Sec. 3620. Publicly traded partnership exception restricted to mining and natural resources partnerships
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Subsection
(d)of section 7704 is amended to read as follows: For purposes of this section, the term qualifying income means— income and gains derived from the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resource (including geothermal energy and excluding fertilizer and timber) or industrial source carbon dioxide, and any gain from the sale or disposition of a capital asset (or property described in section 1231(b)) held for the production of income described in paragraph (1). For purposes of this subsection, the term mineral or natural resource means any product of a character with respect to which a deduction for depletion is allowable under section 611 (other than minerals from sea water or the air (or similar inexhaustible sources), soil, sod, dirt, turf, water, or mosses). . Section 988(c)(1)(E) is amended— by striking income or gains described in subparagraph (A), (B), or
(G)of section 7704(d)(1) in clause (iii)(III) and inserting qualifying income or gains , by striking subclause
(III)of clause
(vi)and by redesignating subclause
(IV)as subclause (III), by redesignating clause
(vi)(as amended by this subparagraph) as clause (viii), and by inserting after clause
(v)the following new clauses: The term qualifying income or gains means— interest, dividends, and in the case of a partnership described in the second sentence of section 7704(c)(3), income and gains from commodities (not described in section 1221(a)(1)) or futures, forwards, and options with respect to commodities. If— A partnership fails to meet the gross income requirements of this subparagraph, the Secretary determines that such failure was inadvertent, no later than a reasonable time after the discovery of such failure, steps are taken so that such partnership once more meets such gross income requirements, and such partnership agrees to make such adjustments (including adjustments with respect to the partners) or to pay such amounts as may be required by the Secretary with respect to such period, then, notwithstanding such failure, such entity shall be treated as continuing to meet such gross income requirements for such period. . The amendments made by this section shall apply to taxable years beginning after December 31, 2016.