IB 
Union Calendar No. 315 
113TH CONGRESS 
2D SESSION 
H. R. 4429 
[Report No. 113–427] 
To amend the Internal Revenue Code of 1986 to permanently extend the 
subpart F exemption for active financing income. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 8, 2014 
Mr. TIBERI (for himself, Mr. NEAL, Mr. SAM JOHNSON of Texas, Mr. LARSON 
of Connecticut, Mr. BRADY of Texas, Mr. KIND, Mr. NUNES, Mr. PAS-
CRELL, Mr. BOUSTANY, Mr. CROWLEY, Mr. SCHOCK, Mr. REED, Ms. 
LINDA T. SA´NCHEZ of California, Mr. YOUNG of Indiana, and Mr. 
THOMPSON of California) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
MAY 2, 2014 
Additional sponsors: Mr. ROSKAM and Mr. SMITH of Nebraska 
MAY 2, 2014 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
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A BILL 
To amend the Internal Revenue Code of 1986 to permanently 
extend the subpart F exemption for active financing income. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PERMANENT SUBPART F EXEMPTION FOR AC-
TIVE FINANCING INCOME. 
(a)
BANKING,
FINANCING,
OR
SIMILAR
BUSI-
NESSES.—Subsection (h) of section 954 of the Internal 
Revenue Code of 1986 (relating to special rule for income 
derived in the active conduct of banking, financing, or 
similar businesses) is amended by striking paragraph (9). 
(b) INSURANCE BUSINESSES.—Subsection (e) of sec-
tion 953 of such Code (relating to exempt insurance in-
come) is amended by striking paragraph (10) and by re-
designating paragraph (11) as paragraph (10). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years of a foreign cor-
poration beginning after December 31, 2013, and to tax-
able years of United States shareholders with or within 
which such taxable years of such foreign corporation end. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Permanent Active Fi-
nancing Exception Act of 2014’’. 
SEC. 2. PERMANENT SUBPART F EXEMPTION FOR ACTIVE 
FINANCING INCOME. 
(a) BANKING, FINANCING, OR SIMILAR BUSINESSES.— 
Subsection (h) of section 954 of the Internal Revenue Code 
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of 1986 (relating to special rule for income derived in the 
active conduct of banking, financing, or similar businesses) 
is amended by striking paragraph (9). 
(b) INSURANCE BUSINESSES.—Subsection (e) of sec-
tion 953 of such Code (relating to exempt insurance income) 
is amended by striking paragraph (10) and by redesig-
nating paragraph (11) as paragraph (10). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years of a foreign corporation 
beginning after December 31, 2013, and to taxable years 
of United States shareholders with or within which such 
taxable years of such foreign corporation end. 
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Union Calendar No. 315 
113TH CONGRESS 
2D SESSION 
H. R. 4429 
[Report No. 113–427] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
permanently extend the subpart F exemption for 
active financing income. 
MAY 2, 2014 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Mar 15 2010 
21:49 May 02, 2014
Jkt 039200
PO 00000
Frm 00006
Fmt 6651
Sfmt 6651
E:\BILLS\H4429.RH
H4429
mstockstill on DSK4VPTVN1PROD with BILLS