[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 544 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 544

To amend the Internal Revenue Code of 1986 to increase the small issuer 
  exemption from pro rata allocation of interest expense of financial 
                  institutions to tax-exempt interest.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1999

  Mr. Hayworth (for himself and Mr. Lewis of Georgia) 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 increase the small issuer 
  exemption from pro rata allocation of interest expense of financial 
                  institutions to tax-exempt interest.

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

SECTION 1. INCREASE IN SMALL ISSUER EXEMPTION FROM PRO RATA ALLOCATION 
              OF INTEREST EXPENSE OF FINANCIAL INSTITUTIONS TO TAX-
              EXEMPT INTEREST.

    (a) In General.--Subparagraphs (C) and (D) of section 265(b)(3) of 
the Internal Revenue Code of 1986 (pro rata allocation of interest 
expense of financial institutions to tax-exempt interest) are each 
amended by striking ``$10,000,000'' each place it appears and inserting 
``$25,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to bonds issued after the date of the enactment of this Act.
                                 <all>