Protect Future Dividends Act

This Act may be cited as the Protect Future Dividends Act.

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:

Gross income does not include any payment received by an individual from a 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.

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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:

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The amendments made by this section shall apply to payments received after the date of the enactment of this Act.