[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 940 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 940

 To amend the Internal Revenue Code of 1986 to permanently extend the 
            subpart F exemption for active financing income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2007

   Mr. Baucus (for himself, Mr. Hatch, and Mr. Crapo) 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 permanently extend the 
            subpart F exemption for active financing income.

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

SECTION 1. PERMANENT SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) Banking, Financing, or Similar Businesses.--Subsection (h) of 
section 954 of the Internal Revenue Code of 1986 (relating to special 
rule for income derived in the active conduct of banking, financing, or 
similar businesses) is amended by striking paragraph (9).
    (b) Insurance Businesses.--Subsection (e) of section 953 of such 
Code (relating to exempt insurance income) is amended by striking 
paragraph (10) and by redesignating paragraph (11) as paragraph (10).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of a foreign corporation beginning after the 
date of the enactment of this Act, and to taxable years of United 
States shareholders with or within which such taxable years of such 
foreign corporation end.
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