Union Calendar No. 199
106TH CONGRESS
1ST SESSION
H. R. 2923
[Report No. 106–344]
A BILL
To amend the Internal Revenue Code of 1986 to
extend expiring provisions, to fully allow the non-
refundable personal credits against regular tax li-
ability, and for other purposes.
SEPTEMBER 28, 1999
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
IB
Union Calendar No. 199
106TH CONGRESS
1ST SESSION
H. R. 2923
[Report No. 106–344]
To amend the Internal Revenue Code of 1986 to extend expiring provisions,
to fully allow the nonrefundable personal credits against regular tax
liability, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 23, 1999
Mr. ARCHER introduced the following bill; which was referred to the
Committee on Ways and Means
SEPTEMBER 28, 1999
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]
[For text of introduced bill, see copy of bill as introduced on September 23, 1999]
A BILL
To amend the Internal Revenue Code of 1986 to extend
expiring provisions, to fully allow the nonrefundable per-
sonal credits against regular tax liability, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—EXTENSION OF
EXPIRING PROVISIONS
SEC. 101. NONREFUNDABLE PERSONAL CREDITS FULLY AL-
LOWED AGAINST REGULAR TAX LIABILITY.
(a) IN GENERAL.—Subsection (a) of section 26 of the
Internal Revenue Code of 1986 (relating to limitation based
on amount of tax) is amended to read as follows:
‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The
aggregate amount of credits allowed by this subpart for the
taxable year shall not exceed the taxpayer’s regular tax li-
ability for the taxable year.’’.
(b) CHILD CREDIT.—Subsection (d) of section 24 of
such Code is amended by striking paragraph (2) and by
redesignating paragraph (3) as paragraph (2).
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1998.
SEC. 102. RESEARCH CREDIT.
(a) EXTENSION.—
(1) IN
GENERAL.—Paragraph (1) of section
41(h) of the Internal Revenue Code of 1986 (relating
to termination) is amended—
(A) by striking ‘‘June 30, 1999’’ and insert-
ing ‘‘June 30, 2004’’, and
(B) by striking the material following sub-
paragraph (B).
(2) 
TECHNICAL
AMENDMENT.—Subparagraph
(D) of section 45C(b)(1) of such Code is amended by
striking ‘‘June 30, 1999’’ and inserting ‘‘June 30,
2004’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to amounts paid or in-
curred after June 30, 1999.
(b) INCREASE IN PERCENTAGES UNDER ALTERNATIVE
INCREMENTAL CREDIT.—
(1) IN GENERAL.—Subparagraph (A) of section
41(c)(4) of such Code is amended—
(A) by striking ‘‘1.65 percent’’ and insert-
ing ‘‘2.65 percent’’,
(B) by striking ‘‘2.2 percent’’ and inserting
‘‘3.2 percent’’, and
(C) by striking ‘‘2.75 percent’’ and insert-
ing ‘‘3.75 percent’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after June 30, 1999.
(c) SPECIAL RULE.—
(1) IN GENERAL.—For purposes of the Internal
Revenue Code of 1986, the credit determined under
section 41 of such Code which is otherwise allowable
under such Code and which is attributable to the sus-
pension period shall not be taken into account prior
to October 1, 2000. On or after such date, such credit
may be taken into account through the filing of an
amended return, an application for expedited refund,
an adjustment of estimated taxes, or other means al-
lowed by such Code.
(2) SUSPENSION PERIOD.—For purposes of this
subsection, the suspension period is the period begin-
ning on July 1, 1999, and ending on September 30,
2000.
(3) EXPEDITED REFUNDS.—
(A) IN GENERAL.—If there is an overpay-
ment of tax with respect to a taxable year by
reason of paragraph (1), the taxpayer may file
an application for a tentative refund of such
overpayment. Such application shall be in such
manner and form, and contain such informa-
tion, as the Secretary may prescribe.
(B) DEADLINE
FOR
APPLICATIONS.—Sub-
paragraph (A) shall apply only to applications
filed before October 1, 2001.
(C) ALLOWANCE
OF
ADJUSTMENTS.—Not
later than 90 days after the date on which an
application is filed under this paragraph, the
Secretary shall—
(i) review the application,
(ii) determine the amount of the over-
payment, and
(iii) apply, credit, or refund such over-
payment,
in a manner similar to the manner provided in
section 6411(b) of such Code.
(D) CONSOLIDATED RETURNS.—The provi-
sions of section 6411(c) of such Code shall apply
to an adjustment under this paragraph in such
manner as the Secretary may provide.
(4) CREDIT ATTRIBUTABLE TO SUSPENSION PE-
RIOD.—
(A) IN GENERAL.—For purposes of this sub-
section, in the case of a taxable year which in-
cludes a portion of the suspension period, the
amount of credit determined under section 41 of
such Code for such taxable year which is attrib-
utable to such period is the amount which bears
the same ratio to the amount of credit deter-
mined under such section 41 for such taxable
year as the number of months in the suspension
period which are during such taxable year bears
to the number of months in such taxable year.
(B) WAIVER
OF
ESTIMATED
TAX
PEN-
ALTIES.—No addition to tax shall be made
under section 6654 or 6655 of such Code for any
period before July 1, 1999, with respect to any
underpayment of tax imposed by such Code to
the extent such underpayment was created or in-
creased by reason of subparagraph (A).
(5) SECRETARY.—For purposes of this sub-
section, the term ‘‘Secretary’’ means the Secretary of
the Treasury (or such Secretary’s delegate).
SEC. 103. SUBPART F EXEMPTION FOR ACTIVE FINANCING
INCOME.
(a) IN GENERAL.—Sections 953(e)(10) and 954(h)(9)
of the Internal Revenue Code of 1986 (relating to applica-
tion) are each amended—
(1) by striking ‘‘the first taxable year’’ and in-
serting ‘‘taxable years’’,
(2) by striking ‘‘January 1, 2000’’ and inserting
‘‘January 1, 2005’’, and
(3) by striking ‘‘within which such’’ and insert-
ing ‘‘within which any such’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1999.
SEC. 104. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLE-
TION FOR MARGINAL PRODUCTION.
(a) IN
GENERAL.—Subparagraph (H) of section
613A(c)(6) of the Internal Revenue Code of 1986 (relating
to temporary suspension of taxable limit with respect to
marginal production) is amended by striking ‘‘January 1,
2000’’ and inserting ‘‘January 1, 2005’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1999.
SEC. 105. WORK OPPORTUNITY CREDIT AND WELFARE-TO-
WORK CREDIT.
(a) TEMPORARY EXTENSION.—Sections 51(c)(4)(B)
and 51A(f ) of the Internal Revenue Code of 1986 (relating
to termination) are each amended by striking ‘‘June 30,
1999’’ and inserting ‘‘December 31, 2001’’.
(b) CLARIFICATION
OF FIRST YEAR
OF EMPLOY-
MENT.—Paragraph (2) of section 51(i) of such Code is
amended by striking ‘‘during which he was not a member
of a targeted group’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to individuals who begin work for the
employer after June 30, 1999.
TITLE II—OTHER TIME-
SENSITIVE PROVISIONS
SEC. 201. ADVANCE PRICING AGREEMENTS TREATED AS
CONFIDENTIAL TAXPAYER INFORMATION.
(a) IN GENERAL.—
(1) TREATMENT
AS
RETURN
INFORMATION.—
Paragraph (2) of section 6103(b) of the Internal Rev-
enue Code of 1986 (defining return information) is
amended by striking ‘‘and’’ at the end of subpara-
graph (A), by inserting ‘‘and’’ at the end of subpara-
graph (B), and by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) any advance pricing agreement en-
tered into by a taxpayer and the Secretary and
any background information related to such
agreement or any application for an advance
pricing agreement,’’.
(2) EXCEPTION
FROM
PUBLIC
INSPECTION
AS
WRITTEN DETERMINATION.—Paragraph (1) of section
6110(b) of such Code (defining written determination)
is amended by adding at the end the following new
sentence: ‘‘Such term shall not include any advance
pricing agreement entered into by a taxpayer and the
Secretary and any background information related to
such agreement or any application for an advance
pricing agreement.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the date of the
enactment of this Act.
(b) ANNUAL REPORT REGARDING ADVANCE PRICING
AGREEMENTS.—
(1) IN GENERAL.—Not later than 90 days after
the end of each calendar year, the Secretary of the
Treasury shall prepare and publish a report regard-
ing advance pricing agreements.
(2) CONTENTS OF REPORT.—The report shall in-
clude the following for the calendar year to which
such report relates:
(A) Information about the structure, com-
position, and operation of the advance pricing
agreement program office.
(B) A copy of each model advance pricing
agreement.
(C) The number of—
(i) applications filed during such cal-
endar year for advanced pricing agree-
ments;
(ii) advance pricing agreements exe-
cuted cumulatively to date and during such
calendar year;
(iii) renewals of advanced pricing
agreements issued;
(iv) pending requests for advance pric-
ing agreements;
(v) pending renewals of advance pric-
ing agreements;
(vi) for each of the items in clauses (ii)
through (v), the number that are unilateral,
bilateral, and multilateral, respectively;
(vii) advance pricing agreements re-
voked or canceled, and the number of with-
drawals from the advance pricing agree-
ment program; and
(viii) advanced pricing agreements fi-
nalized or renewed by industry.
(D) General descriptions of—
(i) the nature of the relationships be-
tween the related organizations, trades, or
businesses covered by advance pricing agree-
ments;
(ii) the covered transactions and the
business functions performed and risks as-