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104TH CONGRESS
1ST SESSION
H. R. 88
To amend the Internal Revenue Code of 1986 to enhance tax equity and
fairness by imposing an alternative minimum tax on corporations import-
ing products into the United States at artificially inflated prices.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. KANJORSKI 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 enhance
tax equity and fairness by imposing an alternative mini-
mum tax on corporations importing products into the
United States at artificially inflated prices.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ALTERNATIVE MINIMUM TAX ON CORPORA-
TIONS 
IMPORTING 
PRODUCTS 
INTO 
THE
UNITED STATES AT ARTIFICIALLY INFLATED
PRICES.
(a) IN GENERAL.—Subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to determination
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of tax liability) is amended by adding at the end thereof
the following new part:
‘‘PART VIII—ALTERNATIVE MINIMUM TAX ON
CORPORATIONS 
IMPORTING 
PRODUCTS
INTO THE UNITED STATES AT ARTIFICIALLY
INFLATED PRICES
‘‘Sec. 59B. Alternative minimum tax on corporations importing products into
the United States at artificially inflated prices.
‘‘SEC. 59B. ALTERNATIVE MINIMUM TAX ON CORPORA-
TIONS 
IMPORTING 
PRODUCTS 
INTO 
THE
UNITED STATES AT ARTIFICIALLY INFLATED
PRICES.
‘‘(a) IMPOSITION OF TAX.—In the case of a corpora-
tion to which this section applies, there is hereby imposed
an alternative minimum tax equal to 5 percent of net busi-
ness receipts of the corporation for the taxable year.
‘‘(b) TAXPAYERS TO WHICH SECTION APPLIES.—
This section shall apply to any corporation, foreign or do-
mestic, if—
‘‘(1) gross sales in the United States during the
tax year of parts or products manufactured by the
corporation, or any subsidiary or affiliate controlled
by the corporation, exceeded $10,000,000,
‘‘(2) during that same tax year parts or prod-
ucts manufactured by the corporation, or any sub-
sidiary or affiliate controlled by the corporation, with
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a customs value in excess of $10,000,000 were im-
ported into the United States, and
‘‘(3) its tax obligation under this section ex-
ceeds its total tax obligation under all other sections
of the Internal Revenue Code of 1986.
‘‘(c) CREDIT FOR TAXES PAID.—There shall be a
nonrefundable credit against the taxes owed under this
section equal to the total of all other taxes paid by the
corporation under the Internal Revenue Code of 1986.
‘‘(d) DEFINITIONS.—For purposes of this section:
‘‘(1) NET BUSINESS RECEIPTS.—The term ‘net
business receipts’ means the value of all parts or
products sold in the United States, excluding—
‘‘(A) the value of parts or products sold for
export,
‘‘(B) expenses paid for parts or products
produced in the United States,
‘‘(C) expenses paid for services performed
in the United States, and
‘‘(D) amounts paid for income, sales or use
taxes imposed by any State, or political subdivi-
sion thereof, or by the District of Columbia,
Puerto Rico, Guam or the Virgin Islands.
‘‘(2) SUBSIDIARY OR AFFILIATE CONTROLLED
BY THE CORPORATION.—An entity shall be consid-
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ered to be a ‘subsidiary or affiliate controlled by the
corporation’ if the corporation owns 5 percent or
more of any class of stock of the entity or if the cor-
poration exercises control over a majority of the
board of directors of the entity.’’
(b) CLERICAL AMENDMENT.—The table of parts for
such subchapter A is amended by adding at the end there-
of the following new item:
‘‘Part VIII. Alternative minimum tax on corporations importing
products into the United States at artificially in-
flated prices.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1994.
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