[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2073 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2073

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

                           November 18, 2005

 Mrs. Clinton 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 2005''.
    (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) 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.
            (7) Childhood lead poisoning can be dramatically reduced by 
        the abatement or complete removal of all lead-based paint. 
        Empirical studies also have shown substantial reductions in 
        lead poisoning when the affected properties have undergone so-
        called ``interim control measures'' that are far less costly 
        than abatement.
    (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. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30D. HOME LEAD HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 50 percent of the lead hazard reduction activity cost paid or 
incurred by the taxpayer during the taxable year for each eligible 
dwelling unit.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible dwelling unit for any taxable year 
shall not exceed--
            ``(1) either--
                    ``(A) $3,000 in the case of lead hazard reduction 
                activity cost including lead abatement measures 
                described in clauses (i), (ii), (iv) and (v) of 
                subsection (c)(1)(A), or
                    ``(B) $1,000 in the case of lead hazard reduction 
                activity cost including interim lead control measures 
                described in clauses (i), (iii), (iv), and (v) of 
                subsection (c)(1)(A), reduced by
            ``(2) the aggregate lead hazard reduction activity 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) Lead hazard reduction activity cost.--
                    ``(A) In general.--The term `lead hazard reduction 
                activity 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 performing lead 
                        abatement measures by a certified lead 
                        abatement supervisor, including the removal of 
                        paint and dust, the permanent enclosure or 
                        encapsulation of lead-based paint, the 
                        replacement of painted surfaces, windows, 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 performing interim 
                        lead control measures to reduce exposure or 
                        likely exposure to lead-based paint hazards, 
                        including specialized cleaning, repairs, 
                        maintenance, painting, temporary containment, 
                        ongoing monitoring of lead-based paint hazards, 
                        and the establishment and operation of 
                        management and resident education programs, but 
                        only if such measures are evaluated and 
                        completed by a certified lead abatement 
                        supervisor using accepted methods, are 
                        conducted by a qualified contractor, and have 
                        an expected useful life of more than 10 years,
                            ``(iv) the cost for a certified lead 
                        abatement supervisor, those working under the 
                        supervision of such supervisor, or a qualified 
                        contractor to perform all preparation, cleanup, 
                        disposal, and clearance testing activities 
                        associated with the lead abatement measures or 
                        interim lead control measures, and
                            ``(v) 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 
                        35.1345 of title 24, Code of Federal 
                        Regulations).
                    ``(B) Limitation.--The term `lead hazard reduction 
                activity 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, with respect to any taxable year, any 
                dwelling unit--
                            ``(i) placed in service before 1960,
                            ``(ii) located in the United States,
                            ``(iii) in which resides, for a total 
                        period of not less than 50 percent of the 
                        taxable year, at least 1 child who has not 
                        attained the age of 6 years or 1 woman of 
                        child-bearing age, and
                            ``(iv) each of the residents of which 
                        during such taxable year has an adjusted gross 
                        income of less than 185 percent of the poverty 
                        line (as determined for such taxable year in 
                        accordance with criteria established by the 
                        Director of the Office of Management and 
                        Budget).
                    ``(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 by section 745.61 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) Qualified contractor.--The term `qualified 
        contractor' means any contractor who has successfully completed 
        a training course on lead safe work practices which has been 
        approved by the Department of Housing and Urban Development and 
        the Environmental Protection Agency.
            ``(8) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible dwelling unit for any taxable year unless--
                    ``(A) after lead hazard reduction activity is 
                complete, a certified inspector or certified risk 
                assessor provides written documentation to the taxpayer 
                that includes--
                            ``(i) evidence that--
                                    ``(I) the eligible dwelling unit 
                                passes the clearance examinations 
                                required by the Department of Housing 
                                and Urban Development under part 35 of 
                                title 40, Code of Federal Regulations,
                                    ``(II) the eligible dwelling unit 
                                does not contain lead dust hazards (as 
                                defined by section 745.227(e)(8)(viii) 
                                of such title 40), or
                                    ``(III) the eligible dwelling unit 
                                meets lead hazard evaluation criteria 
                                established under an authorized State 
                                or local program, and
                            ``(ii) documentation showing that the lead 
                        hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the lead hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible dwelling unit, and
                            ``(iii) a statement certifying that the 
                        dwelling unit qualifies as an eligible dwelling 
                        unit for such taxable year.
            ``(9) 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)).
            ``(10) No double benefit.--Any deduction allowable for 
        costs taken into account in computing the amount of the credit 
        for lead-based paint abatement shall be reduced by the amount 
        of such credit attributable to such costs.
    ``(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, 30A, 30B, and 30C 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) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' in paragraph (36), by striking the 
        period and inserting ``, and'' in paragraph (37), and by 
        inserting at the end the following new paragraph:
            ``(38) in the case of an eligible dwelling unit with 
        respect to which a credit for any lead hazard reduction 
        activity cost was allowed under section 30D, to the extent 
        provided in section 30D(c)(9).''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30C the following new item:

``Sec. 30D. Home lead hazard reduction activity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to lead hazard reduction activity costs incurred after December 
31, 2005, in taxable years ending after that date.
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