SECTION 1. 3-YEAR DEPRECIABLE LIFE FOR SEMICONDUCTOR MANUFACTURING 
              EQUIPMENT AND EQUIPMENT USED TO MANUFACTURE ADVANCED 
              MATERIALS OR TO DEVELOP ADVANCED TECHNOLOGIES.

    (a) In General.--Subparagraph (A) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (relating to classification of property) 
is amended by striking ``and'' at the end of clause (i), by striking 
the period at the end of clause (ii) and inserting a comma, and by 
adding at the end thereof the following:
                            ``(iii) any semiconductor manufacturing 
                        equipment, and
                            ``(iv) any equipment used to manufacture 
                        advanced materials or to develop advanced 
                        technologies.
                Clause (iv) shall not apply if the taxpayer elects not 
                to apply such clause. Such an election shall apply to 
                the taxable year for which made and all subsequent 
                taxable years and, once made, shall be irrevocable.''
    (b) Advanced Materials and Technologies.--Subsection (e) of section 
168 of such Code (relating to classification of property) is amended by 
adding at the end thereof the following new paragraph:
            ``(5) Advanced materials and technologies.--For purposes of 
        paragraph (3)(A)(iv)--
                    ``(A) In general.--The determination of whether any 
                material is an advanced material or whether any 
                technology is an advanced technology shall be made as 
                of the date the equipment referred to in such paragraph 
                is placed in service.
                    ``(B) Initial list of advanced materials and 
                technologies.--
                            ``(i) In general.--The term `advanced 
                        material' and `advanced technology' mean any 
                        material or technology listed in clause (ii) 
                        and determined by the Secretary to be an 
                        advanced material or technology.
                            ``(ii) Initial list.--
                        Advanced structural materials
                        Electronic and photonic materials
                        Biotechnologies
                        Materials processing
                        Environmental technologies
                        Design and engineering tools
                        Commercialization and production systems
                        Advanced process equipment
                        Networks and communications
                        Powertrain
                        Propulsion
                    ``(C) Modifications to list.--Materials and 
                technologies may be added to or deleted from the list 
                in subparagraph (B)(ii) based on recommendations of 
                experts selected by the Secretary. Any deletion from 
                such list shall not take effect before the date which 
                is 5 years after the date the decision to make such 
                deletion is published in the Federal Register.''
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 168(e)(3) of such Code is 
        amended by striking clause (ii) and by redesignating the 
        succeeding clauses accordingly.
            (2) Subparagraph (B) of section 168(g)(3) of such Code is 
        amended by striking the following:
                    ``(B)(ii) ....................... 5''
                and inserting in lieu thereof the following:
                    ``(A)(iii) ........................3
                    ``(A)(iv) .........................3.''
    (c) Effective Date.--The amendments made by this section shall 
apply to equipment placed in service after the date of the enactment of 
this Act.

SEC. 2. REDUCTION IN INDIVIDUAL CAPITAL GAINS RATE.

    (a) General Rule.--Subsection (h) of section 1 of the Internal 
Revenue Code of 1986 (relating to maximum capital gains rate) is 
amended to read as follows:
    ``(h) Maximum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, then the tax imposed by this section shall 
        not exceed the sum of--
                    ``(A) a tax computed at the rates and in the same 
                manner as if this subsection had not been enacted on 
                the taxable income reduced by the net capital gain, 
                plus
                    ``(B) a tax equal to the sum of--
                            ``(i) 7.5 percent of so much of the net 
                        capital gain as does not exceed--
                                    ``(I) the maximum amount of taxable 
                                income to which the 15-percent rate 
                                applies under the table applicable to 
                                the taxpayer, reduced by
                                    ``(II) the taxable income to which 
                                subparagraph (A) applies, plus
                            ``(ii) 15 percent of the net capital gain 
                        in excess of the net capital gain to which 
                        clause (i) applies.
            ``(2) Transitional rule.--In the case of a taxable year 
        which includes the date of the enactment of this paragraph, the 
        amount of the net capital gain for purposes of paragraph (1) 
        shall not exceed the net capital gain determined by only taking 
        into account gains and losses properly taken into account for 
        the portion of the taxable year after such date.''
    (b) Technical Amendments.--
            (1) Paragraph (1) of section 170(e) of such Code is amended 
        by striking ``the amount of gain'' in the material following 
        subparagraph (B)(ii) and inserting ``13/28 (19/34 in the case 
        of a corporation) of the amount of gain''.
            (2)(A) The second sentence of section 7518(g)(6)(A) of such 
        Code is amended by striking ``28 percent (34 percent in the 
        case of a corporation)'' and inserting ``15 percent''.
            (B) The second sentence of section 607(h)(6)(A) of the 
        Merchant Marine Act, 1936, is amended by striking ``28 percent 
        (34 percent in the case of a corporation)'' and inserting ``15 
        percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges occurring after the date of the enactment 
of this Act in taxable years ending after such date.

SEC. 3. REDUCTION IN CORPORATE CAPITAL GAINS RATE.

    (a) General Rule.--Section 1201 of the Internal Revenue Code of 
1986 (relating to alternative tax for corporations) is amended by 
redesignating subsection (b) as subsection (c), and by striking 
subsection (a) and inserting the following:
    ``(a) General Rule.--If for any taxable year a corporation has a 
net capital gain, then, in lieu of the tax imposed by section 11, 511, 
or 831(a) (whichever applies), there is hereby imposed a tax (if such 
tax is less than the tax imposed by such section) which shall consist 
of the sum of--
            ``(1) a tax computed on the taxable income reduced by the 
        net capital gain, at the same rates and in the same manner as 
        if this subsection had not been enacted, plus
            ``(2) a tax of 15 percent of the net capital gain.
    ``(b) Transitional Rule.--In the case of a taxable year which 
includes the date of the enactment of this paragraph, the amount of the 
net capital gain for purposes of subsection (a) shall not exceed the 
net capital gain determined by only taking into account gains and 
losses properly taken into account for the portion of the taxable year 
after such date.''
    (b) Technical Amendments.--
            (1) Clause (iii) of section 852(b)(3)(D) of such Code is 
        amended by striking ``66 percent'' and inserting ``85 
        percent''.
            (2) Paragraphs (1) and (2) of section 1445(e) of such Code 
        are each amended by striking ``34 percent'' and inserting ``15 
        percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges occurring after the date of the enactment 
of this Act in taxable years ending after such date.

SEC. 4. REDUCTION OF MINIMUM TAX RATE ON CAPITAL GAINS.

    (a) In General.--Subparagraph (A) of section 55(b)(1) of the 
Internal Revenue Code of 1986 (relating to tentative minimum tax) is 
amended to read as follows:
                    ``(A) the sum of--
                            ``(i) 15 percent of the lesser of--
                                    ``(I) the net capital gain 
                                (determined with the adjustments 
                                provided in this part and (to the 
                                extent applicable) the limitations of 
                                sections 1(h)(2) and 1201(b)), or
                                    ``(II) so much of the alternative 
                                minimum taxable income for the taxable 
                                year as exceeds the exemption amount, 
                                plus
                            ``(ii) 20 percent (24 percent in the case 
                        of a taxpayer other than a corporation) of the 
                        amount (if any) by which the excess referred to 
                        in clause (i)(II) exceeds the net capital gain 
                        (as so determined), reduced by''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and exchanges occurring after the date of the enactment of 
this Act in taxable years ending after such date.

SEC. 5. MINIMUM TAX ON FOREIGN AND FOREIGN-OWNED CORPORATIONS.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to determination of tax liability) is amended by 
adding at the end thereof the following new part:

     ``PART VIII--MINIMUM TAX ON CERTAIN FOREIGN AND FOREIGN-OWNED 
                              CORPORATIONS

                              ``Sec. 59B. Minimum tax on certain 
                                        foreign and foreign-owned 
                                        corporations.

``SEC. 59B. MINIMUM TAX ON CERTAIN FOREIGN AND FOREIGN-OWNED 
              CORPORATIONS.

    ``(a) Imposition of Tax.--In the case of a corporation to which 
this section applies, there is hereby imposed (in addition to any other 
tax imposed by this subtitle) a tax equal to the excess (if any) of--
            ``(1) 34 percent of the product of--
                    ``(A) 5 percent, and
                    ``(B) the gross receipts of the taxpayer from the 
                sale or leasing of property manufactured by the 
                taxpayer or by any foreign person that is a related 
                party of the taxpayer, over
            ``(2) the aggregate tax imposed under sections 11, 55, and 
        1201 for such year.
    ``(b) Taxpayers to Which Section Applies.--This section shall apply 
to a corporation for the taxable year if such corporation is--
            ``(1) a domestic corporation which is 25-percent foreign-
        owned, or
            ``(2) a foreign corporation engaged in a trade or business 
        within the United States.
    ``(c) Definitions.--For purposes of this section, the term `25-
percent foreign-owned', `foreign person', and `related party' have the 
respective meanings given such terms by section 6038A(c).''
    (b) Clerical Amendment.--The table of parts for such subchapter A 
is amended by adding at the end thereof the following new item:

                              ``Part VIII. Minimum tax on certain 
                                        foreign and foreign-owned 
                                        corporations.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1992.
Amends the Internal Revenue Code to allow a three-year depreciable life for semiconductor manufacturing equipment and equipment used to manufacture advanced materials or to develop advanced technologies. 
Reduces the individual and corporate capital gains rates and the minimum tax rate on capital gains. 
Imposes a minimum tax on domestic corporations which are 25-percent foreign-owned and foreign corporations engaged in a trade or business within the United States.
To amend the Internal Revenue Code of 1986 to allow accelerated depreciation for equipment used to manufacture advanced materials or to develop advanced technologies, to reduce capital gains taxes, and to impose a minimum tax on foreign and foreign-owned corporations operating in the United States.