[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 614 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 614

 To amend the Internal Revenue Code of 1986 to provide flexibility in 
    the use of unused volume cap for tax-exempt bonds, to provide a 
    $20,000,000 limit on small issue bonds, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 17, 1997

Mr. Breaux (for himself and Mr. D'Amato) 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 provide flexibility in 
    the use of unused volume cap for tax-exempt bonds, to provide a 
    $20,000,000 limit on small issue bonds, 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. UNLIMITED 3-YEAR CARRYFORWARD OF UNUSED VOLUME CAP FOR 
              BONDS, INCLUDING SMALL ISSUE BONDS.

    (a) In General.--Paragraphs (1) and (2) of section 146(d) of the 
Internal Revenue Code of 1986 (relating to State ceiling) are amended 
to read as follows:
            ``(1) In general.--The State ceiling applicable to any 
        State for any calendar year is an amount equal to the sum of--
                    ``(A) the current year State ceiling of such State, 
                plus
                    ``(B) the unused State ceiling (if any) of such 
                State for the preceding 3 calendar years.
            ``(2) Current year state ceiling.--For purposes of 
        paragraph (1)--
                    ``(A) In General.--The current year State ceiling 
                of any State for any calendar year is an amount equal 
                to the greater of--
                            ``(i) an amount equal to $50 multiplied by 
                        the State population, or
                            ``(ii) $150,000,000.
                    ``(B) Application to possessions.--Clause (ii) of 
                subparagraph (A) shall not apply to any possession of 
                the United States.
            ``(3) Unused state ceiling.--For purposes of paragraph (1), 
        the unused State ceiling of any State for any calendar year is 
        the excess (if any) of the State ceiling of such State for such 
        calendar year over the aggregate State ceiling allocated by the 
        State for such calendar year.
            ``(4) Rules of application.--For purposes of paragraph (1), 
        with respect to any calendar year--
                    ``(A) the current year State ceiling shall be fully 
                allocated before the allocation of the unused State 
                ceiling, and
                    ``(B) unused State ceiling shall be allocated in 
                the order of the calendar years in which the unused 
                State ceiling arose.''.
    (b) Conforming Amendment.--Section 146(f)(1)(A) of the Internal 
Revenue Code of 1986 (relating to elective carryforward of unused 
limitation for specified purpose) is amended by inserting ``and before 
1998'' after ``after 1985''.
    (c) Effective Date; Special Election.--
            (1) Effective date.--The amendments made by this section 
        apply to State ceiling for calendar years after 1997.
            (2) Special election.--Notwithstanding section 146(f) of 
        the Internal Revenue Code of 1986, within 120 days after the 
        date of enactment of this Act, the person or entity responsible 
        for allocating the State ceiling may irrevocably elect to treat 
        (with the consent of each allocation recipient) such portion of 
        the carryforwards elected under section 146(f) of such Code for 
        the 3 calendar years ending in 1997 as unused State ceiling 
        under section 146(d)(1) of such Code (as amended by this 
        section).

SEC. 2. $20,000,000 CAPITAL EXPENDITURE LIMIT ON 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 inserting ``in excess of $10,000,000'' after 
``amount of capital expenditures''.
    (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.
                                 <all>