[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2431 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2431

  To amend the Internal Revenue Code of 1986 to provide that certain 
 amounts received by electric energy, gas, or steam utilities shall be 
        excluded from gross income as contributions to capital.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2001

   Mr. Watkins of Oklahoma 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 certain 
 amounts received by electric energy, gas, or steam utilities shall be 
        excluded from gross income as contributions to capital.

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

SECTION 1. CERTAIN AMOUNTS RECEIVED BY ELECTRIC ENERGY, GAS, OR STEAM 
              UTILITIES EXCLUDED FROM GROSS INCOME AS CONTRIBUTIONS TO 
              CAPITAL.

    (a) In General.--Subsection (c) of section 118 of the Internal 
Revenue Code of 1986 (relating to special rules for water and sewerage 
disposal utilities) is amended--
            (1) in the heading, by striking ``Water and Sewerage 
        Disposal'' and inserting ``Certain'',
            (2) in paragraph (1)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``water or'' and inserting ``electric energy, 
                gas (through a local distribution system or 
                transportation by pipeline), steam, water, or'', and
                    (B) in subparagraph (B), by striking ``water or'' 
                and inserting ``electric energy, gas, steam, water, 
                or'',
            (3) in paragraph (2)(A)(ii), by striking ``water or'' and 
        inserting ``electric energy, gas, steam, water, or'', and
            (4) in paragraph (3)--
                    (A) in subparagraph (A), by inserting ``such term 
                shall include amounts paid as customer connection fees 
                (including amounts paid to connect the customer's line 
                to an electric line, a gas main, a steam line, or a 
                main water or sewer line) and'' after ``except that'', 
                and
                    (B) in subparagraph (C), by striking ``water or'' 
                and inserting ``electric energy, gas, steam, water, 
                or''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to amounts received after the date of the enactment of this Act.
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