110 HR 3693 IH: American Competitiveness Tax Act of U.S. House of Representatives 2007-09-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3693 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.

1.

Short title

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

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.