American Jobs Stability Act of 1990

American Jobs Stability Act of 1990 - Amends the Internal Revenue Code to deny the possessions tax credit to certain business operations which relocate to a possession of the United States.

 
HR 4831 SC
101st CONGRESS
  2d Session
 H. R. 4831
To amend the Internal Revenue Code of 1986 to deny the possessions tax credit
for certain business operations relocated from the United States.
IN THE HOUSE OF REPRESENTATIVES
May 16, 1990
Mr. HILER introduced the following bill; which was referred to the Committee
on Ways and Means
September 5, 1990
Additional sponsors: Mr. BURTON of Indiana, Mr. DREIER of California,
Mr. GRANDY, Mr. JACOBS, Mr. VALENTINE, Mr. MILLER of Ohio, Mr. LEWIS of
Florida, Mr. JONTZ, Mr. DONNELLY, Mr. CONTE, Mr. SOLOMON, Mrs. COLLINS,
Mr. LIVINGSTON, Mr. DONALD E. LUKENS, Mr. HUGHES, Mr. MCDADE,
Mr. SENSENBRENNER, Mr. NEAL of Massachusetts, Mr. EMERSON, Mr. OWENS of New
York, Mr. UPTON, Mr. MADIGAN, Mr. REGULA, and Mr. Robinson
Deleted sponsor: Mr. TOWNS (added June 6, 1990; deleted July 11, 1990)
A BILL
To amend the Internal Revenue Code of 1986 to deny the possessions tax credit
for certain business operations relocated from the United States.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `American Jobs Stability Act of 1990'.
SEC. 2. CONGRESSIONAL FINDINGS.
  The Congress finds that the use of the possessions tax credit to assist
  the transfer of business operations from the United States to a possession
  (whether by direct relocation or by expansion) does not create new jobs
  and true economic growth, is contrary to the intent of the Congress in
  establishing the credit, and is harmful to workers in the United States
  when existing jobs are lost.
SEC. 3. DENIAL OF POSSESSIONS TAX CREDIT FOR CERTAIN RELOCATED BUSINESS
OPERATIONS.
  (a) IN GENERAL- Subsection (a) of section 936 of the Internal Revenue Code
  of 1986 (relating to Puerto Rico and possession tax credit) is amended by
  adding at the end the following new paragraph:
  `(4) DENIAL OF CREDIT FOR CERTAIN RELOCATED BUSINESS OPERATIONS-
  `(A) IN GENERAL- For purposes of paragraphs (1) and (2), any income
  attributable to a disqualified relocated business operation shall be
  treated as income from sources within the United States.
  `(B) DISQUALIFIED RELOCATED BUSINESS OPERATION- For purposes of this
  paragraph--
  `(i) IN GENERAL- The term `disqualified relocated business operation'
  means any business operation which is relocated (whether directly or by
  expansion) from the United States to a possession of the United States
  after the date of the enactment of the American Jobs Stability Act of 1990.
  `(ii) BUSINESS OPERATION- The term `business operation' means any operation
  of a trade or business. The term includes any industrial or commercial plant,
  equipment, facility, position, employment opportunity, production capacity,
  or product line.
  `(C) EXCEPTION- Subparagraph (A) shall not apply to any taxable year for
  which the taxpayer establishes to the satisfaction of the Secretary that
  the relocation of the business operation--
  `(i) did not, during such taxable year, significantly and adversely affect
  the level of employment, or the economic base, of the area from which the
  operation was relocated, and
  `(ii) is not likely to have such effect during any subsequent taxable year.'
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  taxable years beginning after December 31, 1989.