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HR 507 IH
111th CONGRESS
1st Session
H. R. 507
To amend the Internal Revenue Code of 1986 to allow a temporary dividends received deduction for taxable years beginning in 2008 or 2009.
IN THE HOUSE OF REPRESENTATIVES
January 14, 2009
Mr. BRADY of Texas (for himself, Mr. SAM JOHNSON of Texas, and Mr. HERGER) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a temporary dividends received deduction for taxable years beginning in 2008 or 2009.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. TEMPORARY DIVIDENDS RECEIVED DEDUCTION ALLOWED FOR 2009 OR 2010.
(a) Election- Subsection (f) of section 965 of the Internal Revenue Code of 1986 (relating to election) is amended to read as follows:
‘(f) Election- In the case of any taxable year beginning after September 30, 2008, the taxpayer may elect to apply this section to--
‘(1) the taxpayer’s last taxable year which begins before the date of the enactment of this subsection, or
‘(2) the taxpayer’s first taxable year which begins during the 1-year period beginning on such date.
Such election may be made for a taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.’.
(b) Failure To Maintain Employment Levels- Subsection (b) of section 965 of such Code (relating to limitations) is amended by adding at the end the following:
‘(5) REDUCTION IN BENEFITS FOR FAILURE TO MAINTAIN EMPLOYMENT LEVELS-
‘(A) IN GENERAL- If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in paragraph (1) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer’s prior average employment, an additional amount equal to $25,000 multiplied by the number of employees by which the taxpayers average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to paragraph (1)) shall be taken into income by the taxpayer during the taxable year that includes the final day of such period.
‘(B) PRIOR AVERAGE EMPLOYMENT- For purposes of this paragraph, the taxpayer’s ‘prior average employment’ shall be the average number of employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in paragraph (1).
‘(C) AGGREGATION RULES- In determining the taxpayer’s average employment level and prior average employment, all domestic members of a controlled group shall be treated as a single taxpayer.’.
(c) Threshold Period- Section 965 of such Code is amended by striking ‘June 30, 2003’ each place it occurs and inserting ‘June 30, 2008’.
(d) Base Period- Subparagraph (A) of section 965(c)(2) of such Code (as amended by subsection (c)) is amended to read as follows:
(e) Indebtedness Determination Date- Subparagraph (B) of section 965(b)(3) of such Code is amended by striking ‘October 3, 2004’ and inserting ‘January 13, 2009’.
(f) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
U.S. Congress - Text of H.R.507 as Introduced in House To amend the Internal Revenue Code of 1986 to allow a temporary dividends received dedu...
