United States · United States Congress · 23 January 1986
Amends the Internal Revenue Code to extend the termination date of the residential energy tax credit for solar property from December 31, 1985, to July 31, 1986. Sets forth definitions and special rules for solar property during such extension period. Extends the energy investment tax credit for solar energy property from December 31, 1985, to July 31, 1986. Sets forth special rules for solar property eligible for such credit during such extension period.
United States · United States Congress · 23 January 1986
Live Birth Abortion Revision Act - Amends the Internal Revenue Code to deny a taxpayer's personal exemption deduction for a child who is born alive after an induced abortion or an attempt to perform an abortion and dies as a result of such procedure. Denies the deduction for abortion expenses unless the abortion was performed to save the life of the mother. Denies the personal exemption deduction for the spouse or a dependent of the taxpayer if the taxpayer intentionally causes the death of such spouse or dependent. Requires a court determination of an intentional cause of death.
United States · United States Congress · 23 January 1986
Expresses disapproval of the refusal of the U.S.S.R. to recognize the sovereignty of the Baltic Republics. Designates the 14th day of June 1986 as Baltic Freedom Day. Authorizes and requests the President to submit the issue of Baltic self-determination to the United Nations.
United States · United States Congress · 22 January 1986
Whistleblower Protection Act of 1986 - Separates the Office of Special Counsel from the Merit Systems Protection Board. Empowers the Special Counsel to represent and act as legal counsel on behalf of employees alleging prohibited personnel practices, especially whistleblowers. Revises current law with respect to the Special Counsel to reflect its advocate status. Authorizes the Special Counsel to file a petition to the Board against an official for: (1) committing prohibited personnel practices; (2) violating a law within the jurisdiction of the Special Counsel; or (3) failing to comply with an order of the Board. Sets forth disciplinary actions for such officials. Requires the Special Counsel to report annually to the Congress on its activities. Authorizes employees who have been adversely affected by a prohibited personnel practice to bring an action before the Board (instead of or in addition to taking such action to the Special Counsel). Authorizes such employees to obtain judicial review of the Board's decision in the appropriate U.S. district court. Authorizes appropriations for the Merit Systems Protection Board for 1987 through 1991 and for the Office of Special Counsel for FY 1987 through 1989.
United States · United States Congress · 21 January 1986
Amends the Internal Revenue Code to treat the use of a public vehicle by a public employee as a working condition fringe for purposes of the tax exclusion of certain employee fringe benefits. Defines a "public vehicle" as a vehicle used by a governmental unit to provide law enforcement, fire protection, emergency medical service, or any other service relating to the public safety. Treats the use of a farm use vehicle by an employee as a working condition fringe. Defines a "farm use vehicle" as any vehicle which is not a passenger automobile and is used in the employer's trade or business of farming.
United States · United States Congress · 19 December 1985
Expresses the sense of the House of Representatives that: (1) the President should continue to express to the Soviet Union U.S. opposition with respect to the harassment and arrests of Hebrew teachers and Jewish activists in the Soviet Union; and (2) the Soviet Union should comply with its commitments under specified international human rights agreements and cease its persecution of individuals on the basis of their Jewish faith.
United States · United States Congress · 18 December 1985
Prohibits any State from imposing corporate income taxes on a worldwide unitary basis, unless (1) the taxpayer fails to comply with certain Federal reporting requirements; or (2) neither the taxpayer nor the government of the relevant foreign country provides the State certain information relating to the income of the taxpayer. Limits the State taxation of dividends received by U.S. companies from foreign corporations. Sets forth certain definitions. Requires certain multistate and multinationalal corporations to file informational returns within 180 days of the due date of the federal income tax return disclosing certain information relating to the State taxation of corporate income such as: (1) the corporation's income tax liability to each State in which it is liable to pay income tax; (2) its income subject to tax in each State; and (3) the method of calculation by which the reporting corporation computed and allocated its income subject to tax by each state. Imposes a $1,000 penalty for failure to file the informational return. Increases the penalty where the failure to file continues after the taxpayer has been notified of such requirement. Sets a maximum penalty for failure to file at $24,000. Permits the disclosure of certain tax information to a State tax agency under certain conditions. Sets forth certain procedures and restrictions relating to the information disclosure.
United States · United States Congress · 18 December 1985
Rural Satellite Dish Owners Protection Act - Amends the Communications Act of 1934 to prohibit encryption of any satellite cable programming for private viewing beginning 30 days after enactment of this Act, unless: (1) the encryption complies with Federal Communications Commission standards; (2) decryption devices are available for lease or purchase by all interested persons within 60 days after request at a reasonable price relative to manufacturing and distribution costs; and (3) monthly subscription fees for such programming do not exceed fees assessed to cable subscribers within the same vicinity. Provides for the civil enforcement of this Act.
United States · United States Congress · 10 December 1985
Expresses the sense of the Congress that the President should take measures to encourage the Government of Indonesia to: (1) allow and maintain access into East Timor for humanitarian organizations, journalists, church delegations, and human rights groups; (2) guarantee freedom of expression for the Roman Catholic Church in East Timor; (3) allow an impartial international examination of population limitation measures and the conditions that exist in areas where East Timorese have been resettled by Indonesian authorities; (4) allow qualified international observers to be present at the trials of East Timorese political prisoners; and (5) work with the U.S. and Portuguese governments to develop peace initiatives for East Timor.
United States · United States Congress · 9 December 1985
Tax Fairness and Reform Act of 1985 - Redesignates the Internal Revenue Code of 1954 as the Internal Revenue Code of 1985. Title I: Individual Income Tax Provisions- Subtitle A: Rate Reductions; Increase in Standard Deduction and Personal Exemptions - Reduces the tax rates and consolidates the tax brackets into four brackets, consisting of a 15 percent, a 25 percent, a 35 percent, and a 37 percent tax bracket. Requires the Secretary of the Treasury (Secretary) to prescribe tax tables annually which will provide for a cost-of-living adjustment to prevent any tax increases resulting from inflation. Increases the amounts of the standard deduction to: (1) $4,600 for joint returns or surviving spouses; (2) $4,026 for head of households; (3) $2,828 for single individuals; and (4) $2,300 for married individuals filing separate returns. Provides for an annual inflation adjustment to be made to the standard deduction. Provides certain rules for the standard deduction. Allows an additional amount for the aged and the blind. Raises the personal exemption amount to $2,000. Provides for an annual inflation adjustment for years after 1986 for the amount of the personal exemption. Provides that the exemption deduction shall not reduce tax by an amount exceeding 25 percent of the exemption amount. Phases out the exemption for taxpayers whose taxable income exceeds $100,000. Makes certain technical amendments. Subtitle B: Provisions Related to Tax Credits - Increases the earned income credit percentage to 14 percent and the maximum dollar limitation of earned income to which the percentage applies to $7,143. Increases the income level at which the earned income credit is phased out. Repeals the tax credit for contributions to candidates for public office. Makes certain other technical amendments pertaining to various tax credits. Subtitle C: Provisions Related to Exclusions - Allows a $5,000 limit on the exclusion of amounts received by an employee for dependent care assistance. Requires unemployment compensation to be included in the gross income of an individual. Provides that gross income does not include any amount received as a qualified scholarship grant by an individual who is a candidate for a degree at an educational organization. Sets forth other rules and limitations relating to scholarship grants and tuition reduction arrangements. Provides that employee gifts are not excludible from gross income. Subtitle D: Provisions Related to Deductions - Repeals the deduction for two-earner married couples. Provides that miscellaneous itemized deductions shall be allowed for the taxable year only to the extent that the aggregate of such deductions exceeds one percent of adjusted gross income. Permits the costs paid in connection with the administration of an estate or trust to be allowed as a deduction in computing the adjusted gross income of the estate or trust. Provides that nonreimbursed business expenses of employees are subject to the one percent floor on deductions. Makes permanent the charitable deduction for individuals who do not itemize deductions. Repeals the deduction for adoption expenses. Provides certain dollar limitations on the amount of consumer interest which may be deducted during the taxable year. Prohibits the deduction of any consumer interest on a loan incurred or continued for purchase of a foreign car. Repeals the deduction for State and local sales taxes and personal property taxes. Provides for an overall limitation on the aggregate amount of itemized deductions other than deductions for charitable contributions and qualified residence interest. Subtitle E: Miscellaneous Provisions - Repeals the income averaging provisions for figuring tax liability. Imposes certain additional restrictions and limitations on the allowance of deductions for meals, travel, and entertainment business expenses. Modifies the rules relating to the treatment of hobby loss deductions. Allows the deduction for mortgage interest and real property taxes in those cases where a parsonage allowance or military housing allowance is received. Requires certain information reporting with respect to income taxes and real and personal property taxes. Repeals the checkoff for the presidential election campaign fund contribution. Subtitle F: Effective Dates - Sets forth the effective dates for the provisions of this title. Title II: Capital Income Provisions - Subtitle A: Depreciation Provisions - Repeals the accelerated cost recovery system of depreciation and replaces such system with the incentive depreciation system for tangible property. Sets forth various rules and procedures for the operation of the incentive depreciation system. Modifies the recapture of depreciation rules relating to the gain from disposition of certain depreciable realty. Sets forth the effective dates for the new depreciation provisions, and various transitional rules. Subtitle B: Regular Investment Tax Credit - Provides that the regular investment tax credit percentage shall be five percent and shall apply only to qualified domestically produced property. Sets forth certain exceptions to this requirement. Subtitle C: Changes in Certain Rapid Amortization Provisions - Repeals the five-year amortization period for trademark and trade name expenditures. Makes permanent the depreciation deduction for expenditures to rehabilitate low-income housing. Increases to $30,000 the amount of expenditures per dwelling unit which may be taken into account in the depreciation of the expenses over the 60-month period. Subtitle D: Other Capital Related Costs - Extends the termination of the tax credit for increasing research activities for three years. Reduces the amount of the credit to 20 percent. Reduces to 20 percent the research credit for basic research payments to colleges, universities, and certain research organizations. Sets forth certain definitions and special rules relating to payments for basic research. Makes modifications in the rules concerning the investment tax credit for rehabilitation expenditures. Subtitle E: Capital Gains and Losses - Retains the maximum 20 percent capital gains tax. Retains the maximum 32 percent tax on commodity future contract gains. Establishes provisions for the indexing of certain assets for purposes of determining gain or loss. Sets forth such procedures. Repeals the provisions relating to the disposal of coal or domestic iron ore with a retained economic interest therein. Subtitle F: Provisions Relating to Oil and Gas - Modifies the percentage depletion percentages for independent producers and royalty owners. Disallows the use of percentage depletion with respect to lease bonus amounts. Phases out the allowance of percentage depletion deductions with respect to geothermal deposits. Allows an exemption from the windfall profits tax for certain crude oil exchanged for residential fuel oil. Makes permanent the reduced excise tax rate on fuel used by taxicabs for providing taxicab services. Subtitle G: Treatment of Hard Minerals - Reduces the percentage depletion deduction with respect to certain hard minerals. Sets forth rules pertaining to the tax treatment of development and mining exploration expenditures. Title III: Corporate Provisions - Subtitle A: Corporate Rate Reductions - Reduces the tax rates on corporate income and establishes three tax brackets ranging from 15 percent to 33 percent, with the middle bracket being 25 percent. Requires an additional amount of tax where the taxable income of the corporation is in excess of $100,000. Provides for a phasein of the reduction in the tax rates during the period from 1986 through 1990. Provides for an alternative tax for corporations which have a net capital gain for any taxable year. Computes this tax by computing the sum of the tax on the taxable income reduced by the net capital gain, plus 28 percent of the pre-1986 net capital gain, plus the applicable percentage of timber, iron, or coal capital gain, plus 33 percent of the net capital gains. Reduces the dividend received deduction over a period of years from 1986 through 1991. Reduces the dividend received deduction percentage over this period from 85 percent to 75 percent. Repeals the partial exclusion of dividends received by individuals. Prohibits the deduction of expenses incurred by a corporation in connection with the redemption of its stock. Subtitle B: Limitation on Net Operating Loss Carryforward and Excess Credit Carryforwards - Provides a limitation of net operating loss carryforwards. Sets forth rules and procedures for computing such limitation on net operating loss carryforwards. Establishes special limitation on certain excess credits for certain taxable years. Subtitle C: Recognition of Gain and Loss on Distributions of Property in Liquidation - Requires the recognition of gain or loss to a corporation on the distribution of property in complete liquidation as if such property were sold to the distributee at fair market value except for certain corporate liquidations. Provides certain exceptions to this rule of recognition of gain or loss. Provides for the nonrecognition of gain or loss on the sale or exchange of property by a corporation in certain types of liquidation proceedings. Sets forth rules and exceptions for such nonrecognition treatment. Provides certain technical amendments regarding the liquidation provisions. Sets forth effective dates for these provisions relating to gain or loss recognition in liquidations. Subtitle D: Real Estate Investment Trusts - Makes modifications in the rules affecting a real estate investment trust's (REIT) earnings and profits under the depreciation provisions. Exempts REITs from the special rules relating to corporate tax preference items. Expands the types of sales which may be made by a REIT without the imposition of the 100 percent prohibited transaction tax. Modifies the rule relating to the exclusion of amounts received with respect to rental property that a REIT operates other than through an independent contractor. Makes changes in the standards for disqualifications of a REIT as a personal holding company. Permits a REIT to have a wholly owned subsidiary. Modifies the present rules relating to REITs which disqualify income in the form of rents or interests based on net income or profits of the tenant or borrower. Makes changes in the rule regarding the payment of capital gain dividends by REITs that have net operating loss carryovers from prior years. Permits net losses from prohibited transactions to be taken into account in computing a REITs taxable income. Requires the special notice for capital gains dividends to be mailed to the Secretary within 45 days after the close of the REITs taxable year. Makes modifications in the tax penalty imposed on a REIT involved in making a deficiency dividend distribution due to an adjustment of the REITs taxable income. Excludes from the REIT distribution requirements non-cash income recognized by a REIT under certain deferred payment and installment sales rules added by the Deficit Reduction Act of 1984. Excludes from the REIT distribution requirements the income recognized by a REIT upon a determination that an exchange of real property failed to qualify for nonrecognition of gain as like-kind property. Title IV: Tax Shelters - Extends the at-risk limitation rules to real property. Limits the amount of the deduction for investment interest for taxpayers, other than corporations, to $10,000 plus the net investment income for the taxable year. Permits the carryover of disallowed investment interest to succeeding taxable years. Sets forth special rules and definitions relating to the limitation on the deduction of investment interest. Title V: Alternative Minimum Tax - Subtitle A: General Provisions - Makes modifications in the alternative minimum tax provisions of the Code. Provides that the alternative minimum tax is determined to be the excess of the tentative minimum tax amount over the regular tax for the taxable year. Computes the tentative minimum tax by multiplying the alternative minimum taxable income as exceeds the exemption amount by 22.5 percent (20 percent in the case of a corporation), reduced by the alternative minimum tax foreign tax credit. Sets the exemption amounts for taxpayers, other than corporat: ions, at: (1) $30,000 for a joint return; (2) $25,000 for singles and surviving spouses; and (3) $15,000 for married people filing separately. Reduces the exemption for taxpayers with a taxable income in excess of $175,000. Allows corporations an exemption amount of $40,000. Sets forth special rules and definitions relating to the alternative minimum tax. Subtitle B: Treatment of Existing Carryforwards of Steel Companies - Provides an effective 15-year carryback of existing unused business credit carryforwards of steel companies. Provides that the existing carryforwards of qualified corporations may offset 75 percent of the minimum tax of the corporation. Establishes a $300,000,000 limit on the carryforward amounts which may be used. Sets forth certain definitions. Title VI: Foreign Provisions - Subtitle A: Modification in Regulations Allocating Research and Experimental Expenditures - Establishes a two year modification in regulations providing for allocation of research and experimental expenditures. Subtitle B: Possessions Tax Credit Changes - Makes certain modifications in the possession tax credit provisions. Subtitle C: Tax Treatment of Possessions - Part I: Permits Guam, American Samoa, and the Northern Mariana Islands to enact revenue laws. Requires the existence of certain implementing agreements providing for measures which alleviate certain problems relating to tax administration. Excludes from the gross income of a bona fide resident of Guam, American Samoa, and the Northern Mariana Islands the income derived from or effectively connected with such possessions. Modifies the definition of controlled foreign corporation for purposes of corporations organized in Guam, American Samoa, or the Northern Mariana Islands. Modifies the withholding requirements with respect to a corporation created or organized in Guam, American Samoa, the Northern Mariana Islands, or the Virgin Islands. Part II: Treatment of the Virgin Islands - Provides for the coordination of the United States and the Virgin Islands individual income tax provisions. Permits Virgin Islands corporations to use the possession tax credit. Part III: Cover Over of Income Taxes - Provides that the net collection of taxes for each taxable year with respect to certain individuals shall be covered into the Treasury of the possession (Guam, American Samoa, the Northern Mariana Islands, or the Virgin Islands) of which such individual is a bona fide resident. Provides for transfers of other amounts to these possessions with respect to military personnel and certain employees of the United States. Part IV: Effective Date - Sets forth the effective date for these provisions relating to Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands. Subtitle D: Excise Tax on Certain Broadcast for Olympic Events - Imposes an excise tax of ten percent on amounts paid for United States television and radio broadcast rights for Olympic events. Sets forth special rules and definitions pertaining to this special excise tax. Establishes within the Treasury the United States Olympic Trust Fund. Provides that the amounts collected from the special excise tax, less any administrative expenses relating to such tax, shall be transferred to the Trust Fund. Subtitle E: Excise Tax on Insurance Premiums Paid to Foreign Insurers - Imposes a four percent excise tax on certain insurance policies, indemnity bonds, annuity contracts or policies of reinsurance issued by foreign insurer. Provides for the withholding of such excise tax by the insured or withholding agent on policies issued by the insured or withholding agent on policies issued by a foreign insurers. Sets forth certain definitions and special rules. Subtitle F: Treatment of Certain Employees of Panama Canal Commission - Provides that nothing in the Panama Canal Treaty shall be construed as exempting any citizen or resident of the United States from income tax of the United States. Permits the exclusion of certain allowances by employees of the Panama Canal Commission stationed in Panama. Title VII: Tax-Exempt Bonds - Modifies the definition of arbitrage bonds with respect to the acquisition of annuity contracts. Provides for the treatment of tax increment bonds issued before January 1, 1986. Title VIII: Financial Institutions - Prohibits large banks (banks where the average adjusted bases of all assets of such bank exceeds $500,000,000) from taking the deduction for additions to a reserve for bad debts. Sets forth special rules and definitions. Requires the pro rata allocation of interest expenses of financial institutions with respect to the interest expenses which are allocable to tax-exempt interest. Sets forth certain definitions and special rules. Terminates the special ten-year carryback rules with respect to certain financial institutions on January 1, 1986. Repeals the special reorganization rules with respect to financial institutions. Provides that losses resulting from the loss on an individual's deposit in a qualified financial institution as a result of bankruptcy or insolvency of such institution shall be treated as a casualty loss. Title IX: Accounting Provisions - Subtitle A: General Provisions - Permits an eligible small business to use the simplified dollar-value method of pricing inventories for purposes of the LIFO method of accounting. Sets forth special rules and definitions with respect to the simplified dollar-value method of pricing. Requires that the taxable income of a "C corporation" or a partnership which has a "C corporation" partner must be computed under an accounting method other than the cash receipts and disbursement method of accounting. Sets forth certain exceptions to this rule and provides special rules and definitions. Requires the recognition of gain on pledges of certain installment obligations. Excepts certain sales of particular capital assets. Provides special rules and definitions. Requires income related to a long-term contract to be determined under the percentage of completion method of accounting. Requires, upon completion of the contract, the taxpayer to pay (or be entitled to receive) interest computed under the "look-back" method. Establishes the "look-back" method for computing the interest costs. Sets forth certain definitions, exceptions, and special rules. Requires any taxpayer who produces real or personal property to capitalize the following cost: (1) the direct cost of such production; and (2) such production's proper share of those indirect costs (including taxes), part or all of which are assignable to such production. Provides exceptions to the general rule of capitalization of costs for certain activities. Sets forth certain definitions and special rules relating to capitalization of production costs. Repeals the reserve for bad debt deduction of taxpayers other than financial institutions. Restricts the vacation-pay deduction for accrual method taxpayers by requiring the amounts to be paid within the taxable year or within eight and one-half months following the close of the taxable year. Includes in the gross income of the taxpayer amounts contributed in aid of construction. Subtitle B: Provisions Relating to Timber - Permits qualified timber producers to elect to expense (and claim as a deduction during the taxable year) 50 percent of the qualified timber preproductive period expenses paid or incurred during the taxable year. Defines "qualified timber preproductive expense" and "qualified timber producer." Provides certain depreciation rules relating to such taxpayers making this election. Provides that the capital gains tax treatment for timber is not available to corporate taxpayers. Subtitle C: Special Provisions Relating to Agriculture - Repeals the special tax treatment of expenditures for fertilizer and clearing land. Limits the expensing of soil and water conservation expenditures by providing that such expenditures must be consistent with soil conservation plans. Provides that gain from the disposition of converted wetland or highly erodible cropland shall be treated as ordinary income. Requires any loss recognized on the disposition of converted wetland or highly erodible cropland to be treated as long-term capital loss. Sets forth definitions and special rules. Provides rules for the netting of gains and losses by cooperatives among one or more of the allocation units of the cooperative. Sets forth various requirements with respect to such netting. Provides that certain plant variety protection certificates shall be treated as patents for purposes of the taxation on the sale or exchange of patents. Title X: Insurance Products and Companies - Part I: Policyholder Issues - Repeals the exclusion of interest on the installment payments of life insurance proceeds. Provides that the deduction for nonbusiness casualty losses covered by insurance is allowable only if a timely insurance claim with respect to such loss is filed. Provides that the exclusion from income of amounts received with respect to structured settlements is limited to cases involving physical injury. Part II: Life Insurance Companies - Repeals the special life insurance company deduction. Repeals the tax-exempt status for certain organizations providing commercial-type insurance coverage. Provides certain exceptions for activities attributable to high-risk and small groups. Requires the Secretary to conduct a study of fraternal beneficiary associations and report the findings to certain congressional committees. Permits the operations loss deduction of insolvent life insurance companies to offset the distributions from the policyholders surplus account. Part III: Property and Casualty Insurance Companies - Requires that 25 percent of unearned premium reserves be included in income each taxable year. Repeals the provisions allowing deductions for amounts allocated to the protection against loss accounts. Provides that amounts in such accounts shall be includible in income not less rapidly than ratably over a five-year period. Repeals the tax-exempt status of insurance companies or associations other than life or marine if the net written premiums for the taxable year exceed $500,000. Repeals the cap on tax of certain mutual insurance companies where the income is less than $12,000. Revises the alternative tax for certain small companies. Repeals the special small company deduction in computing statutory underwriting income or loss. Provides that the special determination of tentative life insurance company taxable income shall apply to corporations in Virginia and Louisiana. Establishes an advisory commission to conduct a study which will comprehensively analyze all aspects of the taxation of property and casualty insurance companies. Requires the results of such study to be submitted to selected congressional committees and the Secretary no later than March 31, 1988. Title XI: Pensions and Deferred Compensation - Subtitle A: Individual Retirement Accounts - Permits a maximum deduction of $2,000 contributed to an individual retirement account established for the benefit of a spouse. Provides that the $2,000 maximum deduction shall be phased-in over a period of five years. Permits nondeductible contributions to individual retirement plans. Limits the amount of such nondeductible contributions to $2,000 per year maximum. Phases in the maximum amount of the nondeductible contribution limit over a period of five years. Makes certain modifications in the rules relating to the tax treatment of distributions from individual retirement accounts. Requires that certain information be maintained with respect to designated nondeductible contributions to individual retirement accounts and individual retirement annuities. Subtitle B: Cash and Deferred Arrangements - Provides for the coordination of the individual retirement account deduction with other elective deferral provisions of the Code. Provides a $12,000 limit on the tax-free deferral with respect to elective qualified cash or deferred arrangements. Sets forth certain rules with respect to the elective deferrals. Provides that tax-exempt entities are eligible for having certain qualified cash or deferred arrangement plans. Prohibits the Federal Government or State or local governments from maintaining a qualified cash or deferred arrangement. Provides that if any plan amendments are required as a result of provisions of this Act, such amendment shall not be required to be made before the first plan year beginning on or after January 1, 1988. Subtitle C: Basis Recovery Rules for Qualified Pension Plans - Repeals the special rules for employees' annuities where the employee's contributions were recoverable in three years. Provides that amounts not received as annuities are allocated first to income. Subtitle D: Repeal of Exclusion for Cost of Group-Life Insurance - Repeals the exclusion from income for an employee of the cost of group-life insurance purchased by the employer. Subtitle E: Tax Treatment of Parsonage Allowances and Military Housing Allowances - Permits the deduction of mortgage interest and real property taxes by the taxpayer even though a parsonage allowance or military housing allowance has been received. Subtitle F: Additional Tax on Early Withdrawal From Pension Plans - Provides for a ten-percent additional tax on early distributions from certain qualified retirement plans. Exempts certain types of distributions from the ten-percent additional tax. Subtitle G: Treatment of Certain Full-Time Life Insurance Salesmen - Provides that a full-time life insurance salesman shall be considered an employee for purpose of the tax exclusion rules relating to employer cafeteria plans. Subtitle H: Changes Relating to Employee Stock Ownership Plans - Repeals the employee stock ownership tax credit. Terminates the exclusion from the income of certain taxpayers the interest received on loans used to acquire employer securities. Terminates the dividend paid deduction. Terminates the provision for the nonrecognition of gain on the sales of stock to an employee stock ownership plan. Terminates the provision permitting the transfer of certain estate tax liability to an employee stock ownership plan with respect to employer securities transferred to the plan or a worker-owned cooperative. Makes certain changes in the qualification requirements and other requirements with respect to employee stock ownership plans. Provides a special rule for eligible worker-owned cooperatives with respect to the nonrecognition of gain on the sale of securities to such cooperative. Subtitle I: Three Year Extension of the Exclusion for Educational Assistance - Extends for three years, until December 31, 1988, the exclusion from the gross income of an employee amounts paid or expenses incurred by an employer to provide educational assistance to the employee. Title XII: Repeal of Generation-Skipping Tax - Repeals the provisions of the Code providing for the tax on generation-skipping transfers. Provides for a credit or refund of any generation-skipping taxes which have been paid. Waives the statute of limitations with respect to refunds or credits for such taxes. Title XIII: Compliance and Tax Administration - Part I: Penalty for Failure to File Information Returns and Statements - Provides penalties for: (1) failure to file certain information returns; (2) failure to furnish certain payee statements; and (3) failure to include certain information on certain returns and statements. Establishes certain waiver provisions, definitions, and special rules relating to the filing of information returns and statements. Increases the penalty for failure to pay tax in certain cases from 0.5 percent per month to one percent per month. Modifies the provisions relating to the tax penalty in instances involving negligence and fraud. Part II: Estimated Tax Payments by Individuals - Increases the percentage tests for liability of taxpayers to pay estimated tax payments from 80 percent to 90 percent of the tax shown on the return for the taxable year. Part III: Provisions Relating to Attorneys' Fees and Exhaustion of Administrative Remedies - Extends the provisions permitting the awarding of attorneys' fees to the prevailing party in certain tax cases. Provides that Internal Revenue Service employees may be personally liable for court costs in certain cases. Requires the Secretary to report annually for a certain period of time to select congressional committees certain information relating to the awarding of court costs and attorneys' fees in tax cases. Part IV: Tax Administration Provisions - Grants the Secretary the authority to rescind a notice of deficiency mailed to the taxpayer with the consent of the taxpayer. Permits the Secretary to abate interest assessments due to errors or delays by the Internal Revenue Service. Suspends the compounding of interest charges where the interest charges on a deficiency has been suspended. Provides that certain service-connected disability payments are exempt from levy for tax payment. Increases to $100,000 the value of personal property subject to certain listing and notice procedures. Provides that the recordkeeping requirements for the use of an automobile by an agent of the Internal Revenue Service shall be the same as the use of an automobile by an officer of any other law enforcement agency. Part V: Interest Provisions - Establishes rules concerning the differenterial interest rate. Provides that the interest charges on any accumulated earnings tax shall begin to accrue on the date the return is due. Part VI: Modification of Withholding Allowances - Directs the Secretary to modify the withholding schedules to reflect the tax rate changes in this Act. Prohibits certain decreases in the withholding of taxes. Part VII: Information Reporting Provisions - Requires the reporting of certain information with respect to real estate transactions. Requires taxpayers to report on their returns amounts of tax-exempt interest received or accrued during the taxable year. Part VIII: Report on Return-Free System - Requires the Secretary to prepare a report on a return-free system for the Federal income tax of individuals which would include: (1) the identification of classes of individuals who would be permitted to use a return-free system; (2) how such system would be phased in; (3) what additional resources the IRS would need to carryout such a system; and (4) the type of changes to the Internal Revenue Code which would inhibit or enhance the use of such system. Part IX: Certain Diesel Fuel Taxes May be Imposed on Sales to Retailers - Provides that the excise tax on diesel fuel for highway vehicles may be imposed on the sale to the retailer by the wholesaler (jobber) or by the manufacturer where the sale is direct to the retailer. Title XIV: Miscellaneous Provisions - Excludes from income amounts paid to the foster parent for caring for a qualified foster child in the foster parent's home. Provides that the tax relief provisions applicable with respect to Vietnam MIAs (and their spouses) that expired after 1982 are retroactively reinstated and made permanent. Provides that in the case of any tax-exempt organization, the term unrelated trade or business does not include any trade or business of such organization that consists of exchanging names and addresses of donors to (or members of) such organization with another such tax-exempt organization. Provides that the term unrelated trade or business of a tax-exempt organization does not include activities of such organization relating to the distribution of low cost articles incidental to the solicitation of charitable contributions. Permits a housing cooperative, where the cooperative charges such tenant-stockholder with a portion of the cooperative's interest and taxes in a manner that reasonably reflects the cost to the cooperative of the interest and taxes attributable to such tenant-stockholder's dwelling unit, to make an election whereby the share of the cooperative's interest and taxes that each tenant-stockholder is permitted to deduct would be the amounts that were so separately allocated and charged. Provides that certain royalties relating to computer software are not treated as personal holding company income, and therefore not subject to the additional tax on personal holding company income, if the recipient: (1) is actively engaged in the trade or business of producing, developing, or manufacturing computer software; (2) derives more than half of its income from software royalties; (3) incurs substantial trade or business expenses, or research and development expenses; and (4) distributes most of its passive income other than software royalties. Provides special rules with respect to taxpayers who are members of an affiliated group and receive royalties with respect to the licensing of computer software. Allows certain securities dealers to exclude from personal holding company income certain income received on securities or money market instruments held in inventory if the taxpayer: (1) derives at least 50 percent of its income from the active conduct of the business of dealing in securities; (2) distributes most of its passive income not derived from the business of dealing in securities; and (3) incurs substantial trade or business expenses relating to the business of dealing in securities. Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act with respect to adoption assistance agreements and "nonrecurring adoption expenses" relating to the adoption of special needs children.
United States · United States Congress · 5 December 1985
Federal Election Campaign Act Amendments of 1983 - Amends the Federal Election Campaign Act of 1971 to include in the definitions of "contribution" and "expenditure" donations and payments made to advocate clearly identified individuals as candidates for Federal office. Exempts from such definitions any donations or payments to political parties or political party committees designated to defray establishment, administration, or solicitation costs of the Committee. Requires that these donations be reported on a semiannual basis. Extends to the national committee of a political party certain exemptions that are given to State committees. Allows a political committee of a party to utilize the expedited procedure for advisory opinion requests during the 60-day period before an election. Requires the Federal Election Commission to establish time limits for investigations. Revises the investigatory procedures of the Commission. Repeals the requirement that the Court of Appeals sit en banc when hearing cases involving the constitutionality of the Act. Increases the contribution limitations for certain offices. Permits political committees of political parties to engage in bona fide commercial transactions in order to defray establishment, administration, and solicitation costs. Amends the Internal Revenue Code to provide the opportunity for a presidential general election candidate to request a hearing before the Commission if a demand for repayment of funds is made.
United States · United States Congress · 4 December 1985
Directs the Secretary of Defense to pay a specified sum to a named individual as full compensation for the death of her spouse due to actions of the attending medical staff at specified Air Force medical facilities.
United States · United States Congress · 20 November 1985
Telecommunications Equipment and Information Services Act of 1985 - Authorizes the Bell operating companies to provide information services (excluding electronic publishing) and to manufacture telecommunications equipment, subject to such regulations as the Federal Communications Commission may prescribe. Conditions such authority on the Commission's determination that no Bell operating company could impede competition in the information services or telecommunications equipment manufacturing businesses. Requires the Commission to include in its annual report to the Congress an assessment, providing for public comment, of the impact of this Act on employment in such businesses.
United States · United States Congress · 14 November 1985
Amends title XVIII (Medicare) of the Social Security Act to permit certain rural hospitals located within 75 miles of an urban area to request increased payments for inpatient hospital services so that the portion of such services paid for by Medicare approximates the portion covered for hospitals in the nearest urban area. Authorizes the Secretary of Health and Human Services to require hospitals making a request for increased payments to submit an audit of its costs. Entitles the hospital to an evidentiary hearing before an appeals board if the Secretary disapproves the hospital's request. Requires the Secretary to appoint an appeals board composed of specified members of the health care community. Specifies the board's powers and duties of review. Sets deadlines for the publication of, comment on, and finalization of regulations implementing this Act.
United States · United States Congress · 7 November 1985
Directs the Secretary of the Treasury to issue public debt obligations to the Federal Old-Age and Survivors Insurance Trust Fund, Federal Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund, Railroad Retirement Account, Civil Service Retirement and Disability Fund, and Department of Defense Military Retirement Fund for such terms and at such interest rates as will ensure a projected annual interest income to such funds equivalent to the income which would have been earned by those funds from public debt obligations which: (1) were redeemed on or after September 1, 1985, and on or before the date of the enactment of this Act; and (2) would not have been redeemed had the public debt limit been raised pursuant to a specified resolution of the House of Representatives. Directs the Secretary to pay to the funds the interest which would have accrued to the funds but for such non-investments, redemptions, and disinvestments.
United States · United States Congress · 6 November 1985
Anti-State-Supported Terrorism Act of 1985 - Authorizes the President, if a nation supports an act of terrorism against U.S. citizens, to: (1) suspend U.S. aid to that nation; (2) suspend trade between the United States and that nation; (3) deny trade benefits to that nation; and (4) impose other sanctions if they are imposed multilaterally.
United States · United States Congress · 6 November 1985
Social Security Trust Fund Protection Act of 1985 - Directs the Secretary of the Treasury to issue public debt obligations to the Federal Old-Age and Survivors Insurance Trust Fund, Federal Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund, Railroad Retirement Account, Civil Service Retirement and Disability Fund, and Department of Defense Military Retirement Fund for such terms and at such interest rates as will ensure a projected annual interest income to such funds equivalent to the income which would have been earned by those funds from public debt obligations which: (1) were redeemed on or after September 1, 1985, and on or before the date of the enactment of this Act; and (2) would not have been redeemed had the public debt limit been raised pursuant to a specified resolution of the House of Representatives. Directs the Secretary to pay to the funds the interest which would have accrued to the funds but for such non-investments, redemptions, and disinvestments. Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to require the Managing Trustee of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance trust fund (OASDI trust funds) to submit an advance report to the Board of Trustees of such trust funds and to each House of the Congress of the effects on the OASDI trust funds of reaching the public debt limit. Authorizes the Managing Trustee to disinvest either trust fund only to the extent necessary to prevent a shortfall in amounts available for benefit payments. Restricts the authority of the Secretary of the Treasury to transfer specified tax revenues to the OASDI trust funds by requiring the Secretary to first determine that the balance in either trust fund would otherwise be insufficient to permit full payment of benefits for any month.
United States · United States Congress · 6 November 1985
Expresses the sense of the House of Representatives that the President should: (1) forever desist from congratulating the Soviet Union on the anniversary of the Communists' seizure of power; and (2) annually express, on November 7, our solidarity with the people and countries under Soviet domination, and our hope for their imminent freedom and national integrity.
United States · United States Congress · 31 October 1985
Directs the Secretary of the Treasury to strike bronze medals commemorating the 100th Congress. Specifies the size of the medals, leaving their quantity and design to the Secretary's determination. Authorizes appropriations which are to be reimbursed out of proceeds from sales of the medals.
United States · United States Congress · 31 October 1985
Anti-Terrorism Trade Preference Act of 1985 - Directs the Secretary of State to identify and publish the name of each country that repeatedly supports acts of international terrorism. Requires the Secretary to provide the Congress with a list of such countries annually. Imposes the following sanctions on countries identified as supporting international terrorism: (1) termination, withdrawal, or suspension of any treaty that relates to most-favored-nation treatment of such country; (2) denial of most-favored-nation treatment and imposition of column 2 tariff rates on imports from such countries; (3) non-application of the Generalized System of Preferences on imports from such countries; and (4) non-application of the provisions of the Caribbean Basin Economic Recovery Act with respect to the products of such countries. Authorizes the President to waive such sanctions if it would be in the best interests of the United States. Directs the President to notify the Congress 30 days before any such waiver takes effect.
United States · United States Congress · 31 October 1985
Expresses the sense of the Congress that: (1) the Postmaster General should issue a stamp, before October 1, 1986, commemorating the 100th Congress; and (2) the U.S. Postal Service should conduct a public competition for the design of the stamp.
United States · United States Congress · 24 October 1985
National Commission on Classified Information and Security Clearance Procedures - Establishes the National Commission on Classified Information and Security Clearance Procedures to investigate: (1) standards and procedures used by Federal authorities to issue security clearances and classify information; (2) procedures used to ensure that persons with a security clearance continue to meet required standards; (3) the extent to which current standards and procedures cause the classification of more information than required by national security; and (4) the dangers to national security by the growth in the number of persons holding security clearances. Directs the Commission to recommend to each branch of the Federal Government uniform standards and procedures for issuing security clearances, classifying documents, and ensuring that a security clearance continues to meet required standards. Makes provisions of the Federal Advisory Committee Act inapplicable to the Commission. Requires the Commission to make a final report to the President, the Congress, and the Supreme Court not later than one year after appropriations are first made for the Commission. Allows the restriction of public access to Commission documents. Terminates the Commission 30 days after submission of the final report.
United States · United States Congress · 24 October 1985
Declares that the House, in an effort to bring about an end to the human rights abuses committed by the Soviet Union against the Afghanistan people, supports the President's intent to discuss such concerns with the Soviet Union and calls upon him to reiterate the U.S. desire to achieve a negotiated political settlement that is agreeable to all parties in Afghanistan (including the complete withdrawal of foreign troops, the restoration of an independent and sovereign Afghanistan, and the safe return of Afghan refugees).
United States · United States Congress · 23 October 1985
Authorizes the President to provide military assistance to the National Union for the Total Independence of Angola (UNITA). Authorizes appropriations for such purpose for FY 1986.
United States · United States Congress · 22 October 1985
Indian Economic Development Act of 1985 - Title I: Designation of Indian Enterprise Zones - Amends the Internal Revenue Code to provide for the designation of Indian enterprise zones by the Secretary of the Interior for purposes of extending the tax incentives and regulatory flexibility measures provided by this Act. Provides that tribal governments shall nominate areas for such designation. Limits the designation of Indian enterprise zones to 30 nominated areas over a 36-month period (one-third of which must be in areas with a population of less than 1,000). Limits the period during which such designation shall remain in effect. Provides that the Secretary may designate such zones only if: (1) the area is within the jurisdiction of the tribal government; (2) the boundary of the area is continuous; (3) the area is determined to be Indian lands by the Secretary; and (4) the area meets specified unemployment and poverty requirements. Requires nominating tribal governments, as a condition of the Secretary's designation, to agree in writing to follow a course of action which may include reducing tax rates, improving local services, simplifying or streamlining regulation of business, receiving commitments of private entities to assist employees and residents of the area, or actions for the partial limitation of tribal sovereign immunity for purposes of recourse in contract and other civil disputes within the zone. Terminates the authority of the Secretary to designate such Indian enterprise zones on July 1, 1986, or 36 months after the publication of regulations pertaining to such zones, whichever is later. Describes areas to which preference shall be given in deciding to designate Indian enterprise zones. Requires the Secretary to prepare and submit to the Congress every four years a report on the effects of such Indian enterprise zones' designation. Requires that any tax reduction effected by a tribal commitment under the terms of this Act shall be disregarded for purposes of determining the eligibility of a tribe for Federal assistance or benefits. Specifies that a designation of an Indian enterprise zone shall not give displaced persons from such an area any rights or benefits under the Uniform Relocation Assistance and Real Property Acquired Policies Act of 1970. Exempts Indian enterprise zones from certain requirements relating to Federal environmental policy. Title II: Federal Income Tax Incentives - Subtitle A: Credits for Employers - Allows employers located in Indian enterprise zones a nonrefundable income tax credit for increased employment expenditures and employment of the disadvantaged. Allows a three-year carryback and a 15-year carryover of such credit. Sets the amount of such credit at ten percent of the increase in payroll (taking into account $17,500 in wages per year per employee) plus a specified percentage of wages paid to certain disadvantaged workers for the first seven years of the Indian enterprise zone designation. Phases out such credit in the last three years of the enterprise zone designation. Disallows a deduction for the portion of wages taken into account for such credit. Subtitle B: Credits for Investment in Tangible Property in Indian Enterprise Zones - Allows businesses an additional investment tax credit for investment in certain tangible property located in Indian enterprise zones. Limits such credit to five percent for zone personal property, ten percent for new zone construction property, and 20 percent for zone infrastructure investment. Phases out such credit in the last three years of the enterprise zone designation. Requires the recapture of such credit upon early disposition of the property. Subtitle C: Reduction in Capital Gain Tax Rates - Eliminates the capital gains tax on property of corporations acquired after the enterprise zone designation and used in a zone business. Permits property to remain qualified for purposes of the revised capital gains treatment after a designation of an enterprise zone has terminated. Exempts gain from the sale or exchange of property used in a business in an enterprise zone from the computation of the minimum tax. Allows noncorporate taxpayers to deduct from gross income 100 percent of any net capital gain from qualified enterprise zone property. Subtitle D: Rules Relating to Industrial Development Bonds - Provides that limitations on the cost recovery deductions for property financed with tax-exempt industrial development bonds shall not apply to Indian enterprise zone property. Provides that the termination of the small issue exemption shall not apply to industrial development bonds the proceeds of which are used to finance facilities in such enterprise zones. Title III: Regulatory Flexibility - Revises the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified businesses (as defined in Title II of this Act) and tribal governments and nonprofit enterprises operating within Indian enterprise zones. Authorizes Federal agencies, upon request by a designating tribal government, to waive or modify rules and regulations which pertain to the carrying out of projects or activities within an enterprise zone. Requires agencies to approve such request if the resulting benefits of job creation, community development, or economic revitalization outweigh the public interest in continuation of the rule changed. Disallows waiver or modification if a rule would directly violate a statutory requirement (including the Davis-Bacon Act and Fair Labor Standards Act) or which would present a danger to the public health and safety. Provides that no waiver or modification of a rule shall remain in effect for a longer period than the period for which the Indian enterprise zone designation is in effect. Title IV: Establishment of Foreign - Trade Zones in Indian Enterprise Zones - Requires the Foreign Trade Zone Board to consider on a priority basis and expedite the processing of applications for the establishment of foreign-trade zones within Indian enterprise zones. Requires the Secretary of the Treasury to give priority to, and expedite applications for, the establishment of ports of entry necessary to establish such zones. States that, to the maximum extent practicable, foreign-trade zones should be established within Indian enterprise zones. Title V: Partial Waiver of Tribal Sovereign Immunity - Authorizes the Secretary to approve plans, pursuant to a tribal economic development plan, which include provisions for the partial waiver of sovereign immunity, including provisions for binding arbitration of contract and other civil disputes between tribal entities and non-tribal businesses or entities. Specifies that such a partial waiver of sovereign immunity shall not encumber nor diminish the trust assets of the tribe.
United States · United States Congress · 22 October 1985
Suspends most-favored-nation treatment for Romania for six months. Directs the President, before the end of such six months, to: (1) assess the status of civil liberties and human rights in Romania; and (2) recommend to the Congress whether to extend the suspension of nondiscriminatory treatment to Romania.
United States · United States Congress · 22 October 1985
Amends the Federal Aviation Act of 1958 to require the operator of each airport regularly serving an air carrier to use dogs in screening passengers and cargo for the purpose of detecting materials which may be used in aircraft piracy and which cannot be detected by metal detectors.
![Official portrait of Rep. Daub, Hal [R-NE-2]](https://www.congress.gov/img/member/d000065_200.jpg)