HR 4986 RH

Calendar No. 500

106th CONGRESS

2d Session

H. R. 4986

[Report No. 106-845]

To amend the Internal Revenue Code of 1986 to repeal the provisions relating to foreign sales corporations (FSCs) and to exclude extraterritorial income from gross income.

IN THE HOUSE OF REPRESENTATIVES

July 27, 2000

Mr. ARCHER introduced the following bill; which was referred to the Committee on Ways and Means

September 13, 2000

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on July 27, 2000]


A BILL

To amend the Internal Revenue Code of 1986 to repeal the provisions relating to foreign sales corporations (FSCs) and to exclude extraterritorial income from gross income.

SECTION 1. SHORT TITLE.

SEC. 2. REPEAL OF FOREIGN SALES CORPORATION RULES.

SEC. 3. TREATMENT OF EXTRATERRITORIAL INCOME.

`SEC. 114. EXTRATERRITORIAL INCOME.

`Subpart E--Qualifying Foreign Trade Income

`Sec. 941. Qualifying foreign trade income.

`Sec. 942. Foreign trading gross receipts.

`Sec. 943. Other definitions and special rules.

`SEC. 941. QUALIFYING FOREIGN TRADE INCOME.

`SEC. 942. FOREIGN TRADING GROSS RECEIPTS.

`SEC. 943. OTHER DEFINITIONS AND SPECIAL RULES.

trade income which would (but for this subsection) be treated as from sources without the United States if the foreign trade income were reduced by an amount equal to 4 percent of the foreign trading gross receipts with respect to the transaction, and

SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS.

`Sec. 114. Extraterritorial income.'

`Subpart E. Qualifying foreign trade income.'

SEC. 5. EFFECTIVE DATE.

FSC or any related person to which such amendments would apply but for the application of paragraph (1). Such election shall be effective for the taxable year for which made and all subsequent taxable years, and, once made, may be revoked only with the consent of the Secretary of the Treasury.

Calendar No. 500

106th CONGRESS

2d Session

H. R. 4986

[Report No. 106-845]

A BILL

To amend the Internal Revenue Code of 1986 to repeal the provisions relating to foreign sales corporations (FSCs) and to exclude extraterritorial income from gross income.


September 13, 2000

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

END