I 

111TH CONGRESS 

1ST SESSION H. R. 4323 

To amend the Internal Revenue Code of 1986 to allow a credit against 

tax for certain costs relating to compliance with financial regulations. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 15, 2009 

Mr. SOUDER introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

credit against tax for certain costs relating to compliance 

with financial regulations. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘øTBD¿ Act of 2009’’. 

5 SEC. 2. CREDIT FOR FINANCIAL REGULATION COMPLI6 ANCE. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following new 

10 section: 


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1 ‘‘SEC. 45R. CREDIT FOR COMPLIANCE COSTS RELATING TO 

2 FINANCIAL REGULATION. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

4 the case of an eligible banking institution, the financial 

5 regulation compliance credit determined under this section 

6 for the taxable year is an amount equal to the financial 

7 regulation compliance expenditures of the taxpayer for the 

8 taxable year. 

9 ‘‘(b) FINANCIAL REGULATION COMPLIANCE EX10 PENDITURE.—For purposes of this section, the term ‘fi11 nancial regulation compliance expenditure’ means— 

12 ‘‘(1) any State or Federal fees or assessments 

13 paid or incurred which are imposed by reason of the 

14 taxpayer’s status as an insured depository institu15 tion, and 

16 ‘‘(2) any amounts paid or incurred by the tax17 payer in connection with complying with supervision 

18 or examination by a State or Federal authority hav19 ing supervision over insured depository institutions. 

20 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur21 poses of this section— 

22 ‘‘(1) ELIGIBLE BANKING INSTITUTION.—The 

23 term ‘eligible banking institution’ means, with re24 spect to a taxable year, an entity— 

25 ‘‘(A) which is an insured depository insti26 tution, and 


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1 ‘‘(B) the average adjusted bases of all as2 sets of which do not exceed $10,000,000,000. 

3 ‘‘(2) INSURED DEPOSITORY INSTITUTION.—The 

4 term ‘insured depository institution’ shall have the 

5 meaning given such term by section 3(c)(2) of the 

6 Federal Deposit Insurance Act (12 U.S.C. 

7 1813(c)(2)). 

8 ‘‘(3) CONTROLLED GROUP.—All members of a 

9 controlled group of corporations (within the meaning 

10 of section 1563(a)(1)) shall be treated as 1 person. 

11 In determining the average adjusted bases of assets 

12 held by such group, interests held by one member of 

13 such group in another member of such group shall 

14 be disregarded. 

15 ‘‘(4) DENIAL OF DOUBLE BENEFIT.—No deduc16 tion or other credit shall be allowed under this chap17 ter for any amount taken into account in deter18 mining the credit under this section.’’. 

19 (b) CREDIT MADE PART OF GENERAL BUSINESS

20 CREDIT.—Subsection (b) of section 38 of such Code is 

21 amended by striking ‘‘and’’ at the end of paragraph (34), 

22 by striking the period at the end of paragraph (35) and 

23 inserting ‘‘, and’’, and by adding at the end the following 

24 new paragraph: 


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1 ‘‘(36) the financial regulation compliance credit 

2 determined under section 45R(a).’’. 

3 (c) CLERICAL AMENDMENT.—The table of sections 

4 for subpart D of part IV of subchapter A of chapter 1 

5 of such Code is amended by adding at the end the fol6 lowing new item: 

‘‘Sec. 45R. Credit for compliance costs relating to financial regulation.’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to amounts paid or incurred after 

9 the date of the enactment of this Act. 

Æ 


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