[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1917 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1917
To amend the Internal Revenue Code of 1986 to permit the issuance of
tax-exempt bonds for certain air and water pollution control
facilities, and to provide that the volume cap for private activity
bonds shall not apply to bonds for facilities for the furnishing of
water, sewage facilities, and air or water pollution control
facilities.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 21, 2003
Mrs. Hutchison introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to permit the issuance of
tax-exempt bonds for certain air and water pollution control
facilities, and to provide that the volume cap for private activity
bonds shall not apply to bonds for facilities for the furnishing of
water, sewage facilities, and air or water pollution control
facilities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Clean Air and Water Investment and
Infrastructure Act''.
SEC. 2. TAX-EXEMPT BONDS FOR AIR AND WATER POLLUTION CONTROL
FACILITIES.
(a) In General.--Subsection (a) of section 142 of the Internal
Revenue Code of 1986 (defining exempt facility bond) is amended by
striking ``or'' at the end of paragraph (12), by striking the period at
the end of paragraph (13) and inserting ``, or'', and by adding at the
end the following new paragraph:
``(14) air or water pollution control facilities.''.
(b) Air or Water Pollution Control Facilities.--Section 142 of the
Internal Revenue Code of 1986 (relating to exempt facility bond) is
amended by adding at the end the following new subsection:
``(l) Pollution Control Facilities Acquired by Regional Pollution
Control Authorities.--
``(1) In general.--For purposes of paragraph (14) of
subsection (a), a bond shall be treated as described in such
paragraph if it is part of an issue substantially all of the
proceeds of which are used by a qualified regional pollution
control authority to acquire existing air or water pollution
control facilities which the authority itself will operate in
order to maintain or improve the control of pollutants.
``(2) Restrictions.--Paragraph (1) shall apply only if--
``(A) the amount paid, directly or indirectly, for
a facility does not exceed the fair market value of the
facility,
``(B) the fees or charges imposed, directly or
indirectly, on the seller for any use of the facility
after the sale of such facility are not less than the
amounts that would be charged if the facility were
financed with obligations the interest on which is not
exempt from tax, and
``(C) no person other than the qualified regional
pollution control authority is considered after the
sale as the owner of the facility for the purposes of
Federal income taxes.
``(3) Qualified regional pollution control authority.--For
purposes of this subsection, the term `qualified regional
pollution control authority' means an authority which--
``(A) is a political subdivision created by State
law to control air or water pollution,
``(B) has within its jurisdictional boundaries all
or part of at least 2 counties (or equivalent political
subdivisions), and
``(C) operates air or water pollution control
facilities.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 3. EXEMPTION FROM VOLUME CAP FOR FACILITIES FURNISHING WATER,
SEWAGE FACILITIES, AND AIR OR WATER POLLUTION CONTROL
FACILITIES.
(a) In General.--Paragraph (3) of section 146(g) of the Internal
Revenue Code of 1986 (relating to exception for certain bonds) is
amended--
(1) by inserting ``(4), (5),'' after ``(2),'',
(2) by striking ``or (13)'' and inserting ``(13), or
(14)'',
(3) by inserting ``facilities for the furnishing of water,
sewage facilities,'' after ``wharves,'',
(4) by striking ``and'' before ``qualified'', and
(5) by inserting ``, and air or water pollution control
facilities'' after ``educational facilities''.
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
<all>