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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2613 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2613

To amend the Internal Revenue Code of 1986 to deny certain tax benefits 
      in the case of buildings constructed with Japanese services.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 1993

  Mr. Stark 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 deny certain tax benefits 
      in the case of buildings constructed with Japanese services.

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

SECTION 1. DEFERRAL OF DEPRECIATION DEDUCTION.

    Section 167 of the Internal Revenue Code of 1986 (relating to 
depreciation) is amended by redesignating subsection (s) as subsection 
(t) and by inserting after subsection (r) the following new subsection:
    ``(s) Deferral of Depreciation for Buildings Constructed With 
Japanese Services.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, the deduction for depreciation or amortization 
        which would (but for this subsection) by allowable for any 
        taxable year with respect to any Japanese-constructed building 
        shall not be allowable for such year but shall be allowable for 
        the 10th taxable year thereafter.
            ``(2) Japanese-constructed building.--For purposes of this 
        subsection, the term `Japanese-constructed building' means any 
        building if 1 percent or more of the cost of such building 
        (determined as of the completion of its construction) is 
        attributable to services performed by Japanese persons.
            ``(3) Japanese person.--For purposes of this subsection, 
        the term `Japanese person' means--
                    ``(A) any citizen or national of Japan,
                    ``(B) any corporation, partnership, or other entity 
                created or organized under the laws of Japan or any 
                subdivision thereof,
                    ``(C) any instrumentality of Japan or a subdivision 
                thereof, and
                    ``(D) any corporation, partnership, or other entity 
                owned or controlled (directly or indirectly) by 1 or 
                more persons or entities described in subparagraph (A), 
                (B), or (C)''.

SEC. 2. DEFERRAL OF LOSS DEDUCTION.

    Section 1231 of the Internal Revenue Code of 1986 is amended by 
adding at the end thereof the following new subsection:
    ``(d) Deferral of Recognition of Loss on Japanese-Constructed 
Buildings.--Notwithstanding any other provision of this title, any loss 
which would (but for this subsection) be recognized for any taxable 
year with respect to any Japanese-constructed building (as defined in 
section 167(s)(2)) shall not be recognized for such year but shall be 
recognized for the 15th taxable year thereafter''.

SEC. 3. DENIAL OF USE OF TAX-EXEMPT BONDS.

    Section 149 of the Internal Revenue Code is amended by adding at 
the end thereof the following new subsection:
    ``(h) Facilities Constructed With Japanese Services.--
            ``(1) In general.--Nothing in section 103(a) or any other 
        provision of law shall be construed to provide an exemption 
        from Federal income tax for interest on any bond issued as part 
        of an issue 1 percent or more of the proceeds of which are to 
        be used to provide Japanese-constructed facilities.
            ``(2) Japanese-constructed facility.--For purposes of this 
        subsection, the term `Japanese-constructed facility' means any 
        facility if 1 percent or more of the cost of such facility 
        (determined as of the completion of its construction) is 
        attributable to services performed by Japanese persons (as 
        defined in section 167(s)(3)''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to property the 
construction of which begins after December 31, 1993.

                                 <all>
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