H.R. 7760: Protect Future Dividends Act

This bill, titled the Protect Future Dividends Act, aims to change the tax treatment of payments received from State sovereign wealth funds for individuals residing in those states. Here's what the bill proposes:

Key Provisions

• The bill will amend the Internal Revenue Code to exclude payments from State sovereign wealth funds from gross income for tax purposes.
• These payments will not be subject to federal income tax, effectively reducing the tax burden for individuals who receive them.

Definition of State Sovereign Wealth Fund

A State sovereign wealth fund is defined in the bill as a permanent fund that:

• Is established and maintained by a State solely for the benefit of its individual residents.
• Receives amounts of State revenue that are designated under State law.
• Invests the principal according to State law.
• Distributes periodic payments to individuals based on their residency within the State, rather than in exchange for services or other considerations.

Clerical Amendment

The bill includes a clerical amendment that updates the Internal Revenue Code by adding a section specifically for payments from State sovereign wealth funds.

Effective Date

The changes proposed by this bill would take effect for payments received after the bill is enacted.

Relevant Companies

• None found