109th CONGRESS
1st Session
H. R. 365
To amend the Internal Revenue Code of 1986 to exclude working capital
in applying the accumulated earnings tax.
IN THE HOUSE OF REPRESENTATIVES
January 25, 2005
Mr. WILSON of South Carolina 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 exclude working capital
in applying the accumulated earnings tax.
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 `Accumulated Earnings Tax Modification Act of
2005'.
SEC. 2. WORKING CAPITAL EXCLUDED FROM ACCUMULATED EARNINGS TAX.
(a) In General- Subsection (b) of section 537 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new paragraph:
`(6) WORKING CAPITAL- The reasonably anticipated needs of a business shall
include working capital for the business in an amount that is not less than
the sum of the cost of goods, operating expenses, taxes, and interest expense
that the business incurred during the prior taxable year.'.
(b) Effective Date- The amendment made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
END
