Replies

`(2) TRANSITIONAL INVENTORY CREDIT RIGHT MAY BE SOLD- The business entitled to the transitional inventory credit may sell the right to receive said transitional inventory credit to the purchaser of the qualified inventory that gave rise to the credit entitlement. Any purchaser of such qualified inventory (or property or services into which the qualified inventory has been incorporated) may sell the right to said transitional inventory credit to a subsequent purchaser of said qualified inventory (or property or services into which the qualified inventory has been incorporated).

Oy.

As I tried to explain to you before, the credit right can be sold with the inventory even if the inventory is to be later incorporated in other taxable goods or services.

`(2) TRANSITIONAL INVENTORY CREDIT RIGHT MAY BE SOLD- The business entitled to the transitional inventory credit may sell the right to receive said transitional inventory credit to the purchaser of the qualified inventory that gave rise to the credit entitlement. Any purchaser of such qualified inventory (or property or services into which the qualified inventory has been incorporated) may sell the right to said transitional inventory credit to a subsequent purchaser of said qualified inventory (or property or services into which the qualified inventory has been incorporated).

According to your logic, if I'm a wholesaler, I don't get the credit because my sales are not a taxable event. That's not what the bill states. The bill reads that if you have inventory that is not taxable, you can recieve the credit and later sell that credit with the inventory. The person who sells the inventory, or any inventory it's been incorporated into, at retail can then use the credit.

That's merely more of you Out of Contex nonsense attempting to justify your gross lie that all inventory anyplace in the US counts toward the credit. It doesn't and that's not what your snippet means either.

Here's the whole applicable portion of the bill. Others may judge from their own interpretation if the thing needs to be taxable or not:

"`(a) Inventory-
`(1) QUALIFIED INVENTORY- Inventory held by a trade or business on the close of business on December 31, 2006, shall be qualified inventory if it is sold--
`(A) before December 31, 2008;
`(B) by a registered person; and
`(C) subject to the tax imposed by section 101.
`(2) COSTS- For purposes of this section, qualified inventory shall have the cost that it had for Federal income tax purposes for the trade or business as of December 31, 2006 (including any amounts capitalized by reason of section 263A of the Internal Revenue Code of 1986 as in effect on December 31, 2006).
`(3) TRANSITIONAL INVENTORY CREDIT- The trade or business which held the qualified inventory on the close of business on December 31, 2006, shall be entitled to a transitional inventory credit equal to the cost of the qualified inventory (determined in accordance with paragraph (2)) times the rate of tax imposed by section 101.
`(4) TIMING OF CREDIT- The credit provided under paragraph (3) shall be allowed with respect to the month when the inventory is sold subject to the tax imposed by this subtitle. Said credit shall be reported as an intermediate and export sales credit and the person claiming said credit shall attach supporting schedules in the form that the Secretary may prescribe.
`(b) Work-in-Process- For purposes of this section, inventory shall include work-in-process.
`(c) Qualified Inventory Held by Businesses not Selling Said Qualified Inventory at Retail-
`(1) IN GENERAL- Qualified inventory held by businesses that sells said qualified inventory not subject to tax pursuant to section 102(a) shall be eligible for the transitional inventory credit only if that business (or a business that has successor rights pursuant to paragraph (2)) receives certification in a form satisfactory to the Secretary that the qualified inventory was subsequently sold subject to the tax imposed by this subtitle.
`(2) TRANSITIONAL INVENTORY CREDIT RIGHT MAY BE SOLD- The business entitled to the transitional inventory credit may sell the right to receive said transitional inventory credit to the purchaser of the qualified inventory that gave rise to the credit entitlement. Any purchaser of such qualified inventory (or property or services into which the qualified inventory has been incorporated) may sell the right to said transitional inventory credit to a subsequent purchaser of said qualified inventory (or property or services into which the qualified inventory has been incorporated)."

You can pull your frequently used tactic of posting only part of something if you like and, like Rumplestilskin, continue to stamp your foot and claim "I didn't lie., I DIDN'T lie ..." ... but remember what happened to him Nightie.