,,ii #aah? ,,congress #a/ ,session ,s4 #beah ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bf1 #bjbc ,mr4 ,wyd5 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to make inve/m5t income ( c]ta9 =eign gov]nm5ts subject to tax4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,end+ ,tax ,breaks = ,massive ,sov]eign ,weal? ,funds ,act4 #b4 ,inve/m5t income ( c]ta9 =eign gov]nm5ts subject to tax 7a7 ,9 g5]al ,section #hib7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,inve/m5t income ( non-exempt =eign gov]nm5ts 7,a7 ,9 g5]al ,p>agraph 7#a77;,a77i7 %all n apply to income f inve/m5ts ( a non-exempt =eign gov]nm5t4 7,b7 ,non-exempt =eign gov]nm5t ,= purposes ( ?is p>agraph1 ! t]m non-exempt =eign gov]nm5t means any =eign gov]nm5t :i*-- 7i7 holds1 directly or indirectly1 m ?an #ajj1jjj1jjj1jjj 9 assets = inve/m5t or = ! production ( income1 & 7ii7 ei!r-- 7,i7 does n h a free trade agreem5t 9 effect ) ! ,unit$ ,/ates or an income tax treaty or conv5tion 9 effect ) ! ,unit$ ,/ates1 or 7,,ii7 is a =eign gov]nm5t ( a cov]$ nation 7z def9$ 9 section #dhgb7;d77#b7 ( title #aj1 ,unit$ ,/ates ,code74 4 7b7 ,regulations ,section #hib7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ be=e ! p]iod at ! end ! foll[+ 1 includ+-- 7#a7 regulations to prev5t ! avoidance ( ! purposes ( subsection 7a77#d71 & 7#b7 regulations relat+ to ! types ( assets tak5 into acc\nt "u subsection 7a77#d77;,b77i74 4 7c7 ,publication ( li/ ( non-,exempt =eign gov]nm5ts 7#a7 ,9 g5]al ,n lat] ?an ,decemb] #ca1 #bjbd1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all publi% a li/ ( =eign gov]nm5ts :i* are non-exempt =eign gov]nm5ts 7z def9$ 9 section #hib7;a77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section74 7#b7 ,updat+ ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all regul>ly update ! li/ publi%$ "u p>agraph 7#a74 7d7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5ts made by ?is section %all apply to income receiv$ aft] ,decemb] #ca1 #bjbc4 7#b7 ,delay 9 application = income on qualifi$ inve/m5ts ,9 ! case ( any qualifi$ inve/m5t1 ! am5dm5ts made by ?is section %all apply to income receiv$ f su* inve/m5t aft] ,decemb] #ca1 #bjbe4 7#c7 ,qualifi$ inve/m5t ,= purposes ( p>agraph 7#b7-- 7,a7 ,9 g5]al ,! t]m qualifi$ inve/m5t means1 ) respect to a non-exempt =eign gov]nm5t1 any inve/m5t made by su* gov]nm5t on or be=e ! date ( ! enactm5t ( ?is ,act ! income f :i* w\ld 7)\t reg>d to ! am5dm5ts made by ?is ,act7 be exclud$ f ! gross income ( su* gov]nm5t "u section #hib ( ! ,int]nal ,rev5ue ,code ( #aihf4 7,b7 ,c]ta9 lat] inve/m5ts treat$ z qualifi$ inve/m5ts ,9 ! case ( an inve/m5t made by a non-exempt =eign gov]nm5t :i* w\ld be treat$ z a qualifi$ inve/m5t ( su* gov]nm5t b = ! fact x 0 made aft] ! date ( ! enactm5t ( ?is ,act & be=e ,janu>y #a1 #bjbf1 su* inve/m5t %all be treat$ z a qualifi$ inve/m5t if x-- 7i7 0 made pursuant to a b9d+ contract :i*-- 7,i7 0 9 effect on su* date ( enactm5t & at all times !reaft] be=e su* inve/m5t1 7,,ii7 requir$ su* inve/m5t to be made on a fix$ date & 9 a fix$ am\nt1 & 7,,iii7 did n all[ any p]son to delay1 d5y1 or excuse su* inve/m5t1 or 7ii7 is a qualifi$ public inve/m5t4 7,c7 ,t]m9ation ( qualifi$ inve/m5t treatm5t 7i7 ,9 g5]al ,if-- 7,i7 a dome/ic corporation ( :i* a non-exempt =eign gov]nm5t is a direct %>ehold] & :i* has receiv$ #a or m qualifi$ inve/m5ts1 or 7,,ii7 a dome/ic or =eign p>tn]%ip 7or simil> fl[-?r\gh entity7 9 :i* a non-exempt =eign gov]nm5t is a direct p>tn] & :i* has made #a or m qualifi$ inve/m5ts on behalf ( a non-exempt =eign gov]nm5t1 receives an additional inve/m5t 7:i* is n a qualifi$ inve/m5t7 f any non-exempt =eign gov]nm5t1 !n1 not)/&+ p>agraph 7#b71 ! am5dm5ts made by ?is section %all apply to income receiv$ f all ! qualifi$ inve/m5ts receiv$ by ! non-exempt =eign gov]nm5t f su* dome/ic corporation or ?r\gh su* p>tn]%ip 7or simil> fl[-?r\gh entity7 aft] ! date on :i* su* dome/ic corporation or p>tn]%ip 7or simil> fl[-?r\gh entity7 receives su* additional inve/m5t4 7ii7 ,det]m9ation ( receipt ,= purposes ( ?is subp>agraph1 an entity describ$ 9 subclause 7,i7 or 7,,ii7 ( clause 7i7 %all be treat$ z hav+ receiv$ an additional inve/m5t f a non-exempt =eign gov]nm5t if-- 7,i7 x receives su* inve/m5t directly f su* gov]nm5t1 or 7,,ii7 x receives su* inve/m5t f a p>tn]%ip 7or simil> fl[-?r\gh entity7 ( :i* su* gov]nm5t is a direct or indirect p>tn]4 7iii7 ,c]tification ,= purposes ( ?is subp>agraph1 an entity %all be treat$ z hav+ receiv$ additional inve/m5ts describ$ 9 clause 7i7 unless1 at ! "t ( mak+ paym5ts ( income on any qualifi$ inve/m5t1 su* entity c]tifies 79 su* mann] z ! ,secret>y ( ! ,treasury or 8 delegate may prescribe7 t no su* additional inve/m5ts h be5 receiv$ z ( su* "t4 7,d7 ,qualifi$ public inve/m5t ,= purposes ( subp>agraph 7,b77ii7-- 7i7 ,9 g5]al ,! t]m qualifi$ public inve/m5t means any inve/m5t by a non-exempt =eign gov]nm5t 9 a dome/ic corporation or a dome/ic or =eign p>tn]%ip :i* is regul>ly trad$ on an e/abli%$ securities m>ket4 7ii7 ,exception ,su* t]m %all n include-- 7,i7 any inve/m5t 9 a dome/ic corporation on or aft] ! date on :i* su* non-exempt =eign gov]nm5t holds 7directly or indirectly7 #aj p]c5t or m 7by vote or value7 ( ! total out/&+ %>es ( /ock 9 su* dome/ic corporation1 & 7,,ii7 any inve/m5t 9 a dome/ic or =eign p>tn]%ip on or aft] ! date on :i* su* non-exempt =eign gov]nm5t holds 7directly or indirectly7 #aj p]c5t or m ( ! capital or pr(its int]e/s ( su* dome/ic p>tn]%ip4 7,e7 ,o!r t]ms ,= purposes ( ?is p>agraph-- 7i7 ,non-exempt =eign gov]nm5t ,! t]m non-exempt =eign gov]nm5t has ! mean+ giv5 su* t]m "u section #hib7;a77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section74 7ii7 ,inve/m5t ,! t]m inve/m5t means an inve/m5t describ$ 9 section #hib7;a77#a77;,a77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf4