--H.R.4986--

H.R.4986

One Hundred Sixth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

An Act

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.

SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS.

`Sec. 114. Extraterritorial income.'.

`Subpart E. Qualifying foreign trade income.'.

SEC. 5. EFFECTIVE DATE.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.

END