Competition Enhancement and Tax Relief Act of 1987

Summary

Competition Enhancement and Tax Relief Act of 1987- Amends the Internal Revenue Code to allow a five percent investment tax credit after 1987 for tangible property which: (1) is used as a part of manufacturing, production, or extraction or of furnishing transportation, communications, electrical energy, gas water, or sewage disposal services; (2) constitutes a research facility used in connection with such activities; or (3) constitutes a facility used in connection with such activities for the bulk storage of fungible commodities. Exempts from estate taxes the transfer of an interest in a closely held business to a qualified heir of the decendent. Exempts from gift taxes the transfer of an interest in a closely held business to a member of the donor's family. Allows the nonrecognition of gain realized from the sale or exchange of the entire interest in an unincorporated trade or business to the extent such gain is used within a 24-month period to purchase property used in an unincorporated trade or business which is entirely owned by the taxpayer. Increases from $10,000 to $25,000 the annual limitation on the expensing of certain depreciable business assets. Requires the public availability of the annual returns of tax-exempt organizations. Denies special mailing privileges to organizations which are taxed on unrelated business income. Makes applicable to the Internal Revenue Service provisions of the Regulatory Flexibility Act relating to rule making. Provides that, for purposes of employee benefit plans, a leasing organization shall be deemed to be the sole employer of a leased employee if: (1) the organization retains the right to hire, transfer, pay, and direct the manner of the employee's performance of services; (2) the organization is responsible for paying its employees regardless of receiving fees from the recipient; (3) any employee benefits provided are comparable and nondiscriminatory among all employees; and (4) the organization bills the recipient on a total fee rather than a direct cost pass-through basis.

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1 official file

• Introduced in House

  summary · EN · 6 January 1987

  Open at official source

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