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Bill· HRH.R. 4420 (97th)referred
United States · United States Congress · 9 September 1981
Amends the Internal Revenue Code to revise requirements for the tax exclusion of interest on small issues of industrial development bonds (IDBs). Requires the Governor of a State to report to the Secretary of the Treasury in 1983 and 1984 on bonds issued during the preceding years. Requires IDB issuing authorities to conduct public hearings prior to the approval and issuance of any small issue IDB. Requires such authorities to certify that: (1) the issue will not create an unjustified competitive disadvantage to existing businesses; (2) the issue will stimulate the local economy; (3) the issue will result in jobs; and (4) the project would not be undertaken without IDB financing. Requires that issues provide commercial property in economically distressed areas. Permits projects in adjacent areas under certain circumstances. Disallows tax- exempt status to obligations if the proceeds facilitate the relocation of activities from one State to another. Prohibits the use of bond proceeds to purchase farmland. Requires the Secretary to report to specified congressional committees on the use of small issue IDBs.
Bill· HRH.R. 4418 (97th)referred
United States · United States Congress · 9 September 1981
Amends the Internal Revenue Code to repeal the provision which treats investments by individual retirement accounts and other retirement plans in collectibles as distributions equal to the cost of the collectible. Defines "collectibles" as items such as artworks, antiques, gems and coins.
Resolution· HRESH.Res. 210 (97th)referred
United States · United States Congress · 9 September 1981
Expresses the sense of the House of Representatives that the expected U.S. budget deficit should be reduced by amending the windfall profit tax reduction provisions contained in the Economic Recovery Tax Act of 1981.
Bill· HRH.R. 4408 (97th)open
United States · United States Congress · 4 August 1981
Amends the Energy Tax Act of 1978 with respect to refunds resulting from the repeal of the manufacturers excise tax on buses to: (1) extend to December 31, 1982, the period for reimbursement of tax to the ultimate purchaser; (2) revise requirements regarding proof of reimbursement; and (3) make interest on a refund payable in cases of certain claims made before September 1, 1979.
Bill· HRH.R. 4411 (97th)referred
United States · United States Congress · 4 August 1981
Amends the Internal Revenue Code to provide farmers a refundable income tax credit based on the number of soil conservation acres which they utilize. Defines "soil conservation acres" as land owned by the taxpayer which is used in farming in which only conservation tillage practices are used (procedures which reduce soil erosion by minimizing the amount of plowing). Reduces the credit by the amount of governmental grants received for the purpose of carrying out conservation tillage practices.
Bill· HRH.R. 4402 (97th)referred
United States · United States Congress · 4 August 1981
Farm Irrigation Property Tax Incentives Act of 1981 - Amends the Internal Revenue Code to provide an additional ten percent investment tax credit for equipment which is utilized in the extraction, storage, or use of farm irrigation water.
Bill· HRH.R. 4386 (97th)referred
United States · United States Congress · 4 August 1981
Amends the Internal Revenue Code to exempt from the manufacturers excise tax on firearms: (1) any individual who does not produce more than 50 articles during the calendar year; and (2) any individual who handloads shells or cartridges solely for personal use.
Bill· SS. 1594 (97th)open
United States · United States Congress · 3 August 1981
Amends the Internal Revenue Code to base the civil penalty for fraud on only the portion of the underpayment which is due to fraud rather than on the entire underpayment.
Bill· SS. 1561 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to allow agricultural land owners a nonrefundable income tax credit equal to 20 percent of the expenditures paid or incurred for purposes of soil conservation, prevention of soil erosion, reduction or control of agriculture-related pollution, and for specified activities relating to the treatment or moving of earth. Requires the recapture of amounts allowed as a credit under the provisions of this Act if the taxpayer disposes of such agricultural lands within three years of the taxable year in which such credit is claimed.
Bill· SS. 1580 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to provide an additional personal tax exemption of $1,000 for each child born to, or adopted by, a taxpayer during the taxable year. Provides a $3,000 tax exemption in the case of: (1) a child who is born with a handicap; or (2) the adoption of a child (A) who is a member of a minority race or ethnic group (B) who has attained the age of six or (C) who is handicapped. Allows for the election of either a tax deduction or tax credit for adoption expenses of more than $500 paid or incurred by a taxpayer. Limits such deduction to $3,500 ($4,500 in the case of an international adoption).
Bill· SS. 1581 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to allow a taxpayer to elect either an income tax credit of $250 or an income tax deduction of $1,000 for maintaining a household which includes as a member a dependent age 65 or over.
Bill· SS. 1583 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to provide an income tax deduction for contributions made by a married taxpayer to an individual retirement plan for the benefit of a nonsalaried spouse. Allows for a deduction up to $3,000 in the case of a handicapped spouse.
Bill· SS. 1579 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to allow an unrestricted business expense tax deduction for contributions made to a tax-exempt day care facility. Grants tax- exempt status to day care facilities which meet specified requirements.
Bill· SS. 1576 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to permit the nonrecognition of gain from the sale of any property, except to the extent that the amount realized from the sale exceeds the cost of common or preferred stock of a qualified small business corporation purchased by the taxpayer within one year after the date of such sale. Defines "qualified small business corporation" as a small business corporation whose passive investment income, for the taxable year or for any of the three subsequent taxable years, does not exceed 15 percent of its gross receipts. Requires a reduction of the basis of such stock by the amount of gain not recognized. Prescribes a three-year statute of limitations for the assessment of any deficiency attributable to gain realized by the sale of such property.
Bill· SS. 1568 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to permit the exclusion from gross income of interest on certain industrial development bonds if the proceeds of such bonds are used to finance the improvement of certain existing wharf facilities.
Bill· SS. 1582 (97th)open
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to establish a tax-exempt trust for the care of the parents and handicapped dependents of the taxpayer. Allows a $3,000 income tax deduction for contributions to such a trust.
Bill· HRH.R. 4356 (97th)open
United States · United States Congress · 31 July 1981
Periodic Payment Settlement Act of 1981 - Amends the Internal Revenue Code to provide for an income tax exclusion of periodic payments of damages received on account of personal injury or sickness, whether paid by the individual originally liable for such damages or his assignee. Allows such assignee a business expense deduction for the payment of such damages.
Bill· HRH.R. 4355 (97th)referred
United States · United States Congress · 31 July 1981
Amends the Internal Revenue Code to exclude from the gross income of individual taxpayers interest on reparation payments made to such taxpayers for persecution under the German National Socialist regime.
Bill· HRH.R. 4340 (97th)referred
United States · United States Congress · 30 July 1981
Amends the Internal Revenue Code to allow an unrestricted deduction of amounts paid for health insurance. Allows self-employed individual taxpayers an income tax deduction for one-half of the social security tax on self- employed income. Provides for a limited income tax deduction for amounts paid by an individual for term life insurance. Extends these deductions to taxpayers who do not itemize income tax deductions.
Bill· SS. 1537 (97th)open
United States · United States Congress · 29 July 1981
Amends the Internal Revenue Code to allow employers a nonrefundable income tax credit for contributions to a tax-deferred profit sharing plan. Limits the amount of such credit to the lesser of all such contributions or one percent of the aggregate compensation paid by the employer to plan participants during the taxable year. Requires full and immediate vesting in plan participants of all amounts contributed to a profit sharing plan. Provides for a three year carryback and a seven year carryover of unused credit amounts.
Bill· HRH.R. 4323 (97th)open
United States · United States Congress · 29 July 1981
Revenue Act of 1981 - Title I: Individual Income Tax Provisions - Subtitle A - Tax Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates, effective in 1981. Reduces the highest marginal tax rate from 70 to 60 percent. Requires the revision of withholding tables to correspond with such tax rate reductions. Authorizes the Secretary of the Treasury to issue regulations permitting workers to increase or decrease their withholding allowances. Increases the zero bracket amount for each category of taxpayer. Increases the income levels at which a taxpayer is required to file an income tax return. Reduces the alternative minimum tax on individuals and the personal holding company tax to correspond with reductions in the highest marginal tax rate. Subtitle B - Increase in Earned Income Credit and Child Care Credit; Deduction for Two-Earner Married Couples - Increases the rate of the earned income tax credit from ten to 11 percent of the first $5,000 of earnings beginning in 1982. Increases the maximum amount of such credit. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $30,000 or the earned income of the lower income spouse, beginning in 1983. Specifies that the deduction shall be five percent of such amount in 1982. Increases the amount of the tax credit allowable for expenses for household and dependent care services necessary for gainful employment, beginning in 1982. Allows the credit for certain services outside the taxpayer's household. Subtitle C - Social Security Tax Credit - Allows a tax credit for ten percent of a taxpayer's social security taxes paid in 1982. Disallows employers a business expense deduction for the amount of social security taxes taken as a credit. Provides special rules for such credit in the case of certain State and local employees. Title II: Business Provisions - Subtitle A - Depreciation Reform - Amends the Internal Revenue Code to allow a first-year income tax deduction for a specified percentage of the basis of property used in a trade or held for the production of income (recovery property) which is placed in service after 1980. Assigns such property to one of four classes based on present class lives under the Asset Depreciation Range (ADR) system. Phases in such expensing method by limiting the income tax deduction to a specified percentage of the basis of such property each year through 1990. Permits the first $25,000 worth of qualified assets to be expensed in the year they are purchased or placed in service without regard to the phase-in period. Excludes from eligibility for expensing: (1) property used predominantly outside the United States; (2) certain livestock; (3) property depreciated on a basis other than time; (4) certain amortization property; (5) certain public utility property; (6) oil or gas fired boilers; (7) certain property held by noncorporate lessors; and (8) certain petroleum refineries. Requires the recapture as ordinary income of excess depreciation from recovery property which is subsequently sold or exchanged. Provides alternative recovery percentages for depreciable property not eligible for the investment tax credit. Redefines "public utility property" to include transportation of oil by pipeline for purposes of the depreciation deduction. Sets forth limits on the amount of used property eligible for first-year capital cost recovery. Provides for depreciation of certain real property placed in service after 1980, according to the straight line method based on a useful life of 20 years. Specifies a 15 year useful life for low-income housing. Permits the expensing (i.e. deducting in current taxable year) of up to $25,000 of depreciable business assets, in lieu of current provisions allowing additional first year depreciation of such assets. Allows a 30 percent variance from class life for long-life public utility property and certain real property. Disqualifies expense-method property from eligibility for the investment tax credit. Provides that, for purposes of computing the earnings and profits of a corporation in any taxable year, the useful life of expense-method property shall be the lower life limit of such property and the useful life of real property shall be 35 years. Specifies that sale and leaseback arrangements shall be treated as transactions between related taxpayers for purposes of the depreciation deduction. Subtitle B - Credit for Rehabilitation Expenditures - Increases the investment tax credit percentage for rehabilitation expenditures to 15 percent for 30-year buildings, 20 percent for 40-year buildings, and 25 percent for certified historic structures, effective in 1982. Terminates as of January 1, 1982 provisions requiring the straight-line method of depreciation to be used for property constructed on a site where a certified historic structure was demolished. Qualifies for the investment tax credit certain rehabilitated buildings leased to tax-exempt organizations or to governmental units. Title III: Individual Savings - Subtitle A - Retirement Savings - Revises requirements for the savings retirement deduction. Increases to $2,000 the maximum amount of the income tax deduction for contributions to an individual retirement account (IRA). Allows a $1,000 deduction for contributions by participants in qualified employer pension plans or governmental plans. Provides that in certain cases members of U.S. reserve components and volunteer firefighters shall not be considered governmental plan participants. Allows employees a deduction for employer contributions to a simplified employee pension. Limits such deduction to the lesser of 15 percent of the taxpayer's compensation income on the amount of such contributions (up to $15,000). Repeals provisions relating to the tax deduction for retirement savings for certain married individuals. Provides that the retirement savings deduction shall be computed separately for each spouse in the case of a joint return. Provides that employee IRAs established as part of an employer plan shall be treated as individual retirement accounts for purposes of tax treatment of retirement savings. Allows limited nondeductible contributions to individual retirement accounts. Revises rules relating to the taxation of the beneficiaries of qualified bond purchase plans and for the rollover of the proceeds from redemption of such bonds into IRA's or other annuities. Allows distributions from a terminated owner-employee retirement plan without regard to the five-year ban on contributions by owner-employees. Treats investments by IRA's in collectibles as distributions for income tax purposes. Title IV: Reform Provisions - Repeals the percentage depletion allowance for independent producers and royalty owners of oil and gas. Repeals the option to deduct intangible drilling and development costs in the case of oil and gas wells and geothermal wells. Requires a 14-year amortization of such costs. Exempts costs for the drilling of nonproductive wells from such amortization requirement. Repeals the tax exemption for domestic international sales corporations. Excludes from gross income any foreign oil and gas extraction income of a taxpayer. Disallows any tax credits or deductions attributable to such income or for the amount expended for oil and gas exploration outside of the United States. Disallows the foreign tax credit for excess foreign oil related payments by domestic corporations. Provides that the oil- and gas-related income of a foreign corporation controlled by a U.S. company shall be presently taxed (instead of deferred as under present law). Disallows a deduction for business entertainment expenses without regard as to whether such entertainment furthers a taxpayer's trade or business. Reduces by one-half the allowable deduction for business meals. Provides that for purposes of the alternative tax on corporations and the capital gains deduction for individuals, the sale of nonproductive assets will not qualify for capital gains tax treatment. Defines "productive asset" for purposes of this Act. Specifies that farm real property will not be considered a productive asset unless the taxpayer materially participated in the operation of the business and the taxpayer or a renter engaged in substantial farming activities on such property. Excludes from the definition of "productive asset" stock held by certain holding corporations. Limits the tax deduction for interest paid on home mortgages to $10,000 and for interest paid on consumer credit to $1,500 per taxable year. Repeals the Puerto Rico and U.S. Possessions tax credit for domestic corporations. Increases the excise tax on tobacco and alcohol. Title V: Tax Straddles - Provides that any loss from the holding of one or more positions in certain securities shall be recognized, for income tax deduction purposes, only to the extent that it exceeds the unrealized gain (gain which would be recognized if the position had been sold at its fair market value) from the holding of one or more positions which: (1) were acquired before the disposition resulting in the loss; (2) were offsetting positions; and (3) were not part of an identified straddle as of the end of the taxable year. Defines "offsetting position" to mean that there is a substantial reduction of the taxpayer's risk of loss from holding any position with respect to actively traded securities because the taxpayer also holds one or more other positions with respect to such securities (commonly referred to as a "straddle"). Creates a rebuttable presumption that two or more positions are offsetting, for purposes of the definition of a straddle, if: (1) they are in the same instruments, although they may be in a substantially altered form; (2) they are in debt instruments of a similar maturity or certain other debt instruments; (3) they are sold or marketed as such; (4) the aggregate margin requirement for such positions is lower than the sum of the margin requirement for each such position; or (5) there are other factors, as determined by the Secretary of the Treasury pursuant to regulations, which indicate that such positions are offsetting. Imposes a penalty upon a taxpayer who fails to report each position held with respect to which there is unrealized gain. Disallows as a deduction, and makes chargeable to capital account, interest and carrying charges with respect to personal property which is part of a straddle. Treats as sold at its fair market value any regulated futures contract held by the taxpayer at the close of the taxable year. Treats gain or loss with respect to such a contract as: (1) short-term capital gain or loss, to the extent of 40 percent of the gain or loss; and (2) long-term capital gain or loss, to the extent of 60 percent of the gain or loss. Exempts from the loss recognition provisions of this title any straddle consisting entirely of offsetting positions which are regulated futures contracts. Defines "regulated futures contract" as a contract: (1) which requires delivery of personal property; (2) with respect to which amounts deposited and withdrawn depend on a system of marking to market; and (3) which is traded on or subject to the rules of certain boards of trade. Permits an election to: (1) apply the regulated futures contract rules to all positions of all mixed straddles (straddles at least one, but not all, of the positions of which are regulated futures contracts and with respect to which each position is identified as being part of straddle); or (2) not apply such rules to all regulated futures contracts which are part of all mixed straddles. Exempts from the application of such rules any hedging transaction. Defines "hedging transaction" as any transaction: (1) which is entered into in the course of the trade or business primarily to reduce certain types of risk with respect to property or borrowing; (2) the gain or loss on which is treated as ordinary income or loss; and (3) which is clearly identified as such. Limits the three-year carryback of losses from regulated futures contracts to an amount which: (1) does not exceed the lesser of the capital gain net income from regulated futures contracts or all of the capital gain net income; and (2) does not increase or produce a net operating loss. Provides that obligations of the United States, a State or local government, or a U.S. possession issued on a discount basis and payable without interest in less than one year shall be treated as capital assets in determining tax consequences of gain or loss with respect to such obligations. Treats as ordinary income any gain realized from the sale or exchange of short-term government obligations which does not exceed an amount equal to the ratable share of the excess of the stated redemption price at maturity over the taxpayer's basis. Excludes from capital gains tax treatment gains by a securities dealer from the sale or exchange of any security, unless the security was clearly identified in the dealer's records before the close of the day on which it was acquired as a security held for investment (currently, before the end of the 30th day after the date of acquisition). Extends capital gains treatment to gains or losses attributable to the termination of a right or obligation with respect to personal property of a type which is actively traded and which is or would be a capital asset in the hands of the taxpayer. Title VI: Estate and Gift Tax Provisions - Increases the unified credit against the estate tax from $47,000 to $104,800 by specified annual increments through 1985 for certain farms and small businesses. Repeals the limitations on the estate and gift tax marital deductions. Provides that certain terminable interests qualify for such deductions. Sets forth special rules for: (1) the estate taxation of certain property for which the marital deduction was previously allowed; (2) the tax treatment of disposition of certain life estates; and (3) recovery rights in the case of certain marital deduction property. Title VII: Administrative Provisions - Subtitle A - Prohibition of Disclosure of Audit Methods - Provides that Federal law shall not be construed to require the disclosure of methods for the selection of tax returns for audits. Subtitle B - Changes in Interest Rate for Overpayments and Underpayments - Revises rules for the determination of the interest rate on overpayment or underpayments of taxes. Changes such rate of interest from 90 percent to 100 percent of the prime rate. Subtitle C - Changes in Certain Penalties and in Requirements Relating to Information Returns - Changes certain penalties for providing false information with respect to the withholding of tax. Requires an addition to tax for underpayments of tax by individuals and certain corporations attributable to a valuation overstatement that results in an underpayment of taxes of at least $1,000. Requires an addition to tax for underpayments of tax attributable to a disallowed credit, deduction, or conversion of ordinary income into capital gain. Specifies that such additional tax shall be imposed only in cases where the tax benefits are the principal element of the transaction and the underpayment is at least $5,000. Authorizes the Secretary to waive such tax on a showing that the tax benefit was reasonable. Increases penalties for failure to file certain returns or furnish certain registration statements. Increases the penalty for overstated deposit claims. Subtitle D - Cash Management - Increases from 60 to 80 percent the amount in total tax liability which certain large corporations must pay in estimated taxes. Subtitle E - Financing of Railroad Retirement Systems - Increases the rate of the employer and employee railroad retirement taxes. Allows the Railroad Retirement Account to borrow funds from the Treasury if the balance of such Account is insufficient to pay annuity amounts due. Title VIII: Miscellaneous Provisions - Exempts from income taxation any income resulting from the transfer of stock to an individual exercising a stock option under an incentive stock option plan. Specifies that the optionee may not dispose of stock within two years after an option is granted nor within one year after the transfer of shares. Requires that the optionee be an employee of the corporation granting such option at all times during the period after an option is granted and until three months before such option is exercised. Limits the fair market value of stock for which any employee may be granted options in any year to $75,000. Eliminates such stock options as items of tax preference for purposes of the minimum tax. Extends until January 1, 1983 the time during which a State legislator may qualify for the income tax deduction for living expenses while engaged in legislative business away from his home district. Limits such deduction to 110 percent of the daily amount allowable for Federal employees away from home but serving in the United States. Disallows such deduction for State legislators whose district residence is within 50 miles from the State capital. Permits the exclusion from gross income of interest on certain industrial development bonds if the proceeds of such bonds are used to finance qualified mass commuting vehicles which are leased to a publicly-owned transportation system. Terminates such exclusion after 1984. Extends the targeted jobs credit through 1984. Increases the amount of wages eligible for such credit. Lowers the age requirements for the credit for employment of economically disadvantaged youth. Terminates the credit for youths participating in certain cooperative education programs unless they are economically disadvantaged. Extends eligibility for such credit to registrants of the WIN work incentive program and to recipients of Aid to Families with Dependent Children. Eliminates the age requirement applicable to Vietnam veterans. Repeals provisions limiting qualifying first-year wages to 30 percent of the unemployment insurance wages paid by an employer. Disallows such credit with respect to amounts paid to certain relatives of the taxpayer or shareholders of the taxpayer corporation. Extends through May 31, 1983, the prohibition on the issuance of any regulations by the Internal Revenue Service on the deduction of commuting expenses to temporary job sites. Delays until 1986 the effective date of the requirement that construction period interest and taxes for low-income housing projects be amortized (instead of expensed as an immediate deduction). Authorizes the Secretary of the Treasury to make separate payments to the governments of Guam and the Virgin Islands for lost tax revenues. Authorizes appropriations
Bill· HRH.R. 4322 (97th)referred
United States · United States Congress · 29 July 1981
Amends the Internal Revenue Code to specify that the income tax credit for the production of natural gas from nonconventional sources shall apply to natural gas sold during the taxable year only if such gas is sold at a lawful price which is determined without regard to ceiling prices under the Natural Gas Policy Act of 1978.
Bill· HRH.R. 4303 (97th)referred
United States · United States Congress · 28 July 1981
Amends the Internal Revenue Code to allow a taxpayer a limited income tax credit for college or vocational education expenses. Reduces the amount of such credit by one percent of the amount by which the adjusted gross income of the taxpayer for the taxable year exceeds $22,500. Permits such credit for tuition and fees for education above the twelfth grade level and for books, supplies, and equipment required for coursework. Excludes expenses for meals and lodging and similar personal expenses.
Bill· HRH.R. 4301 (97th)referred
United States · United States Congress · 28 July 1981
Amends the Internal Revenue Code to exempt nonprofit volunteer firefighting or rescue organizations from the excise tax on sales of special fuels, automotive parts, petroleum products, and communication services.
Bill· HRH.R. 4304 (97th)referred
United States · United States Congress · 28 July 1981
Amends the Internal Revenue Code to provide identical income tax rates for single persons and married couples filing joint returns. Limits the earned income that must be reported by a married person filing a separate return to the amount actually earned by that individual.
Bill· HRH.R. 4300 (97th)referred
United States · United States Congress · 28 July 1981
Amends the Internal Revenue Code to allow an employer an income tax credit for the first 12 months of wages paid to a handicapped new employee.
Bill· HRH.R. 4302 (97th)referred
United States · United States Congress · 28 July 1981
Higher Education Funding Act of 1977 - Amends the Internal Revenue Code to allow an income tax deduction for contributions to a qualified higher education fund established by the taxpayer to fund the higher education of his dependents. Limits the amount of the deduction to the least of: (1) $750 times the number of qualified beneficiaries; (2) 15 percent of the taxpayer's adjusted gross income; or (3) $7,500. Provides that a qualified education fund must be established by the taxpayer pursuant to a written plan: (1) which is designed to defray the cost of room, board, and tuition of one or more eligible beneficiaries at an institution of higher education; (2) which provides that no distribution shall be made by the fund (except upon termination) other than to, or on behalf of, eligible beneficiaries; (3) which provides that upon termination of the fund all assets of the fund shall be distributed to the taxpayer or to his estate; (4) which prohibits contributions to the fund in excess of amounts deductible; and (5) under which the taxpayer includes in gross income certain amounts attributable to the fund upon termination of such fund.
Bill· HRH.R. 4277 (97th)open
United States · United States Congress · 27 July 1981
Amends the Tax Reform Act of 1976 to repeal the termination date for the exclusion from gross income of prepaid legal expenses under a qualified group legal services plan.
Bill· HRH.R. 4273 (97th)open
United States · United States Congress · 27 July 1981
Economic Recovery Tax Act of 1981 - Title I: Individual Income Tax Provisions - Subtitle A: Tax Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1982, 1983, and 1984 and thereafter. Reduces the highest marginal tax rate from 70 to 50 percent, effective in 1982. Allows a tax credit of one and one-fourth percent of an individual's tax liability for the tax year of 1981. Repeals the 50 percent maximum tax rate on personal service income, effective in 1982. Reduces the alternative minimum tax and the personal holding company tax to correspond with the reductions in the the highest marginal tax rates. Revises withholding requirements to provide for withholding reductions in 1981, 1982, and 1983. Specifies such reduction as 10 percent in 1982 and 10 percent in 1983. Authorizes the Secretary of the Treasury to issue regulations permitting wage earners to increase or decrease their withholding allowances. Establishes a maximum tax rate on long-term capital gains of 20 percent for sales and exchanges (by taxpayers other than corporations) occurring after June 10, 1981 and before January 1, 1982. Decrease the holding period requirement for long-term capital gain or loss treatment from one-year to six months. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $30,000 or the qualified earned income of the lower income spouse. Specifies that the rate of such deduction shall be five percent, instead of ten percent, in taxable year 1982. Requires annual cost of living adjustments, based on the Consumer Price Index, to individual income tax rates, the zero bracket amount, the personal tax exemption, and the minimum income tax return amount beginning in 1985. Subtitle B: Income Earned Abroad - Increases from $20,000 to $75,000 in 1982 (with annual adjustments up to $95,000 in 1986 and thereafter) the earned income exclusion for U.S. citizens working abroad who are bona fide residents of a foreign country. Repeals the requirement that, as a condition of their employment, such individuals reside in a hardship area. Reduces from 17 to 11 months the residency requirement for such exclusion. Permits the tax exclusion of the housing costs of such individuals in the amount by which the taxpayer's housing costs exceed 16 percent of a GS-14, step 1 salary level for a Federal employee. Permits a tax deduction for excess housing costs which are not excludable. Waives the residency requirements for such exclusion if the Secretary of the Treasury determines that the taxpayer would otherwise have met the residency requirement but for the occurrence of civil unrest, war, or other adverse conditions precluding the normal conduct of business. Repeals the existing income tax deduction for certain living expenses of U.S. citizens abroad. Provides for an income tax exclusion for the value of employer-provided lodging in a camp in cases where satisfactory housing is not generally available. Amends the Foreign Earned Income Act of 1978 to revise reporting requirements to require the Secretary and certain Federal Government agencies to report to specified congressional committees on the operation and effects of the foreign earned income exclusion quadrennially beginning after the enactment of this Act. Subtitle C: Miscellaneous Provisions - Permits taxpayers who do not itemize to claim a deduction from gross income for a specified percentage of their charitable contributions beginning in 1982, limits such deduction to $100 for the years 1982, 1983 and 1984. Terminates such deduction after 1986. Increases the time period for rollover of the gain on the sale of a principal residence from 18 months to 2 years. Increases the amount of the one-time exclusion of gain from sale of a principal residence by an individual who has attained age 55 from $100,000 to $125,000. Title II: Business Incentive Provisions - Subtitle A: Cost Recovery Provisions - Amends the Internal Revenue Code to revise the method for determining useful lives of business assets for purposes of computing allowable depreciation deductions. Replaces the asset depreciation range (ADR) method with a schedule of capital cost recovery periods for four classes of business property. Establishes cost recovery periods for the following classes of business property: (1) three-year property, including certain tangible personal property with a present class life of four years or less or used for research or experimentation; (2) five-year property, including certain tangible personal property which is not three-year property, ten-year property, or 15-year public utility property; (3) ten-year property, including certain public utility property with a present class life of more than 18 but less than 25 years and certain real property with a present class life of 12.5 years or less, and railroad tank cars; (4) 15-year public utility property, including all such property with a present class life of more than 25 years. Sets forth separate recovery schedules for property placed in service before 1985 and for property placed in service in 1985 and thereafter. Establishes as a separate class of business property 15-year real property which does not have a present class life of 12.5 years or less. Directs the Secretary to prescribe a schedule of recovery for such property which provides for a 15-year recovery period and utilizes the 175 percent (200 percent for low-income housing) declining balance method of depreciation in the early years of recovery with a switch to the straight-line method in the remaining years. Permits taxpayers to elect to use the straight-line method of depreciation with specified recovery periods in lieu of the prescribed accelerated method. Excludes from eligibility for accelerated cost recovery the following types of property: (1) property placed in service before January 1, 1981; (2) property depreciable on a basis other than time; (3) public utility property for which the normalization method of accounting is not used; and (4) certain property placed in service prior to 1981 which is transferred or leased in a transaction occurring after 1981 which does not alter its use. Revises component depreciation rules to provide that the taxpayer must utilize the same recovery period and method of depreciation for a building and its structural components. Allows separate depreciation of substantial improvements. Provides special rules for the depreciation of recovery property used predominantly outside of the United States. Repeals the retirement-replacement-betterment methods of depreciation allowed for certain types of property. Specifies that such property shall be depreciated using a ratable method. Sets forth rules for determining the eligibility of lessors of recovery property for accelerated depreciation deductions and for the investment tax credit. Specifies that the salvage value of cost recovery property shall not be taken into account in computing allowable depreciation. Includes mass commuting vehicles as qualified leased property. Directs the Secretary to prescribe leasing regulations. Provides special rules for determining allowable deductions for recovery property in the case of certain corporate transfers and liquidations. Provides that the gain on the disposition of single purpose agricultural or horticultural facilities and petroleum product storage facilities shall be treated as ordinary income to the extent of prior depreciation taken. Repeals the Secretary's authority to prescribe regulations on the treatment of repair allowances as presently deductible business expenses. Permits a taxpayer to elect to expense (i.e. currently deduct) the cost of new or used tangible personal property used in the taxpayer's business during a taxable year in lieu of current provisions permitting additional first year depreciation. Sets the amount of such deduction at $5000 in 1982 with biennial increments of $2500 up to $10,000 in 1986. Requires the recapture as ordinary income of excess depreciation from recovery property which is subsequently sold or exchanged. Treats the accelerated cost recovery deduction as an item of tax preference for purposes of the minimum tax. Revises the method of computing the adjustment to earnings and profits for depreciation. Specifies that such adjustment shall be determined using the straight-line method of depreciation over prescribed extended recovery periods. Extends the carryover periods for certain net operating losses and tax credits. Subtitle B: Investment Tax Credit Provisions - Revises the applicable percentage for determination of the investment tax credit to make eligible for such credit: (1) 100 percent of the basis of ten-year, five-year recovery property, or 15-year public utility; and (2) 60 percent of the basis of three-year recovery property. Revises the progress expenditure rules to eliminate the useful life requirement for depreciable property being constructed by or for a taxpayer for use in trade or business (qualified progress expenditure property) and to apply to such property the revised percentages for determining the investment tax credit under this Act. Qualifies petroleum product storage facilities for the investment tax credit. Limits the amount of the investment tax credit to the amount that the taxpayer has at risk. Sets forth special at risk limitations in the case of certain third party lenders. Revises the recapture rules for recovery property eligible for the investment tax credit. Prescribes recapture percentages for recovery property which ceases to be investment tax credit property based on the type of property and the amount of time such property is in service. Increases the investment tax credit for qualified rehabilitation expenditures based upon the age of a building or its certification as a historic structure. Repeals the special 60-month amortization rules for certified historic structures and rules permitting accelerated depreciation for rehabilitation of certified historic structures. Increases the limit on the amount of used property eligible for the investment tax credit. Subtitle C: Incentives for Research and Experimentation - Allows a nonrefundable income tax credit for 25 percent of the qualified research expenses incurred by a taxpayer in carrying on any trade or business to the extent that such expenses exceed the average amount of the taxpayers expenses in a specified base period. Defines "qualified research expenses" as amount paid or incurred for in-house and contract research. Allows such credit for basic research contracted out to colleges, universities, and tax-exempt scientific research institutes. Excludes from eligibility for such credit research in the social sciences or humanities, and research funded by any other person or governmental entity. Provides for a three-year carryback and a fifteen-year carryover of any unused credit amounts. Terminates such credit after 1985. Revises the limits on the allowable deduction for corporate charitable contributions of inventory property which is contributed to an institution of higher education and used for research purposes. Sets forth eligibility requirements for such deduction including the following: (1) that such property be scientific equipment or apparatus; (2) that the donee use such property in the United States; and (3) that the use of the property be for research in the physical or biological sciences. Excludes certain small business corporations, personal holding companies, and service organizations from eligibility for such increased deduction. Requires that all research and experimentation expenditures which are paid or incurred for research conducted in the United States shall be allocated and apportioned to income from sources within the United States. Subtitle D: Small Business Provisions - Reduces the corporate income tax rates for corporations with a taxable income of $50,000 or less. Increases from $150,000 to $250,000 the amount which corporations may accumulate for reasonable needs of the business without being subject to the tax on accumulated earnings. Disallows such increase for corporations performing services in the areas of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting. Increases the allowable number of shareholders in a Subchapter S corporation from 15 to 25. Permits qualified trusts to be shareholders of Subchapter S corporations. Allows a beneficiary of such a trust to elect to be treated as the owner of stock in any Subchapter S corporation. Terminates the status of a qualified Subchapter S trust at any time during which the trust owns no Subchapter S corporation stock or the corporation ceases to qualify as such. Revises the Last-In-first-Out (LIFO) inventory accounting rules. Directs the Secretary to prescribe regulations permitting the use of certain governmental indexes in inventorying goods under such method. Allows businesses with average gross receipts of $1,000,000 for three years (ending with the taxable year) to elect one inventory pool for purposes of dollar value LIFO inventory accounting. Permits three-year averaging of inventory value for taxpayers who elect LIFO accounting. Requires the Secretary to study and report to Congress on simplified methods of tax accounting for inventory. Subtitle E: Savings and Loan Associations - Sets forth special rules for the tax treatment of reorganizations involving financially troubled thrift institutions. Permits tax-free reorganizations of building and loan associations, cooperative banks, and mutual savings banks which are subject to the jurisdiction of the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation without regard to judicially-created requirements as to the distribution of stocks and securities of the transferee corporation. Specifies rules for the limitation of net operating loss carryovers for certain financial institutions in reorganization. Exempts distributions to the Federal Savings and Loan Insurance Corporation in redemption of certain interests in a domestic building and loan association from recapture requirements for distributions out of excess bad debt reserves. Excludes from the gross income of a domestic building and loan association all money or property contributed to such association by the Federal Savings and Loan Insurance Corporation under its financial assistance program without reduction in the basis of the association's property. Subtitle F: Stock Options - Revises the tax treatment of restricted stock options. Extends the tax exclusion for such options to those exercised or granted after December 31, 1980. Limits the aggregate fair market value of the stock for which an employee may be granted options to $75,000 in the case of an option granted after December 31, 1980 and to $150,000 in the case of an option granted before July 24, 1981, and exercised on or after July 24, 1981. Revises the special rule for certain options granted after December 31, 1963, to limit such rule to those options granted since that date and before January 1, 1981. Repeals the termination date for exercising such an option. Title III: Savings Provisions - Subtitle A: Interest Exclusion - Excludes from gross income interest received on a savings certificate issued after September 30, 1981 and before January 1, 1983 by a qualified bank, savings and loan institution, credit union, or industrial loan association or bank. Disallows the issuance of tax-exempt savings certificates by foreign branches and international banking facilities of U.S. banks. Requires that such certificates be made available in $500 denominations, have a maturity of one year, and have an investment yield which does not exceed 70 percent of the Treasury bill rate. Permits such exclusion only to the extent that the interest income received by the taxpayer exceeds the amount of such income received in the previous year, up to $1000 ($2000 for joint returns). Requires institutions issuing such certificates to invest 75 percent of the proceeds from such certificates or other qualified net savings in residential financing and agricultural loans. Requires the Secretary to report to Congress on such exemption's effectiveness in generating additional savings. Provides for the exclusion from gross income of 15 percent of interest from specified sources, beginning in 1985. Limits the amount of such exclusion to 15 percent of the lesser of $3,000 ($6000 for joint returns) or the amount of net interest received by the taxpayer. Amends the Crude Oil Windfall Profit Tax Act of 1980 to repeal the partial exclusion of interest from gross income. Subtitle B: Retirement Savings Provisions - Revises rules for the retirement savings deduction. Increases the amount of the allowable tax deduction for contributions to an individual retirement account (IRA) for individuals not covered by other plans to the lesser of $2000 ($2,250 for a spousal IRA) or the individual's compensation income. Allows employees a deduction for employer contributions to a simplified employee pension. Limits such deduction to the lesser of 15 percent of the taxpayers' compensation or the amount of such contribution (up to $7,500). Repeals existing provisions relating to the tax deduction for retirement savings for certain married individuals. Requires that the maximum deduction for retirement savings contributions by married individuals be computed separately for each individual. Increases the limit on deductible contributions to self-employed retirement plans from $7,500 to $15,000 or 15 percent of the earned income derived by employees from the trade or business, whichever is less. Increases the amount of compensation which may be used to determine annual benefit accruals for purposes of applying limits on deductible contributions. Revises rules relating to the taxation of the beneficiaries of qualified bond purchase plans and for the rollover of the proceeds from redemption of such bonds into IRA's or other annuities. Subtitle C: Reinvestment of Dividends in Public Utilities - Permits the exclusion from income of up to $1,500 ($3,000 for joint returns) per year of public utility stock dividends by shareholders who choose to receive a common stock dividend rather than other property under a qualified plan established by a domestic public utility corporation. Requires that the stock be newly issued common stock and that the number of shares distributed to any shareholder be determined by reference to a value which is not less than 95 and not more than 105 percent of the stock's fair market value before distribution. Disallows such exclusion if the corporation has repurchased any of its stock within one year before or after the distribution date unless the corporation establishes a business purpose for such purchase. Excludes trusts and estates, nonresident aliens, and five percent shareholders from eligibility for such exclusion. Provides for the recapture of tax benefits upon disposition of such stock. Title IV: Estate and Gift Tax Provisions - Subtitle A: Increase in Unified Credit; Rate Reduction; Unlimited Marital Deduction - Increases the unified credit against the estate and gift taxes from $47,000 to $192,800 by specified annual increments through 1987. Increases from $175,000 to $600,000, by specified annual increments through 1987, the minimum gross estate requirement for filing of a return. Reduces the maximum estate and gift tax rates to 50 percent by specified annual decrements through 1985. Repeals the existing limitations on the marital deduction for gift and estate taxes. Revises the definition of "qualified joint interest" for purposes of the valuation of interests in property held by the decedent and the decedent's spouse. Qualifies certain terminable interests for the marital deduction. Requires the inclusion in the gross estate of any property in which the decedent had an income interest for life if: (1) the marital deduction was allowed with respect to the transfer of such property to the decedent; and (2) the disposition of the income interest in such property is not considered a transfer of such property under other provisions of the Internal Revenue Code. Provides that any disposition of an income interest for life in any property shall be treated as a transfer of such property if the marital deduction was allowed with respect to the transfer of such property to the donor. Provides for a right of recovery of estate and gift tax in the case of certain marital deduction property. Subtitle B: Other Estate Tax Provisions - Increases the maximum reduction (currently $500,000) in fair market value under the special estate tax valuation based on use for certain farms and small businesses annually to $1,000,000 in 1983 and thereafter. Allows property put to a qualified use by a family member to qualify for special use valuation. Qualifies estates of decedents who were disabled or retired for the special valuation of certain farms based on use if such decedents materially participated in the operation of the farm for five out of eight years preceding the year in which they became disabled or eligible for disability benefits under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act. Permits the spouse of a decedent to use such valuation if the spouse takes over active management upon the decedent's death. Reduces from 15 to ten years the length of time a qualified property must be held and put to a qualified use following the decedent's death before it can be disposed of without incurring a recapture of estate tax benefits. Permits such period to begin on the later of the decedent's death or on a date within one year after death when the qualified use begins. Permits active management rather than material participation as a test for qualification of the estate for spouses, children under 21, students, and disabled individuals who receive property from a decedent who qualified for special use valuation. Allows the like kind exchange of property without loss of special use valuation eligibility. Allows valuation based on net crop share rentals as an alternative method of valuing farms. Repeals the requirement that an heir elect special treatment for involuntary conversions of qualified real property, thus making such treatment automatic upon such conversion. Includes in the value of woodlands which qualify for the special use valuation the value of the trees growing on such property. Requires the recapture of estate tax benefits upon the disposition or severance of standing timber on such property. Permits an increase in basis of specially valued property on which a recapture tax is paid. Revises the definition of "family member" for purposes of the special use valuation. Qualifies certain property transferred to discretionary trust and certain property purchased from a decedent's estate for such valuation. Requires that an election to use special valuation be made on the decedents' estate tax return (rather than by the due date of that return as under present law). Provides that any period of ownership, qualified use, or material participation in the operation of a farm or other business by the decedent or family member shall be applied to qualified replacement property in the case of a like-kind exchange or involuntary conversion of the original property. Limits the recognition of gain to an estate on the transfer of special use valuation property to the heir of such estate to the extent that the fair market value of such property exceeds the value of such property for estate tax purposes computed without regard to the special use valuation rules. Allows an executor of an estate to request the Secretary to audit the fair market value of any special valuation property. Provides that if the executor and the Secretary cannot agree as to the value of such property the executor may bring an action in the Tax Court for a declaration of the fair market value of such property. Makes such declaration final and conclusive, and unreviewable by any other court. Provides that if the executor should fail to contest the Secretary's valuation of such property then the value as so determined by the Secretary shall be binding and conclusive. Provides that if the Secretary should fail to disagree with value of the property as claimed by the executor then the value as so determined by the executor shall be binding and conclusive. Modifies the alternate extension of time for payment of the estate tax where the estate consists largely of an interest in a closely held business to: (1) allow an installment payment election if the value of the interest in the closely held business is 35 percent of the value of the gross estate; (2) revise the formula regarding the inclusion in the value of a gross estate of interests in two or more closely held businesses; (3) increase to 50 percent the value of an interest disposed of which will accelerate the payment of tax; (4) permit payment, but with a penalty, of an installment within six months after the due date; and (5) provide the payment of tax will not be accelerated upon the death of decedent's heir or a subsequent transferee if the interest passes to a family member. Allows an executor of an estate to petition the Tax Court for a declaratory judgment concerning: (1) whether an estate is eligible for the extension of time for payment of the estate tax; (2) the amount of the adjusted gross estate determined on the basis of the facts in existence on the date for filing the return of tax; or (3) whether there is an acceleration of the time for payment. Allows such remedy only after the petitioner has exhausted all available administrative remedies. Makes any such declaratory judgement final and conclusive, and unreviewable by any other court. Provides that, for purposes of the estate and gift tax charitable deduction, a work of art and the copyright on such work of art shall be treated as separate properties. Provides that the gifts made within three years of a decedent's death shall not be included in the gross estate of a decedent dying after 1981. Disallows such exclusion for certain transfers. Allows a step-up in basis for appreciated property acquired by the decedent by gift within one year of death. Allows a disclaimer of an interest in property for estate tax purposes in specified circumstances. Repeals the estate tax deduction for bequests to certain minor children. Subtitle C: Other Gift Tax Provisions - Increases from $3,000 to $10,000 the annual gift tax exclusion. Provides an unlimited tax exclusion for payments of educational expenses and medical expenses. Permits the payment of gift taxes annually rather than quarterly. Title V: Tax Straddles - Amends the Internal Revenue Code to allow taxpayers to deduct straddle losses only to the extent of the sum of straddle gains and net non-straddle commodity gains. Permits the carry forward of any disallowed straddle losses. Defines "straddle transaction" as the sale, exchange, or disposition of: (1) a futures contract; (2) a forward contract; (3) a commodity (including metals); (4) Treasury bills and other debt instruments; (5) currency; or (6) any interest in such assets. Exempts hedging transactions from the rule limiting straddle losses. Specifies that syndicates are not entitled to the hedging exemption. Disallows as a deduction, and makes chargeable to capital account, interest and carrying charges with respect to personal property which is part of a straddle. Exempts hedging transactions from such capitalization rule. Exempts futures traders from the capitalization rule and sets forth special rules allowing such traders to offset gains from commodity-related transactions. States that a taxpayer shall be considered to hold an offsetting position if there is a substantial reduction of the taxpayer's risk of loss from holding any position with respect to personal property because the taxpayer also holds one or more other positions with respect to personal property (commodities, evidences of indebtedness, currency, and other types of personal property). Creates a rebuttable presumption that two or more positions are offsetting if: (1) the positions are in the same personal property, even if in an altered form; (2) the positions are sold or marketed as offsetting positions; (3) the aggregate margin requirement for the positions is less than the sum of the margin requirements for each position; (4) the positions are in debt instruments; or (5) the positions are determined under regulations prescribed by the Secretary of the Treasury to be offsetting positions. Provides that obligations of the United States, a State or local government, or a U.S. possession issued on a discount basis and payable without interest in less than one year shall be treated as capital assets in determining tax consequences of gain or loss with respect to such obligations. Specifies that the discount on such obligations shall be treated as ordinary income. Excludes from capital gains tax treatment gain by a securities dealer from the sale or exchange of any security, unless the security was clearly identified in the dealer's records before the end of the day after the date of acquisition as a security held for investment (currently, before the end of the 30th day after the date of acquisition). States that the straddle loss limitations shall apply to property acquired and positions established after January 27, 1981. Requires the Secretary of the Treasury to study and report to Congress on the effects of such limitation. Title VI: Energy Provisions - Subtitle A: Changes in Windfall Profit Tax - Increases from $1000 to $2500 the amount of the credit for any windfall profit tax paid in connection with taxable crude oil which is attributable to a qualified royalty interest. Exempts certain royalty owners from windfall profit tax withholding. Provides a reduction in estimated income tax and withholding of income tax for individuals and corporations eligible for such credit. Reduces from 30 to 15 percent the amount of the windfall profit tax on newly discovered tier three oil by specified annual increments through 1986. Title VII: Administrative Provisions - Subtitle A: Prohibition of Disclosure of Audit Methods - Provides that Federal law shall not be construed to require the disclosure of methods for the selection of tax returns for audits. Subtitle B: Changes in Interest Rate for Overpayments and Underpayments - Revises rules for the determination of the interest rate on overpayments or underpayments of taxes. Changes such rate of interest from 90 percent to 100 percent of the prime rate. Subtitle C: Changes in Certain Penalties and in Requirements Relating to Returns - Changes certain penalties for providing false information with respect to the withholding of tax. Requires an addition to tax for underpayments of tax by individuals and certain corporations attributable to a valuation overstatement that results in an underpayment of taxes of at least $1000. Requires an addition to tax for underpayments attributable to negligent or intentional disregard of rules or regulations. Increases penalties for failure to file certain returns or furnish certain registration statements. Increases the penalty for overstated deposit claims. Provides that no declaration of estimated tax by individuals is required if such estimated tax is less than a specified amount. Subtitle D: Cash Management - Increases from 60 to 80 percent the amount in total tax liability which certain large corporations must pay in estimated taxes. Subtitle E: Financing of Railroad Retirement System - Increases the rate of the employer and employee railroad retirement taxes. Allows the Railroad Retirement Account to borrow funds from the Treasury if the balance of such Account is insufficient to pay annuity amounts due. Revises the definition of "compensation" for purposes of railroad retirement taxes. Title VIII: Miscellaneous Provisions - Allows motor carriers an income tax deduction for the value of motor carrier operating authorities held by the taxpayer on July 1, 1980. Requires the deduction of such amount over a 60-month period. Allows State legislators an income tax deduction for travel expenses incurred while engaged in legislative business away from their home district. Limits such deduction to 110 percent of the daily amount allowable for State employees or the daily amount allowable for Federal employees away from home but serving in the United States. Disallows such deduction for State legislators whose district residence is within 50 miles from the State capitol building. Permits the exclusion from gross income of interest on certain industrial development bonds if the proceeds of such bonds are used to finance qualified mass commuting vehicles which are leased to a publicly-owned transportation system. Terminates such exclusion after 1984. Terminates the new jobs tax credit in 1981 in the case of youths participating in a qualified cooperative education program and in 1983 in the case of any other members of a targeted group. Includes WIN registrants and involuntarily terminated CETA employees as targeted groups. Eliminates the age requirement applicable to Vietnam veterans. Repeals provisions limiting qualifying first year wages to 30 percent of the unemployment insurance wages paid by an employer. Disallows such credit with respect to amounts paid to certain relatives of the taxpayer or shareholders of the taxpayer corporation. Extends through May 31, 1983, the prohibition on the issuance of any regulations by the Internal Revenue Service concerning: (1) employer fringe benefits; and (2) the deduction of commuting expenses to temporary job sites. Extends until 1983 the effective date of the requirement that construction period interest and taxes for low-income housing projects be amortized (instead of expensed as an immediate deduction). Revises rules relating to substantial risks of forfeiture of property transferred to employees in connection with the performance of services for purposes of the income taxation of such property. Provides that bonds issued by a volunteer fire department to finance the acquisition, construction, reconstruction, or improvement of firefighting property shall be treated as obligations of a local government and the interest on such bonds shall be excluded from gross income. Provides that a volunteer fire department qualifies for such tax treatment of its bonds if it: (1) is organized and operated to provide firefighting services in an area which does not have any other firefighting services; (2) is required by a local government to furnish firefighting services; (3) receives over half of its funding from local government; and (4) makes no charge for its services.
Bill· HRH.R. 4274 (97th)referred
United States · United States Congress · 27 July 1981
Amends the Internal Revenue Code to allow individual taxpayers an income tax deduction from gross income for commuting expenses. Defines "commuting expenses" as the amounts paid or incurred for the transportation of such taxpayers between their residence and their principal place of employment or self-employment.
Bill· SS. 1517 (97th)referred
United States · United States Congress · 24 July 1981
Amends the Internal Revenue Code to qualify for the investment tax credit public utility property which is otherwise qualified as solar, wind, geothermal, or ocean thermal energy property.
Bill· HRH.R. 4269 (97th)open
United States · United States Congress · 24 July 1981
Tax Reduction and Reform Act of 1981 - Title I: Individual Income Tax Provisions - Subtitle A - Tax Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates in 1982, with further reductions in 1983 and thereafter. Authorizes the Secretary of the Treasury to issue regulations permitting workers to increase or decrease their withholding allowances. Reduces the highest marginal tax rate on all types of income from 70 to 68 percent in 1982 and to 67 percent in 1983. Increases the zero bracket amount for each category of taxpayers. Increases the income levels at which a taxpayer is required to file an income tax return. Increases the personal exemption. Subtitle B - Increase in Earned Income Credit; Deduction for Two-Earner Married Couples; Etc. - Increases the rate of the earned income tax credit from ten to 11 percent of the first $5,000 of earnings beginning in 1982. Increases the maximum amount of such credit. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $30,000 or the earned income of the lower income spouse, beginning in 1983. Specifies that deduction shall be five percent of such amount in 1982. Increases the amount of the tax credit allowable for expenses for household and dependent care services necessary for gainful employment, beginning in 1982. Permits the credit for the care of certain dependents outside the taxpayer's home. Extends until January 1, 1983, the time during which a State legislator may qualify for the income tax deduction for living expenses while engaged in legislative business away from his home district. Limits such deduction to 110 percent of the daily amount allowable for Federal employees away from home but serving in the United States. Disallows such deduction for State legislators whose district residence is within 50 miles from the State capital. Title II: Business Provisions - Subtitle A - Depreciation Reform - Amends the Internal Revenue Code to replace the current system of depreciation with a first-year income tax deduction equal to the basis of personal property used in a trade or business or held for the production of income (expense-method property) which is placed in service after 1980. Phases in such expensing method by limiting the income tax deduction to a specified percentage of the basis of such property each year through 1990. Permits the first $25,000 worth of qualified assets to be expensed in the year they are purchased or placed in service without regard to the phase-in period. Excludes from eligibility for expensing: (1) property used predominantly outside of the United States; (2) certain property held by noncorporate lessors; (3) certain property not eligible for the investment tax credit; (4) certain public utility property; (5) property acquired at death; (6) certain livestock; (7) railroad tank cars; (8) oil pipelines; and (9) certain films. Disqualifies expense-method property from eligibility for the investment tax credit after 1985. Exempts accelerated depreciation on leased personal property from classification as an item of tax preference for purposes of computing the minimum tax. Revises the treatment of property depreciated under the retirement-replacement-betterment method to allow a five-year amortization of the existing adjusted basis of such property. Repeals the retirement-replacement-betterment method of depreciation. Repeals the additional first-year depreciation allowance for small business. Allows the depreciation of real property based on a useful life of 20 years. Permits the taxpayer to elect either the straight-line or declining balance method of depreciation for such property. Specifies that the declining balance method shall be at a rate of 200 percent of the straight-line depreciation rate for low- income housing and targeted area property and 150 percent for all other property. Revises component depreciation rules to provide that the taxpayer must utilize the same recovery period and method of depreciation for a building and its structural components. Allows separate depreciation of substantial improvements made after the property has been in service for three years. Excludes the following types of property from eligibility for accelerated depreciation: (1) property with a class life of 12 1/2 years or less; (2) mobile homes; and (3) property eligible for amortization. Establishes a method of simplified cost recovery for long-life public utility property. Establishes the following two classes and recovery periods for such property: (1) Class 1 property which has a present class life of more than 18 but less than 25 years, 15 years recovery; and (2) Class 2 property which has a present class life of over 25 years, ten year recovery. Excludes from eligibility for accelerated depreciation public utility property for which the normalization method of accounting is not used and property eligible for amortization. Requires the taxpayer to establish a recovery account for each class of public utility recovery property. Provides special rules for the depreciation of property not eligible for the expense- method of cost recovery. Sets forth guidelines for the determination of the useful life of such property. Provides that, for purposes of computing the earnings and profits of a corporation in any taxable year, the useful life of expense-method property shall be the lower life limit of such property and the useful life of real property shall be 35 years. Subtitle B - Corporate Rate Reductions for Small Businesses - Reduces corporate income tax rates for 1982 through 1984 and thereafter. Subtitle C - Credit for Rehabilitation Expenditures - Increases the investment tax credit percentage for rehabilitation expenditures to 15 percent for 30-year buildings, 20 percent for 40-year buildings, and 25 percent for certified historic structures, effective in 1982. Qualifies for the investment tax credit certain rehabilitated buildings leased to tax-exempt organizations or to governmental units. Subtitle D - Incentives for Research and Experimentation - Allows a nonrefundable income tax credit for 25 percent of the qualified research expenses incurred by a taxpayer in carrying on any trade or business to the extent that such expenses exceed the average amount of the taxpayer's expenses in a specified base period. Defines "qualified research expenses" as amounts paid or incurred for in-house and contract research. Allows such credit for basic research contracted out to colleges, universities, and tax-exempt scientific research institutes. Excludes from eligibility for such credit research conducted outside of the United States, research in the social sciences or humanities, exploration for ore or other minerals, and activities performed by the taxpayer for another person. Provides for a carryover and carry back of any unused credit. Terminates such credit after 1985. Title III - Estate and Gift Tax Provisions - Amends the Internal Revenue Code to increase the unified credit against the estate tax from $47,000 to $104,800 by specified annual increments through 1985 for farms and closely held businesses. Repeals the limitations on the estate and gift tax marital deduction. Qualifies certain terminable interests for such deduction. Redefines "qualified joint interest" for purposes of the 50 percent valuation of interests in property held by the decedent and the decedent's spouse. Sets forth special rules for: (1) the estate taxation of certain property for which the marital deduction was previously allowed: (2) the tax treatment of disposition of certain life estates; and (3) recovery rights in the case of certain marital deduction property. Title IV: Tax Reform - Subtitle A - Repeal of Percentage Depletion for Oil and Gas - Repeals the percentage depletion allowance for oil and gas, effective in 1982. Subtitle B - Tax Straddles - Provides that any loss from the holding of one or more positions in certain securities shall be recognized, for income tax deduction purposes, only to the extent that it exceeds the unrealized gain (gain which would be recognized if the position has been sold at its fair market value) from the holding of one or more positions which: (1) were acquired before the disposition resulting in the loss; (2) were offsetting positions; and (3) were not part of a identified straddle as of the end of the taxable year. Defines "offsetting position" to mean that there is a substantial reduction of the taxpayer's risk of loss from holding any position with respect to personal property (personal property of a type which is actively traded) because the taxpayer also holds one or more other positions with respect to personal property (commonly referred to as a "straddle"). Creates a rebuttable presumption that two or more positions are offsetting, for purposes of the definition of a straddle, if: (1) they are in the same personal property, although they may be in a substantially altered form: (2) they are in debt instruments of a similar maturity or certain other debt instruments; (3) they are sold or marketed as such; (4) the aggregate margin requirement for such positions is lower than the sum of the margin requirement for each such position; or (5) there are other factors, as determined by the Secretary of the Treasury pursuant to regulation, which indicate that such positions are offsetting. Imposes a penalty upon a taxpayer who fails to report each position held with respect to which there is unrealized gain. Disallows as a deduction, and makes chargeable to capital account, interest and carrying charges with respect to personal property which is part of a straddle. Treats as sold at its fair market value any regulated futures contract held by the taxpayer at the close of the taxable year. Treats gain or loss with respect to such a contract as: (1) short-term capital gain or loss, to the extent of 50 percent of the gain or loss; and (2) long-term capital gain or loss, to the extent of 50 percent of the gain or loss. Exempts from the loss recognition provisions of this title any straddle consisting entirely of offsetting positions which are regulated futures contracts. Defines "regulated futures contracts" as contracts: (1) which require delivery of personal property; (2) with respect to which amounts deposited and withdrawn depend on a system of marking to market; and (3) which is traded on or subject to the rules of certain boards of trade. Permits an election to: (1) apply the regulated futures contract rules to all positions of all mixed straddles (straddles at least one, but not all, of the positions of which are regulated futures contracts and with respect to which each position is identified as being part of straddle); or (2) not apply such rules to all regulated futures contracts which are part of all mixed straddles. Exempts from the application of such sales any hedging transaction. Defines "hedging transaction" as any transaction: (1) which is entered into in the course of the trade or business primarily to reduce certain types of risk with respect to property or borrowing; (2) the gain or loss on which is treated as ordinary income or loss; and (3) which is clearly identified as such. Limits the three-year carryback of losses from regulated futures contracts to an amount which: (1) does not exceed the lesser of the capital gain net income from regulated futures contracts or all of the capital gain net income; and (2) does not increase or produce a net operating loss. Provides that obligations of the United States, a State or local government, or a U.S. possession issued on a discount basis and payable without interest in less than one year shall be treated as capital assets in determining tax consequences of gain or loss with respect to such obligations. Treates as ordinary income any gain realized from the sale or exchange of short-term government obligations which does not exceed an amount equal to the ratable share of the excess of the stated redemption price at maturity over the taxpayer's basis. Excludes from capital gains tax treatment gains by a securities dealer from the sale or exchange of any security, unless the security was clearly identified in the dealer's records before the close of the day on which it was acquired as a security held for investment (currently, before the end of the date of acquisition). Extends capital gains treatment to gains or losses attributable to the termination of a right or obligation with respect to personal property of a type which is actively traded and which is or would be a capital asset in the hands of the taxpayer. Subtitle C - Treatment of Foreign Oil and Gas Income - Foreign Oil and Gas Tax Act of 1981 - Excludes from gross income any foreign oil and gas extraction income of a taxpayer. Disallows any tax credits or deductions attributable to such income or for the amount expended for oil and gas exploration outside of the United States. Disallows the foreign tax credit for excess foreign oil related payments by domestic corporations. Provides that the oil- and gas-related income of a foreign Corporation controlled by a U.S. company shall be presently taxed (instead of deferred as under present law). Subtitle D - Cash Management - Increases from 60 to 80 percent the amount in total tax liability which certain large corporations must pay in estimated taxes. Title V: Financing of Railroad Retirement System - Increases the rate of the employer and employee railroad retirement taxes. Allows the Railroad Retirement Account to borrow funds from the Treasury if the balance of such Account is insufficient to pay annuity amounts due.
Bill· HRH.R. 4260 (97th)open
United States · United States Congress · 24 July 1981
Economic Recovery Tax Act of 1981- Title I: Individual Income Tax Provisions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1982, 1983, and 1984 and thereafter. Reduces the highest marginal tax rate on all types of income from 70 to 50 percent, effective in 1982. Repeals the 50 percent maximum tax rate on personal service income, effective in 1982. Reduces the alternative minimum tax and the personal holding company tax to correspond with the reductions in the highest marginal tax rates. Establishes a maximum tax rate on long-term capital gains of 20 percent for sales and exchanges occurring and or after June 9, 1981. Decreases from one year to six months the holding period required for long-term capital gain or loss treatment. Allows a tax credit equal to one and one-fourth of an individual's regular tax liability for taxable year 1981. Revises withholding requirements to provide for withholding reductions of five percent in 1981, ten percent in 1982, and ten percent in 1983. Authorizes the Secretary of the Treasury to issue regulations permitting workers to increase or decrease their withholding allowances. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $30,000 or the earned income of the lower income spouse. Specifies that the rate of such deduction will be five percent, instead of ten, in taxable year 1982. Requires annual cost of living adjustments, based on the Consumer Price Index, to individual income tax rates, the personal tax exemption, withholding requirements, and minimum income tax return amounts, beginning in 1985. Increases from $20,000 to $75,000 in 1982 (with annual adjustments up to $95,000 in 1986 and thereafter) the earned income exclusion for U.S. citizens working abroad who are bona fide residents of a foreign country. Repeals the requirement that, as a condition of their employment, such individuals reside in a hardship area. Reduces from 17 to 11 months the residency requirement for such exclusion. Permits the tax exclusion of the housing costs of such individuals in the amount by which the taxpayer's housing costs exceed 16 percent of a GS-14, step 1 salary level for a Federal employee. Permits a tax deduction for excess housing costs which are not excludable. Waives the residency requirements for such exclusion if the Secretary of the Treasury determines that the taxpayer would otherwise have met the residency requirement but for the occurrence of civil unrest, war, or other adverse conditions precluding the normal conduct of business. Repeals the existing income tax deduction for certain living expenses of U.S. citizens abroad. Provides for an income tax exclusion for the value of employer-provided lodging in a camp in cases where satisfactory housing is not generally available. Amends the Foreign Earned Income Act of 1978 to revise the reporting requirements to provide that the Secretary and certain Federal Government agencies report to specified congressional committees on the operation and effects of the foreign earned income exclusion quadrennially beginning after the enactment of this Act. Permits taxpayers who do not itemize income tax deductions to claim a deduction from gross income for a specified percentage of their charitable contributions. Terminates such deduction for such taxpayers after 1986. Increases from $100,000 to $125,000 the amount of the one-time exclusion of gain from sale of a principal residence by an individual who has attained age 55. Increases from 18 months to 2 years the rollover period for deferral of tax on gain from the role of a principal residence. Title II: Business Incentive Provisions - Amends the Internal Revenue Code to revise the method for determining useful lives of business assets for purposes of computing allowable depreciation deductions. Replaces the asset depreciation range (ADR) method with a schedule of capital cost recovery periods for four classes of business property. Establishes cost recovery periods for the following classes of business property: (1) three-year property, including certain tangible personal property with a present class life of four years or less or property used for research or experimentation; (2) five- year property, including certain tangible personal property which is not three-year property, ten-year property or 15 year public utility property; (3) ten-year property, including certain real property, public utility property or three-year property with a present class life of more than 18 but less than 25 years, certain real property with a present class life of 12.5 years or less, and railroad tank cars; (4) 15-year public utility property, including all personal property with a present class life of more than 25 years. Sets forth separate recovery schedules for property placed in service before 1985 and property placed in service after 1985. Establishes as a separate class of business property 15-year real property which includes real property with a present class life of more than 12.5 years. Directs the Secretary to prescribe a schedule of recovery for such property which provides for a 15-year recovery period and which utilizes the declining balance method of depreciation in the early years of recovery with a switch to the straight-line method in the remaining years. Permits taxpayers to elect to use the straight-line method of depreciation with specified other recovery periods in lieu of the prescribed accelerated method. Defines "unadjusted basis" for purposes of determining gain or loss on the disposition of accelerated recovery property. Sets forth rules for the nonrecognition of gain on the disposition of assets from mass asset accounts. Excludes from eligibility for accelerated cost recovery the following types of property: (1) property placed in service before January 1, 1981; (2) property depreciable on a basis other than time; (3) public utility property for which the normalization method of accounting is not used; (4) certain property placed in service prior to 1981 which is transferred or leased in a transaction occurring after 1981 which does not alter its use; and (5) certain property transferred in corporate liquidations and reorganizations, and certain contributions to and distributions by partnerships. Revises component depreciation rules to provide that the taxpayer must utilize the same recovery period and method of depreciation for a building and its structural components. Allows separate depreciation of substantial improvements. Provides special rules for the depreciation of recovery property used predominantly outside of the United States. Repeals the retirement-replacement-betterment methods of depreciation allowed for certain types of property. Specifies that such property shall be depreciated using a ratable method. Sets forth rules for determining the eligibility of lessors of recovery property for accelerated depreciation deductions and for the investment tax credit. Specifies that the salvage value of cost recovery property shall not be taken into account in computing allowable depreciation. Provides special rules for determining allowable deductions for recovery property in the case of certain corporate transfers and liquidations. Provides that gain on the disposition of single purpose agricultural or horticultural facilities and petroleum product storage facilities shall be treated as ordinary income to the extent of prior depreciation taken. Permits a taxpayer to elect to expense (i.e. currently deduct) the cost of new or used tangible personal property used in the taxpayer's business during a taxable year in lieu of current provisions permitting additional first year depreciation. Sets the amount of such deduction at $5000 in 1982 increased by biennial increments of $2,500, up to $10,000 in 1986. Requires the recapture as ordinary income of excess depreciation from recovery property which is subsequently sold or exchanged. Treats the accelerated cost recovery deduction as an item of tax preference for purposes of the minimum tax. Revises the method of computing the adjustment to earnings and profits for depreciation. Specifies that such adjustment shall be determined using the straight-line method of depreciation over prescribed extended recovery periods. Extends the carryover periods for certain net operating losses and tax credits. Revises the applicable percentage for determination of the investment tax credit to make eligible for such credit: (1) 100 percent of the basis of ten-year, five-year recovery property, or 15-year public utility property; and (2) 60 percent of the basis of three-year recovery property. Revises the progress expenditure rules to eliminate the useful life requirement for depreciable property being constructed by or for a taxpayer for use in a trade or business (qualified process expenditure property) and to apply to such property the revised percentages for determining the investment tax credit under this Act. Qualifies petroleum product storage facilities for the investment tax credit. Limits the amount of the investment tax credit to the amount that the taxpayer has at risk. Sets forth special at risk limitations for certain third-party lenders. Revises the recapture rules for recovery property eligible for the investment tax credit. Prescribes recapture percentages for recovery property which ceases to be investment tax credit property based on the type of property and the amount of time such property is in service. Increases the investment tax credit for qualified rehabilitation expenditures based upon the age of a building or its certification as a historic structure. Repeals the special 60-month amortization rules for certified historic structures and rules permitting accelerated depreciation for rehabilitated certified historic structures. Increases the limit on the amount of used property eligible for the investment tax credit. Allows a nonrefundable income tax credit for 25 percent of the qualified research expenses incurred by a taxpayer in carrying on any trade or business to the extent that such expenses exceed the average amount of the taxpayer's expenses in a specified base period. Defines "qualified research expenses" an amount paid or incurred for in-house and contract research. Allows such credit for basic research contracted out to colleges, universities, and tax-exempt scientific research institutes. Excludes from eligibility for such credit research conducted outside the United States, research in the social sciences or humanities, and research funded by any other person or governmental entity. Provides for a three-year carryback and a seven-year carryover of any unused credit amounts. Terminates such credit after 1985. Increases the limits on the allowable deduction for corporate charitable contributions of inventory property which is contributed to an institution of higher education and used for research purposes. Sets forth eligibility requirements for such deduction, including the following: (1) that such property be scientific equipment or apparatus; (2) that the donee use such property in the United States; and (3) that the use of the property be for research in the physical or biological sciences. Excludes certain small business corporations, personal holding companies, and service organizations from eligibility for such increased deduction. Requires that research and experimental expenditures for activities conducted in the United States be allocated to income from sources within the United States for purposes of the deduction of such expenses. Reduces the corporate income tax rates for corporations with a taxable income of $50,000 or less. Revises the method of computing the income tax on mutual insurance companies . Increases from $150,000 to $250,000 the amount which corporations may accumulate for reasonable needs of the business without being subject to the tax on accumulated earnings. Disallows such increase for corporations performing services in the areas of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting. Increases the allowable number of shareholders in a Subchapter S corporation from 15 to 25. Permits qualified trusts to be shareholders of Suchchapter S corprations. States that the beneficiary of such trust shall be treated as the owner of the Subchapter S trust. Revises the Last-In-First-Out (LIFO) inventory accounting rules. Directs the Secretary to prescribe regulations permitting the use of certain governmental indexes in inventorying goods under such method. Allows businesses with average gross receipts of $1,000,000 for three years (ending with the taxable year) to elect one inventory pool for purposes of dollar value LIFO inventory accounting. Permits three-year averaging of inventory value for taxpayers who elect LIFO accounting. Requires the Secretary to study and report to Congress on simplified methods of tax accounting for inventory. Sets forth special rules for the tax treatment of reorganizations involving financially-troubled thrift institutions. Permits tax-free reorganizations of building and loan associations, cooperative banks, and mutual savings banks which are subject to the jurisdiction of the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation without regard to judicially-created requirements as to the distribution of stocks and securities of the transferee corporation. Specifies rules for the limitation of net operating loss carryovers for certain financial institutions in reorganization. Exempts distributions to the Federal Savings and Loan Insurance Corporation with respect to certain interests in a domestic building and loan association from recapture requirements for distributions out of excess bad debt reserves. Excludes from the gross income of a domestic building and loan association all money or property contributed to such association by the Federal Savings and Loan Insurance Corporation under its financial assistance program without reduction in the basis of the association's property. Revises rules for the exemption from income taxation of any income resulting from the transfer of stock to an individual exercising a stock option under a restricted stock option plan. Repeals the termination date of such exemption. Limits the amount of the aggregate fair market value of the stock for stock option in any year. States that an option by its terms is not exercisable while there is outstanding any restricted stock option which was granted to an individual at an earlier time. Allows options which require the employee to pay for the stock with property to qualify as restricted stock options. Eliminates such options as items of tax preference for purposes of the minimum tax. Revises certain employment requirements for disabled employees exercising such options. Title III: Savings Provisions - Excludes from gross income interest received on a savings certificate issued after September 30, 1981, and before January 1, 1983, by a qualified bank, savings and loan institution, credit union, or industrial loan association or bank. Requires that such certificates be made available in $500 denominations have a maturity of one year, and have an investment yield which does not exceed 70 percent of the Treasury bill rate. Permits such exclusion only to the extent that the interest income received by the taxpayer exceeds the amount of such income received in the previous year, up to $1,000 ($2,000 for joint returns). Requires institutions issuing such certificates to invest 75 percent of the amount of such certificates or other qualified net savings per calendar quarter in residential financing and agricultural loans. Requires the Secretary to report to Congress on such exemption's effectiveness in generating additional savings. Provides for the exclusion from gross income of interest from specified sources, beginning in 1985. Limits the amount of such exclusion to 15 percent of the lesser of $3,000 ($6,000 for joint returns) or the amount of net interest received by the taxpayer in a taxable year. Amends the Crude Oil Windfall Profit Tax Act of 1980 to repeal the partial exclusion of interest and dividends from gross income after 1981. Revises rules for the retirement savings deduction. Increases the amount of such deduction to the lesser of $2,000 or 100 percent of an individual's compensation. Allows such deduction for contributions to an individual retirement account (IRA) or for voluntary contributions to a qualified employer plan or government plan. Increases the maximum deductible contribution for IRA's which cover a nonworking spouse to $2,250. Allows employees a deduction for employer contributions to a simplified employee pension. Limits such deduction to the lesser of 15 percent of the taxpayer's compensation or the amount of such contributions (up to $7,500). Increases the limit on deductible contributions to owner-employee retirement plans from $7,500 to $15,000 or 15 percent of the earned income derived by employees from the trade or business, whichever is less. Increases the amount of compensation which may be used to determine permitted annual benefit accruals for purposes of applying limits on deductible contributions. Revises requirements for such plans relating to loans to owner-employees and correction of excess contributions. Allows distributions from a terminated plan without regard to the five-year ban on contributions by an owner-employee. Revises rules relating to the taxation of the beneficiaries of qualified bond purchase plans and for the rollover of the proceeds from redemption of such bonds into IRA's or other annuities. Treats investments by IRA's in collectibles as distributions for income tax purposes. Permits the exclusion from income of up to $1500 ($3000 for joint returns) per year of public utility stock dividends by shareholders who choose to receive a common stock dividend rather than other property under a qualified plan established by a domestic public utility corporation. Requires that the stock be newly issued common stock and that the number of shares distributed to any shareholder be determined by reference to a value which is not less than 95 and not more than 105 percent of the stock's fair market value before distribution. Disallows such exclusion if the corporation has repurchased any of its stock within one year before or after the distribution date unless the corporation establishes a business purpose for such purchase. Excludes trusts and estates, nonresident aliens, and five percent shareholders from eligibility for such exclusion. Provides for the recapture of tax benefits upon disposition of such stock. Title IV: Estate and Gift Tax Provisions - Increases the unified credit against the estate and gift taxes from $47,000 to $192,800 by specified annual increments through 1987. Increases from $175,000 to $600,000, by specified annual increments through 1987, the minimum gross estate requirement for filing of a return. Reduces the maximum estate and gift tax rates to 50 percent by specified annual decrements through 1985. Repeals the existing limitations on the marital deduction for gift and estate taxes. Revises the definition of "qualified joint interest" for purposes of the 50 percent valuation of interests in property held by the decedent and the decedent's spouse. Qualifies certain terminable interests for the marital deduction. Requires the inclusion in the gross estate of any property in which the decedent had an income interest for life if the marital deduction was allowed with respect to the transfer of such property to the decedent. Provides that any disposition of an income interest for life in any property shall be treated as a transfer of such property if the marital deduction was allowed when such property was transferred to the donor. Provides for a right of recovery of estate and gift tax in the case of certain marital deduction property. Increases the maximum reduction (currently $500,000) in fair market value under the special estate tax valuation based on use for certain farms and small businesses annually to $1,000,000 in 1983 and thereafter. Allows property put to a qualified use by a family member to qualify for special use valuation. Qualifies estates of decedents who were disabled or retired for the special valuation of certain farms based on use if such decedents materially participated in the operation of the farm for five out of eight years preceding the year in which they became disabled or eligible for disability benefits under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act. Permits the spouse of a decedent to use such valuation if the spouse takes over active management upon the decedent's death. Reduces from 15 to ten years the length of time a qualified property must be held and put to a qualified use following the decedent's death before it can be disposed of without incurring a recapture of estate tax benefits. Permits active management rather than material participation as a test for qualification of the estate for special use valuation for spouses, children under 21, students, and disabled individuals who receive property from a decedent who qualified for special use valuation. Allows the like kind exchange of property without loss of special use valuation eligibility. Allows valuation based on net crop share rentals as an alternative method of valuing farms. Repeals the requirement that an heir elect special treatment for involuntary conversions of qualified real property, thus making such treatment automatic upon such conversion. Includes in the value of woodlands which qualify for the special use valuation the value of the trees growing on such property. Requires the recapture of estate tax benefits upon the disposition or severance of standing timber on such property. Permits an increase in basis of specially valued property on which a recapture tax is paid. Redefines "family member" for purposes of the special use valuation. Qualifies certain property transferred to a discretionary trust and certain property purchased from a decedent's estate for such valuation. Requires that an election of specially valued property be made on the decedent's estate tax return (rather than by the due date of that return as under present law). Provides that any period of ownership, qualified use, or material participation in the operation of a farm or other business by the decedent or family member shall be applied to qualified replacement property in the case of a like-kind exchange or involuntary conversion of the original property. Sets forth a procedure for making binding determinations of the farm market value of property eligible for the special use valuation. Modifies the alternate extension of time for payment of the estate tax the where the estate consists largely of an interest in a closely held business to: (1) allow an installment payment election if the value of the interest in the closely held business is 35 percent of the value of the gross estate; (2) revise the formula regarding the inclusion in the value of a gross estate of interests in two or more closely held business; (3) increase to 50 percent the value of an interest disposed of which will accelerate the payment of tax; (4) permit payment, but with a penalty, of an installment within six months after the due date; and (5) provide that payment of tax will not be accelerated upon the death of decedent's heir or a subsequent transferee if the interest passes to a family member. Authorizes the Tax Court to issue declaratory judgments with respect to controversies involving the extension of time for payment of the estate tax. Provides that, for purposes of the estate and gift tax charitable deduction, a work of art and the coypright on such work of art shall be treated as separate properties. Provides that the gifts made within three years of a decedent's death shall not be included in the gross estate of a decedent dying after 1981. Disallows such exclusion for certain transfers. Allows a step-up in basis for appreciated property acquired by the decedent by gift within one year of death. Allows a disclaimer of an interest in property for estate tax purposes in specified circumstances where a written transfer of the transferor's entire interest in the property is executed and the transfer meets certain other requirements. Repeals the estate tax deduction for bequests to certain minor children. Increases from $3,000 to $10,000 the annual gift tax exclusion. Provides an unlimited gift tax exclusion for certain transfers for educational or medical expenses. Permits the payment of gift taxes annually rather than quarterly. Title V: Tax Straddles - Amends the Internal Revenue Code to allow taxpayers to deduct straddle losses only to the extent of the sum of straddle gains and net non-straddle commodity gains. Permits the carry forward of any disallowed straddle losses. Defines "straddle transaction" as the sale, exchange, or disposition of: (1) a futures contract; (2) a forward contract; (3) a commodity (including metals); (4) Treasury bills and other debt instruments; (5) currency; or (6) any interest in such assets. Exempts hedging transactions from the rule limiting straddle losses. Specifies that syndicates are not entitled to the hedging exemption. Disallows as a deduction, and makes chargeable to capital account, interest and carrying charges with respect to personal property which is part of a straddle. Exempts hedging transactions from such capitalization rule. Exempts futures traders from the capitalization rule and sets forth special rules allowing such traders to offset gains from commodity-related transactions. States that a taxpayer shall be considered to hold an offsetting position if there is a substantial reduction of the taxpayer's risk of loss from holding any position with respect to personal property because the taxpayer also holds one or more other positions with respect to such property. Creates a rebuttable presumption that two or more positions in a straddle are offsetting if: (1) the positions are in the same personal property, even if in an altered form; (2) the positions are sold or marketed as offsetting positions; (3) the aggregate margin requirement for the positions is less than the sum of the margin requirements for each position; (4) the positions are in debt instruments; or (5) the positions are determined under regulations prescribed by the Secretary of the Treasury to be offsetting positions. Provides that obligations of the United States, a State or local government, or a U.S. possession issued on a discount basis and payable without interest in less than one year shall be treated as capital assets in determining tax consequences of gain or loss with respect to such obligations. Specifies that the discount on such obligations shall be treated as ordinary income. Excludes from capital gain tax treatment gain by a securities dealer from the sale or exchange of any security, unless the security was clearly identified in the dealers's records before the end of the day after the date of acquisition as a security held for investment (currently, before the end of the 30th day after the date of acquisition). Provides that gain or loss attributable to the certain terminations of a right or obligation with respect to personal property which is a capital asset in the hands of the taxpayer shall be treated as gain or loss from the sale of a capital asset. States that the straddle loss limitations shall apply to property acquired and positions established after January 27, 1981. Requires the Secretary of the Treasury to study and report to Congress on the effects of such limitation. Title VI: Energy Provisions - Increases from $1,000 to $2,500 the amount of the credit for any windfall profit tax paid in connection with taxable crude oil which is attributable to a qualified royalty interest and which is removed from the premises during 1981. Exempts royalty interests from the windfall profit tax after 1982 in an amount limited per quarter to the number of days in a quarter multiplied by two barrels for 1982 through 1984, and by four barrels in 1985 and thereafter. Reduces from 30 to 15 percent the amount of the windfall profit tax on newly discovered tier three oil by specified annual decrements through 1986. Exempts from the windfall profit tax, beginning in 1983, the stripper well oil of independent producers. Specifies that exempt stripper well oil does not include production attributable to an interest in any property which after July 22, 1981, was owned by a person other than independent producer. Exempts from the windfall profit tax oil produced from interests held by or for a residential child care agency. Defines such an agency as a tax-exempt charitable organization operated primarily for the residential placement, care, or treatment of delinquent, dependent, neglected, or handicapped children. Eliminates the phased reduction of the rate of the percentage depletion allowance for independent oil and gas producers and royalty owners (reduced to 15 percent by 1984) and retains the 22 percent rate for taxable years ending after 1980. Makes wood stoves and furnaces eligible for the residential energy tax credit. Title VII: Administrative Provisions - Provides that Federal law shall not be construed to require the disclosure of methods for the selection of tax returns for audits. Revises rules for the determination of the interest rate on overpayment or underpayments of taxes. Changes such rate of interest from 90 percent to 100 percent of the prime rate. Changes certain penalties for providing false information with respect to the withholding of tax. Requires an addition to tax for underpayments of tax by individuals and certain corporations attributable to a valuation overstatement that results in an underpayment of taxes of at least $1,000. Requires an addition to tax for underpayments attributable to negligent or intentional disregard of rules or regulations. Increases penalties for failure to file certain returns or furnish certain registration statements. Increases the penalty for overstated deposit claims. Provides that no declaration of estimated tax by individuals is required if such estimated tax is less than a specified amount. Increases from 60 to 80 percent the amount in total tax liability which certain large corporations must pay in estimated taxes. Increases the rate of the employer and employee railroad retirement taxes. Allows the Railroad Retirement Account to borrow funds from the Treasury if the balance of such Account is insufficient to pay annuity amounts due. Title VIII: Miscellaneous Provisions - Allows motor carriers a loss deduction for the decrease in value of motor carrier operating authorities held by the taxpayer on July 1, 1980. Requires the deduction of such amount over a 60-month period. Makes permanent the tax deduction for living expenses of State legislators engaged in legislative business away from their home districts. Limits such deduction to 110 percent of the daily amount allowable for Federal employees away from home but serving in the United States. Disallows such deduction for State legislators whose district residence is within 50 miles of the State capital. Permits the exclusion from gross income of interest on certain industrial development bonds if the proceeds of such bonds are used to finance qualified mass commuting vehicles which are leased to a publicly owned transportation system. Terminates such exclusion after 1984. Extends the targeted jobs credit through 1983. Extends eligibility for such credit to registrants of the WIN work incentive program, recipients of Aid to Families with Dependent Children, and involuntarily terminated CETA employees. Limits eligibility for cooperative education students for the targeted jobs credit program to those who are economically disadvantaged. Revises the certification requirements for such credit. Eliminates the age requirement applicable to Vietnam veterans. Repeals provisions limiting qualifying first-year wages to 30 percent of the unemployment insurance wages paid by an employer. Disallows such credit with respect to amounts paid to certain relatives of the taxpayer or shareholders of the taxpayer corporation. Extends through May 31, 1983 the prohibition on the issuance of regulations on the taxation of fringe benefits and on the deducton of commuting expenses to temporary job sites. Extends through 1982 the exemption of low-income housing from the requirement that construction period interest and taxes be amortized (instead of expensed as an immediate deduction). Prohibits that, for purposes of the taxation of property transferred to an employee as compensation for services, such property shall be considered subject to a substantial risk of forfeiture and not transferable if the sale of such property could subject a person to a suit under certain provisions of the Securities and Exchange Act of 1934 or if transfer of the property is restricted under the pooling-of-interests accounting rules. Provides that bonds issued by a volunteer fire department to finance the acquisition, construction, reconstruction, or improvement of firefighting property shall be treated as obligations of a local government and the property shall be treated as obligations of a local government and the interests on such bonds shall be excluded from gross income. Provides that a volunteer fire department qualifies for such tax treatment of its bonds if it: (1) is organized and operated to provide firefighting services in an area which does not have any other firefighting services; (2) is required by a local government to furnish firefighting services; (3) receives over half of its funding from local government; and (4) makes no charge for its services.
Bill· HRH.R. 4262 (97th)open
United States · United States Congress · 24 July 1981
Revenue Act of 1981 - Title I: Individual Income Tax Provisions - Subtitle A - Tax Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income rates, effective in 1981. Reduces the highest marginal tax rate from 70 to 60 percent. Requires the revision of withholding tables to correspond with such tax rate reductions. Authorizes the Secretary of the Treasury to issue regulations permitting workers to increase or decrease their withholding allowances. Increases the zero bracket amount for each category of taxpayer. Increases the income levels at which a taxpayer is required to file an income tax return. Reduces the alternative minimum tax on individuals and the personal holding company tax to correspond with reductions in the highest marginal tax rate. Subtitle B - Increase in Earned Income Credit and Child Care Credit; Deduction for Two-Earner Married Couples - Increases the rate of the earned income tax credit from ten to 11 percent of the first $5,000 of earnings beginning in 1982. Increases the maximum amount of such credit. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $30,000 or the earned income of the lower income spouse, beginning in 1983. Specifies that the deduction shall be five percent of such amount in 1982. Title II: Business Provisions - Subtitle A - Depreciation Reform - Amends the Internal Revenue Code to allow a first-year income tax deduction for a specified percentage of the basis of property used in a trade or held for the production of income (recovery property) which is placed in service after 1980. Assigns such property one of four classes based on present class lives under the Asset Depreciation Range (ADR) system. Phases in such expensing method by limiting the income tax deduction to a specified percentage of the basis of such property each year through 1990. Permits the first $25,000 worth of qualified assets to be expensed in the year they are purchased or placed in service without regard to the phase-in period. Excludes from eligibility for expensing: (1) property used predominantly outside the United States; (2) certain livestock; (3) property depreciated on a basis other than time; (4) certain amortization property; (5) certain public utility property; (6) oil or gas fired boilers; (7) certain property held by noncorporate lessors; and (8) certain petroleum refineries. Requires the recapture as ordinary income of excess depreciation from recovery property which is subsequently sold or exchanged. Provides alternative recovery percentages for depreciable property not eligible for the investment tax credit. Redefines "public utility property" to include transportation of oil by pipeline for purposes of the depreciation deduction. Sets forth limits on the amount of used property eligible for first-year capital cost recovery. Provides for depreciation of certain real property placed in service after 1980, according to the straight line method based on useful life of 20 years. Specifies a 15 year useful life for low-income housing. Permits the expensing (i.e. deduction in current taxable year) of up to $25,000 of depreciable business assets, in lieu of current provisions allowing additional first year depreciation of such assets. Allows a 30 percent variance from class life for long-life public utility property and certain real property. Disqualifies expense-method property from eligibility for the investment tax credit. Subtitle B - Credit for Rehabilitation Expenditures - Increases the investment tax credit percentage for rehabilitation expenditures to 15 percent for 30-year buildings, 20 percent for 40 year buildings, and 25 percent for certified historic structures, effective in 1982. Terminates provisions requiring the straight-line method of depreciation to be used for property constructed on a site where a certified historic structure was demolished and terminates the disallowance of deductions for such demolition on January 1, 1982 (previously January 1, 1984). Qualifies for the investment tax credit certain rehabilitated buildings leased to tax-exempt organizations or to governmental units. Title III: Individual Savings - Subtitle A - Retirement Savings - Revises requirements for the retirement savings deduction. Increases to $2,000 the maximum amount of the income tax deduction for contributions to an individual retirement account (IRA). Allows a $1,000 deduction for contributions by participants in qualified employer pension plans or governmental plans. Provides that in certain cases members of U.S. reserve components and volunteer firefighters shall not be considered governmental plan participants. Allows employees a deduction for employer contributions to a simplified employee pension. Limits such deduction to the lesser of 15 percent of the taxpayer's compensation or the amount of such contributions (up to $1,500). Repeals provisions relating to the tax deduction for retirement savings for certain married individuals. Provides that the retirement savings deduction shall be computed separately for each spouse in the case of a joint return. Provides that employee IRAs established as part of an employer plan shall be treated as individual retirement accounts for purposes of tax treatment of retirement savings. Allows limited nondeductible contributions to individual retirement accounts. Revises rules relating to the taxation of the beneficiaries of qualified bond purchase plans and for the rollover of the proceeds from redemption of such bonds into IRA's or other annuities. Allows distributions from a terminated owner-employee retirement plan without regard to the five-year ban on contributions by owner-employees. Treats investments by IRA's in collectibles as distributions for income tax purposes. Title IV: Repeals the percentage depletion allowance for independent producers and royalty owners of oil and gas. Repeals the option to deduct intangible drilling and development costs in the case of oil and gas wells and geothermal wells. Requires a 14-year amortization of such costs. Exempts costs for the drilling of nonproductive wells from such amortization requirements. Disallows the foreign tax credit for oil and gas extraction taxes paid to any foreign country. Provides that foreign oil and gas extraction income shall be treated as income from U.S. sources for purposes of determining the limit on the foreign tax credit. Allows a deduction for foreign oil and gas extraction taxes. Repeals the tax exemption for domestic international sales corporations. Requires the inclusion in the gross income of a shareholder's pro rata share of a controlled foreign corporation's undistributed earnings and profits for the taxable year. Limits such inclusion in the case of shareholders of foreign investment companies and foreign personal holding companies. Disallows a deduction for business entertainment expenses. Reduces by one-half the allowable deduction for business meals. Provides that for purposes of the alternative tax on the capital gains of corporations and the capital gains deduction for individuals, the sale of nonproductive assets will not qualify for capital gains tax treatment. Defines "productive asset" for purposes of this Act. Specifies that farm real property will not be considered a productive asset unless the taxpayer materially participated in the operation of the business and the taxpayer or a renter engaged in substantial farming activities on such property. Excludes from the definition of "productive asset" stock held by certain holding corporations. Title V: Tax Straddles - Provides that any loss from the holding of one or more positions in certain securities shall be recognized, for income tax deduction purposes only to the extent that it exceeds the unrealized gain (gain which would be recognized if the position had been sold at its fair market value) from the holding of one or more positions which: (1) were acquired before the disposition resulting in the loss; (2) were offsetting positions; and (3) were not part of an identified straddle as of the end of the taxable year. Defines "offsetting position" to mean that there is a substantial reduction of the taxpayer's risk of loss from holding any position with respect to personal property (personal property of a type which is actively traded) because the taxpayer also holds one or more other positions with respect to personal property (commonly referred to as a "straddle"). Creates a rebuttable presumption that two or more positions are offsetting, for purposes of the definition of a straddle, if: (1) they are in the same personal property, although they may be in a substantially altered form; (2) they are in debt instruments of a similar maturity or certain other debt instruments; (3) they are sold or marketed as such; (4) the aggregate margin requirement for such positions is lower than the sum of the margin requirement for each such position; or (5) there are other factors, as determined by the Secretary of the Treasury pursuant to regulations, which indicate that such positions are offsetting. Imposes a penalty upon a taxpayer who fails to report each position held with respect to which there is unrealized gain. Disallows as a deduction, and makes chargeable to capital account, interest and carrying charges with respect to personal property which is part of a straddle. Treats as sold at its fair market value any regulated futures contract held by the taxpayer at the close of the taxable year. Treats gain or loss with respect to such a contract as: (1) short-term capital gain or loss, to the extent of 40 percent of the gain or loss; and (2) long-term capital gain or loss, to the extent of 60 percent of the gain or loss. Exempts from the loss recognition provisions of this title any straddle consisting entirely of offsetting positions which are regulated futures contracts. Defines "regulated futures contract" as a contract: (1) which requires delivery of personal property; (2) with respect to which amounts deposited and withdrawn depend on a system of marking to market; and (3) which is traded on or subject to the rules of certain boards of trade. Permits an election to: (1) apply the regulated futures contract rules to all positions of all mixed straddles (straddles at least one, but not all, of the positions of which are regulated futures contracts and with respect to which each position is identified as being part of straddle); or (2) not apply such rules to all regulated futures contracts which are part of all mixed straddles. Exempts from the application of such rules any hedging transaction. Defines "hedging transaction" as any transaction: (1) which is entered into in the course of the trade or business primarily to reduce certain types of risk with respect to property or borrowing; (2) the gain or loss on which is treated as ordinary income or loss; and (3) which is clearly identified as such. Limits the three-year carryback of losses from regulated futures contracts to an amount which: (1) does not exceed the lesser of the capital gain net income from regulated futures contracts or all of the capital gain net income; and (2) does not increase or produce a net operating loss. Provides that obligations of the United States, a State or local government, or a U.S. possession issued on a discount basis and payable without interest in less than one year shall be treated as capital assets in determining tax consequences of gain or loss with respect to such obligations. Treats as ordinary income any gain realized from the sale or exchange of short-term government obligations which does not exceed an amount equal to the ratable share of the excess of the stated redemption price at maturity over the taxpayer's basis. Excludes from capital gains tax treatment gains by a securities dealer from the sale or exchange of any security, unless the security was clearly identified in the dealer's records before the close of the day on which it was acquired as a security held for investment (currently, before the end of the 30th day after the date of acquisition). Extends capital gains treatment to gains or losses attributable to the termination of a right or obligation with respect to personal property of a type which is actively traded and which is or would be a capital asset in the hands of the taxpayer. Title VI: Administrative Provisions - Subtitle A - Prohibition of Disclosure of Audit Methods - Provides that Federal law shall not be construed to require the disclosure of methods for the selection of tax returns for audits. Subtitle B - Changes in Interest Rate for Overpayments and Underpayments - Revises rules for the determination of the interest rate on overpayment or underpayments of taxes. Changes such rate of interest from 90 percent to 100 percent of the prime rate. Subtitle C - Changes in Certain Penalties and in Requirements Relating to Information Returns - Changes certain penalties for providing false information with respect to the withholding of tax. Requires an addition to tax for underpayments of tax by individuals and certain corporations attributable to a valuation overstatement that results in an underpayment of taxes of at least $1,000. Requires an addition to tax for underpayments of tax attributable to a disallowed credit, deduction, or conversion of ordinary income into capital gain. Specifies that such additional tax shall be imposed only in cases where the tax benefits are the principal element of the transaction and the underpayment is at least $5,000. Authorizes the Secretary to waive such tax on a showing that the tax benefit was reasonable. Increases penalties for failure to file certain returns or furnish certain registration statements. Increases the penalty for overstated deposit claims. Subtitle D - Cash Management - Increases from 60 to 80 percent the amount in total tax liability which certain large corporations must pay in estimated taxes. Subtitle E - Financing of Railroad Retirement Systems - Increases the rate of the employer and employee railroad retirement taxes. Allows the Railroad Retirement Account to borrow funds from the Treasury if the balance of such Account is insufficient to pay annuity amounts due. Title VII: Miscellaneous Provisions - Exempts from income taxation any income resulting from the transfer of stock to an individual exercising a stock option under an incentive stock option plan. Specifies that the optionee may not dispose of stock within two years after an option is granted nor within one year after the transfer of shares. Requires that the optionee be an employee of the corporation granting such option at all time during the period after an option is granted and until three months before such option is exercised. Limits the fair market value of stock for which any employee may be granted options in any year to $75,000. Eliminates such stock options as items of tax preference for purposes of the minimum tax. Extends until January 1, 1983, the time during which a State legislator may qualify for the income tax deduction for living expenses while engaged in legislative business away from his home district. Limits such deduction to 110 percent of the daily amount allowable for Federal employees away from home but serving in the United States. Disallows such deduction for State legislators whose district residence is within 50 miles from the State capital. Permits the exclusion from gross income of interest on certain industrial development bonds if the proceeds of such bonds are used to finance qualified mass commuting vehicles which are leased to a publicly-owned transportation system. Terminates such exclusion after 1984. Extends the targeted jobs credit through 1984. Increases the amount of wages eligible for such credit. Lowers the age requirements for the credit for employment of economically disadvantaged youth. Terminates the credit for youth participating in certain cooperative education programs unless they are economically disadvantaged. Extends eligibility for such credit to registrants of the WIN work incentive program and to recipients of Aid to Families with Dependent Children. Eliminates the age requirement applicable to Vietnam veterans. Repeals provisions limiting qualifying first-year wages to 30 percent of the unemployment insurance wages paid by an employer. Disallows such credit with respect to amounts paid to certain relatives of the taxpayer or shareholders of the taxpayer or shareholders of the taxpayer corporation. Extends through May 31, 1983, the prohibition on the issuance of any regulations by the Internal Revenue Service on: (1) employee fringe benefits; and (2) the deduction of commuting expenses to temporary job sites. Delays until 1987 the effective date of amortization requirements for construction period interest and taxes for low-income housing projects. Authorizes the Secretary of the Treasury to make separate payments to the governments of Guam and the Virgin Islands for lost tax revenues. Allows a tax credit for ten percent of a taxpayer's social security taxes paid in 1982. Disallows employers a business expense deduction for the amount of social security taxes taken as a credit. Provides special rules for such credit in the case of certain State and local employees. Title VIII: Estate and Gift Tax Provisions - Subtitle A - Increase in Unified Credit; Rate Reduction; Unlimited Marital Deduction - Increases the unified credit against the estate tax from $47,000 to $100,000, effective in 1982. Repeals the limitations on the estate and gift tax marital deductions. Provides that certain terminable interests qualify for the marital deduction. Sets forth special rules for: (1) the estate taxation of certain property for which the marital deduction was previously allowed; (2) the tax treatment of dispositions of certain life estates; and (3) recovery rights in the case of certain marital deduction property.
Law· HRH.R. 4242 (97th)enacted
United States · United States Congress · 23 July 1981
Tax Incentive Act of 1981 - Title I: Individual Income Tax Provisions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1981 and 1982, with further reductions in 1983 and thereafter. Conditions the 1984 tax reduction upon the attainment of specified levels in the budget deficit, the Consumer Price Index, and the Treasury bill rate in 1983. Authorizes the Secretary of the Treasury to issue regulations permitting workers to increase or decrease their withholding allowances. Reduces the highest marginal tax rate on all types of income from 70 to 60 percent in 1982 and to 50 percent in 1983. Repeals the existing 50 percent maximum tax rate on personal service income, effective in 1983. Increases the zero bracket amount for each category of taxpayer. Increases the income levels at which a taxpayer is required to file an income tax return. Reduces the alternative minimum tax and the personal holding company tax to correspond with the reductions in the highest marginal tax rate. Increases the rate of the earned income tax credit from ten to 11 percent of the first $5,000 of earnings beginning in 1982. Provides for increases in the maximum allowable dollar amount of such credit in 1982 and 1984. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $50,000 or the earned income of the lower income spouse. Increases the amount of the tax credit allowable for expenses for household and dependent care services necessary for gainful employment, beginning in 1982. Revises requirements for the tax exclusion of the earned income and housing expenses of Americans working abroad. Increases the amount of the earned income exclusion by specified annual increments up to $95,000 for 1986 and thereafter. Increases the amount of the tax exclusion for the housing costs of such individuals to an amount by which the taxpayer's housing costs exceed 16 percent of a GS-14, step 1 salary level for a Federal employee. Permits a tax deduction for excess housing costs which are not excludable. Repeals the requirement that such U.S. citizens work in hardship areas to be eligible for the tax exclusion. Reduces the length of the residency requirement for the tax exclusion. Waives such requirement if the Secretary of the Treasury determines that the taxpayer would otherwise have met the residency requirement but for the occurrence of civil unrest, war, or other adverse conditions precluding the normal conduct of business. Repeals the income tax deduction for certain living expenses of U.S. citizens abroad. Provides for an income tax exclusion for the value of employer-provided lodging in a camp in cases where satisfactory housing is not generally available. Amends the Foreign Earned Income Act of 1978 to extend the reporting requirement by requiring the Secretary to report to specified congressional committees on the operation and effects of the foreign earned income exclusion quadrennially beginning after the enactment of the Tax Incentive Act of 1981. Increases from $100,000 to $125,000 the amount of the one-time exclusion of gain from sale of a principal residence by an individual who has attained age 55. Increases from 18 months to 2 years the rollover period for such exclusion. Title II: Business Provisions - Amends the Internal Revenue Code to replace the current system of depreciation with a first-year income tax deduction equal to the basis of personal property used in a trade or business or held for the production of income (expense-method property) which is placed in service after 1980. Phases in such expensing method by limiting the income tax deduction to a specified percentage of the basis of such property each year through 1990. Permits the first $25,000 worth of qualified assets to be expensed in the year they are purchased or placed in service without regard to the phase-in period. Excludes from eligibility for expensing: (1) property used predominantly outside of the United States; (2) certain property held by noncorporate lessors; (3) certain property not eligible for the investment tax credit; (4) certain public utility property; (5) property acquired at death; (6) certain livestock; (7) railroad tank cars; (8) oil pipelines; and (9) certain films. Disqualifies expense-method property from eligibility for the investment tax credit after 1985. Exempts accelerated depreciation on leased personal property from classification as an item of tax preference for purposes of computing the minimum tax. Revises the treatment of property depreciated under the retirement-replacement-betterment method to allow a five-year amortization of the existing adjusted basis of such property. Repeals the retirement-replacement-betterment method of depreciation. Repeals the additional first-year depreciation allowance for small business. Allows the depreciation of real property based on a useful life of 15 years. Permits the taxpayer to elect either the straight-line or declining balance method of depreciation for such property. Specifies that the declining balance method shall be at a rate of 200 percent of the straight-line depreciation rate for low-income housing and targeted area property and 150 percent for all other property. Revises component depreciation rules to provide that the taxpayer must utilize the same recovery period and method of depreciation for a building and its structural components. Allows separate depreciation of substantial improvements made after the property has been in service for three years. Excludes the following types of property from eligibility for accelerated depreciation: (1) property with a class life of 12 1/2 years or less; (2) mobile homes; and (3) property eligible for amortization. Establishes a method of simplified cost recovery for long-life public utility property. Establishes the following two classes and recovery periods for such property: (1) Class 1 property which has a present class life of more than 18 but less than 25 years, 15 year recovery; and (2) Class 2 property which has a present class life of over 25 years, ten year recovery. Excludes from eligibility for accelerated depreciation public utility property for which the normalization method of accounting is not used and property eligible for amortization. Requires the taxpayer to establish a recovery account for each class of public utility recovery property. Provides special rules for the depreciation of property not eligible for the expense-method of cost recovery. Sets forth guidelines for the determination of the useful life of such property. Provides that, for purposes of computing the earnings and profits of a corporation in an taxable year, the useful life of expense-method property shall be the lower life limit of such property and the useful life of real property shall be 35 years. Reduces corporate income tax rates for 1982 through 1987 and thereafter. Revises the method of computing the income tax on mutual insurance companies. Increases the investment tax credit percentage for rehabilitation expenditures to 15 percent for 30-year buildings, 20 percent for 40-year buildings, and 25 percent for certified historic structures, effective in 1982. Qualifies for the investment tax credit certain rehabilitated buildings leased to tax-exempt organizations or to governmental units. Increases from $150,000 to $250,000 the amount which corporations may accumulate for reasonable needs of the business without being subject to the tax on accumulated earnings. Disallows such increase for corporations performing services in the areas of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting. Increases the allowable number of shareholders in a Subchapter S corporation from 15 to 25. Permits qualified trusts to be shareholders of Subchapter S corporations. Allows a beneficiary of such a trust to be treated as the owner of such trust. Extends ordinary low treatment of small business stock to preferred stock (previously only common stock). Requires the Secretary of the Treasury to study and report to specified congressional committees on methods of tax accounting for inventory which minimize income distortions resulting from inflation. Allows a nonrefundable income tax credit for 25 percent of the qualified research expenses incurred by a taxpayer in carrying on any trade or business to the extent that such expenses exceed the average amounts of the taxpayers expenses in a specified base period. Defines "qualified research expenses" as amounts paid or incurred for in-house and contract research. Allows such credit for basic research contracted out to colleges, universities, and tax-exempt scientific research institutes. Excludes from eligibility for such credit research conducted outside of the United States, research in the social sciences or humanities, exploration for ore or other minerals, and activities performed by the taxpayer for another person. Provides for a carryover and carry back of any unused credit. Terminates such credit after 1985. Revises the limits on the allowable deduction for corporate charitable contributions of inventory property which is contributed to an institution of higher education and used for research purposes. Suspends regulations relating to the allocation of research and experimental expenditures paid or incurred for activities conducted in the United States. Requires the Secretary to study and report to Congress on the effect such regulations would have on research and experimental activities conducted in the United States. Allows certain distressed industries (auto, steel, paper, railroad, mining, and airlines) to carryback unused investment tax credits to 1962 and use them against all tax liabilities incurred during those years. Requires that tax refunds resulting from such carryback be reinvested in property relating to such industries. Extends from seven to 20 years the carryover period for certain net operating losses and investment tax credits. Title III: Individual Savings - Amends the Internal Revenue Code to increases the maximum allowable tax deduction for contributions to an individual retirement account (IRA) to the less of $2,000 or 100 percent of an individual's compensation income. Allows such deduction for IRA contributions or voluntary contributions to a qualified employer plan for individuals who are active participants in a qualified employer plan or government plan. Allows employees a deduction for employer contributions to a simplified employee pension. Limits such deduction to the lesser of 15 percent of the taxpayer's compensation income on the amount of such contributions (up to $15,000). Repeals provisions relating to the tax deduction for retirement savings for certain married individuals. Increases the limit on deductible contributions to owner-employee retirement plans from $7,500 to $15,000 (or 15 percent of the earned income derived by employees from the trade or business, whichever is less). Increases the amount of compensation which may be used to determine annual benefit accruals for purposes of applying limits on deductible contributions. Revises rules relating to the taxation of the beneficiaries of qualified bond purchase plans and for the rollovers of the proceeds from redemption of such bonds into IRAs or other annuities. Revises requirements for the qualification of trusts and plans benefitting owner-employees and for the investment by IRAs in collectibles. Excludes from gross income interest received on a savings certificate issued by a qualified bank, savings and loan institution, or credit union. Requires that such certificates have a maturity of one year and an investment yield which does not exceed 70 percent of the Treasury bill rate. Permits such exclusion only to the extent that the interest income received by the taxpayer exceeds the amount of such income received in the previous year, up 59 $1,000 ($2,000 for joint returns). Requires institutions issuing such certificates to invest 75 percent of the proceeds in residential financing and agricultural loans. Requires the Secretary to report to Congress on such exemption's effectiveness in generating additional savings. Amends the Crude Oil Windfall Profit Tax Act of 1980 to repeal the partial exclusion of interest from gross income for taxable year 1983. Allows shareholders in public utility corporations to exclude up to $1,500 ($3,000 for joint returns) a year of dividends received if the dividends are reinvested in stock in the utility. Title IV: Estate and Gift Tax Provisions - Amends the Internal Revenue Code to increase the unified credit against the estate and gift tax from $47,000 to $192,800 by specified annual increments through 1986. Increases the minimum gross estate required for the filing of a return from $175,000 to $600,000 by specified annual increments through 1986. Reduces the maximum estate tax rate to 50 percent. Phases in such reduction between 1982 and 1984. Repeals the limitations on the estate and gift tax marital deductions. Sets forth special rules for: (1) the estate taxation of certain property for which the marital deduction was previously allowed; (2) the tax treatment of disposition of certain life estates; and (3) recovery rights in the case of certain marital deduction property. Increases the maximum reduction (currently $500,000) in fair market value under the rules for special estate tax valuation based on use for certain farms and small businesses to $1,000,000 in 1983 or thereafter. Qualifies estates of decedents who were disabled or retired for the special valuation of certain farms based on use if such decedents materially participated in the operation of the farm for five out of eight years preceding the year in which they became disabled or eligible for disability benefits under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act. Reduces from 15 to ten years the length of time a qualified property must be held and put to a qualified use following the decedent's death before it can be disposed of without incurring a recapture of estate tax benefits. Permits active management rather than material participation as a test for qualification of the estate for spouses, children under 21, students, and disabled individuals who receive property from a decedent who qualified for special use valuation. Allows the like kind exchange of property without loss of special use valuation eligibility. Allows valuation based on net crop share rentals as an alternative method of valuing farms. Authorizes the step-up in basis of such assets. Repeals the requirement that an heir elect special treatment for involuntary conversions of qualified real property, thus making such treatment automatic upon such conversion. Treats use as a woodland as a qualified use for purposes of the special estate tax valuation. Requires that the value of timber be included in the valuation. Qualifies the owner of a woodland for the special use valuation if the owner or member of the owner's family actively managed the property. Sets forth a procedure for making binding determinations of the fair market value of property eligible for the special use valuation. Modifies the alternative extension of time for payment of the estate tax where the estate consists largely of an interest in a closely held business to: (1) allow an installment election if the value of the interest in the closely held business exceeds 35 percent of the adjusted gross estate; (2) increase to 50 percent the value of an interest disposed of which will accelerate the payment of tax; and (3) permit payment, but with a penalty, of an installment within six months after the due date. Exempts from the acceleration of payment requirement disp made in a series of subsequent transfers of the property to family members by reason of death. Authorizes the Tax Court to issue declaratory judgments with respect to controversies involving the extension of time for payment of the estate tax. Provides that, for purposes of the estate and gift tax charitable deduction, a work of art and the copyright on such work of art shall be treated as separate properties. Provides that the gifts made within three years of a decedent's death shall not be included in the gross estate basis for appreciated property acquired by the decedent by gift within three years of death. Allows a disclaimer of an interest in property for estate tax purposes in specified circumstances where a written transfer of the transferer's entire interest in the property is executed and the transfer meets certain other requirements. Repeals the estate tax deduction for certain bequests to minor children. Increases from $3,000 to $10,000 the annual gift tax exclusion. Provides an unlimited gift tax exclusion for certain transfers for educational or medical expenses. Permits the payment of gift taxes annually rather than quarterly. Title V: Tax Straddles - Amends the Internal Revenue Code to allow taxpayers to deduct straddle losses only to the extent of the sum of straddle gains and net non-straddle commodity gains. Permits the carry forward of any disallowed straddle losses. Defines "straddle transaction" as the sale, exchange, or disposition of: (1) a futures contract; (2) a forward contract; (3) a commodity (including metals); (4) Treasury bills and other debt instruments; (5) currency; or (6) any interest in such assets. Exempts hedging transactions from the rule limiting straddle losses. Specifies that syndicates are not entitled to the hedging exemption. Disallows as a deduction, and makes chargeable to capital account, interest and carrying charges with respect to personal property which is part of a straddle. Exempts hedging transactions from such capitalization rule. Exempts futures traders from the capitalization rule and sets forth special rules allowing such traders to offset gains from commodity-related transactions. States that a taxpayer shall be considered to hold an offsetting position if there is a substantial reduction of the taxpayer's risk of loss from holding any position with respect to personal property because the taxpayer also holds one or more other positions with respect to personal property (commodities, evidences of indebtedness, currency, and other types of personal property). Creates a rebuttable presumption that two or more positions are offsetting if: (1) the positions are in the same personal property, even if in an altered form; (2) the positions are sold or marketed as offsetting positions; (3) the aggregate margin requirement for the positions is less than the sum of the margin requirements for each position; (4) the positions are in debt instruments; or (5) the positions are determined under regulations prescribed by the Secretary of the Treausry to be offsetting positions. Provides that obligations of the United States, a State or local government, or a U.S. possession issued on a discount basis and payable without interest in less than one year shall be treated as capital assets in determining tax consequences of gain or loss with respect to such obligations. Specifies that the discount on such obligations shall be treated as ordinary income. Excludes from capital gains tax treatment gain by a securities dealer from the sale or exchange of any security, unless the security was clearly identified in the dealer's records before the end of the day after the date of acquisition as security held for investment (currently, before the end of the 30th day after the date of acquisition). Provides that gain or loss attributable to the certain terminations of a right or obligation with respect to personal property which is a capital asset in the hands of the taxpayer shall be treated as gain or loss from the sale of a capital asset. States that the straddle loss limitations shall apply to property acquired and positions established after January 27, 1981. Requires the Secretary of the Treasury to study and report to Congress on the effects of such limitation. Title VI: Energy Provisions - Amends the Internal Revenue Code to exempt oil producers, in the amount equal to 500 barrels of crude oil multiplied by the number of days in the quarter, from the windfall profit tax. Exempts a producer's tier one and tier two oil from such tax in an amount equal to 100 barrels multiplied by the number of days in the quarter in 1982, with specified increases in such amount up to 350 barrels in 1986 and thereafter. Increases from $1,000 to $2,500 the amount of the credit for any windfall profit tax paid in connection with taxable crude oil which is attributable to a qualified royalty interest and which is removed from the premises during 1981. Exempts royalty interest from the windfall profit tax in 1982 up to one barrel per day from 1982 through 1984, two barrels a day in 1985, and three and one-half barrels a day in 1986. Extends the exemption from the windfall profit tax for independent producers of front-end teritary oil (for projects certified on or before January 28, 1981) to April 1, 1982. Provides that, for purposes of the exemption from the windfall profit tax, natural gas retailing shall not be taken into account in determining independent producer status. Exempts from the windfall profit tax oil produced from interests held by or for a residential child care agency. Defines such an agency as a tax-exempt charitable organization operated primarily for the residential placement, care, or treatment of delinquent, dependent, neglected, or handicapped children. Foreign Oil and Gas Tax Act of 1981 - Excludes from gross income any foreign oil and gas extraction income of a taxpayer. Disallows any tax credits or deductions attributable to such income or for the amount expended for oil and gas exploration outside of the United States. Disallows the foreign tax credit for excess foreign oil related payments by domestic corporations. Provides that the oil-and gas- related income of a foreign corporation controlled by a U.S. company shall be presently taxed (instead of deferred as under present law). Allows home builders a nonrefundable income tax credit for the construction of residences which incorporate a passive solar energy system. Limits the dollar amount of such credit to $2,000 for calendar years prior to 1987 and phases out the amount of the credity by $500 decrements until 1990 when such credit terminates. Defines a "passive solar energy system" as a system which contains a solar collection area, an absorber, a storage mass, a heat distribution method, and heat regulation devices. Requires that such system be installed in a new residence after September 30, 1981, and before January 1, 1990. Directs the Secretary of the Treasury, after consultation with the Secretaries of Energy and Housing and Urban Development, to prescribe regulations setting forth a solar construction credit table and a table of insulation factors for such residential units. Title VII: Administrative Provisions - Requires that tax returns and return information be made available to officers and employees of the General Accounting Office for the purpose of any audit authorized by law with respect to any program or activitity carried out under the Social Security Act. Prohibits the disclosure of methods for the selection of tax returns for audits. Revises rules for the determination of the interest rate on overpayments or underpayments of taxes. Changes such rate of interest from 90 percent to 100 percent of the prime rate. Changes certain penalties for providing false information with respect to the withholding of tax. Requires an addition to tax for underpayments of tax by individuals and certain corporations attributable to a valuation overstatement. Increases penalties for failure to file certain returns or furnish certain registration statements. Increases the penalty for overstated deposit claims. Provides that no declaration of estimated tax by individuals is required if such estimated tax is less than a specified amount. Increases from 60 to 80 percent the amount in total tax liability which certain large corporations must pay in estimated taxes. Increases the rate of the employer and employee railroad retirement taxes. Allows the Railroad Retirement Account to borrow funds from the Treasury if the balance of such Account is insufficient to pay annuity amounts due. Title VIII: Miscellaneous Provisions - Revises requirements for the exemption from income taxation of any income resulting from the transfer of stock to an individual exercising a restricted stock option. Limits the aggregate fair market value of the stock for which an employee may be granted such options to $75,000 a year for option exercised after 1980. Eliminates such options as items of tax preference for purposes of the minimum tax. Extends until January 1, 1983, the time during which a State legislator may qualify for the income tax deduction for living expenses while engaged in legislative business away from his home district. Limits such deduction to 110 percent of the daily amount allowable for Federal employees away from home but serving in the United States. Disallows such deduction for State legislators whose district residence is within 50 miles from the State capital. Permits the exclusion from goss income of interest on certain industrial development bonds if the proceeds of such bonds are used to finance qualified mass commuting vehicles which are leased to a publicly-owned transportation system. Terminates such exclusion after 1984. Extends the targeted jobs credit through 1984. Increases the amount of wages eligible for such credit. Lowers the age requirements for the credit for employment of economically disadvantaged youth. Extends eligibility for such credit to registrants of the WIN work incentive program and to recipients of Aid to Families with Dependent Children. Eliminates the age requirement applicable to Vietnam veterans. Repeals provisions limiting qualifying first-year wages to 30 percent of the unemployment insurance wages paid by an employer. Disallows such credit with respect to amounts paid to certain relatives of the taxpayer or shareholders of the taxpayer corporation. Extends through May 31, 1983, the prohibition on the issuance of any regulations by the Internal Revenue Service on: (1) employer fringe benefits; and (2) the deduction of commuting expenses to temporary job sites. Extends through 1986 the effective date of the requirement that construction period interest and taxes for low- income housing projects be amortized (instead of expensed as an immediate deduction). Authorizes the Secretary of the Treasury to make separate payments to the governments of Guam and the Virgin Islands for lost tax revenues. Allows motor carriers an income tax deduction for the value of motor carrier operating authorities held by the taxpayer on July 1, 1980. Requires the amortization of such amount over a 60-month period. Revises rules relating to substantial risks of forfeiture of property transferred to employees in connection with the performance of services for purposes of the income taxation of such property. Provides that bonds issued by a volunteer fire department to finance the acquisition, construction, reconstruction, or improvement of firefighting property shall be treated as obligations of a local government and the interest on such bonds shall be excluded from gross income. Provides that a volunteer fire department qualifies for such tax treatment of its bonds if it: (1) is organized and operated to provide firefighting services in an area which does not have any other firefighting services; (2) is required by a local government to furnish firefighting services; (3) receives over half of its funding from local government; and (4) makes no charge for its services. Title IX: Loans to State Unemployment Funds - Limits the reduction in the credit against Federal unemployment tax liability for employers required if advances are made to the unemployment account of a State under title XII (Advances to State Unemployment Funds) of the Social Security Act. Provides that such credit shall not be reduced if such a State repays such advance during a one-year period ending on September 30 and such repayment is not less than the sum of the State's potential additional taxes for the taxable year, plus any advances made to such State during such one-year period. Empowers the Secretary of Labor to require a State to furnish any information necessary to determine if such State has made proper repayments. Amends the Social Security Act, title XII (Advances to State Unemployment Funds)., to set forth interest rates for State repayments of any advance made to a State during a taxable year in which such State is availing itself of the cap on credit reduction.
Bill· HRH.R. 4249 (97th)referred
United States · United States Congress · 23 July 1981
Amends the Internal Revenue Code to allow a residential energy conservation tax credit for wood burning stoves.
Bill· HRH.R. 4248 (97th)referred
United States · United States Congress · 23 July 1981
Volunteer Fire Department and Rescue Squad Act of 1981 - Amends the Internal Revenue Code to provide that bonds issued by a volunteer fire department to finance the acquisition, construction, reconstruction, or improvement of firefighting property shall be treated as obligations of a local government and the interest on such bonds shall be excluded from gross income. Provides that a volunteer fire department qualifies for such tax treatment of its bonds if it: (1) is organized and operated to provide firefighting services in an area which does not have any other firefighting services; (2) is required by a local government to furnish firefighting services; and (3) makes no charge for its services.
Bill· HRH.R. 4239 (97th)open
United States · United States Congress · 22 July 1981
Amends the Internal Revenue Code to increase the amount of dividends and interest which may be excluded from gross income to $2,500 beginning in 1984 ($5,000 in the case of taxpayers filing a joint return). Phases in the amount of such exclusion by $500 increments in 1982 ($1,500) and 1983 ($2,000). Makes such exclusion permanent.
Bill· HRH.R. 4236 (97th)open
United States · United States Congress · 22 July 1981
Merchant Vessel Tax Amendments of 1981 - Amends the Internal Revenue Code to set forth special rules for depreciating vessels used in international commerce.
Bill· HRH.R. 4233 (97th)referred
United States · United States Congress · 22 July 1981
Amends the Inland Waterways Revenue Act of 1978 to make applicable to the Tennessee-Tombigbee Waterway specified provisions relating to the tax on fuel used in commercial transportation on inland waterways.
Bill· HRH.R. 4232 (97th)referred
United States · United States Congress · 22 July 1981
Amends the Internal Revenue Code to provide that cost- sharing payments under specified Federal environmental programs shall be excludable from gross income provided that such payments are not used primarily to provide a significant increase in agricultural productivity.
Bill· HRH.R. 4238 (97th)referred
United States · United States Congress · 22 July 1981
Amends the Internal Revenue Code to reduce by one third the Federal estate and gift taxes in 1982 and in 1983 and repeal such taxes after 1983. Repeals the tax on generation-skipping transfers after 1983.
Bill· HRH.R. 4234 (97th)referred
United States · United States Congress · 22 July 1981
Amends the Internal Revenue Code to revise the definition of political contribution for purposes of the income tax credit to delete the requirement that such contributions further the candidacy of the recipient.
Bill· HRH.R. 4224 (97th)referred
United States · United States Congress · 21 July 1981
Amends the Internal Revenue Code to repeal the estate tax, the gift tax, and the tax on generation-skipping transfers.
Bill· HRH.R. 4216 (97th)referred
United States · United States Congress · 21 July 1981
Amends the Internal Revenue Code to grant the income tax credit for residential energy conservation expenditures to dwelling units substantially completed before January 1, 1980.
Law· HJRESH.J.Res. 308 (97th)enacted
United States · United States Congress · 21 July 1981
Appropriates supplemental amounts for the Department of Health and Human Services for fiscal year 1981.
Resolution· HRESH.Res. 188 (97th)passed
United States · United States Congress · 21 July 1981
Sets forth the rule for the consideration of H.R. 4169 (Executive departments appropriations).
Resolution· HRESH.Res. 187 (97th)passed
United States · United States Congress · 21 July 1981
Sets forth the rule for the consideration of H.R. 4209 (Department of Transportation funding).
Bill· SS. 1496 (97th)open
United States · United States Congress · 17 July 1981
Amends the Internal Revenue Code to revise the period for the payment of the manufacturers' excise tax on tires, tubes, and tread rubber.
Bill· HRH.R. 4196 (97th)referred
United States · United States Congress · 17 July 1981
Amends the Mineral Lands Leasing Act to prohibit, for a specified period, any foreign person from acquiring more than five percent of the voting securities in a U.S. mineral resource corporation. Amends the Internal Revenue Code to provide that the charitable deduction allowed for expenses incurred in the operation of a motor vehicle shall include the depreciation, operation, and maintenance costs allocable to such operation and shall be determined in the same manner as a business related deduction.