[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2941 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2941

  To amend the Internal Revenue Code of 1986 to modify the qualified 
                      small issue bond provisions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 2005

 Mr. English of Pennsylvania introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to modify the qualified 
                      small issue bond provisions.

    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 ``Bond Financing Renewal Act of 
2005''.

SEC. 2. ACCELERATION OF EXPANSION OF QUALIFIED SMALL-ISSUE BOND 
              PROGRAM.

    Subparagraph (G) of section 144(a)(4) of the Internal Revenue Code 
of 1986 (relating to additional capital expenditures not taken into 
account) is amended by striking ``2009'' and inserting ``2006''.

SEC. 3. ACQUISITION INTEREST EXPENSES OF FINANCIAL INSTITUTIONS FOR 
              SMALL ISSUE BONDS MADE DEDUCTIBLE.

    (a) In General.--Clause (ii) of section 265(b)(3)(B) of the 
Internal Revenue Code of 1986 (relating to certain bonds not treated as 
private activity bonds) is amended by striking ``or'' at the end of 
subclause (I), by striking the period at the end of subclause (II) and 
inserting ``, or'', and by inserting after subclause (II) the following 
new subclause:
                                    ``(III) any obligation which is a 
                                qualified small issue bond described in 
                                section 144(a)(12)(B) if such 
                                obligation is part of an issue the 
                                aggregate authorized face amount of 
                                which is less than $2,000,000.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.
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