[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4381 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4381

   To amend the Internal Revenue Code of 1986 to provide that income 
averaging for farmers shall be applied by taking into account negative 
              taxable income during the base period years.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2000

  Mr. Green of Wisconsin (for himself and Mr. Nussle) 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 provide that income 
averaging for farmers shall be applied by taking into account negative 
              taxable income during the base period years.

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

SECTION 1. NEGATIVE BASE PERIOD TAXABLE INCOME TAKEN INTO ACCOUNT UNDER 
              INCOME AVERAGING FOR FARMERS.

    (a) In General.--Section 1301 of the Internal Revenue Code of 1986 
(relating to averaging of farm income) is amended by redesignating 
subsection (c) as subsection (d) and by inserting after subsection (b) 
the following new subsection:
    ``(c) Negative Base Period Taxable Income Taken Into Account.--In 
the case of any prior taxable year referred to in subsection (a)(2), 
any excess of--
            ``(1) the deductions allowed by this chapter for such 
        taxable year reduced by the net operating loss (as defined in 
        section 172(c)) for such year, over
            ``(2) the gross income for such year,
shall be taken into account as negative taxable income.''
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendments made by section 933 of the 
Taxpayer Relief Act of 1997.
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