[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1426 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1426

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
 ground rent paid on land on which a qualified residence of a taxpayer 
         is located and which is allotted or Indian-owned land.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2003

  Mr. Hayworth (for himself, Mr. Becerra, Mrs. Bono, and Mr. Kildee) 
 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 for 
 ground rent paid on land on which a qualified residence of a taxpayer 
         is located and which is allotted or Indian-owned land.

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

SECTION 1. DEDUCTION FOR GROUND RENT ON INDIAN-OWNED LAND, ETC., ON 
              WHICH A QUALIFIED RESIDENCE OF A TAXPAYER IS LOCATED.

    (a) In General.--Paragraph (3) of section 163(h) of the Internal 
Revenue Code of 1986 (defining qualified residence interest) is amended 
by adding at the end the following new subparagraph:
                    ``(E) Ground rent on indian-owned lands, etc.--
                            ``(i) In general.--Ground rent paid by a 
                        taxpayer during the taxable year on any lease 
                        of Indian lands shall be treated as qualified 
                        residence interest paid by the taxpayer if a 
                        qualified residence of the taxpayer is located 
                        on such lands.
                            ``(ii) Indian lands.--For purposes of 
                        clause (i), the term `Indian lands' means--
                                    ``(I) any land within the limits of 
                                an Indian reservation, pueblo, or 
                                rancheria,
                                    ``(II) any land not within the 
                                limits of an Indian reservation, 
                                pueblo, or rancheria whose title is 
                                held in trust by the United States for 
                                the benefit of an Indian tribe or one 
                                or more Indians (as an allotment or 
                                otherwise) or whose title is held by an 
                                Indian tribe or an Indian subject to 
                                restriction by the United States 
                                against alienation, and
                                    ``(III) any land within a dependent 
                                Indian community.
                        For purposes of the preceding sentence, the 
                        term `Indian tribe' means any Indian tribe, 
                        band, nation, or other organized group or 
                        community which is recognized as eligible for 
                        the special programs and services provided by 
                        the United States to Indians because of their 
                        status as Indians.''
    (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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