[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3056 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3056

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  certain profits of businesses operated in connection with a public-
private partnership with Centers of Industrial and Technical Excellence 
               established by the Department of Defense.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 15, 2000

  Mr. Inhofe 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 from gross income 
  certain profits of businesses operated in connection with a public-
private partnership with Centers of Industrial and Technical Excellence 
               established by the Department of Defense.

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

SECTION 1. EXCLUSION FROM GROSS INCOME OF CERTAIN INCOME FROM PUBLIC-
              PRIVATE PARTNERSHIP WITH CENTERS OF INDUSTRIAL AND 
              TECHNICAL EXCELLENCE.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
140 and by inserting after section 138 the following new section:

``SEC. 139. CERTAIN INCOME FROM PUBLIC-PRIVATE PARTNERSHIP WITH CENTERS 
              OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    ``(a) In General.--Gross income does not include an amount equal to 
50 percent of any qualified net profits derived during the taxable year 
by a taxpayer engaged in a public-private partnership described in 
subsection (c).
    ``(b) Limitations.--The amount excluded under subsection (a) for 
any taxable year shall not exceed $1,000,000.
    ``(c) Public-Private Partnership.--A taxpayer is engaged in a 
public-private partnership under this subsection if such taxpayer 
enters into a public-private cooperative arrangement with a Center of 
Industrial and Technical Excellence under section 2474 of title 10, 
United States Code, for the taxable year.
    ``(d) Definition of Qualified Net Profits.--For purposes of this 
section, the term `qualified net profits' means, with respect to any 
taxable year, an amount equal to the excess (if any) of--
            ``(1) the gross income of the taxpayer for such taxable 
        year attributable to additional work (within the meaning of 
        section 2474(d) of title 10, United States Code) performed 
        under the public-private partnership, over
            ``(2) any deductions allocable to such income.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 139 and inserting the following:

                              ``Sec. 139. Certain income from public-
                                        private partnership with 
                                        Centers of Industrial and 
                                        Technical Excellence.
                              ``Sec. 140. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received in taxable years beginning after December 31, 
2000.
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