To amend the Internal Revenue Code of 1986 to permanently extend the subpart F exemption for active financing income.

Amends the Internal Revenue Code, with respect to taxation of U.S. shareholders of controlled foreign corporations, to permanently extend the subpart F exemption (which excludes such income from the shareholder's foreign personal holding company income) for active financing (insurance, banking, financing, or similar businesses) income earned on business operations overseas.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1417 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1417

 To amend the Internal Revenue Code of 1986 to permanently extend the 
            subpart F exemption for active financing income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2005

  Mr. McCrery (for himself, Mr. Neal of Massachusetts, Mr. Shaw, Mr. 
  Herger, Mr. Sam Johnson of Texas, Mr. English of Pennsylvania, Mr. 
Weller, Mr. Hulshof, Mr. Lewis of Kentucky, Mr. Foley, Mr. Cantor, Ms. 
Hart, Mr. Beauprez, Mr. McDermott, Mr. Jefferson, Mr. Becerra, and Mr. 
   Crowley) 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 permanently extend the 
            subpart F exemption for active financing income.

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

SECTION 1. PERMANENT SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) Banking, Financing, or Similar Businesses.--Subsection (h) of 
section 954 of the Internal Revenue Code of 1986 (relating to special 
rule for income derived in the active conduct of banking, financing, or 
similar businesses) is amended by striking paragraph (9).
    (b) Insurance Businesses.--Subsection (e) of section 953 of such 
Code (relating to exempt insurance income) is amended by striking 
paragraph (10) and by redesignating paragraph (11) as paragraph (10).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of a foreign corporation beginning after the 
date of the enactment of this Act, and to taxable years of United 
States shareholders with or within which such taxable years of such 
foreign corporation end.
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