II 

117TH CONGRESS 

2D SESSION S. 5228 

To treat activities related to fisheries in the Bering Sea and Aleutian Islands 

areas as related to an exempt purpose for purposes of the Internal 

Revenue Code of 1986. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 8, 2022 

Ms. MURKOWSKI (for herself and Mr. SULLIVAN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To treat activities related to fisheries in the Bering Sea 

and Aleutian Islands areas as related to an exempt purpose for purposes of the Internal Revenue Code of 1986. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. NONPROFIT COMMUNITY DEVELOPMENT AC4 TIVITIES IN REMOTE NATIVE VILLAGES. 

5 (a) IN GENERAL.—For purposes of subchapter F of 

6 chapter 1 of the Internal Revenue Code of 1986, any activ7 ity substantially related to participation and investment 

8 in fisheries in the Bering Sea and Aleutian Islands statis9 tical and reporting areas (as described in Figure 1 of secVerDate Sep 11 2014 04:48 Dec 13, 2022 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S5228.IS S5228

kjohnson on DSK79L0C42PROD with BILLS
2 

•S 5228 IS

1 tion 679 of title 50, Code of Federal Regulations) carried 

2 on by an entity identified in section 305(i)(1)(D) of the 

3 Magnuson-Stevens Fishery Conservation and Manage4 ment Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the 

5 date of enactment of this section) shall be considered sub6 stantially related to the exercise or performance of the 

7 purpose constituting the basis of such entity’s exemption 

8 under section 501(a) of such Code if the conduct of such 

9 activity is in furtherance of 1 or more of the purposes 

10 specified in section 305(i)(1)(A) of such Act. For purposes 

11 of this paragraph, activities substantially related to par12 ticipation or investment in fisheries include the harvesting, 

13 processing, transportation, sales, and marketing of fish 

14 and fish products of the Bering Sea and Aleutian Islands 

15 statistical and reporting areas. 

16 (b) APPLICATION TO CERTAIN WHOLLY OWNED

17 SUBSIDIARIES.—If the assets of a trade or business relat18 ing to an activity described in subsection (a) of any sub19 sidiary wholly owned by an entity identified in section 

20 305(i)(1)(D) of the Magnuson-Stevens Fishery Conserva21 tion and Management Act (16 U.S.C. 1855(i)(1)(D)) are 

22 transferred to such entity (including in liquidation of such 

23 subsidiary) not later than 18 months after the date of the 

24 enactment of this Act— 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 5228 IS

1 (1) no gain or income resulting from such 

2 transfer shall be recognized to either such subsidiary 

3 or such entity under such Code, and 

4 (2) all income derived from such subsidiary 

5 from such transferred trade or business shall be ex6 empt from taxation under such Code. 

7 (c) EFFECTIVE DATE.—This section shall be effective 

8 during the existence of the western Alaska community de9 velopment quota program established by Section 305(i)(1) 

10 of the Magnuson-Stevens Fishery Conservation and Man11 agement Act (16 U.S.C. 1855(i)(1)), as amended. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS