To amend the Internal Revenue Code of 1986 to repeal the 30-percent gross income limitation applicable to regulated investment companies.

Amends the Internal Revenue Code to repeal the requirement that less than 30 percent of the gross income of a regulated investment company be derived from the sale or disposition of any of the following which were held for less than three months: (1) stocks or securities; (2) options, futures, or forward contracts (other than those on foreign currencies); or (3) certain foreign currencies.

 
HR 1597 IH
102d CONGRESS
1st Session
 H. R. 1597
To amend the Internal Revenue Code of 1986 to repeal the 30-percent gross
income limitation applicable to regulated investment companies.
IN THE HOUSE OF REPRESENTATIVES
March 22, 1991
Mr. ANDREWS of Texas (for himself and Mr. MCGRATH) 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 repeal the 30-percent gross
income limitation applicable to regulated investment companies.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. REPEAL OF 30-PERCENT GROSS INCOME LIMITATION.
  (a) GENERAL RULE- Subsection (b) of section 851 of the Internal Revenue
  Code of 1986 (relating to limitations) is amended by striking paragraph
  (3), by adding `and' at the end of paragraph (2), and by redesignating
  paragraph (4) as paragraph (3).
  (b) TECHNICAL AMENDMENTS-
  (1) The material following paragraph (3) of section 851(b) of such Code
  (as redesignated by subsection (a)) is amended--
  (A) by striking out `paragraphs (2) and (3)' and inserting `paragraph
  (2)', and
  (B) by striking out the last sentence thereof.
  (2) Subsection (c) of section 851 of such Code is amended by striking
  `subsection (b)(4)' each place it appears (including the heading) and
  inserting `subsection (b)(3)'.
  (3) Subsection (d) of section 851 of such Code is amended by striking
  `subsections (b)(4)' and inserting `subsections (b)(3)'.
  (4) Paragraph (1) of section 851(e) of such Code is amended by striking
  `subsection (b)(4)' and inserting `subsection (b)(3)'.
  (5) Paragraph (4) of section 851(e) of such Code is amended by striking
  `subsections (b)(4)' and inserting `subsections (b)(3)'.
  (6) Section 851 of such Code is amended by striking subsection (g) and
  redesignating subsection (h) as subsection (g).
  (7) Subsection (g) of section 851 of such Code (as redesignated by paragraph
  (6)) is amended by striking paragraph (3).
  (8) Section 817(h)(2) of such Code is amended--
  (A) by striking `851(b)(4)' in subparagraph (A) and inserting `851(b)(3)',
  and
  (B) by striking `851(b)(4)(A)(i)' in subparagraph (B) and inserting
  `851(b)(3)(A)(i)'.
  (9) Section 1092(f)(2) of such Code is amended by striking `Except for
  purposes of section 851(b)(3), the' and inserting `The'.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years ending after the date of the enactment of this Act.