[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 878 Reported in House (RH)]
Union Calendar No. 16
108th CONGRESS
1st Session
H. R. 878
[Report No. 108-23]
To amend the Internal Revenue Code of 1986 to provide a special rule
for members of the uniformed services and Foreign Service in
determining the exclusion of gain from the sale of a principal
residence and to restore the tax exempt status of death gratuity
payments to members of the uniformed services, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2003
Mr. Thomas (for himself, Mr. Houghton, Mr. Camp, Mr. Lewis of Kentucky,
Mr. Hayworth, Mr. Sam Johnson of Texas, Mr. Herger, Mr. Ramstad, Mr.
Cantor, Mr. English, and Mr. Crane) introduced the following bill;
which was referred to the Committee on Ways and Means
March 5, 2003
Additional sponsors: Mr. Portman, Mr. McInnis, Mr. McCrery, Mr. Jones
of North Carolina, Mr. Cole, Mr. Simmons, Mr. Wilson of South Carolina,
Mr. Reynolds, Mr. Crenshaw, Mr. Hefley, Mr. Bradley of New Hampshire,
Mr. Gillmor, Mr. Royce, Mr. McCotter, and Mr. Duncan
March 5, 2003
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
February 25, 2003]
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a special rule
for members of the uniformed services and Foreign Service in
determining the exclusion of gain from the sale of a principal
residence and to restore the tax exempt status of death gratuity
payments to members of the uniformed services, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Armed Forces Tax
Fairness Act of 2003''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; references; table of contents.
TITLE I--ARMED FORCES
Sec. 101. Special rule for members of uniformed services and foreign
service and peace corps volunteers and
employees in determining exclusion of gain
from sale of principal residence.
Sec. 102. Restoration of full exclusion from gross income of death
gratuity payment.
Sec. 103. Exclusion for amounts received under Department of Defense
homeowners assistance program.
Sec. 104. Expansion of combat zone filing rules to contingency
operations.
Sec. 105. Modification of membership requirement for exemption from tax
for certain veterans' organizations.
Sec. 106. Clarification of the treatment of certain dependent care
assistance programs.
Sec. 107. Clarification relating to exception from additional tax on
certain distributions from qualified
tuition programs, etc., on account of
attendance at military academy.
Sec. 108. Suspension of tax-exempt status of terrorist organizations.
Sec. 109. Above-the-line deduction for overnight travel expenses of
national guard and reserve members.
TITLE II--MISCELLANEOUS PROVISIONS
Sec. 201. Tax relief and assistance for families of astronauts who lose
their lives on a space mission.
Sec. 202. Income averaging for farmers not to increase alternative
minimum tax.
Sec. 203. Capital gain treatment under section 631(b) to apply to
outright sales by landowners.
Sec. 204. Special rules for livestock sold on account of weather-
related conditions.
Sec. 205. Simplification of excise tax imposed on bows and arrows.
Sec. 206. Repeal of excise tax on fishing tackle boxes.
Sec. 207. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 208. Expansion of human clinical trials qualifying for orphan drug
credit.
Sec. 209. Health insurance costs of eligible individuals.
Sec. 210. Treatment under at-risk rules of publicly traded nonrecourse
debt.
Sec. 211. Exclusion of income derived from certain wagers on horse
races from gross income of nonresident
alien individuals.
Sec. 212. Payment of dividends on stock of cooperatives without
reducing patronage dividends.
Sec. 213. Pilot project for forest conservation activities.
Sec. 214. Protection of social security.
TITLE III--REVENUE PROVISIONS
Sec. 301. Individual expatriation to avoid tax.
Sec. 302. Vaccine tax to apply to hepatitis A vaccine.
TITLE I--ARMED FORCES
SEC. 101. SPECIAL RULE FOR MEMBERS OF UNIFORMED SERVICES AND FOREIGN
SERVICE AND PEACE CORPS VOLUNTEERS AND EMPLOYEES IN
DETERMINING EXCLUSION OF GAIN FROM SALE OF PRINCIPAL
RESIDENCE.
(a) In General.--Subsection (d) of section 121 (relating to
exclusion of gain from sale of principal residence) is amended by
adding at the end the following new paragraph:
``(10) Members of uniformed services and foreign service
and peace corps volunteers and employees.--
``(A) In general.--At the election of an individual
with respect to a property, the running of the 5-year
period referred to in subsections (a) and (c)(1)(B) and
paragraph (7) of this subsection with respect to such
property shall be suspended during any period that such
individual or such individual's spouse is serving on
qualified official extended duty as a member of the
uniformed services or of the Foreign Service or as a
Peace Corps volunteer or an employee of the Peace
Corps.
``(B) Maximum period of suspension.--Such 5-year
period shall not be extended more than 5 years by
reason of subparagraph (A).
``(C) Qualified official extended duty.--For
purposes of this paragraph--
``(i) In general.--The term `qualified
official extended duty' means any extended duty
while serving at a duty station which is at
least 150 miles from such property or while
residing under Government orders in Government
quarters.
``(ii) Uniformed services.--The term
`uniformed services' has the meaning given such
term by section 101(a)(5) of title 10, United
States Code, as in effect on the date of the enactment of this
paragraph.
``(iii) Foreign service.--The term `member
of the Foreign Service' has the meaning given
the term `member of the Service' by paragraph
(1), (2), (3), (4), or (5) of section 103 of
the Foreign Service Act of 1980, as in effect
on the date of the enactment of this paragraph.
``(iv) Extended duty.--The term `extended
duty' means any period of active duty pursuant
to a call or order to such duty for a period in
excess of 180 days or for an indefinite period.
``(v) Rules relating to the peace corps.--
``(I) Extended duty.--In the case
of a Peace Corps volunteer, the term
`extended duty' means any period of
active duty assigned to a Peace Corps
volunteer under the Peace Corps Act for
a period in excess of 180 days or for
an indefinite period.
``(II) Peace corps volunteer.--The
term `Peace Corps volunteer' means an
individual enrolled as a volunteer or
volunteer leader under the Peace Corps
Act.
``(III) Employee of the peace
corps.--The term `employee of the Peace
Corps' means a person employed in the
Peace Corps under section 7 of the
Peace Corps Act.
``(IV) References to peace corps
act.--References in this clause to the
Peace Corps Act mean references to the
Peace Corps Act (22 U.S.C. 2501 et
seq.) as in effect on the date of the
enactment of this clause.
``(D) Special rules relating to election.--
``(i) Election limited to 1 property at a
time.--An election under subparagraph (A) with
respect to any property may not be made if such
an election is in effect with respect to any
other property.
``(ii) Revocation of election.--An election
under subparagraph (A) may be revoked at any
time.''.
(b) Effective Date; Special Rule.--
(1) Effective date.--The amendment made by this section
shall take effect as if included in the amendments made by
section 312 of the Taxpayer Relief Act of 1997.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendment made by this
section is prevented at any time before the close of the 1-year
period beginning on the date of the enactment of this Act by
the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 102. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF DEATH
GRATUITY PAYMENT.
(a) In General.--Paragraph (3) of section 134(b) (relating to
qualified military benefit) is amended by adding at the end the
following new subparagraph:
``(C) Exception for death gratuity adjustments made
by law.--Subparagraph (A) shall not apply to any
adjustment to the amount of death gratuity payable
under chapter 75 of title 10, United States Code, which
is pursuant to a provision of law enacted before
December 31, 1991.''.
(b) Conforming Amendment.--Section 134(b)(3)(A) is amended by
striking ``subparagraph (B)'' and inserting ``subparagraphs (B) and
(C)''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to deaths occurring after September 10, 2001.
SEC. 103. EXCLUSION FOR AMOUNTS RECEIVED UNDER DEPARTMENT OF DEFENSE
HOMEOWNERS ASSISTANCE PROGRAM.
(a) In General.--Subsection (a) of section 132 (relating to certain
fringe benefits) is amended by striking ``or'' at the end of paragraph
(6), by striking the period at the end of paragraph (7) and inserting
``, or'' and by adding at the end the following new paragraph:
``(8) qualified military base realignment and closure
fringe.''.
(b) Qualified Military Base Realignment and Closure Fringe.--
Section 132 is amended by redesignating subsection (n) as subsection
(o) and by inserting after subsection (m) the following new subsection:
``(n) Qualified Military Base Realignment and Closure Fringe.--
``(1) In general.--For purposes of this section, the term
`qualified military base realignment and closure fringe' means
1 or more payments under the authority of section 1013 of the
Demonstration Cities and Metropolitan Development Act of 1966
(42 U.S.C. 3374) (as in effect on the date of the enactment of
this subsection).
``(2) Limitation.--With respect to any property, such term
shall not include any payment referred to in paragraph (1) to
the extent that the sum of all such payments related to such
property exceeds the amount described in clause (1) of
subsection (c) of such section (as in effect on such date).''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made after the date of the enactment of this Act.
SEC. 104. EXPANSION OF COMBAT ZONE FILING RULES TO CONTINGENCY
OPERATIONS.
(a) In General.--Subsection (a) of section 7508 (relating to time
for performing certain acts postponed by reason of service in combat
zone) is amended--
(1) by inserting ``or when deployed outside the United
States away from the individual's permanent duty station while
participating in an operation designated by the Secretary of
Defense as a contingency operation (as defined in section
101(a)(13) of title 10, United States Code) or which became
such a contingency operation by operation of law'' after
``section 112'',
(2) by inserting in the first sentence ``or at any time
during the period of such contingency operation'' after ``for
purposes of such section'',
(3) by inserting ``or operation'' after ``such an area'',
and
(4) by inserting ``or operation'' after ``such area''.
(b) Conforming Amendments.--
(1) Section 7508(d) is amended by inserting ``or
contingency operation'' after ``area''.
(2) The heading for section 7508 is amended by inserting
``or contingency operation'' after ``combat zone''.
(3) The item relating to section 7508 in the table of
sections for chapter 77 is amended by inserting ``or
contingency operation'' after ``combat zone''.
(c) Effective Date.--The amendments made by this section shall
apply to any period for performing an act which has not expired before
the date of the enactment of this Act.
SEC. 105. MODIFICATION OF MEMBERSHIP REQUIREMENT FOR EXEMPTION FROM TAX
FOR CERTAIN VETERANS' ORGANIZATIONS.
(a) In General.--Subparagraph (B) of section 501(c)(19) (relating
to list of exempt organizations) is amended by striking ``or widowers''
and inserting ``, widowers, ancestors, or lineal descendants''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 106. CLARIFICATION OF THE TREATMENT OF CERTAIN DEPENDENT CARE
ASSISTANCE PROGRAMS.
(a) In General.--Subsection (b) of section 134 (defining qualified
military benefit) is amended by adding at the end the following new
paragraph:
``(4) Clarification of certain benefits.--For purposes of
paragraph (1), such term includes any dependent care assistance
program (as in effect on the date of the enactment of this
paragraph) for any individual described in paragraph (1)(A).''.
(b) Conforming Amendments.--
(1) Section 134(b)(3)(A) (as amended by section 102) is
further amended by inserting ``and paragraph (4)'' after
``subparagraphs (B) and (C)''.
(2) Section 3121(a)(18) is amended by striking ``or 129''
and inserting ``, 129, or 134(b)(4)''.
(3) Section 3306(b)(13) is amended by striking ``or 129''
and inserting ``, 129, or 134(b)(4)''.
(4) Section 3401(a)(18) is amended by striking ``or 129''
and inserting ``, 129, or 134(b)(4)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
SEC. 107. CLARIFICATION RELATING TO EXCEPTION FROM ADDITIONAL TAX ON
CERTAIN DISTRIBUTIONS FROM QUALIFIED TUITION PROGRAMS,
ETC., ON ACCOUNT OF ATTENDANCE AT MILITARY ACADEMY.
(a) In General.--Subparagraph (B) of section 530(d)(4) (relating to
exceptions from additional tax for distributions not used for
educational purposes) is amended by striking ``or'' at the end of
clause (iii), by redesignating clause (iv) as clause (v), and by
inserting after clause (iii) the following new clause:
``(iv) made on account of the attendance of
the designated beneficiary at the United States
Military Academy, the United States Naval
Academy, the United States Air Force Academy,
the United States Coast Guard Academy, or the
United States Merchant Marine Academy, to the
extent that the amount of the payment or distribution does not exceed
the costs of advanced education (as defined by section 2005(e)(3) of
title 10, United States Code, as in effect on the date of the enactment
of this section) attributable to such attendance, or''.
(b) Effective Date.--The amendment made by this section shall take
effect for taxable years beginning after December 31, 2002.
SEC. 108. SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST ORGANIZATIONS.
(a) In General.--Section 501 (relating to exemption from tax on
corporations, certain trusts, etc.) is amended by redesignating
subsection (p) as subsection (q) and by inserting after subsection (o)
the following new subsection:
``(p) Suspension of Tax-Exempt Status of Terrorist Organizations.--
``(1) In general.--The exemption from tax under subsection
(a) with respect to any organization described in paragraph
(2), and the eligibility of any organization described in
paragraph (2) to apply for recognition of exemption under
subsection (a), shall be suspended during the period described
in paragraph (3).
``(2) Terrorist organizations.--An organization is
described in this paragraph if such organization is designated
or otherwise individually identified--
``(A) under section 212(a)(3)(B)(vi)(II) or 219 of
the Immigration and Nationality Act as a terrorist
organization or foreign terrorist organization,
``(B) in or pursuant to an Executive order which is
related to terrorism and issued under the authority of
the International Emergency Economic Powers Act or
section 5 of the United Nations Participation Act of
1945 for the purpose of imposing on such organization
an economic or other sanction, or
``(C) in or pursuant to an Executive order issued
under the authority of any Federal law if--
``(i) the organization is designated or
otherwise individually identified in or
pursuant to such Executive order as supporting
or engaging in terrorist activity (as defined
in section 212(a)(3)(B) of the Immigration and
Nationality Act) or supporting terrorism (as
defined in section 140(d)(2) of the Foreign
Relations Authorization Act, Fiscal Years 1988
and 1989); and
``(ii) such Executive order refers to this
subsection.
``(3) Period of suspension.--With respect to any
organization described in paragraph (2), the period of
suspension--
``(A) begins on the later of--
``(i) the date of the first publication of
a designation or identification described in
paragraph (2) with respect to such
organization, or
``(ii) the date of the enactment of this
subsection, and
``(B) ends on the first date that all designations
and identifications described in paragraph (2) with
respect to such organization are rescinded pursuant to
the law or Executive order under which such designation
or identification was made.
``(4) Denial of deduction.--No deduction shall be allowed
under section 170, 545(b)(2), 556(b)(2), 642(c), 2055,
2106(a)(2), or 2522 for any contribution to an organization
described in paragraph (2) during the period described in
paragraph (3).
``(5) Denial of administrative or judicial challenge of
suspension or denial of deduction.--Notwithstanding section
7428 or any other provision of law, no organization or other
person may challenge a suspension under paragraph (1), a
designation or identification described in paragraph (2), the
period of suspension described in paragraph (3), or a denial of
a deduction under paragraph (4) in any administrative or
judicial proceeding relating to the Federal tax liability of
such organization or other person.
``(6) Erroneous designation.--
``(A) In general.--If--
``(i) the tax exemption of any organization
described in paragraph (2) is suspended under
paragraph (1),
``(ii) each designation and identification
described in paragraph (2) which has been made
with respect to such organization is determined
to be erroneous pursuant to the law or
Executive order under which such designation or
identification was made, and
``(iii) the erroneous designations and
identifications result in an overpayment of
income tax for any taxable year by such
organization,
credit or refund (with interest) with respect to such
overpayment shall be made.
``(B) Waiver of limitations.--If the credit or
refund of any overpayment of tax described in
subparagraph (A)(iii) is prevented at any time by the
operation of any law or rule of law (including res
judicata), such credit or refund may nevertheless be
allowed or made if the claim therefor is filed before
the close of the 1-year period beginning on the date of
the last determination described in subparagraph
(A)(ii).
``(7) Notice of suspensions.--If the tax exemption of any
organization is suspended under this subsection, the Internal
Revenue Service shall update the listings of tax-exempt
organizations and shall publish appropriate notice to taxpayers
of such suspension and of the fact that contributions to such
organization are not deductible during the period of such
suspension.''.
(b) Effective Date.--The amendments made by this section shall
apply to designations made before, on, or after the date of the
enactment of this Act.
SEC. 109. ABOVE-THE-LINE DEDUCTION FOR OVERNIGHT TRAVEL EXPENSES OF
NATIONAL GUARD AND RESERVE MEMBERS.
(a) Deduction Allowed.--Section 162 (relating to certain trade or
business expenses) is amended by redesignating subsection (p) as
subsection (q) and inserting after subsection (o) the following new
subsection:
``(p) Treatment of Expenses of Members of Reserve Component of
Armed Forces of the United States.--For purposes of subsection (a)(2),
in the case of an individual who performs services as a member of a
reserve component of the Armed Forces of the United States at any time
during the taxable year, such individual shall be deemed to be away
from home in the pursuit of a trade or business for any period during
which such individual is away from home in connection with such
services.''.
(b) Deduction Allowed Whether or Not Taxpayer Elects To Itemize.--
Paragraph (2) of section 62(a) (relating to certain trade and business
deductions of employees) is amended by adding at the end the following
new subparagraph:
``(E) Certain expenses of members of reserve
components of the armed forces of the united states.--
The deductions allowed by section 162 which consist of
expenses, not in excess of $500, paid or incurred by
the taxpayer in connection with the performance of
services by such taxpayer as a member of a reserve
component of the Armed Forces of the United States for
any period during which such individual is more than
100 miles away from home in connection with such
services.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2002.
TITLE II--MISCELLANEOUS PROVISIONS
SEC. 201. TAX RELIEF AND ASSISTANCE FOR FAMILIES OF ASTRONAUTS WHO LOSE
THEIR LIVES ON A SPACE MISSION.
(a) Income Tax Relief.--
(1) In general.--Subsection (d) of section 692 (relating to
income taxes of members of Armed Forces and victims of certain
terrorist attacks on death) is amended by adding at the end the
following new paragraph:
``(5) Relief with respect to astronauts.--The provisions of
this subsection shall apply to any astronaut whose death occurs
while on a space mission, except that paragraph (3)(B) shall be
applied by using the date of the death of the astronaut rather
than September 11, 2001.''.
(2) Conforming amendments.--
(A) Section 5(b)(1) is amended by inserting ``,
astronauts,'' after ``Forces''.
(B) Section 6013(f)(2)(B) is amended by inserting
``, astronauts,'' after ``Forces''.
(3) Clerical amendments.--
(A) The heading of section 692 is amended by
inserting ``, astronauts,'' after ``forces''.
(B) The item relating to section 692 in the table
of sections for part II of subchapter J of chapter 1 is
amended by inserting ``, astronauts,'' after
``Forces''.
(4) Effective date.--The amendments made by this subsection
shall apply with respect to any astronaut whose death occurs
after December 31, 2002.
(b) Death Benefit Relief.--
(1) In general.--Subsection (i) of section 101 (relating to
certain death benefits) is amended by adding at the end the
following new paragraph:
``(4) Relief with respect to astronauts.--The provisions of
this subsection shall apply to any astronaut whose death occurs
while on a space mission.''.
(2) Clerical amendment.--The heading for subsection (i) of
section 101 is amended by inserting ``or Astronauts'' after
``Victims''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid after December 31, 2002, with
respect to deaths occurring after such date.
(c) Estate Tax Relief.--
(1) In general.--Subsection (b) of section 2201 (defining
qualified decedent) is amended by striking ``and'' at the end
of paragraph (1)(B), by striking the period at the end of
paragraph (2) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(3) any astronaut whose death occurs while on a space
mission.''.
(2) Clerical amendments.--
(A) The heading of section 2201 is amended by
inserting ``, deaths of astronauts,'' after ``forces''.
(B) The item relating to section 2201 in the table
of sections for subchapter C of chapter 11 is amended
by inserting ``, deaths of astronauts,'' after
``Forces''.
(3) Effective date.--The amendments made by this subsection
shall apply to estates of decedents dying after December 31,
2002.
SEC. 202. INCOME AVERAGING FOR FARMERS NOT TO INCREASE ALTERNATIVE
MINIMUM TAX.
(a) In General.--Subsection (c) of section 55 (defining regular
tax) is amended by redesignating paragraph (2) as paragraph (3) and by
inserting after paragraph (1) the following new paragraph:
``(2) Coordination with income averaging for farmers.--
Solely for purposes of this section, section 1301 (relating to
averaging of farm income) shall not apply in computing the
regular tax.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2002.
SEC. 203. CAPITAL GAIN TREATMENT UNDER SECTION 631(B) TO APPLY TO
OUTRIGHT SALES BY LANDOWNERS.
(a) In General.--The first sentence of section 631(b) (relating to
disposal of timber with a retained economic interest) is amended by
striking ``retains an economic interest in such timber'' and inserting
``either retains an economic interest in such timber or makes an
outright sale of such timber''.
(b) Conforming Amendments.--
(1) The third sentence of section 631(b) is amended by
striking ``The date of disposal'' and inserting ``In the case
of disposal of timber with a retained economic interest, the
date of disposal''.
(2) The heading for section 631(b) is amended by striking
``With a Retained Economic Interest''.
(c) Effective Date.--The amendments made by this section shall
apply to sales after the date of the enactment of this Act.
SEC. 204. SPECIAL RULES FOR LIVESTOCK SOLD ON ACCOUNT OF WEATHER-
RELATED CONDITIONS.
(a) Rules for Replacement of Involuntarily Converted Livestock.--
Subsection (e) of section 1033 (relating to involuntary conversions) is
amended--
(1) by striking ``Conditions.--For purposes'' and inserting
``Conditions.--
``(1) In general.--For purposes'', and
(2) by adding at the end the following new paragraph:
``(2) Extension of replacement period.--
``(A) In general.--In the case of drought, flood,
or other weather-related conditions described in
paragraph (1) which result in the area being designated
as eligible for assistance by the Federal Government,
subsection (a)(2)(B) shall be applied with respect to
any converted property by substituting `4 years' for `2
years'.
``(B) Further extension by secretary.--The
Secretary may extend on a regional basis the period for
replacement under this section (after the application
of subparagraph (A)) for such additional time as the
Secretary determines appropriate if the weather-related
conditions which resulted in such application continue
for more than 3 years.''.
(b) Income Inclusion Rules.--Subsection (e) of section 451
(relating to special rule for proceeds from livestock sold on account
of drought, flood, or other weather-related conditions) is amended by
adding at the end the following new paragraph:
``(3) Special election rules.--If section 1033(e)(2)
applies to a sale or exchange of livestock described in
paragraph (1), the election under paragraph (1) shall be deemed
valid if made during the replacement period described in such
section.''.
(c) Effective Date.--The amendments made by this section shall
apply to any taxable year with respect to which the due date (without
regard to extensions) for the return is after December 31, 2002.
SEC. 205. SIMPLIFICATION OF EXCISE TAX IMPOSED ON BOWS AND ARROWS.
(a) Bows.--Paragraph (1) of section 4161(b) (relating to bows) is
amended to read as follows:
``(1) Bows.--
``(A) In general.--There is hereby imposed on the
sale by the manufacturer, producer, or importer of any
bow which has a draw weight of 30 pounds or more, a tax
equal to 11 percent of the price for which so sold.
``(B) Archery equipment.--There is hereby imposed
on the sale by the manufacturer, producer, or
importer--
``(i) of any part or accessory suitable for
inclusion in or attachment to a bow described
in subparagraph (A), and
``(ii) of any quiver or broadhead suitable
for use with an arrow described in paragraph
(3),
a tax equal to 11 percent of the price for which so
sold.''.
(b) Arrows.--Subsection (b) of section 4161 (relating to bows and
arrows, etc.) is amended by redesignating paragraph (3) as paragraph
(4) and inserting after paragraph (2) the following:
``(3) Arrows.--
``(A) In general.--There is hereby imposed on the
sale by the manufacturer, producer, or importer of any
arrow, a tax equal to 12 percent of the price for which
so sold.
``(B) Exception.--The tax imposed by subparagraph
(A) on an arrow shall not apply if the arrow contains
an arrow shaft subject to the tax imposed by paragraph
(2).
``(C) Arrow.--For purposes of this paragraph, the
term `arrow' means any shaft described in paragraph (2)
to which additional components are attached.''.
(c) Conforming Amendment.--The heading of section 4161(b)(2) is
amended by striking ``Arrows.--'' and inserting ``Arrow components.--
''.
(d) Effective Date.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or importer after
the 90th day after the date of the enactment of this Act.
SEC. 206. REPEAL OF EXCISE TAX ON FISHING TACKLE BOXES.
(a) Repeal.--Paragraph (6) of section 4162(a) (defining sport
fishing equipment) is amended by striking subparagraph (C) and by
redesignating subparagraphs (D) through (J) as subparagraphs (C)
through (I), respectively.
(b) Effective Date.--The amendment made by this section shall take
effect 30 days after the date of the enactment of this Act.
SEC. 207. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES OF DIESEL
FUEL.
(a) In General.--Clause (iii) of section 4081(a)(2)(A) is amended
by inserting before the period ``(19.7 cents per gallon in the case of
a diesel-water fuel emulsion at least 14 percent of which is water)''.
(b) Refunds for Tax-Paid Purchases.--
(1) In general.--Section 6427 (relating to fuels not used
for taxable purchases) is amended by redesignating subsections
(m) through (p) as subsections (n) through (q), respectively,
and by inserting after subsection (l) the following new
subsection:
``(m) Diesel Fuel Used To Produce Emulsion.--
``(1) In general.--Except as provided in subsection (k), if
any diesel fuel on which tax was imposed by section 4081 at the
regular tax rate is used by any person in producing an emulsion
described in section 4081(a)(2)(A) which is sold or used in
such person's trade or business, the Secretary shall pay
(without interest) to such person an amount equal to the excess
of the regular tax rate over the incentive tax rate with
respect to such fuel.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Regular tax rate.--The term `regular tax
rate' means the aggregate rate of tax imposed by
section 4081 determined without regard to the
parenthetical in section 4081(a)(2)(A).
``(B) Incentive tax rate.--The term `incentive tax
rate' means the aggregate rate of tax imposed by
section 4081 determined with regard to the
parenthetical in section 4081(a)(2)(A).''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2003.
SEC. 208. EXPANSION OF HUMAN CLINICAL TRIALS QUALIFYING FOR ORPHAN DRUG
CREDIT.
(a) In General.--Paragraph (2) of section 45C(b) (relating to
qualified clinical testing expenses) is amended by adding at the end
the following new subparagraph:
``(C) Treatment of certain expenses incurred before
designation.--For purposes of subparagraph (A)(ii)(I),
if a drug is designated under section 526 of the
Federal Food, Drug, and Cosmetic Act not later than the
due date (including extensions) for filing the return
of tax under this subtitle for the taxable year in
which the application for such designation of such drug
was filed, such drug shall be treated as having been
designated on the date that such application was
filed.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to expenses incurred after the date of the enactment of this Act.
SEC. 209. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
(a) Consumer Options.--Paragraph (2) of section 35(e) is amended by
inserting at the end the following new subparagraph:
``(C) Waiver by eligible individuals.--With respect
to any month which ends before January 1, 2005, this
paragraph shall not apply with respect to any eligible
individual and such individual's qualifying family
members if such eligible individual elects to waive the
application of this paragraph with respect to such
month.''.
(b) Effective Date.--The amendment made by this section shall apply
to months beginning after the date of the enactment of this Act.
SEC. 210. TREATMENT UNDER AT-RISK RULES OF PUBLICLY TRADED NONRECOURSE
DEBT.
(a) In General.--Subparagraph (A) of section 465(b)(6) (relating to
qualified nonrecourse financing treated as amount at risk) is amended
by striking ``share of'' and all that follows and inserting ``share
of--
``(i) any qualified nonrecourse financing
which is secured by real property used in such
activity, and
``(ii) any other financing which--
``(I) would (but for subparagraph
(B)(ii)) be qualified nonrecourse
financing,
``(II) is qualified publicly traded
debt, and
``(III) is not borrowed by the
taxpayer from a person described in
subclause (I), (II), or (III) of
section 49(a)(1)(D)(iv).''.
(b) Qualified Publicly Traded Debt.--Paragraph (6) of section
465(b) is amended by adding at the end the following new subparagraph:
``(F) Qualified publicly traded debt.--For purposes
of subparagraph (A), the term `qualified publicly
traded debt' means any debt instrument which is readily
tradable on an established securities market. Such term
shall not include any debt instrument which has a yield
to maturity which equals or exceeds the limitation in
section 163(i)(1)(B).''.
(c) Effective Date.--The amendments made by this section shall
apply to debt instruments issued after the date of the enactment of
this Act.
SEC. 211. EXCLUSION OF INCOME DERIVED FROM CERTAIN WAGERS ON HORSE
RACES FROM GROSS INCOME OF NONRESIDENT ALIEN INDIVIDUALS.
(a) In General.--Subsection (b) of section 872 (relating to
exclusions) is amended by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively, and inserting after
paragraph (4) the following new paragraph:
``(5) Income derived from wagering transactions in certain
parimutuel pools.--Gross income derived by a nonresident alien
individual from a legal wagering transaction initiated outside
the United States in a parimutuel pool with respect to a live
horse race in the United States.''.
(b) Conforming Amendment.--Section 883(a)(4) is amended by striking
``(5), (6), and (7)'' and inserting ``(6), (7), and (8)''.
(c) Effective Date.--The amendments made by this section shall
apply to proceeds from wagering transactions after September 30, 2003.
SEC. 212. 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: ``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.
SEC. 213. PILOT PROJECT FOR FOREST CONSERVATION ACTIVITIES.
(a) Tax-Exempt Bond Financing.--
(1) In General.--For purposes of the Internal Revenue Code
of 1986, any qualified forest conservation bond shall be
treated as an exempt facility bond under section 142 of such
Code.
(2) Qualified forest conservation bond.--For purposes of
this section, the term ``qualified forest conservation bond''
means any bond issued as part of an issue if--
(A) 95 percent or more of the net proceeds (as
defined in section 150(a)(3) of such Code) of such
issue are to be used for qualified project costs,
(B) such bond is an obligation of the State of
Washington or any political subdivision thereof and is
issued for the Evergreen Forest Trust, and
(C) such bond is issued before October 1, 2004.
(3) Limitation on aggregate amount issued.--The maximum
aggregate face amount of bonds which may be issued under this
section shall not exceed $250,000,000.
(4) Qualified project costs.--For purposes of this
subsection, the term ``qualified project costs'' means the sum
of--
(A) the cost of acquisition by the Evergreen Forest
Trust from an unrelated person of forests and forest
land--
(i) which are located in the State of
Washington, and
(ii) which at the time of acquisition or
immediately thereafter are subject to a
conservation restriction described in
subsection (c)(2),
(B) capitalized interest on the qualified forest
conservation bonds for the 3-year period beginning on
the date of issuance of such bonds, and
(C) credit enhancement fees which constitute
qualified guarantee fees (within the meaning of section
148 of such Code).
(5) Special rules.--In applying the Internal Revenue Code
of 1986 to any qualified forest conservation bond, the
following modifications shall apply:
(A) Section 146 of such Code (relating to volume
cap) shall not apply.
(B) For purposes of section 147(b) of such Code
(relating to maturity may not exceed 120 percent of
economic life), the land and standing timber acquired
with proceeds of qualified forest conservation bonds
shall have an economic life of 35 years.
(C) Subsections (c) and (d) of section 147 of such
Code (relating to limitations on acquisition of land
and existing property) shall not apply.
(D) Section 57(a)(5) of such Code (relating to tax-
exempt interest) shall not apply to interest on
qualified forest conservation bonds.
(6) Treatment of current refunding bonds.--Paragraphs
(2)(C) and (3) shall not apply to any bond (or series of bonds)
issued to refund a qualified forest conservation bond issued
before October 1, 2004, if--
(A) the average maturity date of the issue of which
the refunding bond is a part is not later than the
average maturity date of the bonds to be refunded by
such issue,
(B) the amount of the refunding bond does not
exceed the outstanding amount of the refunded bond, and
(C) the net proceeds of the refunding bond are used
to redeem the refunded bond not later than 90 days
after the date of the issuance of the refunding bond.
For purposes of subparagraph (A), average maturity shall be
determined in accordance with section 147(b)(2)(A) of such
Code.
(7) Effective date.--This subsection shall apply to
obligations issued after the date of the enactment of this Act.
(b) Items From Qualified Harvesting Activities Not Subject to Tax
or Taken Into Account.--
(1) In general.--Income, gains, deductions, losses, or
credits from a qualified harvesting activity conducted by the
Evergreen Forest Trust shall not be subject to tax or taken
into account under subtitle A of the Internal Revenue Code of
1986.
(2) Qualified harvesting activity.--For purposes of
paragraph (1)--
(A) In general.--The term ``qualified harvesting
activity'' means the sale, lease, or harvesting, of
standing timber--
(i) on land owned by the Evergreen Forest
Trust which was acquired with proceeds of
qualified forest conservation bonds, and
(ii) pursuant to a qualified conservation
plan adopted by the Evergreen Forest Trust.
(B) Exceptions.--
(i) Cessation as qualified organization.--
The term ``qualified harvesting activity''
shall not include any sale, lease, or
harvesting during any period that the Evergreen
Forest Trust is not a qualified organization.
(ii) Exceeding limits on harvesting.--The
term ``qualified harvesting activity'' shall
not include any sale, lease, or harvesting of
standing timber on land acquired with proceeds
of qualified forest conservation bonds to the
extent that--
(I) the average annual area of
timber harvested from such land exceeds
2.5 percent of the total area of such
land, or
(II) the quantity of timber removed
from such land exceeds the quantity
which can be removed from such land
annually in perpetuity on a sustained-
yield basis with respect to such land.
The limitations under subclauses (I) and (II)
shall not apply to salvage or sanitation
harvesting of timber stands which are
substantially damaged by fire, windthrow, or
other catastrophe, or which are in imminent
danger from insect or disease attack.
(3) Termination.--This subsection shall not apply to any
qualified harvesting activity occurring after the date on which
there is no outstanding qualified forest conservation bond or
any such bond ceases to be a tax-exempt bond.
(4) Partial recapture of benefits if harvesting limit
exceeded.--If, as of the date that this subsection ceases to
apply under paragraph (3), the average annual area of timber
harvested from the land exceeds the requirement of paragraph
(2)(B)(ii)(I), the tax imposed by chapter 1 of the Internal
Revenue Code of 1986 shall be increased, under rules prescribed
by the Secretary, by the sum of the tax benefit attributable to
such excess and interest at the underpayment rate under section
6621 for the period of the underpayment.
(c) Definitions.--For purposes of this section--
(1) Qualified conservation plan.--The term ``qualified
conservation plan'' means a multiple land use program or plan
which--
(A) is designed and administered primarily for the
purposes of protecting and enhancing wildlife and fish,
timber, scenic attributes, recreation, and soil and
water quality of the forest and forest land,
(B) mandates that conservation of forest and forest
land is the single-most significant use of the forest
and forest land,
(C) requires that timber harvesting be consistent
with--
(i) restoring and maintaining reference
conditions for the Westside Douglas Fir forest
type,
(ii) restoring and maintaining a
representative sample of young, mid, and late
successional forest age classes,
(iii) maintaining or restoring the
resources' ecological health for purposes of
preventing damage from fire, insect, or
disease,
(iv) maintaining or enhancing wildlife or
fish habitat,
(v) enhancing research opportunities in
sustainable renewable resource uses, or
(vi) preserving or protecting open space.
(2) Conservation restriction.--The conservation restriction
described in this paragraph is a restriction which--
(A) is granted in perpetuity to an unrelated person
which is described in section 170(h)(3) of such Code
and which, in the case of a nongovernmental unit, is
organized and operated for conservation purposes,
(B) meets the requirements of clause (ii) or
(iii)(II) of section 170(h)(4)(A) of such Code,
(C) obligates the Evergreen Forest Trust to pay the
costs incurred by the holder of the conservation
restriction in monitoring compliance with such
restriction, and
(D) requires an increasing level of conservation
benefits to be provided whenever circumstances allow
it.
(3) Qualified organization.--The term ``qualified
organization'' means an organization--
(A) which is a nonprofit organization organized and
operated exclusively for charitable, scientific, or
educational purposes including but not limited to
acquiring, protecting, restoring, managing, and
developing forest lands and other renewable resources
for the long-term charitable, educational, scientific,
and public benefit of the State of Washington,
(B) more than half of the value of the property of
which consists of forests and forest land acquired with
the proceeds from qualified forest conservation bonds,
(C) which periodically conducts educational
programs designed to inform the public of
environmentally sensitive forestry management and
conservation techniques,
(D) which has a board of directors that at all
times is comprised of 9 members--
(i) at least 2 of whom represent the
holders of the conservation restriction
described in paragraph (2), and
(ii) at least 2 of whom are public
officials,
(E) of which not more than one-third of the members
of the board of directors is comprised of individuals
who are or were at any time within 5 years before the
beginning of a term of membership on the board, an
employee of, independent contractor with respect to,
officer of, director of, or held a material financial
interest in, a commercial forest products enterprise
with which the Evergreen Forest Trust has a contractual
or other financial arrangement,
(F) the bylaws of which require at least two-thirds
of the members of the board of directors to vote
affirmatively to approve the qualified conservation
program and any change thereto, and
(G) upon dissolution, is required to dedicate its
assets to--
(i) an organization described in section
501(c)(3) of such Code which is organized and
operated for conservation purposes, or
(ii) a governmental unit described in
section 170(c)(1) of such Code.
(4) Evergreen forest trust.--The term ``Evergreen Forest
Trust'' means a nonprofit corporation known as the Evergreen
Forest Trust which was incorporated on February 25, 2000, under
chapter 24.03 of the Revised Code of Washington and which, on
May 11, 2001, was recognized as an organization described in
section 501(c)(3) of the Internal Revenue Code of 1986.
(5) Unrelated person.--The term ``unrelated person'' means
a person who is not a related person.
(6) Related person.--A person shall be treated as related
to another person if--
(A) such person bears a relationship to such other
person described in section 267(b) (determined without
regard to paragraph (9) thereof), or 707(b)(1), of such
Code, determined by substituting ``25 percent'' for
``50 percent'' each place it occurs therein, and
(B) in the case such other person is a nonprofit
organization, if such person controls directly or
indirectly more than 25 percent of the governing body
of such organization.
SEC. 214. PROTECTION OF SOCIAL SECURITY.
The amounts transferred to any trust fund under title II of the
Social Security Act shall be determined as if this title (other than
this section) and title I of this Act had not been enacted.
TITLE III--REVENUE PROVISIONS
SEC. 301. INDIVIDUAL EXPATRIATION TO AVOID TAX.
(a) Expatriation To Avoid Tax.--
(1) In general.--Subsection (a) of section 877 (relating to
treatment of expatriates) is amended to read as follows:
``(a) Treatment of Expatriates.--
``(1) In general.--Every nonresident alien individual to
whom this section applies and who, within the 10-year period
immediately preceding the close of the taxable year, lost
United States citizenship shall be taxable for such taxable
year in the manner provided in subsection (b) if the tax
imposed pursuant to such subsection (after any reduction in
such tax under the last sentence of such subsection) exceeds
the tax which, without regard to this section, is imposed
pursuant to section 871.
``(2) Individuals subject to this section.--This section
shall apply to any individual if--
``(A) the average annual net income tax (as defined
in section 38(c)(1)) of such individual for the period
of 5 taxable years ending before the date of the loss
of United States citizenship is greater than $122,000,
``(B) the net worth of the individual as of such
date is $2,000,000 or more, or
``(C) such individual fails to certify under
penalty of perjury that he has met the requirements of
this title for the 5 preceding taxable years or fails
to submit such evidence of such compliance as the
Secretary may require.
In the case of the loss of United States citizenship in any
calendar year after 2003, such $122,000 amount shall be
increased by an amount equal to such dollar amount multiplied
by the cost-of-living adjustment determined under section
1(f)(3) for such calendar year by substituting `2002' for
`1992' in subparagraph (B) thereof. Any increase under the
preceding sentence shall be rounded to the nearest multiple of
$1,000.''.
(2) Revision of exceptions from alternative tax.--
Subsection (c) of section 877 (relating to tax avoidance not
presumed in certain cases) is amended to read as follows:
``(c) Exceptions.--
``(1) In general.--Subparagraphs (A) and (B) of subsection
(a)(2) shall not apply to an individual described in paragraph
(2) or (3).
``(2) Dual citizens.--
``(A) In general.--An individual is described in
this paragraph if--
``(i) the individual became at birth a
citizen of the United States and a citizen of
another country and continues to be a citizen
of such other country, and
``(ii) the individual has had no
substantial contacts with the United States.
``(B) Substantial contacts.--An individual shall be
treated as having no substantial contacts with the
United States only if the individual--
``(i) was never a resident of the United
States (as defined in section 7701(b)),
``(ii) has never held a United States
passport, and
``(iii) was not present in the United
States for more than 30 days during any
calendar year which is 1 of the 10 calendar
years preceding the individual's loss of United States citizenship.
``(3) Certain minors.--An individual is described in this
paragraph if--
``(A) the individual became at birth a citizen of
the United States,
``(B) neither parent of such individual was a
citizen of the United States at the time of such birth,
``(C) the individual's loss of United States
citizenship occurs before such individual attains age
18\1/2\, and
``(D) the individual was not present in the United
States for more than 30 days during any calendar year
which is 1 of the 10 calendar years preceding the
individual's loss of United States citizenship.''.
(3) Conforming amendment.--Section 2107(a) is amended to
read as follows:
``(a) Treatment of Expatriates.--A tax computed in accordance with
the table contained in section 2001 is hereby imposed on the transfer
of the taxable estate, determined as provided in section 2106, of every
decedent nonresident not a citizen of the United States if the date of
death occurs during a taxable year with respect to which the decedent
is subject to tax under section 877(b).''.
(b) Special Rules for Determining When an Individual is no Longer a
United States Citizen or Long-Term Resident.--Section 7701 (relating to
definitions) is amended by redesignating subsection (n) as subsection
(o) and by inserting after subsection (m) the following new subsection:
``(n) Special Rules for Determining When an Individual is no Longer
a United States Citizen or Long-Term Resident.--An individual who would
not (but for this subsection) be treated as a citizen or resident of
the United States shall continue to be treated as a citizen or resident
of the United States until such individual--
``(1) gives notice of an expatriating act or termination of
residency (with the requisite intent to relinquish citizenship
or terminate residency) to the Secretary of State or the
Secretary of Homeland Security, and
``(2) provides a statement in accordance with section
6039G.''.
(c) Physical Presence in the United States for More Than 30 Days.--
Section 877 (relating to expatriation to avoid tax) is amended by
adding at the end the following new subsection:
``(g) Physical Presence.--This section shall not apply to any
individual for any taxable year during the 10-year period referred to
in subsection (a) in which such individual is present in the United
States for more than 30 days in the calendar year ending in such
taxable year, and such individual shall be treated for purposes of this
title as a citizen or resident of the United States for such taxable
year.''.
(d) Transfers Subject to Gift Tax.--Subsection (a) of section 2501
(relating to taxable transfers) is amended by adding at the end the
following:
``(6) Transfers of certain stock.--
``(A) In general.--Paragraph (3) shall not apply to
the transfer of stock described in subparagraph (B) by
any individual to whom section 877(b) applies, and
section 2511(a) shall be applied without regard to
whether such stock is property which is situated within
the United States.
``(B) Valuation.--For purposes of subparagraph (A),
the value of stock shall be determined as provided in
section 2103, except that--
``(i) if the donor owned (within the
meaning of section 958(a)) at the time of such
transfer 10 percent or more of the total
combined voting power of all classes of stock
entitled to vote of a foreign corporation, and
``(ii) if such donor owned (within the
meaning of section 958(a)), or is considered to
have owned (by applying the ownership rules of
section 958(b)), at the time of such transfer,
more than 50 percent of--
``(I) the total combined voting
power of all classes of stock entitled
to vote of such corporation, or
``(II) the total value of the stock
of such corporation, then that
proportion of the fair market value of
the stock of such foreign corporation
owned (within the meaning of section
958(a)) by such donor at the time of
such transfer, which the fair market
value of any assets owned by such
foreign corporation and situated in the
United States, at the time of such
transfer, bears to the total fair
market value of all assets owned by
such foreign corporation at the time of
such transfer, shall be included in the
value of such property.
For purposes of the preceding sentence, a donor
shall be treated as owning stock of a foreign
corporation at the time of such transfer if, at
such time, by trust or otherwise, within the
meaning of sections 2035 to 2038, inclusive, he
owned such stock.''.
(e) Enhanced Information Reporting From Individuals Losing United
States Citizenship.--
(1) In general.--Subsection (a) of section 6039G is amended
to read as follows:
``(a) In General.--Notwithstanding any other provision of law, any
individual to whom section 877(b) applies for any taxable year shall
provide a statement for such taxable year which includes the
information described in subsection (b).''.
(2) Information to be provided.--Subsection (b) of section
6039G is amended to read as follows:
``(b) Information To Be Provided.--Information required under
subsection (a) shall include--
``(1) the taxpayer's TIN,
``(2) the mailing address of such individual's principal
foreign residence,
``(3) the foreign country, in which such individual is
residing,
``(4) the foreign country of which such individual is a
citizen,
``(5) information detailing the assets and liabilities of
such individual,
``(6) the number of days that the individual was present in
the United States during the taxable year, and
``(7) such other information as the Secretary may
prescribe.''.
(3) Increase in penalty.--Subsection (d) of section 6039G
is amended to read as follows:
``(d) Penalty.--If--
``(1) an individual is required to file a statement under
subsection (a) for any taxable year, and
``(2) fails to file such a statement with the Secretary on
or before the date such statement is required to be filed or
fails to include all the information required to be shown on
the statement or includes incorrect information,
such individual shall pay a penalty of $5,000 unless it is shown that
such failure is due to reasonable cause and not to willful neglect.''.
(4) Conforming amendment.--Section 6039G is amended by
striking subsections (c), (f), and (g) and by redesignating
subsections (d) and (e) as subsection (c) and (d),
respectively.
(f) Effective Date.--The amendments made by this section shall
apply to individuals who expatriate after February 27, 2003.
SEC. 302. VACCINE TAX TO APPLY TO HEPATITIS A VACCINE.
(a) In General.--Paragraph (1) of section 4132(a) (defining taxable
vaccine) is amended by redesignating subparagraphs (I), (J), (K), and
(L) as subparagraphs (J), (K), (L), and (M), respectively, and by
inserting after subparagraph (H) the following new subparagraph:
``(I) Any vaccine against hepatitis A.''
(b) Effective Date.--
(1) Sales, etc.--The amendments made by subsection (a)
shall apply to sales and uses on or after the first day of the
first month which begins more than 4 weeks after the date of
the enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of sales
on or before the effective date described in such paragraph for
which delivery is made after such date, the delivery date shall
be considered the sale date.
Union Calendar No. 16
108th CONGRESS
1st Session
H. R. 878
[Report No. 108-23]
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a special rule
for members of the uniformed services and Foreign Service in
determining the exclusion of gain from the sale of a principal
residence and to restore the tax exempt status of death gratuity
payments to members of the uniformed services, and for other purposes.
_______________________________________________________________________
March 5, 2003
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed