[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4314 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4314

 To amend the Internal Revenue Code of 1986 to allow a credit against 
    income tax to holders of bonds issued to finance land and water 
 reclamation for the anthracite region of Pennsylvania, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2000

 Mr. Kanjorski (for himself, Mr. Gekas, Mr. Holden, and Mr. Sherwood) 
 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 allow a credit against 
    income tax to holders of bonds issued to finance land and water 
 reclamation for the anthracite region of Pennsylvania, 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. SHORT TITLE.

    This Act may be cited as the ``Anthracite Region Redevelopment Act 
of 2000''.

SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ANTHRACITE REGION REDEVELOPMENT 
              BONDS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30B. CREDIT TO HOLDERS OF QUALIFIED ANTHRACITE REGION 
              REDEVELOPMENT BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified anthracite region redevelopment bond on a credit allowance 
date of such bond which occurs during the taxable year, there shall be 
allowed as a credit against the tax imposed by this chapter for such 
taxable year an amount equal to the sum of the credits determined under 
subsection (b) with respect to credit allowance dates during such year 
on which the taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified anthracite region redevelopment bond is 25 
        percent of the annual credit determined with respect to such 
        bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified anthracite region redevelopment bond 
        is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (1), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of issuance of the issue) on outstanding long-term 
        corporate debt obligations (determined under regulations 
        prescribed by the Secretary).
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Qualified Anthracite Region Redevelopment Bond.--For purposes 
of this section--
            ``(1) In general.--The term `qualified anthracite region 
        redevelopment bond' means any bond issued as part of an issue 
        if--
                    ``(A) the issuer is an approved special purpose 
                entity,
                    ``(B) all of the net proceeds of the issue are 
                deposited into either--
                            ``(i) an approved segregated program fund, 
                        or
                            ``(ii) a sinking fund for payment of 
                        principal on the bonds at maturity,
                    ``(C) the issuer designates such bond for purposes 
                of this section, and
                    ``(D) the term of each bond which is part of such 
                issue does not exceed 30 years.
        Not more than \1/6\ of the net proceeds of an issue may be 
        deposited into a sinking fund referred to in subparagraph 
        (B)(ii).
            ``(2) Limitation on amount of bonds designated.--The 
        maximum aggregate face amount of bonds which may be designated 
        under paragraph (1) shall not exceed $1,200,000,000.
            ``(3) Approved special purpose entity.--The term `approved 
        special purpose entity' means a State or local governmental 
        entity, or an entity described in section 501(c) and exempt 
        from tax under section 501(a), if--
                    ``(A) such entity is established and operated 
                exclusively to carry out qualified purposes,
                    ``(B) such entity has a comprehensive plan to 
                restore and redevelop abandoned mine land in the 
                Anthracite Region, and
                    ``(C) such entity and plan are approved by the 
                Administrator of the Environmental Protection Agency.
            ``(4) Approved segregated program fund.--The term `approved 
        segregated program fund' means any segregated fund the amounts 
        in which may be used only for qualified purposes, but only if 
        such fund has safeguards approved by such Administrator to 
        assure that such amounts are only used for such purposes.
    ``(d) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under part 
                IV of subchapter A (other than this section and subpart 
                C thereof, relating to refundable credits).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Anthracite region.--The term `Anthracite Region' 
        means the area in the State of Pennsylvania comprised of the 
        following counties: Luzerne, Lackawanna, Susquehanna, Wayne, 
        Wyoming, Sullivan, Columbia, Carbon, Schuylkill, 
        Northumberland, Lebanon, and Dauphin.
            ``(2) Qualified purpose.--The term `qualified purpose' 
        means, with respect to any qualified anthracite region 
        redevelopment bond--
                    ``(A) the purchase, restoration, and redevelopment 
                of abandoned mine land and other real, personal, and 
                mixed property in the Anthracite Region in 
                Pennsylvania,
                    ``(B) the cleanup of waterways and their 
                tributaries, both surface and subsurface in such region 
                from acid mine drainage and other pollution,
                    ``(C) the provision of financial and technical 
                assistance for infrastructure construction and 
                upgrading water and sewer systems in such region,
                    ``(D) research and development,
                    ``(E) other environmental and economic development 
                purposes in such region, and
                    ``(F) such other purposes as are set forth in the 
                comprehensive plan prepared by the issuer and approved 
                by the Administrator of the Environmental Protection 
                Agency.
            ``(3) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(4) Bond.--The term `bond' includes any obligation.
    ``(f) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (d)) and the amount so 
included shall be treated as interest income.
    ``(g) Bonds Held by Regulated Investment Companies.--If any 
qualified anthracite region redevelopment bond is held by a regulated 
investment company, the credit determined under subsection (a) shall be 
allowed to shareholders of such company under procedures prescribed by 
the Secretary.
    ``(h) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified anthracite region 
        redevelopment bond and the entitlement to the credit under this 
        section with respect to such bond. In case of any such 
        separation, the credit under this section shall be allowed to 
        the person who on the credit allowance date holds the 
        instrument evidencing the entitlement to the credit and not to 
        the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified anthracite region redevelopment bond as 
        if it were a stripped bond and to the credit under this section 
        as if it were a stripped coupon.
    ``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of 
sections 6654 and 6655, the credit allowed by this section to a 
taxpayer by reason of holding a qualified anthracite region 
redevelopment bond on a credit allowance date shall be treated as if it 
were a payment of estimated tax made by the taxpayer on such date.
    ``(j) Credit May Be Transferred.--Nothing in any law or rule of law 
shall be construed to limit the transferability of the credit allowed 
by this section through sale and repurchase agreements.
    ``(k) Reporting.--The issuer shall submit reports similar to the 
reports required under section 149(e).
    ``(l) Termination.--This section shall not apply to any bond issued 
more than 10 years after the date that the first qualified anthracite 
region redevelopment bond is issued.''
    (b) Reporting.--Subsection (d) of section 6049 of such Code 
(relating to returns regarding payments of interest) is amended by 
adding at the end the following new paragraph:
            ``(8) Reporting of credit on qualified anthracite region 
        redevelopment bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 30B(f) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 30B(e)(3)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''
    (c) Conforming Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 30B. Credit to holders of 
                                        qualified public anthracite 
                                        region redevelopment bonds.''
    (d) Approval of Bonds, Etc., by Administrator of the Environmental 
Protection Agency.--The Administrator of the Environmental Protection 
Agency shall act on any request for an approval required by section 30B 
of the Internal Revenue Code of 1986 (as added by this section) not 
later than 30 days after the date such request is submitted to such 
Administrator.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2000.
                                 <all>