Section 1 Short title
This Act may be cited as the “Protect Future Dividends Act”.
Protect Future Dividends Act
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income payments from funds established by a State for purposes of the welfare of the individual residents of such State.
Sec. 2 Exclusion of payments from State sovereign wealth funds
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:
“139M. Payments from State sovereign wealth funds
“(a) In general—Gross income does not include any payment received by an individual from a State sovereign wealth fund.
“(b) State sovereign wealth fund—For purposes of this section, the term “State sovereign wealth fund” means a permanent fund—
“(1) which is established and maintained by a State solely for the benefit of individual residents of such State,
“(2) to which amounts of State revenue designated under State law are directed,
“(3) the principal of which is invested in a manner prescribed under State law, and
“(4) from which periodic payments are made under State law to individuals based primarily on residency within the State and not in consideration for anything.”
Clerical amendment— The table of sections for subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140 the following new item:
Effective date— The amendments made by this section shall apply to payments received after the date of the enactment of this Act.