[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1305 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1305

To amend the Internal Revenue Code of 1986 to provide for the treatment 
        of certain motor vehicle dealer transitional assistance.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 20, 2003

   Mr. Bingaman (for himself, Mr. Hatch, Mr. Baucus, Mr. Conrad, Mr. 
    Breaux, Ms. Snowe, Mrs. Lincoln, and Mr. Smith) 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 provide for the treatment 
        of certain motor vehicle dealer transitional assistance.

    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.

    (a) In General.--For purposes of subtitle A of the Internal Revenue 
Code of 1986, in the case of a taxpayer who elects the application of 
this section and 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 
        (hereafter in this section referred to as ``termination 
        payment'') are considered to be received for property used in 
        the trade or business of a motor vehicle retail sales and 
        service dealership, and
            (2) to the extent such termination payment is reinvested in 
        property used in a motor vehicle retail sales and service 
        dealership located within the United States, such property 
        shall qualify as like-kind replacement property to which 
        section 1031 of the Internal Revenue Code of 1986 shall apply 
        with the following modifications:
                    (A) Such section shall be applied without regard to 
                subparagraphs (A) and (B)(ii) of subsection (a)(3).
                    (B) The period described in section 1031(a)(3)(B) 
                of such Code shall be applied by substituting ``2 
                years'' for ``180 days''.
    (b) Rules for Election.--
            (1) Form of election.--The taxpayer shall make an election 
        under this section in such form and manner as the Secretary of 
        the Treasury may prescribe and shall include in such election 
        the amount of the termination payment received, the 
        identification of the replacement property purchased, and such 
        other information as the Secretary may prescribe.
            (2) Election on amended return.--The Secretary of the 
        Treasury shall permit an election under this section on an 
        amended tax return for taxable years beginning before the date 
        of the enactment of this Act.
    (c) Statute of Limitations.--Notwithstanding the provisions of any 
other law or rule of law, the statutory period for the assessment for 
any deficiency attributable to any termination payment gain shall be 
extended until 3 years after the date the Secretary of the Treasury is 
notified by the taxpayer of the like-kind replacement property or an 
intention not to replace.
    (d) Effective Date.--This section shall apply to amounts received 
after December 12, 2000, in taxable years ending after such date.

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