S.Amdt. 2627
What it does: Adds SEC. __. CLARIFICATION OF WORKING CAPITAL FOR REASONABLY ANTICIPATED NEEDS OF A BUSINESS FOR PURPOSES OF ACCUMULATED EARNINGS TAX at the end of title IV
Sen. Lindsey Graham (R-SC)What it changes
1 change to S. 2020 · shown in the bill's text
Adds SEC. __. CLARIFICATION OF WORKING CAPITAL FOR REASONABLY ANTICIPATED NEEDS OF A BUSINESS FOR PURPOSES OF ACCUMULATED EARNINGS TAX at the end of title IV
Adds a sectionIn S. 2020 · Placed on Calendar Senate
(d) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued during the period beginning after December 31, 2006, and before January 1, 2008, and properly allocable to such period, with respect to mortgage insurance contracts issued after December 31, 2006.
Inserted: SEC. __. CLARIFICATION OF WORKING CAPITAL FOR REASONABLY ANTICIPATED NEEDS OF A BUSINESS FOR PURPOSES OF ACCUMULATED EARNINGS TAX.
Inserted: (a) In General.--Section 537(b) (relating to special rules) is amended by adding at the end the following new paragraph:
Inserted: "(6) Working capital.--The reasonably anticipated needs of a business for any taxable year shall include working capital for the business in an amount which is not less than the sum of the costs of goods, operating expenses, taxes, and interest expense which the business incurred during the preceding taxable year. Any amounts incurred as part of a plan a principal purposes of which is to increase the limitation under this subsection shall not be taken into account."
Inserted: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 3005, and before January 1, 2011.
Original wording
At the end of title IV, add the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 2627. Mr. GRAHAM submitted an amendment intended to be proposed by him to the bill S. 2020, to provide for reconciliation pursuant to section 202(b) of the concurrent resolution on the budget for fiscal year 2006; which was ordered to lie on the table; as follows:
At the end of title IV, add the following:
SEC. __. CLARIFICATION OF WORKING CAPITAL FOR REASONABLY ANTICIPATED NEEDS OF A BUSINESS FOR PURPOSES OF ACCUMULATED EARNINGS TAX.
(a) In General.--Section 537(b) (relating to special rules) is amended by adding at the end the following new paragraph:
“(6) Working capital.--The reasonably anticipated needs of a business for any taxable year shall include working capital for the business in an amount which is not less than the sum of the costs of goods, operating expenses, taxes, and interest expense which the business incurred during the preceding taxable year. Any amounts incurred as part of a plan a principal purposes of which is to increase the limitation under this subsection shall not be taken into account.”
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 3005, and before January 1, 2011.
Legislative Activity
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Senate amendment submitted
November 17, 2005