[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1228 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1228

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
          property owners who remove lead-based paint hazards.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 2003

  Mrs. Clinton (for herself and Mr. DeWine) 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 tax credit for 
          property owners who remove lead-based paint hazards.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Home Lead Safety 
Tax Credit Act of 2003''.
    (b) Findings.--Congress finds that:
            (1) Of the 98,000,000 housing units in the United States, 
        38,000,000 have lead-based paint.
            (2) Of the 38,000,000 housing units with lead-based paint, 
        25,000,000 pose a hazard, as defined by Environmental 
        Protection Agency and Department of Housing and Urban 
        Development standards, due to conditions such as peeling paint 
        and settled dust on floors and windowsills that contain lead at 
        levels above Federal safety standards.
            (3) Though the number of children in the United States ages 
        1 through 5 with blood levels higher than the Centers for 
        Disease Control action level of 10 micrograms per deciliter has 
        declined to 300,000, lead poisoning remains a serious, entirely 
        preventable threat to a child's intelligence, behavior, and 
        learning.
            (4) The Secretary of Health and Human Services has 
        established a national goal of ending childhood lead poisoning 
        by 2010.
            (5) Current Federal lead abatement programs, such as the 
        Lead Hazard Control Grant Program of the Department of Housing 
        and Urban Development, only have resources sufficient to make 
        approximately 7,000 homes lead-safe each year. In many cases, 
        when State and local public health departments identify a lead-
        poisoned child, resources are insufficient to reduce or 
        eliminate the hazards.
            (6) Approximately 15 percent of children are lead-poisoned 
        by home renovation projects performed by remodelers who fail to 
        follow basic safeguards to control lead dust.
            (7) Old windows typically pose significant risks because 
        wood trim is more likely to be painted with lead-based paint, 
        moisture causes paint to deteriorate, and friction generates 
        lead dust. The replacement of old windows that contain lead 
        based paint significantly reduces lead poisoning hazards in 
        addition to producing significant energy savings.
    (c) Purpose.--The purpose of this section is to encourage the safe 
removal of lead hazards from homes and thereby decrease the number of 
children who suffer reduced intelligence, learning difficulties, 
behavioral problems, and other health consequences due to lead-
poisoning.

SEC. 2. LEAD ABATEMENT TAX CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to foreign tax credit, etc.) is amended by adding at the end 
the following new section:

``SEC. 30B. HOME LEAD ABATEMENT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter an amount equal to 50 percent 
of the abatement cost paid or incurred by the taxpayer during the 
taxable year for each eligible dwelling unit of the taxpayer.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible dwelling unit shall not exceed--
            ``(1) $1,500, over
            ``(2) the aggregate cost taken into account under 
        subsection (a) with respect to such unit for all preceding 
        taxable years.
    ``(c) Definitions and Special Rules.--For purposes of this section:
            ``(1) Abatement cost.--
                    ``(A) In general.--The term `abatement cost' means, 
                with respect to any eligible dwelling unit--
                            ``(i) the cost for a certified risk 
                        assessor to conduct an assessment to determine 
                        the presence of a lead-based paint hazard,
                            ``(ii) the cost for a certified lead 
                        abatement supervisor to perform the removal of 
                        paint and dust, the permanent enclosure or 
                        encapsulation of lead-based paint, the 
                        replacement of painted surfaces or fixtures, or 
                        the removal or permanent covering of soil when 
                        lead-based paint hazards are present in such 
                        paint, dust, or soil,
                            ``(iii) the cost for a certified lead 
                        abatement supervisor to perform all 
                        preparation, cleanup, disposal, and 
                        postabatement clearance testing activities 
                        associated with the activities described in 
                        clause (ii), and
                            ``(iv) costs incurred by or on behalf of 
                        any occupant of such dwelling unit for any 
                        relocation which is necessary to achieve 
                        occupant protection (as defined under section 
                        1345 of title 24, Code of Federal Regulations).
                    ``(B) Limitation.--The term `abatement cost' does 
                not include any cost to the extent such cost is funded 
                by any grant, contract, or otherwise by another person 
                (or any governmental agency).
            ``(2) Eligible dwelling unit.--
                    ``(A) In general.--The term `eligible dwelling 
                unit' means any dwelling unit--
                            ``(i) placed in service before 1978,
                            ``(ii) located in the United States, and
                            ``(iii) determined by a certified risk 
                        assessor to have a lead-based paint hazard.
                    ``(B) Dwelling unit.--The term `dwelling unit' has 
                the meaning given such term by section 280A(f)(1).
            ``(3) Lead-based paint hazard.--The term `lead-based paint 
        hazard' has the meaning given such term under part 745 of title 
        40, Code of Federal Regulations.
            ``(4) Certified lead abatement supervisor.--The term 
        `certified lead abatement supervisor' means an individual 
        certified by the Environmental Protection Agency pursuant to 
        section 745.226 of title 40, Code of Federal Regulations, or an 
        appropriate State agency pursuant to section 745.325 of title 
        40, Code of Federal Regulations.
            ``(5) Certified inspector.--The term `certified inspector' 
        means an inspector certified by the Environmental Protection 
        Agency pursuant to section 745.226 of title 40, Code of Federal 
        Regulations, or an appropriate State agency pursuant to section 
        745.325 of title 40, Code of Federal Regulations.
            ``(6) Certified risk assessor.--The term `certified risk 
        assessor' means a risk assessor certified by the Environmental 
        Protection Agency pursuant to section 745.226 of title 40, Code 
        of Federal Regulations, or an appropriate State agency pursuant 
        to section 745.325 of title 40, Code of Federal Regulations.
            ``(7) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible dwelling unit unless--
                    ``(A) after lead abatement is complete, a certified 
                inspector or certified risk assessor provides written 
                documentation to the taxpayer that includes--
                            ``(i) a certification that the 
                        postabatement procedures (as defined by section 
                        745.227 of title 40, Code of Federal 
                        Regulations) have been performed and that the 
                        unit does not contain lead dust hazards (as 
                        defined by section 745.227(e)(8)(viii) of title 
                        40, Code of Federal Regulations), and
                            ``(ii) documentation showing that the lead 
                        abatement meets the requirements of this 
                        section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) a receipt from the certified risk 
                        assessor documenting the costs of determining 
                        the presence of a lead-based paint hazard,
                            ``(iii) a receipt from the certified lead 
                        abatement supervisor documenting the abatement 
                        cost (other than the costs described in 
                        paragraph (1)(A)(i)), and
                            ``(iv) a statement indicating the age of 
                        the dwelling unit.
            ``(8) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (d)).
    ``(d) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 29, 30, and 30A for the taxable year.
    ``(e) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (d) for such taxable year (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) is amended by striking ``and'' in 
        paragraph (27), by striking the period and inserting ``, and'' 
        in paragraph (28), and by inserting at the end the following 
        new paragraph:
            ``(29) in the case of an eligible dwelling unit with 
        respect to which a credit for lead abatement was allowed under 
        section 30B, to the extent provided in section 30B(c)(8).''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 30A the following new item:

        ``Sec. 30B. Home lead abatement.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to abatement costs incurred after December 31, 2003, in taxable 
years ending after that date.
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