[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3704 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 3704

  To amend the Internal Revenue Code of 1986 to allow a deduction to 
                 individuals for credit card interest.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 7, 2002

Mr. Meeks of New York 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 allow a deduction to 
                 individuals for credit card interest.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Credit Card Compensation 
and Economic Incentive Act of 2002''.

SEC. 2. ALLOWANCE OF DEDUCTION FOR INDIVIDUALS FOR CREDIT CARD 
              INTEREST.

    (a) In General.--Paragraph (2) of section 163(h) of the Internal 
Revenue Code of 1986 (relating to disallowance of deduction for 
personal interest) is amended by striking ``and'' at the end of 
subparagraph (E), by striking the period and inserting ``, and'' at the 
end of subparagraph (F), and by adding at the end the following new 
subparagraph:
                    ``(G) interest paid on amounts charged to a credit 
                card during taxable years beginning after December 31, 
                2001, and before January 1, 2007.''.
    (b) Limitation.--Section 163(h) of such Code is amended by adding 
at the end the following new paragraph:
            ``(6) Limitation on credit card interest.--The amount of 
        interest which may be taken into account for purposes of 
        paragraph (2)(G) may not exceed $5,000 for any taxable year.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
taxable years beginning after December 31, 2001.
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