[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4297 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4297
To provide for reconciliation pursuant to section 201(b) of the
concurrent resolution on the budget for fiscal year 2006.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 10, 2005
Mr. Thomas introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to section 201(b) of the
concurrent resolution on the budget for fiscal year 2006.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. AMENDMENT OF 1986 CODE, ETC.
(a) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Amendment of 1986 Code, etc.
TITLE I--EXTENSIONS OF CERTAIN PROVISIONS THROUGH 2006
Sec. 101. Allowance of nonrefundable personal credits against regular
and minimum tax liability.
Sec. 102. State and local general sales taxes.
Sec. 103. Research credit.
Sec. 104. Qualified tuition and related expenses.
Sec. 105. Certain expenses of elementary and secondary school teachers.
Sec. 106. Qualified Zone Academy Bonds.
Sec. 107. Tax incentives for business activities on Indian
reservations.
Sec. 108. Deduction for corporate donations of computer technology and
equipment.
Sec. 109. Availability of medical savings accounts.
Sec. 110. 15-year cost recovery for leasehold improvements.
Sec. 111. 15-year cost recovery for restaurant improvements.
Sec. 112. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal
properties.
Sec. 113. District of Columbia Enterprise Zone.
Sec. 114. Possession tax credit with respect to American Samoa.
Sec. 115. Parity in the application of certain limits to mental health
benefits.
Sec. 116. Authority for undercover operations.
TITLE II--OTHER EXTENSIONS AND MODIFICATIONS
Sec. 201. Work opportunity credit and welfare-to-work credit.
Sec. 202. Expensing of environmental remediation costs.
Sec. 203. Controlled foreign corporations.
TITLE III--EXTENSIONS OF CERTAIN PROVISIONS THROUGH 2010
Sec. 301. Saver's credit.
Sec. 302. Increased expensing for small business.
Sec. 303. Capital gains and dividends rates.
TITLE I--EXTENSIONS OF CERTAIN PROVISIONS THROUGH 2006
SEC. 101. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST REGULAR
AND MINIMUM TAX LIABILITY.
(a) In General.--Paragraph (2) of section 26(a) (relating to
special rule for taxable years 2000 through 2005) is amended--
(1) in the text by striking ``or 2005'' and inserting
``2005, or 2006'', and
(2) in the heading by striking ``2005'' and inserting
``2006''.
(b) Conforming Provisions.--
(1) Subsection (i) of section 904 (relating to coordination
with nonrefundable personal credits) is amended by striking
``or 2005'' and inserting ``2005, or 2006''.
(2) The amendments made by sections 201(b), 202(f), and
618(b) of the Economic Growth and Tax Relief Reconciliation Act
of 2001 shall not apply to taxable years beginning during 2006.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 102. STATE AND LOCAL GENERAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) (relating to
application of paragraph) is amended by striking ``January 1, 2006''
and inserting ``January 1, 2007''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2005.
SEC. 103. RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (B) of section 41(h)(1)
(relating to termination) is amended by striking ``December 31,
2005'' and inserting ``December 31, 2006''.
(2) Conforming amendment.--Subparagraph (D) of section
45C(b)(1) (relating to special rule) is amended by striking
``December 31, 2005'' and inserting ``December 31, 2006''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2005.
SEC. 104. QUALIFIED TUITION AND RELATED EXPENSES.
(a) In General.--Subsection (e) of section 222 (relating to
termination) is amended by striking ``December 31, 2005'' and inserting
``December 31, 2006''.
(b) Limitations.--Paragraph (2) of section 222(b) (relating to
applicable dollar limit) is amended by striking subparagraphs (A) and
(B), by redesignating subparagraph (C) as subparagraph (B), and by
inserting before subparagraph (B) (as so redesignated) the following:
``(A) 2006.--In the case of a taxable year
beginning in 2006, the applicable dollar amount shall
be equal to--
``(i) in the case of a taxpayer whose
adjusted gross income for the taxable year does
not exceed $65,000 ($130,000 in the case of a
joint return), $4,000,
``(ii) in the case of a taxpayer not
described in clause (i) whose adjusted gross
income for the taxable year does not exceed
$80,000 ($160,000 in the case of a joint
return), $2,000, and
``(iii) in the case of any other taxpayer,
zero.''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made in taxable years beginning after December 31,
2005.
SEC. 105. CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) (relating to
certain expenses of elementary and secondary school teachers) is
amended by striking ``or 2005'' and inserting ``2005, or 2006''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to expenses paid or incurred in taxable years beginning after
December 31, 2005.
SEC. 106. QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) (relating to
national limit) is amended by striking ``and 2005'' and inserting
``2005, and 2006''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to obligations issued after December 31, 2005.
SEC. 107. TAX INCENTIVES FOR BUSINESS ACTIVITIES ON INDIAN
RESERVATIONS.
(a) Indian Employment Tax Credit.--
(1) In general.--Subsection (f) of section 45A (relating to
termination) is amended by striking ``December 31, 2005'' and
inserting ``December 31, 2006''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to taxable years beginning after December 31, 2005.
(b) Accelerated Depreciation for Business Property on Indian
Reservations.--
(1) In general.--Paragraph (8) of section 168(j) (relating
to termination) is amended by striking ``December 31, 2005''
and inserting ``December 31, 2006''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to property placed in service after
December 31, 2005.
SEC. 108. DEDUCTION FOR CORPORATE DONATIONS OF COMPUTER TECHNOLOGY AND
EQUIPMENT.
(a) In General.--Subparagraph (G) of section 170(e)(6) (relating to
termination) is amended by striking ``December 31, 2005'' and inserting
``December 31, 2006''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to contributions made in taxable years beginning after December
31, 2005.
SEC. 109. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section 220(i)
(defining cut-off year) are each amended by striking ``2005'' each
place it appears in the text and headings and inserting ``2006''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended--
(A) in the text by striking ``or 2004'' each place
it appears and inserting ``2004, or 2005'', and
(B) in the heading by striking ``or 2004'' and
inserting ``2004, or 2005''.
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2004'' and inserting ``2004, and 2005''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
(d) Time for Filing Reports, Etc.--
(1) The report required by section 220(j)(4) of the
Internal Revenue Code of 1986 to be made on August 1, 2005,
shall be treated as timely if made before the close of the 90-
day period beginning on the date of the enactment of this Act.
(2) The determination and publication required by section
220(j)(5) of such Code with respect to calendar year 2005 shall
be treated as timely if made before the close of the 120-day
period beginning on the date of the enactment of this Act. If
the determination under the preceding sentence is that 2005 is
a cut-off year under section 220(i) of such Code, the cut-off
date under such section 220(i) shall be the last day of such
120-day period.
SEC. 110. 15-YEAR COST RECOVERY FOR LEASEHOLD IMPROVEMENTS.
(a) In General.--Clause (iv) of section 168(e)(3)(E) (relating to
15-year property) is amended by striking ``January 1, 2006'' and
inserting ``January 1, 2007''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to property placed in service after December 31, 2005.
SEC. 111. 15-YEAR COST RECOVERY FOR RESTAURANT IMPROVEMENTS.
(a) In General.--Clause (v) of section 168(e)(3)(E) (relating to
15-year property) is amended by striking ``January 1, 2006'' and
inserting ``January 1, 2007''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to property placed in service after December 31, 2005.
SEC. 112. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR OIL AND
NATURAL GAS PRODUCED FROM MARGINAL PROPERTIES.
(a) In General.--Subparagraph (H) of section 613A(c)(6) (relating
to oil and natural gas produced from marginal properties) is amended by
striking ``January 1, 2006'' and inserting ``January 1, 2007''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2005.
SEC. 113. DISTRICT OF COLUMBIA ENTERPRISE ZONE.
(a) Period for Which Designation Applicable.--Subsection (f) of
section 1400 (relating to time for which designation applicable) is
amended by striking ``December 31, 2005'' both places it appears and
inserting ``December 31, 2006''.
(b) Tax-Exempt Economic Development Bonds.--Subsection (b) of
section 1400A (relating to period of applicability) is amended by
striking ``December 31, 2005'' and inserting ``December 31, 2006''.
(c) Zero Percent Capital Gains Rate.--
(1) In general.--Subsection (b) of section 1400B (relating
to DC Zone Asset) is amended by striking ``January 1, 2006''
each place it appears and inserting ``January 1, 2007''.
(2) Conforming amendments.--
(A) Paragraph (2) of section 1400B(e) (relating to
gain before 1998 and after 2010 not qualified) is
amended--
(i) by striking ``December 31, 2010'' and
inserting ``December 31, 2011'', and
(ii) by striking ``2010'' in the heading
and inserting ``2011''.
(B) Paragraph (2) of section 1400B(g) (relating to
sales and exchanges of interests in partnerships and S
corporations which are DC Zone businesses) is amended
by striking ``December 31, 2010'' and inserting
``December 31, 2011''.
(C) Subsection (d) of section 1400F (relating to
certain rules to apply) is amended by striking
``December 31, 2010'' and inserting ``December 31,
2011''.
(d) First-Time Homebuyer Credit for District of Columbia.--
Subsection (i) of section 1400C (relating to application of section) is
amended by striking ``January 1, 2006'' and inserting ``January 1,
2007''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on January 1,
2006.
(2) Tax-exempt economic development bonds.--The amendment
made by subsection (b) shall apply to obligations issued after
the date of the enactment of this Act.
SEC. 114. POSSESSION TAX CREDIT WITH RESPECT TO AMERICAN SAMOA.
(a) In General.--Subparagraph (A) of section 936(j)(8) (relating to
special rules for certain possessions) is amended by inserting before
the period at the end the following: ``(before January 1, 2007, in the
case of American Samoa)''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2005.
SEC. 115. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH
BENEFITS.
(a) In General.--Paragraph (3) of section 9812(f) (relating to
application of section) is amended by striking ``December 31, 2005''
and inserting ``December 31, 2006''.
(b) Effective Dates.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act.
SEC. 116. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application of
section) is amended by striking ``January 1, 2006'' both places is
appears and inserting ``January 1, 2007''.
TITLE II--OTHER EXTENSIONS AND MODIFICATIONS
SEC. 201. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT.
(a) Extension of Work Opportunity Credit.--Paragraph (4) of section
51(c) (relating to termination) is amended by striking ``December 31,
2005'' and inserting ``December 31, 2007''.
(b) Consolidation of Work Opportunity Credit With Welfare-to-Work
Credit.--
(1) In general.--Paragraph (1) of section 51(d) (relating
to members of targeted groups) is amended by striking ``or'' at
the end of subparagraph (G), by striking the period at the end
of subparagraph (H) and inserting ``, or'', and by adding at
the end the following new subparagraph:
``(I) a long-term family assistance recipient.''
(2) Long-term family assistance recipient.--Subsection (d)
of section 51 (relating to members of targeted groups) is
amended by redesignating paragraphs (10) through (12) as
paragraphs (11) through (13), respectively, and by inserting
after paragraph (9) the following new paragraph:
``(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual
who is certified by the designated local agency--
``(A) as being a member of a family receiving
assistance under a IV-A program (as defined in
paragraph (2)(B)) for at least the 18-month period
ending on the hiring date,
``(B)(i) as being a member of a family receiving
such assistance for 18 months beginning after August 5,
1997, and
``(ii) as having a hiring date which is not more
than 2 years after the end of the earliest such 18-
month period, or
``(C)(i) as being a member of a family which ceased
to be eligible for such assistance by reason of any
limitation imposed by Federal or State law on the
maximum period such assistance is payable to a family,
and
``(ii) as having a hiring date which is not more
than 2 years after the date of such cessation.''
(3) Repeal of separate welfare-to-work credit.--
(A) In general.--Section 51A is hereby repealed.
(B) Clerical amendment.--The table of sections for
subpart F of part IV of subchapter A of chapter 1 is
amended by striking the item relating to section 51A.
(c) Repeal of Income Test for Ex-Felons.--Paragraph (4) of section
51(d) (relating to qualified ex-felon) is amended--
(1) by inserting ``and'' at the end of subparagraph (A),
and
(2) by striking ``, and'' at the end of subparagraph (B)
and all that follows through the end of the paragraph and
inserting a period.
(d) Increase in Age Limit for Food Stamp Recipients.--Clause (i) of
section 51(d)(8)(A) (relating to qualified food stamp recipient) is
amended by striking ``25'' and inserting ``35''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after December 31,
2005.
SEC. 202. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) Extension of Termination Date.--Subsection (h) of section 198
(relating to termination) is amended by striking ``December 31, 2005''
and inserting ``December 31, 2007''.
(b) Petroleum Products Treated as Hazardous Substance.--Paragraph
(1) of section 198(d) (relating to hazardous substance) is amended by
striking ``and'' at the end of subparagraph (A), by striking the period
at the end of subparagraph (B) and inserting ``, and'', and by adding
at the end the following new subparagraph:
``(C) any petroleum product (as defined in section
4612(a)(3)).''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred after December 31, 2005.
SEC. 203. CONTROLLED FOREIGN CORPORATIONS.
(a) Subpart F Exception for Active Financing.--
(1) Exempt insurance income.--Paragraph (10) of section
953(e) (relating to application) is amended--
(A) by striking ``January 1, 2007'' and inserting
``January 1, 2009'', and
(B) by striking ``December 31, 2006'' and inserting
``December 31, 2008''.
(2) Exception to treatment as foreign personal holding
company income.--Paragraph (9) of section 954(h) (relating to
application) is amended by striking ``January 1, 2007'' and
inserting ``January 1, 2009''.
(b) Look-Through Treatment of Payments Between Related Controlled
Foreign Corporations Under the Foreign Personal Holding Company
Rules.--Subsection (c) of section 954 (relating to foreign personal
holding company income) is amended by adding at the end the following
new paragraph:
``(6) Look-thru rule for related controlled foreign
corporations.--
``(A) In general.--For purposes of this subsection,
dividends, interest, rents, and royalties received or
accrued from a controlled foreign corporation which is
a related person shall not be treated as foreign
personal holding company income to the extent
attributable or properly allocable (determined under
rules similar to the rules of subparagraphs (C) and (D)
of section 904(d)(3)) to income of the related person
which is not subpart F income. For purposes of this
subparagraph, interest shall include factoring income
which is treated as income equivalent to interest for
purposes of paragraph (1)(E). The Secretary shall
prescribe such regulations as may be appropriate to
prevent the abuse of the purposes of this paragraph.
``(B) Application.--Subparagraph (A) shall apply to
taxable years of foreign corporations beginning after
December 31, 2005, and before January 1, 2009, and to
taxable years of United States shareholders with or
within which such taxable years of foreign corporations
end.''.
TITLE III--EXTENSIONS OF CERTAIN PROVISIONS THROUGH 2010
SEC. 301. SAVER'S CREDIT.
Subsection (h) of section 25B (relating to elective deferrals and
IRA contributions by certain individuals) is amended by striking
``December 31, 2006'' and inserting ``December 31, 2010''.
SEC. 302. INCREASED EXPENSING FOR SMALL BUSINESS.
Subsections (b)(1), (b)(2), (b)(5), (c)(2), and (d)(1)(A)(ii) of
section 179(b) (relating to election to expense certain depreciable
business assets) are each amended by striking ``2008'' and inserting
``2011''.
SEC. 303. CAPITAL GAINS AND DIVIDENDS RATES.
Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of
2003 is amended by striking ``December 31, 2008'' and inserting
``December 31, 2010''.
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