[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 250 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 250

To amend the Internal Revenue Code of 1986 to allow a credit to holders 
      of qualified bonds issued by Amtrak, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 6, 2001

  Mr. Biden (for himself, Mrs. Hutchison, Mr. Lott, Mr. Daschle, Mr. 
  Kerry, Mr. Baucus, Mrs. Boxer, Mr. Breaux, Mr. Burns, Mr. Byrd, Mr. 
    Carper, Mr. Chafee, Mr. Cleland, Mrs. Clinton, Mr. Cochran, Ms. 
Collins, Mr. Corzine, Mr. DeWine, Mr. Dodd, Mr. Dorgan, Mr. Durbin, Mr. 
   Edwards, Mr. Feingold, Mrs. Feinstein, Mr. Graham, Mr. Helms, Mr. 
Hollings, Mr. Inouye, Mr. Jeffords, Mr. Johnson, Mr. Kennedy, Mr. Kohl, 
 Ms. Landrieu, Mr. Leahy, Mr. Levin, Mr. Lieberman, Mrs. Lincoln, Ms. 
   Mikulski, Mr. Miller, Mrs. Murray, Mr. Reid, Mr. Rockefeller, Mr. 
   Santorum, Mr. Sarbanes, Mr. Schumer, Ms. Snowe, Mr. Specter, Ms. 
Stabenow, Mr. Torricelli, Mr. Warner, and Mr. Wellstone) 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 allow a credit to holders 
      of qualified bonds issued by Amtrak, 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; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``High-Speed Rail 
Investment Act of 2001''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 (relating to 
credits against tax) is amended by adding at the end the following new 
subpart:

``Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak Bonds

                              ``Sec. 54. Credit to holders of qualified 
                                        Amtrak bonds.

``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified Amtrak 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 Amtrak 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 Amtrak 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 
        (2), 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 sale 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) 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 this 
                part (other than this subpart and subpart C).
            ``(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.
    ``(d) Qualified Amtrak Bond.--For purposes of this part--
            ``(1) In general.--The term `qualified Amtrak bond' means 
        any bond issued as part of an issue if--
                    ``(A) 95 percent or more of the proceeds of such 
                issue are to be used for any qualified project,
                    ``(B) the bond is issued by the National Railroad 
                Passenger Corporation,
                    ``(C) the issuer--
                            ``(i) designates such bond for purposes of 
                        this section,
                            ``(ii) certifies that it meets the State 
                        contribution requirement of paragraph (3) with 
                        respect to such project and that it has 
                        received the required State contribution 
                        payment before the issuance of such bond,
                            ``(iii) certifies that it has obtained the 
                        written approval of the Secretary of 
                        Transportation for such project, including a 
                        finding by the Inspector General of the 
                        Department of Transportation that there is a 
                        reasonable likelihood that the proposed program 
                        will result in a positive incremental financial 
                        contribution to the National Railroad Passenger 
                        Corporation and that the investment evaluation 
process includes a return on investment, leveraging of funds (including 
State capital and operating contributions), cost effectiveness, safety 
improvement, mobility improvement, and feasibility, and
                            ``(iv) certifies that it has obtained 
                        written certification by the Secretary, after 
                        consultation with the Secretary of 
                        Transportation, that, in the case of a 
                        qualified project which results in passenger 
                        trains operating at speeds greater than 79 
                        miles per hour, the issuer has entered into a 
                        written agreement with the rail carriers (as 
                        defined in section 24102 of title 49, United 
                        States Code) the properties of which are to be 
                        improved by such project as to the scope and 
                        estimated cost of such project and the impact 
                        on freight capacity of such rail carriers; 
                        Provided that the National Railroad Passenger 
                        Corporation shall not exercise its rights under 
                        section 24308(a) of such title 49 to resolve 
                        disputes with respect to such project or the 
                        cost of such project,
                    ``(D) the term of each bond which is part of such 
                issue does not exceed 20 years,
                    ``(E) the payment of principal with respect to such 
                bond is the obligation of the National Railroad 
                Passenger Corporation (regardless of the establishment 
                of the trust account under subsection (j)), and
                    ``(F) the issue meets the requirements of 
                subsection (h).
            ``(2) Treatment of changes in use.--For purposes of 
        paragraph (1)(A), the proceeds of an issue shall not be treated 
        as used for a qualified project to the extent that the issuer 
        takes any action within its control which causes such proceeds 
        not to be used for a qualified project. The Secretary shall 
        prescribe regulations specifying remedial actions that may be 
        taken (including conditions to taking such remedial actions) to 
        prevent an action described in the preceding sentence from 
        causing a bond to fail to be a qualified Amtrak bond.
            ``(3) State contribution requirement.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(C)(ii), the State contribution requirement of this 
                paragraph is met with respect to any qualified project 
                if the National Railroad Passenger Corporation has a 
                written binding commitment from 1 or more States to 
                make matching contributions not later than the date of 
                issuance of the issue of not less than 20 percent of 
                the cost of the qualified project. State matching 
                contributions may include privately funded 
                contributions.
                    ``(B) Use of state matching contributions.--The 
                matching contributions described in subparagraph (A) 
                with respect to each qualified project shall be used--
                            ``(i) as necessary to redeem bonds which 
                        are a part of the issue with respect to such 
                        project, and
                            ``(ii) in the case of any remaining amount, 
                        at the election of the National Railroad 
                        Passenger Corporation and the contributing 
                        State--
                                    ``(I) to fund a qualified project,
                                    ``(II) to redeem other qualified 
                                Amtrak bonds, or
                                    ``(III) for the purposes of 
                                subclauses (I) and (II).
                    ``(C) State contribution requirement for certain 
                qualified projects.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, with respect to any 
                        qualified project on the high-speed rail 
                        corridors designated under section 104(d)(2) of 
                        title 23, United States Code, the State 
                        contribution requirement of this paragraph may 
                        include the value of land to be contributed by 
                        a State for right-of-way and may be derived by 
                        a State directly or indirectly from Federal 
                        funds, including transfers from the Highway 
                        Trust Fund under section 9503.
                            ``(ii) Special rules regarding use of bond 
                        proceeds.--Proceeds from the issuance of bonds 
                        for such a qualified project may be used to the 
                        extent necessary for the purpose of 
                        subparagraph (B)(i), and any such proceeds 
                        deposited into the trust account required under 
                        subsection (j) shall be deemed expenditures for 
                        the qualified project under subsection (h).
                    ``(D) State matching contributions may not include 
                federal funds.--Except as provided in subparagraph (C), 
                for purposes of this paragraph, State matching 
                contributions shall not be derived, directly or 
                indirectly, from Federal funds, including any transfers 
                from the Highway Trust Fund under section 9503.
                    ``(E) No state contribution requirement for certain 
                qualified projects.--With respect to any qualified 
                project described in subsection (e)(4), the State 
                contribution requirement of this paragraph is zero.
            ``(4) Qualified project.--
                    ``(A) In general.--The term `qualified project' 
                means--
                            ``(i) the acquisition, financing, or 
                        refinancing of equipment, rolling stock, and 
                        other capital improvements, including station 
                        rehabilitation or construction, track or signal 
                        improvements, or the elimination of grade 
                        crossings, for the northeast rail corridor 
                        between Washington, D.C. and Boston, 
                        Massachusetts,
                            ``(ii) the acquisition, financing, or 
                        refinancing of equipment, rolling stock, and 
                        other capital improvements, including station 
                        rehabilitation or construction, track or signal 
                        improvements, or the elimination of grade 
crossings, for the improvement of train speeds or safety (or both) on 
the high-speed rail corridors designated under section 104(d)(2) of 
title 23, United States Code, and
                            ``(iii) the acquisition, financing, or 
                        refinancing of equipment, rolling stock, and 
                        other capital improvements, including station 
                        rehabilitation or construction, track or signal 
                        improvements, or the elimination of grade 
                        crossings, for other intercity passenger rail 
                        corridors for the purpose of increasing 
                        railroad speeds to at least 90 miles per hour.
                    ``(B) Refinancing rules.--For purposes of 
                subparagraph (A), a refinancing shall constitute a 
                qualified project only if the indebtedness being 
                refinanced (including any obligation directly or 
                indirectly refinanced by such indebtedness) was 
                originally incurred by the National Railroad Passenger 
                Corporation--
                            ``(i) after the date of the enactment of 
                        this section,
                            ``(ii) for a term of not more than 3 years,
                            ``(iii) to finance or acquire capital 
                        improvements described in subparagraph (A), and
                            ``(iv) in anticipation of being refinanced 
                        with proceeds of a qualified Amtrak bond.
                    ``(C) Prior issuance costs.--For purposes of 
                subparagraph (A), a qualified project may include the 
                costs a State incurs prior to the issuance of the bonds 
                to fulfill any statutory requirements directly 
                necessary for implementation of the project.
    ``(e) Limitations on Amount of Bonds Designated.--
            ``(1) In general.--There is a qualified Amtrak bond 
        limitation for each fiscal year. Such limitation is--
                    ``(A) $1,200,000,000 for each of the fiscal years 
                2002 through 2011, and
                    ``(B) except as provided in paragraph (5), zero 
                after fiscal year 2011.
            ``(2) Bonds for rail corridors.--Not more than 
        $3,000,000,000 of the limitation under paragraph (1) may be 
        designated for any 1 rail corridor described in clause (i) or 
        (ii) of subsection (d)(4)(A).
            ``(3) Bonds for other projects.--Not more than $100,000,000 
        of the limitation under paragraph (1) for any fiscal year may 
        be allocated to all qualified projects described in subsection 
        (d)(4)(A)(iii).
            ``(4) Bonds for alaska railroad.--The Secretary of 
        Transportation may allocate to the Alaska Railroad a portion of 
        the qualified Amtrak limitation for any fiscal year in order to 
        allow the Alaska Railroad to issue bonds which meet the 
        requirements of this section for use in financing any project 
        described in subsection (d)(4)(A)(iii) (determined without 
        regard to the requirement of increasing railroad speeds). For 
        purposes of this section, the Alaska Railroad shall be treated 
        in the same manner as the National Railroad Passenger 
        Corporation.
            ``(5) Carryover of unused limitation.--If for any fiscal 
        year--
                    ``(A) the limitation amount under paragraph (1), 
                exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (d)(1)(C)(i),
        the limitation amount under paragraph (1) for the following 
        fiscal year (through fiscal year 2015) shall be increased by 
        the amount of such excess.
            ``(6) Additional selection criteria.--In selecting 
        qualified projects for allocation of the qualified Amtrak bond 
        limitation under this subsection, the Secretary of 
        Transportation--
                    ``(A) may give preference to any project with a 
                State matching contribution rate exceeding 20 percent, 
                and
                    ``(B) shall consider regional balance in 
                infrastructure investment and the national interest in 
                ensuring the development of a nation-wide high-speed 
                rail transportation network.
    ``(f) Other Definitions.--For purposes of this subpart--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) 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.
            ``(3) State.--The term `State' means the several States and 
        the District of Columbia, and any subdivision thereof.
            ``(4) Program.--The term `program' means 1 or more projects 
        implemented over 1 or more years to support the development of 
        intercity passenger rail corridors.
    ``(g) 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 (c)) and the amount so 
included shall be treated as interest income.
    ``(h) Special Rules Relating to Arbitrage.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if as 
        of the date of issuance, the issuer reasonably expects--
                    ``(A) to spend at least 95 percent of the proceeds 
                of the issue for 1 or more qualified projects within 
                the 5-year period beginning on such date, and
                    ``(B) to proceed with due diligence to complete 
                such projects and to spend the proceeds of the issue.
            ``(2) Rules regarding continuing compliance after 5-year 
        determination.--If at least 95 percent of the proceeds of the 
        issue is not expended for 1 or more qualified projects within 
        the 5-year period beginning on the date of issuance, an issue 
        shall be treated as continuing to meet the requirements of this 
        subsection if either--
                    ``(A) the issuer uses all unspent proceeds of the 
                issue to redeem bonds of the issue within 90 days after 
                the end of such 5-year period, or
                    ``(B) the following requirements are met:
                            ``(i) The issuer spends at least 75 percent 
                        of the proceeds of the issue for 1 or more 
                        qualified projects within the 5-year period 
                        beginning on the date of issuance.
                            ``(ii) The issuer has proceeded with due 
                        diligence to spend the proceeds of the issue 
                        within such 5-year period and continues to 
                        proceed with due diligence to spend such 
                        proceeds.
                            ``(iii) The issuer pays to the Federal 
                        Government any earnings on the proceeds of the 
                        issue that accrue after the end of such 5-year 
                        period.
                            ``(iv) Either--
                                    ``(I) at least 95 percent of the 
                                proceeds of the issue is expended for 1 
                                or more qualified projects within the 
                                6-year period beginning on the date of 
                                issuance, or
                                    ``(II) the issuer uses all unspent 
                                proceeds of the issue to redeem bonds 
                                of the issue within 90 days after the 
                                end of such 6-year period.
    ``(i) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a qualified Amtrak bond ceases to be a qualified Amtrak 
        bond, the issuer shall pay to the United States (at the time 
        required by the Secretary) an amount equal to the sum of--
                    ``(A) the aggregate of the credits allowable under 
                this section with respect to such bond (determined 
                without regard to subsection (c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Failure to pay.--If the issuer fails to timely pay 
        the amount required by paragraph (1) with respect to such bond, 
        the tax imposed by this chapter on each holder of any such bond 
        which is part of such issue shall be increased (for the taxable 
        year of the holder in which such cessation occurs) by the 
        aggregate decrease in the credits allowed under this section to 
        such holder for taxable years beginning in such 3 calendar 
        years which would have resulted solely from denying any credit 
        under this section with respect to such issue for such taxable 
        years.
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (2) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under paragraph (2) shall not be treated as a tax 
                imposed by this chapter for purposes of determining--
                            ``(i) the amount of any credit allowable 
                        under this part, or
                            ``(ii) the amount of the tax imposed by 
                        section 55.
    ``(j) Use of Trust Account.--
            ``(1) In general.--The amount of any matching contribution 
        with respect to a qualified project described in subsection 
        (d)(3)(B)(i) or (d)(3)(B)(ii)(II) and the temporary period 
        investment earnings on proceeds of the issue with respect to 
        such project, and any earnings thereon, shall be held in a 
        trust account by a trustee independent of the National Railroad 
        Passenger Corporation to be used to the extent necessary to 
        redeem bonds which are part of such issue.
            ``(2) Use of remaining funds in trust account.--Upon the 
        repayment of the principal of all qualified Amtrak bonds issued 
        under this section, any remaining funds in the trust account 
        described in paragraph (1) shall be available--
                    ``(A) to the trustee described in paragraph (1), to 
                meet any remaining obligations under any guaranteed 
                investment contract used to secure earnings sufficient 
                to repay the principal of such bonds, and
                    ``(B) to the issuer, for any qualified project.
    ``(k) Other Special Rules.--
            ``(1) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(2) Bonds held by regulated investment companies.--If any 
        qualified Amtrak 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.
            ``(3) Credits may be stripped.--Under regulations 
        prescribed by the Secretary--
                    ``(A) In general.--There may be a separation 
                (including at issuance) of the ownership of a qualified 
                Amtrak 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.
                    ``(B) Certain rules to apply.--In the case of a 
                separation described in subparagraph (A), the rules of 
                section 1286 shall apply to the qualified Amtrak bond 
                as if it were a stripped bond and to the credit under 
                this section as if it were a stripped coupon.
            ``(4) 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 Amtrak 
        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.
            ``(5) 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.
            ``(6) Reporting.--Issuers of qualified Amtrak bonds shall 
        submit reports similar to the reports required under section 
        149(e).''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to returns 
regarding payments of interest), as amended by section 505(d), is 
amended by adding at the end the following new paragraph:
            ``(9) Reporting of credit on qualified amtrak bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(g) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(f)(2)).
                    ``(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) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        item:

                              ``Subpart H. Nonrefundable Credit for 
                                        Holders of Qualified Amtrak 
                                        Bonds.''.
            (2) Section 6401(b)(1) is amended by striking ``and G'' and 
        inserting ``G, and H''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after September 30, 2001.
    (e) Multi-Year Capital Spending Plan and Oversight.--
            (1) Amtrak capital spending plan.--
                    (A) In general.--The National Railroad Passenger 
                Corporation shall annually submit to the President and 
                Congress a multi-year capital spending plan, as 
                approved by the Board of Directors of the Corporation.
                    (B) Contents of plan.--Such plan shall identify the 
                capital investment needs of the Corporation over a 
                period of not less than 5 years and the funding sources 
                available to finance such needs and shall prioritize 
                such needs according to corporate goals and strategies.
                    (C) Initial submission date.--The first plan shall 
                be submitted before the issuance of any qualified 
                Amtrak bonds by the National Railroad Passenger 
                Corporation pursuant to section 54 of the Internal 
                Revenue Code of 1986 (as added by this section).
            (2) Oversight of amtrak trust account and qualified 
        projects.--
                    (A) Trust account oversight.--The Secretary of the 
                Treasury shall annually report to Congress as to 
                whether the amount deposited in the trust account 
                established by the National Railroad Passenger 
                Corporation under section 54(j) of such Code (as so 
                added) is sufficient to fully repay at maturity the 
                principal of any outstanding qualified Amtrak bonds 
                issued pursuant to section 54 of such Code (as so 
                added), together with amounts expected to be 
deposited into such account, as certified by the National Railroad 
Passenger Corporation in accordance with procedures prescribed by the 
Secretary of the Treasury.
                    (B) Project oversight.--The National Railroad 
                Passenger Corporation shall contract for an annual 
                independent assessment of the costs and benefits of the 
                qualified projects financed by such qualified Amtrak 
                bonds, including an assessment of the investment 
                evaluation process of the Corporation. The annual 
                assessment shall be included in the plan submitted 
                under paragraph (1).
                    (C) Oversight funding.--Not more than 0.5 percent 
                of the amounts made available through the issuance of 
                qualified Amtrak bonds by the National Railroad 
                Passenger Corporation pursuant to section 54 of such 
                Code (as so added) may be used by the National Railroad 
                Passenger Corporation for assessments described in 
                subparagraph (B).
    (f) Protection of Highway Trust Fund.--
            (1) Certification by the secretary of the treasury.--The 
        issuance of any qualified Amtrak bonds by the National Railroad 
        Passenger Corporation or the Alaska Railroad pursuant to 
        section 54 of the Internal Revenue Code of 1986 (as added by 
        this section) is conditioned on certification by the Secretary 
        of the Treasury, after consultation with the Secretary of 
        Transportation, within 30 days of a request by the issuer, that 
        with respect to funds of the Highway Trust Fund described under 
        paragraph (2), the issuer either--
                    (A) has not received such funds during fiscal years 
                commencing with fiscal year 2002 and ending before the 
                fiscal year the bonds are issued, or
                    (B) has repaid to the Highway Trust Fund any such 
                funds which were received during such fiscal years.
            (2) Applicability.--This subsection shall apply to funds 
        received directly, or indirectly from a State or local transit 
        authority, from the Highway Trust Fund established under 
        section 9503 of the Internal Revenue Code of 1986, except for 
        funds authorized to be expended under section 9503(c) of such 
        Code, as in effect on the date of the enactment of this Act.
            (3) No retroactive effect.--Nothing in this subsection 
        shall adversely affect the entitlement of the holders of 
        qualified Amtrak bonds to the tax credit allowed pursuant to 
        section 54 of the Internal Revenue Code of 1986 (as so added) 
        or to repayment of principal upon maturity.
    (g) Exemption From Taxes for High-Speed Rail Lines and 
Improvements.--Notwithstanding any other provision of law, no rail 
carrier (as defined in section 24102 of title 49, United States Code) 
shall be required to pay any tax or fee imposed by the Internal Revenue 
Code of 1986 or by any State or local government with respect to the 
acquisition, improvement, or ownership of--
            (1) personal or real property funded by the proceeds of 
        qualified Amtrak bonds (as defined in section 54(d) of the 
        Internal Revenue Code of 1986 (as added by this section) or any 
        State or local bond (as defined in section 103(c)(1) of such 
        Code), or revenues or income from such acquisition, 
        improvement, or ownership, or
            (2) rail lines in high-speed rail corridors designated 
        under section 104(d)(2) of title 23, United States Code, that 
        are leased by the National Railroad Passenger Corporation.
    (h) Issuance of Regulations.--The Secretary of the Treasury shall 
issue regulations required under section 54 of the Internal Revenue 
Code (as added by this section) not later than 90 days after the date 
of the enactment of this Act.
    (i) Issuance of Tax-Exempt Bonds for Rail Passenger Projects.--
            (1) Funding state match requirement.--Section 142(a) 
        (relating to exempt facility bond) is amended by striking 
        ``or'' at the end of paragraph (11), by striking the period at 
        the end of paragraph (12) and inserting ``, or'', and by adding 
        at the end the following new paragraph:
            ``(13) the State contribution requirement for qualified 
        projects under section 54.''.
            (2) Repeal of governmental ownership requirement for mass 
        commuting facilities.--Section 142(b)(1)(A) (relating to 
        certain facilities must be governmentally owned) is amended by 
        striking ``(3),''.
            (3) Definition of high-speed intercity rail facilities.--
        Section 142(i)(1) is amended by striking ``in excess of 150 
        miles per hour'' and inserting ``prescribed in section 
        104(d)(2) of title 23, United States Code,''.
            (4) Exemption from volume cap.--Subsection (g) of section 
        146 (relating to exception for certain bonds) is amended by 
        striking paragraph (4) and the last sentence of such subsection 
        and inserting the following new paragraph:
            ``(4) any exempt facility bond issued as part of an issue 
        described in paragraph (3), (11), or (13) of section 142(a) 
        (relating to mass commuting facilities, high-speed intercity 
        rail facilities, and State contribution requirements under 
        section 54).''.
            (5) Effective date.--The amendments made by this subsection 
        shall apply to bonds issued after the date of enactment of this 
        Act.
                                 <all>