[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3259 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3259

To amend the Internal Revenue Code of 1986 to provide a rehabilitation 
  credit for certain expenditures to rehabilitate historic performing 
                            arts facilities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 27 (legislative day, September 22), 2000

 Mr. Moynihan 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 a rehabilitation 
  credit for certain expenditures to rehabilitate historic performing 
                            arts facilities.

    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 ``Historic Performing Arts Facility 
Rehabilitation Act''.

SEC. 2. HISTORIC PERFORMING ARTS FACILITY REHABILITATION CREDIT.

    (a) In General.--Section 47 of the Internal Revenue Code of 1986 
(relating to rehabilitation credit) is amended by adding at the end the 
following new subsection.
    ``(e) Historic Performing Arts Facility Rehabilitation Credit.--
            ``(1) In general.--In lieu of the credit otherwise 
        allowable under this section, a qualified performing arts 
        institution shall receive an historic rehabilitation credit 
        certificate.
            ``(2) Historic rehabilitation credit certificate.--For 
        purposes of this subsection, the term `historic rehabilitation 
        credit certificate' means a certificate--
                    ``(A) issued to a qualified performing arts 
                institution, in accordance with procedures prescribed 
                by the Secretary, with respect to a certified 
                rehabilitation,
                    ``(B) the face amount of which shall be equal to 
                the credit which would (but for this subsection) be 
                allowable under subsection (a) to the taxpayer with 
                respect to such rehabilitation,
                    ``(C) which may only be transferred by the 
                qualified performing arts institution to a lending 
                institution (including a non-depository institution) in 
                connection with a loan--
                            ``(i) the proceeds of which may not be used 
                        for any purpose other than the rehabilitation 
                        of the historic performing arts facility to 
                        which the credit relates, and
                            ``(ii) the duration of which shall not 
                        exceed the anticipated duration of the 
                        rehabilitation, and
                    ``(D) in exchange for which such lending 
                institution provides the qualified performing arts 
                institution--
                            ``(i) a reduction in the rate of interest 
                        on the loan which results in interest payment 
                        reductions which are substantially equivalent 
                        on a present value basis to the face amount of 
                        such certificate, and
                            ``(ii) to the extent of any amount of such 
                        certificate not applied under clause (i), a 
                        reduction in the principal amount of the loan 
                        in an amount substantially equivalent on a 
                        present value basis to the face amount of such 
                        certificate so applied.
            ``(3) Use of historic rehabilitation credit certificate by 
        lender.--The amount of credit specified in the certificate and 
        transferred to the lender shall be allowed to the lender only 
        to offset the regular tax (as defined in section 55(c)) of such 
        lender. The lender may carryforward all unused amounts under 
        this subsection until exhausted.
            ``(4) Historic rehabilitation credit not treated as 
        unrelated business taxable income.--Notwithstanding any other 
        provision of law, no benefit accruing to the qualified 
        performing arts institution through the use of an historic 
        rehabilitation credit certificate shall be treated as unrelated 
        business taxable income for purposes of this title.''.
    (b) Historic Performing Arts Facility.--Section 47(c) of the 
Internal Revenue Code of 1986 (relating to definitions) is amended by 
adding at the end the following new paragraph:
            ``(4) Historic performing arts facility.--
                    ``(A) In general.--The term `historic performing 
                arts facility' means any building and related 
                improvements (including public plazas and concourses, 
                vehicular and pedestrian passageways, mechanical 
                installations, garages, and other related structures 
                and facilities) which is--
                            ``(i) a certified historic structure,
                            ``(ii) owned by, or leased or licensed to, 
                        one or more qualified performing arts 
                        institutions, and
                            ``(iii) used for--
                                    ``(I) the presentation or 
                                production of the performing arts,
                                    ``(II) education, training, or the 
                                presentation of educational programs in 
                                the performing arts,
                                    ``(III) research in, archiving of 
                                records pertaining to, or operation of 
                                public libraries for the performing 
                                arts, or
                                    ``(IV) office and other functions 
                                related to an activity described in 
                                subclause (I), (II), or (III).
                    ``(B) Qualified performing arts institution.--The 
                term `qualified performing arts institution' means any 
                organization described in section 501(c) and exempt 
                from tax under section 501(a) which is organized and 
                operated to present, produce, advance, teach or 
                otherwise facilitate the performing arts.
                    ``(C) Performing arts.--The term `performing arts' 
                means the performance, playing, presentation, 
                dissemination, recording, rehearsal, or creation of any 
                type of music, theater, drama, dance, opera, cabaret, 
                film, video, radio, or other art forms.''.
    (c) Qualified Rehabilitation Expenses.--Section 47(c)(2)(B) of the 
Internal Revenue Code of 1986 (relating to certain expenditures not 
included) is amended by adding at the end the following new clause:
                            ``(vii) Special rules for qualified 
                        performing arts institutions.--
                                    ``(I) Grants.--Any expenditure by a 
                                qualified performing arts institution 
                                to rehabilitate an historic performing 
                                arts facility to the extent such 
                                expenditure is funded by any grant from 
                                a Federal, State, or local government 
                                in connection with the rehabilitation 
                                of such facility.
                                    ``(II) Expenditure of lessee.--For 
                                purposes of clause (vi), a qualified 
                                performing arts institution that leases 
                                or licenses an historic performing arts 
                                facility from a person other than a 
                                qualified performing arts institution 
                                shall be treated as the owner of the 
                                facility.
                                    ``(III) Enlargement; tax-exempt 
                                property.--In the case of any 
                                expenditure in connection with an 
                                historic performing arts facility, 
                                clauses (iii) and (v) shall not 
                                apply.''.
    (d) Rehabilitation Credit for Property Used by Certain Tax Exempt 
Organizations.--Section 50(b)(3) of the Internal Revenue Code of 1986 
(relating to property used by certain tax-exempt organizations) is 
amended by adding at the end the following new sentence: ``This 
paragraph shall not apply in the case of a rehabilitation credit 
determined under section 47(a) with respect to qualified rehabilitation 
expenditures (as defined in section 47(c)) paid or incurred with 
respect to an historic performing arts facility (as so defined).''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to a rehabilitation the physical work on which 
begins after the date of the enactment of this Act.
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