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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5228 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. NONPROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN REMOTE NATIVE 
              VILLAGES.

    (a) In General.--For purposes of subchapter F of chapter 1 of the 
Internal Revenue Code of 1986, any activity substantially related to 
participation and investment in fisheries in the Bering Sea and 
Aleutian Islands statistical and reporting areas (as described in 
Figure 1 of section 679 of title 50, Code of Federal Regulations) 
carried on by an entity identified in section 305(i)(1)(D) of the 
Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 
1855(i)(1)(D)) (as in effect on the date of enactment of this section) 
shall be considered substantially related to the exercise or 
performance of the purpose constituting the basis of such entity's 
exemption under section 501(a) of such Code if the conduct of such 
activity is in furtherance of 1 or more of the purposes specified in 
section 305(i)(1)(A) of such Act. For purposes of this paragraph, 
activities substantially related to participation or investment in 
fisheries include the harvesting, processing, transportation, sales, 
and marketing of fish and fish products of the Bering Sea and Aleutian 
Islands statistical and reporting areas.
    (b) Application to Certain Wholly Owned Subsidiaries.--If the 
assets of a trade or business relating to an activity described in 
subsection (a) of any subsidiary wholly owned by an entity identified 
in section 305(i)(1)(D) of the Magnuson-Stevens Fishery Conservation 
and Management Act (16 U.S.C. 1855(i)(1)(D)) are transferred to such 
entity (including in liquidation of such subsidiary) not later than 18 
months after the date of the enactment of this Act--
            (1) no gain or income resulting from such transfer shall be 
        recognized to either such subsidiary or such entity under such 
        Code, and
            (2) all income derived from such subsidiary from such 
        transferred trade or business shall be exempt from taxation 
        under such Code.
    (c) Effective Date.--This section shall be effective during the 
existence of the western Alaska community development quota program 
established by Section 305(i)(1) of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended.
                                 <all>
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