I
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 Representa-
tives 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 sub-
section (r) the following new subsection:
‘‘(s) DEFERRAL OF DEPRECIATION FOR BUILDINGS
CONSTRUCTED WITH JAPANESE SERVICES.—
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‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this title, the deduction for depreciation
or amortization which would (but for this sub-
section) by allowable for any taxable year with re-
spect 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-con-
structed 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 in-
directly) by 1 or more persons or entities de-
scribed in subparagraph (A), (B), or (C)’’.
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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 JAPA-
NESE-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 there-
after’’.
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-con-
structed facility’ means any facility if 1 percent or
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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.
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