[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3693 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3693

    To amend the Internal Revenue Code of 1986 to provide for more 
 effective use of the deduction for domestic production activities for 
                 businesses with net operating losses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2007

 Mr. English of Pennsylvania 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 provide for more 
 effective use of the deduction for domestic production activities for 
                 businesses with net operating losses.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Competitiveness Tax Act of 
2007''.

SEC. 2. LOSSES NOT TO REDUCE DOMESTIC PRODUCTION ACTIVITIES DEDUCTION.

    (a) In General.--Subsection (a) of section 199 of the Internal 
Revenue Code of 1986 (relating to limitation) is amended by adding at 
the end the following new paragraph:
            ``(3) Special rule for taxpayers with prior year losses.--
        In the case of a taxpayer which has a net operating loss for 1 
        or more of the prior 5 taxable years, the deduction allowable 
        under paragraph (1) for the taxable year shall be determined 
        without regard to any limitation imposed by paragraph 
        (1)(B).''.
    (b) Conforming Amendments.--Section 172(d)(7) of such Code is 
amended--
            (1) by striking ``The'' and inserting the following:
                    ``(A) In general.--The''; and
            (2) by adding at the end the following:
                    ``(B) Exception for certain taxpayers.--
                Subparagraph (A) shall not apply to a taxpayer meeting 
                the requirements of section 199(a)(3).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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