II 109th CONGRESS 1st Session S. 104 IN THE SENATE OF THE UNITED STATES January 24, 2005 Mr. Talent (for himself, Mr. Wyden, Mr. Coleman, and Mr. Corzine) 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 tax-exempt financing of highway projects and rail-truck transfer facilities.

1.

Tax-exempt financing of highway projects and rail-truck 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) is amended by striking or at the end of paragraph (13), by striking the period at the end of paragraph (14), and by adding at the end the following: (15) qualified highway facilities, or (16) qualified surface freight transfer facilities. . (b)

Qualified highway facilities and qualified surface freight transfer facilities

Section 142 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (m)

Qualified highway and surface freight transfer facilities

(1)

Qualified highway facilities

For purposes of subsection (a)(15), the term qualified highway facilities means— (A) any surface transportation project which receives Federal assistance under title 23, United States Code (as in effect on the date of the enactment of this subsection), or (B) any project for an international bridge or tunnel for which an international entity authorized under Federal or State law is responsible and which receives Federal assistance under such title 23. (2)

Qualified surface freight transfer facilities

For purposes of subsection (a)(16), the term qualified surface freight transfer facilities means facilities for the transfer of freight from truck to rail or rail to truck (including any temporary storage facilities directly related to such transfers) which receives Federal assistance under either title 23 or title 49, United States Code (as in effect on the date of the enactment of this subsection). (3)

Aggregate face amount of tax-exempt financing for facilities

(A)

In general

An issue shall not be treated as an issue described in subsection (a)(15) or (a)(16) if the aggregate face amount of bonds issued by any State pursuant thereto (when added to the aggregate face amount of bonds previously so issued) exceeds $15,000,000,000. (B)

Allocation by Secretary of Transportation

The Secretary of Transportation shall allocate the amount described in subparagraph (A) among eligible projects described in subsections (a)(15) and (a)(16) in such manner as the Secretary determines appropriate. . (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 by striking or (14) and all that follows through the end of the paragraph and inserting (14), (15), or (16) of section 142(a), and. (d)

Effective date

The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.