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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2605 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 2605

 To amend the Internal Revenue Code of 1986 to expand income averaging 
 to include the trade or business of fishing and to provide a business 
  credit against income for the purchase of fishing safety equipment.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2000

  Ms. Collins introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to expand income averaging 
 to include the trade or business of fishing and to provide a business 
  credit against income for the purchase of fishing safety equipment.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commercial Fishermen Safety and Tax 
Fairness Act of 2000''.

SEC. 2. INCOME AVERAGING FOR FISHERMEN.

    (a) Allowing Income Averaging for Fishermen.--Subsection (a) of 
section 1301 of the Internal Revenue Code of 1986 (relating to 
averaging of farm income) is amended by striking ``farming business'' 
and inserting ``farming business or fishing business''.
    (b) Definition of Elected Farm Income.--
            (1) In general.--Clause (i) of section 1301(b)(1)(A) of 
        such Code is amended by inserting ``or fishing business'' 
        before the semicolon.
            (2) Conforming amendment.--Subparagraph (B) of section 
        1301(b)(1) of such Code is amended by inserting ``or fishing 
        business'' after ``farming business'' both places it occurs.
    (c) Definition of Fishing Business.--Section 1301(b) of such Code 
is amended by adding at the end the following new paragraph:
            ``(4) Fishing business.--The term `fishing business' means 
        the conduct of commercial fishing as defined in section 3 of 
        the Magnuson-Stevens Fishery Conservation and Management Act 
        (16 U.S.C. 1802).''.

SEC. 3. CREDIT FOR PURCHASE OF FISHING SAFETY EQUIPMENT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45D. FISHING SAFETY EQUIPMENT CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible taxpayer, the fishing safety equipment credit determined under 
this section for the taxable year is 75 percent of the amount of 
qualified fishing safety equipment expenses paid or incurred by the 
taxpayer during the taxable year.
    ``(b) Limitation on Maximum Credit.--The credit allowed under 
subsection (a) with respect to a taxpayer for the taxable year shall 
not exceed $1,500.
    ``(c) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means a taxpayer engaged in a fishing business (as 
defined in section 1301(b)(4)).
    ``(d) Qualified Fishing Safety Equipment Expenses.--For purposes of 
this section--
            ``(1) In general.--The term `qualified fishing safety 
        equipment expenses' means an amount paid or incurred for 
        fishing safety equipment for use by the taxpayer in connection 
        with a fishing business.
            ``(2) Fishing safety equipment.--The term `fishing safety 
        equipment' means lifesaving equipment required to be carried by 
        a vessel under section 4502 of title 46, United States Code.
    ``(e) Special Rules.--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply for 
        purposes of this section.
            ``(2) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as one 
        person for purposes of subsection (a).
    ``(f) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter (other than a credit under this section) for any 
amount taken into account in determining the credit under this section.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to any equipment, the basis 
of such equipment shall be reduced by the amount of the credit so 
allowed.''.
    (b) Limitation on Carryback.--Section 39(d) of the Internal Revenue 
Code of 1986 (relating to transition rules) is amended by adding at the 
end the following new paragraph:
            ``(9) No carryback of fishing safety equipment credit 
        before effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to the 
        fishing safety equipment credit determined under section 45D 
        may be carried to a taxable year ending before the date of the 
        enactment of section 45D.''.
    (c) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 
        (relating to general business credit) is amended by striking 
        ``plus'' at the end of paragraph (11), by striking the period 
        at the end of paragraph (12) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(13) the fishing safety equipment credit determined under 
        section 45D(a).''.
            (2) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (26), by striking 
        the period at the end of paragraph (27) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(28) in the case of equipment with respect to which a 
        credit was allowed under section 45D, to the extent provided in 
        section 45D(g).''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45C the 
following new item:

                              ``Sec. 45D. Fishing safety equipment 
                                        credit.''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to taxable years 
beginning after December 31, 2000.
                                 <all>
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