H. R. 1836—107
of this subsection and subsection (k), including regulations
permitting appropriate aggregation of plans and contributions.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to years beginning after December 31, 2001.
Subtitle G—Miscellaneous Provisions
SEC. 671. TAX TREATMENT AND INFORMATION REQUIREMENTS OF
ALASKA NATIVE SETTLEMENT TRUSTS.
(a) TREATMENT OF ALASKA NATIVE SETTLEMENT TRUSTS.—Sub-
part A of part I of subchapter J of chapter 1 (relating to general
rules for taxation of trusts and estates) is amended by adding
at the end the following new section:
‘‘SEC. 646. TAX TREATMENT OF ELECTING ALASKA NATIVE SETTLE-
MENT TRUSTS.
‘‘(a) IN GENERAL.—If an election under this section is in effect
with respect to any Settlement Trust, the provisions of this section
shall apply in determining the income tax treatment of the Settle-
ment Trust and its beneficiaries with respect to the Settlement
Trust.
‘‘(b) TAXATION OF INCOME OF TRUST.—Except as provided in
subsection (f )(1)(B)(ii)—
‘‘(1) IN GENERAL.—There is hereby imposed on the taxable
income of an electing Settlement Trust, other than its net
capital gain, a tax at the lowest rate specified in section 1(c).
‘‘(2) CAPITAL GAIN.—In the case of an electing Settlement
Trust with a net capital gain for the taxable year, a tax is
hereby imposed on such gain at the rate of tax which would
apply to such gain if the taxpayer were subject to a tax on
its other taxable income at only the lowest rate specified in
section 1(c).
Any such tax shall be in lieu of the income tax otherwise imposed
by this chapter on such income or gain.
‘‘(c) ONE-TIME ELECTION.—
‘‘(1) IN GENERAL.—A Settlement Trust may elect to have
the provisions of this section apply to the trust and its bene-
ficiaries.
‘‘(2) TIME AND METHOD OF ELECTION.—An election under
paragraph (1) shall be made by the trustee of such trust—
‘‘(A) on or before the due date (including extensions)
for filing the Settlement Trust’s return of tax for the first
taxable year of such trust ending after the date of the
enactment of this section, and
‘‘(B) by attaching to such return of tax a statement
specifically providing for such election.
‘‘(3) PERIOD ELECTION IN EFFECT.—Except as provided in
subsection (f ), an election under this subsection—
‘‘(A) shall apply to the first taxable year described
in paragraph (2)(A) and all subsequent taxable years, and
‘‘(B) may not be revoked once it is made.
‘‘(d) CONTRIBUTIONS TO TRUST.—
‘‘(1) BENEFICIARIES OF ELECTING TRUST NOT TAXED ON CON-
TRIBUTIONS.—In the case of an electing Settlement Trust, no
amount shall be includible in the gross income of a beneficiary
of such trust by reason of a contribution to such trust.
H. R. 1836—108
‘‘(2) EARNINGS AND PROFITS.—The earnings and profits of
the sponsoring Native Corporation shall not be reduced on
account of any contribution to such Settlement Trust.
‘‘(e) TAX TREATMENT OF DISTRIBUTIONS TO BENEFICIARIES.—
Amounts distributed by an electing Settlement Trust during any
taxable year shall be considered as having the following characteris-
tics in the hands of the recipient beneficiary:
‘‘(1) First, as amounts excludable from gross income for
the taxable year to the extent of the taxable income of such
trust for such taxable year (decreased by any income tax paid
by the trust with respect to the income) plus any amount
excluded from gross income of the trust under section 103.
‘‘(2) Second, as amounts excludable from gross income to
the extent of the amount described in paragraph (1) for all
taxable years for which an election is in effect under subsection
(c) with respect to the trust, and not previously taken into
account under paragraph (1).
‘‘(3) Third, as amounts distributed by the sponsoring Native
Corporation with respect to its stock (within the meaning of
section 301(a)) during such taxable year and taxable to the
recipient beneficiary as amounts described in section 301(c)(1),
to the extent of current or accumulated earnings and profits
of the sponsoring Native Corporation as of the close of such
taxable year after proper adjustment is made for all distribu-
tions made by the sponsoring Native Corporation during such
taxable year.
‘‘(4) Fourth, as amounts distributed by the trust in excess
of the distributable net income of such trust for such taxable
year.
Amounts distributed to which paragraph (3) applies shall not be
treated as a corporate distribution subject to section 311(b), and
for purposes of determining the amount of a distribution for pur-
poses of paragraph (3) and the basis to the recipients, section
643(e) and not section 301 (b) or (d) shall apply.
‘‘(f ) SPECIAL RULES WHERE TRANSFER RESTRICTIONS MODI-
FIED.—
‘‘(1) TRANSFER OF BENEFICIAL INTERESTS.—If, at any time,
a beneficial interest in an electing Settlement Trust may be
disposed of to a person in a manner which would not be per-
mitted by section 7(h) of the Alaska Native Claims Settlement
Act (43 U.S.C. 1606(h)) if such interest were Settlement
Common Stock—
‘‘(A) no election may be made under subsection (c)
with respect to such trust, and
‘‘(B) if such an election is in effect as of such time—
‘‘(i) such election shall cease to apply as of the
first day of the taxable year in which such disposition
is first permitted,
‘‘(ii) the provisions of this section shall not apply
to such trust for such taxable year and all taxable
years thereafter, and
‘‘(iii) the distributable net income of such trust
shall be increased by the current or accumulated
earnings and profits of the sponsoring Native Corpora-
tion as of the close of such taxable year after proper
adjustment is made for all distributions made by the
H. R. 1836—109
sponsoring Native Corporation during such taxable
year.
In no event shall the increase under clause (iii) exceed the
fair market value of the trust’s assets as of the date the bene-
ficial interest of the trust first becomes so disposable. The
earnings and profits of the sponsoring Native Corporation shall
be adjusted as of the last day of such taxable year by the
amount of earnings and profits so included in the distributable
net income of the trust.
‘‘(2) STOCK IN CORPORATION.—If—
‘‘(A) stock in the sponsoring Native Corporation may
be disposed of to a person in a manner which would not
be permitted by section 7(h) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1606(h)) if such stock were
Settlement Common Stock, and
‘‘(B) at any time after such disposition of stock is
first permitted, such corporation transfers assets to a
Settlement Trust,
paragraph (1)(B) shall be applied to such trust on and after
the date of the transfer in the same manner as if the trust
permitted dispositions of beneficial interests in the trust in
a manner not permitted by such section 7(h).
‘‘(3) CERTAIN DISTRIBUTIONS.—For purposes of this section,
the surrender of an interest in a Native Corporation or an
electing Settlement Trust in order to accomplish the whole
or partial redemption of the interest of a shareholder or bene-
ficiary in such corporation or trust, or to accomplish the whole
or partial liquidation of such corporation or trust, shall be
deemed to be a transfer permitted by section 7(h) of the Alaska
Native Claims Settlement Act.
‘‘(g) TAXABLE INCOME.—For purposes of this title, the taxable
income of an electing Settlement Trust shall be determined under
section 641(b) without regard to any deduction under section 651
or 661.
‘‘(h) DEFINITIONS.—For purposes of this section—
‘‘(1) ELECTING
SETTLEMENT
TRUST.—The term ‘electing
Settlement Trust’ means a Settlement Trust which has made
the election, effective for a taxable year, described in subsection
(c).
‘‘(2) NATIVE CORPORATION.—The term ‘Native Corporation’
has the meaning given such term by section 3(m) of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602(m)).
‘‘(3) SETTLEMENT COMMON STOCK.—The term ‘Settlement
Common Stock’ has the meaning given such term by section
3(p) of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(p)).
‘‘(4) SETTLEMENT
TRUST.—The term ‘Settlement Trust’
means a trust that constitutes a settlement trust under section
3(t) of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(t)).
‘‘(5) SPONSORING NATIVE CORPORATION.—The term ‘spon-
soring Native Corporation’ means the Native Corporation which
transfers assets to an electing Settlement Trust.
‘‘(i) SPECIAL LOSS DISALLOWANCE RULE.—Any loss that would
otherwise be recognized by a shareholder upon a disposition of
a share of stock of a sponsoring Native Corporation shall be reduced
(but not below zero) by the per share loss adjustment factor. The
H. R. 1836—110
per share loss adjustment factor shall be the aggregate of all con-
tributions to all electing Settlement Trusts sponsored by such
Native Corporation made on or after the first day each trust is
treated as an electing Settlement Trust expressed on a per share
basis and determined as of the day of each such contribution.
‘‘( j) CROSS REFERENCE.—
‘‘For information required with respect to electing Settlement
Trusts and sponsoring Native Corporations, see section 6039H.’’.
(b) REPORTING.—Subpart A of part III of subchapter A of
chapter 61 of subtitle F (relating to information concerning persons
subject to special provisions) is amended by inserting after section
6039G the following new section:
‘‘SEC. 6039H. INFORMATION WITH RESPECT TO ALASKA NATIVE
SETTLEMENT TRUSTS AND SPONSORING NATIVE COR-
PORATIONS.
‘‘(a) REQUIREMENT.—The fiduciary of an electing Settlement
Trust (as defined in section 646(h)(1)) shall include with the return
of income of the trust a statement containing the information
required under subsection (c).
‘‘(b) APPLICATION WITH OTHER REQUIREMENTS.—The filing of
any statement under this section shall be in lieu of the reporting
requirements under section 6034A to furnish any statement to
a beneficiary regarding amounts distributed to such beneficiary
(and such other reporting rules as the Secretary deems appropriate).
‘‘(c) REQUIRED INFORMATION.—The information required under
this subsection shall include—
‘‘(1) the amount of distributions made during the taxable
year to each beneficiary,
‘‘(2) the treatment of such distribution under the applicable
provision of section 646, including the amount that is excludable
from the recipient beneficiary’s gross income under section 646,
and
‘‘(3) the amount (if any) of any distribution during such
year that is deemed to have been made by the sponsoring
Native Corporation (as defined in section 646(h)(5)).
‘‘(d) SPONSORING NATIVE CORPORATION.—
‘‘(1) IN GENERAL.—The electing Settlement Trust shall, on
or before the date on which the statement under subsection
(a) is required to be filed, furnish such statement to the spon-
soring Native Corporation (as so defined).
‘‘(2) DISTRIBUTEES.—The sponsoring Native Corporation
shall furnish each recipient of a distribution described in section
646(e)(3) a statement containing the amount deemed to have
been distributed to such recipient by such corporation for the
taxable year.’’.
(c) CLERICAL AMENDMENT.—
(1) The table of sections for subpart A of part I of sub-
chapter J of chapter 1 of such Code is amended by adding
at the end the following new item:
‘‘Sec. 646. Tax treatment of electing Alaska Native Settlement Trusts.’’.
(2) The table of sections for subpart A of part III of sub-
chapter A of chapter 61 of subtitle F of such Code is amended
H. R. 1836—111
by inserting after the item relating to section 6039G the fol-
lowing new item:
‘‘Sec. 6039H. Information with respect to Alaska Native Settlement Trusts
and sponsoring Native Corporations.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years ending after the date of the enactment
of this Act and to contributions made to electing Settlement Trusts
for such year or any subsequent year.
TITLE VII—ALTERNATIVE MINIMUM
TAX
SEC. 701. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION.
(a) IN GENERAL.—
(1) Subparagraph (A) of section 55(d)(1) (relating to exemp-
tion amount for taxpayers other than corporations) is amended
by striking ‘‘$45,000’’ and inserting ‘‘$45,000 ($49,000 in the
case of taxable years beginning in 2001, 2002, 2003, and 2004)’’.
(2) Subparagraph (B) of section 55(d)(1) (relating to exemp-
tion amount for taxpayers other than corporations) is amended
by striking ‘‘$33,750’’ and inserting ‘‘$33,750 ($35,750 in the
case of taxable years beginning in 2001, 2002, 2003, and 2004)’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 55(d) is amended by striking
‘‘and’’ at the end of subparagraph (B), by striking subparagraph
(C), and by inserting after subparagraph (B) the following new
subparagraphs:
‘‘(C) 50 percent of the dollar amount applicable under
paragraph (1)(A) in the case of a married individual who
files a separate return, and
‘‘(D) $22,500 in the case of an estate or trust.’’.
(2) Subparagraph (C) of section 55(d)(3) is amended by
striking ‘‘paragraph (1)(C)’’ and inserting ‘‘subparagraph (C)
or (D) of paragraph (1)’’.
(3) The last sentence of section 55(d)(3) is amended—
(A) by striking ‘‘paragraph (1)(C)(i)’’ and inserting
‘‘paragraph (1)(C)’’; and
(B) by striking ‘‘$165,000 or (ii) $22,500’’ and inserting
‘‘the minimum amount of such income (as so determined)
for which the exemption amount under paragraph (1)(C)
is zero, or (ii) such exemption amount (determined without
regard to this paragraph)’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2000.
TITLE VIII—OTHER PROVISIONS
SEC. 801. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code
of 1986—
(1) 100 percent of the amount of any required installment
of corporate estimated tax which is otherwise due in September
2001 shall not be due until October 1, 2001; and
H. R. 1836—112
(2) 20 percent of the amount of any required installment
of corporate estimated tax which is otherwise due in September
2004 shall not be due until October 1, 2004.
SEC. 802. EXPANSION OF AUTHORITY TO POSTPONE CERTAIN TAX-
RELATED DEADLINES BY REASON OF PRESIDENTIALLY
DECLARED DISASTER.
(a) IN GENERAL.—Section 7508A(a) (relating to authority to
postpone certain tax-related deadlines by reason of presidentially
declared disaster) is amended by striking ‘‘90 days’’ and inserting
‘‘120 days’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of enactment of this Act.
SEC. 803. NO FEDERAL INCOME TAX ON RESTITUTION RECEIVED BY
VICTIMS OF THE NAZI REGIME OR THEIR HEIRS OR
ESTATES.
(a) IN GENERAL.—For purposes of the Internal Revenue Code
of 1986, any excludable restitution payments received by an eligible
individual (or the individual’s heirs or estate) and any excludable
interest—
(1) shall not be included in gross income; and
(2) shall not be taken into account for purposes of applying
any provision of such Code which takes into account excludable
income in computing adjusted gross income, including section
86 of such Code (relating to taxation of Social Security benefits).
For purposes of such Code, the basis of any property received
by an eligible individual (or the individual’s heirs or estate) as
part of an excludable restitution payment shall be the fair market
value of such property as of the time of the receipt.
(b) ELIGIBLE INDIVIDUAL.—For purposes of this section, the
term ‘‘eligible individual’’ means a person who was persecuted on
the basis of race, religion, physical or mental disability, or sexual
orientation by Nazi Germany, any other Axis regime, or any other
Nazi-controlled or Nazi-allied country.
(c) EXCLUDABLE RESTITUTION PAYMENT.—For purposes of this
section, the term ‘‘excludable restitution payment’’ means any pay-
ment or distribution to an individual (or the individual’s heirs
or estate) which—
(1) is payable by reason of the individual’s status as an
eligible individual, including any amount payable by any foreign
country, the United States of America, or any other foreign
or domestic entity, or a fund established by any such country
or entity, any amount payable as a result of a final resolution
of a legal action, and any amount payable under a law providing
for payments or restitution of property;
(2) constitutes the direct or indirect return of, or compensa-
tion or reparation for, assets stolen or hidden from, or otherwise
lost to, the individual before, during, or immediately after World
War II by reason of the individual’s status as an eligible indi-
vidual, including any proceeds of insurance under policies
issued on eligible individuals by European insurance companies
immediately before and during World War II; or
(3) consists of interest which is payable as part of any
payment or distribution described in paragraph (1) or (2).
(d) EXCLUDABLE INTEREST.—For purposes of this section, the
term ‘‘excludable interest’’ means any interest earned by—
H. R. 1836—113
(1) escrow accounts or settlement funds established pursu-
ant to the settlement of the action entitled ‘‘In re: Holocaust
Victim Assets Litigation,’’ (E.D.N.Y.) C.A. No. 96–4849,
(2) funds to benefit eligible individuals or their heirs cre-
ated by the International Commission on Holocaust Insurance
Claims as a result of the Agreement between the Government
of the United States of America and the Government of the
Federal Republic of Germany concerning the Foundation
‘‘Remembrance, Responsibility, and Future,’’ dated July 17,
2000, or
(3) similar funds subject to the administration of the United
States courts created to provide excludable restitution payments
to eligible individuals (or eligible individuals’ heirs or estates).
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—This section shall apply to any amount
received on or after January 1, 2000.
(2) NO INFERENCE.—Nothing in this Act shall be construed
to create any inference with respect to the proper tax treatment
of any amount received before January 1, 2000.
TITLE IX—COMPLIANCE WITH
CONGRESSIONAL BUDGET ACT
SEC. 901. SUNSET OF PROVISIONS OF ACT.
(a) IN GENERAL.—All provisions of, and amendments made
by, this Act shall not apply—
(1) to taxable, plan, or limitation years beginning after
December 31, 2010, or
(2) in the case of title V, to estates of decedents dying,
gifts made, or generation skipping transfers, after December
31, 2010.
(b) APPLICATION
OF CERTAIN LAWS.—The Internal Revenue
Code of 1986 and the Employee Retirement Income Security Act
of 1974 shall be applied and administered to years, estates, gifts,
and transfers described in subsection (a) as if the provisions and
amendments described in subsection (a) had never been enacted.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.