[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 632 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 632

    To amend the Internal Revenue Code of 1986 with respect to the 
 eligibility of veterans for mortgage revenue bond financing, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 1997

  Mr. Kohl (for himself and Mr. Wyden) 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 with respect to the 
 eligibility of veterans for mortgage revenue bond financing, 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. ELIGIBILITY OF VETERANS FOR MORTGAGE REVENUE BONDS 
              DETERMINED BY STATES.

    (a) In General.--Paragraph (4) of section 143(l) of the Internal 
Revenue Code of 1986 (defining qualified veteran) is redesignated as 
paragraph (6) and amended to read as follows:
            ``(6) Qualified veteran.--For purposes of this subsection, 
        the term ``qualified veteran'' means any veteran--
                    ``(A) who meets such requirements as may be imposed 
                by the State law pursuant to which qualified veterans' 
                mortgage bonds are issued,
                    ``(B) who applied for the financing before the date 
                30 years after the last date on which such veteran left 
                active service, and
                    ``(C) in the case of financing provided by the 
                proceeds of bonds issued during the period beginning 
                July 19, 1984, and ending June 30, 1997, who served on 
                active duty at some time before January l, 1977.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 2. STATE CAP RESTRICTIONS.

    (a) In General.--Section 143(l) of the Internal Revenue Code of 
1986 (relating to additional requirements for qualified veterans' 
mortgage bonds), as amended by section 1(a), is amended by inserting 
after paragraph (3) the following new paragraph:
            ``(4) Subcap restriction.--
                    ``(A) In general.--An issue meets the requirements 
                of this paragraph only if the amount of bonds issued 
                pursuant thereto that is to be used to provide 
                financing to mortgagors who have not served on active 
                duty at some time before January 1, 1977, when added to 
                the amount of the aggregate qualified veterans' 
                mortgage bonds previously issued by the State during 
                the calendar year that is to be so used, does not 
                exceed the subcap amount.
                    ``(B) Subcap amount.--
                            ``(i) In general.--The subcap amount for 
                        any calendar year is an amount equal to the 
                        applicable percentage of the State veterans 
                        limit for such year.
                            ``(ii) Applicable percentage.--For purposes 
                        of clause (i), the applicable percentage shall 
                        be determined under the following table:

                                                             Applicable
``Calendar year:                                            Percentage:
    1998..........................................                  10 
    1999..........................................                  20 
    2000..........................................                  30 
    2001..........................................                  40 
    2002 and thereafter...........................                50.''
    (b) Restriction on Overall State Cap.--Paragraph (3)(B) of section 
143(l) of such Code (relating to State veterans limit) is amended by 
adding at the end the following flush sentence:
                ``But in no event shall the State veterans limit exceed 
                $340,000,000 for any calendar year after 1998.''
    (c) Conforming Amendment.--The matter preceding paragraph (1) of 
section 143(l) of such Code is amended by striking ``and (3)'' and 
inserting ``, (3), and (4)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 1997.
                                 <all>