[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5723 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5723

 To amend the Internal Revenue Code of 1986 to exempt certain student 
loan financing businesses from treatment as personal holding companies.


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                    IN THE HOUSE OF REPRESENTATIVES

                           November 13, 2002

 Mr. McInnis 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 exempt certain student 
loan financing businesses from treatment as personal holding companies.

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

SECTION 1. CERTAIN STUDENT LOAN FINANCING BUSINESSES NOT TREATED AS 
              PERSONAL HOLDING COMPANIES.

    (a) In General.--Clause (i) of section 542(d)(1)(B) of the Internal 
Revenue Code of 1986 (defining lending or finance business) is amended 
by inserting after subclause (II) the following new subclause:
                                    ``(III) in the case of loans, the 
                                loans were made for the purpose of 
                                paying the costs of attendance at any 
                                eligible educational institution (as 
                                defined in section 221(d)(2)) or for 
                                the purpose of consolidating such 
                                loans, such loans (by their terms) are 
                                required to be repaid in not more than 
                                31 years, and more than half of the 
                                number of such loans which are held 
                                during the taxable year are serviced by 
                                the taxpayer or by a member of an 
                                affiliated group (as defined in section 
                                1504) which includes the taxpayer, 
                                or''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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