A bill to establish a national policy on export-related taxes.

Amends the Internal Revenue Code to increase the earned income exclusion for United States citizens working abroad, who are bona fide residents of a foreign country, from an annual rate of $20,000 to: (1) $50,000; or (2) $65,000, if such persons have been working abroad for three years. Allows separate exclusions to married individuals who are both working overseas, although one's excess exclusion cannot be used against income earned by the other. Reduces from 17 to 11 months the residency requirement for such exclusion.

Waives such requirement if the Secretary of the Treasury determines that such citizens who would otherwise qualify for the exclusion were forced to leave a foreign country before they had resided 11 consecutive months because of civil unrest, war, or other adverse conditions precluding the normal conduct of business.

Reduces from 17 to 11 months the foreign residence requirement with respect to the deduction for certain housing expenses of living abroad. Revises the formula for determining the base housing amount with regard to such deduction to make it 16 percent of the salary of a GS-14, step 1. Repeals similar deductions for cost-of-living differential, schooling expenses, home leave travel expenses, and residence in a hardship area.

Provides that the foreign bad debt loss deduction shall not exceed the greater of 15 percent of the taxpayer's taxable income from exports, or two percent of the taxpayer's export receivables outstanding at the close of the taxable year. Provides that the amount of bad debt losses that may be added to a bad debt reserve shall not exceed five percent of the taxpayer's export receivables outstanding as of the close of the taxable year.

Permits the amortization, based on a period of 60 months, of: (1) foreign market studies; (2) foreign marketing expenses; and (3) foreign patents.

Permits an income tax deduction for currency fluctuation losses on export credit which have not been repaid by the end of the taxable year.

Amends the Internal Revenue Code, with respect to the six-month deadline for exempting exports from the manufacturer's excise tax, to grant discretion to the Secretary of the Treasury to extend such deadline for an additional 11 months if it is determined, after consultation with the Secretary of State, that exports were delayed because of war, civil unrest, or similar adverse conditions in a foreign nation.

Amends the Foreign Trade Zones Act to authorize the Secretary of the Treasury to approve the duty-free entry of machinery, materials, and fuel to be used or consumed solely in the manufacture or production of goods in a foreign trade zone only if such goods are not subsequently entered into the customs territory of the United States. Specifies criteria for approval of applications for such duty-exemptions.

Requires the Foreign Trade Zones Board to include in its annual report to Congress a summary of its activities and programs in each zone which are intended to increase the use of such zones to expand United States exports.