[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2960 Introduced in House (IH)]

  2d Session
                                H. R. 2960

  To amend the Internal Revenue Code of 1986 to provide that amounts 
    derived from Federal grants in connection with revolving funds 
established in accordance with the Federal Water Pollution Control Act 
will not be treated as investment property for purposes of section 148 
                             of such Code.


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                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 1996

 Mr. Zimmer (for himself and Mr. Blute) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide that amounts 
    derived from Federal grants in connection with revolving funds 
established in accordance with the Federal Water Pollution Control Act 
will not be treated as investment property for purposes of section 148 
                             of such Code.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF FEDERAL GRANTS IN CONNECTION WITH REVOLVING 
              FUNDS ESTABLISHED IN ACCORDANCE WITH FEDERAL WATER 
              POLLUTION CONTROL ACT.

    (a) In General.--Subsection (b) of section 148 of the Internal 
Revenue Code of 1986 (relating to higher yielding investments) is 
amended by adding at the end the following new paragraph:
            ``(4) Certain federal grants not treated as investment 
        property.--In no event shall the term `investment property' 
        include any amount derived from any Federal grant made in 
        connection with any revolving fund established in accordance 
        with title VI of the Federal Water Pollution Control Act (or 
        any subsequent reauthorization thereof).''
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.
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