No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8602 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8602
To require the Secretary of Labor to establish a program to provide
grants for job guarantee programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 3, 2024
Mrs. Watson Coleman (for herself, Ms. Omar, Ms. Norton, Ms. Tlaib, Mr.
Bowman, and Mrs. Ramirez) introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committee on Education and the Workforce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To require the Secretary of Labor to establish a program to provide
grants for job guarantee programs.
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 ``Workforce Promotion and Access Act''
or the ``WPA Act''.
SEC. 2. JOB GUARANTEE GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State;
(B) a political subdivision of a State;
(C) a Tribal entity;
(D) an outlying area; or
(E) a consortium of the entities described in
subparagraph (B) or (C).
(2) Job guarantee program.--The term ``job guarantee
program'' means a program that meets the requirements of
subsection (c).
(3) Rural area.--The term ``rural area'' means an area that
is located outside of an urban area.
(4) Tribal entity.--The term ``Tribal entity'' means an
Indian tribe or tribal organization as such terms are defined
in section 4 of the Indian Self-Determination Act (25 U.S.C.
5304).
(5) Urban area.--The term ``urban area'' the has the
meaning given the term by the Bureau of the Census in
regulations.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(7) WIOA definitions.--The terms ``adult education and
literacy activities'', ``career planning'', ``individual with a
barrier to employment'', ``in-demand industry sector or
occupation'', ``local board'', ``outlying area'', ``recognized
postsecondary credential'', ``State'', ``State board'',
``supportive services'', and ``workplace learning advisor''
have the meanings given such terms in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
(b) Establishment.--
(1) In general.--The Secretary shall establish a program to
provide competitive grants to eligible entities to establish
programs to ensure that any eligible individual within the area
served by any such eligible entity who applies for a job
through such a program established by such eligible entity will
be provided with employment in accordance with this section.
(2) National job priorities.--Prior to soliciting the
initial grants under this section, the Secretary shall make
publicly available on the website of the Department of Labor a
list of national job priorities emphasizing strategic job
creation in in-demand industry sectors and occupations that
address community needs, promote economic resilience, and
support sustainable development. The Secretary may take State
board and local board suggestions into consideration when
developing such list.
(3) Grant period; additional grants.--
(A) Grant period.--A grant awarded under this
section shall be for a period of 3 years. In the case
of an additional grant awarded to an eligible entity,
the 3-year grant period for such additional grant shall
begin on the day after the last day of the grant period
of the preceding grant awarded to such eligible entity
under this section.
(B) Additional grants.--
(i) In general.--An eligible entity that
receives a grant under this section may reapply
under this section for one or more additional
grants if such eligible entity, as of the date
of the application for such additional grant--
(I) meets the requirements of
subsection (f)(1);
(II) has not become ineligible for
funds under this section pursuant to
subsection (k)(2)(B); and
(III) meets any performance
requirements, as determined by the
Secretary, with respect to the program
carried out under the preceding grant.
(ii) Grant renewal application.--Such an
eligible entity may submit an application under
subsection (e) for an additional grant prior to
the last day of the grant period of the
preceding grant awarded to the eligible entity
under this section.
(iii) Expedited review permitted.--The
Secretary may provide an expedited review
process for an eligible entity's application
for an additional grant, which may include a
performance review of the program carried out
under the preceding grant awarded to the
eligible entity under this section.
(c) Job Guarantee Programs.--
(1) In general.--Subject to paragraph (2), a job guarantee
program meets the requirements of this subsection if each job
provided under such program--
(A) is available to any individual who--
(i) is 18 years of age or older; and
(ii) has principal residence in the
eligible entity as of the date that such
individual applies for a job under such
program;
(B) is, with respect to each individual who
receives a job under the program, included as part of
an established bargaining unit and covered by any
applicable collective bargaining agreement in effect if
similarly situated employees are part of such unit and
represented by an exclusive bargaining representative;
and
(C) provides each such individual the following:
(i) A choice between coverage under--
(I) a health insurance program that
is comparable to that offered to
Federal employees under the Federal
Employee Health Benefits Program; or
(II) the health insurance program
under an applicable collective
bargaining agreement as provided for
under subparagraph (B).
(ii) The following leave--
(I) family and medical leave
consistent with the provisions of the
Family and Medical Leave Act of 1993
and applicable State law, except that
such leave shall be paid leave; and
(II) paid sick leave as provided by
the Emergency Paid Sick Leave Act under
division E of the Families First
Coronavirus Response Act (29 U.S.C.
2601 note).
(iii) The paid training and career
development opportunities developed pursuant to
subsection (j).
(iv) A wage that is not less than the
highest of the following rates:
(I) $17 per hour.
(II) The hourly wage required to be
paid to employees in the area to be
served under the program.
(III) The prevailing wage in the
area involved for a similar job as
required by chapter 67 of title 41,
United States Code, and other related
laws.
(IV) The applicable wage under an
applicable collective bargaining
agreement as provided for under
subparagraph (B).
(2) Suspensions.--
(A) In general.--An eligible individual who
receives job under a job guarantee program under this
section may be released or suspended from such job if
such individual--
(i) fails to perform the stipulated duties;
or
(ii) is generally disruptive to the
workplace involved.
(B) Review procedures.--The Secretary shall
establish procedures to provide for an opportunity for
a review of any such release or suspension.
(d) Other Uses of Funds.--A grant awarded under this section may be
used to provide workers in a job guarantee program with--
(1) supportive services, which may include food,
transportation, child care, dependent care, housing, clothing
and personal protection equipment, and needs-related payments,
that are necessary to enable an individual to participate in
activities authorized under this section;
(2) access to a workplace learning advisor to support the
education, skill development, job training, career planning,
and credentials required to progress toward career goals of
such employees in order to meet employer requirements related
to job openings and career advancements that support economic
self-sufficiency;
(3) adult education and literacy activities, including
those provided by public libraries;
(4) activities that assist justice-involved individuals,
formerly incarcerated individuals, and individuals with
criminal records in reentering the workforce; and
(5) financial literacy activities including those described
in section 129(b)(2)(D) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3164(b)(2)(D)).
(e) Applications.--An eligible entity seeking a grant under this
section shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require. Such application shall include--
(1) a description of the geographic area and population
that the entity intends to serve under the job guarantee
program established under the grant, including the area
unemployment rate, underemployment rate, unemployment rate for
individuals with disabilities, poverty rate, housing vacancy
rate, crime rate, household income distribution, home-ownership
rate, labor force participation rate, and educational
attainment distribution;
(2) to the extent practicable, a description of the jobs
that will be offered under the job guarantee program,
including--
(A) a description of supports provided to
individuals with disabilities and accommodations
required under the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.); and
(B) a description of supports and procedures to
ensure job access and opportunities for individuals
with criminal records, including information on
physical and programmatic accessibility, in accordance
with section 188 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3248), if applicable, and
the Americans with Disabilities Act of 1990, for
individuals with disabilities;
(3) the need in the area for jobs to be performed,
including for jobs designated as a high-skill, high-wage, or
in-demand industry sector or occupation by the Secretary, State
board, or local board;
(4) a description of State, local, or philanthropic
funding, including through coordination and in-kind or
nonfinancial support, if any, that will be provided to assist
in carrying out the job guarantee program;
(5) an assurance that the eligible entity will establish--
(A) a public internet website, in conjunction with
the Secretary, to post all available jobs under the job
guarantee program; and
(B) a process for individuals to apply for such
jobs;
(6) a comprehensive plan to describe how the funding under
the program will leverage existing or anticipated local, State,
and Federal funding;
(7) an assurance that necessary administrative data systems
and information technology infrastructure are available, or
will be available, to provide for full participation in the
evaluation under subsection (m);
(8) a description of how the eligible entity will comply
with the requirements described in subsection (c)(1)(D);
(9) an assurance that the entity will enter into an
allocation agreement with the Secretary under subsection
(k)(2)(A); and
(10) an assurance that any job in the energy and
infrastructure sector provided under the program will not
exacerbate the impacts of climate change.
(f) Selection.--In awarding grants to eligible entities under this
section, the Secretary shall--
(1) select eligible entities that--
(A) as of the date of submission of the application
under subsection (e), has an unemployment rate that (as
determined by the Bureau of Labor Statistics based on
the most recent data available as of such date or, in
the case of an eligible entity that is a Tribal entity
with respect to which no Federal data are available,
based on employment entity submitted by the Tribal
entity) is at least the lower of--
(i) 5 percent; or
(ii) 80 percent of the national
unemployment rate;
(B) in the case of eligible entities seeking an
additional grant pursuant to subsection (b)(3), have
not been determined to be ineligible for funds under
this section pursuant to subsection (k)(2)(B); and
(2) consider diversity in geographic location, urban-rural
composition, and political entity, including the representation
of Tribal entities.
(g) Amount of Grant.--
(1) Establishment of fund.--There is established in the
Treasury of the United States a separate account to be known as
the ``Job Guarantee Program Trust Fund'' (referred to in this
section as the ``Fund'').
(2) Transfers to fund.--There is hereby appropriated to the
Fund amounts equivalent to--
(A) taxes received in the Treasury under subchapter
C of chapter 36 of the Internal Revenue Code of 1986;
and
(B) interest earned on investment of amounts in the
Fund under rules similar to the rules of section
9602(b) of such Code.
(3) Use of amounts.--The Secretary shall use amounts in the
Fund to make payments to grantees under grants under this
section in accordance with paragraph (4).
(4) Payments.--
(A) In general.--The Secretary shall determine the
annual amount of a grant under this section based on a
formula to be developed by the Secretary.
(B) Payments.--The Secretary shall make payments to
grantees under this section based on a standardized
payment schedule and in a manner determined appropriate
by the Secretary. The Secretary shall not make
subsequent payments to a grantee after the initial
payment until the grantee certifies to the Secretary
that the grantee has expended, transferred, or
obligated not less than 80 percent of the most recent
payment made under this subsection.
(h) Limitations.--An eligible entity may not use amounts received
under a grant under this section to--
(1) employ individuals who will replace, or lead to the
displacement of, existing employees, positions, or individuals
who would otherwise perform similar employment;
(2) disrupt existing contracts or collective bargaining
agreements; and
(3) perform functions otherwise prohibited by applicable
Federal, State, or local laws.
(i) Federal Provision of Jobs in Program Sites.--
(1) Guidance.--Not later than 30 days after the date on
which the Secretary awards the first grant under this section,
the Secretary shall--
(A) provide guidance to the heads of appropriate
Federal agencies to notify such agencies of job
guarantee programs established under the grants awarded
to eligible entities under this section, and that such
agencies may work with such eligible entities to carry
out such programs on behalf of such eligible entities
and receive reimbursement for carrying out such a
program;
(B) request that, not later than 30 days after the
date on which the guidance is received under
subparagraph (A), the heads of such agencies notify the
Secretary of the number and types of jobs that each
such agency would make available through each of the
programs; and
(C) ensure that each such agency makes best efforts
to provide jobs through the programs established under
such grants.
(2) Application of provisions.--The requirements of
subsection (c) relating to wages and benefits provided to
participants in jobs provided under job guarantee programs, and
the limitations in subsection (h), shall apply to Federal
agencies and jobs provided under this subsection.
(3) Listing of jobs on website.--The Secretary shall
establish procedures to ensure that jobs identified under
paragraph (1)(B) are listed on the appropriate public internet
website as provided for under subsection (e)(5)(A).
(j) Training and Development.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall develop procedures
to support a minimum of 1 week, and up to 8 weeks, of paid
training and career development opportunities to eligible
individuals selected to participate in a program under this
section in order to enable such individuals to perform duties
required by such program.
(2) Specific populations.--With respect to individuals with
barriers to employment (as defined in section 3(24) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3102(24)),
the training period may include specific job-related training
and counseling and other general skills training to prepare
such individuals to reenter the workforce.
(k) Audits; Allocation Agreements.--
(1) Audits.--The Secretary, acting through the Inspector
General of the Department of Labor, shall carry out annual
audits of the use of grant funds provided to eligible entities
under this section.
(2) Allocation agreements and misuse of funds.--
(A) Allocation agreements.--An eligible entity
shall enter into an allocation agreement with the
Secretary that shall provide that the Secretary shall
recoup any amounts paid to the entity under a grant
under this section if the results of an audit under
paragraph (1) include a finding that there was an
intentional or reckless misuse of such funds by such
entity.
(B) Loss of eligibility.--An eligible entity that
is determined to have falsified or otherwise misstated
data in any report submitted to the Secretary with the
intent to deceive or mislead the Secretary shall be
ineligible to receive additional funds under this
section.
(l) Reports.--
(1) Submission of reports.--Not later than 90 days after
the end of each fiscal year for which an eligible entity
obligates or expends any amounts made available under a grant
under this section, the eligible entity shall submit to the
Secretary a report that--
(A) specifies the amount of grant funds obligated
or expended for the preceding fiscal year;
(B) specifies any purposes for which the funds were
obligated or expended; and
(C) includes any other information that the
Secretary may require to more effectively administer
the grant program under this section, including the
indicators of performance under section 116(b)(2)(A)(i)
of the Workforce Innovation and Opportunity Act (29
U.S.C. 3141(b)(2)(A)(i)), with the performance data
disaggregated by race, ethnicity, sex, age, and
membership in a population specified in section 3(24)
of such Act (29 U.S.C. 3102(24)).
(2) Publication of reports.--Not later than 180 days after
the end of each fiscal year for which an eligible entity
obligates or expends any amounts made available under a grant
under this section, the Secretary shall publish such reports
from paragraph (1) in a searchable online database.
(m) Evaluation.--The Chief Evaluation Officer at the Department of
Labor shall provide for the conduct of an evaluation of each program
carried out by an eligible entity under this section, using a rigorous
design and evaluation methods to assess the implementation of the
program and its impact on, with respect to the area served by such
program--
(1) overall employment, public-sector employment, and
private-sector employment;
(2) private-sector employment, wages, and benefits;
(3) poverty rate;
(4) public assistance spending and other Federal spending
in the area served by the program;
(5) child health and educational outcomes;
(6) health and well-being of those with mental, emotional,
and behavioral health needs;
(7) incarceration rates;
(8) the environment, including air quality and water
quality;
(9) the indicators of performance as described in
subsection (l)(1)(C); and
(10) other economic development and individual outcome
indicators, as determined by the Secretary.
(n) Expansion of Work Opportunity Credit To Include Participants in
Job Guarantee Programs.--
(1) In general.--Subsection (d) of section 51 of the
Internal Revenue Code of 1986 is amended--
(A) in paragraph (1)--
(i) in subparagraph (I), by striking ``or''
at the end,
(ii) in subparagraph (J), by striking the
period at the end and inserting ``, or'', and
(iii) by adding at the end the following
new subparagraph:
``(K) a qualified participant in a job guarantee
program.'', and
(B) by adding at the end the following new
paragraph:
``(16) Qualified participant in a job guarantee program.--
The term `qualified participant in a job guarantee program'
means any individual who is certified by the designated local
agency as having participated in a job guarantee program under
section 2 of the Workforce Promotion and Access Act for not
less than 3 months during the 6-month period ending on the
hiring date.''.
(2) Effective date.--The amendments made by this subsection
shall apply to individuals who begin work for the employer
after December 31, 2024.
(o) Appropriations.--From funds in the Treasury not otherwise
appropriated, there are appropriated to the Secretary such sums as may
be necessary to carry out this section.
SEC. 3. TRANSACTION TAX.
(a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is
amended by inserting after subchapter B the following new subchapter:
``Subchapter C--Tax on Trading Transactions
``Sec. 4475. Tax on trading transactions.
``Sec. 4476. Derivative defined.
``SEC. 4475. TAX ON TRADING TRANSACTIONS.
``(a) Imposition of Tax.--There is hereby imposed a tax on each
covered transaction with respect to any security.
``(b) Rate of Tax.--The tax imposed under subsection (a) with
respect to any covered transaction shall be 0.1 percent of the
specified base amount with respect to such covered transaction.
``(c) Specified Base Amount.--For purposes of this section, the
term `specified base amount' means--
``(1) except as provided in paragraph (2), the fair market
value of a security (determined as of the time of the covered
transaction), and
``(2) in the case of any payment with respect to a
derivative, the amount of such payment.
``(d) Covered Transaction.--For purposes of this section--
``(1) In general.--The term `covered transaction' means--
``(A) except as provided in subparagraph (B), any
purchase if--
``(i) such purchase occurs on, or is
subject to the rules of, a qualified board or
exchange located in the United States, or
``(ii) the purchaser or seller is a United
States person, and
``(B) any transaction with respect to a derivative
if--
``(i) such derivative is traded on, or is
subject to the rules of, a qualified board or
exchange located in the United States, or
``(ii) any party with rights under such
derivative is a United States person.
``(2) Exception for initial issues.--No tax shall be
imposed under subsection (a) on any covered transaction with
respect to the initial issuance of any security described in
subparagraph (A), (B), or (C) of subsection (e)(1).
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) Security.--For purposes of this section, the term
`security' means--
``(A) any share of stock in a corporation,
``(B) any partnership or beneficial ownership
interest in a partnership or trust,
``(C) except as provided in paragraph (2), any
note, bond, debenture, or other evidence of
indebtedness, and
``(D) any derivative (as defined in section 4476).
``(2) Exception for certain traded short-term
indebtedness.--A note, bond, debenture, or other evidence of
indebtedness which--
``(A) is traded on, or is subject to the rules of,
a qualified board or exchange located in the United
States, and
``(B) has a fixed maturity of not more than 100
days,
shall not be treated as described in paragraph (1)(C).
``(3) Qualified board or exchange.--The term `qualified
board or exchange' has the meaning given such term by section
1256(g)(7).
``(f) By Whom Paid.--
``(1) In general.--The tax imposed by this section shall be
paid by--
``(A) in the case of a transaction which occurs on,
or is subject to the rules of, a qualified board or
exchange located in the United States, such qualified
board or exchange, and
``(B) in the case of a purchase not described in
subparagraph (A) which is executed by a broker (as
defined in section 6045(c)(1)) which is a United States
person, such broker.
``(2) Special rules for direct, etc., transactions.--In the
case of any transaction to which paragraph (1) does not apply,
the tax imposed by this section shall be paid by--
``(A) in the case of a transaction described in
subsection (d)(1)(A)--
``(i) the purchaser if the purchaser is a
United States person, and
``(ii) the seller if the purchaser is not a
United States person, and
``(B) in the case of a transaction described in
subsection (d)(1)(B)--
``(i) the payor if the payor is a United
States person, and
``(ii) the payee if the payor is not a
United States person.
``(g) Treatment of Exchanges and Payments With Respect to
Derivatives.--For purposes of this section--
``(1) Treatment of exchanges.--
``(A) In general.--An exchange shall be treated as
the sale of the property transferred and a purchase of
the property received by each party to the exchange.
``(B) Certain deemed exchanges.--In the case of a
distribution treated as an exchange for stock under
section 302 or 331, the corporation making such
distribution shall be treated as having purchased such
stock for purposes of this section.
``(2) Payments with respect to derivatives treated as
separate transactions.--Except as otherwise provided by the
Secretary, any payment with respect to any derivative shall be
treated as a separate transaction for purposes of this section.
``(h) Application to Transactions by Controlled Foreign
Corporations.--
``(1) In general.--For purposes of this section, a
controlled foreign corporation shall be treated as a United
States person.
``(2) Special rules for payment of tax on direct, etc.,
transactions.--In the case of any transaction which is a
covered transaction solely by reason of paragraph (1) and which
is not described in subsection (f)(1)--
``(A) Payment by united states shareholders.--Any
tax which would (but for this paragraph) be payable
under subsection (f)(2) by the controlled foreign
corporation shall, in lieu thereof, be paid by the
United States shareholders of such controlled foreign
corporation as provided in subparagraph (B).
``(B) Pro rata shares.--Each such United States
shareholder shall pay the same proportion of such tax
as--
``(i) the stock which such United States
shareholder owns (within the meaning of section
958(a)) in such controlled foreign corporation,
bears to
``(ii) the stock so owned by all United
States shareholders in such controlled foreign
corporation.
``(C) Definitions.--For purposes of this
subsection, the terms `United States shareholder' and
`controlled foreign corporation' have the meanings
given such terms in sections 951(b) and 957(a),
respectively.
``(i) Administration.--The Secretary shall carry out this section
in consultation with the Securities and Exchange Commission and the
Commodity Futures Trading Commission.
``(j) Guidance; Regulations.--The Secretary shall--
``(1) provide guidance regarding such information reporting
concerning covered transactions as the Secretary deems
appropriate, and
``(2) prescribe such regulations as are necessary or
appropriate to prevent avoidance of the purposes of this
section, including the use of non-United States persons in such
transactions.
``SEC. 4476. DERIVATIVE DEFINED.
``(a) In General.--For purposes of this subchapter, except as
otherwise provided in this section, the term `derivative' means any
contract (including any option, forward contract, futures contract,
short position, swap, or similar contract) the value of which, or any
payment or other transfer with respect to which, is (directly or
indirectly) determined by reference to one or more of the following:
``(1) Any share of stock in a corporation.
``(2) Any partnership or beneficial ownership interest in a
partnership or trust.
``(3) Any evidence of indebtedness.
``(4) Except as provided in subsection (b)(1), any real
property.
``(5) Any commodity which is actively traded (within the
meaning of section 1092(d)(1)).
``(6) Any currency.
``(7) Any rate, price, amount, index, formula, or
algorithm.
``(8) Any other item as the Secretary may prescribe.
Except as provided in regulations prescribed by the Secretary to
prevent the avoidance of the purposes of this subchapter, such term
shall not include any item described in paragraphs (1) through (8).
``(b) Exceptions.--
``(1) Certain real property.--
``(A) In general.--For purposes of this subchapter,
the term `derivative' shall not include any contract
with respect to interests in real property (as defined
in section 856(c)(5)(C)) if such contract requires
physical delivery of such real property.
``(B) Options to settle in cash.--
``(i) In general.--For purposes of
subparagraph (A), a contract which provides for
an option of cash settlement shall not be
treated as requiring physical delivery of real
property unless the option is--
``(I) not exercisable
unconditionally, and
``(II) exercisable only in unusual
and exceptional circumstances.
``(ii) Option of cash settlement.--For
purposes of clause (i), a contract provides an
option of cash settlement if the contract
settles in (or could be settled in) cash or
property other than the underlying real
property.
``(2) Securities lending, sale-repurchase, and similar
financing transactions.--To the extent provided by the
Secretary, for purposes of this subchapter, the term
`derivative' shall not include the right to the return of the
same or substantially identical securities transferred in a
securities lending transaction, sale-repurchase transaction, or
similar financing transaction.
``(3) Options received in connection with the performance
of services.--For purposes of this subchapter, the term
`derivative' shall not include any option described in section
83(e)(3) received in connection with the performance of
services.
``(4) Insurance contracts, annuities, and endowments.--For
purposes of this subchapter, the term `derivative' shall not
include any insurance, annuity, or endowment contract issued by
an insurance company to which subchapter L applies (or issued
by any foreign corporation to which such subchapter would apply
if such foreign corporation were a domestic corporation).
``(5) Derivatives with respect to stock of members of same
worldwide affiliated group.--For purposes of this subchapter,
the term `derivative' shall not include any derivative
(determined without regard to this paragraph) with respect to
stock issued by any member of the same worldwide affiliated
group (as defined in section 864(f)) in which the taxpayer is a
member.
``(6) Commodities used in normal course of trade or
business.--For purposes of this subchapter, the term
`derivative' shall not include any contract with respect to any
commodity if--
``(A) such contract requires physical delivery with
the option of cash settlement only in unusual and
exceptional circumstances, and
``(B) such commodity is used (and is used in
quantities with respect to which such derivative
relates) in the normal course of the taxpayer's trade
or business (or, in the case of an individual, for
personal consumption).
``(c) Contracts With Embedded Derivative Components.--
``(1) In general.--If a contract has derivative and
nonderivative components, then each derivative component shall
be treated as a derivative for purposes of this subchapter. If
the derivative component cannot be separately valued, then the
entire contract shall be treated as a derivative for purposes
of this subchapter.
``(2) Exception for certain embedded derivative components
of debt instruments.--A debt instrument shall not be treated as
having a derivative component merely because--
``(A) such debt instrument is denominated in a
nonfunctional currency (as defined in section
988(c)(1)(C)(ii)), or
``(B) payments with respect to such debt instrument
are determined by reference to the value of a
nonfunctional currency (as so defined).
``(d) Treatment of American Depository Receipts and Similar
Instruments.--Except as otherwise provided by the Secretary, for
purposes of this subchapter, American depository receipts (and similar
instruments) with respect to shares of stock in foreign corporations
shall be treated as shares of stock in such foreign corporations.''.
(b) Information Reporting With Respect to Controlled Foreign
Corporations.--Section 6038(a)(1)(B) of such Code is amended by
inserting ``and transactions which are covered transactions for
purposes of section 4475 by reason of the application of section
4475(h)(1) to such corporation'' before the semicolon at the end.
(c) Conforming Amendment.--The table of subchapters for chapter 36
of such Code is amended by inserting after the item relating to
subchapter B the following new item:
``subchapter c. tax on trading transactions''.
(d) Effective Date.--The amendments made by this section shall
apply to transactions after December 31, 2024.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Work and Welfare.
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