IB 

Union Calendar No. 315 

113TH CONGRESS 

2D SESSION H. R. 4429 

[Report No. 113–427] 

To amend the Internal Revenue Code of 1986 to permanently extend the 

subpart F exemption for active financing income. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2014 

Mr. TIBERI (for himself, Mr. NEAL, Mr. SAM JOHNSON of Texas, Mr. LARSON

of Connecticut, Mr. BRADY of Texas, Mr. KIND, Mr. NUNES, Mr. PASCRELL, Mr. BOUSTANY, Mr. CROWLEY, Mr. SCHOCK, Mr. REED, Ms. 

LINDA T. SA ́NCHEZ of California, Mr. YOUNG of Indiana, and Mr. 

THOMPSON of California) introduced the following bill; which was referred to the Committee on Ways and Means 

MAY 2, 2014 

Additional sponsors: Mr. ROSKAM and Mr. SMITH of Nebraska 

MAY 2, 2014 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

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2 

•HR 4429 RH

A BILL 

To amend the Internal Revenue Code of 1986 to permanently 

extend the subpart F exemption for active financing income. 

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3 

•HR 4429 RH

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

3 SECTION 1. PERMANENT SUBPART F EXEMPTION FOR AC4 TIVE FINANCING INCOME. 

5 (a) BANKING, FINANCING, OR SIMILAR BUSI6 NESSES.—Subsection (h) of section 954 of the Internal 

7 Revenue Code of 1986 (relating to special rule for income 

8 derived in the active conduct of banking, financing, or 

9 similar businesses) is amended by striking paragraph (9). 

10 (b) INSURANCE BUSINESSES.—Subsection (e) of sec11 tion 953 of such Code (relating to exempt insurance in12 come) is amended by striking paragraph (10) and by re13 designating paragraph (11) as paragraph (10). 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years of a foreign cor16 poration beginning after December 31, 2013, and to tax17 able years of United States shareholders with or within 

18 which such taxable years of such foreign corporation end. 

19 SECTION 1. SHORT TITLE. 

20 This Act may be cited as the ‘‘Permanent Active Fi21 nancing Exception Act of 2014’’. 

22 SEC. 2. PERMANENT SUBPART F EXEMPTION FOR ACTIVE 

23 FINANCING INCOME. 

24 (a) BANKING, FINANCING, OR SIMILAR BUSINESSES.— 

25 Subsection (h) of section 954 of the Internal Revenue Code 

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•HR 4429 RH

1 of 1986 (relating to special rule for income derived in the 

2 active conduct of banking, financing, or similar businesses) 

3 is amended by striking paragraph (9). 

4 (b) INSURANCE BUSINESSES.—Subsection (e) of sec5 tion 953 of such Code (relating to exempt insurance income) 

6 is amended by striking paragraph (10) and by redesig7 nating paragraph (11) as paragraph (10). 

8 (c) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to taxable years of a foreign corporation 

10 beginning after December 31, 2013, and to taxable years 

11 of United States shareholders with or within which such 

12 taxable years of such foreign corporation end. 

mstockstill on DSK4VPTVN1PROD with BILLS

mstockstill on DSK4VPTVN1PROD with BILLS

Union Calendar No. 315 

113TH CONGRESS 

2D SESSION H. R. 4429 

[Report No. 113–427] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

active financing income. permanently extend the subpart F exemption for 

MAY 2, 2014 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

mstockstill on DSK4VPTVN1PROD with BILLS