Dividend Payment Incentive Act of 2003

Dividend Payment Incentive Act of 2003 - Amends the Internal Revenue Code to allow dividends as a deduction in the case of a C corporation, except in the case of: (1) a regulated investment company; (2) a real estate investment trust; or (3) an exempt corporation.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 312 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 312

 To amend the Internal Revenue Code of 1986 to allow a dividends paid 
                               deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 8, 2003

Mr. Petri (for himself, Mr. Kirk, and Mr. Franks of Arizona) 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 allow a dividends paid 
                               deduction.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dividend Payment Incentive Act of 
2003''.

SEC. 2. DIVIDENDS PAID DEDUCTION.

    (a) In General.--Part VIII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to special deductions for 
corporations) is amended by adding at the end the following new 
section:

``SEC. 250. DIVIDENDS PAID DEDUCTION.

    ``(a) In General.--In the case of a C corporation, there shall be 
allowed as a deduction for the taxable year an amount equal to the 
amount of dividends paid during such year.
    ``(b) Exceptions.--Subsection (a) shall not apply to any dividend 
from--
            ``(1) a regulated investment company,
            ``(2) a real estate investment trust, or
            ``(3) a corporation which for the taxable year of the 
        corporation in which the distribution is made or the preceding 
        taxable year is a corporation exempt from tax under section 501 
        or 521.
    ``(c) Disallowance of Dividends Received Deduction.--No deduction 
shall be allowed under this chapter by reason of the receipt of any 
dividend for which a deduction is allowed under this section.''
    (b) Clerical Amendment.--The table of sections for part VIII of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

                              ``Sec. 250. Dividends paid deduction.''.
     (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.
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