[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2087 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2087

To amend the Internal Revenue Code of 1986 to allow employers a credit 
 against income tax for the provision of independent investment advice 
                             to employees.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2002

  Mr. Bingaman (for himself and Ms. Collins) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
 against income tax for the provision of independent investment advice 
                             to employees.

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

SECTION 1. EMPLOYER-PROVIDED INDEPENDENT INVESTMENT ADVICE.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45G. EMPLOYER-PROVIDED INDEPENDENT INVESTMENT ADVICE.

    ``(a) General Rule.--For purposes of section 38, the employer-
provided independent investment advice credit determined under this 
section for the taxable year is an amount equal to 40 percent (60 
percent in the case any small employer (as defined in section 
220(c)(4))) of the qualified independent investment advice services 
paid for by the taxpayer in such taxable year.
    ``(b) Limitations.--For purposes of this section--
            ``(1) Services taken into account per employee.--The amount 
        of qualified independent investment advice services which may 
        be taken into account for any taxable year with respect to each 
        employee shall not exceed $50.
            ``(2) Total credit allowed per taxpayer.--The amount of the 
        employer-provided independent investment advice credit which is 
        allowable under subsection (a) in any taxable year (when added 
        to such credits allowed for all preceding taxable years) may 
        not exceed $50,000.
    ``(c) Qualified Independent Investment Advice Services.--For 
purposes of this section--
            ``(1) In general.--The term `qualified independent 
        investment advice services' means, with respect to any 
        employee, individualized independent investment advice services 
        provided by an independent investment adviser who certifies to 
        the taxpayer that such employee received such services.
            ``(2) Nondiscrimination.--Independent investment advice 
        services shall not be treated as qualified unless the provision 
        of such services (or the eligibility to receive such services) 
        does not discriminate in favor of employees of the taxpayer who 
        are highly compensated employees (within the meaning of section 
        414(q)).
    ``(d) Application of Rules.--For purposes of this section, the 
rules of section 45F(e) shall apply.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (14), by striking the period at the 
end of paragraph (15) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
            ``(16) the employer-provided independent investment advice 
        credit determined under section 45G(a).''.
    (c) Denial of Double Benefit.--Section 280C of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(d) Credit for Employer-Provided Independent Investment Advice.--
No deduction shall be allowed for that portion of the expenses 
otherwise allowable as a deduction for the taxable year which is equal 
to the amount of the credit determined for the taxable year under 
section 45G(a).''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

                              ``Sec. 45G. Employer-provided independent 
                                        investment advice.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred in the taxable years ending after 
the date of the enactment of this Act.
                                 <all>