[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2290 Introduced in Senate (IS)]

  2d Session
                                S. 2290

To amend the Internal Revenue Code of 1986 to clarify the definition of 
                  contribution in aid of construction.


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                   IN THE SENATE OF THE UNITED STATES

                             March 23, 2000

 Mr. Grassley (for himself and Mr. Reid) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to clarify the definition of 
                  contribution in aid of construction.

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

SECTION 1. CLARIFICATION OF CONTRIBUTION IN AID OF CONSTRUCTION.

    (a) In General.--Subparagraph (A) of section 118(c)(3) of the 
Internal Revenue Code of 1986 (relating to definitions) is amended to 
read as follows:
                    ``(A) Contribution in aid of construction.--The 
                term `contribution in aid of construction' shall be 
                defined by regulations prescribed by the Secretary, 
                except that such term--
                            ``(i) shall include amounts paid as 
                        customer connection fees (including amounts 
                        paid to connect the customer's line to or 
                        extend a main water or sewer line), and
                            ``(ii) shall not include amounts paid as 
                        service charges for starting or stopping 
                        services.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the amendments made by section 1613(a) of 
the Small Business Job Protection Act of 1996.
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