[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7044 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7044

    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

                           September 24, 2008

   Mr. English of Pennsylvania (for himself and Mr. Brady of Texas) 
 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 2008 OR 
              2009.

    (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, 2007, 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, 2007''.
    (d) Base Period.--Subparagraph (A) of section 965(c)(2) of such 
Code (as amended by subsection (c)) is amended to read as follows:
                    ``(A) In general.--The base period years are the 3 
                taxable years--
                            ``(i) which are among the 6 most recent 
                        taxable years ending on or before June 30, 
                        2007, and
                            ``(ii) which are determined by 
                        disregarding--
                                    ``(I) 1 taxable year for which the 
                                sum of the amounts described in clauses 
                                (i), (ii), and (iii) of subsection 
                                (b)(2)(B) is the largest,
                                    ``(II) 1 taxable year for which 
                                such sum is the smallest, and
                                    ``(III) the taxable year for which 
                                an election was made before the 
                                enactment of this subclause.''.
    (e) Indebtedness Determination Date.--Subparagraph (B) of section 
965(b)(3) of such Code is amended by striking ``October 3, 2004'' and 
inserting ``September 24, 2008''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 <all>