[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 59 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 59

     To treat certain hospital support organizations as qualified 
  organizations for purposes of determining acquisition indebtedness.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 25 (legislative day, January 5), 2011

  Mr. Inouye introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To treat certain hospital support organizations as qualified 
  organizations for purposes of determining acquisition indebtedness.

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

SECTION 1. TREATMENT OF CERTAIN HOSPITAL SUPPORT ORGANIZATIONS AS 
              QUALIFIED ORGANIZATIONS FOR PURPOSES OF DETERMINING 
              ACQUISITION INDEBTEDNESS.

    (a) In General.--Subparagraph (C) of section 514(c)(9) of the 
Internal Revenue Code of 1986 (relating to real property acquired by a 
qualified organization) is amended by striking ``or'' at the end of 
clause (iii), by striking the period at the end of clause (iv) and 
inserting ``; or'', and by adding at the end the following new clause:
                            ``(v) a qualified hospital support 
                        organization (as defined in subparagraph 
                        (I)).''.
    (b) Qualified Hospital Support Organizations.--Paragraph (9) of 
section 514(c) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subparagraph:
                    ``(I) Qualified hospital support organizations.--
                For purposes of subparagraph (C)(iv), the term 
                `qualified hospital support organization' means, with 
                respect to any eligible indebtedness (including any 
                qualified refinancing of such eligible indebtedness), a 
                support organization (as defined in section 509(a)(3)) 
                which supports a hospital described in section 
                119(d)(4)(B) and with respect to which--
                            ``(i) more than half of its assets (by 
                        value) at any time since its organization--
                                    ``(I) were acquired, directly or 
                                indirectly, by testamentary gift or 
                                devise, and
                                    ``(II) consisted of real property, 
                                and
                            ``(ii) the fair market value of the 
                        organization's real estate acquired, directly 
                        or indirectly, by gift or devise, exceeded 25 
                        percent of the fair market value of all 
                        investment assets held by the organization 
                        immediately prior to the time that the eligible 
                        indebtedness was incurred.
                For purposes of this subparagraph, the term `eligible 
                indebtedness' means indebtedness secured by real 
                property acquired by the organization, directly or 
                indirectly, by gift or devise, the proceeds of which 
                are used exclusively to acquire any leasehold interest 
                in such real property or for improvements on, or 
                repairs to, such real property. A determination under 
                clauses (i) and (ii) of this subparagraph shall be made 
                each time such an eligible indebtedness (or the 
                qualified refinancing of such an eligible indebtedness) 
                is incurred. For purposes of this subparagraph, a 
                refinancing of such an eligible indebtedness shall be 
                considered qualified if such refinancing does not 
                exceed the amount of the refinanced eligible 
                indebtedness immediately before the refinancing.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to indebtedness incurred on or after the date of the enactment of 
this Act.
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