[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1060 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 1060
To amend the Internal Revenue Code of 1986 to provide a tax credit to
businesses which mine metallurgical coal and are required to make
contributions to the UMWA Combined Benefit Fund created by the Energy
Policy Act of 1992.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 28 (legislative day, April 19), 1993
Mr. Robb (for himself and Mr. Warner) 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 a tax credit to
businesses which mine metallurgical coal and are required to make
contributions to the UMWA Combined Benefit Fund created by the Energy
Policy Act of 1992.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. METALLURGICAL COAL MINING CREDIT.
(a) General Rule.--Subpart D of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by adding at the end thereof the following new
section:
``SEC. 45A. METALLURGICAL COAL MINING CREDIT.
``(a) General Rule.--For purposes of section 38, the metallurgical
coal mining credit determined under this section for the taxable year
is the lesser of--
``(1) the applicable percentage of the aggregate amount of
the premiums paid or accrued by the taxpayer during the taxable
year pursuant to chapter 99 of this title (relating to coal
industry health benefits), or
``(2) 7.5 percent of the aggregate gross revenue from the
sale of qualified metallurgical coal sold by the taxpayer
during the taxable year to an unrelated person.
``(b) Qualification.--No credit shall be determined under
subsection (a) with respect to any taxpayer unless at least 20 percent
of the total tons of qualified coal sold by the taxpayer during each of
the 4 preceding taxable years was qualified metallurgical coal. For
purposes of the preceding sentence, only coal produced from an economic
interest held by the taxpayer shall be taken into account.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable percentage.--The applicable percentage is
the percentage of the aggregate tons of qualified coal sold by
the taxpayer during the taxable year to unrelated persons which
consists of qualified metallurgical coal. In no event shall the
applicable percentage exceed 75 percent.
``(2) Qualified metallurgical coal.--The term `qualified
metallurgical coal' means any bituminous coal which--
``(A) is used in the production of iron and steel,
and
``(B) is processed by, or produced from an economic
interest held by, a signatory operator.
``(3) Unrelated person.--The term `unrelated person' has
the same meaning as when used in section 29.
``(4) Affiliated groups.--All members of the same
affiliated group (as defined in section 1504) shall be treated
as one taxpayer for purposes of this section and the credit
determined under subsection (a) with respect to such one
taxpayer shall be allocated among such members in such manner
as the Secretary may prescribe.
``(5) Economic interest.--The term `economic interest'
means an interest with respect to which an allowance for
depletion is allowable.
``(6) Bituminous coal.--The term `bituminous coal' means
coal classified as bituminous coal according to the publication
of the American Society for Testing and Materials under the
title `Standard Classification of Coals by Rank' (ASTM D 338-
91A), as in effect on the date of the enactment of chapter 99.
``(7) Qualified coal.--The term `qualified coal' means any
bituminous coal which is produced and processed by a signatory
operator from an economic interest held by a signatory
operator.
``(8) Signatory operator.--The term `signatory operator'
has the meaning given such term by section 9701(c)(1), and
shall include all members of the affiliated group of which such
signatory operator is a member that are also signatory
operators.
``(9) Ton--.The term `ton' means 2,000 pounds.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 is amended by striking ``plus'' at the end of paragraph (7),
by striking the period at the end of paragraph (8) and inserting ``,
plus'', and by adding at the end thereof the following new paragraph:
``(9) the metallurgical coal credit determined under
section 45A.''.
(c) Credit May Offset 90 Percent of Minimum Tax.--Subsection (c) of
section 38 of such Code is amended by redesignating paragraph (2) as
paragraph (3) and by inserting after paragraph (1) the following new
paragraph:
``(2) Metallurgical coal credit may offset 90 percent of
minimum tax.--
``(A) In general.--In the case of a taxpayer
entitled to a credit determined under section 45A, the
amount determined under paragraph (1)(A) shall be
reduced by the lesser of--
``(i) the portion of the metallurgical coal
credit not used against the normal limitation,
or
``(ii) 90 percent of the taxpayer's
tentative minimum tax for the taxable year.
``(B) Portion of metallurgical coal credit not used
against normal limitation.--For purposes of
subparagraph (A), the portion of the metallurgical coal
credit not used against the normal limitation is the
excess (if any) of--
``(i) the portion of the credit under
subsection (a) which is attributable to the
metallurgical coal credit determined under
section 45A, over
``(ii) the limitation of paragraph (1)
(determined without regard to this paragraph)
reduced by the portion of the credit under
subsection (a) which is not so attributable.''
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end thereof the following new item:
``Sec. 45A. Metallurgical coal mining
credit.''.
(e) Effective Date.--The amendments made by this section shall take
effect on January 1, 1993.
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