II
110th CONGRESS
1st Session
S. 940
IN THE SENATE OF THE UNITED STATES
March 20, 2007
Mr. Baucus (for himself, Mr. Hatch, and Mr. Crapo) 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 permanently extend the subpart F exemption for active financing income.
Permanent subpart F exemption for active financing income
Banking, financing, or similar businesses
Subsection (h) of section 954 of the Internal Revenue Code of 1986 (relating to special rule for income derived in the active conduct of banking, financing, or similar businesses) is amended by striking paragraph (9).
Insurance businesses
Subsection (e) of section 953 of such Code (relating to exempt insurance income) is amended by striking paragraph (10) and by redesignating paragraph (11) as paragraph (10).
Effective date
The amendments made by this section shall apply to taxable years of a foreign corporation beginning after the date of the enactment of this Act, and to taxable years of United States shareholders with or within which such taxable years of such foreign corporation end.