[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1357 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1357

 To amend the Internal Revenue Code of 1986 to permanently extend the 
            subpart F exemption for active financing income.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2001

   Mr. McCrery (for himself, Mr. Neal of Massachusetts, Mr. Brady of 
 Pennsylvania, Mr. Camp, Mr. Crane, Ms. Dunn, Mr. English, Mr. Foley, 
 Mr. Hayworth, Mr. Herger, Mr. Houghton, Mr. Hulshof, Mrs. Johnson of 
   Connecticut, Mr. Sam Johnson of Texas, Mr. Kleczka, Mr. Lewis of 
  Kentucky, Mr. Matsui, Mr. McDermott, Mr. McNulty, Mr. Pomeroy, Mr. 
Ramstad, Mr. Ryan of Wisconsin, Mr. Shaw, Mr. Tanner, Mr. Watkins, and 
 Mr. Weller) 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 permanently extend the 
            subpart F exemption for active financing income.

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

SECTION 1. PERMANENT SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) Banking, Financing, or Similar Businesses.--Subsection (h) of 
section 954 of the Internal Revenue Code of 1986 (relating to special 
rule for income derived in the active conduct of banking, financing, or 
similar businesses) is amended by striking paragraph (9).
    (b) Insurance Businesses.--Subsection (e) of section 953 of such 
Code (relating to exempt insurance income) is amended by striking 
paragraph (10) and by redesignating paragraph (11) as paragraph (10).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of a foreign corporation beginning after 
December 31, 2001, and to taxable years of United States shareholders 
with or within which such taxable years of such foreign corporation 
end.
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