,,ii #aaeth ,,congress #ast ,session ,s4 #afih ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #a1 #bjag,ms4 ,murkowski 7for herself and ,mr4 ,sullivan7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to clarify the treatment of contributions to ,alaska ,native ,settlement ,trusts1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,settlement ,trust ,improvement ,act of #bjag4 #b4 ,exclusion for ,,ancsa payments assigned to ,alaska ,native ,settlement ,trusts 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting before section #adj the following new section3 #aci;,g4 ,assignments to ,alaska ,native ,settlement ,trusts 7a7 ,in general ,in the case of a ,native ,corporation1 gross income shall not include the value of any payments that would otherwise be made1 or treated as being made1 to such ,native ,corporation pursuant to1 or as required by1 any provision of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afja et seq471 including any payment that would otherwise be made to a ,village ,corporation pursuant to section #g7;j7 of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afjf7;j771 provided that any such payments-- 7#a7 are assigned in writing to a ,settlement ,trust1 and 7#b7 were not received by such ,native ,corporation prior to the assignment described in paragraph 7#a74 7b7 ,inclusion in gross income ,in the case of a ,settlement ,trust which has been assigned payments described in subsection 7a71 gross income shall include such payments as and when such payments are received by such ,settlement ,trust pursuant to the assignment and shall have the same character as if such payments were received by the ,native ,corporation4 7c7 ,amount and scope of assignment ,the amount and scope of any assignment under subsection 7a7 shall be described with reasonable particularity and may either be in a percentage of one or more such payments or in a fixed dollar amount4 7d7 ,duration of assignment2 revocability ,any assignment under subsection 7a7 shall specify-- 7#a7 a duration either in perpetuity or for a period of time1 and 7#b7 whether such assignment is revocable4 7e7 ,prohibition on deduction ,notwithstanding section #bej1 no deduction shall be allowed to a ,native ,corporation for purposes of any amounts described in subsection 7a74 7f7 ,definitions ,for purposes of this section1 the terms ,native ,corporation and ,settlement ,trust have the same meaning given such terms under section #fdf7;h74 4 7b7 ,conforming amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting before the item relating to section #adj the following new item3 ,sec4 #aci;,g4 ,assignments to ,alaska ,native ,settlement ,trusts4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #c4 ,deduction of contributions to ,alaska ,native ,settlement ,trusts 7a7 ,in general ,part ,,viii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #bej4 ,contributions to ,alaska ,native ,settlement ,trusts 7a7 ,in general ,in the case of a ,native ,corporation1 there shall be allowed a deduction for any contributions made by such ,native ,corporation to a ,settlement ,trust 7regardless of whether an election under section #fdf is in effect for such ,settlement ,trust7 for which the ,native ,corporation has made an annual election under subsection 7e74 7b7 ,amount of deduction ,the amount of the deduction under subsection 7a7 shall be equal to-- 7#a7 in the case of a cash contribution 7regardless of the method of payment1 including currency1 coins1 money order1 or check71 the amount of such contribution1 or 7#b7 in the case of a contribution not described in paragraph 7#a71 the ,native ,corporation's adjusted basis in the property contributed4 7c7 ,limitation and carryover 7#a7 ,in general ,subject to paragraph 7#b71 the deduction allowed under subsection 7a7 for any taxable year shall not exceed the taxable income of the ,native ,corporation for the taxable year in which the contribution was made4 7#b7 ,carryover ,if the aggregate amount of contributions described in subsection 7a7 for any taxable year exceeds the limitation under paragraph 7#a71 such excess shall be treated as a contribution described in subsection 7a7 in each of the #ae succeeding years in order of time4 7d7 ,definitions ,for purposes of this section1 the terms ,native ,corporation and ,settlement ,trust have the same meaning given such terms under section #fdf7;h74 7e7 ,manner of making election 7#a7 ,in general ,for each taxable year1 a ,native ,corporation may elect to have this section apply for such taxable year on the income tax return or amended income tax return of the ,native ,corporation1 with such election to have effect solely for such taxable year4 7#b7 ,revocation ,any election made by a ,native ,corporation pursuant to this subsection may be revoked pursuant to an amended income tax return which has been timely filed by such ,native ,corporation4 7f7 ,additional rules 7#a7 ,earnings and profits ,notwithstanding section #fdf7;d77#b71 in the case of a ,native ,corporation which claims a deduction under this section for any taxable year1 the earnings and profits of such ,native ,corporation for such taxable year shall be reduced by the amount of such deduction4 7#b7 ,gain or loss ,no gain or loss shall be recognized by the ,native ,corporation with respect to a contribution of property for which a deduction is allowed under this section4 7#c7 ,income ,subject to subsection 7g71 a ,settlement ,trust shall report income in the amount of any deduction allowed under this section in the taxable year in which the ,settlement ,trust actually receives such contribution4 7#d7 ,period ,in determining the period that a ,settlement ,trust has held property for which a deduction is allowed under this section1 the period the ,native ,corporation has held such property shall be included4 7#e7 ,basis ,the basis that a ,settlement ,trust has for which a deduction is allowed under this section shall be equal to the adjusted basis of the ,native ,corporation in such property immediately before such contribution4 7#f7 ,prohibition ,no deduction shall be allowed under this section with respect to any contributions made to a ,settlement ,trust which are in violation of subsection 7a77#b7 or 7c77#b7 of section #ci of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afbi;e74 7g7 ,election by ,settlement ,trust ,to ,defer ,income ,recognition 7#a7 ,in general ,in the case of a contribution which consists of property other than cash1 a ,settlement ,trust may elect to defer recognition of any income related to such property until the sale or exchange of such property1 in whole or in part1 by the ,settlement ,trust4 7#b7 ,treatment ,in the case of property described in paragraph 7#a71 any income or gain received by the ,settlement ,trust upon sale or exchange of such property shall be treated as-- 7,a7 for such amount of the income or gain as is equal to or less than the amount of income deferred pursuant to this subsection1 ordinary income1 and 7,b7 for any amounts of the income or gain which are in excess of the amount of income deferred pursuant to this subsection1 having the same character as if this subsection did not apply4 7#c7 ,election 7,a7 ,in general ,for each taxable year1 a ,settlement ,trust may elect to apply this subsection for any property described in paragraph 7#a7 which was contributed during such year4 ,any property to which the election applies shall be identified and described with reasonable particularity on the income tax return or amended income tax return of the ,settlement ,trust1 with such election to have effect solely for such taxable year4 7,b7 ,revocation ,any election made by a ,settlement ,trust pursuant to this subsection may be revoked pursuant to an amended income tax return which has been timely filed by such ,settlement ,trust4 7,c7 ,certain dispositions 7i7 ,in general ,in the case of any property for which an election is in effect under this subsection and which is disposed of within the first taxable year subsequent to the taxable year in which such property was contributed to the ,settlement ,trust-- 7,i7 such election shall be voided as to such property1 7,,ii7 the ,settlement ,trust shall be required to file an amended return for the taxable year in which such property was contributed1 and 7,,iii7 the ,settlement ,trust shall pay any tax applicable to such property1 including interest and a penalty equal to #aj percent of the amount of such tax4 7ii7 ,assessment ,notwithstanding section #feja7;a71 any amount described in subclause 7,,iii7 of clause 7i7 may be assessed1 or a proceeding in court with respect to such amount may be initiated without assessment1 within #d years after the date on which the return making the election under this subsection for such property was filed4 4 7b7 ,conforming amendment ,the table of sections for part ,,viii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #bej4 ,contributions to ,alaska ,native ,settlement ,trusts4 4 7c7 ,permissive ,amendments to ,trust ,agreements ,establishing ,settlement ,trusts 7#a7 ,in general ,notwithstanding any provision of law1 including any provision of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afja et seq471 ,alaska ,state law1 or the terms of any trust agreement of a ,settlement ,trust 7as defined under section #c7t7 of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afjb7t7771 the terms of any trust agreement of a ,settlement ,trust may1 within the #a-year period following the date of the enactment of this ,act1 be amended as necessary to allow such ,trust to make an election described in subsection 7g7 of section #bej of the ,internal ,revenue ,code of #aihf 7as added by subsection 7a774 7#b7 ,amendment ,an amendment described in paragraph 7#a7 shall be enacted pursuant to one or more agreements between the ,native ,corporation that established the ,settlement ,trust and the trustees of such ,trust and shall not require any vote by the beneficiaries of such ,trust or the shareholders of such ,native ,corporation4 7#c7 ,registration statement ,any ,settlement ,trust which was registered in accordance with ,alaska ,state law prior to the date of the enactment of an amendment described in paragraph 7#a7 shall not be required to file a new or amended registration statement to reflect such amendment4 7d7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to taxable years for which the period of limitation on refund or credit under section #feaa of the ,internal ,revenue ,code of #aihf has not expired4 7#b7 ,one-year waiver of statute of limitations ,if the period of limitation on a credit or refund resulting from the amendments made by subsection 7a7 expires before the end of the #a-year period beginning on the date of the enactment of this ,act1 refund or credit of such overpayment 7to the extent attributable to such amendments7 may1 nevertheless1 be made or allowed if claim therefor is filed before the close of such #a-year period4 #d4 ,information reporting for deductible contributions to ,alaska ,native ,settlement ,trusts 7a7 ,in general ,section #fjci;,h of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in the heading1 by striking sponsoring1 and 7#b7 by adding at the end the following new subsection3 7e7 ,deductible contributions by ,native ,corporations to ,alaska ,native ,settlement ,trusts 7#a7 ,in general ,any ,native ,corporation 7as defined in subsection 7m7 of section #c of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afjb7m777 which has made a contribution to a ,settlement ,trust 7as defined in subsection 7t7 of such section7 to which an election under subsection 7e7 of section #bej applies shall provide such ,settlement ,trust with a statement regarding such election not later than ,january #ca of the calendar year subsequent to the calendar year in which the contribution was made4 7#b7 ,content of ,statement ,the statement described in paragraph 7#a7 shall include-- 7,a7 the total amount of contributions to which the election under subsection 7e7 of section #bej applies1 7,b7 for each contribution1 whether such contribution was in cash1 7,c7 for each contribution which consists of property other than cash1 the date that such property was acquired by the ,native ,corporation and the adjusted basis of such property on the date such property was contributed to the ,settlement ,trust1 7,d7 the date on which each contribution was made to the ,settlement ,trust1 and 7,e7 such information as the ,secretary determines to be necessary or appropriate for the identification of each contribution and the accurate reporting of income relating to such contributions by the ,settlement ,trust4 4 7b7 ,conforming amendment ,the item relating to section #fjci;,h in the table of sections for subpart ,a of part ,,iii of subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,sec4 #fjci;,h4 ,information ,with ,respect to ,alaska ,native ,settlement ,trusts and ,native ,corporations4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #e4 ,statutory construction ,this ,act is remedial ,indian legislation enacted under the plenary authority of the ,congress under the ,constitution of the ,united ,states to regulate ,indian affairs1 and any ambiguities in section #aci;,f or #bej of the ,internal ,revenue ,code of #aihf1 as added by this ,act1 shall be resolved in favor of ,native ,corporations attempting to exclude income or claim a deduction thereunder4