United States · United States Congress · 19 December 1985
Miscellaneous Tax Provisions Extension Act of 1985 - Amends the Internal Revenue Code to extend the income tax credit for increasing research activities from December 31, 1985, until July 31, 1986. Reduces the amount of such credit from 25 percent to 20 percent of such expenditures. Allows such credit for basic research payments to qualified organizations. Revises certain definitions and special rules related to such credit. Extends the targeted jobs income tax credit from December 31, 1985, until July 31, 1986. Reduces the amount of such credit from the sum of 50 percent of first year wages and 25 percent of second year wages to 40 percent of first year wages. Requires that an individual must be employed for at least 14 days in order to be taken into account for such credit. Extends from December 31, 1985, until August 1, 1986, the income tax exclusions for educational assistance programs and group legal plans. Extends from December 31, 1985, until July 31, 1986, provisions relating to the awarding of attorney's fees to a prevailing taxpayer in Federal tax cases. Extends the increase in the excise tax on cigarettes until August 1, 1986. Extends from December 31, 1985, until July 31, 1986, the moratorium of specified net operating loss carryover rules. Revises special rules concerning the allocation of research and experimental expenditures to income from sources within the United States. Extends such rules from August 1, 1985, until August 1, 1986. Extends until July 31, 1986, the special rules relating to the filing of tax returns and payment of taxes by spouses of individuals missing in action during the Vietnam conflict. Provides a limited tax exclusion for the value of lodging furnished by certain educational institutions to employees. Specifies that such exclusion shall be effective until August 1, 1986. Extends from December 31, 1985, until August 1, 1986, the income tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. Extends until August 1, 1986, the residential energy tax credit for solar renewable energy source expenditures. Extends the energy investment tax credit for solar and geothermal property until July 31, 1986. Extends until July 31, 1986, the reduction in the excise tax on fuel used by taxicabs.
United States · United States Congress · 18 December 1985
Miscellaneous Provisions Extension Act of 1985 - Title I: Revenue Provisions - Amends the Internal Revenue Code to extend the income tax credit for increasing research activities from December 31, 1985, until July 31, 1986. Reduces the amount of such credit from 25 percent to 20 percent of such expenditures. Allows such credit for basic research payments to qualified organizations. Revises certain definitions and special rules related to such credit. Extends the targeted jobs income tax credit from December 31, 1985, until July 31, 1986. Reduces the amount of such credit from the sum of 50 percent of first year wages and 25 percent of second year wages to 40 percent of first year wages. Requires that an individual must be employed for at least 14 days in order to be taken into account for such credit. Extends from December 31, 1985, until August 1, 1986, the income tax exclusions for educational assistance programs and group legal plans. Extends from December 31, 1985, until July 31, 1986, provisions relating to the awarding of attorney's fees to a prevailing taxpayer in Federal tax cases. Extends the increase in the excise tax on cigarettes until August 1, 1986. Extends from December 31, 1985, until July 31, 1986, the moratorium of specified net operating loss carryover rules. Revises special rules concerning the allocation of research and experimental expenditures to income from sources within the United States. Extends such rules from August 1, 1985, until August 1, 1986. Extends until July 31, 1986, the special rules relating to the filing of tax returns and payment of taxes by spouses of individuals missing in action during the Vietnam conflict. Provides a limited tax exclusion for the value of lodging furnished by certain educational institutions to employees. Specifies that such exclusion shall be effective until August 1, 1986. Extends from December 31, 1985, until August 1, 1986, the income tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. Extends until August 1, 1986, the residential energy tax credit for solar renewable energy source expenditures. Extends the energy investment tax credit for solar and geothermal property until July 31, 1986. Extends until July 31, 1986, the reduction in the excise tax for fuel used by taxicabs. Title II: Other Provisions - Extends the trade adjustment assistance program until July 31, 1986. Extends specified tariff suspensions until August 1, 1986. Extends borrowing authority under the Railroad Unemployment Insurance Act until July 31, 1986. Extends certain Medicare hospital payment rate provisions until July 31, 1986. Extends certain Medicare physician payment rate provisions until January 31, 1986. Extends certain Medicare provisions relating to prevailing charge levels for physician's services and customary charges for physician's services until December 31, 1986.
United States · United States Congress · 12 December 1985
Extends the increase in the excise tax on cigarettes from December 15, 1985, to December 19, 1985. Extends from December 14, 1985, to December 18, 1985: (1) the trade adjustment assistance program; (2) borrowing authority under the Railroad Unemployment Insurance Act; and (3) Medicare hospital and physician payment rate provisions.
United States · United States Congress · 3 December 1985
Tax Reform Act of 1985 - Enacts the Internal Revenue Code of 1985. Title I: Individual Income Tax Provisions - Subtitle A: Rate Reductions; Increase in Standard Deduction and Personal Exemptions - Sets forth income tax rates for: (1) married individuals filing joint returns and surviving spouses; (2) heads of households; (3) unmarried individuals; and (4) married individuals filing separate returns and estates and trusts. Allows for cost-of-living adjustments in such tax rates. Allows for a basic standard deduction of: (1) $4,800 for married individuals filing joint returns and surviving spouses; (2) $4,200 for heads of households; (3) $2,950 for single individuals; and (4) $2,400 for married individuals filing separate returns. Allows an additional standard deduction of $600 for the elderly or blind. Provides for cost-of-living adjustments to such amounts. Limits the amount of allowable itemized deductions to the amount in excess of $500 multiplied by the number of personal exemptions taken. Increases the personal exemption amount to $2,000. Provides for cost-of-living adjustments to such amount. Repeals the additional personal exemption for the elderly or blind. Sets forth minimum income levels for individuals required to file income tax returns. Subtitle B: Provisions Relating to Tax Credits - Increases the amount of the earned income tax credit from 11 percent to 14 percent of the first $5,000 of income. Increases the income level at which the phase-out of such credit begins. Provides for cost-of-living adjustments to such amounts. Repeals the income tax credit for contributions to candidates for public office. Subtitle C: Provisions Related to Exclusions - Limits to $5,000 the amount of employer provided dependent care assistance which may be excluded from an employee's gross income. Includes in gross income the total amount of unemployment compensation received by an individual. Excludes from gross income any amount received as a qualified scholarship grant by an individual who is a candidate for a degree at an educational institution. Provides that such exclusion shall not apply to any payments for teaching, research, or other services by the individual as a condition for receiving such a scholarship. Subtitle D: Provisions Related to Deductions - Repeals the income tax deduction for two-earner married couples. Allows miscellaneous itemized income tax deductions only to the extent that the aggregate amount of such deductions exceeds one percent of adjusted gross income. Allows individuals who do not itemize deductions an income tax deduction for charitable contributions to the extent such contributions exceed $100. Repeals the income tax deduction for adoption expenses. Subtitle E: Miscellaneous Provisions - Repeals income averaging. Allows an income tax deduction for business meals, travel, and entertainment provided such expenses have a clear business purpose. Limits to 80 percent of the amount of meal and entertainment expenses allowed as a business expense deduction. Limits such a deduction for the costs of luxury skyboxes at sporting facilities. Limits the amount of such a deduction for the costs of luxury water transportation. Revises certain rules concerning the treatment of hobby losses and the business use of a home. Allows an income tax deduction for mortgage interest and real property taxes where a parsonage allowance or a military housing allowance has been received. Sets forth reporting requirements concerning payments of refunds of State or local income taxes and payment of State or local income taxes or real or personal property taxes. Subtitle F: Effective Dates - Sets forth effective dates for provisions of this Title. Title II: Capital Income Provisions - Subtitle A: Depreciation Provisions - Repeals the accelerated cost recovery system of depreciation. Replaces such system with an incentive depreciation system for tangible property. Sets forth the method of calculating the depreciation deduction under such method. Provides for the recapture of additional depreciation amounts for certain property placed in service after December 31, 1985. Sets forth the method of calculating such additional depreciation amount. Sets forth specified transitional rules and makes specified exemptions to the incentive depreciation system for tangible property. Subtitle B: Repeal of Regular Investment Tax Credit - Repeals the regular investment tax credit as of December 31, 1985. Makes exceptions for qualified progress expenditures for periods before January 1, 1986. Makes exceptions for certain transition property. Subtitle C: Changes in Certain Rapid Amortization Provisions - Repeals the five-year amortization of trademark and trade name expenditures. Repeals the five-year amortization of pollution control facilities. Makes permanent the allowance of depreciation of expenditures to rehabilitate low-income rental housing. Increases the amount of such expenditures permitted to be taken into account. Repeals the amortization of railroad grading and tunnel bores. Extends from 1986 to 1988 the expense treatment for removal of architectural barriers to the handicapped and elderly. Subtitle D: Other Capital Related Costs - Extends until 1988 the income tax credit for increasing research activities. Reduces the amount of such credit from 25 percent to 20 percent. Revises definitions and special rules relating to such income tax credit. Reduces the percentage of costs to be taken into account for purposes of the investment tax credit for rehabilitation expenditures. Revises certain definitions and special rules relating to such tax credit. Limits the amount of funds which may be deposited in a capital construction fund established under the Merchant Marine Act, 1936. Sets forth the method of calculating such limit. Exempts from taxation any funds deposited in such an account. Specifies the tax treatment of funds withdrawn from such an account. Subtitle E: Capital Gains and Losses - Reduces the deduction for capital gains from 60 percent to 42 percent (50 percent in 1986). Repeals provisions relating to the treatment of the gain or loss incurred on the disposal of coal or domestic iron ore with a retained economic interest. Includes depletion allowances in the calculation of any recapture of amounts realized from the disposition of an interest in oil, gas, or geothermal property. Subtitle F: Provisions Relating to Oil and Gas - Disallows the expensing of intangible drilling and development costs incurred after the start of installation of production casing. Provides that such costs not expensed may be amortized over 26 months. Phases out the percentage depletion allowance for oil and gas wells and geothermal deposits. Reduces such percentage from 15 percent to: (1) 10 percent in 1986; and (2) five percent in 1987. Terminates such allowance as of 1988. Continues the percentage depletion allowance of 15 percent for stripper wells. Disallows a percentage depletion for lease bonuses. Exempts from the windfall profit tax certain crude oil exchanged for residual fuel oil. Subtitle G: Treatment of Hard Minerals - Reduces the percentage depletion allowance to five percent for certain hard minerals. Allows a higher percentage depletion for: (1) dimension or ornamental stone; and (2) minerals used in the production of animal feed or fertilizer. Allows the expensing of development and mining exploration expenditures. Provides for recapture of such amounts upon commencement of the production stage with respect to any mine. Subtitle H: Provisions Relating to Energy Credits - Extends the tax credit for renewable energy source expenditures for solar property from 1985 to 1988. Revises the method of calculating such credit for expenditures made after December 31, 1985, and before January 1, 1989. Extends the energy investment tax credit for solar energy property and geothermal property at reduced percentage rates from 1985 to 1988. Terminates the income tax credit for producing fuel from a nonconventional source. Allows such credit, on a transitional basis, for fuel which is produced from a well drilled or facility placed in service before January 1, 1986, and which is sold before 1990. Repeals the income tax credit for alcohol used as a fuel. Reduces the excise tax exemption for qualified menthanol and ethanol fuels. Subtitle I: Extension of Other Credits - Extends the targeted jobs tax credit from 1985 to 1987. Revises the method of calculating such credit. Extends the income tax credit for clinical testing expenses for certain drugs from 1987 to 1988. Title III: Corporate Provisions - Subtitle A: Corporate Rate Reductions - Sets the rate of tax for corporations at: (1) 15 percent of taxable income as does not exceed $50,000; (2) 25 percent of taxable income between $50,000 and $75,000; and (3) 36 percent of taxable income in excess of $75,000. Imposes a five percent surtax on a corporation's taxable income in excess of $100,000 up to a maximum surtax of $13,250. Increases the alternative tax rate for net capital gains of corporations to 36 percent. Sets forth transitional rules for pre-1986 net capital gains. Subtitle B: Dividend Paid Deduction; Etc. - Allows a corporation an income tax deduction for ten percent of the dividends paid by such corporation during the taxable year. Phases in such percentage over ten years. Requires each corporation to establish a qualified dividend account (QDA). Limits the amount of dividends which may be taken into account for the dividends paid deduction to the amount in the corporation's qualified dividend account. Specifies the calculation of amounts to be placed in such an account. Disallows a dividends paid deduction for any dividends paid by: (1) a regulated investment company; (2) a real estate investment trust; (3) a subchapter S corporation; (4) cooperative organizations; and (5) a Foreign Sales Corporation or a Domestic International Sales Corporation. Reduces the deduction for dividends received by a corporation. Provides for a phase-in period for such reduction. Sets forth special rules for such deduction. Repeals the partial exclusion of dividends received by individuals. Disallows a business expense deduction for expenses incurred by a corporation in connection with the redemption of its stock. Subtitle C: Limitation on Net Operating Loss Carryforwards and Excess Credit Carryforwards - Revises rules for the calculation of the limitations on net operating loss carryovers in cases of a change in ownership of more than 50 percent of value of the stock of a loss corporation. Provides that taxable income available for offset by a pre-acquisition net operating loss shall be limited to a specified rate times the value of the loss corporation's equity. Revises rules for the calculation of the limitations of certain excess tax credits in such cases. Subtitle D: Recognition of Gain and Loss on Distributions of Property in Liquidation - Revises rules concerning distributions of property in corporate liquidations to require 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 its fair market value. Provides specified exceptions to such treatment if such property is distributed to the shareholders of the liquidating corporation. Title IV: Tax Shelters - Extends present at-risk limitations on losses from businesses and income-producing activities to the activity of holding real property. Provides certain exceptions for certain third-party nonrecourse financing which is secured by real property used in the activity. Limits the deduction for nonbusiness interest on investment indebtedness. Sets forth definitions and special rules concerning such limitation. Title V: Alternative Minimum Tax - Revises the method of calculating the alternative minimum tax for corporations and individuals. Revises the types of tax preferences which may be taken into account in calculating such minimum tax. Disallows certain losses in the calculation of such minimum tax. Revises definitions and sets forth special rules with respect to such minimum tax. Allows an income tax credit for prior year minimum tax liability. Title VI: Foreign Tax Provisions - Subtitle A: Foreign Tax Credit Modifications - Subjects passive income, banking and insurance income, and shipping income to separate foreign tax credit limitations. Disallows a foreign tax credit for any withholding tax imposed on interest income received or accrued by a bank, insurance company, or other financial institution to the extent that the tax exceeds the U.S. tax which is attributable to the associated interest income. Treats a specified proportion of foreign income taxes paid by a foreign corporation as being paid by a domestic corporation if that domestic corporation owns ten percent or more of the voting stock of the foreign corporation. Subtitle B: Source Rules - Treats income derived by the sale of personal property by a U.S. resident as U.S. source income. Treats similar income derived by a nonresident as foreign source income. Sets forth rules for the determination of an individual's residence. Sets forth special rules for income derived from the sale of inventory property and gain from the sale of depreciable personal property. Exempts from the U.S. source rules interest received by certain financial institutions or by similar foreign financial institutions if such interest is effectively connected with the conduct of a trade or business of such financial institution in a foreign country. Treats as U.S. source income any transportation income attributable to transportation which begins or ends in the United States. Imposes a four percent tax on the gross transportation income of nonresident aliens and foreign corporations. Sets forth rules for the allocation and apportionment of expenses to foreign source income. Treats as U.S. source income any income derived from a space or ocean activity by a U.S. resident. Treats as non-U.S. source income any income derived from a space or ocean activity by a non-U.S. resident. Defines "space or ocean activity." Specifies exceptions for transportation and oil and gas activities. Revises present regulations providing for allocation of research and expenditures for a specified two-year period. Subtitle C: Taxation of Income Earned Through Foreign Corporations - Revises the definition of foreign personal holding company income to include: (1) dividends; (2) certain property transactions; (3) commodities transactions; and (4) foreign currency gains. Excludes from such income: (1) rents and royalties; and (2) certain income received from related persons. Revises the definition of insurance income for purposes of the tax on income earned through foreign corporations. Repeals the exclusion for reinvested shipping income. Revises the definitions of controlled foreign corporations and foreign personal holding companies to provide for a test based on value and voting power. Repeals the special treatment of corporations organized in United States possessions. Revises the treatment of foreign investment company stock by repealing the 50-percent U.S. ownership requirement. Treats a passive foreign investment company as a controlled foreign corporation except in specified circumstances. Provides that only effectively connected capital gains and losses of foreign corporations shall be taken into account for purposes of the accumulated earnings tax and personal holding company provisions. Subtitle D: Special Tax Provisions for United States Persons - Revises the method of calculating the Puerto Rico and Possessions tax credit. Specifies that nothing in the Panama Canal Treaty shall be construed as exempting any citizen or resident of the United States from tax on amounts received from the Panama Canal Commission. Reduces Foreign Sales Corporations and Domestic International Sales Corporation tax preferences by specified amounts. Limits the foreign earned income exclusion to $75,000 per year per U.S. individual. Exempts from taxable income interest received on obligations of the United States by banks organized in Guam which are otherwise not treated as being a foreign corporation. Subtitle E: Treatment of Foreign Taxpayers - Imposes a 30 percent branch-level tax on effectively connected income of foreign corporations. Sets forth special rules for the treatment of deferred payments arising out of business conducted within the United States by a nonresident alien individual or a foreign corporation. Provides that gain on the sale or exchange of property whose basis is determined in whole or in part by reference to the basis of U.S. property shall be treated as gain from the sale of U.S. property. Provides for a uniform rate of the excise tax on insurance and reinsurance polices issued by foreign insurers. Requires the withholding of the excise tax on foreign insurers. Subtitle F: Foreign Currency Transactions - Treats any foreign currency gain or loss attributable to specified types of transactions as ordinary income or loss. Provides that any amount treated as ordinary income or loss shall be treated as interest income or expense. Specifies certain exceptions. Sets forth definitions and special rules for the calculation of such a gain or loss. Subtitle G: Tax Treatment of Possessions - Part I: Treatment of Guam, American Samoa, and the Northern Mariana Islands - Authorizes Guam, American Samoa, and the Northern Mariana Islands to enact revenue laws with respect to income: (1) from sources within, or effectively connected with the conduct of a trade or business within, any such possession; or (2) received or accrued by any resident of such possession. Excludes from gross income any income from sources within Guam, American Samoa, and the Northern Mariana Islands received by an individual who is a bona fide resident of such a possession. Part II: Treatment of the Virgin Islands - Provides that residents of the United States who are not bona fide residents of the Virgin Islands and who have income derived from sources within the Virgin Islands shall pay an applicable percentage of income taxes to the Virgin Islands. Sets forth the method of calculating such applicable percentage. Authorizes the Virgin Islands to impose nondiscriminatory local income taxes. Authorizes the Secretary of the Treasury to prescribe regulations for purposes of determining tax liability incurred to the Virgin Islands. Allows a possession tax credit to Virgin Islands corporations. Part III: Cover Over of Income Taxes - Requires that the net collection of taxes imposed with respect to certain individuals shall be covered into the Treasury of the specified possession of which such individual is a bona fide resident. Applies such requirement to Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands. Part IV: Effective Dates - Sets forth the effective dates of the provisions of this subtitle. Title VII: Tax-Exempt Bonds - Revises rules relating to the exclusion of interest earned on State and local government bonds. Excludes interest earned on any State or local government bonds except: (1) nonessential function bonds which are not qualified bonds; (2) arbitrage bonds; and (3) any registration-required bond which is not in registered form. Defines a "nonessential function bond" as any bond issued as part of an issue if: (1) a specified percentage or more of the proceeds of such issue are to be used to make or finance loans to persons other than governmental units; or (2) a specified percentage or more of the gross proceeds of such issue are to be used in any trade or business carried on by any person other than a governmental unit. Defines a "qualified bond" as any nonessential function bond if such bond is: (1) an exempt facility bond; (2) a qualified mortgage bond; (3) a qualified veterans' mortgage bond; (4) a qualified small issue bond; (5) a qualified hospital bond or tax-exempt organization bond; (6) a qualified student loan bond; or (7) a qualified redevelopment bond. Defines each such qualified bond. Sets the volume cap of such qualified bonds which may be issued in a calendar year at the greater of: (1) an amount equal to $175 multiplied by the State population; or (2) $200,000,000. Defines an "arbitrage bond" as any State or local bond issued as part of an issue any portion of the proceeds of which are reasonably expected to be used directly or indirectly: (1) to acquire higher yielding investments; or (2) to replace funds which are used directly or indirectly to acquire higher yielding investments. Disallows a tax exemption for any State or local bond if such bond is federally guaranteed. Sets forth definitions and special rules. Repeals provisions relating to general stock ownership corporations. Sets forth effective dates and makes exceptions for presently binding agreements and certain projects presently under construction. Sets forth transitional rules. Title VIII: Financial Institutions - Repeals the deduction for additions to a bad debt reserve made by a large bank. Defines a bank as a "large bank" if for the year the average adjusted bases for all assets of such bank exceeded $500,000,000, or such bank was a member of a parent-subsidiary controlled group where the average adjusted bases of the assets of the group exceeded $500,000,000. Requires a large bank to take into income the balance of any bad debt reserve account over a five year period unless the bank makes an election to use the cut-off method for the bad debt reserves. Allows any domestic building and loan association, any mutual savings bank or any cooperative bank without capital stock organized and operated for mutual purposes and without profit to take a deduction for a reasonable addition to a reserve for bad debt. Provides that the amount of the deduction for additions to bad debt reserves based on a percentage of taxable income shall be limited to five percent of taxable income for such year. Repeals the percentage of eligible loans method for calculating the amount of the deduction. Provides that the reserves calculated under this provision will not be treated as tax preference items. Denies financial institutions (banks, thrift institutions, and other financial institutions) a deduction for that portion of the taxpayer's interest expense which is allocated to tax-exempt obligations acquired after December 31, 1985. Provides that the disallowance of interest expenses allocated to tax-exempt obligations must be applied before the application of the rules relating to the capitalization of preproductive expenses including interest and taxes. Repeals the special treatment of face-amount certificate companies. Repeals the special rules which permit financial institutions a ten-year carryback and a five-year carryforward of net operating losses. Repeals the special provisions relating to the acquisitions of financially-troubled thrift institutions and the exclusion from income and the basis reduction requirement of FSLIC payments to such thrift institutions. Provides that no deduction shall be disallowed relating to expenses allocable to tax-exempt income for any amount paid or incurred by a taxpayer on the ground that such amount is allocated to amounts of excluded FSLIC payments. Permits qualified individuals to elect to deduct losses on deposits in qualified financial institutions as casualty losses in the year in which the amount of the loss can be reasonably estimated. Defines "qualified individual" as any individual other than the owner of one percent or more of the value of the stock of the institution in which the loss was sustained, an officer of such institution, and certain relatives and related persons to such owners and officers. Prohibits the deduction of such loss as a bad debt deduction if this election is made by the taxpayer. Title IX: Accounting Provisions - Subtitle A: General Provisions - Permits eligible small businesses to elect to use the simplified dollar-value method of pricing inventories for purposes of the LIFO method of accounting for inventories. Requires, with the use of the simplified dollar-value LIFO method of inventory accounting, that inventories be grouped into pools in accordance with the major categories of the Producer Price Index or the CPI Detailed Report. Provides that the change in inventory costs for the pool for the taxable year is based on the change in the published index for the general category to which the pool relates. Defines "eligible small business" as a small business where the average annual gross receipts of the taxpayer for the three preceding taxable years do not exceed $5,000,000. Treats all taxpayers who are component members of a controlled group as one taxpayer for purposes of determining the gross receipts of the taxpayer. Provides that the election to use the simplified dollar-value method of inventory accounting may be made without the consent of the Secretary of the Treasury. Prohibits a corporation (other than a Subchapter S corporation) or a partnership where one of the partners is a corporation (other than a Subchapter S corporation) from computing their taxable income under the cash receipts and disbursement method of accounting. Excepts from this prohibition the following: (1) farming businesses; (2) entities where the incidence of taxation falls either at the individual level or on a qualified personal service corporation; or (3) taxpayers with average annual gross receipts of $5,000,000 or less. Provides that the prohibition on using the cash method of accounting shall apply to trusts subject to tax on unrelated trade or business income. Provides that, in the case of the provision of personal services, a taxpayer using the accrual basis of accounting is not required to accrue amounts for the performance of personal services earlier than when the amounts are billed by the taxpayer and will not be required to accrue any portion of such amounts which (on the basis of experience) will not be collected. Provides that if certain installment obligations are pledged as collateral for a loan, all or a portion of the proceeds of the loan generally will be treated as a payment received on such installment obligation thereby resulting in the recognition of gain equal to the product of the net loan proceeds and the gross profit ratio applicable to that obligation. Exempts from this rule installment obligations which have been pledged where the potential deferral of gain attributable to the portion so pledged does not exceed nine months. Provides an additional exception from this rule for installment obligations that are pledged for an indebtedness with a term not exceeding 90 days, and such indebtedness is not extended or refinanced during the 45-day period beginning on the day such indebtedness is repaid. Requires income from all long-term contracts to be reported under the percentage of completion method of accounting based on the estimated total cost of completion rather than physical completion. Requires, upon completion of the contract, the taxpayer to pay interest for any underpayment of tax with respect to a taxable year in which there was such underpayment or to receive an interest payment if there was an overpayment (i.e. the "look-back" method of computing interest payments). Allows the completed contract method of accounting to be used in the case of a contract for the construction of real property that is expected to be completed within the two-year period beginning on the commencement date of the contract if performed by a taxpayer whose average annual gross receipts over the three taxable years preceeding the taxable year in which such contract is entered into do not exceed $10,000,000. Requires any taxpayer who produces real or tangible personal property to capitalize: (1) the direct costs 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. Exempts from this requirement: (1) personal use property; (2) research and experimental expenditures; (3) development and other costs of oil and gas wells or other mineral property; and (4) property subject to the long-term method of accounting. Sets forth special rules for capitalization of expenditures for farmers and ranchers. Provides specific rules for the capitalization of interest expenses in certain instances. Repeals the reserve method for computing expense deductions arising from bad debts for all taxpayers, other than certain financial institutions. Provides that no debt will be deductible as wholly or partially worthless for tax purposes until it is charged off on the taxpayer's books. Requires the balance of any reserve for bad debts, as of the effective date of this Act, to be taken into income ratably over a five-year period. Limits the deduction for additions to a reserve account for vacation pay to the vacation pay that is paid during the taxable year or within eight and one-half months following the close of the taxable year of the employer with respect to which the vacation pay was earned by the employees. Provides that amounts of any contribution in aid of construction or any other contribution as a customer or potential customer shall be included in the income of the taxpayer. Subtitle B: Provisions Relating to Timber - Permits the amortization of certain timber preproductive expenditures ratably over a 60-month period by qualified small timber producers. Defines "qualified small timber producers" as any taxpayer engaged in the trade or business of planting, cultivating, caring for, or cutting of trees if the timberland of the taxpayer does not exceed 75,000 acres. Phases out the allowance of the 60-month amortization period for taxpayers with acreage between 50,000 and 75,000. Repeals the capital gains treatment with respect to timber royalties and cutting income except for gains reported by natural persons, an estate, or a trust all the beneficiaries of which are natural persons or estates. Requires that the gains from timber of all taxpayers where such gains are attributable to timber grown on Federal lands are to be reported as ordinary income. Provides for a three-year transition period for the tax treatment of gains from timber received by corporations. Subtitle C: Special Provisions Relating to Agriculture - Repeals the provisions allowing expenditures for fertilizer and soil conditioning to be deducted currently. Repeals the provision allowing expenditures for the clearing of land in preparation for farming to be deducted currently. Limits the soil and water conservation expenditures that may be deducted currently to amounts incurred that are consistent with a conservation plan approved by the Soil Conservation Service of the Department of Agriculture for the area in which the land is located, and, if no plan exists for the particular area, amounts expended consistent with any conservation plan of a comparable State agency. Provides that expenditures for general earth moving, draining, and/or filling of wetlands, and for preparing land for installation and/or operation of a center pivot irrigation system may not be deducted under the special expensing provisions. Requires any gain realized on the disposition of "converted wetland" or "highly erodible cropland" to be treated as ordinary income and any loss on the disposition of such property to be treated as long-term capital loss. Defines "converted wetland" and "highly erodible cropland". Permits losses of a cooperative that are attributable to one or more allocation units (including a loss that is carried over from another year) to be offset against earnings of one or more other allocation units, but only to the extent that such earnings and losses are derived from business done with or for patrons. Allows the netting of gains and losses from one or more allocation units in certain transactions in which one cooperative acquires the assets of another cooperative. Requires a cooperative that offsets earnings and losses from one or more of its allocation units to notify its patrons in writing. Sets forth certain information of the cooperative which need not be disclosed. Requires the cooperative to furnish sufficient notice information to the patrons where a determination has been made by the Secretary that the cooperative failed to give sufficient notice to the patrons. Provides that the term "patent" includes a certificate of plant variety protection issued under the Plant Variety Protection Act. Title X: Insurance Products and Companies - Part I: Policyholder Issues - Requires all amounts paid to any beneficiary of a life insurance policy at a date later than the death of the insured to be included in gross income to the extent the death benefit represents a payment made by the insurance company for the use of the beneficiary's money, i.e. the unpaid death benefit. Prohibits the deduction of a nonbusiness casualty loss covered by insurance unless the taxpayer files a timely insurance claim with respect to such loss. Provides for the exclusion from income of amounts received with respect to structured settlement agreements only to the extent that the payment on account of a claim for personal injuries are the result of physical injury or physical sickness to the claimant. Part II: Life Insurance Companies - Repeals the special life insurance company deduction which allowed life insurance companies, in computing their life insurance company taxable income, to deduct 20 percent of the income from the insurance business in arriving at their taxable income. Provides that certain tax-exempt organizations shall be exempt from tax only if no substantial part of their activities consists of providing commercial-type insurance. Excludes form the definition of "commercial-type insurance": (1) insurance provided at substantially below cost to a class of charitable recipients; (2) incidential health insurance provided by a health maintenance organization of a kind customarily provided by such organization; and (3) property or casualty insurance provided by a church or convention or association of churches for such church or convention or association of churches. Directs the Secretary to prescribe regulations which provide, for Blue Cross and Blue Shield and their affiliates, special treatment for activities with respect to high-risk individuals and small groups. Permits a life insurance company to apply its current loss from operations and its unused operation loss carryovers against the increase in its taxable income attributable to the amount distributed from its policyholders surplus account if certain conditions are met. Part III: Property and Casualty Insurance Companies - Permits a property and casualty insurance company to deduct only 80 percent of the increase in unearned premiums on outstanding business for the taxable year. Includes in income over a five-year period 20 percent of the unearned premium reserve outstanding at the end of the most recent taxable year beginning before January 1, 1986. Requires the deduction for losses incurred to be reduced by a specified portion of the insurer's tax-exempt interest and of the deductible portion of dividends received (with special rules for dividends received from affiliates). Provides that the "specified portion" of tax-exempt interest and dividends shall be ten percent for taxable years beginning after December 31, 1985, increasing to 15 percent for taxable years beginning after December 31, 1987. Provides that for property and casualty insurance companies for taxable years beginning after December 31, 1987, if there is an adjusted net gain from operation of such company for the taxable year, the amount of the taxable income for such taxable year shall not be less than the amount which is 20/36 of such net gain from operation. Provides that if there is an adjusted net loss from operation of such company for such taxable year, the amount of the net operating loss of such company for such taxable year shall not be greater than the amount which is 20/36 of such adjusted net loss from operation. Repeals the deduction for contributions to protection against loss accounts loss accounts of mutual property and casualty insurance companies. Requires the balances in any protection against loss accounts to be includible in income over the first five taxable years beginning after December 31, 1985. Sets forth required percentages of the amount in the account to be included each year. Exempts from taxation mutual and stock property and casualty insurance companies if their net written premiums or direct written premiums (whichever is greater) do not exceed $500,000. Permits mutual and stock companies with net written premiums or direct written premiums (whichever is greater) in excess of $500,000 but less than $2,000,000 to elect to be taxed only on taxable investment income. Repeals the special deduction for small companies having a gross amount of less than $1,100,000. Requires the Secretary to study the tax treatment of policyholder dividends by mutual property and casualty insurance companies. Directs that such study be submitted to specified congressional committees no later than January 1, 1987. Gives the Secretary the authority to require the furnishing of such information as may be necessary to conduct the study. Requires the Secretary to conduct a study of the treatment of loss reserves of property and casualty insurance companies, and report such findings to specified Congressional committees no later than January 1, 1987. Gives the Secretary the authority to require the furnishing of such information as may be necessary to conduct the study. Title XI: Pension and Deferred Compensation; Fringe Benefits - Subtitle A: Pensions and Deferred Compensation - Part I: Limitations on Tax-Deferred Savings - Requires an individual's deduction to an individual retirement account to be reduced by the individual's elective deferrals under a qualified cash or deferred arrangement (to the extent the deferrals are not currently included in income) and any contributions to a tax-sheltered annuity made pursuant to a salary reduction agreement, to the extent the contribution is not currently included in income. Permits the spousal individual retirement account deduction to be made either if: (1) the spouse has no compensation for the taxable year; or (2) the spouse elects to be treated for the taxable year as having no compensation. Provides that the maximum amount that an employee can elect to defer for any taxable year under all cash or deferred arrangements in which the employee participates is limited to $7,000. Provides that the $7,000 limit is determined without regard to any community property laws. Provides that the $7,000 limit is increased by certain amounts if the employee is employed by certain qualified organizations such as an educational organization, hospital, home health service agency, church, or convention or association of churches. Permits the deferral of the imposition of these limits if there is a collective bargaining agreement in effect. Reduces the dollar limitation on contributions and benefits under a defined benefit plan from $90,000 to $77,000. Reduces the dollar limitation for defined contributions plans to the lesser of $25,000 or 25 percent of the defined benefit plan dollar limit or 25 percent of the participant's compensation. Provides that if retirement benefits under a defined benefit plan begin before the age 62, the $77,000 limit on retirement benefits is reduced so that it is the actuarial equivalent of an annual benefit beginning at age 62. Provides that in no event will the dollar limit for benefits commencing at or after the age of 55 be reduced below $65,000. Provides special rules regarding the retirement benefits for airline pilots, police, and firefighters. Permits a defined benefit plan to maintain a qualified cost-of-living arrangement under which employer and employee contributions may be applied to provide cost-of-living increases to a benefit. Provides that an employee of a nongovernmental tax-exempt organization shall not be considered to be in constructive receipt of compensation deferred under an eligible deferred compensation plan maintained by a tax-exempt organization if the plan satisfies the requirements applicable to eligible deferred compensation plans of State and local governments. Provides that the maximum amount of compensation of any one individual which may be deferred during any taxable year shall not exceed $7,500. Requires deferrals under an ineligible deferred compensation plan, agreement, or arrangement maintained by a nongovernmental tax-exempt entity are to be included in an employee's gross income when the amounts are not subject to a substantial risk of forfeiture. Part II: Nondiscrimination Requirements - Alters the special nondiscrimination tests applicable to qualified cash or deferred arrangements so that the actual deferral percentage under a cash or deferred arrangement by highly compensated employees for a plan year may not exceed either; (1) 125 percent of the actual deferral percentage of all non-highly compensated employees eligible to defer under the arrangement, or (2) the lesser of 200 percent of the actual deferral percentage of all eligible nonhighly compensated employees or the actual deferral percentage for all eligible nonhighly compensated employees plus two percentage points. Permits a qualified cash or deferred arrangement to make distributions on account of the plan's termination (provided no successor plan is established) as well as on account of the employee's death, disability, separation from service, or attainment of age 59 and one-half. Makes other modifications in the withdrawal requirements. Modifies the definition of "highly compensated employee" to mean an employee who, if at any time during the year of any of the two preceding years, is a five-percent owner of the employer, received compensation from the employer in excess of $50,000, or was in the top-paid group of employees. Provides that a cash or deferred arrangement will not be treated as disqualified if the amount of any excess contributions for the plan year is distributed before the close of the following plan year. Sets forth additional nondiscrimination requirements for employer matching contributions and employee contributions for defined contribution plans. Imposes a penalty tax on an employer making excess contributions to a qualified cash or deferred arrangement which is part of a qualified employee plan. Applies nondiscrimination rules to tax-sheltered annuity programs (other than those maintained for church employees). Provides that social security benefits earned with a prior employer shall not be taken into account in determining whether a defined benefit plan is discriminatory. Provides that benefits shall be treated as accruing ratably for purposes of determining whether an employee plan is top-heavy. Allows forfeitures arising in any defined contribution plan (including a money purchase pension plan) to be either: (1) reallocated to the accounts of other participants in a nondiscriminatory fashion; and (2) used to reduce future employer contributions or administrative costs. Part III: Treatment of Distributions - Imposes a penalty tax on certain accumulations in qualified retirement plans which fail to make required distributions. Revises rules relating to the inclusion in gross income of distributions from a qualified employee plan. Allows the averaging over five years to individuals receiving lump-sum distributions after age 59 and one-half. Limits such averaging to only one such lump-sum distribution. Repeals the capital gains treatment for such distributions. Increases from ten to 15 percent the penalty tax on early withdrawals from an individual retirement account. Extends such tax to early withdrawals by individuals from any qualified employee retirement plan. Part IV: Miscellaneous Provisions - Repeals the limit carryforward applicable to profit-sharing and stock bonus plans. Extends the combined plan deduction limit to any combination of a defined benefit pension plan and a money purchase pension plan. Requires that certain social security taxes be taken into account in applying the 15-percent and 25-percent compensation deduction limits. Imposes a ten percent excise tax on excess contributions to qualified plans. Imposes a ten percent excise tax on the reversion of qualified employee plan assets to an employer. Imposes a 15 percent excise tax on excess distributions to an individual from a qualified employee plan. Reduces the $50,000 limit on loans to a participant in a qualified employee plan by an amount equal to the participant's highest outstanding loan balance during the preceding 12-month period. Specifies that deferred annuities shall be made available only to natural persons. Requires the Secretary of the Treasury to conduct a study and report to the Congress concerning the effect of the existing coverage requirements for qualified employee plans and changes which should be made in such requirements. Provides that any amendments made necessary by provisions of this Act shall not be required to be made before the first plan year beginning on or after January 1, 1988. Imposes a penalty tax on underpayments attributable to overstatements of pension liabilities. Subtitle B: Fringe Benefits - Part I: Nondiscrimination Rules for Certain Statutory Fringe Benefit Plans - Requires a highly compensated employee who is a participant in a discriminatory statutory fringe benefit plan to include in income an amount equal to the employee's employer-provided benefit under the plan. Provides that the gross income of any employee, whether or not highly compensated, includes such employee's employer-provided benefit under a statutory benefit plan, unless: (1) the plan is in writing; (2) the employees' rights under the plan are legally enforceable; and (3) the employer established the plan with the intention of maintaining it indefinitely. Establishes a uniform nondiscriminatory eligibility requirement for all statutory benefit plans by requiring that: (1) at least 90 percent of all employees are eligible to participate in the plan; and (2) the plan contains no provisions relating to eligibility to participate that discriminates in favor of highly compensated employees. Sets forth additional rules relating to statutory defined benefit plans. Requires employers to file certain informational returns if benefits are provided under a cafeteria plan or statutory fringe benefit plan which were included in the income of a highly compensated or key employee. Part II: Other Provisions - Extends for two years, from December 31, 1985, to December 31, 1987, the exclusion for educational assistance and group legal services paid for by an employer that are furnished to employees. Permits a full-time life insurance salesperson to be treated as an employee for purposes of the cafeteria plan provisions to the extent the salesperson is otherwise permitted to exclude from income the benefit elected. Subtitle C: Changes Relating to Employee Stock Ownership Plans - Repeals the employee stock ownership tax credit. Terminates after December 31, 1988, the following provisions: (1) the exclusion of interest on loans used to acquire employer securities; (2) the dividends paid deduction; (3) the nonrecognition of gain on sales of stock to employee stock ownership plans, and (4) liability for payment in case of transfer of employer securities to an employee stock ownership plan or a worker-owned cooperative. Provides the following additional requirements for employee stock ownership plans: (1) requires more rapid (10-year graded) vesting: (2) modify the employee stock ownership plan nondiscrimination rules to limit the amount of a participant's compensation that may be taken into account and the annual amount of employer contributions that may be allocated to employees who are officers, shareholders, or highly compensated; (3) expand the pass-through voting requirements applicable to employer securities held by an employee stock ownership plan; (4) permit an eligibile plan participant to direct the employee stock ownership plan trustee to diversify a portion of the participant's employee stock ownership account balance; and (5) modify the distribution and put option requirements. Amends the tax credit employee stock ownership plan distribution provisions to permit certain distributions upon plan termination. Provides a special rule for eligible worker-owned cooperatives to ensure that such organizations can comply with the requirements of tax deferrment on gain derived from sales of stock to an employee stock ownership plan or for payment of estate tax liability by an employee stock ownership plan. Title XII: Unearned Income of Certain Dependent Children; Trusts and Estates - Subtitle A: Unearned Income of Certain Minor Children - Provides that to the extent that unearned income derived from property transferred from parents (parental-source unearned income) exceeds the amount of the child's personal exemption, such income is taxed to the child at the parents' marginal tax rate. Requires earned income and nonparental-source unearned income (i.e., income derived from property that is a qualified segregated asset) to be taxed to the child at the child's marginal tax rate. Subtitle B: Taxation of Estates and Trusts and Their Beneficiaries - Provides that all trusts created by a grantor, with the exception of qualified beneficiary trusts or qualified children's trusts, that are not treated as grantor trusts must be taxed at the marginal tax rate of the grantor. Permits the grantor to allocate any of the grantor's unused tax rate bracket amounts for any year to the trusts created by him in any manner the grantor elects. Provides that the income of a qualified beneficiary trust is taxed at the top marginal tax rates of the beneficiary. Definies "qualified beneficiary trust." Provides that where all the beneficiaries of a trust are children of the grantor (called a "qualified children's trust"), any beneficiary may allocate any of his or her unused tax bracket to the trust for any year prior to the time that beneficiary reaches majority, thereby taxing the trust income at this top marginal tax rate. Entitles all trusts, in lieu of the personal exemption, a deduction of $100. Entitles an estate a deduction, in lieu of the personal exemption, of $600. Permits any unused losses and deductions in the last year of the trust or estate to be claimed by the beneficiaries succeeding to the property of the estate or trust in accordance with regulations prescribed by the Secretary. Provides that no amounts shall be included in the gross income of any beneficiary by reason of income of any trust or estate, or by reason of any distribution from a trust or estate, with certain exceptions. Provides that the grantor is treated as the owner of the trust and therefore is taxed directly on the income of the trust in the following circumstances: (1) where the grantor possesses certain prohibited administrative powers with respect to the trust; (2) where the grantor or the grantor's spouse retains the power to revoke the trust; or (3) where the grantor or grantor's spouse has the power to control the income of the trust in certain respects. Provides that a person other than the grantor is treated as the owner of a trust where that person has a power to revoke the trust or retains one of the three powers listed in the preceeding sentence. Permits the executor to elect to extend the taxable year of the decedent until the end of the decedent's normal taxable year, instead of having the decedent's final taxable year terminate on the date of death. Provides that income of a trust required to be paid by the trust pursuant to a divorce decree or separate maintenance agreement shall be allowed as a deduction to the trust and such amount shall be included in the gross income of the wife. Exempts from such inclusion and deduction amounts payable for the support of minor children. Requires gain to be recognized by the transferor where property is transferred to a trust in exchange for an interest in other trust property and the trust would be considered an investment company if it were a corporation. Allows one $20,000 exemption for purposes of the minimum tax with respect to: (1) the estate of a decedent; and (2) trusts with respect to which a decedent is the grantor. Provides for the allocation of such amount among such trusts. Provides that distributions from foreign trusts are subject to tax at the top marginal rate applicable to individuals (38 percent), unless the fiduciary of the trust elects to be subject to current taxation of the United States by being treated as a domestic trust. Subtitle C: Generation Skipping Transfers - Amends the generation-skipping transfer tax, which attempts to determine the additional gift or estate tax that would have been paid if property has been transferred directly from one generation to another, to impose a simplified tax determined at the maximum gift and estate tax rate (currently the tax rate is 55 percent). Expands the generation-skipping transfer tax to include direct generation-skipping transfers (e.g., a direct transfer from a grandparent to a grandchild) as well as transfers in which benefits are shared by beneficiaries in more than one younger generation. Provides for an exemption of transfers up to S1,000,000 per grantor from the tax. Provides additional exemptions from the tax for certain transfers that are not subject to gift tax and for direct transfers to grandchildren of the transferor if the aggregate amount of such transfers does not exceed $2,000,000 per grandchild. Defines various terms relating to generation-skipping transfers. Sets forth the methods for determining the taxable amount for various generation-skipping transactions. Sets forth various special rules and definitions. Directs the Secretary to prescribe by regulation the person who is required to make the return with respect to the generation-skipping tax and the time the return is to be filed. Title XIII: Compliance and Tax Administration - Part I: Revision of Certain Penalties, Etc. - Increases the maximum penalty from $50,000 to $100,000 for: (1) failure to file certain information returns with the IRS; (2) failure to supply a copy of that information return to the taxpayer; and (3) failure to supply taxpayer information numbers. Imposes a penalty for failure to include correct information either on an information return filed with the IRS or on the copy of that information return supplied to the taxpayer. Establishes the amount of the penalty at five dollars for each return or statement, with a maximum penalty not to exceed $20,000. Allows a waiver of these penalties if the failure is due to reasonable cause and not to willful neglect. Sets forth certain special rules with respect to the application of these penalties. Increases the penalty for failure to pay tax in specified situations from one-half of one percent per month to one percent per month. Repeals the provision allowing the offset of the failure to file a return penalty against the failure to pay tax penalty. Provides that the penalty for negligence shall apply to all taxes imposed under the Internal Revenue Code. Includes within the scope of the definition of negligence both any failure to make a reasonable attempt to comply with the provisions of the tax law as well as careless, reckless, or intentional disregard of the rules or regulations. Expands the scope of the special negligence penalty for failure to include in income interest and dividends shown on an information return to include failure to show properly on the taxpayer's return any amount that is shown on any information return. Part II: Estimated Tax Payments by Individuals - Increases from 80 percent to 90 percent the proportion of the current year's tax liability that taxpayers must make as estimated tax payments in order to avoid the estimated tax penalty. Part III: Provisions Relating to Attorneys' Fees and Exhaustion of Administrative Remedies - Extends for four years, from December 31, 1985, to December 31, 1989, the provisions providing for awards of reasonable litigation costs, including attorneys' fees and court costs, to a taxpayer who prevails over the Federal government in a tax case in any Federal court. Gives the Court in tax cases the discretion to assess all or a portion of any award against IRS employees if the Court determines that the proceeding resulted from any arbitrary or capricious act of the employee. Requires the Secretary to submit a report within 90 days after the close of each calendar year beginning after 1985 and before 1990 to the House Committee on Ways and Means and the Senate Committee on Finance that includes: (1) the number of awards made during such calendar year; (2) the number of proceedings in which claims for such awards were made by substantially prevailing parties during such calendar year; and (3) the aggregate amount payable by the United States pursuant to the awards so made during such calendar year. Authorizes the Tax Court to impose a $120 penalty on the taxpayer if the Tax Court determines that the taxpayer did not use reasonable efforts in good faith in attempting to resolve the tax case administratively with the Secretary. Requires that a joint annual report from the Secretary and the Tax Court concerning closing cases more efficiently in Tax Court inventory be submitted to the House Committee on Ways and Means and the Senate Committee on Finance. Part IV: Tax Administration Provisions - Authorizes the Secretary and the taxpayer to mutually consent to the recission of any notice of deficiency mailed to the taxpayer. Provides that where an IRS official fails either to perform a ministerial act in a timely manner or makes an error in performing a ministerial act, the IRS has the authority to abate the interest attributable to such delay. Suspends the compounding of interest on previously accrued interest, starting 30 days after a taxpayer has filed a waiver of restrictions on assessment of the underlying taxes and ending when a notice and demand is issued to the taxpayer. Prohibits the IRS from levying on any amount payable to an individual as a service-connected disability benefit. Permits the Secretary to sell up to $100,000 of personal property used in violation of the tax laws. Permits claimants to require a judicial forfeiture action by posting a $2,500 bond. Treats the use of an automobile by a special agent of the Internal Revenue Service in the same manner as use of an automobile by an officer of any other law enforcement agency for purposes of the substantiation rules for expenses or the income and wage inclusion rules. Part V: Interest Provisions - Provides that the interest rate which the Secretary must pay to the taxpayer on the overpayment of taxes must be the three-month Treasury bill rate plus two percentage points. Requires that the interest rate that taxpayers pay to the Secretary on underpayment of taxes shall be the three-month Treasury bill rate plus three percentage points. Requires the Secretary to determine the short-term Federal rate each quarter. Provides that interest is imposed on underpayment of the accumulated earnings tax from the due date (without regard to extensions) of the income tax return for the year the tax is initially imposed. Part VI: Modification of Withholding Allowances - Directs the Secretary to modify the withholding allowance schedules to reflect the new rate schedules promulgated by this Act. Repeals the authority of the IRS to issue regulations permitting employees to request decreases in withholding. Part VII: Information Reporting Provisions - Requires the reporting of real estate transactions to the IRS by the settlement attorney or other stakeholder to the transaction. Requires the head of every Federal executive agency to file an information return indicating the name, address, and taxpayer identification number of each person with which the agency enters into a contract. Requires any person required to file a return for the taxable year to include on such return the amount of interest received or accrued during the taxable year that is exempt from tax. 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 MIA's (and their spouses) that expired after 1982 are retroactively reinstated and made permanent. Imposes an excise tax of ten percent on amounts paid for U.S. television and radio broadcast rights for Olympic events. Imposes the tax on the business or government receiving the payment for the broadcast rights. Establishes a new trust fund in the Treasury, designated the "United States Olympic Trust Fund," to receive amounts equivalent to the revenues from the new ten percent excise tax. Permits the payment of amounts from the trust fund to the U.S. Olympic Committee. 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, or of renting donor names and addresses to 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 form the business of dealing in securities; and (3) incurs substantial trade or business expenses relating to the business of dealing in securities. Amends the Social Security Act to provide 50 percent Federal matching funds to States to pay for "nonrecurring adoption expenses" relating to the adoption of a special needs child. Title XV: Technical Corrections - Subtitle A: Related to the Tax Reform Act of 1984 - Chapter 1: Amendments Related to Title I of the Act - Permits a taxpayer to elect to have the amendment of the Tax Reform Act of 1984 that defers the finance lease rules apply to any agreement entered into before March 7, 1984. Restores the year 1985 to the table of years for which the three percent telephone excise tax applies. Clarifies the rules relating to the electronic funds transfer of alcohol taxes to provide that all corporations that are members of a controlled group of corporations are treated as one taxpayer for purposes of the electronic funds transfer. Makes certain modifications of the Code to clarify the rules relating to the tax-exempt entity leasing provisions. Repeals the overlapping regulatory authority relating to high-technology equipment. Provides that any portion of a property that is owned or leased by a partnership that is treated as tax-exempt use property is ineligible for the investment tax credit. Clarifies the treatment of certain aircraft leased to foreign persons for purposes of the recapture of investment tax credit rules. Provides that thrift institutions cannot avoid the restriction on property leased to thrift institutions by the use of a partnership. Provides that the tax credit for rehabilitation expenditures is allowable on buildings leased to thrift institutions in accordance with the rules applicable to buildings leased to tax-exempt entities. Provides that the determination of whether a tax-exempt partner's share of partnership items is treated as derived from an unrelated trade or business is to be made without regard to the debt-financed income rules. Makes certain modifications in the tax treatment of certain bonds and other debt instruments. Clarifies the provisions limiting the dividends received deduction for dividends received by a corporate shareholder with respect to debt-financed portfolio stock. Disallows the dividend received deduction where the holding period requirement is not met, without regard to whether the stock has been disposed of. Applies this rule to obligations acquired after the date of enactment of this Act. Provides that if a taxpayer holds stock of a regulated investment company for six months or less, any loss on the sale or exchange of that stock is disallowed to the extent the taxpayer received exempt-interest dividends with respect to that stock. Provides an exception to this rule where the dispositions are pursuant to a periodic liquidation plan. Gives the Secretary the authority to shorten the six-month period requirement. Provides that, except to the extent provided by the Secretary, no dividends paid deduction will be allowed for purposes of the accumulated earnings tax, in the case of stock redemption by a mere holding or investment company which is not a regulated investment company. Makes certain modifications in the tax rules related to affiliated groups of corporations. Makes certain changes in the definition of a corporation's "earnings and profits." Modifies the rules relating to corporate reorganizations to provide that the transferor corporation does not recognize gain or loss on the transfer to the acquiring corporation pursuant to a plan of reorganization, without regard to whether properties received are distributed pursuant to the plan of reorganization. Makes the collapsible corporation provisions with respect to the recognition of ordinary income or loss applicable whether or not the stock has been held for six months. Makes certain changes in the rules relating to the taxation of "parachute payments" made by corporations to disqualified individuals. Modifies the partnership tax provisions with respect to: (1) retroactive allocation of cash basis items; (2) disguised sales transactions; (3) transfer partnership interests by corporations; and (4) distributions which are treated as exchanges. Modifies the like-kind exchange rules allowing for the non-recognition of gain to provide that like-kind property includes property identified as the property to be received by the taxpayer on or before (rather than only before) the date which is 45 days after the date on which the taxpayer relinquishes property. Provides that the rules regarding the treatment of two or more trusts as one trust will not apply to any trust which was irrevocable on March 1, 1984, except to the extent corpus is transferred to the trust after that date. Makes certain changes in the tax accounting rules relating to: (1) premature accrual of certain payments to insurance companies for indemnification for certain tort claims; (2) tax shelters; (3) mine reclamation and similar costs; (4) nuclear power plant decomissioning expenses; and (5) deferred payment for services. Makes modifications in the tax straddle provisions relating to: (1) subchapter S corporations; (2) amounts received for loaning securities; (3) straddles consisting of stock; and (4) losses from pre-1981 straddles. Permits the taxpayer to elect to recover the cost of low-income housing using a straight-line method of depreciation over a 15-year period (but not 18 years). Requires the mid-month convention for depreciation to be applied whenever a depreciation computation is made with respect to certain classes of real property. Provides that the cost of certain real property (which does not include low-income housing) financed by the proceeds from industrial development property cannot be recovered more rapidly than on a straight-line basis of depreciation over a fixed period of years, using a mid-month convention. Modifies the rules relating to the depreciation of property by certain transferees of recovery property. Prohibits the use of accelerated methods of depreciation with respect to films, video tapes, and sound recordings. Provides that investment credit property the reconstruction of which is completed by the taxpayer qualifies as new investment credit property. Provides that a domestic corporation which earns less than 20 percent of its gross income from U.S. sources will be treated as a U.S.-owned foreign corporation and thus will be subject to the rules maintaining the source of U.S. source income to foreign income. Requires that the source maintenance rules apply notwithstanding any contrary U.S. treaty obligations, even those entered into after the Act's date of enactment, unless the treaty clearly expresses an intent to override the rules by specific reference. Modifies the rules with respect to maintaining the character of interest income for foreign personal holding companies to insure that there will be no possibility of converting interest income into noninterest income subject to the overall foreign tax credit. Modifies the rules relating to the factoring of income with respect to certain controlled foreign corporations. Makes certain modifications in the rules concerning the repeal of the 30 percent withholding tax requirement on the gross amount of U.S. source investment income payments to foreign persons. Clarifies the rules concerning the taxation of original issue discount obligations of foreign investors. Modifies the rules respecting the disposition of U.S. real property interests by foreigners. Provides that the transfer of stock by a domestic corporation to foreign persons pursuant to a distribution of stock and securities of a controlled corporation will give rise to the recognition of gain on such a transaction, to the extent provided by regulations issued by the Secretary. Modifies the rules concerning the taxation of U.S. shareholders in foreign personal holding companies. Clarifies the treatment of certain indirect transfers of stock in a U.S. corporation for newly issued stock (or treasury stock) of a foreign corporation. Provides that the regulations that the Secretary is to prescribe pertaining to "stapled stock" entities may include regulations providing that any tax imposed on a foreign corporation that is treated as a U.S. corporation may, if that corporation does not pay the tax, be collected from the U.S. corporation to which the foreign stock is stapled or from the shareholders of the foreign corporation. Provides that the "stapled stock" rules will not apply if it is established that both the stapled foreign corporation and the U.S. corporation to which it is stapled are foreign owned. Clarifies the definition of foreign base company service income of controlled foreign corporations with respect to insurance or reinsurance services. Modifies the definition of resident alien to provide that days spent working in the United States as a teacher or trainee during four calendar years in any seven-year period do not count as days of U.S. presence for purposes of the substantial presence test for a resident alien status. Makes miscellaneous changes with respect to the compliance provisions of the Code. Provides that, for purposes of the tax benefit rule, an amount is excludible from gross income only to the extent that it does not reduce a taxpayer's income tax. Modifies provisions with respect to the tax treatment of loans with below-market interest rates by treating certain term loans as demand loans for the purpose of determining the timing of deemed interest and compensation payments. Exempts certain loans to Israel from the below-market interest rate rules. Directs the Secretary to issue regulations applying the "matching principles" with respect to deductions generally applicable to related party transactions in cases in which the person to whom the payment is to be made is not a U.S. person. Makes several adjustments in the dividends received deduction for dividends allocable to post-1984 Federal Home Loan Mortgage Corporation income. Modifies the rules relating to the maximum amount of investment tax credit and depreciation that a taxpayer may claim with respect to a passenger automobile or listed property which is required to be used in a trade or business a certain percent of the time. Chapter 2: Amendments Related to Title II of the Act - Makes certain technical corrections with respect to the taxation of life insurance companies. Chapter 3: Amendments Related to Title III of the Act - Clarifies the rule disqualifying certain foundations from the rate reduction of the excise tax imposed on the net investment income of a private foundation to provide that the rate reduction is not available if the foundation was liable for the excise tax with respect to any year in certain base period years. Chapter 4: Amendments Related to Title IV of the Act - Makes clerical and conforming amendments to the tax simplification provisions of the 1984 Act, including such items as individual estimated tax, domestic relations, at-risk rules, administrative provisions, distilled spirits, the Tax Court, and income tax credits. Chapter 5: Amendments Related to Title V of the Act - Makes technical corrections with respect to the employee benefit provisions of the 1984 Act with respect to: (1) the welfare benefit plan provisions; (2) qualified pension, profit-sharing, and stock bonus plans; (3) fringe benefit provisions; (4) employee stock ownership plans; and (5) certain miscellaneous provisions. Chapter 6: Amendments Related to Title VI of the Act - Makes certain technical corrections with respect to the tax-exempt bond provisions of the Code, such as mortgage subsidy bonds and mortgage credit certificates and private activity bonds. Chapter 7: Miscellaneous Provisions - Clarifies the tax treatment of stock transfers between 50-percent owned corporations. Makes miscellaneous technical corrections with respect to certain pension provisions. Makes technical corrections with respect to the tax provisions relating to foreign sales corporations and domestic international sales corporations. Allows a full 15-cents-a-gallon refund of excise tax on diesel fuel used in a school bus while engaged in the transportation of students and school employees. Provides that the additional six percent excise tax on certain piggyback trailers will not apply to a piggyback trailer after six years have elapsed from the date of the first retail sale of the trailer. Provides that certain helicopter uses are exempt from aviation excise taxes. Modifies the acquisition of indebtedness rules with respect to certain exempt organizations. Clarifies the provision permitting the nonrecognition of gain on the rollover of gain on the sale of a personal residence in the case of military personnel stationed outside the United States. Provides that the expanded prohibition on current deduction of costs and other losses incurred in connection with the demolition of buildings applies only to demolitions commencing after July 18, 1984, in the case of buildings other than certified historic structures. Modifies certain recordkeeping requirements of regulated investment companies. Allows individual taxpayers until April 15, 1985, and corporations until March 15, 1985, (the filing date for calendar year returns) to pay their full 1984 income tax liabilities without incurring any additions to tax on account of underpayments of estimated tax to the extent that the underpayments are attributable to changes in the law made by the Tax Reform Act of 1984. Makes certain modifications in the requirements with respect to the tax credit for the qualified clinical testing of certain drugs that are necessary to obtain the approval of the Food and Drug Administration. Clarifies the provisions as to the allowability of the tax credit for production of fuels from nonconventional sources. Repeals the requirement that the Joint Committee on Taxation submit an annual report to the Congress on proposed IRS tax refunds and credits submitted to the Committee for its review. Provides that any organization that is exempt from tax and that is engaged primarily in providing electric service on a mutual or cooperative basis is eligible to maintain a qualified cash or deferred arrangement for employees. Clarifies the definition of "newly discovered oil" for purposes of the imposition of the windfall profit tax. Provides that medicinal alcohol produced in Puerto Rico and the Virgin Islands is eligible for refunds of the tax on distilled spirits paid when the alcohol is brought into the United States. Provides that these amendments made to the Tax Reform Act of 1984, unless otherwise provided, will take effect as if included in the original legislation. Chapter 8: Effective Date - Sets forth effective date provisions. Subtitle B: Related to Other Programs Affected by the Deficit Reduction Act of 1984 - Chapter 1: Amendments Related to Social Security Act Programs - Amends the Internal Revenue Code to disqualify certain church employees from a religion based exception to the tax on self-employment income. Amends the Code and title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to exclude certain church employee income from the computation of other net self-employment earnings, but lowers the sum required before church employee income qualifies as self-employment income. Authorizes a church to revoke its election to have services performed in its employ excluded from employment for taxation purposes. Amends title XVIII (Medicare) of the Act to make the late enrollment penalty and special enrollment period accommodations of part B (Supplemental Medical Insurance) specifically applicable to individuals who have attained age 65 and were not enrolled or reenrolled because they were covered by work-related group health insurance, or their spouse's work-related group health insurance. Makes technical corrections to other portions of the Social Security Act. Chapter 2: Amendments Related to Unemployment Compensation Program - Makes certain technical amendments to the Federal Unemployment Tax Act. Chapter 3: Amendments Related to Trade and Tariff Programs - Amends the Tariff Schedules of the United States to make technical and conforming amendments. Imposes a duty on silicon electrical steel. Amends the Tariff Act of 1930 to provide that the administering authority with respect to a countervailing duty investigation, may not accept any agreement from a foreign country to eliminate or offset a subsidy or to cease exports of subsidized merchandise unless such agreement ensures that the quantity of merchandise covered in the agreement does not exceed the quantity of such merchandise exported to the United States during the most recent representative period as determined by the administering authority. Sets forth specified provisions relating to the marking of imported articles. Provides that the performing of incidental operations (including testing, cleaning, repacking, and inspecting) on imported merchandise or merchandise of the same kind and quality does not amount to manufacture or production for drawback (refund) purposes. Amends the Trade Act of 1974 to make technical and conforming amendments. Amends the Trade and Tariff Act of 1984 to make technical and conforming amendments. Sets forth specified provisions relating to certain articles given duty-free treatment. Amends the Caribbean Basin Economic Recovery Act to make technical and conforming amendments. Subtitle C: Technical Corrections Related to the Retirement Equity Act of 1984 - Amends the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act of 1974 (ERISA) to make technical corrections and other revisions related to the Retirement Equity Act of 1984 (REA). Sets forth amendments related to REA modifications of minimum participation and vesting standards for employee benefit plans. Requires class-year plans, in general, to provide that a participant's rights to benefits derived from employer contributions for any plan year are nonforfeitable not later than when such participant has performed services for the employer as of the close of each of five plan years (whether or not consecutive after the plan year for which the contributions were made), but allows for such plans to provide for forfeiture of such rights if the participant has not performed such services as of the close of each of any five consecutive plan years after such plan year (i.e. a five-year break in service). Requires, for purposes of determining whether any distribution which becomes payable to the recipient on account of the employee's separation from service is a lump sum distribution, that the balance to the credit of the employee be determined without regard to any increase in vesting which may occur if the employee is reemployed by the employer. Provides for recapture of such reduction in tax, in certain cases. Provides, under repayment requirements relating to withdrawals of mandatory contributions, that a defined contribution plan may provide that such a repayment must be made before a participant has a period of five consecutive one-year breaks in service (currently any one-year break in service). Reduces from 25 years to 21 years the age which plan participants may be required to attain for purposes of simplified employment pensions. Sets forth amendments related to REA requirements of joint and survivor annuity and preretirement survivor annuity. Provides that qualified preretirement survivor annuity rules apply in the case of death before the annuity starting date. Provides that qualified joint and survivor annuity rules apply in the case of death on or after the annuity starting date. Provides that the transferee plan rule applies only with respect to: (1) transfers made after December 31, 1984; and (2) the transferred assets if the plan separately accounts for assets and any income therefrom. Requires spousal consent for: (1) using plan assets as security for loans; and (2) changes in designations. Provides that, in the case of a participant hired after age 35, the period for giving notice to the participant of the right to waive a qualified preretirement survivor annuity is a reasonable period after the date of hire. Makes certain clerical amendments. Sets forth amendments related to special rules for assignments in divorce, etc., proceedings (which REA added to IRC and ERISA). Provides that such special rules for determining the taxability of benefits subject to a qualified domestic relations order apply only to distributions made to an alternate payee who is the spouse or the former spouse of the participant. Specifies that the 18-month period during which benefits may be deferred begins with the date on which the first payment would be required to be made under the domestic relations order if there were no deferral. Directs the Secretary of the Treasury to prescribe regulations to coordinate specified requirements (and regulations issued by the Secretary of Labor thereunder) affecting qualified domestic relations orders with the overall qualification requirements. Waives certain distribution requirements which prohibit payment of benefits before termination of employment. Sets forth amendments related to the requirement under IRC, as amended by REA, that a written explanation be given to recipients of distributions eligible for rollover. Defines "eligible rollover distribution" for purposes of such requirement. Sets forth amendments related to provisions, under ERISA as amended by REA, for the treatment of certain plan amendments as reducing benefits. Sets forth amendments related to the REA transitional rule for requirement of joint and survivor annuity and preretirement survivor annuity. Sets forth amendments related to REA provisions for treatment of certain participants who perform services on or after January 1, 1976.
United States · United States Congress · 12 November 1985
Extends the increase in the excise tax on cigarettes from November 15, 1985, to December 15, 1985. Extends from November 14, 1985, to December 14, 1985: (1) the trade adjustment assistance program; (2) borrowing authority under the Railroad Unemployment Insurance Act; and (3) Medicare hospital and physician payments.
United States · United States Congress · 12 November 1985
Increases the public debt limit until December 13, 1985, by an amount determined by the Secretary of the Treasury to be necessary to permit the United States to meet its obligations, but not in excess of $1,903,800,000,000. Directs the Secretary to restore to the Social Security Trust Funds and any other Government trust funds any securities disinvested since September 30, 1985.
United States · United States Congress · 1 November 1985
Directs that the public debt limit be increased, until November 6, 1985, by the amount necessary to prevent the disinvestment of the social security trust funds and other trust funds.
United States · United States Congress · 9 October 1985
Amends the Surface Transportation Assistance Act of 1982 to revise the standard used to determine the Federal share of the cost to complete a route withdrawn (upon State request) from the Interstate System. States that such Federal share shall be determined by the Secretary of Transportation based on construction cost increases for the period beginning January 1, 1986, and ending on the approval date of each substitute project.
United States · United States Congress · 1 October 1985
Social Security Budget and Administrative Reorganization Act of 1985 - Title I: Establishment of the Social Security Administration - Amends title VII (Administration) of the Social Security Act to establish as an independent executive agency a Social Security Administration, headed by a Social Security Board. Provides that it shall be the duty of the Administration to administer the programs established by titles II (Old Age, Survivors and Disability Insurance) and XVI (Supplemental Security Income) of the Social Security Act. Requires the Board to study and make recommendations as to the most effective methods of providing economic security through social insurance and as to legislation and matters of administrative policy. Establishes in the Administration: (1) a Commissioner of Social Security; (2) a Deputy Commissioner of Social Security; (3) a General Counsel; (4) an Inspector General; and (5) an Office of the Beneficiary Ombudsman, to be headed by a Beneficiary Ombudsman who shall represent the interests of beneficiaries under the Old Age, Survivors and Disability Insurance program and the Supplemental Security Income Program within the Administration. Requires the annual report of the Board to include a description of the activities of the Beneficiary Ombudsman. Requires the Board to make annual budgetary recommendations relating to the Administration. Requires that appropriations requests by the Administration for staffing and personnel be based upon a comprehensive workforce plan as established by the Board. Provides for the apportionment of administrative costs. Requires the annual report of the Board to include a section reflecting the use of budget authority provided to the Administration. Requires that authority for automated data processing procurement and facilities construction be provided in the form of contract authority covering the total cost of such acquisitions. Makes amounts needed for the liquidation of contract authority so provided available from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the extent that such amounts are not needed to meet current obligations for benefit payments. Requires the Board and the Director of the Office of Personnel Management to implement demonstration projects relating to personnel matters. Directs the Board and the Administrator of General Services to implement such projects relating to delegations from the Administrator. Specifies the authorities which are to be delegated to the Board from the Administrator and the Director. Requires the Comptroller General to report to specified congressional committees concerning such projects, including an evaluation of the Board's readiness to assume full and permanent authority. Requires the Board to cause a seal of office to be made and judicial notice taken thereof. Provides for the transfer to the Administration of all functions carried out by the Secretary of Health and Human Services with respect to the programs and activities to be carried out by the Administration under this Act. Abolishes the position of Commissioner of Social Security in the Department of Health and Human Services. Sets forth effective date and transitional rule provisions. Title II: Conforming Amendments and Rules of Construction - Requires the Secretary and the Board to report to Congress within 120 days after the beginning of each regular session on their administration under this Act. Requires the Secretary to study and make recommendations on the most effective methods of providing economic security and on the administrative policy for the programs which he or she administers. Directs the Board to appoint, quadrennially, an Advisory Council on the Old-Age, Survivors, and Disability Insurance program and an Advisory Council on Health and Supplementary Medical Insurance to review the relation of the trust funds supporting the Old-Age, Survivors and Disability Insurance program and the Medicare program and the long-term commitments of those programs. Requires each council to submit a report to the Board for transmittal to the Congress and the Board of Trustees of each Trust Fund. Sets forth the effective dates of this title. Title III: Budgetary Treatment of Old-Age, Survivors, and Disability Insurance Program - Provides for off-budget treatment of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund beginning with FY 1987.
United States · United States Congress · 1 October 1985
Expresses the opinion of the House of Representatives that a certain Senate bill (S. 1712) which provides for an extension of certain excise tax rates contravenes the U.S. Constitution and is an infringement of the privileges of the House. Returns such bill to the Senate.
United States · United States Congress · 30 September 1985
Emergency Extension Act of 1985 - Extends for 45 days: (1) the increase in the excise tax on cigarettes; (2) the trade adjustment assistance program; (3) borrowing authority under the Railroad Unemployment Insurance Act; and (4) Medicare hospital and physician payment amounts. (Present law terminates the increase in the excise tax on cigarettes as of October 1, 1985, and the other specified programs as of September 30, 1985.)
United States · United States Congress · 30 September 1985
Emergency Extension Act of 1985 - Amends the Internal Revenue Code to extend for 45 days (to November 15, 1985) the increase in the excise tax on cigarettes and the environmental excise taxes (Superfund). Amends the Trade Act of 1974 to extend for 45 days the trade adjustment assistance programs. Amends the Railroad Unemployment Insurance Act to extend for 45 days the borrowing authority under this Act. Extends for 45 days the existing Medicare hospital and physician payment provisions.
United States · United States Congress · 30 September 1985
Amends the Internal Revenue Code to extend the termination of the environmental excise tax on petroleum (Superfund taxes) for 45 days from September 30, 1985, to November 14, 1985.
United States · United States Congress · 12 September 1985
Title I: Health Care Programs - Medicare and Medicaid Budget Reconciliation Amendments of 1985 - Part A: Changes Relating Primarily to Part A of the Medicare Program - Amends part A (Hospital Insurance) of title XVIII (Medicare) of the Social Security Act to provide that the applicable percentage increase for cost reporting periods beginning during FY 1986, with respect to payments for inpatient hospital services, shall be one percent. Provides for a one-year extension of the DRG transitional period by maintaining the current blend of rates for an additional year. Directs the Secretary of Health and Human Services to adjust payment amounts for hospitals for discharges occurring during FY 1986 to reflect changes the Secretary has proposed in specified regulations respecting the hospital wage index. Revises the formula which provides for additional payments to hospitals for indirect costs of medical education. Provides for an additional payment to an urban hospital of 100 or more beds that serves a disproportionate share of low-income patients. Treats as a rural referral center a rural osteopathic hospital having 3000 or fewer discharges annually. Prohibits the Secretary from limiting, for a period of one year, the costs that may be recognized as reasonable with respect to the net costs of approved educational activities for a cost reporting period based upon the net costs of those activities for any previous cost reporting period. Prohibits including in the reasonable costs of inpatient hospital services the return on equity capital for hospitals. Permits, in other cases, payment for a return on equity capital, provided that such rate of return equals the average of the rates of interest on obligations issued for purchase by the Federal Hospital Insurance Trust Fund. Provides for the continuation of State hospital reimbursement control demonstration systems, provided certain conditions are met. Permits States with such a system an extra year within which to fulfill certain assurances. Provides for a special rule for the treatment of depreciation and interest on capital indebtedness, in the case of the transfer of ownership of a hospital or skilled nursing facility without monetary consideration from a State to a non-profit corporation, which would not take into account the acquisition costs to the new owner. Requires a report from the Secretary to the Congress with respect to the impact of policies respecting outliers and patient transfers on payments to rural hospitals. Directs the Secretary to make available to the Prospective Payment Assessment Commission, the Congressional Budget Office, the Committee on Ways and Means of the House, and the Committee on Finance of the Senate the most current information on payments being made under the prospective payment system. Amends the Tax Equity and Fiscal Responsibility Act of 1982, with respect to payment for hospice care, to eliminate the sunset provision. Increases the payment rate for daily hospice care. Limits the time period within which the ten percent penalty for late enrollment under part A can be assessed. Amends the Internal Revenue Code to provide for the application of the hospital insurance tax to State and local employment. Requires any hospital with an emergency department to provide for the examination and stabilizing treatment of emergency conditions (inluding treatment for active labor) for any individual (whether or not eligible for Medicare) coming to such department. Provides for the termination of a hospital's Medicare agreement and civil penalties if the hospital does not comply. Part B: Changes Relating to Parts A and B of the Medicare Program - Requires, in the case of a covered employed individuals, that payment for health care items or services, to the extent possible, be made by the individual's group health plan before any Medicare payments will be made. Amends part B (Supplementary Medical Insurance) of title XVIII to define the "special enrollment period" as the period beginning with the first day of the first month in which an individual is no longer enrolled in a group health plan by reason of current employment and ending seven months later. Amends the Age Discrimination in Employment Act of 1967 to prohibit an employer from discriminating against an employee over age 65 under the employer's group health plan. Requires that in the case of an individual who is receiving inpatient hospital services as of the effective date of the individual's enrollment under Medicare with a health maintenance organization (HMO) or competitive medical plan (CMP): (1) payment for such services until the date of the individual's discharge shall be made under Medicare as if the individual were not enrolled with the HMO or CMP; (2) the HMO or CMP shall not be financially responsible for payment of such services until the date after the date of an individual's discharge; and (3) the HMO or CMP shall nonetheless be paid the full amount otherwise payable to the HMO or CMP. Requires that in the case of an individual who is receiving inpatient hospital services as of the effective date of the individual's termination of enrollment with an HMO or CMP: (1) the HMO or CMP shall be financially responsible for payment of such services after such date and until the date of the individual's discharge; (2) payment for such services shall not be made under the prospective payment system; and (3) the HMO or CMP shall not receive any payment with respect to the individual during the period the individual is not enrolled. Requires all marketing material of an HMO or CMP to be reviewed by the Secretary prior to its distribution. Directs the Secretary to evaluate: (1) the relative effectiveness of peer review organizations that require preadmission certification of 100 percent of elective inpatient surgical procedures compared with other peer review organizations that require such certification of a lesser percentage of such procedures; and (2) the feasibility of extending the pre-procedure certification activities of peer review organizations to cover elective surgical procedures conducted in outpatient and ambulatory care settings. Requires a report to the Congress. Prohibits the Secretary from providing for the merger of any renal disease network into a utilization and quality control peer review organization or another entity without express statutory authority. Directs the Secretary to extend, for three additional years, approval of three specified municipal health services demonstration projects. Part C: Changes Relating Primarily to Part B of the Medicare Program - Extends, for one year, the current freeze on physician charge levels for nonparticipating physicians under part B, while providing incentives for participating physicians. Eliminates the physician assignment rate list. Increases from 15 to 23 the number of members of the Prospective Payment Assessment Commission. Directs the Chairman of the Commission to provide for two subcommittees of the Commission, one with functions and responsibilities relating primarily to hospital payment issues and the other with functions and responsibilities relating primarily to physician payment issues. Directs the Commission to: (1) annually make recommendations to the Congress regarding adjustments to the reasonable charge levels for physicians' services under part B and changes in the methodology for determining the rates of payment, and for making payment for physicians' services; and (2) advise and make recommendations to the Secretary respecting the development of the relative value scale. Directs the Secretary to: (1) develop a relative value scale that establishes a numerical relationship among the various physicians' services for which payment may be made under part B; and (2) report to the Congress concerning such scale. Extends for an additional year provisions under which part B premiums shall equal 25 percent of program costs. Directs the Secretary by regulation to: (1) describe the factors to be used in determining if a reasonable charge is inherently reasonable; and (2) provide, in those cases where the reasonable charge is not inherently reasonable, for factors that will be considered in establishing a reasonable charge that is realistic and equitable. Revises the computation of customary charges with respect to certain former hospital-compensated physicians. Provides coverage for outpatient occupational therapy services. Prohibits coverage for an assistant in a cataract operation unless, before surgery, the appropriate utilization and quality control peer review organization has approved the use of an assistant because of a complicating medical condition. Directs the Secretary: (1) after consultation with the Prospective Payment Assessment Commission, to develop recommendations and guidelines respecting other surgical procedures for which an assistant at surgery is generally not medically necessary and the circumstances under which an assistant is appropriate; and (2) to report to the Congress with recommendations and guidelines. Provides that, with respect to the payment for replacement cataract eyeglasses and cataract contact lenses: (1) payment may be made for the replacement of lost or damaged cataract eyeglasses only once every year; and (2) payment may be made, in the first year after surgery, for one original cataract contact lens for each eye and for the replacement only twice of a lost or damaged cataract contact lens for each eye, and in each subsequent year, for the replacement only twice of a lost or damaged cataract contact lens for each eye. Directs the Secretary to establish a demonstration program designed to reduce disability and dependency through the provision of preventive health services to Medicare beneficiaries. Sets forth provisions relating to: (1) preventive health services to be made available under the demonstration program; (2) the conduct of the program; (3) evaluation of the program; (4) reports to the Congress; (5) funding; and (6) waiver of Medicare requirements. Part D: Other and Additional Changes Relating to Part B (or to Parts A and B) of the Medicare Program - Extends, for one year, the current freeze on physician charge levels for nonparticipating physicians under part B, while providing incentives for participating physicians. Eliminates the physician assignment rate list. Directs the Director of the Office of Technology Assessment to provide for the appointment of a Physician Payment Review Commission which shall include physicians, other health professionals, health researchers, and consumer representatives. Requires the Commission to annually make recommendations to the Congress regarding adjustments to the reasonable charge levels for physicians' services and changes in the methodology for determining the rates of payment, and for making payment, for physicians' services under Medicare and other items and services under part B. Requires the Commission to also advise and make recommendations to the Secretary concerning the development of the relative value scale. Authorizes appropriations. Directs the Secretary to develop a relative value scale that establishes a numerical relationship among the various physicians' services for which payment may be made under part B or State plans approved under title XIX (Medicaid) of the Act. Requires a report from the Secretary to the Congress concerning the relative value scale. Revises payment provisions with respect to durable medical equipment. Provides that, among other things, with respect to durable medical equipment furnished on or after October 1, 1986, the prevailing charge level may not exceed the percentage increase in the Consumer Price Index. Requires payment on an assignment basis for durable medical equipment furnished on a rental basis and for oxygen therapy services. Revises provisions relating to the dates for revising payments for clinical laboratory services. Sets limits on payment rates. Requires a report from the Secretary to the Congress concerning standards for clinical laboratories. Provides coverage for all services provided by a doctor of optometry. Prohibits payment for a surgical procedure listed by the Secretary unless a second opinion regarding such surgery is obtained. Provides that the second opinion need not agree with the first opinion in order for payment to be made. Directs the Secretary to establish a list of at least ten surgical procedures to which the second opinion requirement applies. Directs the Secretary to enter into contracts with utilization and quality control peer review organizations under which such organizations serve as referral centers for the second opinions required by this Act. Permits the patient to choose any qualified physician, except one affiliated with the initial physician, to provide the second opinion. Provides that a second opinion need not be obtained if: (1) to delay surgery would be a risk to the patient; (2) no physician is available, within reasonable limits, to provide the second opinion; and (3) the surgery is to be performed on a patient who is a member of a health maintenance organization or competitive medical plan having a risk sharing contract with the Secretary. Requires physicians, hospitals, and ambulatory surgical centers to notify patients of the second opinion requirement. Sets forth sanctions for noncompliance. Directs the Secretary to notify physicians, hospitals, ambulatory surgical centers, and Medicare beneficiaries of the second opinion requirement. Waives the deductible and copayments with respect to the second opinion. Sets forth effective date, regulation, and study provisions. Permits an individual to be represented by a provider during a Medicare related hearing or appeal. Permits, under part B, an administrative hearing if the amount in controversy is more than $500 and judicial review if the amount in controversy is more than $1,000. Directs the Secretary to provide for the extension of the waiver of certain Medicare and Medicaid (title XIX of the Act) requirements with respect to the On Lok Senior Health Services program. Part E: Changes Relating to the Medicaid Program - Amends title XIX (Medicaid) of the Act to: (1) include within the definition of "qualified pregnant woman" any woman who meets the income and resources requirements under part A (Aid to Families with Dependent Children) of title IV of the Act; (2) provide that the making available to covered pregnant women of pregnancy-related services shall not require the making available of such services to other individuals; and (3) provide that a woman who, while pregnant, is eligible for, has applied for, and has received Medicaid, shall be deemed, for purposes of the provision of all pregnancy-related and post-partum medical assistance under Medicaid, to remain pregnant until the end of the 60-day period beginning on the last day of her pregnancy. Defines the term "habilitation services" as used in title XIX. Provides for the coverage as home or community-based services of services provided to individuals who would otherwise continue to receive inpatient hospital services because they are dependent on ventilator support, the cost of which is reimbursed under Medicaid. Makes other revisions concerning home and community-based services with respect to: (1) total expenditures for such services; (2) expenditures for certain disabled patients; and (3) maintenance income standards. Directs the Secretary to establish a task force concerning alternative care for technology-dependent, chronically ill children. Requires the task force to: (1) identify barriers to, and recommend changes in, the provision of private and public health care so as to provide home and community-based alternatives to the institutionalization of such children; and (2) report to the Secretary and the Congress on its activities. Permits an eligible individual to receive hospice care under Medicaid. Requires a State's Medicaid plan to provide for payment to hospitals for direct medical education costs. Sets forth the procedures to be followed in determining the amount of such payments, including the determination of an approved full-time equivalent resident amount. Sets forth special rules for foreign medical graduates. Requires a report from the Secretary to the Congress. Sets forth provisions relating to the eligibility of an individual with a trust. Prohibits payment for organ transplant procedures, unless the State plan provides for written standards respecting the coverage of such procedures and unless such standards contain specified provisions. Provides that for Medicaid purposes, any individual receiving aid or assistance under part E (Foster Care and Adoption Assistance) of title IV of the Act shall be deemed to be receiving such aid or assistance from the State in which the individual actually resides. Extends the deadline for States to make mechanized claims processing and information retrieval systems operational. Extends a specified long-term care demonstration project. Requires a report from the Secretary to the Congress concerning Medicaid payments for hospitals serving disproportionate numbers of low income patients. Lists provisions of laws directly affecting Medicaid. Part F: Private Health Insurance Continuation - Amends the Internal Revenue Code to prohibit the expenses paid or incurred by an employer for a group health plan from being allowed as a deduction, unless each qualified beneficiary who would lose coverage because of a qualifying event is given the option of electing continued coverage under the plan. Sets forth specifics concerning such continuation, including: (1) that the maximum length of such coverage would be five years; and (2) that the plan may provide for payment of the total premium by the beneficiary. Part G: Task Force on Long-Term Health Care Policies - Directs the Secretary to establish a Task Force on Long-Term Health Care Policies. Requires the Task Force to develop guidelines for long-term health care policies and report to the Secretary and the Congress. Requires the Secretary: (1) to provide for the dissemination of the report to each of the States; and (2) to report to the Congress annually concerning such guidelines.
United States · United States Congress · 31 July 1985
Deficit Reduction Amendments of 1985 - Title I: Medicare Program - Medicare Budget Reconciliation Amendments of 1985 - Part A: Changes Relating Primarily to Part A of the Medicare Program - Amends part A (Hospital Insurance) of title XVIII (Medicare) of the Social Security Act to provide that the applicable percentage increase for cost reporting periods beginning during FY 1986 with respect to payments for inpatient hospital services, shall be one percent. Provides for a one-year extension of the DRG transitional period by maintaining the current blend of rates for an additional year. Directs the Secretary of Health and Human Services to adjust payment amounts for hospitals for discharges occurring during FY 1986 to reflect changes the Secretary has proposed in specified regulations respecting the hospital wage index. Provides for a study and report to the Congress from the Secretary concerning hospital wages in central cities. Revises the formula which provides for additional payments to hospitals for indirect costs of medical education. Provides for an additional payment to an urban hospital of 100 or more beds that serves a disproportionate share of low-income patients. Treats as a rural referral center a rural osteopathic hospital having 3,000 or fewer discharges annually. Prohibits the Secretary from limiting, for a period of one year, the costs that may be recognized as reasonable with respect to the net costs of approved educational activities for a cost reporting period based upon the net costs of those activities for any previous cost reporting period. Prohibits including in the reasonable costs of inpatient hospital services the return on equity capital for hospitals. Permits, in other cases, payment for a return on equity capital, provided that such rate of return equals the average of the rates of interest on obligations issued for purchase by the Federal Hospital Insurance Trust Fund. Provides for the continuation of State hospital reimbursement control demonstration systems, provided certain conditions are met. Permits States with such a system an extra year within which to fulfill certain assurances. Provides for a special rule for the treatment of depreciation and interest on capital indebtedness, in the case of the transfer of ownership of a hospital or skilled nursing facility without monetary consideration from a State to a nonprofit corporation, which would not take into account the acquisition costs to the new owner. Requires a report from the Secretary to the Congress with respect to the impact of policies respecting outliers and patient transfers on payments to rural hospitals. Directs the Secretary to make available to the Prospective Payment Assessment Commission, the Congressional Budget Office, the Committee on Ways and Means of the House, and the Committee on Finance of the Senate the most current information on payments being made under the prospective payment system. Amends the Tax Equity and Fiscal Responsibility Act of 1982, with respect to payment for hospice care, to eliminate the sunset provision. Increases the payment rate for daily hospice care. Limits the time period within which the ten percent penalty for late enrollment under part A can be assessed. Amends the Internal Revenue Code to provide for the application of the hospital insurance tax to State and local employment. Requires any hospital with an emergency department to provide for the examination and stabilizing treatment of emergency conditions (including treatment for active labor) for any individual (whether or not eligible for Medicare) coming to such department. Provides for the termination of a hospital's Medicare agreement and civil penalties, if the hospital does not comply. Provides criminal penalties for noncomplying physicians. Part B: Changes Relating to Parts A and B of the Medicare Program - Requires, in the case of all covered employed individuals, that payment for health care items or services, to the extent possible, be made by the individual's group health plan before any Medicare payments will be made. Amends part B (Supplementary Medical Insurance) of title XVIII to define the "special enrollment period" as the period beginning with the first day of the first month in which an individual is no longer enrolled in a group health plan by reason of current employment and ending seven months later. Amends the Age Discrimination in Employment Act of 1967 to prohibit an employer from discriminating against an employee over age 65 under the employer's group health plan. Requires that in the case of an individual who is receiving inpatient hospital services as of the effective date of the individual's enrollment under Medicare with a health maintenance organization (HMO) or competitive medical plan (CMP): (1) payment for such services until the date of the individual's discharge shall be made under Medicare as if the individual were not enrolled with the HMO or CMP; (2) the HMO or CMP shall not be financially responsible for payment of such services until the date after the date of an individual's discharge; and (3) the HMO or CMP shall nonetheless be paid the full amount otherwise payable to the HMO or CMP. Requires that in the case of an individual who is receiving inpatient hospital services as of the effective date of the individual's termination of enrollment with an HMO or CMP: (1) the HMO or CMP shall be financially responsible for payment of such services after such date and until the date of the individual's discharge; (2) payment for such services shall not be made under the prospective payment system; and (3) the HMO or CMP shall not receive any payment with respect to the individual during the period the individual is not enrolled. Requires all marketing material of an HMO or CMP to be reviewed by the Secretary prior to its distribution. Directs the Secretary to evaluate: (1) the relative effectiveness of peer review organizations that require preadmission certification of 100 percent of elective inpatient surgical procedures as compared with other peer review organizations that require such certification of a lesser percentage of such procedures; and (2) the feasibility of extending the pre-procedure certification activities of peer review organizations to cover elective surgical procedures conducted in outpatient and ambulatory care settings. Requires a report to the Congress. Prohibits the Secretary from providing for the merger of any renal disease network into a utilization and quality control peer review organization or another entity without express statutory authority. Directs the Secretary to extend, for three additional years, approval of three specified municipal health services demonstration projects. Part C: Changes Relating Primarily to Part B of the Medicare Program - Extends, for one year, the current freeze on physician charge levels for nonparticipating physicians under part B, while providing incentives for participating physicians. Increases from 15 to 23 the number of members of the Prospective Payment Assessment Commission. Directs the Chairman of the Commission to provide for two subcommittees of the Commission, one with functions and responsibilities relating primarily to hospital payment issues and the other with functions and responsibilities relating primarily to physician payment issues. Directs the Commission to: (1) annually make recommendations to the Congress regarding adjustments to the reasonable charge levels for physicians' services under part B and changes in the methodology for determining the rates of payment, and for making payment for physicians' services; and (2) advise and make recommendations to the Secretary respecting the development of the relative value scale. Directs the Secretary to: (1) develop a relative value scale that establishes a numerical relationship among the various physicians' services for which payment may be made under part B; and (2) report to the Congress concerning such scale. Extends for an additional year provisions under which part B premiums shall equal 25 percent of program costs. Directs the Secretary by regulation to: (1) describe the factors to be used in determining if a reasonable charge is inherently reasonable; and (2) provide, in those cases where the reasonable charge is not inherently reasonable, for factors that will be considered in establishing a reasonable charge that is realistic and equitable. Revises the computation of customary charges with respect to certain former hospital-compensated physicians. Provides coverage for outpatient occupational therapy services. Revises payment provisions with respect to durable medical equipment. Provides, among other things, that, with respect to durable medical equipment furnished on or after October 1, 1986, the prevailing charge level may not exceed the percentage increase in the Consumer Price Index. Prohibits coverage for an assistant in a cataract operation unless, before surgery, the appropriate utilization and quality control peer review organization has approved the use of an assistant because of a complicating medical condition. Directs the Secretary: (1) after consultation with the Prospective Payment Assessment Commission, to develop recommendations and guidelines respecting other surgical procedures for which an assistant at surgery is generally not medically necessary and the circumstances under which an assistant is appropriate; and (2) to report to the Congress with recommendations and guidelines. Provides that, with respect to the payment for replacement cataract eyeglasses and cataract contact lenses: (1) payment may be made for the replacement of lost or damaged cataract eyeglasses only once every year; and (2) payment may be made, in the first year after surgery, for one original cataract contact lens for each eye and for the replacement only twice of a lost or damaged cataract contact lens for each eye, and in each subsequent year, for the replacement only twice of a lost or damaged cataract contact lens for each eye. Directs the Secretary to establish a demonstration program designed to reduce disability and dependency through the provision of preventive health services to Medicare beneficiaries. Sets forth provisions relating to: (1) preventive health services to be made available under the demonstration program; (2) the conduct of the program; (3) evaluation of the program; (4) reports to the Congress; (5) funding; and (6) waiver of Medicare requirements. Part D: Private Health Insurance Continuation - Amends the Internal Revenue Code to prohibit the expenses paid or incurred by an employer for a group health plan from being allowed as a deduction unless each qualified beneficiary who would lose coverage because of a qualifying event is given the option of electing continued coverage under the plan. Sets forth specifics concerning such continuation, including: (1) five-year maximum length of coverage; and (2) allowing the plan to provide for payment of the total premium by the beneficiary. Title II: Trade and Customs Laws Amendments - Part A: Trade Adjustment Assistance - Amends the Trade Act of 1974 to require trade adjustment assistance for workers if increases in imports like or directly competitive with articles produced by such workers' firm contributed importantly to the total or partial separation of such workers or to the threat of total or partial separation of such workers or to a decline in sales and production of the firm. Provides that workers shall be eligible for trade adjustment assistance if a significant number or proportion of the workers in a workers' firm or subdivision have become totally or partially separated or are threatened with becoming totally or partially separated because of the relocation of the production functions of that firm or subdivision to a foreign country or instrumentality. Limits to seven the number of weeks during which the employee was on employer-authorized leave or was serving as a labor organization representative which may be treated as qualifying weeks of employment. Extends the duration of trade adjustment allowances from 52 to 104 weeks. Defines "reasonable expectation of employment" for purposes of determining if job training should be approved. Requires each State agency that is providing adversely affected workers with testing, counseling, training, and placement services to: (1) advise each adversely affected worker to apply for training under the trade adjustment assistance program at the time the worker applies for trade readjustment allowances; and (2) interview the adversely affected worker within 60 days on suitable training opportunities available under the trade adjustment assistance program. Directs the Secretary of Commerce to certify a firm as eligible for adjustment assistance if sales or production or both of an article that accounted for at least 25 percent of the total production or sales of the firm have decreased during a specified time period. Authorizes making financial assistance available to firms either through a single loan or a combination of loans. Deletes the provision that prohibits granting adjustment assistance or financial assistance to a firm unless the owners, partners, or officers of the firm bind themselves to avoid certain conflicts of interest. Extends adjustment assistance programs for workers and firms until September 30, 1989. Sets forth the effective dates for the provisions of this part. Part B: Authorization of Appropriations for Trade and Customs Agencies - Amends the Tariff Act of 1930 to authorize appropriations for FY 1986 for the International Trade Commission. Amends the Customs Procedural Reform and Simplification Act of 1978 to authorize appropriations for FY 1986 for the U.S. Customs Service. Earmarks specified amounts for: (1) additional inspectors, import specialists, customs patrol officers, and special agents; (2) the operation and maintenance of the air interdiction program of the Service; and (3) programs to enforce or monitor export controls under the Export Administration Act of 1979. Prohibits using any Customs Service funds to close any port of entry at which, during FY 1985: (1) not less than 2,500 merchandise entries were made; and (2) not less than $1,500,000 in customs revenues were assessed. Prohibits using any funds authorized for FY 1985 for the Customs Service for further research and development or acquisition of F-15 avionics for the P-3 aircraft and related equipment until 60 days after specified congressional committees have received a comparative assessment of the suitability of certain aircraft for use by the Customs Service in its air drug interdiction program. Prohibits using any such funds to consolidate the drawback liquidation centers within the Customs Service to less than four centers. Authorizes appropriations to the Department of the Treasury for FY 1986 for: (1) making payments out of the Customs Forfeiture Fund, including an amount for modifying aircraft for drug interdiction; and (2) providing customs services at airports. Requires the General Accounting Office to report to specified congressional committees within 12 months of enactment of this Act on a study that evaluates the air detection and interdiction capability of the Customs Service. Directs the Commissioner of Customs to use any savings resulting from administrative consolidations to strengthen the commercial operations of the Customs Service by increasing the number of inspector, import specialist, patrol officer, and other line operational positions. Prohibits the Commissioner from publishing or taking any other action to give force and effect to a final rule that would revise the current rule relating to the requirement for sureties on customs bonds: (1) unless the Commissioner submits a report to the Congress containing specified information; and (2) until 90 days of continuous session of the Congress after such report is submitted. Amends the Trade Act of 1974 to limit the number of officers and employees that the U.S. Trade Representative may appoint without regard to civil service regulations. Authorizes appropriations for the Office of the United States Trade Representative for FY 1986. Decreases the amount earmarked for entertainment and representation expenses. Part C: User Fees for Customs Services - Amends the Customs Procedural Reform and Simplification Act of 1978 to direct the Secretary of the Treasury to charge and collect specified fees for a period of three years to cover the expenses incurred by the Customs Service in processing arrivals at U.S. ports of entry of commercial vessels of 100 or more tons, commercial trucks, railroad cars, private aircraft or private vessels, each passenger aboard a commercial vessel or aircraft from a place outside the United States, and each passenger aboard a commercial vessel, aircraft, or train from Canada, Mexico, a U.S. territory or possession, or certain islands. Directs the Secretary of the Treasury to establish an advisory committee to advise the Secretary on issues related to the performance of the customs services. Title III: Provisions Relating to Aid to Families with Dependent Children - Amends part A (Aid to Families with Dependent Children) of title IV of the Social Security Act to require each State, in order to establish and maintain improved quality control standards and procedures in the operation and administration of its plan, to: (1) annually collect a statistically reliable sample of the cases under its approved State plan for purposes of quality control review; (2) review the sample and make findings; and (3) submit the findings to the Secretary. Requires the Secretary to review the records submitted and determine the State's error rate. Requires the State to develop a corrective action plan, submit such plan to the Secretary, and, after receiving the Secretary's approval, implement such plan. Specifies AFDC error rates. Provides for disallowances of payments to a State which has an error rate above the tolerance level. Permits a State to request a waiver of any disallowance, upon showing: (1) a good faith effort to reduce erroneous payments; or (2) that the Secretary's determination of the State's error rate was incorrect. Authorizes appropriations for FY 1986 and 1987 to be used by the Secretary for grants to assist States and localities in establishing and carrying out programs: (1) to reduce the rate of teenage pregnancies in AFDC families; and (2) to help pregnant individuals and teenage parents of young children in such families, who might otherwise become long-term recipients of AFDC, in achieving self-sufficiency. Requires a State to use such grants only in areas of high teenage pregnancy or high infant mortality. Requires a State to apply for such grants. Sets forth the objectives of a State's program, including requiring voluntary program participants to seek a high school diploma or equivalent training and providing program participants with job counseling and placement services. Limits participation in the high school and job placement and counseling programs to those individuals who are under the age of 25 or who are teenage parents of dependent children under the age of six. Sets forth: (1) program requirements; and (2) reporting requirements. Requires that the current AFDC program for unemployed parents be implemented in all States. Permits a State to substitute education for work in the definition of "quarters of work." Title IV: Provisions Relating to Railroad Unemployment Repayment Tax and Unemployment Compensation - Amends the Internal Revenue Code to revise provisions relating to the railroad unemployment repayment tax. Revises the formulas for determining the rate of such tax by combining a basic rate and a surtax rate. Provides that "rail wages" for purposes of such tax shall be determined by: (1) reference to the same compensation used in determining the railroad retirement tax; (2) taking into account only employment covered by the Railroad Unemployment Insurance Act; and (3) using a specified wage base during certain periods. Amends the Railroad Retirement Revenue Act of 1983 to revise provisions relating to the use of such tax to repay loans made to the railroad unemployment insurance account. Provides that such taxes attributable to the basic rate be used to reduce the outstanding balance of such loans made before October 1, 1985, and that such taxes attributable to the surtax rate be used to reduce the outstanding balance of such loans made on or after such date. Amends the Railroad Unemployment Insurance Act to extend the borrowing authority under such Act by deleting a prohibition against specified transfers after a certain date from the Railroad Retirement Account to the Railroad Unemployment Insurance Account. Provides that National Guard members who perform temporary disaster services related to a specified major disaster shall not lose their eligibility for Federal supplemental unemployment compensation, under the phase-out of such program benefits, because of certain consecutive-weeks-of-unemployment requirements under the Federal Supplemental Compensation Act of 1972. Title V: Revenue Provisions - Expresses the sense of the Congress that proposed reductions in the budget for the Internal Revenue Service for FY 1986 should be restored and increases in such budget should be approved for revenue enforcement and related purposes. Amends the Internal Revenue Code to make permanent the increase in the excise tax on cigarettes. (Present law terminates such increase as of October 1, 1985.) Establishes in the Treasury the Tobacco Equalization Trust Fund. Appropriates to such trust fund a specified portion of the excise tax on cigarettes. Allows expenditures from such trust fund for the reimbursement of the Commodity Credit Corporation for any net losses sustained with respect to the tobacco price support program. Increases the excise tax on coal. Sets specified per ton rates of such tax for coal from underground mines from 1986 through 1995. Allows for a reduction in such tax after 1995 if loans made to the Black Lung Disability Trust Fund are repaid. Provides that only the amount of railroad retirement benefits which are equivalent to social security benefits shall be treated as tier 1 benefits. Provides for a temporary increase in Pension Benefit Guaranty Corporation premiums for single employer plans for plan years beginning after December 31, 1985, and before January 1, 1989.
United States · United States Congress · 30 July 1985
Comprehensive Nuclear Weapons Freeze and Arms Reduction Act of 1985 - Expresses the sense of the Congress that the President should immediately invite the Soviet Union to enter into negotiations with the United States which seek an agreement on a comprehensive freeze (a bilateral and adequately verifiable halt by the United States and the Soviet Union in all testing, production, and deployment of nuclear weapons systems). Declares the President should inform the Soviet Union of the U.S. intention to engage in a bilateral halt in the testing, production, and deployment of nuclear weapons systems. Expresses the sense of the Congress that: (1) both during and after negotiations for a comprehensive freeze the President should pursue reductions in nuclear arsenals; and (2) a comprehensive freeze is entirely consistent with, and an essential part of mutual stabilizing reductions in nuclear forces. Requires both the Senate and the House Intelligence Committees to begin oversight hearings on verification procedures for the comprehensive freeze. Sets forth which committees and subcommittees may have members participate in such hearings. Requires the Intelligence Committees to report to their respective Houses within six months of enactment of this Act on the adequacy of U.S. monitoring systems and existing procedures for verifying Soviet compliance with the comprehensive freeze. Requires the reports to include: (1) an assessment of the nature and extent of Soviet activities and installations involved in the testing, production, and deployment of nuclear weapons systems; (2) an assessment of current U.S. capabilities to monitor threatening changes in the status of Soviet nuclear forces under the comprehensive freeze; and (3) an assessment of additional monitoring systems and cooperative procedures that may be needed to increase monitoring confidence of compliance. Requires the Director of the U.S. Arms Control and Disarmament Agency to begin preparing an operational plan for implementation of the comprehensive freeze. Requires the Director to report to the Congress on the plan within nine months of enactment of this Act. Requires the report to specify: (1) procedures for the cessation of activities and closure or conversion of facilities affected by the comprehensive freeze; (2) a program for the retraining and re-employment of Government and defense industry personnel directly affected by the termination of nuclear weapons-related activities; and (3) a program of economic adjustment assistance for adversely affected communities. Directs the President to submit semi-annual reports to the Congress on: (1) the status of U.S. and Soviet negotiation efforts; (2) Soviet military activities relating to the testing, production, and deployment of nuclear weapons systems; and (3) any uncertainties concerning verification of the comprehensive freeze, the status of efforts to reduce those uncertainties, and the national security implications of those uncertainties. Imposes the following restrictions on nuclear testing, deployment, and production only if the Soviet Union, within a specified time, informs the President that the Soviet Union will observe a bilateral halt in the testing, production, and deployment of nuclear weapons systems. Prohibits obligating or spending appropriations for testing, producing, or deploying nuclear weapons systems, unless the Congress expressly provides otherwise. Allows the testing and deployment of specified nuclear missiles for a limited time. Sets forth the effective dates of such restrictions. Authorizes the President to request the Congress to remove the funding restrictions on the testing, production, and deployment of nuclear weapons systems only if the President certifies to the Congress that: (1) the Soviet Union has failed to demonstrate a restraint with respect to nuclear weapons systems which corresponds to the restraint being shown by the United States; or (2) continuation of the funding restrictions would cause significant and irreparable damage to U.S. national security. Provides for expedited congressional consideration of such a request by the President.
United States · United States Congress · 25 July 1985
Title I: Approval of Compact; Interpretation of, and U.S. Policies Regarding Compact; Supplemental Provisions - Grants congressional approval of the Compact of Free Association between the United States, the Marshall Islands, and the Federated States of Micronesia. Sets forth: (1) provisions for implementing such Compact (including provisions for congressional submission, presidential certification, mutual assistance in law enforcement and drug control, and review of economic development plans); and (2) U.S. policies regarding such Compact. Provides for the President to negotiate with the Government of the Marshall Islands an agreement to assure continued use of lands on Ujelang by the people of Enewetak and lands on Ejit by the people of Bikini. Requires the United States to pay, or to make loans to, the Government of the Marshall Islands for the use of land on Kwajalein Atoll for U.S. military purposes. Sets forth provisions with respect to: (1) payments to the people of Bikini, Enewetak, Rongelap, and Utirik affected by U.S. nuclear weapons tests; (2) health care; (3) agricultural and food programs; (4) establishment of the Enjebi Community Trust Fund; and (5) Rongelap and Bikini Island cleanup. Sets forth provisions regarding: (1) the continuance of democracy and respect for international human rights by the Marshall Islands and the Federated States of Micronesia; (2) non-alienation of compact state lands; and (3) nuclear waste disposal. Requires the President to: (1) report to the Congress with respect to the impact of the Compact on the U.S. territories and Hawaii; and (2) seek the cooperation of the Marshall Islands and the Federated States of Micronesia in the development of international and regional fishery management policy (including jurisdiction over highly migratory species of fish found outside the territorial sea of the compact states). Prohibits U.S. funds from being used by the compact states to pay off foreign loans. Authorizes the Comptroller General to audit all U.S. assistance to the compact states. Sets forth provisions relating to: (1) Trust Territory authorizations; (2) foreign agent registration; (3) security and defense matters; (4) education assistance programs; (5) compact state debts to Federal agencies; (6) technical assistance by the U.S. Forest Service, U.S. Coast Guard, and U.S. Fish and Wildlife Service; (7) Department of Defense medical facilities; (8) Micronesian war claims; (9) United States land use payments; (10) disease control; (11) congressional approval of amendments to the Compact; and (12) user fees. Provides that upon the effective date of the Compact: (1) the laws of of the United States generally applicable to the Trust Territory of the Pacific Islands shall continue to apply to the Republic of Palau; and (2) Palau shall continue to be eligible for such proportion of Federal assistance as it would otherwise have been eligible to receive under such laws prior to the effective date of such Compact. Provides for preferences to local and U.S. contractors on construction projects, and for local hiring and training for such projects. Authorizes appropriations. Title II: Compact of Free Association - Sets forth the Compact of Free Association between the United States, the Marshall Islands, and the Federated States of Micronesia. (Declares that the people of the Marshall Islands and the Federated States of Micronesia are self-governing. States that the United States shall provide grant and program assistance to such territories. Declares that the United States has full authority and responsibility for the security and defense of such territories.) Declares that the defense sites of the United States established in the Marshall Islands or the Federated States of Micronesia in accordance with the Compact and its related agreements are within the special maritime and territorial jurisdiction of the United States. Title III: Pacific Policy Review Commission - Establishes the Pacific Policy Review Commission which shall review U.S. policy toward the Pacific region to determine whether modifications are necessary to achieve political, social, and economic development there. Requires the Commission to annually submit reports to the President and to the Congress. Authorizes appropriations. Terminates the Commission when it makes its final report to the Congress and the President. Title IV: Clarification of Certain Trade and Tax Provisions of the Compact - Sets forth provisions with respect to the beneficiary country status of the Marshall Islands and the Federated States of Micronesia. Declares that the exemption from U.S. income tax shall not apply to U.S. citizens who reside in the Marshall Islands and the Federated States of Micronesia. Sets forth provisions relating to tax incentives and exchange of tax information. Requires the Secretary of the Treasury to conduct a study on the effects of the Compact's tax provisions and to report such results to specified congressional committees.
United States · United States Congress · 23 July 1985
Title I: Approval of Compact; Interpretation of, and U.S. Policies Regarding Compact; Supplemental Provisions - Grants congressional approval to the Compact of Free Association between the United States, the Marshall Islands, and the Federated States of Micronesia. Sets forth: (1) provisions for implementing such Compact (including provisions for congressional submission, presidential certification, mutual assistance in law enforcement and drug control, and review of economic development plans); and (2) U.S. policies regarding such Compact. Provides for the President to negotiate with the Government of the Marshall Islands an agreement to assure continued use of lands on Ujelang by the people of Enewetak and lands on Ejit by the people of Bikini. Requires the United States to pay, or to make loans to, the Government of the Marshall Islands for the use of land on Kwajalein Atoll for U.S. military purposes. Sets forth provisions with respect to: (1) payments to the people of Bikini, Enewetak, Rongelap, and Utirik affected by U.S. nuclear weapons tests; (2) health care; (3) agricultural and food programs; (4) establishment of the Enjebi Community Trust Fund; and (5) Rongelap and Bikini Island cleanup. Sets forth provisions regarding: (1) the continuance of democracy and respect for international human rights by the Marshall Islands and the Federated States of Micronesia; (2) non-alienation of compact state lands; and (3) nuclear waste disposal. Requires the President to: (1) report to the Congress with respect to the impact of the Compact on the U.S. territories and Hawaii; and (2) seek the cooperation of the Marshall Islands and the Federated States of Micronesia in the development of international and regional fishery management policy (including jurisdiction over highly migratory species of fish found outside the territorial sea of the compact states). Prohibits U.S. funds from being used by the compact states to pay off foreign loans. Authorizes the Comptroller General to audit all U.S. assistance to the compact states. Sets forth provisions relating to: (1) Trust Territory authorizations; (2) foreign agent registration; (3) security and defense matters; (4) education assistance programs; (5) compact state debts to Federal agencies; (6) technical assistance by the U.S. Forest Service, U.S. Coast Guard, and U.S. Fish and Wildlife Service; (7) Department of Defense medical facilities; (8) Micronesian war claims; (9) United States land use payments; (10) disease control; (11) congressional approval of amendments to the Compact; and (12) user fees. Provides that upon the effective date of the Compact: (1) the laws of the United States generally applicable to the Trust Territory of the Pacific Islands shall continue to apply to the Republic of Palau; and (2) Palau shall continue to be eligible for such proportion of Federal assistance as it would otherwise have been eligible to receive under such laws prior to the effective date of such Compact. Provides for preferences to local and U.S. contractors on construction projects, and for local hiring and training for such projects. Authorizes appropriations. Title II: Compact of Free Association - Sets forth the Compact of Free Association between the United States, the Marshall Islands, and the Federated States of Micronesia. (Declares that the people of the Marshall Islands and the Federated States of Micronesia are self-governing. States that the United States shall provide grant and program assistance to such territories. Declares that the United States has full authority and responsibility for the security and defense of such territories.) Declares that the defense sites of the United States established in the Marshall Islands or the Federated States of Micronesia in accordance with the Compact and its related agreements are within the special maritime and territorial jurisdiction of the United States. Title III: Pacific Policy Review Commission - Establishes the Pacific Policy Review Commission which shall review U.S. policy toward the Pacific region to determine whether modifications are necessary to achieve political, social, and economic development there. Requires the Commission to submit annual reports to the President and to the Congress. Authorizes appropriations. Terminates the Commission when it makes its final report to the Congress and the President. Title IV: Clarification of Certain Trade and Tax Provisions of the Compact - Provides that the Compact shall not affect the tariff treatment of products imported into the United States from the Federated States of Micronesia or the Marshall Islands. Declares that the exemption from U.S. income tax shall not apply to U.S. citizens who reside in the Marshall Islands and the Federated States of Micronesia. Sets forth provisions relating to tax incentives and exchange of tax information. Authorizes appropriations to such territories to compensate for any reductions in tax incentives. Requires the Secretary of the Treasury to conduct a study on the effects of the Compact's tax provisions and to report such results to specified congressional committees.
United States · United States Congress · 18 July 1985
Dropout Prevention and Reentry Act of 1985 - Amends the Elementary and Secondary Act of 1965 (ESEA) to add a new title X, the Dropout Prevention and Reentry Act of 1985. (Redesignates the current title X as title XI.) Authorizes appropriations for FY 1987 through 1990 for such new title X. Directs the Secretary of Education, from such title X funds for any fiscal year, to allot 20 percent to each of five categories of local educational agencies (LEAs) (based on total elementary and secondary school student enrollments). Directs the Secretary, from the amounts allotted to such categories of LEAs, to award as many grants as practicable within each such category to LEAs whose applications: (1) have been approved; and (2) propose a program of sufficient size and scope to be of value as a demonstration. Limits an LEA to no more than one such grant in each of three fiscal years. Requires the amount of a grant to be, to the extent practicable, proportionate to the extent and severity of the local dropout problem. Limits the amount of a grant to 90 percent of the total cost of a project during its first fiscal year, 80 percent in the second, and 70 percent in the third. Sets forth grant application requirements (including plans for addressing the needs of pregnant minors and school-age parents). Directs the Secretary to give first priority within each category of LEA to applicants with either very high numbers or very high percentages of school dropouts. Sets forth requirements for review of LEA second or third year projects. Requires such grants to be used to carry out plans set forth in the applications. Lists activities such grants may also be used for, including counseling, remedial education, work-study, community-organization service, curriculum review, and school staff training. Requires at least 30 percent of each grant to be used for dropout prevention activities, and another 30 percent for dropout reentry activities (i.e. persuading dropouts to return to school and assisting former dropouts with specialized services once they return to school). Directs the Secretary, from amounts appropriated to the Secretary for FY 1986, to use a specified limited amount to conduct a one-year study of the nature and extent of the dropout program. Sets forth requirements for such study, (including development of a model dropout information collection and reporting system and minimum reporting system requirements). Sets forth general provisions for title X, including provisions relating to withholding payments, annual reports, and audits. Requires that title X grants supplement other funds.
United States · United States Congress · 18 July 1985
Trade Emergency and Export Promotion Act - Declares that actions by the President, the International Trade Commission (ITC), the Secretary of the Treasury, the Secretary of Agriculture, and the U.S. Trade Representative (USTR) pursuant to this Act shall not be reviewable by any court, except for abuse of discretion. Title I: International Trade Actions and Agreements - Declares that a national emergency exists because of distortions and imbalances in trade and instability in exchange rates and that such emergency requires extraordinary measures, including action to: (1) restore the value of the dollar; and (2) either eliminate foreign unfair trade barriers or prohibit countries which employ such barriers from enjoying trade surpluses with the United States or increasing shares of world export markets. Authorizes the President to negotiate and enter into with any foreign country or entity agreements limiting the export from such country or entity, and the importation into the United States, of any article. Directs the USTR to initiate proceedings against Japan before appropriate international bodies in order to obtain authorization to take trade actions against Japan on the grounds that: (1) Japan has failed to comply with trade agreements entered into with the United States; and (2) Japan has adopted numerous domestic policies and practices that impair and violate such trade agreements and impede achievement of their objectives. Directs the USTR, with the cooperation of the Secretary of Agriculture, to initiate actions under all international trade agreements to which the United States is a party in order to take appropriate countermeasures against agricultural export subsidies provided by the European Communities and other countries which will be used to prevent: (1) injury to U.S. agricultural producers; (2) nullification or impairment of such trade agreements; and (3) serious prejudice to the United States. Authorizes the USTR to initiate actions against each foreign country (except Japan and the European Communities) or entity that was an excess worldwide trade surplus country or an excess bilateral trade surplus country for 1984 under all applicable U.S. laws and international agreements in order to: (1) enforce the rights of the United States under such international agreements; and (2) obtain the elimination of certain trade acts, policies, and practices of such countries or entities. Directs the USTR to explain in proceedings initiated under this title that the United States finds it necessary to take the actions provided in title II of this Act as interim measures pending the outcome of such proceedings in order to protect vital U.S. interests. Directs the Secretary of the Treasury to develop a plan to reduce fluctuations between currencies on foreign currency exchange markets. Sets forth characteristics of such plan. Title II: Interim Domestic Trade Actions to Respond to the Trade Emergency - Subtitle A: Stand-by Duties - Directs the ITC to determine annually each major exporting country's: (1) worldwide nonpetroleum export percentage; (2) bilateral nonpetroleum export percentage; (3) worldwide nonpetroleum trade surplus; (4) bilateral nonpetroleum trade surplus; (5) worldwide trade surplus limitation; and (6) bilateral trade surplus limitation. Requires the ITC to report annually to the President on: (1) the determinations on the trade of such major exporting countries; (2) the identity of each foreign country which was an excess worldwide trade surplus country or excess bilateral trade surplus country during the preceding year; and (3) whether or not standby duties should be imposed on imports from such countries. Requires the President, within 15 days of receiving such report to determine, with respect to each country identified as an excess worldwide trade surplus country or excess bilateral trade surplus country: (1) whether such country unfairly restricts or limits the access of imports to its markets; and (2) if the President determines that such country does restrict access to its markets, whether such restriction contributes to that country's trade surplus. Requires the President, if both such determinations are positive, to impose stand-by duties on all imports from such countries. Prohibits making such determinations or imposing such duties if the U.S. trade deficit divided by the U.S. gross national product is less than one and one-half percent. Requires the President to report to the Congress, within 15 days of receiving the reports on worldwide and bilateral trade, on the determinations made with respect to imposing stand-by duties. Declares that the rate of a stand-by duty shall be 25 percent ad valorem and that such duty shall be in addition to any other duties. Provides for the implementation of such duties. Requires all revenues from such stand-by duties to be allocated to the Public Debt Reduction Account in the Treasury. Expresses the sense of the Congress that all funds in such Account be used only to reduce the Federal debt. Directs the Secretary of the Treasury to report annually to the Congress on the revenue derived from such stand-by duties. Prohibits imposing stand-by duties on articles imported after April 30, 1992. Prohibits requiring reports and determinations on trade surpluses after April 1991. Subtitle B: Reports - Directs the President to report annually to specified congressional committees on the operation of this Act. Title III: Trade Law Reform - Amends the Trade Act of 1974 to transfer to the USTR from the President the authority to order import relief and the authority to extend tariff preferences. Amends the Tariff Act of 1930 to transfer to the USTR from the President the authority to approve or disapprove ITC actions to prevent unfair practices in import trade.
United States · United States Congress · 11 June 1985
Amends the Tariff Schedules of the United States to permit, until September 30, 1987, duty-free entry of the personal effects and the game equipment of foreign participants, officials, and their immediate families who are involved in the Tenth Pan American Games.
United States · United States Congress · 14 May 1985
Amends the Internal Revenue Code to reduce the imputation rate on seller-financed transactions from 120 percent to 100 percent of the Federal rate. Eliminates the separate testing rate for the determination of imputed interest. Directs the Secretary of the Treasury to make a determination of the Federal short-term, mid-term, and long-term rates on a monthly basis. Permits the use of a lower rate than the applicable Federal rate where such rate is based on the same principles as the applicable Federal rate and is appropriate for the term of the instrument. Provides that the rate used to test the adequacy of stated interest on the first $2,000,000 of seller financing cannot exceed nine percent. Provides that where the amount of seller financing is greater than $4,000,000, the test rate is 100 percent of the applicable Federal rate. Establishes a blended rate for sales between $2,000,000 and $4,000,000 equal to nine percent on an amount which phases out dollar-for-dollar as the amount of seller financing exceeds $2,000,000 and 100 percent of the applicable Federal rate on the excess. Provides that the $2,000,000 and $4,000,000 threshold amounts will be indexed for inflation after 1988. Allows the parties to elect to account for interest using the cash method of accounting where the transaction amount of seller-financing is not more than $2,000,000. Lengthens the recovery period for real property from 18 to 19 years.
United States · United States Congress · 9 May 1985
Authorizes the Secretary of the Air Force to enter into agreements with the State of Illinois or appropriate units of local government to permit the joint use of Scott Air Force Base for military and civilian aviation purposes. Renames Scott Air Force Base as the Mel Price Air Force Base and Airport Illinois.
United States · United States Congress · 2 May 1985
Amends the Foreign Trade Zones Act to extend, through June 30, 1989, the exclusion of imported bicycle parts that are not subsequently re-exported from the exemption of the customs laws that is applicable to a foreign trade zone. Amends the Tariff Schedules of the United States to suspend, through June 30, 1989, the duties on generator lighting sets for bicycles, bicycle chains, and certain other bicycle parts.
United States · United States Congress · 2 May 1985
Amends the Tariff Schedules of the United States to provide that television picture tubes imported in combination with, or incorporated into, other articles are to be classified as television picture tubes unless they are incorporated or put into kits for incorporation into complete television receivers or into certain other fully assembled units.
United States · United States Congress · 23 April 1985
Authorizes the President, on behalf of the Congress, to present a gold medal honoring George Gershwin to his sister, Frances Gershwin Godowsky, and a gold medal honoring Ira Gershwin to his widow, Lenore Gershwin. Directs the Secretary of the Treasury to provide for the sale of bronze duplicates of the medal. Authorizes appropriations.
United States · United States Congress · 18 April 1985
Amends the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (ERISA) to make technical corrections and other revisions related to the Retirement Equity Act of 1984 (REA). Sets forth amendments related to REA modifications of minimum participation and vesting standards for employee benefit plans. Requires class-year plans, in general, to provide that a participant's rights to benefits derived from employer contributions for any plan year are nonforfeitable not later than when such participant has performed services for the employer as of the close of each of five plan years (whether or not consecutive after the plan year for which the contributions were made), but allows for such plans to provide for forfeiture of such rights if the participant has not performed such services as of the close of each of any five consecutive plan years after such plan year (i.e. a five-year break in service). Requires, for purposes of determining whether any distribution which becomes payable to the recipient on account of the employee's separation from service is a lump sum distribution, that the balance to the credit of the employee be determined without regard to any increase in vesting which may occur if the employee is reemployed by the employer. Provides for recapture of such reduction in tax, in certain cases. Provides, under repayment requirements relating to withdrawals of mandatory contributions, that a defined contribution plan may provide that such a repayment must be made before a participant has a period of five consecutive one-year breaks in service (currently any one-year break in service). Reduces from 25 years to 21 years the age which plan participants may be required to attain for purposes of simplified employment pensions. Sets forth amendments related to REA requirements of joint and survivor annuity and preretirement survivor annuity. Provides that qualified preretirement survivor annuity rules apply in the case of death before the annuity starting date. Provides that qualified joint and survivor annuity rules apply in the case of death on or after the annuity starting date. Provides that the transferee plan rule applies only with respect to: (1) transfers made after December 31, 1984; and (2) the transferred assets if the plan separately accounts for assets and any income therefrom. Requires spousal consent for: (1) using plan assets as security for loans; and (2) changes in designations. Provides that, in the case of a participant hired after age 35, the period for giving notice to the participant of the right to waive a qualified preretirement survivor annuity is a reasonable period after the date of hire. Makes certain clerical amendments. Sets forth amendments related to special rules for assignments in divorce, etc., proceedings (which REA added to IRC and ERISA). Provides that such special rules for determining the taxability of benefits subject to a qualified domestic relations order apply only to distributions made to an alternate payee who is the spouse or the former spouse of the participant. Specifies that the 18-month period during which benefits may be deferred begins with the date on which the first payment would be required to be made under the domestic relations order if there were no deferral. Directs the Secretary of the Treasury to prescribe regulations to coordinate specified requirements (and regulations issued by the Secretary of Labor thereunder) affecting qualified domestic relations orders with the overall qualification requirements. Waives certain distribution requirements (which prohibit payment of benefits before termination of employment) if a plan makes payments which are worth $3,500 or less to any alternate payee pursuant to a qualified domestic relations order. Sets forth amendments related to the requirement under IRC, as amended by REA, that a written explanation be given to recipients of distributions eligible for rollover. Defines "eligible rollover distribution" for purposes of such requirement. Sets forth amendments related to provisions, under ERISA as amended by REA, for the treatment of certain plan amendments as reducing benefits. Sets forth amendments related to the REA transitional rule for requirement of joint and survivor annuity and preretirement survivor annuity. Sets forth amendments related to REA provisions for treatment of certain participants who perform services on or after January 1, 1976.
United States · United States Congress · 16 April 1985
Interstate Compact - Grants congressional approval to the Central Midwest Interstate Compact on Low-Level Radioactive Waste Management, which provides for cooperation between the States of Kentucky and Illinois in the management of low-level radioactive waste.
United States · United States Congress · 3 April 1985
Title I: Revenue Provisions - Sale of Conrail Tax Provisions Act of 1985 - Provides that, for purposes of the Internal Revenue Code, no Conrail net operating loss, capital loss, or income tax credit attributable to any period before the closing of the sale of Conrail may be carried forward to any period after the closing. Excludes from gross income any amounts relating to the cancellation of debt or preferred stock of Conrail in connection with the sale of Conrail. Provides that the adjusted basis of Conrail assets after the closing of the sale shall be the adjusted basis shown in good faith on Conrail's tax return for the taxable year ending as of the closing. Allows the waiver of certain employee stock ownership plan requirements for purposes of Conrail's employee stock ownership plans. Provides that, for purposes of the consolidated return regulations, the following shall not be treated as built-in deductions: any amounts which are ordinary and necessary business expenses and which are paid to Conrail employees for services rendered after the closing to increase their post-closing wages to industry standards, or are paid for specified routing concessions. Title II: Transfer of Ownership Provisions - Sale of Conrail Act of 1985 - Subtitle A: General Provisions - Amends the Regional Rail Reorganization Act of 1973 and the Northeast Rail Service Act of 1981 to define the terms: (1) Definitive Agreements (any and all agreements between the United States and Norfolk Southern Corporation); and (2) Secretary's Plan (Memorandum of Intent between the United States and Norfolk Southern Corporation signed February 8, 1985). Declares it is the purpose of the Congress to return the Consolidated Rail Corporation (Conrail) to the private sector by implementing the Plan of the Secretary of Transportation (the Secretary) to sell the Federal interest in Conrail common stock. Subtitle B: Amendments to the Regional Rail Reorganization Act of 1973 and the Northeast Rail Service Act of 1981 - Amends the Regional Rail Reorganization Act of 1973 to terminate the authority of the United States Railway Association (the Association) to purchase Conrail securities when the sale of the Federal interest in Conrail common stock has been consummated. Makes the Regional Rail Reorganization Act of 1973 inapplicable to Conrail after the sale of the Federal interest in Conrail common stock has been consummated. Makes specified provisions of such Act still applicable to Conrail under certain conditions. Directs the Secretary to implement the plan to sell Conrail common stock to the Norfolk Southern Corporation. States that such implementation, and the coordinated operation of Conrail's properties with those of Norfolk Southern Corporation and its affiliates as a single rail system, is deemed approved by the Interstate Commerce Commission. Directs the Secretary to implement the Secretary's Plan by performing specified Definitive Agreements which shall conform substantially with the Memorandum of Intent between the United States and Norfolk Southern Corporation signed February 8, 1985. Repeals provisions which allow the sale of Conrail common stock to the railroads or to certain railroad employees. Authorizes the Secretary to recapitalize Conrail in such a way that the Federal interest in any debt or preferred stock is cancelled and contributed to the Corporation's capital. Provides protective labor conditions under specified arbitration provisions to certain personnel whose employment is adversely affected by the sale of the Federal interest in Conrail common stock. Amends the Northeast Rail Service Act of 1981 to confer jurisdiction upon a special Federal district court (established by the judicial panel on multi-district litigation) to hear civil actions relating to the: (1) Sale of Conrail Act of 1985; (2) enforcement of the Secretary's Plan or the Definitive Agreements (pertaining to the Conrail sale); and (3) the value of the interest in Conrail Equity Corporation preferred stock of the Conrail Employees Stock Ownership Plan (ESOP) and related trusts. Provides that, with certain exceptions, no persons connected with the Conrail ESOP shall be subject to any fiduciary obligation or fiduciary civil liability for actions pertaining to the Secretary's Plan or disposition of Conrail Equity Corporation assets. States that the registration and prospectus delivery requirements of the Securities Act of 1933 (including State laws and certain Federal approval requirements) shall not apply to implementation of the Secretary's Plan through: (1) the sale or contribution of securities by Norfolk Southern Corporation to fulfill arrangements with Conrail employees or (2) the distribution of shares from Conrail employee stock ownership plans. Subtitle C: Technical and Conforming Amendments - Makes technical and conforming amendments to various laws affected by this Act. Subtitle D: Miscellaneous Provisions - States that Conrail's status as a common carrier is not affected by the sale of the Federal interest in Conrail common stock.
United States · United States Congress · 2 April 1985
Amends the Internal Revenue Code to repeal the requirement that contemporaneous records be kept to substantiate deductions for certain travel expenses, including automobile expenses, business entertainment expenses, and expenses for gifts. Repeals the requirement that tax return preparers inform the taxpayer of such recordkeeping requirements. Repeals the special negligence penalty for failure to have written confirmation from the taxpayer that records exist. Repeals any regulations issued by the Secretary of the Treasury to implement the contemporaneous recordkeeping requirements. Provides that there must be sufficient written evidence substantiating the taxpayer's own statement as to such business deductions. Excludes from the recordkeeping requirements any qualified nonpersonal use vehicle. Defines "qualified nonpersonal use vehicle" as any vehicle which, by reason of its nature, is not likely to be used more than a de minimis amount for personal purposes. Provides that an employer may elect to not withhold any tax with respect to any vehicle fringe benefit provided to an employee if the employee is notified that the employer is making such election. Requires the vehicle fringe benefit to be included on the employee's withholding statement. Reduces the amount of the limitation on the investment tax credit for an automobile from $1,000 to $675. Reduces the annual depreciation deductions that are allowed for an automobile to: (1) $3,600 depreciation in the first year (currently the limit is $4,000); and (2) $5,400 depreciation in any subsequent year. (Currently the limit is $6,000.) Provides for a one-year deferral of the annual inflation adjustment of these limits. Requires the Secretary of the Treasury to prescribe regulations by October 1, 1985, to carry out these provisions.
United States · United States Congress · 2 April 1985
Amends the Federal Supplemental Compensation Act of 1982 to provide for a phase out, rather than an immediate termination, of the Federal supplemental unemployment compensation program by providing that individuals who are eligible for compensation in the last week of the current program shall receive the full number of weeks of compensation without regard to the termination date of the program. (Current law terminates all compensation payments as of April 6, 1985, the end of the week beginning March 31, 1985.) Provides for modification of agreements with States to conform to the amendments made by this Act.
United States · United States Congress · 2 April 1985
Expresses the sense of the Congress that the President shall take appropriate action to: (1) develop a plan for reducing the trade deficit by attacking its causes; and (2) secure the elimination of Japanese acts and policies which are inconsistent with or deny the United States the benefits of trade agreements to which Japan is a party and which are unjustifiable, unreasonable, or discriminatory. Directs the President, within specified times, to: (1) determine whether Japan has taken sufficient action to assure the elimination of such acts and policies; (2) report such determination to specified congressional committees; and (3) if Japan has not taken sufficient action, take action to eliminate such acts and policies by more aggressive use of existing customs laws and other trade laws. Requires the President's action to be sufficient to "insure that access to the Japanese market is fair and equitable, as measured by increased sales of competitive products from the United States and elsewhere, and verified by affirmation from the United States business community." Permits modification or revocation of the President's action only if the President determines that the objectives set forth in this resolution have been achieved.
United States · United States Congress · 28 March 1985
Technical Corrections Act of 1985 - Title I: Technical Corrections Related to Tax Reform Act of 1984 - Part A: Amendments Related to Title I of the Act - Makes technical amendments relating to the deferral of certain tax deductions. Makes technical amendments relating to tax-exempt entity leasing provisions. Makes technical amendments and corrections to provisions relating to the treatment of bonds and other debt instruments. Makes technical amendments and corrections to corporate tax provisions. Makes technical amendments and corrections to partnership tax provisions. Makes technical amendments and corrections to trust provisions. Makes technical amendments and corrections to provisions relating to accounting changes. Makes technical amendments and corrections to tax straddle provisions. Makes technical amendments and corrections to depreciation provisions. Makes technical amendments and corrections to foreign tax provisions. Makes technical amendments and corrections to reporting, penalty, and other provisions. Part B: Amendments Related to Title II of the Act - Makes technical amendments and corrections to provisions relating to the taxation of life insurance. Makes technical amendments and corrections to provisions relating to life insurance reserve. Makes technical amendments and corrections to special rules for insurance companies using the net level reserve method for noncancellable accident and health insurance contracts. Repeals Section 218 of the Tax Reform Act of 1984 relating to underpayment of estimated tax by a corporation. Makes technical amendments and corrections to provisions relating to the definition of life insurance contracts. Makes technical amendments and corrections to provisions relating to the treatment of certain annuity contracts. Makes technical amendments and corrections to provisions relating to the treatment of group-term life insurance purchased for employees. Makes technical amendments to provisions relating to the treatment of certain exchanges of insurance policies. Waives any interest on certain underpayment of tax resulting from provisions of Title II of the Tax Reform Act of 1984. Part C: Amendments Related to Title III of the Act - Makes technical amendments and corrections to provisions relating to the reduction in excise tax on investment income where private foundations meet certain distribution requirements. Makes technical amendments to provisions relating to the conducting of certain games of chance not treated as unrelated trade or business. Part D: Amendments Related to Title IV of the Act - Revises special rules concerning installment payments of estimated tax by nonresident aliens. Makes technical corrections to provisions related to the transfer of property between spouses or incident to divorce. Makes technical corrections to provisions related to the alternative minimum tax. Part E: Amendments Related to Title V of the Act - Makes technical corrections relating to welfare benefit plan provisions. Amends provisions relating to special limitations on reserves for medical benefits or life insurance benefits provided to retired employees. Sets forth certain exceptions and special rules for collective bargaining plans. Makes technical and conforming amendments to pension plan provisions. States that distributions from individual retirement accounts or annuities must begin at age 70 and 1/2. Provides an exemption for pre-1985 accumulations from the penalties on premature distributions received by a five-percent owner of certain retirement plans. Makes technical and conforming amendments to fringe benefit provisions. Sets forth transitional rules for collective bargaining agreements related to cafeteria plans. Sets forth special rules for the treatment of telephone concession service for certain retirees. Makes technical and conforming amendments relating to employee stock ownership plans. Part F: Amendments Related to Title VI of the Act - Authorizes the Secretary of the Treasury to allow an extension of time for the publishing of policy statements for mortgage subsidy bond programs. Revises certain requirements related to qualified mortgage credit certificate programs. Allows an issuer of certain veterans' mortgage bonds to issue advance refunding bonds with respect to such applicable mortgage bonds. Limits the amount of advanced refunding bonds which may be issued. Requires that facilities financed by certain industrial development bonds must be located within the State of issuance of such bonds. Allows an exception for certain facilities where the State will receive a proportionate share of the benefits of such facilities. Clarifies general effective dates for certain provisions relating to tax-exempt bonds. Part G: Miscellaneous Provisions - Makes technical and conforming amendments relating to special rules concerning key employees eligible for a distribution from an employee retirement plan. Revises definitions and makes technical amendments relating to non-exempt foreign trade income. Revises rules concerning the income tax deduction for dividends received for certain distributions from a foreign sales corporation. Makes technical and conforming amendments relating to interest on Domestic International Sales Corporation (DISC) deferred tax liability and the tax exemption of accumulated DISC income. Makes technical amendments relating to the income tax credit for certain uses of gasoline and special fuels. Waives certain tax penalties with respect to any underpayment of estimated tax before April 16, 1985, to the extent such underpayment was created or increased by any provision of the Tax Reform Act of 1984. Amends the definition of "rare disease or condition" for purposes of the income tax credit for the production of orphan drugs. Revises certain requirements with respect to returns and records relating to certain fringe benefits. Repeals requirements that the Joint Committee on Taxation must report annually to the Congress concerning reports of certain refunds and credits. Part H: Effective Date - Provides that any amendments made by this title shall take effect as if included in the Tax Reform Act of 1984, except as otherwise provided by this title. Title II: Technical Corrections in Other Programs Affected by Deficit Reduction Act of 1984 - Part A: Amendments Related to Social Security Act Programs - Clarifies certain exceptions for members of certain religious faiths and the treatment of income of certain church employees for purposes of the social security tax on self-employment income. Makes technical corrections relating to the enrollment and premium penalty under the Medicare working aged provision. Makes specified technical corrections in other provisions related to Social Security Act Program. Part B: Amendments Related to Unemployment Compensation Program - Makes technical corrections in the Federal Unemployment Tax Act. Part C: Amendments Related to Trade and Tariff Programs - Amends the Tariff Schedules of the United States to make technical corrections to telecommunications products classifications and to the Appendix. Amends the Tariff Act of 1930 to make technical corrections to countervailing and antidumping duty provisions. Makes technical amendments to the Trade Act of 1974 and the Tariff Act of 1930. Makes technical amendments to the Trade and Tariff Act of 1984. Makes technical amendments to the Caribbean Basin Economic Recovery Act. Sets forth special effective date provisions for certain articles given duty-free treatment under the Trade and Tariff Act of 1984.
United States · United States Congress · 28 March 1985
Prohibits interstate and foreign commerce in any article of fur derived from an animal trapped in a steel jaw leghold trap. Establishes criminal penalties for violations of this Act. Directs the Secretary of the Interior to reward nongovernment informers for information leading to a conviction under this Act. Makes the Secretary, with the assistance of appropriate Federal or State personnel, responsible for enforcing this Act. Empowers enforcement officials to detain, search, and seize suspected merchandise or documents and to make arrests with and without warrants. Subjects seized merchandise to forfeiture.
United States · United States Congress · 27 February 1985
Hennepin Canal National Heritage Corridor Act - Establishes the Hennepin Canal National Heritage Corridor (the Canal) in the State of Illinois. Authorizes appropriations to the State of Illinois to develop the Canal for public recreational use.
United States · United States Congress · 6 February 1985
Authorizes expenditures by the House Committee on Ways and Means for the first session of the 99th Congress, including the procurement of consultant services.
United States · United States Congress · 30 January 1985
Social Security Reorganization Act of 1985 - Title I: Establishment of the Social Security Administration - Amends title VII (Administration) of the Social Security Act to establish as an independent executive agency a Social Security Administration, headed by a Social Security Board. Provides that it shall be the duty of the Administration to administer the programs established by titles II (Old Age, Survivors and Disability Insurance) and XVI (Supplemental Security Income) of the Social Security Act. Establishes in the Administration a General Counsel and an Inspector General. Requires the Board to study and make recommendations as to the most effective methods of providing economic security through social insurance and as to legislation and matters of administrative policy. Establishes in the Administration: (1) a Commissioner of Social Security; (2) a Deputy Commissioner of Social Security; and (3) an Office of the Beneficiary Ombudsman, to be headed by a Beneficiary Ombudsman who shall represent the interests of beneficiaries under the Old Age, Survivors and Disability Insurance program and the Supplemental Security Income Program within the Administration. Requires the annual report of the Board to include a description of the activities of the Beneficiary Ombudsman. Requires the Board to make annual budgetary recommendations relating to the Administration. Requires that appropriations requests by the Administration for staffing and personnel be based upon a comprehensive workforce plan as established by the Board. Provides for the apportionment of administrative costs. Requires the annual report of the Board to include a section reflecting the use of budget authority provided to the Administration. Requires that authority for automated data processing procurement and facilities construction be provided in the form of contract authority covering the total cost of such acquisitions. Makes amounts needed for the liquidation of contract authority so provided available from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the extent that such amounts are not needed to meet current obligations for benefit payments. Specifies the authorities which are to be delegated to the Board from the Administrator of the General Services Administration. Requires the Board to cause a seal of office to be made and judicial notice taken thereof. Provides for the transfer to the Administration of all functions carried out by the Secretary of Health and Human Services with respect to the programs and activities to be carried out by the Administration under this Act. Abolishes the position of Commissioner of Social Security in the Department of Health and Human Services. Title II: Miscellaneous and Conforming Amendments - Sets forth a contributor and beneficiary bill of rights under which: (1) all individuals are required to be treated fairly by the Board and the Secretary; (2) the Secretary and the Board are prohibited from discriminating on the basis of age, sex, race, creed, color, handicap, national origin, or economic condition; and (3) the Board and the Secretary should maintain prompt, professional, and effective service which is responsive to the community. Requires the Secretary of Health and Human Services and the Board to report to Congress within 120 days after the beginning of each regular session on their administration under this Act. Requires the Secretary to study and make recommendations on the most effective methods of providing economic security and on the administrative policy for the programs which he or she administers. Title III: Effective Dates and Transitional Rules - Sets forth effective date and transitional rule provisions.
United States · United States Congress · 30 January 1985
Directs the President to: (1) secure from the Indochina nations a full accounting of Americans captured or missing as a result of the Vietnam conflict; and (2) work for the release of captive Americans and the return of the remains of those American servicemen and civilians who died in Southeast Asia. Requires the President to submit two reports to Congress on American POW/MIAs in Southeast Asia.
United States · United States Congress · 3 January 1985
Law Enforcement Officers Protection Act of 1985 - Amends the Federal criminal code to define "armor piercing ammunition." Excludes from the definition: (1) shotgun shot composed in order to comply with Federal or State law; (2) frangible projectiles for target shooting; (3) ammunition containing frangible projectiles; and (4) any ammunition or projectiles which the Secretary of the Treasury determines are primarily intended for sporting purposes. Makes it unlawful for any person to manufacture or import armor piercing ammunition. Allows: (1) the manufacture or importation of armor piercing ammunition for the use of the United States or any State or local government; (2) manufacture for the sole purpose of exportation; or (3) manufacture or importation for the purposes of testing and experimentation authorized by the Secretary. Establishes a licensing fee of $1,000 per year for manufacturers and importers of armor piercing ammunition. Authorizes the Secretary to revoke a license from a dealer for violating this Act.
![Official portrait of Rep. Rostenkowski, Dan [D-IL-8]](https://www.congress.gov/img/member/r000458_200.jpg)