I
105TH CONGRESS
2D SESSION
H. R. 4738
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, provide tax relief for farmers and small businesses, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 8, 1998
Mr. ARCHER 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 extend
certain expiring provisions, provide tax relief for farmers
and small businesses, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AMENDMENT OF 1986 CODE; TABLE OF CON-
TENTS.
(a) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(b) TABLE OF CONTENTS.—
Sec. 1. Amendment of 1986 Code; table of contents.
TITLE I—EXTENSION AND MODIFICATION OF CERTAIN EXPIRING
PROVISIONS
Subtitle A—Tax Provisions
Sec. 101. Research credit.
Sec. 102. Work opportunity credit.
Sec. 103. Income averaging for farmers made permanent.
Sec. 104. Contributions of stock to private foundations; expanded public inspec-
tion of private foundations’ annual returns.
Sec. 105. Subpart F exemption for active financing income.
Sec. 106. Disclosure of return information on income contingent student loans.
Subtitle B—Generalized System of Preferences
Sec. 111. Extension of Generalized System of Preferences.
TITLE II—OTHER PROVISIONS
Sec. 201. Depreciation study.
Sec. 202. Production flexibility contract payments.
Sec. 203. 100 percent deduction for health insurance costs of self-employed in-
dividuals.
Sec. 204. Increase in volume cap on private activity bonds.
Sec. 205. Modification of estimated tax safe harbors.
TITLE III—REVENUE OFFSETS
Sec. 301. Treatment of certain deductible liquidating distributions of regulated
investment companies and real estate investment trusts.
Sec. 302. Inclusion of rotavirus gastroenteritis as a taxable vaccine.
Sec. 303. Clarification and expansion of mathematical error assessment proce-
dures.
Sec. 304. Clarification of definition of specified liability loss.
TITLE IV—TECHNICAL CORRECTIONS
Sec. 401. Definitions; coordination with other titles.
Sec. 402. Amendments related to Internal Revenue Service Restructuring and
Reform Act of 1998.
Sec. 403. Amendments related to Taxpayer Relief Act of 1997.
Sec. 404. Amendments related to Tax Reform Act of 1984.
Sec. 405. Other amendments.
TITLE I—EXTENSION AND MODI-
FICATION OF CERTAIN EXPIR-
ING PROVISIONS
Subtitle A—Tax Provisions
SEC. 101. RESEARCH CREDIT.
(a) TEMPORARY EXTENSION.—Paragraph (1) of sec-
tion 41(h) (relating to termination) is amended—
(1) by striking ‘‘June 30, 1998’’ and inserting
‘‘December 31, 1999’’;
(2) by striking ‘‘24-month’’ and inserting ‘‘42-
month’’; and
(3) by striking ‘‘24 months’’ and inserting ‘‘42
months’’.
(b) TECHNICAL AMENDMENT.—Subparagraph (D) of
section 45C(b)(1) is amended by striking ‘‘June 30, 1998’’
and inserting ‘‘December 31, 1999’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid or incurred after
June 30, 1998.
SEC. 102. WORK OPPORTUNITY CREDIT.
(a) TEMPORARY EXTENSION.—Subparagraph (B) of
section 51(c)(4) (relating to termination) is amended by
striking ‘‘June 30, 1998’’ and inserting ‘‘December 31,
1999’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to individuals who begin work for
the employer after June 30, 1998.
SEC. 103. INCOME AVERAGING FOR FARMERS MADE PER-
MANENT.
Subsection (c) of section 933 of the Taxpayer Relief
Act of 1997 is amended by striking ‘‘, and before January
1, 2001’’.
SEC. 104. CONTRIBUTIONS OF STOCK TO PRIVATE FOUNDA-
TIONS; EXPANDED PUBLIC INSPECTION OF
PRIVATE FOUNDATIONS’ ANNUAL RETURNS.
(a) SPECIAL RULE FOR CONTRIBUTIONS OF STOCK
MADE PERMANENT.—
(1) IN
GENERAL.—Paragraph (5) of section
170(e) is amended by striking subparagraph (D)
(relating to termination).
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to contributions made
after June 30, 1998.
(b) EXPANDED PUBLIC INSPECTION
OF PRIVATE
FOUNDATIONS’ ANNUAL RETURNS, ETC.—
(1) IN
GENERAL.—Section 6104 (relating to
publicity of information required from certain ex-
empt organizations and certain trusts) is amended
by striking subsections (d) and (e) and inserting
after subsection (c) the following new subsection:
‘‘(d) PUBLIC INSPECTION OF CERTAIN ANNUAL RE-
TURNS AND APPLICATIONS FOR EXEMPTION.—
‘‘(1) IN GENERAL.—In the case of an organiza-
tion described in subsection (c) or (d) of section 501
and exempt from taxation under section 501(a)—
‘‘(A) a copy of—
‘‘(i) the annual return filed under sec-
tion 6033 (relating to returns by exempt
organizations) by such organization; and
‘‘(ii) if the organization filed an appli-
cation for recognition of exemption under
section 501, the exempt status application
materials of such organization,
shall be made available by such organization for
inspection during regular business hours by any
individual at the principal office of such organi-
zation and, if such organization regularly main-
tains 1 or more regional or district offices hav-
ing 3 or more employees, at each such regional
or district office; and
‘‘(B) upon request of an individual made
at such principal office or such a regional or
district office, a copy of such annual return and