< Back to H.R. 2923 (106th Congress, 1999–2000)

Text of To amend the Internal Revenue Code of 1986 to extend expiring provisions, to fully allow the nonrefundable personal credits against ...

...personal credits against regular tax liability, and for other purposes.

This bill was introduced on September 24, 1999, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 23, 1999 (Introduced).

This is not the latest text of this bill.

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HR 2923 IH

106th CONGRESS

1st Session

H. R. 2923

To amend the Internal Revenue Code of 1986 to extend expiring provisions, to fully allow the nonrefundable personal credits against regular tax liability, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

September 23, 1999

Mr. ARCHER 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 extend expiring provisions, to fully allow the nonrefundable personal credits against regular tax liability, and for other purposes.

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

SECTION 1. NONREFUNDABLE PERSONAL CREDITS FULLY ALLOWED AGAINST REGULAR TAX LIABILITY.

    (a) IN GENERAL- Subsection (a) of section 26 of the Internal Revenue Code of 1986 (relating to limitation based on amount of tax) is amended to read as follows:

    ‘(a) LIMITATION BASED ON AMOUNT OF TAX- The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the taxpayer’s regular tax liability for the taxable year.’.

    (b) CHILD CREDIT- Subsection (d) of section 24 of such Code is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1998.

SEC. 2. RESEARCH CREDIT.

    (a) EXTENSION-

      (1) IN GENERAL- Paragraph (1) of section 41(h) of the Internal Revenue Code of 1986 (relating to termination) is amended--

        (A) by striking ‘June 30, 1999’ and inserting ‘June 30, 2004’, and

        (B) by striking the material following subparagraph (B).

      (2) TECHNICAL AMENDMENT- Subparagraph (D) of section 45C(b)(1) of such Code is amended by striking ‘June 30, 1999’ and inserting ‘June 30, 2004’.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall apply to amounts paid or incurred after June 30, 1999.

    (b) INCREASE IN PERCENTAGES UNDER ALTERNATIVE INCREMENTAL CREDIT-

      (1) IN GENERAL- Subparagraph (A) of section 41(c)(4) of such Code is amended--

        (A) by striking ‘1.65 percent’ and inserting ‘2.65 percent’,

        (B) by striking ‘2.2 percent’ and inserting ‘3.2 percent’, and

        (C) by striking ‘2.75 percent’ and inserting ‘3.75 percent’.

      (2) EFFECTIVE DATE- The amendments made by this subsection shall apply to taxable years beginning after June 30, 1999.

    (c) SPECIAL RULE-

      (1) IN GENERAL- For purposes of the Internal Revenue Code of 1986, the credit determined under section 41 of such Code which is attributable to the suspension period--

        (A) shall not be taken into account under section 6654 or 6655 of such Code for any taxable year in determining the amount of any installment the due date for which is before October 1, 2000, and

        (B) shall not be allowed for any taxable year ending before October 1, 2000.

      (2) SUSPENSION PERIOD- For purposes of this subsection, the suspension period is the period beginning on July 1, 1999, and ending on September 30, 2000.

      (3) SUSPENDED CREDIT TREATED AS PAYMENT OF TAX ON OCTOBER 1, 2000-

        (A) IN GENERAL- The amount of credit not allowed by reason of paragraph (1) for any taxable year ending before October 1, 2000, shall be treated as a payment of tax imposed by chapter 1 of such Code for such taxable year which is made on such date.

        (B) ACCELERATED REFUNDS- If, as a result of the payment referred to in subparagraph (A) with respect to a taxable year, there is an overpayment of tax for such year, the taxpayer may file an application for a tentative refund of such overpayment. Such application shall be in such manner and form, and contain such information, as the Secretary may prescribe.

        (C) DEADLINE FOR APPLICATIONS- Subparagraph (B) shall apply only to applications filed before October 1, 2001.

        (D) ALLOWANCE OF ADJUSTMENTS- Not later than 90 days after the date on which an application is filed under this paragraph, the Secretary shall--

          (i) review the application,

          (ii) determine the amount of the overpayment, and

          (iii) apply, credit, or refund such overpayment,

        in a manner similar to the manner provided in section 6411(b) of such Code.

        (E) CONSOLIDATED RETURNS- The provisions of section 6411(c) of such Code shall apply to an adjustment under this paragraph in such manner as the Secretary may provide.

      (4) CREDIT ATTRIBUTABLE TO SUSPENSION PERIOD-

        (A) IN GENERAL- For purposes of this subsection, in the case of a taxable year which includes a portion of the suspension period, the amount of credit determined under section 41 of such Code for such taxable year which is attributable to such period is the amount which bears the same ratio to the amount of credit determined under such section 41 for such taxable year as the number of months in the suspension period which are during such taxable year bears to the number of months in such taxable year.

        (B) WAIVER OF ESTIMATED TAX PENALTIES- No addition to tax shall be made under section 6654 or 6655 of such Code for any period before July 1, 1999, with respect to any underpayment of tax imposed by such Code to the extent such underpayment was created or increased by reason of subparagraph (A).

      (5) SECRETARY- For purposes of this subsection, the term ‘Secretary’ means the Secretary of the Treasury (or such Secretary’s delegate).

SEC. 3. SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) IN GENERAL- Sections 953(e)(10) and 954(h)(9) of the Internal Revenue Code of 1986 (relating to application) are each amended--

      (1) by striking ‘the first taxable year’ and inserting ‘taxable years’,

      (2) by striking ‘January 1, 2000’ and inserting ‘January 1, 2005’, and

      (3) by striking ‘within which such’ and inserting ‘within which any such’.

    (b) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1999.

SEC. 4. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR MARGINAL PRODUCTION.

    (a) IN GENERAL- Subparagraph (H) of section 613A(c)(6) of the Internal Revenue Code of 1986 (relating to temporary suspension of taxable limit with respect to marginal production) is amended by striking ‘January 1, 2000’ and inserting ‘January 1, 2005’.

    (b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 1999.

SEC. 5. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT.

    (a) TEMPORARY EXTENSION- Sections 51(c)(4)(B) and 51A(f) of the Internal Revenue Code of 1986 (relating to termination) are each amended by striking ‘June 30, 1999’ and inserting ‘December 31, 2001’.

    (b) CLARIFICATION OF FIRST YEAR OF EMPLOYMENT- Paragraph (2) of section 51(i) of such Code is amended by striking ‘during which he was not a member of a targeted group’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to individuals who begin work for the employer after June 30, 1999.