[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 676 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 676

 To amend the Internal Revenue Code of 1986 to extend permanently the 
            subpart F exemption for active financing income.


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                   IN THE SENATE OF THE UNITED STATES

               April 2 (legislative day, March 30), 2001

  Mr. Hatch (for himself, Mr. Baucus, Mr. Ensign, Mr. Murkowski, Mr. 
Torricelli, Mr. Schumer, and Mr. Breaux) 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 extend permanently the 
            subpart F exemption for active financing income.

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

SECTION 1. PERMANENT SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) Banking, Financing, or Similar Businesses.--Section 954(h) of 
the Internal Revenue Code of 1986 (relating to special rule for income 
derived in the active conduct of banking, financing, or similar 
businesses) is amended by striking paragraph (9).
    (b) Insurance Businesses.--Section 953(e) of the Internal Revenue 
Code of 1986 (defining exempt insurance income) is amended by striking 
paragraph (10) and by redesignating paragraph (11) as paragraph (10).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of a foreign corporation beginning after 
December 31, 2001, and to taxable years of United States shareholders 
with or within which such taxable years of such foreign corporation 
end.
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