Q: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Double Taxation Elimination and
Economic Growth Act of 2003''.

SEC. 2. DEDUCTION FOR DIVIDENDS PAID.

(a) In General.--Part VIII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to special deductions for
corporations) is amended by adding at the end the following new
section:

''SEC. 250. DIVIDENDS PAID BY CORPORATIONS.

''(a) In General.--In the case of a domestic corporation, there
shall be allowed as a deduction for the taxable year an amount equal to
the amount of dividends paid during the taxable year.
''(b) Exceptions.--Subsection (a) shall not apply to--
''(1) any dividend from--
''(A) a regulated investment company,
''(B) a real estate investment trust, or
''(C) an S corporation,
''(2) any dividend of a corporation which for the taxable
year of the corporation in which the distribution is made is a
corporation exempt from tax under section 521 (relating to
farmers' cooperative associations), and
''(3) any dividend described in section 404(k).
''(c) Disallowance of Dividends Received Deduction.--In the case of
the deduction allowed by subsection (a) with respect to any dividend,
no deduction shall be allowed under any other provision of this part
with respect to such dividend.''.
(b) Clerical Amendment.--The table of sections for part VIII of
subchapter B of chapter 1 of such Code is amended by adding at the end
the following new item:

''Sec. 250. Dividends paid by
corporations.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.

SEC. 3. DIVIDENDS RECEIVED BY INDIVIDUALS TAXED AT CAPITAL GAIN RATES.

(a) In General.--Subsection (h) of section 1 of the Internal
Revenue Code of 1986 (relating to maximum capital gains rate) is
amended by adding at the end the following new paragraph:
''(13) Dividends taxed as net capital gain.--
''(A) In general.--For purposes of this subsection,
the term 'net capital gain' means net capital gain
(determined without regard to this paragraph) increased
by qualified dividend income.
''(B) Qualified dividend income.--For purposes of
this paragraph, the term 'qualified dividend income'
means dividends received from domestic corporations
during the taxable year other than--
''(i) any dividend from a corporation which
for the taxable year of the corporation in
which the distribution is made, or the
preceding taxable year, is a corporation exempt
from tax under section 501 or 521,
''(ii) any dividend from a real estate
investment trust which, for the taxable year in
which the dividend is paid, qualified under
part II of subchapter M,
''(iii) any amount allowed as a deduction
under section 591 (relating to deduction for
dividends paid by mutual savings banks, etc.),
''(iv) any dividend described in section
404(k),
''(v) any dividend on any share of stock
with respect to which the holding period
requirements of section 246(c) are not met, and
''(vi) any dividend which the taxpayer
takes into account as investment income under
section 163(d)(4)(B).
''(C) Special rule for nonresident aliens.--In the
case of a nonresident alien individual, subparagraph
(A) shall apply only--
''(i) in determining the tax imposed for
the taxable year pursuant to section 871(b) and
only in respect of dividends which are
effectively connected with the conduct of a
trade or business within the United States, and
''(ii) in determining the tax imposed for
the taxable year pursuant to section 877.
''(D) Treatment of dividends from regulated
investment companies.--

''For treatment of dividends from
regulated investment companies, see section 854.''.
(b) Treatment of Dividends From Regulated Investment Companies.--
(1) Subsection (a) of section 854 of such Code is amended
by inserting ''section 1(h)(13) (relating to maximum rate of
tax on dividends) and'' after ''For purposes of''.
(2) Paragraph (1) of section 854(b) of such Code is amended
by redesignating subparagraph (B) as subparagraph (C) and by
inserting after subparagraph (A) the following new
subparagraph:
''(B) Maximum rate under section 1(h).--
''(i) In general.--If the aggregate
dividends received by a regulated investment
company during any taxable year are less than
95 percent of its gross income, then, in
computing the maximum rate under section
1(h)(13), rules similar to the rules of
subparagraph (A) shall apply.
''(ii) Gross income.--For purposes of
clause (i), in the case of 1 or more sales or
other dispositions of stock or securities, the
term 'gross income' includes only the excess
of--
''(I) the net short-term capital
gain from such sales or dispositions,
over
''(II) the net long-term capital
loss from such sales or
dispositions.''.
(3) Subparagraph (C) of section 854(b)(1) of such Code, as
redesignated by paragraph (2), is amended by striking
''subparagraph (A)'' and inserting ''subparagraph (A) or (B)''.
(4) Paragraph (2) of section 854(b) of such Code is amended
by inserting ''the maximum rate under section 1(h)(13) and''
after ''for purposes of''.
(c) Exclusion of Dividends From Investment Income.--Subparagraph
(B) of section 163(d)(4) of such Code is amended by adding at the end
the following flush sentence:
''Such term shall include qualified dividend income (as
defined in section 1(h)(13)(B)) only to the extent the
taxpayer elects to treat such income as investment
income for purposes of this subsection.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
A:
Double Taxation Elimination and Economic Growth Act of 2003 - Amends the Internal Revenue Code to: (1) allow, for a corporation, a deduction for dividends paid; and (2) tax dividends received by individuals as capital gain.