[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2726 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2726

  To treat certain motor vehicle dealer transitional assistance as an 
            involuntary conversion, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                July 12 (legislative day, July 10), 2002

 Mr. Bingaman (for himself, Mr. Breaux, Mr. Conrad, and Mrs. Lincoln) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To treat certain motor vehicle dealer transitional assistance as an 
            involuntary conversion, and for other purposes.

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

SECTION 1. MOTOR VEHICLE DEALER TRANSITIONAL ASSISTANCE TREATED AS AN 
              INVOLUNTARY CONVERSION.

    (a) In General.--For purposes of subtitle A of the Internal Revenue 
Code of 1986, in the case of a taxpayer who was a party to a motor 
vehicle sales and service agreement with a motor vehicle manufacturer 
who announced in December 2000 that it would phase-out the motor 
vehicle brand to which such agreement relates--
            (1) amounts received by such taxpayer from such 
        manufacturer on account of the termination of such agreement 
        shall be treated as received in an involuntary conversion to 
        which section 1033 of such Code applies, and
            (2) the period described in section 1033(a)(2)(B) of such 
        Code shall begin on December 12, 2000.
    (b) Character of Converted Property.--In applying section 1033 of 
such Code for purposes of this section, the property involuntarily 
converted shall be treated as being property used in the trade or 
business of a motor vehicle retail sales and service dealership.
    (c) Effective Date.--This section shall apply to amounts received 
after December 12, 2000, in taxable years ending after such date.
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