[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 870 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 870
To amend the Internal Revenue Code of 1986 to provide additional tax
incentives for public-private partnerships in financing of highway,
mass transit, high-speed rail, and intermodal transfer facilities
projects, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 10, 2001
Mr. Smith of New Hampshire (for himself and Mr. Inhofe) 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 additional tax
incentives for public-private partnerships in financing of highway,
mass transit, high-speed rail, and intermodal transfer facilities
projects, 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 ``Multimodal Transportation Financing
Act''.
SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED HIGHWAY INFRASTRUCTURE.
(a) Treatment as Exempt Facility Bond.--Subsection (a) of section
142 of the Internal Revenue Code of 1986 (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:
``(13) qualified highway infrastructure projects.''.
(b) Qualified Highway Infrastructure Projects.--Section 142 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following:
``(k) Qualified Highway Infrastructure Projects.--
``(1) In general.--For purposes of subsection (a)(13), the
term `qualified highway infrastructure project' means a
project--
``(A) for the construction, reconstruction, or
maintenance of a highway, including related startup
costs, and
``(B) meeting the requirements of paragraph (2).
``(2) Project requirements.--A project meets the
requirements of this paragraph if the project--
``(A) serves the general public,
``(B) is located on publicly-owned rights-of-way,
and
``(C) is publicly owned or the ownership of the
highway constructed, reconstructed, or maintained under
the project reverts to the public.''
(c) Exemption From General State Volume Caps.--Paragraph (3) of
section 146(g) of the Internal Revenue Code of 1986 (relating to
exception for certain bonds) is amended--
(1) by striking ``or (12)'' and inserting ``(12), or
(13)'', and
(2) by striking ``and environmental enhancements of
hydroelectric generating facilities'' and inserting
``environmental enhancements of hydroelectric generating
facilities, and qualified highway infrastructure projects''.
(d) Exemption From Limitation on Use for Land Acquisition.--Section
147(c)(3) of the Internal Revenue Code of 1986 (relating to exception
for certain land acquired for environmental purposes, etc.) is amended
by striking ``or wharf'' both places it appears and inserting ``wharf,
or qualified highway infrastructure project''.
(e) Treatment of Certain Refunding Bonds.--
(1) In general.--Paragraph (2) of section 149(d) of the
Internal Revenue Code of 1986 (relating to certain private
activity bonds) is amended by inserting ``or any exempt
facility bond issued as part of an issue described in paragraph
(13) of section 142(a) (relating to qualified highway
infrastructure projects)'' after ``other than a qualified
501(c)(3) bond''.
(2) Special rules.--Paragraph (6) of section 149(d) of such
Code is amended to read as follows:
``(6) Special rules for purposes of paragraph (3).--For
purposes of paragraph (3)--
``(A) bonds issued before October 22, 1986, shall
be taken into account under subparagraph (A)(i) thereof
except--
``(i) a refunding which occurred before
1986 shall be treated as an advance refunding
only if the refunding bond was issued more than
180 days before the redemption of the refunded
bond, and
``(ii) a bond issued before 1986, shall be
treated as advance refunded no more than once
before March 15, 1986, and
``(B) a bond issued as part of an issue that is
either the 1st or 2nd advance refunding of the original
bond shall be treated as only the 1st advance refunding
of the original bond if--
``(i) at least 95 percent or more of the
net proceeds of the original bond issue are to
be used to finance a highway infrastructure
project (regardless of whether the original
bond was issued as a private activity bond),
``(ii) the original bonds and applicable
refunding bonds are or are reasonably expected
to be primarily secured by project-based
revenues, and
``(iii) in any case in which--
``(I) the original bonds or
applicable refunding bonds are private
activity bonds issued as part of an
issue at least 95 percent or more of
the net proceeds of which are to be
used to finance a qualified highway
infrastructure project described in
section 142(a)(13), the refunding bonds
of the issue and original bonds of the
issue satisfy the requirements of
section 147(b), or
``(II) the original bonds and
applicable refunding bonds are not
private activity bonds, the second
generation advance refunding bonds of
the issue (and any future bonds of the
issue refunding such bonds) satisfy the
requirements of section 147(b).''.
(3) Special rule relating to maturity limitation.--Section
147(b) of such Code (relating to maturity limitations) is
amended by adding at the end the following:
``(6) Special rule for certain highway infrastructure
projects.--
``(A) In general.--In the case of bonds of an issue
described in section 149(d)(6)(B), the limit described
in paragraph (1)(B) shall be reduced--
``(i) in any case in which the original
bonds or applicable refunding bonds are private
activity bonds, by the remaining weighted
average maturity of the escrowed bonds with
respect to both the first and second generation
advance refunding, and
``(ii) in any case in which the original
bonds and applicable refunding bonds are not
private activity bonds, by the remaining
weighted average maturity of the escrowed bonds
with respect to the second generation advance
refunding.
``(B) Remaining weighted average maturity of
escrowed bonds.--For purposes of subparagraph (A), the
remaining weighted average maturity of the escrowed
bonds is equal to the weighted average maturity,
calculated as of the applicable refunding bond issue
date--
``(i) with respect to subparagraph (A)(i),
of the applicable bonds advance refunded, and
``(ii) with respect to subparagraph
(A)(ii), of the applicable bonds directly
refunded by the second generation advance
refunding bonds, and
treating any date of actual early redemption as a
maturity date for this purpose.
(f) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of enactment of this Act.
SEC. 3. MASS COMMUTING FACILITIES.
(a) Exemption From State Volume Cap.--Section 146(g)(3) of the
Internal Revenue Code of 1986 (relating to exception for certain
bonds), as amended by section 2, is amended--
(1) by inserting ``(3),'' after ``(2),'', and
(2) by inserting ``mass commuting facilities,'' after
``wharves,''.
(b) Inclusion of Rolling Stock.--Section 142(c) of the Internal
Revenue Code of 1986 (relating to airports, docks and wharves, mass
commuting facilities and high-speed intercity rail facilities) is
amended by adding at the end the following new paragraph:
``(3) Mass commuting facilities.--The term `mass commuting
facilities' includes rolling stock related to such
facilities.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of enactment of this Act.
SEC. 4. MODIFICATION OF DEFINITION OF HIGH-SPEED INTERCITY RAIL
FACILITIES.
(a) In General.--Section 142(i)(1) of the Internal Revenue Code of
1986 (defining high-speed intercity rail facilities) is amended by
striking `` and their baggage'' and all that follows and inserting ``on
high speed rail corridors designated under section 104(d)(2) of title
23, United States Code, or on corridors using magnetic levitation
technology.''.
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of enactment of this Act.
SEC. 5. TAX-EXEMPT FINANCING OF INTERMODAL TRANSFER FACILITIES.
(a) Treatment as Exempt Facility Bond.--Subsection (a) of section
142 of the Internal Revenue Code of 1986 (relating to exempt facility
bond), as amended by section 2(a), is amended by striking ``or'' at the
end of paragraph (12), by striking the period at the end of paragraph
(13) and inserting ``, or'', and by adding at the end the following:
``(14) intermodal transfer facilities.''.
(b) Intermodal Transfer Facilities.--Section 142 of the Internal
Revenue Code of 1986, as amended by section 2(b), is amended by adding
at the end the following:
``(l) Intermodal Transfer Facilities.--For purposes of subsection
(a)(14), the term `intermodal transfer facilities' means any facility
for the transfer of people or goods between the same or different
transportation modes.''.
(c) Exemption From General State Volume Caps.--Paragraph (3) of
section 146(g) of the Internal Revenue Code of 1986 (relating to
exception for certain bonds), as amended by section 2(c), is amended--
(1) by striking ``or (13)'' and inserting ``(13), or
(14)'', and
(2) by striking ``and qualified highway infrastructure
projects'' and inserting ``qualified highway infrastructure
projects, and intermodal transfer facilities''.
(d) Exemption From Limitation on Use for Land Acquisition.--Section
147(d)(3) of the Internal Revenue Code of 1986 (relating to exception
for certain land acquired for environmental purposes, etc.), as amended
by section 2(d), is amended by striking ``or qualified highway
infrastructure project'' both places it appears and inserting
``qualified highway infrastructure project, or intermodal transfer
facility''.
(e) Conforming Amendments.--Subsection (c) of section 142 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``or (11)'' both places it appears in
paragraphs (1) and (2) and inserting ``, (11), or (14)'', and
(2) by striking ``and High-Speed Intercity Rail
Facilities'' in the heading thereof and inserting ``, High-
Speed Intercity Rail Facilities, and Intermodal Transfer
Facilities''.
(f) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of enactment of this Act.
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