[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 731 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 731

 To amend the Internal Revenue Code of 1986 to permit the interest on 
 water, waste, and essential community facilities loans guaranteed by 
             the Secretary of Agriculture to be tax-exempt.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 1997

Mr. Poshard (for himself and Mr. Goode) 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 permit the interest on 
 water, waste, and essential community facilities loans guaranteed by 
             the Secretary of Agriculture to be tax-exempt.

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

SECTION 1. WATER, WASTE, AND ESSENTIAL COMMUNITY FACILITIES LOANS 
              GUARANTEED BY SECRETARY OF AGRICULTURE TO BE TAX-EXEMPT.

    (a) In General.--Paragraph (3) of section 149(b) of the Internal 
Revenue Code of 1986 (relating to federally guaranteed bond is not tax 
exempt) is amended by adding at the end the following new subparagraph:
                    ``(E) Exception for water, waste, and essential 
                community facilities loans guaranteed by secretary of 
                agriculture.--A bond issued for a purpose described in 
                paragraph (1) of section 306(a) of the Consolidated 
                Farm and Rural Development Act (as in effect on the 
                date of the enactment of this subparagraph) shall not 
                be treated as federally guaranteed by reason of any 
                guarantee by the Secretary of Agriculture under section 
                309(h) of such Act.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued after the date of the enactment of this 
Act.
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