[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1199 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1199

    To amend the Internal Revenue Code of 1986 to permit tax-exempt 
            financing of certain transportation facilities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 11 (legislative day, July 10), 1995

 Mrs. Boxer (for herself and Mrs. Feinstein) 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 tax-exempt 
            financing of certain transportation facilities.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAX-EXEMPT FINANCING OF CERTAIN TRANSPORTATION FACILITIES.

    (a) In General.--Subsection (c) of section 142 of the Internal 
Revenue Code of 1986 (relating to exempt facility bonds) is amended--
            (1) by redesignating paragraph (2) as paragraph (3), and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Related transportation facilities.--
                    ``(A) In general.--Transportation facilities 
                (including trackage and related rail facilities, but 
                not rolling stock) shall be treated as facilities 
                described in paragraph (2) of subsection (a) if at 
                least 80 percent of the use of the facilities 
                (determined on an annual basis) is to be in connection 
                with the transport of cargo to or from a facility 
                described in such paragraph (without regard to this 
                paragraph).
                    ``(B) Governmental ownership requirement.--In the 
                case of transportation facilities described in 
                subparagraph (A), subsection (b)(1) shall apply without 
                regard to subparagraph (B)(ii) thereof.''
    (b) Change in Use.--Section 150(b) of the Internal Revenue Code of 
1986 (relating to change in use of facilities financed with tax-exempt 
private activity bonds) is amended by adding at the end the following 
new paragraph:
            ``(7) Certain transportation facilities.--In the case of 
        any transportation facility--
                    ``(A) with respect to which financing is provided 
                from the proceeds of any private activity bond which, 
                when issued, purported to be a tax-exempt bond 
                described in paragraph (2) of section 142(a) by reason 
                of section 142(c)(2), and
                    ``(B) with respect to which the requirements of 
                section 142(c)(2) are not met,
        no deduction shall be allowed under this chapter for interest 
        on such financing which accrues during the period beginning on 
        the 1st day of the taxable year in which such facility fails to 
        meet such requirements and ending on the date such facility 
        meets such requirements.''
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.
                                 <all>