[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1986 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1986

 To amend the Internal Revenue Code of 1986 to allow the proceeds from 
           bonds to be used for prepayments for natural gas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2001

Mr. Collins (for himself, Mr. Lewis of Georgia, Mr. McCrery, Mr. Shaw, 
Mr. John, Mr. Spratt, Mr. Lucas of Kentucky, Mrs. Thurman, Mr. Lewis of 
    Kentucky, Mr. Foley, Mr. Cooksey, Ms. McKinney, Mr. Tanner, Mr. 
  Whitfield, Mr. Isakson, Mr. Aderholt, Mr. Bryant, Mr. Kingston, Mr. 
    Chambliss, Mr. Linder, and Mr. Deal of Georgia) 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 the proceeds from 
           bonds to be used for prepayments for natural gas.

    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 ``Municipal Utility Natural Gas Supply 
Act Of 2001''.

SEC. 2. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS.

    (a) In General.--Subsection (b) of section 148 of the Internal 
Revenue Code of 1986 (defining higher yielding investments) is amended 
by adding at the end the following new paragraph:
            ``(4) Exception for certain prepayments to ensure natural 
        gas supply.--The term `investment property' shall not include 
        any prepayment for the purpose of obtaining a supply of a 
        natural gas reasonably expected to be used in a business of one 
        or more utilities each of which is owned and operated by a 
        State or local government, any political subdivision or 
        instrumentality thereof, or any governmental unit acting for or 
        on behalf of such a utility.''.
    (b) Private Loan Financing Test Not To Apply to Prepayments for 
Natural Gas.--Paragraph (2) of section 141(c) of such Code (providing 
exceptions to the private loan financing test) is amended by striking 
``or'' at the end of subparagraph (A), by striking the period at the 
end of subparagraph (B) and inserting ``, or'', and by adding at the 
end the following new subparagraph:
                    ``(C) arises from a transaction described in 
                section 148(b)(4).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 1301 of the Tax 
Reform Act of 1986.
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