II 110th CONGRESS 1st Session S. 1630 IN THE SENATE OF THE UNITED STATES June 14, 2007 Mr. Crapo (for himself and Mr. Craig) 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 exclude certain tax-exempt financing of electric transmission facilities from the private business use test.

1.

Tax-exempt financing of certain electric transmission facilities not subject to private business use test

(a)

In general

Section 141(b)(6) of the Internal Revenue Code of 1986 (defining private business use) is amended by adding at the end the following new subparagraph: (C)

Exception for certain electric transmission facilities

For purposes of the 1st sentence of subparagraph (A), the operation or use of an electric transmission facility by any person which is not a governmental unit shall not be considered a private business use if— (i)the facility is placed in service on or after the date of the enactment of this subparagraph and is owned by— (I)a State or political subdivision of a State, or any agency, authority, or instrumentality of any of the foregoing providing electric service, directly or indirectly to the public, or (II)a State or political subdivision of a State expressly authorized under applicable State law effective on or after January 1, 2004, to finance and own electric transmission facilities, and (ii)bonds for such facility are issued before the date which is 5 years after the date of the enactment of this subparagraph. . (b)

Effective date

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