I 108th CONGRESS 2d Session H. R. 3766 IN THE HOUSE OF REPRESENTATIVES February 4, 2004 Mr. Houghton (for himself and Mr. Payne) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide for tax-exempt financing for United Nations facilities.

1.

Short title

This Act may be cited as &short-title1;.

2.

Tax-exempt financing for United Nations facilities

(a)

In general

Section 145 of the Internal Revenue Code of 1986 (relating to qualified 501(c)(3) bonds) is amended by adding at the end the following new subsection: (f)

Special rule relating to bonds for United Nations facilities

(1)

In general

For purposes of this part, the term qualified 501(c)(3) bond includes a bond issued as part of an issue 95 percent or more of the net proceeds of which are used to provide a United Nations facility described in paragraph (2). Such bonds need not satisfy the requirements of paragraphs (1) and (2) of subsection (a). (2)

United nations facility

For purposes of paragraph (1), the term United Nations facility means property used by the United Nations or any agency or instrumentality thereof, whether or not constituting a 501(c)(3) organization, so long as— (A)such property is used in conjunction with, but is outside, the United Nations headquarters district, as defined in Annex 1 to the Agreement between the United Nations and the United States of America, as approved August 4, 1947; and (B)costs for such United Nations facility are first incurred after April 1, 2002. (3)

Financing not treated as loan

For purposes of section 148, financing of such United Nations facility shall not be treated as a loan to the United Nations or otherwise by reason of unencumbered ownership by the United Nations of such United Nations facility when such bond is no longer outstanding.. (b)

Effective date

The amendment made by this section shall take effect on the date of the enactment of this Act.