H.R. 4429

Permanent Active Financing Exception Act of 2014

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IB

Union Calendar No. 315

113th CONGRESS

2d Session

H. R. 4429

[Report No. 113–427]

IN THE HOUSE OF REPRESENTATIVES

April 8, 2014

Mr. Tiberi (for himself, Mr. Neal, Mr. Sam Johnson of Texas, Mr. Larson of Connecticut, Mr. Brady of Texas, Mr. Kind, Mr. Nunes, Mr. Pascrell, Mr. Boustany, Mr. Crowley, Mr. Schock, Mr. Reed, Ms. Linda T. Sánchez of California, Mr. Young of Indiana, and Mr. Thompson of California) introduced the following bill; which was referred to the Committee on Ways and Means

May 2, 2014

Additional sponsors: Mr. Roskam and Mr. Smith of Nebraska

May 2, 2014

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


A BILL

To amend the Internal Revenue Code of 1986 to permanently extend the subpart F exemption for active financing income.


1.

Short title

This Act may be cited as the Permanent Active Financing Exception Act of 2014.

2.

Permanent subpart F exemption for active financing income

(a)

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).

(b)

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).

(c)

Effective date

The amendments made by this section shall apply to taxable years of a foreign corporation beginning after December 31, 2013, and to taxable years of United States shareholders with or within which such taxable years of such foreign corporation end.

May 2, 2014

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed