[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1305 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1305
To amend the Internal Revenue Code of 1986 to provide for the treatment
of certain motor vehicle dealer transitional assistance.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 20, 2003
Mr. Bingaman (for himself, Mr. Hatch, Mr. Baucus, Mr. Conrad, Mr.
Breaux, Ms. Snowe, Mrs. Lincoln, and Mr. Smith) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for the treatment
of certain motor vehicle dealer transitional assistance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MOTOR VEHICLE DEALER TRANSITIONAL ASSISTANCE.
(a) In General.--For purposes of subtitle A of the Internal Revenue
Code of 1986, in the case of a taxpayer who elects the application of
this section and who was a party to a motor vehicle sales and service
agreement with a motor vehicle manufacturer who announced in December
2000 that it would phase-out the motor vehicle brand to which such
agreement relates--
(1) amounts received by such taxpayer from such
manufacturer on account of the termination of such agreement
(hereafter in this section referred to as ``termination
payment'') are considered to be received for property used in
the trade or business of a motor vehicle retail sales and
service dealership, and
(2) to the extent such termination payment is reinvested in
property used in a motor vehicle retail sales and service
dealership located within the United States, such property
shall qualify as like-kind replacement property to which
section 1031 of the Internal Revenue Code of 1986 shall apply
with the following modifications:
(A) Such section shall be applied without regard to
subparagraphs (A) and (B)(ii) of subsection (a)(3).
(B) The period described in section 1031(a)(3)(B)
of such Code shall be applied by substituting ``2
years'' for ``180 days''.
(b) Rules for Election.--
(1) Form of election.--The taxpayer shall make an election
under this section in such form and manner as the Secretary of
the Treasury may prescribe and shall include in such election
the amount of the termination payment received, the
identification of the replacement property purchased, and such
other information as the Secretary may prescribe.
(2) Election on amended return.--The Secretary of the
Treasury shall permit an election under this section on an
amended tax return for taxable years beginning before the date
of the enactment of this Act.
(c) Statute of Limitations.--Notwithstanding the provisions of any
other law or rule of law, the statutory period for the assessment for
any deficiency attributable to any termination payment gain shall be
extended until 3 years after the date the Secretary of the Treasury is
notified by the taxpayer of the like-kind replacement property or an
intention not to replace.
(d) Effective Date.--This section shall apply to amounts received
after December 12, 2000, in taxable years ending after such date.
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