S.Amdt. 4413

SA 4413. Mr. SCHUMER submitted an amendment intended to be proposed
to amendment SA 4387 submitted by Mr. Dodd (for himself and Mr. Shelby)
to the bill H.R. 3221, moving the United States toward greater energy
independence and security, developing innovative new technologies,
reducing carbon emissions, creating green jobs, protecting consumers,
increasing clean renewable energy production, and modernizing our
energy infrastructure, and to amend the Internal Revenue Code of 1986
to provide tax incentives for the production of renewable energy and
energy conservation; which was ordered to lie on the table; as follows:

On page 82, between lines 7 and 8, insert the following:

SEC. 605. RECYCLING OF TAX-EXEMPT DEBT FOR FINANCING
RESIDENTIAL RENTAL PROJECTS.

(a) In General.--Section 146(i) of the Internal Revenue
Code of 1986 (relating to treatment of refunding issues) is
amended by adding at the end the following new paragraph:
``(6) Treatment of certain residential rental project bonds
as refunding bonds irrespective of obligor.--
``(A) In general.--Subject to subparagraph (B), if within 6
months after receipt of a repayment of a conduit loan used to
finance a project described in 142(d) such repayment is used
to provide a new conduit loan for any project so described,
any bond which is issued to refinance the issue financing the
original conduit loan shall be treated as a refunding issue
to the extent the principal amount of such refunding issue
does not exceed the principal amount of the bonds refunded.
``(B) Limitations.--Subparagraph (A) shall apply to only
one refunding of the original issue and only if--
``(i) the refunding issue is issued not later than the
earlier of--

``(I) the date which is 4 years after the date on which the
original issue was issued, or
``(II) December 31, 2010,

``(ii) the latest maturity date of any bond of the
refunding issue is not later than 34 years after the date on
which the refunded bond was issued, and
``(iii) the refunding issue shall have been approved in
accordance with section 147(f) prior to the issuance of the
refunding issue.''.
(b) Conforming Amendment.--Clause (ii) of section
42(h)(4)(A) of the Internal Revenue Code of 1986 (relating to
credits for buildings financed by tax-exempt bonds subject to
volume cap not taken into account) is amended by inserting
``or such financing is refunded as described in section
146(i)(6)'' after ``provide such financing''.
(c) Effective Date.--The amendments made by this section
shall apply to repayments of conduit loans received after the
date of the enactment of this Act.
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