S.Amdt. 1629

SA 1629. Ms. MURKOWSKI submitted an amendment intended to be proposed
to amendment SA 1618 submitted by Mr. Hatch (for himself and Ms.
Murkowski) and intended to be proposed to the bill H.R. 1, to provide
for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018; which was ordered to lie
on the table; as follows:

At the end of part VIII of subtitle C of title I, insert
the following:

SEC. 13709. NONPROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN
REMOTE NATIVE VILLAGES. --

(a) In General.--For purposes of subchapter F of chapter 1
of the Internal Revenue Code of 1986, any activity
substantially related to participation and investment in
fisheries in the Bering Sea and Aleutian Islands Management
Area (as defined in section 205 of the American Fisheries Act
(16 U.S.C. 1851 note)) carried on by an entity identified in
section 305(i)(1)(D) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as
in effect on the date of enactment of this section) shall be
considered substantially related to the exercise or
performance of the purpose constituting the basis of such
entity's exemption under section 501(a) of such Code if the
conduct of such activity is in furtherance of 1 or more of
the purposes specified in section 305(i)(1)(A) of such Act.
For purposes of this paragraph, activities substantially
related to participation or investment in fisheries include
the harvesting, processing, transportation, sales, and
marketing of fish and fish products of the Bering Sea and
Aleutian Islands Management Area.
(b) Application to Certain Wholly Owned Subsidiaries.--If
the assets of a trade or business relating to an activity
described in subsection (a) of any subsidiary wholly owned by
an entity identified in section 305(i)(1)(D) of the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C.
1855(i)(1)(D)) are transferred to such entity (including in
liquidation of such subsidiary) not later than 18 months
after the date of the enactment of this Act--
(1) no gain or income resulting from such transfer shall be
recognized to either such subsidiary or such entity under
such Code, and
(2) all income derived from such subsidiary from such
transferred trade or business shall be exempt from taxation
under such Code.
(c) Effective Date.--This section shall be effective during
the existence of the western Alaska community development
quota program established by Section 305(i)(1) of the
Magnuson-Stevens Fishery Conservation and Management Act (16
U.S.C. 1855(i)(1)), as amended.
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