[Congressional Record Volume 163, Number 194 (Wednesday, November 29, 2017)]
[Senate]
[Pages S7470-S7471]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1630. Ms. MURKOWSKI submitted an amendment intended to be proposed
to amendment SA 1618 submitted by Mr. Hatch (for himself and Ms.
Murkowski) and intended to be proposed to the bill H.R. 1, to provide
for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018; which was ordered to lie
on the table; as follows:
Strike section 13821 and insert the following:
SEC. 13821. MODIFICATION OF TAX TREATMENT OF ALASKA NATIVE
CORPORATIONS AND SETTLEMENT TRUSTS.
(a) Exclusion for ANCSA Payments Assigned to Alaska Native
Settlement Trusts.--
(1) In general.--Part III of subchapter B of chapter 1 is
amended by inserting before section 140 the following new
section:
``SEC. 139G. ASSIGNMENTS TO ALASKA NATIVE SETTLEMENT TRUSTS.
``(a) In General.--In the case of a Native Corporation,
gross income shall not include the value of any payments that
would otherwise be made, or treated as being made, to such
Native Corporation pursuant to, or as required by, any
provision of the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.), including any payment that would
otherwise be made to a Village Corporation pursuant to
section 7(j) of the Alaska Native Claims Settlement Act (43
U.S.C. 1606(j)), provided that any such payments--
``(1) are assigned in writing to a Settlement Trust, and
``(2) were not received by such Native Corporation prior to
the assignment described in paragraph (1).
``(b) Inclusion in Gross Income.--In the case of a
Settlement Trust which has been assigned payments described
in subsection (a), gross income shall include such payments
when received by such Settlement Trust pursuant to the
assignment and shall have the same character as if such
payments were received by the Native Corporation.
``(c) Amount and Scope of Assignment.--The amount and scope
of any assignment under subsection (a) shall be described
with reasonable particularity and may either be in a
percentage of one or more such payments or in a fixed dollar
amount.
``(d) Duration of Assignment; Revocability.--Any assignment
under subsection (a) shall specify--
``(1) a duration either in perpetuity or for a period of
time, and
``(2) whether such assignment is revocable.
``(e) Prohibition on Deduction.--Notwithstanding section
247, no deduction shall be allowed to a Native Corporation
for purposes of any amounts described in subsection (a).
``(f) Definitions.--For purposes of this section, the terms
`Native Corporation' and `Settlement Trust' have the same
meaning given such terms under section 646(h).''.
(2) Conforming amendment.--The table of sections for part
III of subchapter B of chapter 1 is amended by inserting
before the item relating to section 140 the following new
item:
``Sec. 139G. Assignments to Alaska Native Settlement Trusts.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2016.
(b) Deduction of Contributions to Alaska Native Settlement
Trusts.--
(1) In general.--Part VIII of subchapter B of chapter 1 is
amended by inserting before section 248 the following new
section:
``SEC. 247. CONTRIBUTIONS TO ALASKA NATIVE SETTLEMENT TRUSTS.
``(a) In General.--In the case of a Native Corporation,
there shall be allowed a deduction for any contributions made
by such Native Corporation to a Settlement Trust (regardless
of whether an election under section 646 is in effect for
such Settlement Trust) for which the Native Corporation has
made an annual election under subsection (e).
``(b) Amount of Deduction.--The amount of the deduction
under subsection (a) shall be equal to--
``(1) in the case of a cash contribution (regardless of the
method of payment, including currency, coins, money order, or
check), the amount of such contribution, or
[[Page S7471]]
``(2) in the case of a contribution not described in
paragraph (1), the lesser of--
``(A) the Native Corporation's adjusted basis in the
property contributed, or
``(B) the fair market value of the property contributed.
``(c) Limitation and Carryover.--
``(1) In general.--Subject to paragraph (2), the deduction
allowed under subsection (a) for any taxable year shall not
exceed the taxable income (as determined without regard to
such deduction) of the Native Corporation for the taxable
year in which the contribution was made.
``(2) Carryover.--If the aggregate amount of contributions
described in subsection (a) for any taxable year exceeds the
limitation under paragraph (1), such excess shall be treated
as a contribution described in subsection (a) in each of the
15 succeeding years in order of time.
``(d) Definitions.--For purposes of this section, the terms
`Native Corporation' and `Settlement Trust' have the same
meaning given such terms under section 646(h).
``(e) Manner of Making Election.--
``(1) In general.--For each taxable year, a Native
Corporation may elect to have this section apply for such
taxable year on the income tax return or an amendment or
supplement to the return of the Native Corporation, with such
election to have effect solely for such taxable year.
``(2) Revocation.--Any election made by a Native
Corporation pursuant to this subsection may be revoked
pursuant to a timely filed amendment or supplement to the
income tax return of such Native Corporation.
``(f) Additional Rules.--
``(1) Earnings and profits.--Notwithstanding section
646(d)(2), in the case of a Native Corporation which claims a
deduction under this section for any taxable year, the
earnings and profits of such Native Corporation for such
taxable year shall be reduced by the amount of such
deduction.
``(2) Gain or loss.--No gain or loss shall be recognized by
the Native Corporation with respect to a contribution of
property for which a deduction is allowed under this section.
``(3) Income.--Subject to subsection (g), a Settlement
Trust shall include in income the amount of any deduction
allowed under this section in the taxable year in which the
Settlement Trust actually receives such contribution.
``(4) Period.--The holding period under section 1223 of the
Settlement Trust shall include the period the property was
held by the Native Corporation.
``(5) Basis.--The basis that a Settlement Trust has for
which a deduction is allowed under this section shall be
equal to the lesser of--
``(A) the adjusted basis of the Native Corporation in such
property immediately before such contribution, or
``(B) the fair market value of the property immediately
before such contribution.
``(6) Prohibition.--No deduction shall be allowed under
this section with respect to any contributions made to a
Settlement Trust which are in violation of subsection (a)(2)
or (c)(2) of section 39 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1629e).
``(g) Election by Settlement Trust To Defer Income
Recognition.--
``(1) In general.--In the case of a contribution which
consists of property other than cash, a Settlement Trust may
elect to defer recognition of any income related to such
property until the sale or exchange of such property, in
whole or in part, by the Settlement Trust.
``(2) Treatment.--In the case of property described in
paragraph (1), any income or gain realized on the sale or
exchange of such property shall be treated as--
``(A) for such amount of the income or gain as is equal to
or less than the amount of income which would be included in
income at the time of contribution under subsection (f)(3)
but for the taxpayer's election under this subsection,
ordinary income, and
``(B) for any amounts of the income or gain which are in
excess of the amount of income which would be included in
income at the time of contribution under subsection (f)(3)
but for the taxpayer's election under this subsection, having
the same character as if this subsection did not apply.
``(3) Election.--
``(A) In general.--For each taxable year, a Settlement
Trust may elect to apply this subsection for any property
described in paragraph (1) which was contributed during such
year. Any property to which the election applies shall be
identified and described with reasonable particularity on the
income tax return or an amendment or supplement to the return
of the Settlement Trust, with such election to have effect
solely for such taxable year.
``(B) Revocation.--Any election made by a Settlement Trust
pursuant to this subsection may be revoked pursuant to a
timely filed amendment or supplement to the income tax return
of such Settlement Trust.
``(C) Certain dispositions.--
``(i) In general.--In the case of any property for which an
election is in effect under this subsection and which is
disposed of within the first taxable year subsequent to the
taxable year in which such property was contributed to the
Settlement Trust--
``(I) this section shall be applied as if the election
under this subsection had not been made,
``(II) any income or gain which would have been included in
the year of contribution under subsection (f)(3) but for the
taxpayer's election under this subsection shall be included
in income for the taxable year of such contribution, and
``(III) the Settlement Trust shall pay any increase in tax
resulting from such inclusion, including any applicable
interest, and increased by 10 percent of the amount of such
increase with interest.
``(ii) Assessment.--Notwithstanding section 6501(a), any
amount described in subclause (III) of clause (i) may be
assessed, or a proceeding in court with respect to such
amount may be initiated without assessment, within 4 years
after the date on which the return making the election under
this subsection for such property was filed.''.
(2) Conforming amendment.--The table of sections for part
VIII of subchapter B of chapter 1 is amended by inserting
before the item relating to section 248 the following new
item:
``Sec. 247. Contributions to Alaska Native Settlement Trusts.''.
(3) Effective date.--
(A) In general.--The amendments made by this subsection
shall apply to taxable years for which the period of
limitation on refund or credit under section 6511 of the
Internal Revenue Code of 1986 has not expired.
(B) One-year waiver of statute of limitations.--If the
period of limitation on a credit or refund resulting from the
amendments made by paragraph (1) expires before the end of
the 1-year period beginning on the date of the enactment of
this Act, refund or credit of such overpayment (to the extent
attributable to such amendments) may, nevertheless, be made
or allowed if claim therefor is filed before the close of
such 1-year period.
(c) Information Reporting for Deductible Contributions to
Alaska Native Settlement Trusts.--
(1) In general.--Section 6039H is amended--
(A) in the heading, by striking ``sponsoring'', and
(B) by adding at the end the following new subsection:
``(e) Deductible Contributions by Native Corporations to
Alaska Native Settlement Trusts.--
``(1) In general.--Any Native Corporation (as defined in
subsection (m) of section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(m))) which has made a
contribution to a Settlement Trust (as defined in subsection
(t) of such section) to which an election under subsection
(e) of section 247 applies shall provide such Settlement
Trust with a statement regarding such election not later than
January 31 of the calendar year subsequent to the calendar
year in which the contribution was made.
``(2) Content of statement.--The statement described in
paragraph (1) shall include--
``(A) the total amount of contributions to which the
election under subsection (e) of section 247 applies,
``(B) for each contribution, whether such contribution was
in cash,
``(C) for each contribution which consists of property
other than cash, the date that such property was acquired by
the Native Corporation and the adjusted basis and fair market
value of such property on the date such property was
contributed to the Settlement Trust,
``(D) the date on which each contribution was made to the
Settlement Trust, and
``(E) such information as the Secretary determines to be
necessary or appropriate for the identification of each
contribution and the accurate inclusion of income relating to
such contributions by the Settlement Trust.''.
(2) Conforming amendment.--The item relating to section
6039H in the table of sections for subpart A of part III of
subchapter A of chapter 61 is amended to read as follows:
``Sec. 6039H. Information With Respect to Alaska Native Settlement
Trusts and Native Corporations.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2016.
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