(Sec. 101) Repeals the requirement that reduces the refundable child credit by the amount of an individual's minimum tax.
(Sec. 102) Extends from June 30, 1999, through June 30, 2004, the tax credit for increasing scientific research activities. Revises the alternative incremental research credit rate by specified percentage increases in components of the rate formula.
Declares that the allowable research tax credit attributable to the period from June 30, 1999, through September 30, 2000, (suspension period) shall not be taken into account before October 1, 2000. States that on or after October 1, 2000, such credit may be taken into account through the filing of an amended return, an application for expedited refund, an adjustment of estimated taxes, or other means allowed. Provides for an expedited refund of any tax overpayment resulting from such treatment of the research tax credit, if the refund application is filed before October 1, 2001. Waives estimated tax penalties for any period before June 30, 1999, for any underpayment of tax created or increased by reason of the treatment of the research tax credit by this Act.
(Sec. 103) Extends from January 1, 2000, until January 1, 2005, the subpart F exclusion of active banking, financing, or similar income from taxable foreign personal holding company income, insurance income, and foreign base company services income to which ten-percent U.S. shareholders of a controlled foreign corporation are subject regardless of whether such income is distributed to them.
(Sec. 4) Extends from January 1, 2000, until January 1, 2005, suspension of the 100-percent-of-net-income limitation on the deduction for percentage depletion from marginal oil and natural gas wells.
(Sec. 5) Extends from June 30, 1999, through December 31, 2001, the work opportunity tax credit (WOTC) (equal to a specified percentage of qualified first-year wages paid to individuals hired from one or more specified target groups) and the welfare-to-work tax credit (equal to a specified percentage of the first $20,000 of eligible wages paid to qualified long-term recipients of family assistance under part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act).
Revises the exclusion from qualified first-year wages for WOTC purposes of any wages paid to an individual if, before the hiring date, such individual had been employed by the employer at any time during which he or she was not a member of a targeted group. Repeals the limitation of the exclusion to individuals previously employed while not a member of a targeted group (thus excluding the wages of previously employed individuals even if they were members of a targeted group during the previous employment).
Title II: Other Time-Sensitive Provisions - Treats any advance pricing agreement entered into by a taxpayer and the Secretary of the Treasury, and any related background information, or any application for such an agreement, as confidential taxpayer information. Requires the Secretary to report annually on advance pricing agreements, omitting any information that would identify particular taxpayers.
(Sec. 202) Adds conjugate vaccines against streptococcus pneumoniae to the list of vaccines subject to a certain sales tax, but only if the Centers for Disease Control make a final recommendation for routine administration to children of any such vaccine.
Amends the Vaccine Injury Compensation Program Modification Act to: (1) remove vaccines against rotavirus gastroenteritis from the list of taxable vaccines; and (2) repeal authority for payment from the Vaccine Injury Compensation Trust Fund of unlimited Federal expenses for administration of compensation for vaccine-related injury or death (but retain the otherwise mandatory limit on payable expenses of $9.5 million per fiscal year). Repeals the prohibition against appropriations to the Trust Fund that are not specifically permitted by the Code provision establishing the Fund. Changes from August 5, 1997, to October 21, 1998, the effective date of certain authority for the payment of vaccine injury compensation from the Trust Fund.
Requires the Comptroller General to report to specified congressional committees on the Trust Fund's operation and adequacy to meet future claims.
(Sec. 203) Authorizes the Secretary to disregard a period of up to 90 days in determining, in respect of any tax liability of any taxpayer affected by a Y2K failure: (1) whether certain tax compliance, assessment, or collection acts were performed by specified deadlines; and (2) the amount of any credit or refund due.
Title III: Revenue Offset - Revises the modified safe harbor from the additional tax for underpayment of the estimated tax of an individual with an adjusted gross income of more than $150,000. Increases from 106 percent to 108.5 percent of the preceding taxable year's income the percentage of income for the taxable year beginning in 1999 which the individual is required to pay in estimated taxes for a taxable year beginning in 2000.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2923 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 2923
To amend the Internal Revenue Code of 1986 to extend expiring
provisions, to fully allow the nonrefundable personal credits against
regular tax liability, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 23, 1999
Mr. Archer 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 extend expiring
provisions, to fully allow the nonrefundable personal credits against
regular tax liability, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. NONREFUNDABLE PERSONAL CREDITS FULLY ALLOWED AGAINST REGULAR
TAX LIABILITY.
(a) In General.--Subsection (a) of section 26 of the Internal
Revenue Code of 1986 (relating to limitation based on amount of tax) is
amended to read as follows:
``(a) Limitation Based on Amount of Tax.--The aggregate amount of
credits allowed by this subpart for the taxable year shall not exceed
the taxpayer's regular tax liability for the taxable year.''.
(b) Child Credit.--Subsection (d) of section 24 of such Code is
amended by striking paragraph (2) and by redesignating paragraph (3) as
paragraph (2).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1998.
SEC. 2. RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Paragraph (1) of section 41(h) of the
Internal Revenue Code of 1986 (relating to termination) is
amended--
(A) by striking ``June 30, 1999'' and inserting
``June 30, 2004'', and
(B) by striking the material following subparagraph
(B).
(2) Technical amendment.--Subparagraph (D) of section
45C(b)(1) of such Code is amended by striking ``June 30, 1999''
and inserting ``June 30, 2004''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after June 30, 1999.
(b) Increase in Percentages Under Alternative Incremental Credit.--
(1) In general.--Subparagraph (A) of section 41(c)(4) of
such Code is amended--
(A) by striking ``1.65 percent'' and inserting
``2.65 percent'',
(B) by striking ``2.2 percent'' and inserting ``3.2
percent'', and
(C) by striking ``2.75 percent'' and inserting
``3.75 percent''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after June 30, 1999.
(c) Special Rule.--
(1) In general.--For purposes of the Internal Revenue Code
of 1986, the credit determined under section 41 of such Code
which is attributable to the suspension period--
(A) shall not be taken into account under section
6654 or 6655 of such Code for any taxable year in
determining the amount of any installment the due date
for which is before October 1, 2000, and
(B) shall not be allowed for any taxable year
ending before October 1, 2000.
(2) Suspension period.--For purposes of this subsection,
the suspension period is the period beginning on July 1, 1999,
and ending on September 30, 2000.
(3) Suspended credit treated as payment of tax on october
1, 2000.--
(A) In general.--The amount of credit not allowed
by reason of paragraph (1) for any taxable year ending
before October 1, 2000, shall be treated as a payment
of tax imposed by chapter 1 of such Code for such
taxable year which is made on such date.
(B) Accelerated refunds.--If, as a result of the
payment referred to in subparagraph (A) with respect to
a taxable year, there is an overpayment of tax for such
year, the taxpayer may file an application for a
tentative refund of such overpayment. Such application
shall be in such manner and form, and contain such
information, as the Secretary may prescribe.
(C) Deadline for applications.--Subparagraph (B)
shall apply only to applications filed before October
1, 2001.
(D) Allowance of adjustments.--Not later than 90
days after the date on which an application is filed
under this paragraph, the Secretary shall--
(i) review the application,
(ii) determine the amount of the
overpayment, and
(iii) apply, credit, or refund such
overpayment,
in a manner similar to the manner provided in section
6411(b) of such Code.
(E) Consolidated returns.--The provisions of
section 6411(c) of such Code shall apply to an
adjustment under this paragraph in such manner as the
Secretary may provide.
(4) Credit attributable to suspension period.--
(A) In general.--For purposes of this subsection,
in the case of a taxable year which includes a portion
of the suspension period, the amount of credit
determined under section 41 of such Code for such
taxable year which is attributable to such period is
the amount which bears the same ratio to the amount of
credit determined under such section 41 for such
taxable year as the number of months in the suspension
period which are during such taxable year bears to the
number of months in such taxable year.
(B) Waiver of estimated tax penalties.--No addition
to tax shall be made under section 6654 or 6655 of such
Code for any period before July 1, 1999, with respect
to any underpayment of tax imposed by such Code to the
extent such underpayment was created or increased by
reason of subparagraph (A).
(5) Secretary.--For purposes of this subsection, the term
``Secretary'' means the Secretary of the Treasury (or such
Secretary's delegate).
SEC. 3. SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.
(a) In General.--Sections 953(e)(10) and 954(h)(9) of the Internal
Revenue Code of 1986 (relating to application) are each amended--
(1) by striking ``the first taxable year'' and inserting
``taxable years'',
(2) by striking ``January 1, 2000'' and inserting ``January
1, 2005'', and
(3) by striking ``within which such'' and inserting
``within which any such''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1999.
SEC. 4. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR MARGINAL
PRODUCTION.
(a) In General.--Subparagraph (H) of section 613A(c)(6) of the
Internal Revenue Code of 1986 (relating to temporary suspension of
taxable limit with respect to marginal production) is amended by
striking ``January 1, 2000'' and inserting ``January 1, 2005''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 1999.
SEC. 5. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT.
(a) Temporary Extension.--Sections 51(c)(4)(B) and 51A(f) of the
Internal Revenue Code of 1986 (relating to termination) are each
amended by striking ``June 30, 1999'' and inserting ``December 31,
2001''.
(b) Clarification of First Year of Employment.--Paragraph (2) of
section 51(i) of such Code is amended by striking ``during which he was
not a member of a targeted group''.
(c) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after June 30,
1999.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 23 - 14.
Reported (Amended) by the Committee on Ways and Means. H. Rept. 106-344.
Reported (Amended) by the Committee on Ways and Means. H. Rept. 106-344.
Placed on the Union Calendar, Calendar No. 199.
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