[Federal Register Volume 69, Number 202 (Wednesday, October 20, 2004)]
[Notices]
[Pages 61703-61704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23563]


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DEPARTMENT OF THE TREASURY


Presidential Determination Concerning Libya and Delegation of 
Authority to the Secretary of the Treasury; Report of the Secretary of 
the Treasury to the Congress

AGENCY: Departmental Offices, Treasury.

ACTION: Notice.

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DATES: Presidential Determination 2004-48 was issued September 20, 
2004. The report of the Secretary of the Treasury to the Congress was 
issued October 6, 2004.
SUMMARY: On September 20, 2004, the President issued Presidential 
Determination 2004-48. In Presidential

[[Page 61704]]

Determination 2004-48, the President determined that a waiver of the 
application of section 901(j)(1) of the Internal Revenue Code with 
respect to Libya is in the national interest of the United States and 
will expand trade and investment opportunities for U.S. companies in 
Libya and declared that he intended to grant such a waiver with respect 
to Libya. The President authorized and directed the Secretary of the 
Treasury to report to Congress in accordance with section 901(j)(5)(B) 
the President's intention to grant the waiver and the reason for the 
determination. The Secretary of the Treasury issued the required report 
to the Congress on October 6, 2004.

SUPPLEMENTARY INFORMATION: The text of Presidential Determination 2004-
48 and the text of the report of the Secretary of the Treasury are 
printed below.

    Dated: October 15, 2004.
Richard S. Carro,
Senior Advisor to the General Counsel, (Regulatory Affairs).

Text of Presidential Determination No. 2004-48

The White House, Washington, September 20, 2004.
Presidential Determination, No. 2004-48.

Memorandum for the Secretary of the Treasury.
Subject: Intention to Grant Waiver of the Application of Section 901(j) 
of the Internal Revenue Code with Respect to Libya.

    By virtue of the authority vested in me by the Constitution and the 
laws of the United States, including section 901(j)(5) of the Internal 
Revenue Code (the ``Code'') and section 301 of title 3, United States 
Code:
    (a) I hereby determine that the waiver of the application of 
section 901(j)(1) of the Code with respect to Libya is in the national 
interest of the United States and will expand trade and investment 
opportunities for U.S. companies in Libya;
    (b) I intend to grant such a waiver with respect to Libya; and
    (c) I authorize and direct you to report to the Congress in 
accordance with section 901(j)(5)(B) of the Code my intention to grant 
the waiver and the reason for this determination and to arrange for 
publication of this determination in the Federal Register.
George W. Bush.

Text of the Report of the Secretary of the Treasury (Issued October 6, 
2004)

Report to the Congress Pursuant to Section 901(j)(5)(B) of the Internal 
Revenue Code

    Section 901 of the Internal Revenue Code generally permits a U.S. 
taxpayer to take a credit against U.S. income tax for taxes paid to a 
foreign country. The foreign tax credit is subject to various 
limitations and restrictions under section 901.
    Section 901(j)(1) imposes restrictions on the foreign tax credit in 
the case of income and taxes attributable to certain countries, 
including Libya. Section 901(j)(1) generally provides that taxes paid 
on income from countries described in section 901(j)(2)(A) cannot be 
taken into account in computing a U.S. taxpayer's foreign tax credit 
and that the income from such countries is subject to specific tax 
rules.
    Section 901(j)(5) authorizes the President to waive the 
restrictions of section 901(j)(1) if the President determines that a 
waiver of the application of such paragraph is in the national interest 
of the United States and will expand trade and investment opportunities 
for U.S. companies in such country. Not less than 30 days before the 
date on which a waiver is granted, the President must report to 
Congress the intention to grant such a waiver.
    The President has determined that a waiver of the application of 
section 901(j)(1) with respect to Libya is in the national interest of 
the United States and will expand trade and investment opportunities 
for U.S. companies in Libya. The President therefore stated his 
intention to grant such a waiver with respect to Libya. The President 
also authorized and directed the Secretary of the Treasury to report to 
Congress the President's intention to grant the waiver.
    The granting of such a waiver is in the national interest of the 
United States. In light of recent actions taken by the Government of 
Libya, including commitments and actions to eliminate its weapons of 
mass destruction programs and its Missile Technology Control Regime 
(MTCR)-class missiles, it is in the national interest of the United 
States to uphold the President's commitment to respond in good faith by 
strengthening economic ties between the United States and Libya as one 
facet in the gradual normalization of U.S.-Libyan relations. The 
restrictions imposed by section 901(j) currently inhibit the 
development of such economic ties, and waiver of the restrictions of 
section 901(j)(1) will contribute to better and stronger commercial 
relations between the United States and Libya.
    The granting of such a waiver will also expand trade and investment 
opportunities for U.S. companies in Libya. Upon grant of the waiver, 
U.S. companies will be better able to compete with companies based in 
other countries in selling goods and providing services to Libyan 
companies and consumers. With the restrictions of section 901(j) of the 
Code removed, U.S. companies will be in a better position to create 
U.S. jobs through exports to and investments in Libya.
[FR Doc. 04-23563 Filed 10-19-04; 8:45 am]
BILLING CODE 4810-25-P