[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 855 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 855

  To amend the Internal Revenue Code of 1986 to modify the unrelated 
   business income limitation on investment in certain debt-financed 
                              properties.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2003

  Ms. Snowe (for herself, Mr. Bond, and Mr. Grassley) 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 modify the unrelated 
   business income limitation on investment in certain debt-financed 
                              properties.

    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 ``Small Business Investment Company 
Capital Access Act of 2003''.

SEC. 2. MODIFICATION OF UNRELATED BUSINESS INCOME LIMITATION ON 
              INVESTMENT IN CERTAIN DEBT-FINANCED PROPERTIES.

    (a) In General.--Section 514(c)(6) of the Internal Revenue Code of 
1986 (relating to acquisition indebtedness) is amended--
            (1) by striking ``include an obligation'' and inserting 
        ``include--
                    ``(A) an obligation'',
            (2) by striking the period at the end and inserting ``, 
        or'', and
            (3) by adding at the end the following:
                    ``(B) indebtedness incurred by a small business 
                investment company licensed under the Small Business 
                Investment Act of 1958 which is evidenced by a 
                debenture--
                            ``(i) issued by such company under section 
                        303(a) of such Act, or
                            ``(ii) held or guaranteed by the Small 
                        Business Administration.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to acquisitions made on or after the date of the enactment of 
this Act.
                                 <all>