< Back to H.R. 960 (104th Congress, 1995–1996)

Text of the Persons With Disabilities Trusts Tax Rate Restoration Act

This bill was introduced on February 15, 1995, in a previous session of Congress, but was not enacted. The text of the bill below is as of Feb 15, 1995 (Introduced).

Source: GPO

HR 960 IH

104th CONGRESS

1st Session

H. R. 960

To amend the Internal Revenue Code of 1986 to repeal the 1993 Federal income tax rate increases on trusts established for the benefit of individuals with disabilities.

IN THE HOUSE OF REPRESENTATIVES

February 15, 1995

Mr. PAYNE of Virginia 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 repeal the 1993 Federal income tax rate increases on trusts established for the benefit of individuals with disabilities.

    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 ‘Persons With Disabilities Trusts Tax Rate Restoration Act’.

SEC. 2. REPEAL OF 1993 RATE INCREASES ON TRUSTS FOR INDIVIDUALS WHO ARE DISABLED OR FOR COLLEGE EDUCATIONS.

    (a) IN GENERAL- Section 1(e) of the Internal Revenue Code of 1986 (relating to tax imposed on estates and trusts) is amended to read as follows:

    ‘(e) ESTATES AND TRUSTS-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), there is hereby imposed on the taxable income of--

        ‘(A) every estate, and

        ‘(B) every trust,

      taxable under this subsection a tax determined in accordance with the following table:

‘If taxable income is:

The tax is:

Not over $1,500


15% of taxable income.

Over $1,500 but not over $3,500


$225, plus 28% of the excess over $1,500.

Over $3,500 but not over $5,500


$785, plus 31% of the excess over $3,500.

Over $5,500 but not over $7,500


$1,405, plus 36% of the excess over $5,500.

Over $7,500


$2,125, plus 39.6% of the excess over $7,500.

      ‘(2) SPECIAL RULE FOR CERTAIN TRUSTS-

        ‘(A) IN GENERAL- There is hereby imposed on the taxable income of an eligible trust taxable under this subsection a tax determined in accordance with the following table:

‘If taxable income is:

The tax is:

Not over $3,300


15% of taxable income.

Over $3,300 but not over $9,900


$495, plus 28% of the excess over $3,300.

Over $9,900


$2,343, plus 31% of the excess over $9,900.

        ‘(B) ELIGIBLE TRUST- For purposes of subparagraph (A), the term ‘eligible trust’ means a trust which is established exclusively for the purpose of providing reasonable amounts for the support and maintenance of 1 or more beneficiaries each of whom is an individual who is mentally ill or has a disability (within the meaning of section 3(2) of the Americans With Disabilities Act of 1990 (42 U.S.C. 12102(2)) at the time the trust is established. A trust shall not fail to meet the requirements of this subparagraph merely because the corpus of the trust may revert to the grantor or a member of the grantor’s family upon the death of the beneficiary.’

    (b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 1992.