[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1818 Introduced in Senate (IS)]


109th CONGRESS
  1st Session
                                S. 1818

 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 any 
        possession of the United States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2005

 Mr. Kerry (for himself, Mr. Schumer, and Mrs. Clinton) 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 any 
        possession of the United States, and for other purposes.

    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 POSSESSIONS.

    (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) Possessions, etc.--
                    ``(A) Determination of domestic production gross 
                receipts.--In the case of any taxpayer with gross 
                receipts for any taxable year from sources within any 
                possession of the United States, 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 possessions of the 
                United States.
                    ``(B) Special rule for applying wage limitation.--
                In the case of any taxpayer described in subparagraph 
                (A), for purposes of applying the limitation under 
                subsection (b) for any taxable year, the determination 
                of W-2 wages of such taxpayer shall be made without 
                regard to any exclusion under section 3401(a)(8) for 
                remuneration paid for services performed in a 
                possession of the United States.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2005.
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