[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3168 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3168

 To amend the Internal Revenue Code of 1986 to exclude from unrelated 
     business taxable income amounts set aside by a volunteer fire 
  department for the purchase of equipment for use by such department.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 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 exclude from unrelated 
     business taxable income amounts set aside by a volunteer fire 
  department for the purchase of equipment for use by such department.

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

SECTION 1. UNRELATED BUSINESS TAXABLE INCOME NOT TO INCLUDE AMOUNTS SET 
              ASIDE BY A VOLUNTEER FIRE DEPARTMENT FOR THE PURCHASE OF 
              EQUIPMENT.

    (a) In General.--Subsection (a) of section 512 of the Internal 
Revenue Code of 1986 (defining unrelated business taxable income) is 
amended by adding at the end the following new paragraph:
            ``(6) Amounts set aside by volunteer fire departments for 
        purchase of equipment.--In the case of a volunteer fire 
        department which meets the requirements of section 150(e), the 
        term `unrelated business taxable income' does not include any 
        amount which is set aside for the purpose of acquiring 
        equipment for the exclusive use of such department. If an 
        amount set aside under the preceding sentence is used during 
        the taxable year for a purpose other than the purpose described 
        in the preceding sentence, such amount shall be included under 
        paragraph (1) in unrelated business taxable income for the 
        taxable year.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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