[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1816 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1816

 To amend the Internal Revenue Code of 1986 to allow the manufacturing 
   deduction provided by the American Jobs Creation Act of 2004 with 
  respect to income attributable to domestic production activities in 
                              Puerto Rico.


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                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2005

 Mr. Santorum 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 allow the manufacturing 
   deduction provided by the American Jobs Creation Act of 2004 with 
  respect to income attributable to domestic production activities in 
                              Puerto Rico.

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

SECTION 1. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subsection (d) of section 199 of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) is 
amended by redesignating paragraph (7) as paragraph (8) and by 
inserting after paragraph (6) the following new paragraph:
            ``(7) Treatment of activities in puerto rico.--In the case 
        of any taxpayer with gross receipts for any taxable year from 
        sources within the Commonwealth of Puerto Rico, if all of such 
        receipts are taxable under section 1 or 11 for such taxable 
        year, then for purposes of determining the domestic production 
        gross receipts of such taxpayer for such taxable year under 
        subsection (c)(4), the term `United States' shall include the 
        Commonwealth of Puerto Rico.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2005.
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