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

This Act may be cited as the ''Zero Gravity, Zero Tax Act of
2003''.

SEC. 2. EXCLUSION OF SPACE-RELATED INCOME FROM GROSS INCOME.

(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by redesignating section 140 as section
140A and inserting after section 139 the following new section:

''SEC. 140. SPACE-RELATED INCOME.

''(a) General Rule.--Gross income shall not include space-related
income.
''(b) Space-Related Income.--
''(1) In general.--For purposes of this section, the term
'space-related income' means--
''(A) income derived from the sale by the taxpayer
to an unrelated person of--
''(i) any product or article which is
produced by the taxpayer in outer space, and
''(ii) any service provided by the taxpayer
in or from outer space,
''(B) income of an individual attributable to
services performed in or from outer space by such
individual in a trade or business, and
''(C) any amount not described in subparagraph (A)
or (B) which is interest, rent, royalty, or similar
amount received with respect to production or service
described in subparagraph (A) or (B).
''(2) Exception for telecommunications services, etc.--
Paragraph (1)(A)(ii) shall not apply to--
''(A) any telecommunications service provided from
earth orbit,
''(B) any service provided by a weather or other
earth observation satellite, and
''(C) any other service provided on or before the
date of the enactment of this section of transporting
property to or from outer space.
''(3) Exception for wages.--Paragraph (1) shall not apply
to wages (as defined in section 3401) received by any employee
of an employer.
''(4) Proportional allocation between space-based and
earth-based activities.--In the case of any product or article
which is produced partly in space, space-related income shall
be an amount which bears the same ratio to the amount of gross
income attributable to the sale of such product or article as
the expenses attributable to producing such product or article
in space bears to the total expenses incurred in producing such
product or article.
''(5) Produced.--For purposes of this section, the term
'produced' includes created, fabricated, developed, grown,
manufactured, extracted, processed, cured, and aged.
''(c) Exclusion From Tariffs, Etc.--Any product--
''(1) which is manufactured in outer space, and
''(2) which was--
''(A) launched from, and returned to Earth, within
the United States, or
''(B) Manufactured at a facility in outer space
which is owned by 1 or more United States persons,
shall be exempt from all Federal excises, imposts, and
duties and any other Federal tariffs.
''(d) Phaseout of Benefits.--In the case of a taxable year
beginning after December 31, 2012, the amount excluded under subsection
(a) shall be reduced (but not below zero) by x/10th's of the amount
excludable without regard to this subsection, where 'x' is the number
of years such taxable year is after the last taxable year beginning
before January 1, 2013. A similar rule shall apply to the benefits
under subsection (c).''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by striking the last
item and inserting the following new items:

''Sec. 140. Space-related income.
''Sec. 140A. Cross references to other
Acts.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2003.

SEC. 3. CREDIT FOR PURCHASE OF QUALIFIED SPACE COMPANY STOCK.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by adding at the end the following new section:

''SEC. 45G. SPACE COMPANY INVESTMENT CREDIT.

''(a) General Rule.--For purposes of section 38, the space company
investment credit determined under this section for any taxable year is
the amount paid in the taxable year for the purchase of qualified stock
in a qualified space company.
''(b) Qualified Space Company.--For purposes of this section--
''(1) In general.--The term 'qualified space company' means
a domestic C corporation if for the 3-taxable-year period
ending with the taxable year immediately preceding the taxable
year in which qualified stock is purchased--
''(A) the average annual gross receipts of such
entity does not exceed $100,000,000, and
''(B) more than 70 percent of such gross receipts
are derived from space-based business.
''(2) Space-based business.--The term 'space-based
business' means a business whose gross receipts are
substantially space-related income, as defined in section
140(b).
''(3) Aggregation rules.--Rules similar to the rules of
section 1202(d)(3) shall apply.
''(c) Qualified Stock.--For purposes of this section--
''(1) In general.--Except as otherwise provided in this
section, the term 'qualified stock' means any stock in a
domestic C corporation if--
''(A) as of the date of issuance of such stock,
such corporation is a qualified space company, and
''(B) except as provided in subsections (f) and
(h), such stock is acquired by the taxpayer at its
original issue (directly or through an underwriter)--
''(i) in exchange for money or other
property (not including stock), or
''(ii) as compensation for services
provided to such corporation (other than
services performed as an underwriter of such
stock).
''(2) Active business requirement.--Stock in a corporation
shall not be treated as qualified stock unless, during
substantially all of the taxpayer's holding period for such
stock--
''(A) such corporation meets active business
requirements substantially similar to the requirements
of section 1202(e), determined on the basis that the
qualified trade or business is a space-based business,
and
''(B) such corporation is a C corporation.
''(3) Certain purchase by corporation of its own stock.--
Rules similar to the rules of section 1202(c)(3) shall apply.
''(e) Recapture.--If, during any taxable year ending with or within
the 10-year period beginning on the date qualified stock was purchased
by the taxpayer, the issuer of such stock ceases to a qualified space
company, the tax under this chapter for such taxable year shall be
increased by the aggregate decrease in the credits allowed under
section 38 for all prior taxable years which would have resulted solely
from reducing to zero any credit determined under subsection (a) with
respect to such stock.
''(f) Termination.--This section shall not apply to stock acquired
after December 31, 2011.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code (defining current year business credit) is amended
by striking ''plus'' at the end of paragraph (14), by striking the
period at the end of paragraph (15) and inserting '', plus'', and by
adding at the end the following new paragraph:
''(16) space company investment credit determined under
section 45G(a).''.
(c) Conforming Amendments.--
(1) Section 39(d) of such Code is amended by adding at the
end the following new paragraph:
''(11) No carryback of space company investment credit
before january 1, 2004.--No portion of the unused business
credit for any taxable year which is attributable to the space
company investment credit determined under section 45G may be
carried back to a taxable year beginning before January 1,
2004.''.
(2) Subsection (c) of section 196 of such Code is amended
by striking ''and'' at the end of paragraph (9), by striking
the period at the end of paragraph (10) and inserting '',
and'', and by adding at the end the following new paragraph:
''(11) the space company investment credit determined under
section 45G(a).''.
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:

''Sec. 45G. Space Company Investment
Credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to costs paid or incurred in taxable years beginning after
December 31, 2003.

SEC. 4. CAPITAL GAINS EXCLUSION.

(a) In General.--(1) Part I of subchapter P of the Internal Revenue
Code of 1986 (relating to treatment of capital gains) is amended by
adding at the end the following new section:

''SEC. 1203. EXCLUSION FOR GAINS FROM SALE OR EXCHANGE OF STOCK OF
QUALIFIED SPACE CORPORATIONS.

''(a) In General.--Gross income shall not include gain on the sale
or exchange of any stock of a qualified space corporation.
''(b) Qualified Space Corporation.--For purposes of subsection (a),
the term 'qualified space corporation' means, with respect to any
taxable year, a domestic corporation which is a C corporation if--
''(1) such corporation is organized exclusively for
providing to unrelated persons--
''(A) any product or article which is produced
(within the meaning of section 140(b)(5)) by the
corporation in outer space, or
''(B) any service provided by the corporation in or
from outer space, and
''(2) At least 90 percent of the expenses of such
corporation are attributable to the active conduct of a trade
or business of providing a product, article, or service
described in paragraph (1).
Such term shall not include a corporation providing a service, product,
or article described in section 140(b)(2).''.
(2) Clerical Amendment.--The table of sections for part I of
subchapter P of such Code is amended by adding at the end the following
new item:

''Sec. 1203. Exclusion for gains from
sale or exchange of stock of
qualified space
corporations.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2003.

SOLUTION: Zero Gravity, Zero Tax Act of 2003 - Amends the Internal Revenue Code to exclude from gross income: (1) space-related income; and (2) gain on the sale or exchange of any stock of a qualified space corporation.Establishes a space company investment credit for the purchase of qualified stock in a qualified space company.

PROBLEM: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Retirement Security for Life Act of
2004''.

SEC. 2. EXCLUSION FOR LIFETIME ANNUITY PAYMENTS.

(a) Lifetime Annuity Payments Under Annuity Contracts.--Section
72(b) of the Internal Revenue Code of 1986 (relating to exclusion
ratio) is amended by adding at the end the following new paragraph:
''(5) Exclusion for lifetime annuity payments.--
''(A) In general.--In the case of lifetime annuity
payments received under one or more annuity contracts
in any taxable year, gross income shall not include 50
percent of the portion of lifetime annuity payments
otherwise includible (without regard to this paragraph)
in gross income under this section. For purposes of the
preceding sentence, the amount excludible from gross
income in any taxable year shall not exceed $20,000.
''(B) Cost-of-living adjustment.--In the case of
taxable years beginning after December 31, 2005, the
$20,000 amount in subparagraph (A) shall be increased
by an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting 'calendar year 2004'
for 'calendar year 1992' in subparagraph (B)
thereof.
If any amount as increased under the preceding sentence
is not a multiple of $500, such amount shall be rounded
to the next lower multiple of $500.
''(C) Application of paragraph.--Subparagraph (A)
shall not apply to--
''(i) any amount received under an eligible
deferred compensation plan (as defined in
section 457(b)) or under a qualified retirement
plan (as defined in section 4974(c)),
''(ii) any amount paid under an annuity
contract that is received by the beneficiary
under the contract--
''(I) after the death of the
annuitant in the case of payments
described in subsection
(c)(5)(A)(ii)(III), unless the
beneficiary is the surviving spouse of
the annuitant, or
''(II) after the death of the
annuitant and joint annuitant in the
case of payments described in
subsection (c)(5)(A)(ii)(IV), unless
the beneficiary is the surviving spouse
of the last to die of the annuitant and
the joint annuitant, or
''(iii) any annuity contract that is a
qualified funding asset (as defined in section
130(d)), but without regard to whether there is
a qualified assignment.
''(D) Investment in the contract.--For purposes of
this section, the investment in the contract shall be
determined without regard to this paragraph.''.
(b) Definitions.--Subsection (c) of section 72 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
''(5) Lifetime annuity payment.--
''(A) In general.--For purposes of subsection
(b)(5), the term 'lifetime annuity payment' means any
amount received as an annuity under any portion of an
annuity contract, but only if--
''(i) the only person (or persons in the
case of payments described in subclause (II) or
(IV) of clause (ii)) legally entitled (by
operation of the contract, a trust, or other
legally enforceable means) to receive such
amount during the life of the annuitant or
joint annuitant is such annuitant or joint
annuitant, and
''(ii) such amount is part of a series of
substantially equal periodic payments made not
less frequently than annually over--
''(I) the life of the annuitant,
''(II) the lives of the annuitant
and a joint annuitant, but only if the
annuitant is the spouse of the joint
annuitant as of the annuity starting
date or the difference in age between
the annuitant and joint annuitant is 15
years or less,
''(III) the life of the annuitant
with a minimum period of payments or
with a minimum amount that must be paid
in any event, or
''(IV) the lives of the annuitant
and a joint annuitant with a minimum
period of payments or with a minimum
amount that must be paid in any event,
but only if the annuitant is the spouse
of the joint annuitant as of the
annuity starting date or the difference
in age between the annuitant and joint
annuitant is 15 years or less.
''(iii) Exceptions.--For purposes of clause
(ii), annuity payments shall not fail to be
treated as part of a series of substantially
equal periodic payments--
''(I) because the amount of the
periodic payments may vary in
accordance with investment experience,
reallocations among investment options,
actuarial gains or losses, cost of
living indices, a constant percentage
applied not less frequently than
annually, or similar fluctuating
criteria,
''(II) due to the existence of, or
modification of the duration of, a
provision in the contract permitting a
lump sum withdrawal after the annuity
starting date, or
''(III) because the period between
each such payment is lengthened or
shortened, but only if at all times
such period is no longer than one
calendar year.
''(B) Annuity contract.--For purposes of
subparagraph (A) and subsections (b)(5) and (w), the
term 'annuity contract' means a commercial annuity (as
defined by section 3405(e)(6)), other than an endowment
or life insurance contract.
''(C) Minimum period of payments.--For purposes of
subparagraph (A), the term 'minimum period of payments'
means a guaranteed term of payments that does not
exceed the greater of 10 years or--
''(i) the life expectancy of the annuitant
as of the annuity starting date, in the case of
lifetime annuity payments described in
subparagraph (A)(ii)(III), or
''(ii) the life expectancy of the annuitant
and joint annuitant as of the annuity starting
date, in the case of lifetime annuity payments
described in subparagraph (A)(ii)(IV).
For purposes of this subparagraph, life expectancy
shall be computed with reference to the tables
prescribed by the Secretary under paragraph (3). For
purposes of subsection (w)(1)(C)(ii), the permissible
minimum period of payments shall be determined as of
the annuity starting date and reduced by one for each
subsequent year.
''(D) Minimum amount that must be paid in any
event.--For purposes of subparagraph (A), the term
'minimum amount that must be paid in any event' means
an amount payable to the designated beneficiary under
an annuity contract that is in the nature of a refund
and does not exceed the greater of the amount applied
to produce the lifetime annuity payments under the
contract or the amount, if any, available for
withdrawal under the contract on the date of death.''.
(c) Recapture Tax for Lifetime Annuity Payments.--Section 72 of the
Internal Revenue Code of 1986 is amended by redesignating subsection
(w) as subsection (x) and by inserting after subsection (v) the
following new subsection:
''(w) Recapture Tax for Modifications to or Reductions in Lifetime
Annuity Payments.--
''(1) In general.--If any amount received under an annuity
contract is excluded from income by reason of subsection (b)(5)
(relating to lifetime annuity payments), and--
''(A) the series of payments under such contract is
subsequently modified so any future payments are not
lifetime annuity payments,
''(B) after the date of receipt of the first
lifetime annuity payment under the contract an
annuitant receives a lump sum and thereafter is to
receive annuity payments in a reduced amount under the
contract, or
''(C) after the date of receipt of the first
lifetime annuity payment under the contract the dollar
amount of any subsequent annuity payment is reduced and
a lump sum is not paid in connection with the
reduction, unless such reduction is--
''(i) due to an event described in
subsection (c)(5)(A)(iii), or
''(ii) due to the addition of, or increase
in, a minimum period of payments within the
meaning of subsection (c)(5)(C) or a minimum
amount that must be paid in any event (within
the meaning of subsection (c)(5)(D)),
then gross income for the first taxable year in which such
modification or reduction occurs shall be increased by the
recapture amount.
''(2) Recapture amount.--
''(A) In general.--For purposes of this subsection,
the recapture amount shall be the amount, determined
under rules prescribed by the Secretary, equal to the
amount that (but for subsection (b)(5)) would have been
includible in the taxpayer's gross income if the
modification or reduction described in paragraph (1)
had been in effect at all times, plus interest for the
deferral period at the underpayment rate established by
section 6621.
''(B) Deferral period.--For purposes of this
subsection, the term 'deferral period' means the period
beginning with the taxable year in which (without
regard to subsection (b)(5)) the payment would have
been includible in gross income and ending with the
taxable year in which the modification described in
paragraph (1) occurs.
''(3) Exceptions to recapture tax.--Paragraph (1) shall not
apply in the case of any modification or reduction that occurs
because an annuitant--
''(A) dies or becomes disabled (within the meaning
of subsection (m)(7)),
''(B) becomes a chronically ill individual within
the meaning of section 7702B(c)(2), or
''(C) encounters hardship.''.
(d) Lifetime Distributions of Life Insurance Death Benefits.--
(1) In general.--Section 101(d) of the Internal Revenue
Code of 1986 (relating to payment of life insurance proceeds at
a date later than death) is amended by adding at the end the
following new paragraph:
''(4) Exclusion for lifetime annuity payments.--
''(A) In general.--In the case of amounts to which
this subsection applies, gross income shall not include
the lesser of--
''(i) 50 percent of the portion of lifetime
annuity payments otherwise includible in gross
income under this section (determined without
regard to this paragraph), or
''(ii) the amount in effect under section
72(b)(5).
''(B) Rules of section 72(b)(5) to apply.--For
purposes of this paragraph, rules similar to the rules
of section 72(b)(5) and section 72(w) shall apply,
substituting the term 'beneficiary of the life
insurance contract' for the term 'annuitant' wherever
it appears, and substituting the term 'life insurance
contract' for the term 'annuity contract' wherever it
appears.''.
(2) Conforming amendment.--Section 101(d)(1) of such Code
is amended by inserting ''or paragraph (4)'' after ''to the
extent not excluded by the preceding sentence''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to amounts received in calendar years beginning after the
date of the enactment of this Act.
(2) Special rule for existing contracts.--In the case of a
contract in force on the date of the enactment of this Act that
does not satisfy the requirements of section 72(c)(5)(A) of the
Internal Revenue Code of 1986 (as added by this section), or
requirements similar to such section 72(c)(5)(A) in the case of
a life insurance contract), any modification to such contract
(including a change in ownership) or to the payments thereunder
that is made to satisfy the requirements of such section (or
similar requirements) shall not result in the recognition of
any gain or loss, any amount being included in gross income, or
any addition to tax that otherwise might result from such
modification, but only if the modification is completed prior
to the date that is 2 years after the date of the enactment of
this Act.

SOLUTION: Retirement Security for Life Act of 2004 - Amends the Internal Revenue Code to allow an exclusion from gross income for 50 percent of the amount otherwise includible in gross income as guaranteed payments from certain annuity or life insurance contracts. Limits the amount of such exclusion to $20,000 in any taxable year. Provides for an inflation adjustment of the $20,000 limitation beginning in 2006.

PROBLEM: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Berry Amendment Extension Act''.

SEC. 2. BUY-AMERICAN REQUIREMENT IMPOSED ON DEPARTMENT OF HOMELAND
SECURITY; EXCEPTIONS.

(a) Requirement.--Except as provided in subsections (c) through
(e), funds appropriated or otherwise available to the Department of
Homeland Security may not be used for the procurement of an item
described in subsection (b) if the item is not grown, reprocessed,
reused, or produced in the United States.
(b) Covered Items.--An item referred to in subsection (a) is any of
the following, if the item is directly related to the national security
interests of the United States:
(1) An article or item of--
(A) clothing and the materials and components
thereof, other than sensors, electronics, or other
items added to, and not normally associated with,
clothing (and the materials and components thereof);
(B) tents, tarpaulins, or covers;
(C) cotton and other natural fiber products, woven
silk or woven silk blends, spun silk yarn for cartridge
cloth, synthetic fabric or coated synthetic fabric
(including all textile fibers and yarns that are for
use in such fabrics), canvas products, or wool (whether
in the form of fiber or yarn or contained in fabrics,
materials, or manufactured articles); or
(D) any item of individual equipment manufactured
from or containing such fibers, yarns, fabrics, or
materials.
(c) Availability Exception.--Subsection (a) does not apply to the
extent that the Secretary of Homeland Security determines that
satisfactory quality and sufficient quantity of any such article or
item described in subsection (b)(1) grown, reprocessed, reused, or
produced in the United States cannot be procured as and when needed.
(d) Exception for Certain Procurements Outside the United States.--
Subsection (a) does not apply to the following:
(1) Procurements by vessels in foreign waters.
(2) Emergency procurements.
(e) Exception for Small Purchases.--Subsection (a) does not apply
to purchases for amounts not greater than the simplified acquisition
threshold referred to in section 2304(g) of title 10, United States
Code.
(f) Applicability to Contracts and Subcontracts for Procurement of
Commercial Items.--This section is applicable to contracts and
subcontracts for the procurement of commercial items notwithstanding
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
430).
(g) Geographic Coverage.--In this section, the term ''United
States'' includes the possessions of the United States.
(h) Notification Required Within 7 Days After Contract Award if
Certain Exceptions Applied.--In the case of any contract for the
procurement of an item described in subsection (b)(1), if the Secretary
of Homeland Security applies an exception set forth in subsection (c)
with respect to that contract, the Secretary shall, not later than 7
days after the award of the contract, post a notification that the
exception has been applied on the Internet site maintained by the
General Services Administration know as FedBizOps.gov (or any successor
site).
(i) Training During Fiscal Year 2008.--
(1) In general.--The Secretary of Homeland Security shall
ensure that each member of the acquisition workforce in the
Department of Homeland Security who participates personally and
substantially in the acquisition of textiles on a regular basis
receives training during fiscal year 2008 on the requirements
of this section and the regulations implementing this section.
(2) Inclusion of information in new training programs.--The
Secretary shall ensure that any training program for the
acquisition workforce developed or implemented after the date
of the enactment of this Act includes comprehensive information
on the requirements described in paragraph (1).
(j) Consistency With International Agreements.--
(1) In general.--No provision of this Act shall apply to
the extent the Secretary of Homeland Security, in consultation
with the United States Trade Representative, determines that it
is in inconsistent with United States obligations under an
international agreement.
(2) Report.--The Secretary of Homeland Security shall
submit a report each year to Congress containing, with respect
to the year covered by the report--
(A) a list of each provision of this Act that did
not apply during that year pursuant to a determination
by the Secretary under paragraph (1); and
(B) a list of each contract awarded by the
Department of Homeland Security during that year
without regard to a provision in this Act because that
provision was made inapplicable pursuant to such a
determination.
(k) Effective Date.--This section applies with respect to contracts
entered into by the Department of Homeland Security after the date of
the enactment of this Act.

SOLUTION:
Berry Amendment Extension Act - Prohibits the Department of Homeland Security (DHS) from procuring specified covered items directly related to national security interests (including clothing, tents, or natural fiber products) that are not grown, reprocessed, reused, or produced in the United States, except to the extent satisfactory quality and sufficient quantity of any such product cannot be procured as and when needed.

Makes additional exceptions for: (1) procurements by vessels in foreign waters; (2) emergency procurements; and (3) purchases for amounts not greater than the simplified acquisition threshold ($100,000). Directs the Secretary to ensure that: (1) each member of DHS's acquisition workforce who regularly participates in textile acquisition receives training during FY2008 on this Act's requirements; and (2) any such training includes comprehensive information on such requirements. Makes this Act inapplicable to the extent that it is inconsistent with U.S. obligations under an international agreement.