[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 840 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 840

To amend the Internal Revenue Code of 1986 to disregard certain amounts 
 of capital expenditures in applying $10,000,000 limit on such issues, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 1997

   Mr. English of Pennsylvania (for himself, Mr. Calvert, Mr. Fox of 
   Pennsylvania, Mr. Holden, Mr. Frost, Mr. Mascara, and Mr. Fattah) 
 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 disregard certain amounts 
 of capital expenditures in applying $10,000,000 limit on such issues, 
                        and for other purposes.

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

SECTION 1. $10,000,000 OF CAPITAL EXPENDITURES DISREGARDED IN APPLYING 
              $10,000,000 LIMITATION ON FACE AMOUNT OF QUALIFIED SMALL 
              ISSUE BONDS.

    (a) In General.--Subparagraph (A) of section 144(a)(4) of the 
Internal Revenue Code of 1986 (relating to $10,000,000 limit in certain 
cases) is amended by adding at the end the following new flush 
sentence:
                ``Capital expenditures which would (but for this 
                sentence) be taken into account under clause (ii) shall 
                be taken into account only to the extent such 
                expenditures exceed $10,000,000.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to--
            (1) obligations issued after the date of the enactment of 
        this Act, and
            (2) capital expenditures made after such date with respect 
        to obligations issued on or before such date.

SEC. 2. LIMITATION ON LAND ACQUISITION NOT TO APPLY TO QUALIFIED SMALL 
              ISSUE BONDS.

    (a) In General.--Subsection (c) of section 147 of the Internal 
Revenue Code of 1986 (relating to limitation on use for land 
acquisition) is amended by adding at the end the following new 
paragraph:
            ``(4) Exception for qualified small issue bonds.--Paragraph 
        (1)(A) shall not apply to any qualified small issue bond.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 3. REPEAL OF PERCENTAGE LIMITATION ON DIRECTLY RELATED AND 
              ANCILLARY FACILITIES WHICH MAY BE FINANCED BY QUALIFIED 
              SMALL ISSUE BONDS.

    (a) In General.--The last sentence of section 144(a)(12)(C) of the 
Internal Revenue Code of 1986 (defining manufacturing property) is 
amended by striking ``if--'' and all that follows and inserting ``if 
such facilities are located on the same site as the manufacturing 
facility.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 4. INCREASE IN VOLUME CAP ON PRIVATE ACTIVITY BONDS.

    (a) In General.--Subsection (d) of section 146 of the Internal 
Revenue Code of 1986 (relating to State ceiling) is amended--
            (1) by striking paragraph (2),
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively, and
            (3) by striking ``$250,000,000'' in paragraph(1)(B) and 
        inserting ``$150,000,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to calendars years after 1996.
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