sales.--The amendment made by this subsection 
                shall apply to vaccine sales beginning on the day after 
                the date on which the Centers for Disease Control makes 
                a final recommendation for routine administration to 
                children of any conjugate vaccine against streptococcus 
                pneumoniae, but shall not take effect if subsection (b) 
                does not take effect.
                    (B) Deliveries.--For purposes of subparagraph (A), 
                in the case of sales on or before the date described in 
                such subparagraph for which delivery is made after such 
                date, the delivery date shall be considered the sale 
                date.
    (b) Vaccine Tax and Trust Fund Amendments.--
            (1) Sections 1503 and 1504 of the Vaccine Injury 
        Compensation Program Modification Act (and the amendments made 
        by such sections) are hereby repealed.
            (2) Subparagraph (A) of section 9510(c)(1) is amended by 
        striking ``August 5, 1997'' and inserting ``October 21, 1998''.
            (3) The amendments made by this subsection shall take 
        effect as if included in the provisions of the Tax and Trade 
        Relief Extension Act of 1998 to which they relate.
    (c) Report.--Not later than December 31, 1999, the Comptroller 
General of the United States shall prepare and submit a report to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate on the operation of the Vaccine 
Injury Compensation Trust Fund and on the adequacy of such Fund to meet 
future claims made under the Vaccine Injury Compensation Program.

SEC. 203. AUTHORITY TO POSTPONE CERTAIN TAX-RELATED DEADLINES BY REASON 
              OF Y2K FAILURES.

    (a) In General.--In the case of a taxpayer determined by the 
Secretary of the Treasury (or the Secretary's delegate) to be affected 
by a Y2K failure, the Secretary may disregard a period of up to 90 days 
in determining, under the internal revenue laws, in respect of any tax 
liability (including any interest, penalty, additional amount, or 
addition to the tax) of such taxpayer--
            (1) whether any of the acts described in paragraph (1) of 
        section 7508(a) of the Internal Revenue Code of 1986 (without 
        regard to the exceptions in parentheses in subparagraphs (A) 
        and (B)) were performed within the time prescribed therefor, 
        and
            (2) the amount of any credit or refund.
    (b) Applicability of Certain Rules.--For purposes of this section, 
rules similar to the rules of subsections (b) and (e) of section 7508 
of the Internal Revenue Code of 1986 shall apply.

                       TITLE III--REVENUE OFFSET

SEC. 301. MODIFICATION OF ESTIMATED TAX SAFE HARBOR.

          (a) In General.--The table contained in clause (i) of section 
6654(d)(1)(C) of the Internal Revenue Code of 1986 (relating to 
limitation on use of preceding year's tax) is amended by striking the 
item relating to 1999 or 2000 and inserting the following new items:

    ``1999........................................               108.5 
    2000..........................................               106''.

          (b) Effective Date.--The amendment made by this section shall 
apply with respect to any installment payment for taxable years 
beginning after December 31, 1999.