Text: H.R.5240 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 5240 IH
102d CONGRESS
2d Session
 H. R. 5240
To amend the Internal Revenue Code of 1986 to extend certain expiring tax
provisions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 21, 1992
Mr. GUARINI (for himself, Mr. MCGRATH, Mrs. KENNELLY, Mr. FORD of Tennessee,
Mr. MOODY, Mr. CARDIN, Mr. THOMAS of California, Mr. DOWNEY, Mr. PICKLE,
Mr. RANGEL, Mr. SCHULZE, Mr. JENKINS, Mr. MATSUI, Mr. COYNE, Mr. ANDREWS of
Texas, Mr. DORGAN of North Dakota, Mr. DONNELLY, Mr. VANDER JAGT, Mr. SHAW,
Mrs. JOHNSON of Connecticut, Mr. MCDERMOTT, Mr. GEJDENSON, Mr. FRANK of
Massachusetts, Mr. BREWSTER, Mr. CONYERS, Mr. NOWAK, Mrs. LLOYD, Mr. FRANKS of
Connecticut, Mr. DWYER of New Jersey, Ms. KAPTUR, Mr. SERRANO, Mr. FOGLIETTA,
Mr. TORRICELLI, and Mr. CHANDLER) 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 extend certain expiring tax
provisions, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
  (a) SHORT TITLE- This Act may be cited as the `Tax Extension Act of 1992'.
  (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. ALLOCATION OF RESEARCH AND EXPERIMENTAL EXPENDITURES.
  (a) IN GENERAL- Paragraph (5) of section 864(f) (relating to allocation
  of research and experimental expenditures) is amended--
  (1) by striking `3 taxable years' in subparagraph (A) and inserting `4
  taxable years',
  (2) by striking `August 1, 1992' in subparagraph (A) and inserting `August
  1, 1993', and
  (3) by striking `August 1, 1991' in subparagraph (B) and inserting `August
  1, 1992'.
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  taxable years beginning after August 1, 1992.
SEC. 3. RESEARCH CREDIT.
  (a) IN GENERAL- Subsection (h) of section 41 (relating to credit for
  increasing research activities) is amended--
  (1) by striking `June 30, 1992' each place it appears and inserting
  `December 31, 1993'; and
  (2) by striking `July 1, 1992' each place it appears and inserting `January
  1, 1994'.
  (b) CONFORMING AMENDMENT- Subparagraph (D) of section 28(b)(1) is amended
  by striking `June 30, 1992' and inserting `December 31, 1993'.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  amounts paid or incurred after June 30, 1992.
SEC. 4. LOW-INCOME HOUSING CREDIT.
  (a) EXTENSION-
  (1) IN GENERAL-
  (A) Paragraph (1) of section 42(o) (relating to termination of low-income
  housing credit) is amended--
  (i) by inserting `, for any calendar year after 1993' after `paragraph (2)',
  (ii) by striking `to any amount allocated after June 30, 1992' in
  subparagraph (A), and
  (iii) by striking `June 30, 1992' in subparagraph (B) and inserting `1993'.
  (B) Paragraph (2) of section 42(o) is amended--
  (i) by striking `July 1, 1992' each place it appears and inserting `1994',
  (ii) by striking `June 30, 1992' in subparagraph (B) and inserting `December
  31, 1993',
  (iii) by striking `June 30, 1994' in subparagraph (B) and inserting
  `December 31, 1995', and
  (iv) by striking `July 1, 1994' in subparagraph (C) and inserting `January
  1, 1996'.
  (2) EFFECTIVE DATE- The amendments made by paragraph (1) shall apply to
  periods ending after June 30, 1992.
  (b) MODIFICATIONS-
  (1) CARRYFORWARD RULES-
  (A) IN GENERAL- Clause (ii) of section 42(h)(3)(D) (relating to unused
  housing credit carryovers allocated among certain States) is amended by
  striking `the excess' and all that follows and inserting `the excess (if any)
  of the unused State housing credit ceiling for the year preceding such year
  over the aggregate housing credit dollar amount allocated for such year.'
  (B) CONFORMING AMENDMENT- The second sentence of section 42(h)(3)(C)
  (relating to State housing credit ceiling) is amended by striking `clauses
  (i) and (iii)' and inserting `clauses (i) through (iv)'.
  (2) 10-YEAR ANTI-CHURNING RULE WAIVER EXPANDED- Clause (ii) of section
  42(d)(6)(B) (defining federally assisted building) is amended by inserting
  `, 221(d)(4),' after `221(d)(3)'.
  (3) UNITS WITH CERTAIN FULL-TIME STUDENTS NOT DISQUALIFIED- Subparagraph
  (D) of section 42(i) (relating to definitions and special rules) is amended
  to read as follows:
  `(D) CERTAIN STUDENTS NOT TO DISQUALIFY UNIT- A unit shall not fail to be
  treated as a low-income unit merely because it is occupied--
  `(i) by an individual who is--
  `(I) a student and receiving assistance under title IV of the Social
  Security Act, or
  `(II) enrolled in a job training program receiving assistance under the
  Job Training Partnership Act or under other similar Federal, State, or
  local laws, or
  `(ii) entirely by full-time students if such students are--
  `(I) single parents and their children and such parents and children are
  not dependents (as defined in section 152) of another individual, or
  `(II) married and file a joint return.'
  (4) TREASURY WAIVERS OF CERTAIN DE MINIMIS ERRORS AND RECERTIFICATIONS-
  Subsection (g) of section 42 (relating to qualified low-income housing
  projects) is amended by adding at the end thereof the following new
  paragraph:
  `(8) WAIVER OF CERTAIN DE MINIMIS ERRORS AND RECERTIFICATIONS- On application
  by the taxpayer, the Secretary may waive--
  `(A) any recapture under subsection (j) in the case of any de minimis
  error in complying with paragraph (1), or
  `(B) any annual recertification of tenant income for purposes of this
  subsection, if the entire building is occupied by low-income tenants.'
  (5) BASIS OF COMMUNITY SERVICE AREAS INCLUDED IN ADJUSTED BASIS- Paragraph
  (4) of section 42(d) (relating to special rules relating to determination
  of adjusted basis) is amended--
  (A) by striking `subparagraph (B)' in subparagraph (A) and inserting
  `subparagraphs (B) and (C)',
  (B) by redesignating subparagraph (C) as subparagraph (D), and
  (C) by inserting after subparagraph (B) the following new subparagraph:
  `(C) BASIS OF PROPERTY IN COMMUNITY SERVICE AREAS INCLUDED- The adjusted
  basis of any building located in a qualified census tract shall be
  determined by taking into account the adjusted basis of property (of a
  character subject to the allowance for depreciation) used in functionally
  related and subordinate community activity facilities if--
  `(i) the size of the facilities is commensurate with tenant needs,
  `(ii) the use of such facilities is predominantly by tenants and employees
  of the building owner, and
  `(iii) not more than 20 percent of the building's eligible basis is
  attributable to the aggregate basis of such facilities.'
  (6) EFFECTIVE DATES-
  (A) IN GENERAL- Except as provided in subparagraph (B), the amendments
  made by this subsection shall apply to--
  (i) determinations under section 42 of the Internal Revenue Code of 1986
  with respect to housing credit dollar amounts allocated from State housing
  credit ceilings after June 30, 1992, or
  (ii) buildings placed in service after June 30, 1992, to the extent paragraph
  (1) of section 42(h) of such Code does not apply to any building by reason of
  paragraph (4) thereof, but only with respect to bonds issued after such date.
  (B) WAIVER AUTHORITY- The amendments made by paragraphs (2) and (4) shall
  take effect on the date of the enactment of this Act.
  (c) ELECTION TO DETERMINE RENT LIMITATION BASED ON NUMBER OF BEDROOMS- In
  the case of a building to which the amendments made by section 7108(e)(1)
  of the Revenue Reconciliation Act of 1989 did not apply, the taxpayer
  may elect to have such amendments apply to such building but only with
  respect to tenants first occupying any unit in the building after the
  date of the election. Such an election may be made only during the 180 day
  period beginning on the date of the enactment of this Act, and, once made,
  shall be irrevocable.
SEC. 5. TARGETED JOBS CREDIT.
  (a) IN GENERAL- Paragraph (4) of section 51(c) (relating to termination)
  is amended by striking `June 30, 1992' and inserting `December 31, 1993'.
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  individuals who begin work for the employer after June 30, 1992.
SEC. 6. QUALIFIED MORTGAGE BONDS.
  (a) IN GENERAL- Subparagraph (B) of section 143(a)(1) (defining qualified
  mortgage bond) is amended by striking `June 30, 1992' and inserting
  `December 31, 1993'.
  (b) MORTGAGE CREDIT CERTIFICATES- Subsection (h) of section 25 (relating
  to interest on certain home mortgages) is amended by striking `June 30,
  1992' and inserting `December 31, 1993'.
  (c) TREATMENT OF RESALE PRICE CONTROL AND SUBSIDY LIEN PROGRAMS- Subsection
  (k) of section 143 is amended by adding at the end thereof the following
  new paragraph:
  `(10) TREATMENT OF RESALE PRICE CONTROL AND SUBSIDY LIEN PROGRAMS-
  `(A) IN GENERAL- In the case of a residence which is located in a high
  housing cost area (as defined in section 143(f)(5)), the interest of a
  governmental unit in such residence by reason of financing provided under
  any qualified program shall not be taken into account under this section
  (other than subsection (m)), and the acquisition cost of the residence which
  is taken into account under subsection (e) shall be such cost reduced by
  the amount of such financing.
  `(B) QUALIFIED PROGRAM- For purposes of subparagraph (A), the term `qualified
  program' means any governmental program providing second mortgage loans--
  `(i) which restricts the resale of the residence to a purchaser qualifying
  under this section and to a price determined by an index that reflects
  less than the full amount of any appreciation in the residence's value, or
  `(ii) which provides for deferred or reduced interest payments on such
  financing and grants the governmental unit a share in the appreciation of
  the residence,
but only if such financing is not provided directly or indirectly through
the use of any private activity bond.'
  (d) EFFECTIVE DATES-
  (1) BONDS- The amendment made by subsection (a) shall apply to bonds issued
  after June 30, 1992.
  (2) CERTIFICATES- The amendment made by subsection (b) shall apply to
  elections for periods after June 30, 1992.
  (3) PROGRAMS- The amendment made by subsection (c) shall apply to qualified
  mortgage bonds issued and mortgage credit certificates provided on or
  after the date of the enactment of this Act.
SEC. 7. QUALIFIED SMALL ISSUE BONDS.
  (a) IN GENERAL- Subparagraph (B) of section 144(a)(12) (relating to
  termination dates) is amended by striking `June 30, 1992' and inserting
  `December 31, 1993'.
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  bonds issued after June 30, 1992.
SEC. 8. EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE.
  (a) IN GENERAL- Subsection (d) of section 127 (relating to educational
  assistance programs) is amended by striking `June 30, 1992' and inserting
  `December 31, 1993'.
  (b) CONFORMING AMENDMENT- Paragraph (2) of section 103 of the Tax Extension
  Act of 1991 is hereby repealed.
  (c) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
  taxable years ending after June 30, 1992.
SEC. 9. EMPLOYER-PROVIDED GROUP LEGAL SERVICES PLANS.
  (a) IN GENERAL- Subsection (e) of section 120 (relating to amounts received
  under qualified group legal services plans) is amended by striking `June
  30, 1992' and inserting `December 31, 1993'.
  (b) CONFORMING AMENDMENT- Paragraph (2) of section 104 of the Tax Extension
  Act of 1991 is hereby repealed.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years ending after June 30, 1992.
SEC. 10. ENERGY INVESTMENT CREDIT FOR SOLAR AND GEOTHERMAL PROPERTY.
  (a) IN GENERAL- Subparagraph (B) of section 48(a)(2) (relating to energy
  percentage) is amended by striking `June 30, 1992' and inserting `December
  31, 1993'.
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  property placed in service after June 30, 1992.
SEC. 11. TAX CREDIT FOR ORPHAN DRUG CLINICAL TESTING EXPENSES.
  (a) IN GENERAL- Subsection (e) of section 28 (relating to clinical testing
  expenses for certain drugs for rare diseases or conditions) is amended by
  striking `June 30, 1992' and inserting `December 31, 1993'.
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  taxable years ending after June 30, 1992.
SEC. 12. HEALTH INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS.
  (a) IN GENERAL- Paragraph (6) of section 162(l) (relating to special rules
  for health insurance costs of self-employed individuals) is amended by
  striking `June 30, 1992' and inserting `December 31, 1993'.
  (b) CONFORMING AMENDMENT- Paragraph (2) of section 110 of the Tax Extension
  Act of 1991 is hereby repealed.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years ending after June 30, 1992.
SEC. 13. TEMPORARY REPEAL OF PREFERENCE FOR CONTRIBUTIONS OF APPRECIATED
PROPERTY.
  (a) TEMPORARY REPEAL-
  (1) IN GENERAL- Paragraph (6) of section 57(a) is amended by adding at
  the end the following new subparagraph:
  `(C) TERMINATION- This paragraph shall not apply to any contribution during
  1992 or 1993.'
  (2) CONFORMING AMENDMENT- Subparagraph (B) of section 57(a)(6) is amended
  by striking the last sentence.
  (3) EFFECTIVE DATE- The amendments made by this subsection shall apply to
  contributions after December 31, 1991.
  (b) ADVANCE DETERMINATION OF VALUE OF CHARITABLE GIFTS-
  (1) IN GENERAL- The Secretary of the Treasury or his delegate shall
  develop a procedure under which taxpayers may elect to seek an agreement
  with the Secretary as to the value of tangible personal property prior
  to the donation of such property to a qualifying charitable organization
  if the time limits for the donation and other conditions contained in the
  agreement are satisfied.
  (2) REPORT- Not later than December 31, 1992, the Secretary of the Treasury
  shall report to the Committee on Finance of the Senate and the Committee on
  Ways and Means of the House of Representatives on the development of the
  procedure referred to in paragraph (1), including the setting of possible
  threshold amounts for claimed value (and the payment of fees) by a taxpayer
  in order to seek agreement under the procedure, possible limitations on
  applying the procedure only to items with significant artistic or cultural
  value, recommendations for legislative action needed to implement the
  proposed procedure, and a projected timetable for its implementation.