[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2812 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2812

To permit the issuance of tax-exempt bonds for air and water pollution 
                          control facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2007

    Mr. Lampson (for himself and Mr. Brady of Texas) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To permit the issuance of tax-exempt bonds for air and water pollution 
                          control facilities.

    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 ``Clean Air and Water Investment Act 
of 2007''.

SEC. 2. TAX-EXEMPT BONDS FOR AIR AND WATER POLLUTION CONTROL 
              FACILITIES.

    (a) In General.--Subsection (a) of section 142 of the Internal 
Revenue Code of 1986 (defining exempt facility bonds) is amended by 
striking ``or'' at the end of paragraph (14), by striking the period at 
the end of paragraph (15) and inserting ``, or'', and by adding at the 
end the following new paragraph:
            ``(16) air or water pollution control facilities.''.
    (b) Air or Water Pollution Control Facilities.--Section 142 of such 
Code is amended by adding at the end the following new subsection:
    ``(n) Air or Water Pollution Control Facilities.--
            ``(1) In general.--For purposes of subsection (a)(16), the 
        term `air or water pollution control facilities' means any 
        property--
                    ``(A) to be used, in whole or in part, to abate or 
                control water or atmospheric pollution or contamination 
                by removing, altering, disposing, or storing 
                pollutants, contaminants, wastes, or heat,
                    ``(B) which is either--
                            ``(i) of a character subject to the 
                        allowance for depreciation under section 167, 
                        or
                            ``(ii) land, and
                    ``(C) with respect to which either--
                            ``(i) a Federal, State, or local agency 
                        exercising jurisdiction has certified that the 
                        property, as designed, is in furtherance of the 
                        purpose of abating or controlling atmospheric 
                        pollutants or contaminants, or water pollution, 
                        as the case may be, or
                            ``(ii) the property is designed to meet or 
                        exceed applicable Federal, State, and local 
                        requirements for the control of atmospheric 
                        pollutants or contaminants, or water pollution, 
                        as the case may be, in effect at the time the 
                        obligations, the proceeds of which are to be 
                        used to provide such facilities, are issued.
            ``(2) Certain other property.--In the case of property to 
        be used to control water pollution, a water pollution control 
        facility includes the necessary intercepting sewers, pumping, 
        power, and other equipment, and their appurtenances.
            ``(3) Costs taken into account.--
                    ``(A) Property with no significant purpose other 
                than pollution control.--In the case of property which 
                is designed for no significant purpose other than the 
                control of pollution, the total expenditure for such 
                property shall be taken into account for purposes of 
                this subsection.
                    ``(B) Incremental cost where significant purpose 
                other than pollution control.--In the case of property 
                to be placed in service for the purpose of controlling 
                pollution and for a significant purpose other than 
                controlling pollution, only the incremental cost of 
                such property shall be taken into account for purposes 
                of this subsection. For purposes of the preceding 
                sentence, the term `incremental cost' means the excess 
                of the total cost of such property over the portion of 
                such cost expended for a purpose other than the control 
                of pollution.
                    ``(C) Significant purpose.--For purposes of this 
                paragraph, an expenditure has a significant purpose 
                other than the control of pollution if such expenditure 
                results in an increase in production or capacity, or in 
                a material extension of the useful life, of a 
                manufacturing or production facility or a part 
                thereof.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to bonds issued after December 31, 2006.
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