Bill summaries are authored by CRS.

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Passed House amended (10/12/1998)

TABLE OF CONTENTS:

Title I: Extension and Modification of Certain Expiring

Provisions

Subtitle A: Tax Provisions

Subtitle B: Generalized System of Preferences

Title II: Other Provisions

Title III: Revenue Offsets

Title IV: Technical Corrections

Title I: Extension and Modification of Certain Expiring Provisions - Subtitle A: Tax Provisions - Amends the Internal Revenue Code (IRC) to temporarily extend the: (1) credit for increasing research activities; and (2) work opportunity credit.

(Sec. 103) Amends the Taxpayer Relief Act of 1997 to permanently extend income averaging for farmers.

(Sec. 104) Extends permanently the special rule for contributions of stock for which market quotations are readily available. Establishes rules for the public inspection of the returns of private foundations.

(Sec. 105) Revises provisions concerning the special rule for income derived in the active conduct of banking, financing, or similar businesses to provide, as general rule, that foreign personal holding company income shall not include qualified banking or financing income of an eligible controlled foreign corporation. Revises the definition of insurance income and provides that, as a general rule, foreign personal holding company income shall not include qualified insurance income of a qualifying insurance company.

(Sec. 106) Extends provisions which permit the disclosure of tax return information to the Secretary of Education with respect to taxpayers who have certain student loans.

Subtitle B: Generalized System of Preferences - Amends the Trade Act of 1974 to extend the Generalized System of Preferences through December 31, 1999. Provides for the retroactive application of certain liquidations and reliquidations.

Title II: Other Provisions - Requires a comprehensive study and report of recovery periods and depreciation methods under the accelerated cost recovery system.

(Sec. 202) Amends the Agricultural Market Transition Act to disregard specified payment options provided by the Emergency Farm Financial Relief Act.

(Sec. 203) Provides for the deduction of 100 percent of the costs of the health insurance of self-employed individuals by the year 2003 (currently, by the year 2007).

(Sec. 204) Increases the State private activity bond volume limit to $75 per resident or an aggregate limit of $225 million by calendar year 2007.

(Sec. 205) Increases by one percent, for 1999 and 2000, the estimated tax safe harbor for those individuals with incomes over $150,000.

(Sec. 206) Provides that any agreement with a State (or any modification thereof) entered into for coverage of State and local government employees under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act may, at the State's option, be modified at any time on or after January 1, 1999, and on or before January 1, 2000, to exclude service performed in the employ of a school, college, or university by a student enrolled and regularly attending classes at such institution. Makes any such modification irrevocable.

Title III: Revenue Offsets - Amends IRC provisions concerning the complete liquidations of subsidiaries to provide that if a corporation receives a distribution form a regulated investment company or a real estate investment trust which is considered as being in complete liquidation of such company or trust, then such corporation shall treat as a dividend from such trust or company an amount equal to the deduction for dividends paid allowable to such company or trust by reason of such distribution.

(Sec. 302) Adds any vaccine against rotavirus gastroenteritis to the list of taxable vaccines.

(Sec. 303) Modifies the definitions of "mathematical or clerical error" and "specified liability loss."

Title IV: Technical Corrections - Revises provisions of the IRC, the Internal Revenue Service Restructuring and Reform Act of 1998, the Taxpayer Relief Act of 1997, the Tax Reform Act of 1984, and the Transportation Equity Act for the 21st Century.