Tax Extension Act of 1998

TABLE OF CONTENTS:

Title I: Extension of Expiring Provisions

Subtitle A: Tax Provisions

Subtitle B: Trade Provisions

Title II: Other Tax Provisions

Title III: Revenue Offset

Title IV: Technical Corrections

Tax Extension Act of 1998 - Title I: Extension of Expiring Provisions - Subtitle A: Tax Provisions - Amends the Internal Revenue Code (IRC) to temporarily extend provisions concerning the: (1) research credit; (2) work opportunity credit; (3) welfare-to-work credit; (4) contribution of stock to private foundations; (5) subpart F exemption for active financing income; (6) credit for producing fuel from a nonconventional source; and (7) disclosure of return information on income contingent student loans.

Subtitle B: Trade Provisions - Amends the Trade Act of 1974 to extend the Generalized System of Preferences through December 31, 1999.

Amends the Trade Act of 1974 to authorize appropriations for trade adjustment assistance (TAA) for workers, firms, and the training of workers adversely affected by import competition under the North American Free Trade Agreement transitional adjustment assistance program. Terminates the TAA programs July 1, 1999.

Title II: Other Tax Provisions - Provides, starting January 1, 2002, for the deduction of 100 percent of the health insurance costs of self-employed individuals.

Amends the Agricultural Market Transition Act to disregard specified payment options provided by the Emergency Farm Financial Relief Act.

Permanently extends income averaging for farmers.

Allows, for taxable year 1998, nonrefundable personal credits to fully offset regular tax liability.

Title III: Revenue Offset - Amends provisions concerning liquidation of corporate subsidiaries to provide that if a corporation receives a distribution from a regulated investment company or a real estate investment trust which is considered as being in complete liquidation of such company or trust, then, notwithstanding other specified IRC provisions, such corporation shall recognize and treat as a dividend from such company or trust an amount equal to the deduction for dividends paid allowable to such company or trust by reason of such distribution.

Title IV: Technical Corrections - Revises provisions of the IRC, the Internal Revenue Service Restructuring and Reform Act of 1998, the Taxpayer Relief Act of 1997, the Tax Reform Act of 1984, the Transportation Equity Act for the 21st Century, and title II (Old Age, Survivors and Disability Insurance) of the Social Security Act.