[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1892 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1892

  To amend the Internal Revenue Code of 1986 to provide assistance to 
   homeowners and small businesses to repair Formosan termite damage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 1999

  Mr. Jefferson (for himself, Mr. Baker, Mr. Tauzin, Mr. McCrery, Mr. 
 John, Mr. Cooksey, and Mrs. Meek of Florida) 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 provide assistance to 
   homeowners and small businesses to repair Formosan termite damage.

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

SECTION 1. DEDUCTION FOR INDIVIDUALS FOR LOSSES CAUSED BY FORMOSAN 
              TERMITE DAMAGE.

    (a) Inclusion of Formosan Termite Damage as Casualty Loss.--Section 
165(c)(3) of the Internal Revenue Code of 1986 (relating to limitation 
of deduction of losses of individuals) is amended by inserting 
``Formosan termite damage,'' after ``shipwreck,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1999.

SEC. 2. PROCEEDS OF MORTGAGE REVENUE BONDS ALLOWED FOR LOANS TO 
              HOMEOWNERS TO REPAIR FORMOSAN TERMITE DAMAGE.

    (a) In General.--Section 143(f) of the Internal Revenue Code of 
1986 (relating to income requirements) is amended by adding at the end 
the following new paragraph:
            ``(7) Exception for qualified home improvement loans.--
        Paragraph (1) shall not apply with respect to any qualified 
        home improvement loan used for the repair of Formosan termite 
        damage.''.
    (b) Amounts up to $10,000 Used for Termite Repair Not Included in 
Calculating Limit for Home Improvement Loan.--Paragraph (4) of section 
143(k) of such Code (defining qualified home improvement loan) is 
amended by adding at the end the following flush sentence: ``In 
calculating the $15,000 amount, any amount up to $10,000 used for the 
repair of Formosan termite damage shall not be taken into account.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 3. PROCEEDS OF SMALL ISSUE BONDS ALLOWED FOR LOANS TO LANDLORDS 
              AND SMALL BUSINESSES TO REPAIR FORMOSAN TERMITE DAMAGE.

    (a) In General.--Subparagraph (B) of section 144(a)(12) of the 
Internal Revenue Code of 1986 (relating to bonds to finance 
manufacturing facilities and farm property) is amended by striking 
``or'' at the end of clause (i), by striking the period and inserting 
``, or'' at the end of clause (ii), and by adding at the end the 
following new clause:
                            ``(iii) any Formosan termite damage repair 
                        loan.''.
    (b) Definition of Formosan Termite Damage Repair Loan.--Section 
144(a)(12) of such Code is amended by adding at the end the following 
new subparagraph:
                    ``(D) Formosan termite damage repair loan.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `Formosan 
                        termite damage repair loan' means the financing 
                        of repairs on or in connection with residential 
                        rental property or property used by a small 
                        business by the owner thereof, for damage 
                        caused by Formosan termites.
                            ``(ii) Small businesses covered.--The term 
                        `small business' means, for any taxable year, 
                        any corporation or partnership if the entity 
                        meets the $5,000,000 gross receipts test of 
                        section 448(c) for the prior taxable year.''.
    (c) Amounts Used in Formosan Termite Repair Not Included in 
Calculating Limit on Amount of Bond.--Clause (i) of section 
144(a)(4)(C) of such Code (relating to certain capital expenditures not 
taken into account) is amended by inserting ``Formosan termite 
damage,'' after ``storm,''.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 4. EXCEPTION FROM VOLUME CAP FOR PRIVATE ACTIVITY BONDS USED TO 
              REPAIR FORMOSAN TERMITE DAMAGE.

    (a) Exception From Volume Cap.--Section 146(g) of the Internal 
Revenue Code of 1986 (relating to exception for certain bonds) is 
amended by striking ``and'' at the end of paragraph (3), by striking 
the period at the end of paragraph (4) and inserting a comma, and by 
adding after paragraph (4) the following new paragraphs:
            ``(5) any qualified mortgage bond if 95 percent or more of 
        the net proceeds of the bond are to be used to provide home 
        improvement loans for the repair of Formosan termite damage, 
        and
            ``(6) any qualified small issue bond if 95 percent or more 
        of the net proceeds of the bond are to be used to provide 
        Formosan termite damage repair loans (as defined in section 
        144(a)(12)(D)).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 5. EXEMPTION OF CERTAIN BONDS USED TO REPAIR FORMOSAN TERMITE 
              DAMAGE FROM RESTRICTIONS ON DEDUCTION BY FINANCIAL 
              INSTITUTIONS FOR INTEREST.

    (a) In General.--Clause (ii) of section 265(b)(3)(B) of the 
Internal Revenue Code of 1986 (defining qualified tax-exempt 
obligations) is amended by striking ``or'' at the end of subclause (I), 
by redesignating subclause (II) as subclause (IV), and by inserting 
after subclause (I) the following new subclauses:
                                    ``(II) any qualified mortgage bond 
                                if 95 percent or more of the net 
                                proceeds of the bond are to be used to 
                                provide home improvement loans for the 
                                repair of Formosan termite damage,
                                    ``(III) any qualified small issue 
                                bond if 95 percent or more of the net 
                                proceeds of the bond are to be used to 
                                provide Formosan termite damage repair 
                                loans (as defined in section 
                                144(a)(12)(D)), or''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to bonds issued after the date of the enactment of this Act.
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