Bank Holding Company Tax Act

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Contents

Bank Holding Company Tax Act

Bank Holding Company Tax Act

Act Details

Bank Holding Company Tax Act was, as a bill, a proposal (now, a piece of legislation) introduced on 1976-02-19 in the House of Commons and Senate respectively of the 94 United States Congress by Al Ullman in relation with: Bank holding companies, Finance and financial sector, Holding companies, Income tax, Tax exclusion, Taxation.

Bank Holding Company Tax Act became law (1) in the United States on 1976-10-02

It was referred to the following Committee(s): (2)

House Ways and Means (HSWM)
Senate Finance (SSFI)

Al Ullman, member of the US congress
Al Ullman, Representative from Oregon, district 2

The proposal had the following cosponsors:

Herman Theodore Schneebeli, Republican, Representative, from Pennsylvania, district 17

Act Overview

Text of the Bank Holding Company Tax Act

(Reported to House from the Committee on Ways and Means with amendment H. Rept. 94-879) Bank Holding Company Tax Act – Allows bank holding companies under the Internal Revenue Code to make pro rata distributions of prohibited property without the surrender of stock by the shareholder or in exchange for preferred stock or securities without the shareholder or security holder recognizing any gain on the receipt of such prohibited property. Requires the Board of Governors of the Federal Reserve System to certify such prohibited property as an interest in a nonbanking organization. Allows a bank holding company to first create a second corporation to receive such prohibited property and then to distribute stock in such second corporation without the stockholder or security holder recognizing any gain on the receipt of such property. Allows a bank holding company to distribute all or a part of the property by reason of which such corporation controls a bank or bank holding company without the shareholder or security holder recognizing any gain on the receipt of such property. Allows a bank holding company to exchange the property by reason of which it is a bank holding company for all of the stock of a second corporation created to receive such property and then to distribute the stock in such second corporation without the stockholder or security holder recognizing any gain on the receipt of such property. Disallows the use of such provisions as a device to avoid Federal income tax on the distribution of earnings and profits of any corporation. Establishes rules for the allocation of basis and earnings and profits following such a distribution of property or stock. Defines the terms used in this Act. Effectuates such definitions on October 1 1977 with respect to distributions after July 7 1970 in the case of qualified bank holding companies. Permits bank holding companies to elect to have the determination of whether property is prohibited or is eligible to be distributed without recognition of gain made under the Bank Holding Company Act as if specified provisions of such Act relating to closely held bank holding companies did not exist. Authorizes the installment payment of tax attributable to the divestiture of instead of the distribution of prohibited property or bank property. Effectuates such installment payment provisions on October 1 1977 with respect to sales after July 7 1970 in the case of qualified bank holding companies. Makes technical and conforming amendments. Provides that if any tax attributable to a sale which occurred before October 1 1977 is payable in annual installments any portion of such tax for which the due date of the installment does not occur before October 1 1977 shall be treated as a tax overpayment.

Act Notes

  • [Note 1] An Act (like Bank Holding Company Tax Act) or a resolution cannot become a law in the United States until it has been approved (passed) in identical form by both the House of Representatives and the Senate, as well as signed by the President (but see (5)). If the two bodys of the Congress versions of an Act are not identical, one of the bodies might decide to take a further vote to adopt the bill (see more about the Congress process here). An Act may be pass in identical form with or without amendments and with or without conference. (see more about Enrollment).
  • [Note 2] Proposals are referred to committees for preliminary consideration, then debated, amended, and passed (or rejected) by the full House or Senate. To prevent endless shuttling of bills between the House and Senate, bills like Bank Holding Company Tax Act are referred to joint committees made up of members of both houses.
  • [Note 3] For more information regarding this legislative proposal, go to THOMAS, select “Bill Number,” search on (Bank Holding Company Tax Act)
  • [Note 4] A bill to amend the Internal Revenue Code of 1954 with respect to the tax treatment of certain divestitures of assets by bank holding companies. The current official title of a bill is always present, assigned at introduction (for example, in this case, on 1976-02-19) and can be revised any time. This type of titles are sentences.
  • [Note 5] The Act is referred to the appropriate committee by the Speaker of any of the two Houses. Bills are placed on the calendar of the committee to which they have been assigned. See Assignment Process.
  • [Note 6] Regarding exceptions to President´s approval, a bill that is not signed (returned unsigned) by the President can still become law if at lest two thirds of each of the two bodys of the Congress votes to pass it, which is an infrequent case. See also Presidential Veto.
  • [Note 7] Legislative Proposal types can be: hr, hres, hjres, hconres, s, sres, sjres, sconres. A bill originating in the Senate is designated by the letter “S”, and a bill originating from the House of Representatives begins with “H.R.”, followed, in both cases, by its individual number which it retains throughout all its parliamentary process.
  • [Note 8] For information regarding related bill/s to Bank Holding Company Tax Act, go to THOMAS.

Analysis

No analysis (criticism, advocacy, etc.) about Bank Holding Company Tax Act submitted yet.

Bank holding companies
Finance and financial sector
Holding companies
Income tax
Tax exclusion
Taxation

Further Reading

  • “How our laws are made”, Edward F Willett; Jack Brooks, Washington, U.S. G.P.O.
  • “To make all laws : the Congress of the United States, 1789-1989”, James H Hutson- Washington, Library of Congress.
  • “Bills introduced and laws enacted: selected legislative statistics, 1947-1990”, Rozanne M Barry; Library of Congress. Congressional Research Service.

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