[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2130 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2130

 To amend the Internal Revenue Code of 1986 to provide that any water 
and sewerage disposal property conveyed under the Department of Defense 
privatization program shall be treated as a nontaxable contribution to 
                     the capital of the recipient.


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                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2001

 Mr. Sam Johnson  of Texas (for himself and Mr. Matsui) 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 any water 
and sewerage disposal property conveyed under the Department of Defense 
privatization program shall be treated as a nontaxable contribution to 
                     the capital of the recipient.

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

SECTION 1. WATER AND SEWERAGE DISPOSAL PROPERTY CONVEYED UNDER MILITARY 
              PRIVATIZATION PROGRAM TREATED AS CONTRIBUTIONS TO 
              CAPITAL.

    (a) In General.--Section 118 of the Internal Revenue Code of 1986 
(relating to contributions to the capital of a corporation) is amended 
by redesignating subsection (e) as subsection (f) and by inserting 
after subsection (d) the following new subsection:
    ``(f) Special Rule for Water and Sewerage Disposal Property 
Conveyed Under Military Privatization Program.--For purposes of this 
section, the term `contribution to the capital of the taxpayer' 
includes any property--
            ``(1) which provides water or sewerage disposal services, 
        and
            ``(2) which is received by any entity under section 2688 of 
        title 10, United States Code.''
    (b) Effective Date.--The amendment made by this section shall apply 
to property conveyed after the date of the enactment of this Act.
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