United States · United States Congress · 8 May 1986
Self-Insurance Enhancement Act of 1986 - Title I: Expansion of Risk Retention Coverage - Amends the Product Liability Risk Retention Act of 1981 to exempt risk retention groups and purchasing groups (businesses which organize to purchase personal risk and liability insurance on a group basis) from State laws which prohibit, regulate, or otherwise discriminate against such groups. Requires such groups' members to be similarly situated with respect to their exposure to the risk of liability. Permits risk retention groups which are not chartered, licensed, or certified as liability insurance companies by any State to continue to provide insurance to cover product liability or completed operations liability as defined before the enactment of this Act. Requires risk retention groups to comply with State trade practices laws. Allows the insurance commissioner of any State in which a risk retention group is doing business to examine the group's financial condition if the commissioner of the jurisdiction in which the group is chartered has not begun such an examination. Subjects such groups to State no-fault automobile insurance requirements. Limits the authority to provide insurance under such Act to liability insurance. Requires a specified notice on all risk retention group policies. Title II: Amendments of Internal Revenue Code of 1954 - Amends the Internal Revenue Code to allow an eligible taxpayer a deduction for contributions during the taxable year made to a qualified liability trust. Defines eligible taxpayer as a business not covered by any liability policy, whose liability insurance was cancelled, or a business unable to obtain liability insurance. Provides that the qualified liability trust shall pay liability claims against the taxpayer, and no part of the corpus or income of the trust shall be used for, or diverted to, any purpose other than the payment of claims or related expenses. Provides that the liability trust shall be exempt from taxation. Imposes a penalty tax on any distributions from the trust to the taxpayer and includes such amounts in the income of the taxpayer where the trust is required to distribute amounts in excess of its reasonably anticipated needs. Provides an exception to the restriction of making consolidated tax returns for companies which provide insurance, reinsurance, or administrative services for risk retention groups or purchasing groups.
United States · United States Congress · 7 May 1986
Product Liability Reform Act of 1986 - Preempts inconsistent State laws. Declares that the provisions of this Act are inapplicable in certain actions under the Atomic Energy Act of 1954. Bases liability for damages in product liability actions on whether: (1) the design, production, distribution, or sale of the product was negligent; or (2) the product was defective, and such defect rendered the product unreasonably dangerous. Includes among the applicable defenses in such actions proof that: (1) the defect was the subject of an adequate warning; (2) the defect was apparent to a reasonable person, or the subject of common knowledge; (3) the injury resulted from an unreasonable or unforeseeable use or alteration of the product; and (4) at the time the product was made, the ability to discover and eliminate the defect was unavailable. States that joint and several liability may not be applied to any product liability action subject to this Act (unless persons acting in concert were the proximate cause of the injury). Limits the amount of damages for noneconomic losses to $100,000. Requires that damage awards for future economic losses exceeding $100,000 be made by periodic payments. Requires that damage awards be offset by amounts received as compensation for the same injury. Establishes a contingency fee schedule for plaintiffs' attorneys. Directs the Attorney General to provide recommendations regarding the creation, adoption, and use of alternative dispute resolution techniques.
United States · United States Congress · 15 April 1986
Amends the Bank Secrecy Act to prohibit any person from: (1) causing or attempting to cause a domestic financial institution to file a required coin or currency transaction report containing a material omission of misstatement of fact or to fail to file a required report; or (2) structuring or assisting in structuring a transaction for the purpose of evading reporting requirements. Authorizes the seizure and forfeiture to the United States of: (1) any transported monetary instrument or any interest in other property (including any deposit in a financial institution) traceable to such instrument when a required report on such instrument has not been filed or contains a material omission or misstatement; and (2) any U.S. coin or currency or any interest in other property traceable to such coin or currency involved in a transaction for which a required report has not been filed. Provides that no property or interest therein shall be forfeited if the owner is a bona fide purchaser for value with no knowledge of the reporting requirement violation. Amends the Internal Revenue Code to provide for the enforcement of such seizure and forfeiture authority by internal revenue enforcement officers. Authorizes the Secretary of the Treasury to impose a civil penalty on a person (excluding a domestic financial institution examined by a Federal bank supervisory agency or a financial institution regulated by the Securities and Exchange Commission) who willfully violates a coin or currency transaction reporting requirement. Limits the penalty to the amount of the coin or currency involved reduced by any amount already forfeited.
United States · United States Congress · 15 April 1986
Business Alternative Minimum Tax Act of 1986 - Title I: Business Alternative Minimum Tax - Amends the Internal Revenue Code to impose a business alternative minimum tax equal to seven percent of the sum of: (1) the net business receipts of the taxpayer for the taxable year; plus (2) the customs value plus customs duties and any other duties, or the fair market value, of property imported into the United States. Permits the taxpayer a credit against the business alternative minimum tax equal to the sum of the tax benefit credit carryforwards carried to such taxable year, plus the amount of the current year tax benefit credit. Defines "current year tax benefit credit." Provides rules for calculating the carryforward of unused tax benefit credits. Defines "net business receipts," "business receipts," and "business expenses." Provides special rules for determining the business receipts and business expenses of the taxpayer. Exempts from the business alternative minimum tax: (1) taxpayers whose business receipts for the taxable year do not exceed $10,000,000; (2) governmental entities; and (3) tax-exempt organizations. Requires that a return for the business alternative minimum tax be filed no later than the time for filing the income tax return. Requires taxpayers to make estimated payments of the business alternative minimum tax. Makes individuals, rather than partnership entities, liable for the business alternative minimum tax. Makes individual shareholders of an S corporation liable for the business alternative minimum tax in their individual or separate capacities. Requires the shareholder to take into account the pro rata share of the net business receipts of the S corporation in determining the business alternative minimum tax. Repeals the corporate minimum tax. Title II: Recovery of Capital Cost Recovery Provisions - Makes adjustments to the accelerated cost recovery system percentages for the various classes of property. Terminates the regular investment tax credit percentage for any property placed in service after December 31, 1985. Provides an exception to the repeal of the regular investment tax credit for qualified progress expenditures for periods before January 1, 1986. Provides special rules pertaining to the regular investment tax credit with respect to public utility property.
United States · United States Congress · 8 April 1986
Establishes the Insurance Availability Crisis Commission of 1986 to: (1) coordinate the intergovernmental examination of the tort law system and its relationship with insurance availability and cost; (2) bring representatives of industry, government, and consumers together to perform an examination of the issue of insurance availability; (3) make recommendations for reform of the tort system and insurance industry practices; and (4) raise funds to cover the costs of the Commission's activities. Directs the Commission to report its findings and recommendations to the President, the Congress, and the executive officer of each State. Provides for the Commission's termination upon the transmission of such report. Authorizes appropriations.
United States · United States Congress · 20 March 1986
Reward Incentive Granted to Honest Taxpayers Act - Amends the Internal Revenue Code to establish the Tax Amnesty Revenues Trust Fund in the Treasury. Transfers to the Trust Fund amounts received pursuant to any Federal tax amnesty program. Directs the Secretary of the Treasury to pay individuals from the Tax Amnesty Revenues Trust Fund a portion of any audit adjustments made by the Internal Revenue Service. Prohibits such payments where any part of the underpayment of tax is due to intentional disregard of rules or regulations or fraud. Requires all such payments to be paid only out of the Trust Fund.
United States · United States Congress · 11 March 1986
Amends the Tariff Schedules of the United States to suspend, through December 31, 1990, the duty on mixtures of mancozeb, dinocap, stabilizer, and application adjuvants.
United States · United States Congress · 11 March 1986
Amends the Tariff Schedules of the United States to suspend, through December 31, 1990, the duty on mixtures of maneb, zineb, mancozeb, metiram, stabilizer, and application adjuvants.
United States · United States Congress · 11 March 1986
Amends the Tariff Schedules of the United States to provide, through December 31, 1990, duty-free treatment of 1,1-bis(4-chlorophenyl)-2,2,2-trichloroethanol (dicofol) and application adjuvants.
United States · United States Congress · 11 March 1986
Amends the Tariff Schedules of the United States to suspend, through December 31, 1990, the duty on cross-linked polyvinyl benzyltrimethylammonium chloride (cholestyramine resin USP).
United States · United States Congress · 11 March 1986
Amends the Tariff Schedules of the United States to suspend, through December 31, 1990, the duties on mixtures of 2,4,-dinitro-6-octyl phenyl crotonate, 2,6-dinitro-4-octyl phenyl crotonate and nitrooctyl phenols (dinocap) and mixtures of dinocap and application adjuvants.
United States · United States Congress · 6 February 1986
Declares that each standing committee of the House of Representatives may, within two days of adoption of this resolution, submit to the House Budget Committee alternatives to the President's sequestration order under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act), insofar as such order affects laws within the jurisdiction of the committee. Requires the Budget Committee, within four days of adoption of this resolution, to report a resolution containing instructions to committees sufficient to achieve the total level of deficit reduction contained in the President's sequestration order for FY 1986. Provides that such instructions shall require that each committee (and each subcommittee of the Committee on Appropriations) achieve the same level of deficit reduction with respect to programs under its jurisdiction as would have been saved under the President's order. Requires committees to submit recommendations to the Budget Committee by February 21, 1986, sufficient to meet deficit reductions. Requires the Budget Committee to promptly report a reconciliation bill carrying out such recommendations. Authorizes the Budget Committee to include legislative language within the jurisdiction of any noncomplying committee. Requires such reconciliation bill to include a provision which states that if it is enacted on or before March 1, 1986, then the sequestration order for FY 1986 is null and void. Establishes procedures for floor consideration of such reconciliation bill, including limitation on debates and amendments.
United States · United States Congress · 5 February 1986
Requires the National Aeronautics and Space Administration to install a plaque on the first permanent manned space station in honor of the space shuttle Challenger's crew.
United States · United States Congress · 29 January 1986
Authorizes the L-5 Society to establish a memorial on Federal land in the District of Columbia or its environs to honor America's astronauts, especially those astronauts who gave their lives in pursuit of knowledge for all mankind. Requires the L-5 Society to select, subject to the approval of the Commission of Fine Arts and the National Capital Planning Commission, the site, design, and plans for the memorial. Terminates the authority to establish the memorial if its construction is not begun within five years with non-Federal funds sufficient to ensure its completion.
United States · United States Congress · 27 January 1986
Amends the Internal Revenue Code to provide that citizens or residents of the United States who are in a foreign country in violation of an executive order shall not be permitted to exclude from income the foreign earned income from sources within such country or the housing expenses allocable for housing in such country.
United States · United States Congress · 9 December 1985
Tax Fairness and Reform Act of 1985 - Redesignates the Internal Revenue Code of 1954 as the Internal Revenue Code of 1985. Title I: Individual Income Tax Provisions- Subtitle A: Rate Reductions; Increase in Standard Deduction and Personal Exemptions - Reduces the tax rates and consolidates the tax brackets into four brackets, consisting of a 15 percent, a 25 percent, a 35 percent, and a 37 percent tax bracket. Requires the Secretary of the Treasury (Secretary) to prescribe tax tables annually which will provide for a cost-of-living adjustment to prevent any tax increases resulting from inflation. Increases the amounts of the standard deduction to: (1) $4,600 for joint returns or surviving spouses; (2) $4,026 for head of households; (3) $2,828 for single individuals; and (4) $2,300 for married individuals filing separate returns. Provides for an annual inflation adjustment to be made to the standard deduction. Provides certain rules for the standard deduction. Allows an additional amount for the aged and the blind. Raises the personal exemption amount to $2,000. Provides for an annual inflation adjustment for years after 1986 for the amount of the personal exemption. Provides that the exemption deduction shall not reduce tax by an amount exceeding 25 percent of the exemption amount. Phases out the exemption for taxpayers whose taxable income exceeds $100,000. Makes certain technical amendments. Subtitle B: Provisions Related to Tax Credits - Increases the earned income credit percentage to 14 percent and the maximum dollar limitation of earned income to which the percentage applies to $7,143. Increases the income level at which the earned income credit is phased out. Repeals the tax credit for contributions to candidates for public office. Makes certain other technical amendments pertaining to various tax credits. Subtitle C: Provisions Related to Exclusions - Allows a $5,000 limit on the exclusion of amounts received by an employee for dependent care assistance. Requires unemployment compensation to be included in the gross income of an individual. Provides that gross income does not include any amount received as a qualified scholarship grant by an individual who is a candidate for a degree at an educational organization. Sets forth other rules and limitations relating to scholarship grants and tuition reduction arrangements. Provides that employee gifts are not excludible from gross income. Subtitle D: Provisions Related to Deductions - Repeals the deduction for two-earner married couples. Provides that miscellaneous itemized deductions shall be allowed for the taxable year only to the extent that the aggregate of such deductions exceeds one percent of adjusted gross income. Permits the costs paid in connection with the administration of an estate or trust to be allowed as a deduction in computing the adjusted gross income of the estate or trust. Provides that nonreimbursed business expenses of employees are subject to the one percent floor on deductions. Makes permanent the charitable deduction for individuals who do not itemize deductions. Repeals the deduction for adoption expenses. Provides certain dollar limitations on the amount of consumer interest which may be deducted during the taxable year. Prohibits the deduction of any consumer interest on a loan incurred or continued for purchase of a foreign car. Repeals the deduction for State and local sales taxes and personal property taxes. Provides for an overall limitation on the aggregate amount of itemized deductions other than deductions for charitable contributions and qualified residence interest. Subtitle E: Miscellaneous Provisions - Repeals the income averaging provisions for figuring tax liability. Imposes certain additional restrictions and limitations on the allowance of deductions for meals, travel, and entertainment business expenses. Modifies the rules relating to the treatment of hobby loss deductions. Allows the deduction for mortgage interest and real property taxes in those cases where a parsonage allowance or military housing allowance is received. Requires certain information reporting with respect to income taxes and real and personal property taxes. Repeals the checkoff for the presidential election campaign fund contribution. Subtitle F: Effective Dates - Sets forth the effective dates for the provisions of this title. Title II: Capital Income Provisions - Subtitle A: Depreciation Provisions - Repeals the accelerated cost recovery system of depreciation and replaces such system with the incentive depreciation system for tangible property. Sets forth various rules and procedures for the operation of the incentive depreciation system. Modifies the recapture of depreciation rules relating to the gain from disposition of certain depreciable realty. Sets forth the effective dates for the new depreciation provisions, and various transitional rules. Subtitle B: Regular Investment Tax Credit - Provides that the regular investment tax credit percentage shall be five percent and shall apply only to qualified domestically produced property. Sets forth certain exceptions to this requirement. Subtitle C: Changes in Certain Rapid Amortization Provisions - Repeals the five-year amortization period for trademark and trade name expenditures. Makes permanent the depreciation deduction for expenditures to rehabilitate low-income housing. Increases to $30,000 the amount of expenditures per dwelling unit which may be taken into account in the depreciation of the expenses over the 60-month period. Subtitle D: Other Capital Related Costs - Extends the termination of the tax credit for increasing research activities for three years. Reduces the amount of the credit to 20 percent. Reduces to 20 percent the research credit for basic research payments to colleges, universities, and certain research organizations. Sets forth certain definitions and special rules relating to payments for basic research. Makes modifications in the rules concerning the investment tax credit for rehabilitation expenditures. Subtitle E: Capital Gains and Losses - Retains the maximum 20 percent capital gains tax. Retains the maximum 32 percent tax on commodity future contract gains. Establishes provisions for the indexing of certain assets for purposes of determining gain or loss. Sets forth such procedures. Repeals the provisions relating to the disposal of coal or domestic iron ore with a retained economic interest therein. Subtitle F: Provisions Relating to Oil and Gas - Modifies the percentage depletion percentages for independent producers and royalty owners. Disallows the use of percentage depletion with respect to lease bonus amounts. Phases out the allowance of percentage depletion deductions with respect to geothermal deposits. Allows an exemption from the windfall profits tax for certain crude oil exchanged for residential fuel oil. Makes permanent the reduced excise tax rate on fuel used by taxicabs for providing taxicab services. Subtitle G: Treatment of Hard Minerals - Reduces the percentage depletion deduction with respect to certain hard minerals. Sets forth rules pertaining to the tax treatment of development and mining exploration expenditures. Title III: Corporate Provisions - Subtitle A: Corporate Rate Reductions - Reduces the tax rates on corporate income and establishes three tax brackets ranging from 15 percent to 33 percent, with the middle bracket being 25 percent. Requires an additional amount of tax where the taxable income of the corporation is in excess of $100,000. Provides for a phasein of the reduction in the tax rates during the period from 1986 through 1990. Provides for an alternative tax for corporations which have a net capital gain for any taxable year. Computes this tax by computing the sum of the tax on the taxable income reduced by the net capital gain, plus 28 percent of the pre-1986 net capital gain, plus the applicable percentage of timber, iron, or coal capital gain, plus 33 percent of the net capital gains. Reduces the dividend received deduction over a period of years from 1986 through 1991. Reduces the dividend received deduction percentage over this period from 85 percent to 75 percent. Repeals the partial exclusion of dividends received by individuals. Prohibits the deduction of expenses incurred by a corporation in connection with the redemption of its stock. Subtitle B: Limitation on Net Operating Loss Carryforward and Excess Credit Carryforwards - Provides a limitation of net operating loss carryforwards. Sets forth rules and procedures for computing such limitation on net operating loss carryforwards. Establishes special limitation on certain excess credits for certain taxable years. Subtitle C: Recognition of Gain and Loss on Distributions of Property in Liquidation - Requires the recognition of gain or loss to a corporation on the distribution of property in complete liquidation as if such property were sold to the distributee at fair market value except for certain corporate liquidations. Provides certain exceptions to this rule of recognition of gain or loss. Provides for the nonrecognition of gain or loss on the sale or exchange of property by a corporation in certain types of liquidation proceedings. Sets forth rules and exceptions for such nonrecognition treatment. Provides certain technical amendments regarding the liquidation provisions. Sets forth effective dates for these provisions relating to gain or loss recognition in liquidations. Subtitle D: Real Estate Investment Trusts - Makes modifications in the rules affecting a real estate investment trust's (REIT) earnings and profits under the depreciation provisions. Exempts REITs from the special rules relating to corporate tax preference items. Expands the types of sales which may be made by a REIT without the imposition of the 100 percent prohibited transaction tax. Modifies the rule relating to the exclusion of amounts received with respect to rental property that a REIT operates other than through an independent contractor. Makes changes in the standards for disqualifications of a REIT as a personal holding company. Permits a REIT to have a wholly owned subsidiary. Modifies the present rules relating to REITs which disqualify income in the form of rents or interests based on net income or profits of the tenant or borrower. Makes changes in the rule regarding the payment of capital gain dividends by REITs that have net operating loss carryovers from prior years. Permits net losses from prohibited transactions to be taken into account in computing a REITs taxable income. Requires the special notice for capital gains dividends to be mailed to the Secretary within 45 days after the close of the REITs taxable year. Makes modifications in the tax penalty imposed on a REIT involved in making a deficiency dividend distribution due to an adjustment of the REITs taxable income. Excludes from the REIT distribution requirements non-cash income recognized by a REIT under certain deferred payment and installment sales rules added by the Deficit Reduction Act of 1984. Excludes from the REIT distribution requirements the income recognized by a REIT upon a determination that an exchange of real property failed to qualify for nonrecognition of gain as like-kind property. Title IV: Tax Shelters - Extends the at-risk limitation rules to real property. Limits the amount of the deduction for investment interest for taxpayers, other than corporations, to $10,000 plus the net investment income for the taxable year. Permits the carryover of disallowed investment interest to succeeding taxable years. Sets forth special rules and definitions relating to the limitation on the deduction of investment interest. Title V: Alternative Minimum Tax - Subtitle A: General Provisions - Makes modifications in the alternative minimum tax provisions of the Code. Provides that the alternative minimum tax is determined to be the excess of the tentative minimum tax amount over the regular tax for the taxable year. Computes the tentative minimum tax by multiplying the alternative minimum taxable income as exceeds the exemption amount by 22.5 percent (20 percent in the case of a corporation), reduced by the alternative minimum tax foreign tax credit. Sets the exemption amounts for taxpayers, other than corporat: ions, at: (1) $30,000 for a joint return; (2) $25,000 for singles and surviving spouses; and (3) $15,000 for married people filing separately. Reduces the exemption for taxpayers with a taxable income in excess of $175,000. Allows corporations an exemption amount of $40,000. Sets forth special rules and definitions relating to the alternative minimum tax. Subtitle B: Treatment of Existing Carryforwards of Steel Companies - Provides an effective 15-year carryback of existing unused business credit carryforwards of steel companies. Provides that the existing carryforwards of qualified corporations may offset 75 percent of the minimum tax of the corporation. Establishes a $300,000,000 limit on the carryforward amounts which may be used. Sets forth certain definitions. Title VI: Foreign Provisions - Subtitle A: Modification in Regulations Allocating Research and Experimental Expenditures - Establishes a two year modification in regulations providing for allocation of research and experimental expenditures. Subtitle B: Possessions Tax Credit Changes - Makes certain modifications in the possession tax credit provisions. Subtitle C: Tax Treatment of Possessions - Part I: Permits Guam, American Samoa, and the Northern Mariana Islands to enact revenue laws. Requires the existence of certain implementing agreements providing for measures which alleviate certain problems relating to tax administration. Excludes from the gross income of a bona fide resident of Guam, American Samoa, and the Northern Mariana Islands the income derived from or effectively connected with such possessions. Modifies the definition of controlled foreign corporation for purposes of corporations organized in Guam, American Samoa, or the Northern Mariana Islands. Modifies the withholding requirements with respect to a corporation created or organized in Guam, American Samoa, the Northern Mariana Islands, or the Virgin Islands. Part II: Treatment of the Virgin Islands - Provides for the coordination of the United States and the Virgin Islands individual income tax provisions. Permits Virgin Islands corporations to use the possession tax credit. Part III: Cover Over of Income Taxes - Provides that the net collection of taxes for each taxable year with respect to certain individuals shall be covered into the Treasury of the possession (Guam, American Samoa, the Northern Mariana Islands, or the Virgin Islands) of which such individual is a bona fide resident. Provides for transfers of other amounts to these possessions with respect to military personnel and certain employees of the United States. Part IV: Effective Date - Sets forth the effective date for these provisions relating to Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands. Subtitle D: Excise Tax on Certain Broadcast for Olympic Events - Imposes an excise tax of ten percent on amounts paid for United States television and radio broadcast rights for Olympic events. Sets forth special rules and definitions pertaining to this special excise tax. Establishes within the Treasury the United States Olympic Trust Fund. Provides that the amounts collected from the special excise tax, less any administrative expenses relating to such tax, shall be transferred to the Trust Fund. Subtitle E: Excise Tax on Insurance Premiums Paid to Foreign Insurers - Imposes a four percent excise tax on certain insurance policies, indemnity bonds, annuity contracts or policies of reinsurance issued by foreign insurer. Provides for the withholding of such excise tax by the insured or withholding agent on policies issued by the insured or withholding agent on policies issued by a foreign insurers. Sets forth certain definitions and special rules. Subtitle F: Treatment of Certain Employees of Panama Canal Commission - Provides that nothing in the Panama Canal Treaty shall be construed as exempting any citizen or resident of the United States from income tax of the United States. Permits the exclusion of certain allowances by employees of the Panama Canal Commission stationed in Panama. Title VII: Tax-Exempt Bonds - Modifies the definition of arbitrage bonds with respect to the acquisition of annuity contracts. Provides for the treatment of tax increment bonds issued before January 1, 1986. Title VIII: Financial Institutions - Prohibits large banks (banks where the average adjusted bases of all assets of such bank exceeds $500,000,000) from taking the deduction for additions to a reserve for bad debts. Sets forth special rules and definitions. Requires the pro rata allocation of interest expenses of financial institutions with respect to the interest expenses which are allocable to tax-exempt interest. Sets forth certain definitions and special rules. Terminates the special ten-year carryback rules with respect to certain financial institutions on January 1, 1986. Repeals the special reorganization rules with respect to financial institutions. Provides that losses resulting from the loss on an individual's deposit in a qualified financial institution as a result of bankruptcy or insolvency of such institution shall be treated as a casualty loss. Title IX: Accounting Provisions - Subtitle A: General Provisions - Permits an eligible small business to use the simplified dollar-value method of pricing inventories for purposes of the LIFO method of accounting. Sets forth special rules and definitions with respect to the simplified dollar-value method of pricing. Requires that the taxable income of a "C corporation" or a partnership which has a "C corporation" partner must be computed under an accounting method other than the cash receipts and disbursement method of accounting. Sets forth certain exceptions to this rule and provides special rules and definitions. Requires the recognition of gain on pledges of certain installment obligations. Excepts certain sales of particular capital assets. Provides special rules and definitions. Requires income related to a long-term contract to be determined under the percentage of completion method of accounting. Requires, upon completion of the contract, the taxpayer to pay (or be entitled to receive) interest computed under the "look-back" method. Establishes the "look-back" method for computing the interest costs. Sets forth certain definitions, exceptions, and special rules. Requires any taxpayer who produces real or personal property to capitalize the following cost: (1) the direct cost of such production; and (2) such production's proper share of those indirect costs (including taxes), part or all of which are assignable to such production. Provides exceptions to the general rule of capitalization of costs for certain activities. Sets forth certain definitions and special rules relating to capitalization of production costs. Repeals the reserve for bad debt deduction of taxpayers other than financial institutions. Restricts the vacation-pay deduction for accrual method taxpayers by requiring the amounts to be paid within the taxable year or within eight and one-half months following the close of the taxable year. Includes in the gross income of the taxpayer amounts contributed in aid of construction. Subtitle B: Provisions Relating to Timber - Permits qualified timber producers to elect to expense (and claim as a deduction during the taxable year) 50 percent of the qualified timber preproductive period expenses paid or incurred during the taxable year. Defines "qualified timber preproductive expense" and "qualified timber producer." Provides certain depreciation rules relating to such taxpayers making this election. Provides that the capital gains tax treatment for timber is not available to corporate taxpayers. Subtitle C: Special Provisions Relating to Agriculture - Repeals the special tax treatment of expenditures for fertilizer and clearing land. Limits the expensing of soil and water conservation expenditures by providing that such expenditures must be consistent with soil conservation plans. Provides that gain from the disposition of converted wetland or highly erodible cropland shall be treated as ordinary income. Requires any loss recognized on the disposition of converted wetland or highly erodible cropland to be treated as long-term capital loss. Sets forth definitions and special rules. Provides rules for the netting of gains and losses by cooperatives among one or more of the allocation units of the cooperative. Sets forth various requirements with respect to such netting. Provides that certain plant variety protection certificates shall be treated as patents for purposes of the taxation on the sale or exchange of patents. Title X: Insurance Products and Companies - Part I: Policyholder Issues - Repeals the exclusion of interest on the installment payments of life insurance proceeds. Provides that the deduction for nonbusiness casualty losses covered by insurance is allowable only if a timely insurance claim with respect to such loss is filed. Provides that the exclusion from income of amounts received with respect to structured settlements is limited to cases involving physical injury. Part II: Life Insurance Companies - Repeals the special life insurance company deduction. Repeals the tax-exempt status for certain organizations providing commercial-type insurance coverage. Provides certain exceptions for activities attributable to high-risk and small groups. Requires the Secretary to conduct a study of fraternal beneficiary associations and report the findings to certain congressional committees. Permits the operations loss deduction of insolvent life insurance companies to offset the distributions from the policyholders surplus account. Part III: Property and Casualty Insurance Companies - Requires that 25 percent of unearned premium reserves be included in income each taxable year. Repeals the provisions allowing deductions for amounts allocated to the protection against loss accounts. Provides that amounts in such accounts shall be includible in income not less rapidly than ratably over a five-year period. Repeals the tax-exempt status of insurance companies or associations other than life or marine if the net written premiums for the taxable year exceed $500,000. Repeals the cap on tax of certain mutual insurance companies where the income is less than $12,000. Revises the alternative tax for certain small companies. Repeals the special small company deduction in computing statutory underwriting income or loss. Provides that the special determination of tentative life insurance company taxable income shall apply to corporations in Virginia and Louisiana. Establishes an advisory commission to conduct a study which will comprehensively analyze all aspects of the taxation of property and casualty insurance companies. Requires the results of such study to be submitted to selected congressional committees and the Secretary no later than March 31, 1988. Title XI: Pensions and Deferred Compensation - Subtitle A: Individual Retirement Accounts - Permits a maximum deduction of $2,000 contributed to an individual retirement account established for the benefit of a spouse. Provides that the $2,000 maximum deduction shall be phased-in over a period of five years. Permits nondeductible contributions to individual retirement plans. Limits the amount of such nondeductible contributions to $2,000 per year maximum. Phases in the maximum amount of the nondeductible contribution limit over a period of five years. Makes certain modifications in the rules relating to the tax treatment of distributions from individual retirement accounts. Requires that certain information be maintained with respect to designated nondeductible contributions to individual retirement accounts and individual retirement annuities. Subtitle B: Cash and Deferred Arrangements - Provides for the coordination of the individual retirement account deduction with other elective deferral provisions of the Code. Provides a $12,000 limit on the tax-free deferral with respect to elective qualified cash or deferred arrangements. Sets forth certain rules with respect to the elective deferrals. Provides that tax-exempt entities are eligible for having certain qualified cash or deferred arrangement plans. Prohibits the Federal Government or State or local governments from maintaining a qualified cash or deferred arrangement. Provides that if any plan amendments are required as a result of provisions of this Act, such amendment shall not be required to be made before the first plan year beginning on or after January 1, 1988. Subtitle C: Basis Recovery Rules for Qualified Pension Plans - Repeals the special rules for employees' annuities where the employee's contributions were recoverable in three years. Provides that amounts not received as annuities are allocated first to income. Subtitle D: Repeal of Exclusion for Cost of Group-Life Insurance - Repeals the exclusion from income for an employee of the cost of group-life insurance purchased by the employer. Subtitle E: Tax Treatment of Parsonage Allowances and Military Housing Allowances - Permits the deduction of mortgage interest and real property taxes by the taxpayer even though a parsonage allowance or military housing allowance has been received. Subtitle F: Additional Tax on Early Withdrawal From Pension Plans - Provides for a ten-percent additional tax on early distributions from certain qualified retirement plans. Exempts certain types of distributions from the ten-percent additional tax. Subtitle G: Treatment of Certain Full-Time Life Insurance Salesmen - Provides that a full-time life insurance salesman shall be considered an employee for purpose of the tax exclusion rules relating to employer cafeteria plans. Subtitle H: Changes Relating to Employee Stock Ownership Plans - Repeals the employee stock ownership tax credit. Terminates the exclusion from the income of certain taxpayers the interest received on loans used to acquire employer securities. Terminates the dividend paid deduction. Terminates the provision for the nonrecognition of gain on the sales of stock to an employee stock ownership plan. Terminates the provision permitting the transfer of certain estate tax liability to an employee stock ownership plan with respect to employer securities transferred to the plan or a worker-owned cooperative. Makes certain changes in the qualification requirements and other requirements with respect to employee stock ownership plans. Provides a special rule for eligible worker-owned cooperatives with respect to the nonrecognition of gain on the sale of securities to such cooperative. Subtitle I: Three Year Extension of the Exclusion for Educational Assistance - Extends for three years, until December 31, 1988, the exclusion from the gross income of an employee amounts paid or expenses incurred by an employer to provide educational assistance to the employee. Title XII: Repeal of Generation-Skipping Tax - Repeals the provisions of the Code providing for the tax on generation-skipping transfers. Provides for a credit or refund of any generation-skipping taxes which have been paid. Waives the statute of limitations with respect to refunds or credits for such taxes. Title XIII: Compliance and Tax Administration - Part I: Penalty for Failure to File Information Returns and Statements - Provides penalties for: (1) failure to file certain information returns; (2) failure to furnish certain payee statements; and (3) failure to include certain information on certain returns and statements. Establishes certain waiver provisions, definitions, and special rules relating to the filing of information returns and statements. Increases the penalty for failure to pay tax in certain cases from 0.5 percent per month to one percent per month. Modifies the provisions relating to the tax penalty in instances involving negligence and fraud. Part II: Estimated Tax Payments by Individuals - Increases the percentage tests for liability of taxpayers to pay estimated tax payments from 80 percent to 90 percent of the tax shown on the return for the taxable year. Part III: Provisions Relating to Attorneys' Fees and Exhaustion of Administrative Remedies - Extends the provisions permitting the awarding of attorneys' fees to the prevailing party in certain tax cases. Provides that Internal Revenue Service employees may be personally liable for court costs in certain cases. Requires the Secretary to report annually for a certain period of time to select congressional committees certain information relating to the awarding of court costs and attorneys' fees in tax cases. Part IV: Tax Administration Provisions - Grants the Secretary the authority to rescind a notice of deficiency mailed to the taxpayer with the consent of the taxpayer. Permits the Secretary to abate interest assessments due to errors or delays by the Internal Revenue Service. Suspends the compounding of interest charges where the interest charges on a deficiency has been suspended. Provides that certain service-connected disability payments are exempt from levy for tax payment. Increases to $100,000 the value of personal property subject to certain listing and notice procedures. Provides that the recordkeeping requirements for the use of an automobile by an agent of the Internal Revenue Service shall be the same as the use of an automobile by an officer of any other law enforcement agency. Part V: Interest Provisions - Establishes rules concerning the differenterial interest rate. Provides that the interest charges on any accumulated earnings tax shall begin to accrue on the date the return is due. Part VI: Modification of Withholding Allowances - Directs the Secretary to modify the withholding schedules to reflect the tax rate changes in this Act. Prohibits certain decreases in the withholding of taxes. Part VII: Information Reporting Provisions - Requires the reporting of certain information with respect to real estate transactions. Requires taxpayers to report on their returns amounts of tax-exempt interest received or accrued during the taxable year. Part VIII: Report on Return-Free System - Requires the Secretary to prepare a report on a return-free system for the Federal income tax of individuals which would include: (1) the identification of classes of individuals who would be permitted to use a return-free system; (2) how such system would be phased in; (3) what additional resources the IRS would need to carryout such a system; and (4) the type of changes to the Internal Revenue Code which would inhibit or enhance the use of such system. Part IX: Certain Diesel Fuel Taxes May be Imposed on Sales to Retailers - Provides that the excise tax on diesel fuel for highway vehicles may be imposed on the sale to the retailer by the wholesaler (jobber) or by the manufacturer where the sale is direct to the retailer. Title XIV: Miscellaneous Provisions - Excludes from income amounts paid to the foster parent for caring for a qualified foster child in the foster parent's home. Provides that the tax relief provisions applicable with respect to Vietnam MIAs (and their spouses) that expired after 1982 are retroactively reinstated and made permanent. Provides that in the case of any tax-exempt organization, the term unrelated trade or business does not include any trade or business of such organization that consists of exchanging names and addresses of donors to (or members of) such organization with another such tax-exempt organization. Provides that the term unrelated trade or business of a tax-exempt organization does not include activities of such organization relating to the distribution of low cost articles incidental to the solicitation of charitable contributions. Permits a housing cooperative, where the cooperative charges such tenant-stockholder with a portion of the cooperative's interest and taxes in a manner that reasonably reflects the cost to the cooperative of the interest and taxes attributable to such tenant-stockholder's dwelling unit, to make an election whereby the share of the cooperative's interest and taxes that each tenant-stockholder is permitted to deduct would be the amounts that were so separately allocated and charged. Provides that certain royalties relating to computer software are not treated as personal holding company income, and therefore not subject to the additional tax on personal holding company income, if the recipient: (1) is actively engaged in the trade or business of producing, developing, or manufacturing computer software; (2) derives more than half of its income from software royalties; (3) incurs substantial trade or business expenses, or research and development expenses; and (4) distributes most of its passive income other than software royalties. Provides special rules with respect to taxpayers who are members of an affiliated group and receive royalties with respect to the licensing of computer software. Allows certain securities dealers to exclude from personal holding company income certain income received on securities or money market instruments held in inventory if the taxpayer: (1) derives at least 50 percent of its income from the active conduct of the business of dealing in securities; (2) distributes most of its passive income not derived from the business of dealing in securities; and (3) incurs substantial trade or business expenses relating to the business of dealing in securities. Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act with respect to adoption assistance agreements and "nonrecurring adoption expenses" relating to the adoption of special needs children.
United States · United States Congress · 21 November 1985
Precursor and Essential Chemicals Review Act of 1985 - Directs the Attorney General to study and recommend methods to control the diversion of legitimate precursor and essential chemicals to the production of illegal drugs. Requires the Attorney General to report all findings to the Congress.
United States · United States Congress · 19 November 1985
Expresses the sense of the Congress that: (1) the Congress and the President welcome Canada's interest in negotiating to remove all trade barriers between the United States and Canada; (2) bilateral negotiations could provide opportunities for both countries to facilitate trade and investment flows; (3) the primary goal of the negotiations is to achieve the broadest possible trade agreement; (4) the Congress intends to participate fully in the negotiating process; (5) such negotiations should begin immediately and conclude, if possible, by June 30, 1987; (6) effective dispute settlement procedures be an important part of any bilateral free trade agreement; and (7) the trade ministers of both countries should work to resolve outstanding trade disputes.
United States · United States Congress · 7 November 1985
Directs the Secretary of Commerce to adjust census figures as necessary so that illegal aliens shall not be counted for purposes of the apportionment of Representatives in the Congress.
United States · United States Congress · 6 November 1985
Social Security Trust Fund Protection Act of 1985 - Directs the Secretary of the Treasury to issue public debt obligations to the Federal Old-Age and Survivors Insurance Trust Fund, Federal Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund, Railroad Retirement Account, Civil Service Retirement and Disability Fund, and Department of Defense Military Retirement Fund for such terms and at such interest rates as will ensure a projected annual interest income to such funds equivalent to the income which would have been earned by those funds from public debt obligations which: (1) were redeemed on or after September 1, 1985, and on or before the date of the enactment of this Act; and (2) would not have been redeemed had the public debt limit been raised pursuant to a specified resolution of the House of Representatives. Directs the Secretary to pay to the funds the interest which would have accrued to the funds but for such non-investments, redemptions, and disinvestments. Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to require the Managing Trustee of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance trust fund (OASDI trust funds) to submit an advance report to the Board of Trustees of such trust funds and to each House of the Congress of the effects on the OASDI trust funds of reaching the public debt limit. Authorizes the Managing Trustee to disinvest either trust fund only to the extent necessary to prevent a shortfall in amounts available for benefit payments. Restricts the authority of the Secretary of the Treasury to transfer specified tax revenues to the OASDI trust funds by requiring the Secretary to first determine that the balance in either trust fund would otherwise be insufficient to permit full payment of benefits for any month.
United States · United States Congress · 31 October 1985
Directs the Secretary of the Treasury to strike bronze medals commemorating the 100th Congress. Specifies the size of the medals, leaving their quantity and design to the Secretary's determination. Authorizes appropriations which are to be reimbursed out of proceeds from sales of the medals.
United States · United States Congress · 10 October 1985
States that a person shall be considered an American national if such person completes 15 years of lawful continuous residence in the United States or American Samoa, and one of his or her parents was a national of the United States and a resident of the United States or American Samoa at the time of that person's birth.
United States · United States Congress · 7 October 1985
Fair Export Financing Act of 1985 - Amends the Trade and Development Enhancement Act of 1983 to declare that one of the purposes of such Act is to establish a temporary tied aid credit program to combat the predatory concessional credit programs of foreign governments. Directs the President to negotiate limits on partially untied aid credit. Changes the U.S. negotiating objectives to include references to partially untied aid credits. Directs the Secretary of the Treasury to establish within the Department of the Treasury a program of tied aid credits for U.S. exports. Requires the program to be carried out in cooperation with the Export-Import Bank or with private financial institutions or entities. (Currently the program is established within the Export-Import Bank and carried out in cooperation with the Agency for International Development (AID).) Sets forth financing methods that may be included in such program. Authorizes appropriations. Repeals the provision that established a tied aid credit program in AID. Requires the Secretary to seek the advice of the National Advisory Council on International Monetary and Financial Policies before approving financing under the tied aid credit program. Terminates the tied aid credit program on September 30, 1987. Limits judicial review of actions by the Chairman of the Export-Import Bank and by the Secretary. Changes the definition of "tied aid credit." Defines "partially untied aid credit." Deletes references to government-mixed credits and public-private cofinancing.
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 · 20 September 1985
Amends the Internal Revenue Code to repeal the provisions which provide that a regulated investment company does not qualify for conduit treatment (no taxation at the corporate level) if 30 percent or more of its gross income is derived from the sale (or other disposition) of stock or securities held for less than three months. Expands the definition of permitted income of regulated investment companies to provide that "securities" has the same meaning as it does under the Investment Company Act of 1940. Provides that foreign currency gains are included in the definition of qualifying income as well as other income with respect to a regulated investment company's business of investing in stocks, securities, or income from gains from options or futures contracts. Provides that each separate portfolio in a series fund will be treated as a separate corporation for purpose of eligibility for conduit treatment of a regulated investment company. Extends to 60 days the period for mailing various notices to shareholders of regulated investment companies. Expands the definition of "third-party recordkeepers" to include regulated investment companies with respect to certain protections in connection with summonses that are served for obtaining records.
United States · United States Congress · 19 September 1985
Amends the Tariff Schedules of the United States to provide a duty on parts of certain portable stoves and other types of portable heating or cooking apparatus.
United States · United States Congress · 19 September 1985
Covert Agent Disclosure Federal Pension Forfeiture Act - Requires the forfeiture of Federal employee retirement benefits upon conviction of the felony of the unauthorized disclosure of the identity of a covert agent.
United States · United States Congress · 4 September 1985
Enterprise Zone Development and Employment Act of 1985 - Title I: Designation of Enterprize Zones - Amends the Internal Revenue Code to provide for the designation of enterprise zones by the Secretary of Housing and Urban Development for purposes of extending the tax incentives and regulatory flexibility measures provided by this Act. Provides that State and local governments shall nominate areas for such designation. Limits the designation of enterprise zones to 100 nominated areas, by the later of a 24 month period or July 1, 1985 (one-fourth of which must be in rural areas). Limits the period during which such deisgnation shall remain in effect. Provides that the Secretary may designate such zones only if: (1) the area is within the jurisdiction of the local government; (2) the boundary of the area is continuous; (3) the area has a population of at least 4,000 if any portion thereof is located within a standard metropolitan statistical area (with a population of at least 50,000) or 1,500 otherwise, or is within an Indian reservation; and (4) the area meets specified unemployment and poverty requirements. Requires nominating local governments, as a condition of the Secretary's designation, to agree in writing to follow a course of action which may include reducing tax rates, improving local services, simplifying or streamlining regulation of business, receiving commitments of private entities to assist employees and residents of the area, permitting State and local income tax deductions for fees for services performed by a nongovernmental entity formerly performed by a governmental entity, giving special preference to contractors owned and operated by members of a minority, and giving of surplus land in the enterprise zone to neighborhood organizations agreeing to operate a business on the land. Describes areas to which preference shall be given in deciding to designate enterprise zones. Requires the Secretary to prepare and submit to the Congress every four years a report on the effects of such enterprise zones' designation. Requires that any property tax reduction effected by a local government under the terms of this Act be disregarded for purposes of determining the eligibility of a State or local government for Federal assistance or benefits. States that designation of an enterprise zone shall not give displaced persons from such an area any rights or benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Treats any area designated as an enterprise zone as a labor surplus area under Federal law. Title II: Federal Income Tax Incentives - Subtitle A: Credits for Employers and Employees - Allows employers located in enterprise zones a nonrefundable income tax credit for increased employment expenditures and employment of the disadvantaged. Allows a three-year carryback and a 15-year carryover of such credit. Sets the amount of such credit at ten percent of the increase in payroll (taking into account a maximum of $17,500 in wages per year per employee) plus 50 percent of the wages paid to certain disadvantaged workers for the first three years of the enterprise zone designation. Phases out such economically disadvantaged credit. Disallows a deduction for the portion of the wages or salaries taken into account for such credit. Requires that where there is an early termination of employment by an employer in the case of qualified economically disadvantaged individuals, the tax for that taxable year in which the termination occurred must be increased by the tax credits allowed for such employees. Allows employees located in enterprise zones a nonrefundable income tax credit equal to five percent of qualified wages earned per year (taking into account a maximum of $10,500 in wages per year). Phases out such credit. Subtitle B: Credits for Investment in Tangible Property in Enterprise Zones - Allows businesses an additional investment tax credit for investments made in certain enterprise zone construction property located in enterprise zones. Limits such credit to ten percent for new enterprise zone construction property, including rental property. Requires that the property subject to such credit be located in an enterprise zone, be predominantly used in the zone, be either constructed, reconstructed, renovated, etc. during the period of zone designation or acquired during such period, and not be acquired from relatives or related corporations. Requires the recapture of such credit upon the early disposition of the property. Provides for a phase-out of the enterprise zone tax credit as the enterprise zone ends. Provides for an adjustment to the basis of the enterprise zone construction property to reflect the enterprise zone tax credit. Subtitle C: Nonrecognition of Qualified Enterprise Zone Capital Gain Where Acquisition of Enterprise Zone Business Property - Provides for the nonrecognition of capital gain on the sale of property where within the one-year period beginning on the date of such sale qualified replacement property is acquired by the taxpayer, to the extent the gain from the sale does not exceed the cost of the replacement property. Defines "qualified replacement property" as any personal property used predominantly in an enterprise zone in the active conduct of a trade or business within the enterprise zone, any real property located in the enterprise zone used in the active conduct of a trade or business, or any corporation, partnership, or other entity if, for the three most recent taxable years of such entity ending before the date of the purchase of such interest, such entity was a qualified business. Sets forth special rules for the operation of this provision. Requires the basis of the replacement property to be reduced by an amount equal to the amount of gain not recognized on the sale of such other property. Extends the period for the statute of limitations relating to the assessment of tax with respect to the sale of property involving the nonrecognition provisions. Provides that the holding period for the qualified replacement property shall include the period for which the property sold or exchanged had been held as of the date of the sale or exchange. Subtitle D: Deduction for Purchase of Enterprise Stock - Allows a taxpayer to deduct the aggregate amount paid during the taxable year for the purchase of enterprise stock on the original issue of such stock by a qualified issuer. Limits the maximum amount of such deduction to $100,000 a year. Requires that the $100,000 limit must be allocated among the members of a controlled group. Requires the pro rata allocation of the $100,000 limit among the stock purchased where the aggregate amount of stock purchased exceeds the $100,000 limitation. Requires that the gain from the disposition of the stock shall be treated as ordinary income. Provides a formula for calculating such gain. Provides that interest is charged on the disposition of such stock if such disposition occurs before the end of the three-year period beginning on the date the stock was purchased. Provides that where an issuer ceases to be a qualified issuer of enterprise stock before the close of the fifth taxable year after the date the stock was issued, the taxpayer must include in income the amount of the deduction allowed with respect to such stock plus interest on the aggregate decrease in tax of the taxpayer resulting from the deduction allowed with respect to such stock. Sets forth special rules with respect to such stock. Requires the basis of such stock to be reduced by the amount of the deduction allowed with respect to such stock. Subtitle E: Rules Relating to Industrial Development Bonds - Provides that limitations on the cost recovery deductions for property financed with tax-exempt industrial development bonds shall not apply to enterprise zone property. Provides that the termination of the small issue exemption shall not apply to industrial development bonds the proceeds of which are used to finance facilities in such enterprise zones. Subtitle F: Ordinary Loss Deduction for Securities of Enterprise Zone Business Which Become Worthless - Permits an ordinary loss deduction for securities of enterprise zone businesses which become worthless during the taxable year. Subtitle G: Increase in Research Credit for Research Conducted in Enterprise Zones - Increases the tax credit for increasing research activities to 37 and one-half percent. (currently, 25 percent for research conducted in enterprise zones). Subtitle H: Sense of the Congress with Respect to Tax Simplification - Expresses the sense of the Congress that the Internal Revenue Service should simplify the administration and enforcement of any provision of the Internal Revenue Code affected by this Act. Subtitle I: Regulations - Directs the Secretary of the Treasury to issue regulations to carry out the provisions of this Act not later than six months after the date of enactment. Title III: Regulatory Flexibility - Revises the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified businesses (as defined in Title II of this Act) and governments and nonprofit enterprises operating within enterprise zones. Authorizes Federal agencies, upon request by a designating government, to waive or modify rules and regulations which pertain to the carrying out of projects or activities within an enterprise zone. Requires agencies to approve such request if the resulting benefits of job creation, community development, or economic revitalization outweigh the public interest in continuation of the rule unchanged. Disallows waiver or modification of a rule that would directly violate a statutory requirement (including the Davis-Bacon Act and Fair Labor Standards Act) or which would present a danger to the public health and safety. Provides that such waivers or modifications of a rule shall remain in effect as long as the zone designations. Amends the Department of Housing and Urban Development Act to direct the Secretary of Housing and Urban Development to promote the coordination of all enterprise zone programs and consolidate all periodic reports required under such programs into one summary report. Title IV: Establishment of Foreign-Trade Zones in Enterprise Zones - Requires the Foreign-Trade Board to consider on a priority basis and expedite the processing of applications for the establishment of foreign-trade zones within enterprise zones. Requires the Secretary of the Treasury to give priority to, and expedite applications for, the establishment of ports of entry necessary to establish such zones. States that, to the maximum extent practicable, foreign-trade zones should be established within enterprise zones.
United States · United States Congress · 23 July 1985
Disapproves the President's recommendation to extend the President's authority to waive the freedom of emigration requirements under the Trade Act of 1974 in order to extend the most-favored nation status of Romania.
United States · United States Congress · 19 June 1985
Comprehensive Trade Law Reform Act of 1985 - Title I: Countervailing and Antidumping Duties - Amends the Tariff Act of 1930 to add requirements for a country to be considered a "country under the Agreement" (the Agreement on Subsidies and Countervailing Measures) for purposes of the countervailing duty provisions of such Act. Requires such a country to have made a commitment under the General Agreement on Tariffs and Trade (GATT) to: (1) eliminate its export subsidies within one year (five for least developed countries); (2) not increase, extend, or add export subsidies; and (3) eliminate immediately export subsidies on those products in which such country is competitive. Requires the International Trade Commission (ITC), upon request, to investigate whether the merchandise is already competitive in the U.S. market and whether the merchandise would be competitive in the absence of export subsidies. Directs the administering authority to review the status of, and compliance with, specified trade agreements at least once during each 12 month period. Directs the administering authority to publish such determinations. Imposes penalties for failure of a foreign country to honor any term of such agreements, including withdrawing designation of a country as a "country under the Agreement," suspension of liquidation of imports, and initiation of a countervailing duty investigation. Directs the administering authority, if there is an affirmative determination, based upon allegations in a petition for relief of the existence of a subsidy which requires the imposition of a countervailing duty and the petition alleges that the subsidy is inconsistent with the Agreement or if the administering authority initiates a countervailing duty investigation and the administering authority has reason to believe that a subsidy is inconsistent with the Agreement, to: (1) notify the U.S. Customs Service and direct customs officials to collect and forward to the administering authority information on the imports of the merchandise which is the subject of the investigation; (2) order the suspension of liquidation of all entries of such merchandise; and (3) begin monitoring the volume of imports of such merchandise to determine whether the volume of such imports has significantly increased. Prohibits making any determination on whether the volume of such imports has significantly increased until 60 days after the date the investigation began. Terminates any suspension of liquidation of such imports if the administering authority makes a preliminary determination that a subsidy does not exist. Directs the administering authority to order the posting of security for, and the application of a suspension of liquidation of, unliquidated imports which were imported 90 days before the date on which the preliminary determination is published if there is a determination that the volume of imports has surged, the alleged subsidy is inconsistent with the Agreement, and there have been massive imports of the merchandise subject to the countervailing duty investigation in a relatively short period. Directs the administering authority to terminate any suspension of liquidation of imports and to release any posted security requirement if a countervailing duty investigation is terminated. Requires the final determination of the administering authority in a countervailing duty investigation, if there is a final determination that a subsidy exists and if there is a finding that the volume of the investigated imports has increased significantly, to contain a finding on whether the alleged subsidy is inconsistent with the Agreement and whether there have been massive imports of the merchandise being investigated over a relatively short period of time. (Such finding is a finding of critical circumstances.) Requires the final determination of the ITC, if such determination is that there is no material injury but that there is a threat of material injury, to include a finding as to whether material injury by reason of subsidized imports would have been found but for any suspension of liquidation of such imports. (Deletes the provision requiring the ITC to include in its final determination findings as to whether there is material injury which will be difficult to repair and whether the material injury was caused by massive imports of subsidized merchandise over a relatively short period of time.) Requires the administering authority, if the administering authority makes a final determination that critical circumstances do not exist or if the ITC determines that there is no material injury but that there is a threat of material injury or that the establishment of a U.S. industry is materially retarded, to: (1) terminate any suspension of liquidation of imports ordered under a countervailing duty investigation; and (2) release any security and refund any cash deposit required with respect to such imports. Permits determinations of whether critical circumstances exist with respect to imports of articles that are not duty-free. Directs the administering authority, if the preliminary determination in an antidumping investigation is affirmative or if the investigation is initiated by the administering authority, to: (1) notify the U.S. Customs Service of such determination and direct customs officers to collect and forward information on the volume and value of imports of the merchandise subject to such investigation; and (2) begin monitoring the volume of such imports to determine whether the volume of such imports has significantly increased. Requires the administering authority to publish notice of a determination that the volume of such imports has significantly increased. Prohibits making such a determination until 60 days after the antidumping investigation has begun. Directs the administering authority to order the suspension of liquidation of all imports of the articles subject to the antidumping investigation 70 days after the date the investigation has begun. Terminates such suspension of liquidation if the preliminary determination under waiver of verification is negative. Directs the administering authority to determine whether critical circumstances exist if the administering authority determines that the volume of imports of the articles under investigation for dumping has significantly increased. (Current law requires the administering authority to determine whether critical circumstances exist if the petitioner alleges critical circumstances.) Requires the administering authority, if it determines that critical circumstances exist, to order the posting of security for, and require any suspension of liquidation to apply to, unliquidated entries of merchandise imported on or after the date that is 90 days before the date on which the affirmative preliminary determination is published. Terminates any suspension of liquidation of imports and releases any posted security if an antidumping investigation is terminated. Requires the final determination of the administering authority in an antidumping investigation, if it finds that the merchandise subject to the investigation is being, or is likely to be, sold in the United States at less than fair value and the administering authority has found that the volume of imports of such merchandise has increased significantly, to contain a finding as to whether: (1) either there is a history of dumping in the United States or elsewhere of such merchandise that the importer knew or should have known that the exporter was selling such merchandise at less than its fair value; and (2) there have been massive imports of such merchandise over a relatively short period. (Current law requires such a finding to be included in the final determination if such critical circumstances have been alleged in the petition for relief.) Requires the final determination of the ITC, if such determination is that there is no material injury but that there is a threat of material injury, to include a finding as to whether material injury by reason of dumped imports would have been found but for any suspension of liquidation of such imports. Requires the administering authority, if the administering authority makes a specified final determination or the ITC determines that there is no material injury but that there is a threat of material injury or that the establishment of a U.S. industry is materially retarded, to: (1) terminate any suspension of liquidation of imports of such merchandise; and (2) release any security and refund any cash deposit required with respect to such imports. Declares that if the ITC has made an affirmative preliminary or final determination that countervailing or antidumping duties should be imposed with respect to merchandise that is the subject of a countervailing or antidumping duty investigation during the one-year period ending on the date on which such investigation is begun: (1) the ITC shall not be required to make another preliminary determination of injury; and (2) the preliminary determination of relief shall be applied without regard for the requirement that an affirmative injury determination be obtained. Authorizes the administering authority to suspend a countervailing duty investigation if the government of the country in which the subsidy practice is alleged to occur agrees, or exporters who account for substantially all of the imports of the merchandise agree, to: (1) eliminate the subsidy completely within six months; or (2) cease exports of such merchandise to the United States within six months. Deletes the provision authorizing suspension of such investigation if the subsidizing country agrees to offset the amount of the subsidy. Adds new conditions for the waiver of deposit of estimated antidumping duties. Authorizes such waiver if in addition to the current requirements: (1) the investigation has not been designated as extraordinarily complicated; (2) the final determination has not been postponed; (3) credible evidence is presented that the amount by which the foreign market value of the merchandise exceeds the U.S. price is significantly less than the amount of such excess specified in the antidumping duty order; and (4) the data concerning the foreign market value and the U.S. price apply to sales in the usual commercial quantities and in the ordinary course of trade and the number of such sales are sufficient to form an adequate basis for comparison. Requires the administering authority, before determining to allow such waiver, to: (1) make all confidential information supplied to the administering authority available under a protective order to all interested parties; and (2) afford all interested parties an opportunity to comment on whether the waiver should be permitted. Amends the definition of "subsidy" for purposes of the countervailing duty provisions to include the provision of capital, loans, loan guarantees, goods, or services at preferential rates or on terms inconsistent with commercial considerations. Amends the definition of "interested party" to include a U.S. manufacturer, producer, or wholesaler, or a union, trade or business association, or another association which represents manufacturers, producers or wholesalers of a like product of major parts, materials, components, or assemblies or subassemblies which are irrevocably destined for incorporation into the like product. Defines "diversionary dumping" as the purchase by a manufacturer or producer of any material or component at less than the foreign market value of such material or component which is incorporated into the merchandise under investigation and which has been the subject of a previous antidumping investigation. Sets forth the method of determining the adjustment amounts for determining foreign market value, sales at less than the cost of production, and the constructed value of components and materials. Includes subsidies provided under the authority of a statute, regulation, policy, or practice of a customs union within the definition of upstream subsidies. Creates a presumption of competitive benefit if: (1) a countervailing duty order is in effect with respect to an input product or an input product is subject to an import restriction agreement; (2) a subsidy continues to be paid on such input product after the countervailing duty order was issued or after the agreement took effect; and (3) the administering authority determines that an increase in imports of merchandise under a countervaling duty investigation has occurred. Requires (currently authorizes) the administering authority and the ITC to make confidential information submitted to an antidumping or countervailing duty investigation available upon receipt of a request which describes in general terms (currently with particularity) the type of information sought and the reasons for the request, unless the person who submitted such information establishes that substantial harm to the business operations of such person would result from such disclosure. Sets forth additional limits on disclosure of such information, including a time limit on making the determination of whether to disclose information. Title II: Relief from Injury Caused by Import Competition - Transfers from the President to the Administering Authority the authority to take certain actions following import relief investigations by the ITC. Authorizes a petition for import relief to include within its statement of reasons for requesting import relief the desire to facilitate the orderly transfer of resources to enhance competitiveness. Changes the scope of the ITC's import relief investigation to include determining whether an article is being imported into the United States in such increased quantities as to be a cause (currently substantial cause) of serious injury or threat of serious injury to any domestic industry that produces an article like or directly competitive with the imported article or that produces materials, parts, components, or subassemblies irrevocably destined for incorporation in an article like or directly competitive with the imported article. Changes one of the factors that must be considered in making such determination with respect to serious injury in order to cover the inability of a significant number of firms to operate domestic production facilities at a reasonable profit. (Current law refers to the inability of firms to operate at a reasonable profit.) Changes the factors that must be considered in making such determination with respect to the threat of serious injury in order to cover: (1) a decline in sales or market share in the domestic industry; (2) a higher and growing inventory in the domestic industry; (3) a downward trend in production, profits, wages, or employment (or increasing underemployment) in the domestic industry; (4) any combination of coordinated government actions that are bestowed on a specific enterprise, industry, or group thereof the effect of which is to assist the beneficiary to become more competitive in the export of any class or kind of merchandise and that causes or threatens to cause serious injury to the domestic industry; (5) the extent to which the U.S. market is the focal point for diversion of exports of the article concerned because of restraints on exports of such article to, or imports of such articles into, third country markets; (6) in the case of an industry that has developed an industry assessment and competitiveness strategy, the inability of producers in the domestic industry to generate adequate capital to finance the modernization of plant and equipment or to otherwise enhance competitiveness. Requires (currently authorizes) the ITC to make certain determinations with respect to determining the domestic industry producing an article like or directly competitive with an imported article. Defines "cause" for purposes of determining whether imports are a cause of injury to mean a cause which is important. Declares that a cause may be important even though other causes are of equal or greater importance. Requires the ITC, if it finds that serious injury or the threat of serious injury exists for a domestic industry, to: (1) find the amount of the increase in, or imposition of, any duty or import restriction necessary to prevent or remedy such injury; and (currently or) (2) if it determines that adjustment assistance can assist in remedying such injury, recommend the provision of such assistance. Directs the Administering Authority, if during an important relief investigation it finds that critical circumstances exist, to impose provisional measures (increase in tariff, tariff-rate quotas, quantitative restrictions, orderly marketing agreements or a combination of such actions). Requires such measures to remain in effect until the later of the date: (1) on which the President revokes such measures; (2) on which the ITC makes a negative determination of injury; or (3) which is 60 days after the date on which the ITC makes an affirmative determination of injury. Declares that critical circumstances exist if a significant increase in imports over a short time has led to circumstances in which delay in relief would cause damage that would be difficult to repair. Requires the ITC, if it finds that serious injury has resulted from imports, to determine: (1) whether trade in the article concerned has been affected by coordinated government actions that are bestowed on a specific enterprise, industry, or group and that assist the beneficiary in becoming more competitive in exporting a class or kind of merchandise; and (2) the extent to which the U.S. market is the focal point for diversion of exports of such article because of restraints on exports of such article to, or on imports of such article into, third country markets. Directs the Administering Authority, if it determines to provide import relief and the ITC has found that trade in the article has been affected by such coordinated government actions, to consult and negotiate with other countries that produce or consume such article to seek the establishment of a multilateral framework to maintain and develop fair, equitable, and nondisruptive patterns of trade in such article. Directs the Administering Authority, after the ITC begins an import relief investigation based on a petition, to establish, upon request, an industry advisory group. Requires such advisory group to prepare for the industry concerned an assessment of current problems and a strategy to enhance competitiveness. Directs the Administering Authority to try to obtain, on a confidential basis, information from the individual members of such advisory group on: (1) how such members intend to act upon the recommendations in such assessment and strategy; and (2) any other actions such members intend to take which will foster the objectives of the strategy. Requires the Administering Authority, the ITC, the Secretary of Labor, and the Secretary of Commerce to consider such assessment and strategy in making any import relief determination or taking any import relief actions. Requires the Administering Authority, if it determines to provide import relief and if an industry assessment and competitiveness strategy was submitted to the Administering Authority, to publish notice of the availability of, and a summary of, such assessment and strategy. Requires a review committee, if such summary is published, to: (1) monitor actions taken by the petitioners to improve the competitive position of the industry; (2) make recommendations for administrative action; and (3) submit recommended legislation to the Congress. Requires the review committee to consult with the advisory group members if the review committee determines that the firms or workers are not implementing or are implementing unsatisfactorily: (1) the recommended objectives and actions in the industry assessment and competitiveness strategy; or (2) the actions declared in the confidential information obtained by the advisory group. Requires the Administering Authority to request the ITC to issue a report on the probable economic effect on the industry of import relief if, after consultations with the advisory group members, the review committee determines that the failure to implement or failure to implement satisfactorily such actions is not justified by changed circumstances and has adversely affected overall implementation of the objectives of the industry assessment and competitiveness strategy. Requires the Administering Authority, if it decides to provide import relief, to consult with petitioners and representatives of workers and firms in the affected industry on the advisability and desirability of taking appropriate action under countervailing or antidumping duty provisions of the Tariff Act of 1930 or under title III of the Trade Act of 1974 if the Administering Authority has reason to believe that a foreign government or firm is engaged in any action or practice for which such relief is available. Title III: Relief from Injurious Industrial Targeting and Unfair Trade Practices - Provides that injurious industrial targeting may trigger import relief actions. Defines injurious industrial targeting to mean any combination of coordinated government actions: (1) which are bestowed on a specific enterprise, industry, or group thereof; (2) which assist such enterprise, industry, or group to become more competitive in the export of any class or kind of merchandise; and (3) which cause or threaten to cause material injury. Transfers from the President to the Administering Authority the authority to take certain actions to enforce U.S. rights under trade agreements and to respond to certain foreign trade practices. Authorizes the Administering Authority to: (1) suspend, withdraw, or prevent application of the benefit of trade agreement concessions with the foreign country or instrumentality involved; (2) direct customs officers to assess duties or impose other import restrictions on the products of such country or instrumentality or to assess fees or impose restrictions on the services of such country or instrumentality for such time in such amount, and to such degree as the Administering Authority deems appropriate; (3) negotiate agreements to offset the burden or restrictions on U.S. commerce; (4) submit proposed administrative actions and legislation to implement any other government action which would restore or improve the international competitive position of the injured or threatened industry; (5) recommend to the President action respecting service sector authorization; or (6) any combination of such actions. Transfers to the Administering Authority from the President the authority to impose certain limits on service sector access authorizations (authorizations that permit a foreign supplier of services access to the U.S. market). Deletes the provision authorizing the President to take action to enforce U.S. trade rights even though no petition for relief has been filed. Directs the Administering Authority to consult with representatives of domestic firms and workers that may be affected by any import relief investigation which is initiated by petition filed with the Administering Authority regarding any determination which is required to be made by the Administering Authority. Directs the Administering Authority, upon written request, to make confidential business information obtained by it in connection with an import relief investigation available under a protective order. Prohibits release of information classified for national security reasons. Requires the Administering Authority to act upon requests for such information within ten days of the request. Requires the Administering Authority, in conducting an import relief investigation initiated by petition to the Administering Authority, to present detailed questionnaires to the foreign government or enterprise involved in order to obtain information concerning the allegations in the petition. Directs the Administering Authority to verify any such information which the Administering Authority relied upon in making any determinations. Provides for relying on the best information available, which may be the information contained in the petition, if the foreign government fails to provide information or provides insufficient or unsatisfactory information. Requires the Administering Authority to make a preliminary determination within five months of the start of such an import relief investigation on whether there is reason to believe that import relief is warranted. Authorizes the Administering Authority to take certain actions based on the preliminary finding. Requires the final determination to be made within 11 months of the start of the investigation. Requires the Administering Authority to determine what actions to take if the final determination is that import relief is warranted, except that specific actions are required if injurious industrial targeting is found to exist. Requires the Administering Authority to consult with the petitioner and representatives of the affected domestic firms and workers if the final determination is affirmative. Requires the Administering Authority to report to the Congress if the final determination is affirmative and the Administering Authority declines to take any action. Terminates any preliminary import relief if the final determination is negative. Requires publication in the Federal Register of such preliminary and final determinations. Requires the Administering Authority, if it makes a preliminary finding that injurious industrial targeting exists, to: (1) establish an advisory committee; and (2) formulate, in consultation with such advisory committee, proposals which would restore or improve the competitive position of affected domestic industries. Requires the Administering Authority to notify the ITC when it initiates an investigation of injurious industrial targeting. Requires the ITC to make a preliminary determination within 60 days of receiving such notice of whether there is a reasonable indication that because of sales or likely sales of the merchandise which is the subject of the investigation: (1) an industry in the United States is materially injured or is threatened with material injury; or (2) the establishment or growth of an industry in the United States is materially retarded. Requires the ITC to make a final determination of whether such circumstances exist by: (1) 45 days after the affirmative final determination of the Administering Authority if the Administering Authority's preliminary determination is affirmative; or (2) 75 days after an affirmative final determination of the Administering Authority if the Administering Authority's preliminary determination is negative. Makes the ITC's determination subject to review by the U.S. Court of International Trade if such determination was made under the countervailing or antidumping duty provisions of the Tariff Act of 1930. Defines material injury and threat of material injury. Requires the Administering Authority, pending conclusion of the investigation, to take at least one of several provisional actions in order to prevent further injury or threat of injury from injurious industrial targeting. Requires the Administering Authority, after a final determination of injury has been made, to take at least one of several actions to fully offset the material injury or threat of material injury from injurious industrial targeting. Directs the Administering Authority to submit to the President any proposed administrative action and any proposed legislation to restore or improve the competitive position of the injured industry if the preliminary and final determinations are that injurious industrial targeting has occurred. Provides for expedited consideration of such legislation. Requires the Administering Authority to report to the Congress on the actions the Administering Authority will take to offset the material injury or threat of material injury from the injurious industrial targeting. Authorizes the Administering Authority to enter into a settlement agreement with the foreign country or entity involved in lieu of taking other actions if: (1) such agreement completely eliminates the material injury or threat of material injury from the injurious industrial targeting; and (2) such agreement is approved by the petitioner if the investigation began because of a petition. Authorizes the Administering Authority to take actions to compensate a foreign country or entity if the contracting parties to the General Agreement Tariffs and Trade (GATT) disapprove of actions taken in response to injurious industrial targeting. Directs the Administering Authority to consult with the petitioner and the representatives of affected domestic firms and workers if, in the course of an investigation, the Administering Authority has reason to believe that a foreign government engaged in dumping or other actions for which relief is available under specified provisions of the Tariff Act of 1930. Title IV: Negotiating Objectives - Declares that the principal U.S. negotiating objectives shall be to: (1) obtain and preserve maximum access to international markets for U.S. manufactured products; (2) obtain the elimination of foreign barriers to market access; (3) obtain internationally accepted rules to evaluate and respond to the maintenance and operation of government-controlled enterprises that engage in international trade; and (4) establish procedures governing such enterprises.
United States · United States Congress · 6 June 1985
Antitrust Damages Clarification Act of 1985 - Provides that no damages, costs, or attorney's fees shall be awarded under an antitrust suit with respect to the establishment or use of any rate, charge, or premium filed with a State insurance department or authorized, approved, or permitted to become effective pursuant to State insurance laws. Applies this Act to pending cases.
United States · United States Congress · 14 May 1985
Directs the Secretary of the Treasury to: (1) retire all circulating U.S. notes of the denomination of $100; (2) issue new notes in such denomination; and (3) provide a ten-day period for the exchange of the circulating notes for the new notes. Requires the name, address, and social security or Federal employer identification number of any holder who exchanges $5,000 or more in notes to be forwarded to the Department of the Treasury.
![Official portrait of Rep. Schulze, Richard T. [R-PA-5]](https://www.congress.gov/img/member/s000146_200.jpg)