In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[EX Q]: SEC. 1. SHORT TITLE.

    This Act may be cited as the ``Community Partnerships Against Crime 
Act'', or ``COMPAC''.

SEC. 2. COMMUNITY PARTNERSHIPS AGAINST CRIME.

    (a) Conforming Provisions.--(1) Section 5001 of the Anti-Drug Abuse 
Act of 1988 is amended--
            (A) by striking

      ``Chapter 2--Public and Assisted Housing Drug Elimination''

        and inserting in lieu thereof the following:

          ``Chapter 2--Community Partnerships Against Crime'';

            (B) by striking ``Congressional findings.'' and 
            inserting in lieu thereof the following: 
            ``Purposes.''; and
            (C) by adding after

``Sec. 5130. Authorization of appropriations.''
        the following:

``Sec. 5131. Technical assistance.''.
    (2) The heading for chapter 2 of subtitle C of title V of the Anti-
Drug Abuse Act of 1988 is amended to read as follows:

          ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME''.

    (b) Short Title, Purposes, and Authority To Make Grants.--Sections 
5121, 5122, and 5123 of the Public and Assisted Housing Drug 
Elimination Act of 1990 are amended to read as follows:

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1993'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) substantially expand and enhance the Federal 
        Government's commitment to eliminating crime in public housing;
            ``(2) broaden the scope of the Public and Assisted Housing 
        Drug Elimination Act of 1990 to apply to all types of crime, 
        and not simply crime that is drug-related;
            ``(3) target opportunities for long-term commitments of 
        funding primarily to public housing agencies with serious crime 
        problems;
            ``(4) encourage the involvement of a broad range of 
        community-based groups, and residents of neighboring housing 
        that is owned or assisted by the Secretary, in the development 
        and implementation of anti-crime plans;
            ``(5) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving;
            ``(6) provide training, information services, and other 
        technical assistance to program participants; and
            ``(7) establish a standardized assessment system to 
        evaluate need among public housing agencies, and to measure 
        progress in reaching crime reduction goals.

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``The Secretary of Housing and Urban Development, in accordance 
with the provisions of this chapter, may make grants, for use in 
eliminating crime in and around public and other federally assisted 
low-income housing projects (1) to public housing agencies (including 
Indian housing authorities) and (2) using amounts appropriated for 
fiscal year 1994 only, to private, for-profit and nonprofit owners of 
federally assisted low-income housing. In designing the program, the 
Secretary shall consult with the Attorney General.''.
    (c) Eligible Activities.--Section 5124 of such Act is amended--
            (1) by striking ``(a) Public and Assisted Housing.--'';
            (2) by inserting in the introductory material, immediately 
        after ``used in'', the following: ``and around'';
            (3) in paragraph (3), by inserting immediately before the 
        semicolon the following: ``, such as fencing, lighting, 
        locking, and surveillance systems'';
            (4) by striking paragraph (4)(A) and inserting in lieu 
        thereof the following new subparagraph:
                    ``(A) to investigate crime; and'';
            (5) in paragraph (6)--
                    (A) by striking ``in and around public or other 
                federally assisted low-income housing projects''; and
                    (B) by striking ``and'' after the semicolon;
            (6) in paragraph (7)--
                    (A) by striking ``where a public housing agency 
                receives a grant,'';
                    (B) by striking ``drug abuse'' and inserting in 
                lieu thereof ``crime''; and
                    (C) by striking the period at the end and inserting 
                in lieu thereof a colon;
            (7) by adding the following new paragraphs after paragraph 
        (7):
            ``(8) the employment or utilization of one or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community- and 
        problem-oriented policing involving interaction with members of 
        the community on proactive crime control and prevention;
            ``(9) youth initiatives, such as activities involving 
        training, education, after school programs, cultural programs, 
        recreation and sports, career planning, and entrepreneurship 
        and employment; and
            ``(10) resident service programs, such as job training, 
        education programs, and other appropriate social services which 
        address the contributing factors of crime.''; and
            (8) by striking subsection (b).
    (d) Applications.--Section 5125 of such Act is amended--
            (1) in subsection (a)--
                    (A) by adding the paragraph designation ``(1)'' 
                immediately after ``In general.--'';
                    (B) in the first sentence, by striking ``, a public 
                housing resident management corporation,'';
                    (C) in the second sentence, by striking ``drug-
                related crime on the premises of'' and inserting in 
                lieu thereof the following: ``crime in and around''; 
                and
                    (D) by adding the following new paragraphs at the 
                end:
            ``(2) The Secretary shall, by regulation issued after 
        notice and opportunity for public comment, set forth criteria 
        for establishing a class of public housing agencies that have 
        especially severe crime problems. Any public housing agency 
        within this class may submit an application for a one-year 
        grant under this chapter that, subject to the availability of 
        appropriated amounts, shall be renewed for a period not 
        exceeding the four subsequent years: Provided, That the 
        Secretary finds, after an annual or more frequent performance 
        review, that the public housing agency is performing under the 
        terms of the grant and applicable laws in a satisfactory manner 
        and meets such other requirements as the Secretary may 
        prescribe.
            ``(3) Any eligible applicant may submit an application for 
        a grant for a period of up to two years. The Secretary may 
        accord a preference to applications seeking a subsequent grant 
        under this paragraph if the grant is to be used to continue or 
        expand activities assisted under a previous grant under this 
        paragraph and the Secretary finds that the applicant's program 
        under the prior grant is being managed soundly and demonstrates 
        success. Any preferences under the preceding sentence shall not 
        unreasonably prejudice the opportunities of other public 
        housing agencies to be awarded grants under this paragraph.'';
            (2) in subsection (b)--
                    (A) in the introductory material, by striking 
                ``subsections (c) and (d)'' and inserting in lieu 
                thereof ``subsections (a) and (c)'';
                    (B) in paragraph (1), by striking ``drug-related 
                crime problem in'' and inserting in lieu thereof the 
                following: ``crime problem in and around'';
                    (C) in paragraph (2), by inserting immediately 
                after ``crime problem in'' the following: ``and 
                around''; and
                    (D) in paragraph (4), by inserting after ``local 
                government'' the following: ``, local community-based 
                non-profit organizations, local resident organizations 
                that represent the residents of neighboring projects 
                that are owned or assisted by the Secretary,'';
            (3) in subsection (c)(2) by striking ``drug-related'' the 
        two places it appears; and
            (4) by striking subsection (d).
    (e) Definitions.--Section 5126 of such Act is amended by striking 
paragraphs (1) and (2), and renumbering paragraphs (3) and (4) as 
paragraphs (1) and (2), respectively.
    (f) Implementation.--Section 5127 of such Act is amended to read as 
follows:

``SEC 5127. IMPLEMENTATION.

    ``The Secretary shall issue regulations to implement this chapter 
within 180 days of the enactment of the Community Partnerships Against 
Crime Act.''.
    (g) Reports.--Section 5128 of such Act is amended by striking 
``drug-related crime in'' and inserting in lieu thereof the following: 
``crime in and around''.
    (h) Authorization of Appropriations.--Section 5130 of such Act is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``$175,000,000 for fiscal year 1993'' and all that follows and 
        inserting in lieu thereof: ``$265,000,000 for fiscal year 1994 
        and $325,000,000 for fiscal year 1995.'';
            (2) in subsection (b)--
                    (A) by striking ``Set-Asides'' and inserting in 
                lieu thereof ``Set-Aside'';
                    (B) by striking the first sentence;
                    (C) by striking ``drug elimination'';
                    (D) by striking ``fiscal years 1993 and 1994''; and
                    (E) by striking ``and 5.0 percent'' and all that 
                follows through the end of the sentence and inserting 
                in lieu thereof a period; and
            (3) by striking subsection (c) and section 520(k) of the 
        Cranston-Gonzalez National Affordable Housing Act.
    (i) Technical Assistance.--Such Act is further amended by adding at 
the end thereof the following new section:

``SEC. 5131. TECHNICAL ASSISTANCE.

    ``Of the amounts appropriated annually for each of fiscal years 
1994 and 1995 to carry out this chapter, the Secretary is authorized to 
use up to $10,000,000, directly or indirectly, under grants, contracts, 
cooperative agreements, or otherwise, to provide training, information 
services, and other technical assistance to public housing agencies and 
other entities with respect to their participation in the program 
authorized by this chapter. Such technical assistance may include the 
establishment and operation of the clearinghouse on drug abuse in 
public housing and the regional training program on drug abuse in 
public housing under sections 5143 and 5144 of this Act. The Secretary 
is also authorized to use the foregoing amounts for obtaining 
assistance in establishing and managing assessment and evaluation 
criteria and specifications, and obtaining the opinions of experts in 
relevant fields.''.
[EX A]: Community Partnerships Against Crime Act, or COMPAC - Amends the Public and Assisted Housing Drug Elimination Act of 1990 to expand the use of anti-drug crime public housing grants to all types of crime. 
Makes long-term (one-year initial, five-year total) grants available to public housing authorities with especially severe crime problems.  Makes other applicants eligible for two-year grants, with preference for subsequent funding.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Arson Prevention Act of 1994''.

SEC. 2. FINDINGS.

    Congress finds that_
        (1) arson is a serious and costly problem, and is responsible 
    for approximately 25 percent of all fires in the United States;
        (2) arson is a leading cause of fire deaths, accounting for 
    approximately 700 deaths annually in the United States, and is the 
    leading cause of property damage due to fire in the United States;
        (3) estimates of arson property losses are in the range of 
    $2,000,000,000 annually, or approximately 1 of every 4 dollars lost 
    to fire;
        (4) the incidence of arson in the United States is seriously 
    underreported, in part because of the lack of adequate 
    participation by local jurisdictions in the National Fire Incident 
    Reporting System (NFIRS) and the Uniform Crime Reporting (UCR) 
    program;
        (5) there is a need for expanded training programs for arson 
    investigators;
        (6) there is a need for improved programs designed to enable 
    volunteer firefighters to detect arson crimes and to preserve 
    evidence vital to the investigation and prosecution of arson cases;
        (7) according to the National Fire Protection Association, of 
    all the suspicious and incendiary fires estimated to occur, only 
    \1/3\ are confirmed as arson; and
        (8) improved training of arson investigators will increase the 
    ability of fire departments to identify suspicious and incendiary 
    fires, and will result in increased and more effective prosecution 
    of arson offenses.

SEC. 3. ARSON PREVENTION GRANTS.

    The Federal Fire Prevention and Control Act of 1974 is amended by 
inserting after section 24 (15 U.S.C. 2220) the following new section:

``SEC. 25. ARSON PREVENTION GRANTS.

    ``(a) Definitions._As used in this section:
        ``(1) Arson._The term `arson' includes all incendiary and 
    suspicious fires.
        ``(2) Office._The term `Office' means the Office of Fire 
    Prevention and Arson Control of the United States Fire 
    Administration.
    ``(b) Grants._The Administrator, acting through the Office, shall 
carry out a demonstration program under which not more than 10 grant 
awards shall be made to States, or consortia of States, for programs 
relating to arson research, prevention, and control.
    ``(c) Goals._In carrying out this section, the Administrator shall 
award 2-year grants on a competitive, merit basis to States, or 
consortia of States, for projects that promote one or more of the 
following goals:
        ``(1) To improve the training by States leading to professional 
    certification of arson investigators, in accordance with nationally 
    recognized certification standards.
        ``(2) To provide resources for the formation of arson task 
    forces or interagency organizational arrangements involving police 
    and fire departments and other relevant local agencies, such as a 
    State arson bureau and the office of a fire marshal of a State.
        ``(3) To combat fraud as a cause of arson and to advance 
    research at the State and local levels on the significance and 
    prevention of fraud as a motive for setting fires.
        ``(4) To provide for the management of arson squads, including_
            ``(A) training courses for fire departments in arson case 
        management, including standardization of investigative 
        techniques and reporting methodology;
            ``(B) the preparation of arson unit management guides; and
            ``(C) the development and dissemination of new public 
        education materials relating to the arson problem.
        ``(5) To combat civil unrest as a cause of arson and to advance 
    research at the State and local levels on the prevention and 
    control of arson linked to urban disorders.
        ``(6) To combat juvenile arson, such as juvenile fire-setter 
    counseling programs and similar intervention programs, and to 
    advance research at the State and local levels on the prevention of 
    juvenile arson.
        ``(7) To combat drug-related arson and to advance research at 
    the State and local levels on the causes and prevention of drug-
    related arson.
        ``(8) To combat domestic violence as a cause of arson and to 
    advance research at the State and local levels on the prevention of 
    arson arising from domestic violence.
        ``(9) To combat arson in rural areas and to improve the 
    capability of firefighters to identify and prevent arson initiated 
    fires in rural areas and public forests.
        ``(10) To improve the capability of firefighters to identify 
    and combat arson through expanded training programs, including_
            ``(A) training courses at the State fire academies; and
            ``(B) innovative courses developed with the Academy and 
        made available to volunteer firefighters through regional 
        delivery methods, including teleconferencing and satellite 
        delivered television programs.
    ``(d) Structuring of Applications._The Administrator shall assist 
grant applicants in structuring their applications so as to ensure that 
at least one grant is awarded for each goal described in subsection 
(c).
    ``(e) State Qualification Criteria._In order to qualify for a grant 
under this section, a State, or consortium of States, shall provide 
assurances adequate to the Administrator that the State or consortium_
        ``(1) will obtain at least 25 percent of the cost of programs 
    funded by the grant, in cash or in kind, from non-Federal sources;
        ``(2) will not as a result of receiving the grant decrease the 
    prior level of spending of funds of the State or consortium from 
    non-Federal sources for arson research, prevention, and control 
    programs;
        ``(3) will use no more than 10 percent of funds provided under 
    the grant for administrative costs of the programs; and
        ``(4) is making efforts to ensure that all local jurisdictions 
    will provide arson data to the National Fire Incident Reporting 
    System or the Uniform Crime Reporting program.
    ``(f) Extension._A grant awarded under this section may be extended 
for one or more additional periods, at the discretion of the 
Administrator, subject to the availability of appropriations.
    ``(g) Technical Assistance._The Administrator shall provide 
technical assistance to States in carrying out programs funded by 
grants under this section.
    ``(h) Consultation and Cooperation._In carrying out this section, 
the Administrator shall consult and cooperate with other Federal 
agencies to enhance program effectiveness and avoid duplication of 
effort, including the conduct of regular meetings initiated by the 
Administrator with representatives of other Federal agencies concerned 
with arson and concerned with efforts to develop a more comprehensive 
profile of the magnitude of the national arson problem.
    ``(i) Assessment._Not later than 18 months after the date of 
enactment of this subsection, the Administrator shall submit a report 
to Congress that_
        ``(1) identifies grants made under this section;
        ``(2) specifies the identity of grantees;
        ``(3) states the goals of each grant; and
        ``(4) contains a preliminary assessment of the effectiveness of 
    the grant program under this section.
    ``(j) Regulations._Not later than 90 days after the date of 
enactment of this subsection, the Administrator shall issue regulations 
to implement this section, including procedures for grant applications.
    ``(k) Administration._The Administrator shall directly administer 
the grant program required by this section, and shall not enter into 
any contract under which the grant program or any portion of the 
program will be administered by another party.
    ``(l) Purchase of American Made Equipment and Products._
        ``(1) Sense of congress._It is the sense of Congress that any 
    recipient of a grant under this section should purchase, when 
    available and cost-effective, American made equipment and products 
    when expending grant monies.
        ``(2) Notice to recipients of assistance._In allocating grants 
    under this section, the Administrator shall provide to each 
    recipient a notice describing the statement made in paragraph (1) 
    by the Congress.''.

SEC. 4. VOLUNTEER FIREFIGHTER TRAINING.

    Section 24(a)(2) of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2220(a)(2)) is amended by inserting before the 
semicolon the following: ``, with particular emphasis on the needs of 
volunteer firefighters for improved and more widely available arson 
training courses''.

SEC. 5. CPR TRAINING.

    The Federal Fire Prevention and Control Act of 1974 is amended by 
adding at the end the following new section:

``SEC. 32. CPR TRAINING.

    ``No funds shall be made available to a State or local government 
under section 25 unless such government has a policy to actively 
promote the training of its firefighters in cardiopulmonary 
resuscitation.''.

SEC. 6. FEDERAL EMPLOYEE HOUSING EXCEPTIONS.

    Section 31(c)(1) of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2227(c)(1)) is amended_
        (1) in subparagraph (A), by striking ``No Federal'' and 
    inserting in lieu thereof ``Except as otherwise provided in this 
    paragraph, no Federal''; and
        (2) by adding at the end the following new subparagraphs:
    ``(C) Housing covered by this paragraph that does not have an 
adequate and reliable electrical system shall not be subject to the 
requirement under subparagraph (A) for protection by hard-wired smoke 
detectors, but shall be protected by battery operated smoke detectors.
    ``(D) If funding has been programmed or designated for the 
demolition of housing covered by this paragraph, such housing shall not 
be subject to the fire protection requirements of subparagraph (A), but 
shall be protected by battery operated smoke detectors.''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    Section 17 of the Federal Fire Prevention and Control Act of 1974 
(15 U.S.C. 2216) is amended by adding at the end the following new 
subsection:
    ``(h) In addition to any other amounts that are authorized to be 
appropriated to carry out this Act, there are authorized to be 
appropriated to carry out this Act_
        ``(1) $500,000 for fiscal year 1995 for basic research on the 
    development of an advanced course on arson prevention;
        ``(2) $2,000,000 for fiscal year 1996 for the expansion of 
    arson investigator training programs at the Academy under section 
    24 and at the Federal Law Enforcement Training Center, or through 
    regional delivery sites;
        ``(3) $4,000,000 for each of fiscal years 1995 and 1996 for 
    carrying out section 25, except for salaries and expenses for 
    carrying out section 25; and
        ``(4) $250,000 for each of the fiscal years 1995 and 1996 for 
    salaries and expenses for carrying out section 25.''.

SEC. 8. SUNSET.

    Notwithstanding any other provision of this Act, no funds are 
authorized to be appropriated for any fiscal year after fiscal year 
1996 for carrying out the programs for which funds are authorized by 
this Act, or the amendments made by this Act.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.
[EX A]: Arson Prevention Act of 1994 - Amends the Fire Prevention and Control Act of 1974 to direct the Administrator of the United States Fire Administration, acting through the Office of Fire Prevention and Arson Control, to carry out a demonstration program under which not more than ten grant awards shall be made to States or consortia of States (States) for programs relating to arson research, prevention, and control. 
Directs the Administrator, in carrying out such provision, to award two-year grants on a competitive, merit basis to States for projects that promote one or more of specified goals, including:  (1) improving the training by States leading to professional certification of arson investigators; (2) providing resources for the formation of arson task forces or interagency organizational arrangements involving the police and fire departments and other relevant local agencies; (3) combating fraud as a cause of arson and advancing research at the State and local levels on the significance and prevention of fraud as a motive for setting fires; (4) combating juvenile arson, drug-related arson, and domestic violence as a cause of arson; and (5) improving the capability of firefighters to identify and combat arson through expanded training programs. 
Sets forth provisions regarding:  (1) the structuring of applications; (2) State qualification criteria; (3) the extension of grants; (4) technical assistance; (5) consultation and cooperation with other Federal agencies; (6) assessment; and (7) the purchase of American made equipment and products by grant recipients. 
(Sec. 4) Includes within a provision requiring the Administrator to provide training and instructional materials in skills and knowledge necessary to assist Federal, State, and local fire service and law enforcement personnel in arson prevention, detection, and control, a requirement that particular emphasis be placed on the needs of volunteer firefighters for improved and more widely available arson training courses. 
(Sec. 5) Prohibits making certain funds available to a State or local government under the Act unless such government has a policy to actively promote the training of its firefighters in cardiopulmonary resuscitation. 
(Sec. 6) Exempts Federal employee housing that does not have an adequate and reliable electrical system from the requirement for protection by hard-wired (but requires battery operated) smoke detectors. 
(Sec. 7) Authorizes appropriations, including appropriations for basic research on the development of an advanced course on arson prevention and for the expansion of arson investigator training programs at the National Fire Academy and the Federal Law Enforcement Training Center or through regional delivery sites. 
(Sec. 8) Prohibits any funds from being authorized to be appropriated for any fiscal year after FY 1996 for carrying out the programs for which funds are authorized by this Act or the amendments made by this Act.

[EX Q]: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Economic 
Revitalization Tax Act of 2001''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. CERTAIN INVESTMENTS IN UNITED STATES PROPERTY BY QUALIFIED 
              POSSESSIONS CORPORATIONS.

    (a) In General.--Section 956 (relating to investment of earnings in 
United States property) is amended by redesignating subsection (e) as 
subsection (f) and inserting after subsection (d) the following:
    ``(e) Separate Application of Section to Qualified Possessions 
Corporations.--
            ``(1) In general.--In the case of a qualified possessions 
        corporation, this section shall be applied separately with 
        respect to such corporation's qualified possessions income.
            ``(2) Definitions.--For purposes of this section--
                    ``(A) Qualified possessions corporation.--The term 
                `qualified possessions corporation' means any foreign 
                corporation which is a controlled foreign corporation 
                and is created or organized under the laws of the 
                Commonwealth of Puerto Rico or a possession of the 
                United States.
                    ``(B) Qualified possessions income.--The term 
                `qualified possessions income' means income earned by a 
                qualified possessions corporation in taxable years 
                beginning after December 31, 2001, from sources outside 
                the United States, from--
                            ``(i) the active conduct of a trade or 
                        business within the Commonwealth of Puerto Rico 
                        or a possession of the United States, or
                            ``(ii) the sale or exchange of 
                        substantially all of the assets used in the 
                        active conduct of such a trade or business.
            ``(3) Taxable years to which subsection is applicable.--
        This subsection shall be applicable with respect to any taxable 
        year of a qualified possessions corporation beginning after 
        December 31, 2001, for which an election under section 245(d) 
        is not in effect.''.
    (b) Certain Investments in United States Property.--Section 951(a) 
(relating to amounts included in gross income of United States 
shareholders) is amended by adding at the end the following:
            ``(4) Certain investments in united states property.--
                    ``(A) In general.--The amount determined under 
                paragraph (1)(B) with respect to a qualified 
                possessions corporation (as defined in section 
                956(e)(2)(A)) shall be reduced (but not below zero) by 
                the lesser of--
                            ``(i) 90 percent of the amount determined 
                        under section 956(e) with respect to such 
                        corporation for the taxable year, or
                            ``(ii) 90 percent of such corporation's 
                        cumulative qualified possessions income (as 
                        defined in section 956(e)(2)(B)), reduced by 
                        amounts (if any) previously allowed as a 
                        deduction under section 245(d).
                    ``(B) Succeeding taxable years.--In applying this 
                section and section 956 to any taxable year, any amount 
                not included in the gross income of a United States 
                shareholder of a qualified possessions corporation in a 
                prior taxable year solely by reason of the application 
                of subparagraph (A) shall be treated as if it had been 
                so included in the gross income of the United States 
                shareholder in such prior taxable year.''.

SEC. 3. DIVIDENDS RECEIVED DEDUCTION WITH RESPECT TO CERTAIN 
              DISTRIBUTIONS BY QUALIFIED POSSESSIONS CORPORATIONS.

    Section 245 (relating to dividends received from certain foreign 
corporations) is amended by adding at the end the following:
    ``(d) Dividends From Qualified Possessions Corporations.--
            ``(1) General rule.--In the case of a dividend described in 
        paragraph (2) received by a domestic corporation from an 
        electing qualified possessions corporation (as defined in 
        section 956(e)(2)(A)), there shall be allowed as a deduction an 
        amount equal to 85 percent of such dividend.
            ``(2) Eligible dividends.--A dividend is described in this 
        paragraph if such dividend is paid out of that portion of the 
        earnings and profits of a qualified possessions corporation 
        which does not exceed such corporation's accumulated qualified 
        possessions income (as defined in section 956(e)(2)(B)).
            ``(3) Elections.--
                    ``(A) In general.--An election under this 
                subsection shall be made by the qualified possessions 
                corporation at such time and in such manner as the 
                Secretary shall prescribe.
                    ``(B) Years for which election is effective.--An 
                election under this subsection shall be effective for 
                the taxable year of the qualified possessions 
                corporation beginning after December 31, 2001, for 
                which such election is made and for all succeeding 
                taxable years of such corporation, unless--
                            ``(i) the corporation ceases to be a 
                        qualified possessions corporation, or
                            ``(ii) the corporation revokes the 
                        election.
                    ``(C) New election by qualified possessions 
                corporation following termination.--If a qualified 
                possessions corporation has made an election under this 
                subsection and if such election has been terminated 
                under subparagraph (B), such corporation (and any 
                successor qualified possessions corporation) shall not 
                be eligible to make an election under this subsection 
                for any taxable year before the 5th taxable year which 
                begins after the 1st taxable year for which such 
                termination is effective, unless the Secretary consents 
                to such election.''.

SEC. 4. SAFE HARBOR RULE FOR CERTAIN TRANSFERS OR LICENSES OF 
              INTANGIBLE PROPERTY TO A QUALIFIED POSSESSIONS 
              CORPORATION.

    Section 367 (relating to foreign corporations) is amended by adding 
at the end the following:
    ``(g) Safe Harbor for Certain Transfers or Licenses of Intangible 
Property.--
            ``(1) General rule.--If subsection (d)(2)(A)(ii) or section 
        482 is otherwise applicable to the transfer or license of 
        qualified intangible property to an electing qualified 
        possessions corporation (as defined in section 956(e)(2)(A)), 
        the requirements of subsection (d)(2)(A)(ii) or section 482, as 
        the case may be, shall be treated as satisfied for all purposes 
        under this subtitle for any taxable year for which the electing 
        qualified possessions corporation computes its qualified 
        possessions income (as defined in section 956(e)(2)(B)) with 
        respect to its products or services involving the use of the 
        qualified intangible property in accordance with the same 
        method specified in section 936(h) (as in effect on the date of 
        the enactment of this subsection) which was used by the 
        domestic corporation referred to in paragraph (2)(A) for its 
        last taxable year beginning before the transfer or license to 
        the qualified possessions corporation.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Qualified intangible property.--The term 
                `qualified intangible property' means any intangible 
                property owned by a domestic corporation on the date of 
                the enactment of this section, but only if such 
                property was--
                            ``(i) developed or purchased by the 
                        domestic corporation, and
                            ``(ii) used directly in the active conduct 
                        by the domestic corporation of a trade or 
                        business for which credits were allowed under 
                        either section 30A or 936 for the taxable year 
                        within which the transfer or license occurs.
                    ``(B) Intangible property.--The term `intangible 
                property' means any intangible property (within the 
                meaning of subsection (d)) but only if such property 
                was used directly in connection with a manufacturing or 
                similar process within the taxable year referred to in 
                paragraph (2)(A)(ii).
            ``(3) Election.--
                    ``(A) In general.--An election under this 
                subsection shall be made by the qualified possessions 
                corporation, in such manner as the Secretary may 
                prescribe by regulations, prior to the 15th day of the 
                3d month following the close of the first taxable year 
                of such corporation beginning after December 31, 2001.
                    ``(B) Years for which effective.--An election under 
                this subsection shall apply to the taxable year for 
                which made and all subsequent years unless--
                            ``(i) the foreign corporation which is the 
                        transferee or licensee ceases to be a qualified 
                        possessions corporation, or
                            ``(ii) the Secretary consents to the 
                        revocation of the election.''.

SEC. 5. TECHNICAL AND CONFORMING CHANGES.

    (a) Imputed Interest.--Notwithstanding any provision of the 
Internal Revenue Code of 1986, no interest shall be imputed for any 
purpose under such Code with respect to any obligation issued to a 
qualified possessions corporation (as defined in section 956(e)(2)(A) 
of such Code, as added by section 2(a)) as part of a transaction to 
which section 956(e) of such Code (as so added) is applicable.
    (b) Constructive Dividends.--Notwithstanding any provision of the 
Internal Revenue Code of 1986, no amount of United States property held 
by a qualified possessions corporation (as defined in such section 
956(e)) pursuant to sections 951(a)(4) and 956(e) of such Code shall be 
treated as a dividend for any purpose under such Code.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
the enactment of this Act.
[EX A]:
Economic Revitalization Tax Act of 2001 - Amends Internal Revenue Code provisions concerning investment of earnings in U.S. property to set forth a separate rule governing any foreign corporation which is a controlled foreign corporation and is created or organized under the laws of the Commonwealth of Puerto Rico or a possession of the United States.Provides that in the case of certain dividends received by a domestic corporation from such a corporation, there shall be allowed as a deduction an amount equal to 85 percent of such dividend.Establishes a safe harbor rule for certain transfers or licenses of intangible property to such a corporation.