[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 157 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 157

   To amend the Internal Revenue Code of 1986 to permit interest on 
    Federally guaranteed water, wastewater, and essential community 
                   facilities loans to be tax exempt.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 25, 2005

   Mr. Kohl 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 permit interest on 
    Federally guaranteed water, wastewater, and essential community 
                   facilities loans to be tax exempt.

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

SECTION 1. TAX-EXEMPT INTEREST ON FEDERALLY GUARANTEED WATER, 
              WASTEWATER, AND FEDERALLY GUARANTEED ESSENTIAL COMMUNITY 
              FACILITIES LOANS.

    (a) In General.--Section 149(b)(3)(A) of the Internal Revenue Code 
1986 (relating to certain insurance programs) is amended by striking 
``or'' at the end of clause (ii), by striking period at the end of 
clause (iii) and inserting ``, or'', and by adding at the end the 
following new clause:
                            ``(iv) any guarantee by the Secretary of 
                        Agriculture pursuant to section 306(a)(1) of 
                        the Consolidated Farm and Rural Development Act 
                        (7 U.S.C. 1926(a)(1)) to finance water, 
                        wastewater, and essential community 
                        facilities.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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