[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1116 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1116

 To amend the Internal Revenue Code of 1986 to exclude income from the 
    transportation of oil and gas by pipeline from subpart F income.


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                   IN THE SENATE OF THE UNITED STATES

                              May 25, 1999

  Mr. Nickles introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exclude income from the 
    transportation of oil and gas by pipeline from subpart F income.

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

SECTION 1. CLARIFICATION OF TREATMENT OF PIPELINE TRANSPORTATION 
              INCOME.

    (a) In General.--Section 954(g)(1) of the Internal Revenue Code of 
1986 (defining foreign base company oil related income) is amended by 
striking ``or'' at the end of subparagraph (A), by striking the period 
at the end of subparagraph (B) and inserting ``, or'', and by inserting 
after subparagraph (B) the following new subparagraph:
                    ``(C) the pipeline transportation of oil or gas 
                within such foreign country.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of controlled foreign corporations beginning after 
December 31, 1999, and taxable years of United States shareholders with 
or within which such taxable years of controlled foreign corporations 
end.
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