S.Amdt. 1427

SA 1427. Mr. BAUCUS (for himself and Mr. Grassley) submitted an amendment intended to be proposed to amendment SA 1424 submitted by Mr. Grassley (for himself, Mr. Baucus, Mr. Domenici, and Mr. Bingaman) and intended to be proposed to the bill S. 14, to enhance the energy security of the United States, and for other purposes; which was ordered to lie on the table; as follows:

On page 263, after line 18, insert:

SEC. ____. PAYMENT OF DIVIDENDS ON STOCK OF COOPERATIVES WITHOUT REDUCING PATRONAGE DIVIDENDS.

(a) In General.--Subsection (a) of section 1388 (relating to patronage dividend defined) is amended by adding at the end the following new sentence: “For purposes of paragraph (3), net earnings shall not be reduced by amounts paid during the year as dividends on capital stock or other proprietary capital interests of the organization to the extent that the articles of incorporation or bylaws of such organization or other contract with patrons provide that such dividends are in addition to amounts otherwise payable to patrons which are derived from business done with or for patrons during the taxable year.”.

(b) Effective Date.--The amendment made by this section shall apply to distributions in taxable years beginning after the date of the enactment of this Act.