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H.R.2574
Pro-Family, Pro-Growth, Pro-Reform Tax Reduction Act of 1999
(Introduced in the House)
HR 2574 IH
106th CONGRESS
1st Session
H. R. 2574
To amend the Internal Revenue Code of 1986 to provide comprehensive
tax relief for American families
and businesses to encourage family stability, economic growth, and tax simplification.
IN THE HOUSE OF REPRESENTATIVES
July 20, 1999
Mr. MALONEY of Connecticut (for himself, Mr. ROEMER, Mr. DOOLEY of
California, Mr. SMITH of Washington, Mr. WEYGAND, Mr. SHERMAN, Ms. HOOLEY of
Oregon, Ms. STABENOW, Mr. ETHERIDGE, Mr. GONZALEZ, Mr. MOORE, AND Mr. STUPAK)
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 provide comprehensive
tax relief for American families
and businesses to encourage family stability, economic growth, and tax simplification.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE- This Act may be cited as the `Pro-Family, Pro-Growth,
Pro-Reform Tax Reduction Act of
1999'.
Sec. 1. Short title; etc.
TITLE I--CAPITAL GAINS
Sec. 101. Repeal of
application of alternative minimum tax to stock transferred pursuant to
incentive stock options.
TITLE II--EDUCATION
Sec. 201. Extension of exclusion for employer-provided educational
assistance; exclusion to apply to assistance provided for graduate
education.
Sec. 202. Employer-provided workplace literacy tax credit.
Sec. 203. Credit for information technology training program
expenses.
Sec. 204. Teacher Technology Access Act.
Sec. 205. Teacher Technology Training Act.
Sec. 206. Increase in Hope and Lifetime Learning tax credits.
Sec. 207. Tax treatment of
student loan forgiveness.
Sec. 208. Exclusion of certain amounts received under the national
health service corps scholarship program, the F. Edward Hebert Armed Forces
Health Professions Scholarship and Financial Assistance Program, and certain
other programs.
Sec. 209. Elimination of 60-month limit on student loan interest
deduction.
Sec. 210. Credit for school construction bonds in high-growth
areas.
Sec. 211. Credit for school modernization bonds in distressed
areas.
TITLE III--EMPLOYMENT
Sec. 301. Extension of Work Opportunity Credit and Welfare-to-Work
credit.
TITLE IV--ENERGY
Sec. 401. Credit for certain energy-efficient property used in
business.
Sec. 402. Extension of credit for qualified electric vehicles.
Sec. 403. Modifications to credit for electricity produced from certain
renewable resources.
Sec. 404. Credit for certain nonbusiness energy property.
Sec. 405. Extension of wind and biomass tax credit.
Sec. 406. Kerosene Tax
Equalizer Act.
TITLE V--ENVIRONMENT
Sec. 501. Better America Bonds tax credit.
Sec. 502. Permanent extension of brownfields tax deduction at 100 percent.
Sec. 503. Restoration of deduction for demolition of certain
structures.
Sec. 504. Increase in land donation tax deduction from 30 percent to 50
percent.
Sec. 505. Temporary suspension of maximum amount of amortizable
reforestation expenditures.
TITLE VI--ESTATE TAX REDUCTION
Sec. 601. Repeal of
limitation on estate tax deduction for family-owned
business interests.
Sec. 602. Unified credit increased by unused unified credit of
predeceased spouse.
TITLE VII--FAMILY ENHANCEMENT
Sec. 701. Nonrefundable personal credits allowed against alternative
minimum tax .
Sec. 702. Elimination of marriage penalty in standard deduction.
Sec. 703. Expansion of dependent care tax credit.
Sec. 704. Employer-provided child care services.
TITLE VIII--HEALTH CARE
Sec. 801. Credit for taxpayers with long-term care needs.
Sec. 802. Credit for employer health care costs.
Sec. 803. Emergency Medical Services Enhancement Act.
Sec. 804. Deduction for health insurance costs for self-employed
individuals.
TITLE IX--HOUSING
Sec. 901. Extension of first-time District of Columbia home buyer tax credit.
Sec. 902. Increase in State ceiling in low-income housing tax credit.
TITLE X--RESEARCH AND BUSINESS
Sec. 1001. Increase in expense treatment for small businesses.
Sec. 1002. Medical innovation tax credit.
Sec. 1003. Permanent extension of research credit.
TITLE XI--RETIREMENT SECURITY
Sec. 1101. Adjustment in monthly exempt amount for purposes of the
social security earnings test.
Sec. 1102. Small business credit for pension plan start-up costs.
Sec. 1103. Increase in taxpayer IRA contributions.
TITLE XII--NATIONAL COMMISSION ON TAX SIMPLIFICATION AND REFORM
Sec. 1201. Establishment.
Sec. 1203. Administration.
TITLE XIII--AMOUNT OF REVENUES RESERVED FOR SOCIAL SECURITY AND
MEDICARE
Sec. 1301. Amount of revenues reserved for Social Security and
Medicare.
TITLE I--CAPITAL GAINS
SEC. 101. REPEAL OF
APPLICATION OF ALTERNATIVE MINIMUM TAX TO STOCK TRANSFERRED PURSUANT TO
INCENTIVE STOCK OPTIONS.
(a) IN GENERAL- Subsection (b) of section 56 of the Internal Revenue Code
of 1986 (relating to adjustments in computing alternative minimum taxable
income) is amended by striking paragraph (3).
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with
respect to options exercised after December 31, 1999.
TITLE II--EDUCATION
SEC. 201. EXTENSION OF EXCLUSION FOR EMPLOYER-PROVIDED EDUCATIONAL
ASSISTANCE; EXCLUSION TO APPLY TO ASSISTANCE PROVIDED FOR GRADUATE
EDUCATION.
(a) EXTENSION- Subsection (d) of section 127 of the Internal Revenue Code
of 1986 is hereby repealed.
(b) EXCLUSION TO APPLY TO GRADUATE STUDENTS- The last sentence of section
127(c)(1) of such Code is amended by striking `hobbies' and all that follows
and inserting `hobbies.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
courses beginning after June 30, 1999.
SEC. 202. EMPLOYER-PROVIDED WORKPLACE LITERACY TAX 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. 45D. EXPENDITURES TO PROVIDE LANGUAGE TRAINING TO EMPLOYEES.
`(a) GENERAL RULE- For purposes of section 38, the amount of the language
training credit determined under this section for the taxable year is 10
percent of the qualified language training expenses paid or incurred by the
taxpayer during the taxable year.
`(b) DOLLAR LIMIT PER EMPLOYEE- The maximum credit determined under this
section with respect to each employee shall not exceed $525.
`(c) QUALIFIED LANGUAGE TRAINING EXPENSES- For purposes of this
section--
`(1) IN GENERAL- Except as otherwise provided in this subsection, the
term `qualified language training expenses' means--
`(A) amounts paid or incurred by the taxpayer with respect to expenses
incurred by or on behalf of an employee for qualified language training of
such employee (including but not limited to tuition, fees, and similar
payments, books and supplies), and
`(B) the following expenses paid or incurred by the
taxpayer--
`(i) wages (as defined in section 41(b)(2)(D)) paid or incurred by
the taxpayer to an employee for services consisting of providing
qualified language training to employees of the taxpayer,
and
`(ii) expenses of books and supplies used in connection with the
provision of such training,
but only if such expenses are incurred pursuant to a program which meets
the requirements of paragraphs (2) and (3) of section 127.
`(2) ONLY DOMESTIC EMPLOYMENT QUALIFIED- Amounts may be taken into
account under paragraph (1) with respect to any employee receiving qualified
language training only if--
`(A) the employee is a citizen or resident of the United States and
has attained age 18, and
`(B) substantially all of the services performed by such employee
during the taxable year for the taxpayer are performed in the United
States or any possession of the United States.
`(d) QUALIFIED LANGUAGE TRAINING- For purposes of this section, the term
`qualified language training' means--
`(1) training in English language and literacy to individuals with
limited English proficiency, and
`(2) remedial training in English language and literacy.
`(e) EXCLUSION FROM EMPLOYEE'S INCOME- Amounts taken into account in
determining the credit under this section shall not be includible in the gross
income of the employee.'.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of section
38 of such Code is amended by striking `plus' at the end of paragraph (11), by
striking the period at the end of paragraph (12) and inserting `, plus', and
by adding at the end thereof the following new paragraph:
`(13) the language training credit determined under section
45D(a).'.
(c) DENIAL OF DOUBLE BENEFIT- Section 280C of such Code is amended by
adding at the end thereof the following new subsection:
`(d) CREDIT FOR LITERACY ENHANCEMENT EXPENSES- No deduction shall be
allowed for that portion of the qualified literacy education expenses (as
defined in section 45D(b)) otherwise allowable as a deduction for the taxable
year which is equal to the amount of the credit determined for such taxable
year under section 45D(a).'
(d) CREDIT ALLOWABLE AGAINST MINIMUM TAX - Subsection (c) of section 38 of
such Code is amended by redesignating paragraph (3) as paragraph (4) and by
inserting after paragraph (2) the following new paragraph:
`(3) LANGUAGE TRAINING CREDIT ALLOWED AGAINST MINIMUM TAX -
`(A) IN GENERAL- The amount determined under paragraph (1)(A) shall be
reduced by the portion of the language training credit not used against
the normal limitation.
`(B) PORTION OF LANGUAGE TRAINING CREDIT NOT USED AGAINST NORMAL
LIMITATION- For purposes of subparagraph (A), the portion of the language
training credit not used against the normal limitation is the excess (if
any) of--
`(i) the portion of the credit allowable under subsection (a) which
is attributable to the language training credit, 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.'
(e) 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 section:
`Sec. 45D. Expenditures to provide language training to employees.'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 203. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.
(a) IN GENERAL- 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 the following:
`SEC. 45E. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.
`(a) GENERAL RULE- For purposes of section 38, in the case of an employer,
the information technology training program credit determined under this
section is an amount equal to 20 percent of information technology
training program expenses paid or incurred by the taxpayer during the taxable
year.
`(b) ADDITIONAL CREDIT PERCENTAGE FOR CERTAIN PROGRAMS- The percentage
under subsection (a) shall be increased by 5 percentage points for information
technology training program expenses paid or incurred by the taxpayer with
respect to a program operated--
`(1) in an empowerment zone or enterprise community designated under
part I of subchapter U,
`(2) in a school district in which at least 50 percent of the students
attending schools in such district are eligible for free or reduced-cost
lunches under the school lunch program established under the National School
Lunch Act,
`(3) in an area designated as a disaster area by the Secretary of
Agriculture or by the President under the Disaster Relief and Emergency
Assistance Act in the taxable year or the 4 preceding taxable years,
`(4) in a rural enterprise community designated under section 766 of the
Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999,
`(5) in an area designated by the Secretary of Agriculture as a Rural
Economic Area Partnership Zone, or
`(6) by an employer who has 200 or fewer employees for each working day
in each of 20 or more calendar weeks in the current or preceding calendar
year.
`(c) LIMITATION- The amount of information technology training program
expenses with respect to an individual which may be taken into account under
subsection (a) for the taxable year shall not exceed $6,000.
`(d) INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES- For purposes of
this section--
`(1) IN GENERAL- The term `information technology training program
expenses' means expenses paid or incurred by reason of the participation of
the employer in any information technology training program.
`(2) INFORMATION TECHNOLOGY TRAINING PROGRAM- The term `information
technology training program' means a program--
`(A) for the training of computer programmers, systems analysts, and
computer scientists or engineers (as such occupations are defined by the
Bureau of Labor Statistics),
`(B) involving a partnership of--
`(ii) State training programs, school districts, university systems,
or certified commercial information technology training providers,
and
`(C) at least 50 percent of the costs of which are paid or incurred by
the employers.
`(3) CERTIFIED COMMERCIAL INFORMATION TECHNOLOGY TRAINING PROVIDER- The
term `certified commercial information technology training providers' means
a private sector provider of educational products and services utilized for
training in information technology which is certified with respect
to--
`(A) the curriculum that is used for the training, or
`(B) the technical knowledge of the instructors of such
provider,
by 1 or more software publishers or hardware manufacturers the products
of which are a subject of the training.
`(e) DENIAL OF DOUBLE BENEFIT- No deduction or credit under any other
provision of this chapter shall be allowed with respect to information
technology training program expenses (determined without regard to the
limitation under subsection (c)).
`(f) ALLOCATIONS- For purposes of this section, rules similar to the rules
of section 41(f)(2) shall apply.'
(b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT- Section 38(b) of the
Internal Revenue Code of 1986 (relating to current year business credit) is
amended by striking `plus' at the end of paragraph (12), by striking the
period at the end of paragraph (13) and inserting `, plus', and by adding at
the end the following:
`(14) the information technology training program credit determined
under section 45E.'
(c) NO CARRYBACKS- Subsection (d) of section 39 of the Internal Revenue
Code of 1986 (relating to carryback and carryforward of unused credits) is
amended by adding at the end the following:
`(9) NO CARRYBACK OF SECTION 45E CREDIT BEFORE EFFECTIVE DATE- No
portion of the unused business credit for any taxable year which is
attributable to the information technology training program credit
determined under section 45E may be carried back to a taxable year ending
before the date of the enactment of section 45E.'
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following:
`Sec. 45E. Information technology training program expenses.'
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
amounts paid or incurred after the date of enactment of this Act in taxable
years ending after such date.
SEC. 204. TEACHER TECHNOLOGY ACCESS ACT.
(a) FINDINGS- The Congress finds the following:
(1) There is a need for widespread commitment to provide each child with
a high quality education that will prepare that child to successfully
compete in a global marketplace.
(2) The technological transformation of our schools will go to waste if
elementary and secondary teachers are not provided with the support they
need to effectively integrate technologies into their teaching.
(3) Teachers should be provided with the tools and time required to
master a variety of technological skills, redesign their lesson plans around
technology-enhanced resources, and take on a complex new role in the
technologically transformed classroom.
(4) Teachers receive little support for these fundamental changes, and
most teachers are left largely
on their own as they struggle to integrate technology into their curricula.
(5) Just as our Nation's businesses are provided with a variety of tax incentives to improve their
business operations in order to strengthen the American economy, so also it
is necessary and appropriate that our Nation's secondary and elementary
teachers are afforded similar opportunities in order to fulfill our
commitment to providing every child with a high quality education.
(b) CREDIT FOR ACQUISITION OF COMPUTER HARDWARE AND SOFTWARE BY ELEMENTARY
AND SECONDARY TEACHERS-
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