Summary: H.R.2534 — 104th Congress (1995-1996)All Information (Except Text)

There is one summary for H.R.2534. Bill summaries are authored by CRS.

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Introduced in House (10/25/1995)

TABLE OF CONTENTS:

Title I: Tax Subsidy Reform

Title II: Agricultural and Grazing Subsidies

Title III: Aerospace and High-Technology Industry Subsidies

Title IV: National Parks Concession Reform

Title V: Miscellaneous Industry Subsidies

Title VI: Effective Dates

Corporate Responsibility Act of 1995 - Title I: Tax Subsidy Reform - Amends the Internal Revenue Code to terminate the foreign tax credit. Allows the deduction of foreign taxes for which the credit is made unallowable by this Act.

(Sec. 103) Directs the Secretary of the Treasury to prescribe regulations regarding allocation of income and deductions which use a formulaic approach to clearly reflect income of multinational corporations.

(Sec.104) Treats the gain or loss of a nonresident alien individual or foreign corporation that is a ten-percent shareholder in a domestic corporation upon disposition of such a corporation's stock as if the taxpayer were engaged during the taxable year in a trade or business within the United States and as if such gain or loss were attributable to a permanent U.S. trade or business establishment. Treats such gain or loss as from sources within the United States, notwithstanding source rules for personal property sales. Imposes a 26-percent minimum tax on nonresident alien individuals. Treats as stock, for purposes of these provisions, options or other rights to acquire a domestic corporation's stock, conversion features of debt instruments, and other interests in a domestic corporation other than those solely as a creditor. Treats as a dividend attributable to a domestic corporation's stock any gain which would be subject to tax but for a treaty and which results from a distribution in liquidation or redemption. Provides for the withholding of tax on such dispositions. Penalizes, and treats as tax evasion, the failure to pay the tax established by this Act where amounts were not deducted and withheld.

Excepts such gain from the branch profits tax imposed on foreign corporations. Requires notice to the Secretary upon distributions by a U.S. person to a foreign person in redemption of stock or complete liquidation of a subsidiary.

(Sec. 105) Removes the exemption of ten-percent shareholders from the tax on interest of nonresident alien individuals received from portfolio debt investments. Redefines portfolio interest as only interest paid on obligations issued by governmental entities.

(Sec. 106) Terminates, effective with taxable years beginning January 1, 1996, the exclusion of foreign earned income and the housing cost amounts of U.S. citizens or residents living abroad.

(Sec. 107) Terminates, effective with taxable years beginning January 1, 1996, the exclusion from gross income of exempt foreign trade income of foreign sales corporations.

(Sec. 108) Revises rules for the determination of the income of controlled foreign corporations. Repeals provisions which reduce the controlled foreign corporation income of export trade corporations.

(Sec. 109) Allows the Secretary to extend for an additional three years the limitation period for assessment of a foreign-related deficiency if the deficiency cannot be accurately assessed before the expiration of the usual three-year period because of delay or other taxpayer actions which prevented timely assessment of the deficiency. Defines a foreign-related deficiency as one: (1) of a 25-percent foreign-owned domestic corporation to the extent the deficiency is attributable to a transaction with a related party who is a foreign person; and (2) of a foreign corporation with respect to the tax on income for foreign corporations connected with U.S. business or the branch profits tax.

Title II: Agricultural and Grazing Subsidies - Amends the Food Security Act of 1985 to decrease the $250,000 payment limitation under the farm commodity programs to $50,000.

(Sec. 202) Repeals Title III (export enhancement program) of the Agricultural Trade Act of 1978.

(Sec. 203) Eliminates tobacco price support and production adjustment programs.

(Sec. 204) Amends the Agricultural Trade Act of 1978 to repeal provisions for the market promotion program.

(Sec. 205) Authorizes the Secretary of Agriculture and the Secretary of the Interior to establish, beginning with the grazing season which commences on March 1, 1996, an annual domestic livestock grazing fee equal to fair market value with respect to certain National Forest lands where domestic livestock grazing is permitted under applicable law.

Title III: Aerospace and High-Technology Industry Subsidies - Terminates Federal assistance for Sematech.

(Sec. 302) Terminates Federal assistance under defense technology reinvestment programs.

(Sec. 303) Terminates funding for the space station program. Title IV: National Parks Concession Reform - Repeals the Concessions Policy Act of 1965.

(Sec. 405) Provides for a competitive selection process with respect to the provision of public accommodations, services, and facilities within the National Park System. Directs the Secretary to promulgate appropriate regulations establishing such process.

(Sec. 406) Provides for the setting of franchise fees.

(Sec. 407) Limits a concessions contract entered into pursuant to this Act for a term not to exceed ten years.

(Sec. 408) Prohibits the transfer of a concessions contract without prior notification to, and approval of, the Secretary.

(Sec. 409) Sets forth provisions concerning: (1) structures and facilities within a park; (2) recordkeeping; and (3) lease requirements.

Title V: Miscellaneous Industry Subsidies - Requires sales of petroleum from the naval petroleum reserves to be made to the highest bidder at not less than the prevailing market price.

(Sec. 502) Terminates the Tokamak Physics Experiment program of the Department of Energy.

(Sec. 503) Amends the Intermodal Surface Transportation Efficiency Act of 1991 by eliminating funding for highway demonstration projects.

(Sec. 504) Amends the Indian Gaming Regulatory Act by increasing from $1.5 million to $3 million the limit on amounts collected as fees from gaming activities to fund the National Indian Gaming Commission.

(Sec. 505 Reduces from $75 billion to $37.5 billion the aggregate loan, guarantee, and insurance authority of the Export-Import Bank of the United States. Requires the Bank to charge and collect a fee (based on credit risk and not less than a fee that would be charged for a similar arms-length transaction in the private sector) for the provision of a guarantee, insurance, extension of credit, or for its participation in an extension of credit.

(Sec. 506) Abolishes the Overseas Private Investment Corporation and transfers its functions relating to obligations effective on October 1, 1995, to the Department of State. Terminates all such remaining obligations when they expire.

(Sec. 507) Terminates funding of nuclear weapons activities of the Department of Energy described under specified headings in Title III of the Energy and Water Development Appropriations Act of 1995.

(Sec. 508) Terminates funding for carrying out fossil and nuclear energy research and development for any fiscal year after FY 1997.

(Sec. 509) Amends the Arms Export Control Act to provide for recoupment of nonrecurring costs for certain sales of major defense equipment. Excludes from recoupment the sale of major defense equipment that is at least 90 percent paid for from funds transferred under the Foreign Assistance Act of 1961 or from funds made available on a grant or other nonrepayable basis under such Act. Amends the Arms Export Control Act to eliminate the authority to reduce or waive charges for costs in foreign military sales for NATO member countries and certain other countries.

Title VI: Effective Dates - Sets forth effective date provisions.