[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4915 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 4915

  To amend the Internal Revenue Code of 1986 to modify the low-income 
housing credit and to reauthorize and reform the Generalized System of 
                  Preferences, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2024

 Ms. Cantwell 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 modify the low-income 
housing credit and to reauthorize and reform the Generalized System of 
                  Preferences, and for other purposes.

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

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
                      TITLE I--AFFORDABLE HOUSING

Sec. 101. State housing credit ceiling increase for low-income housing 
                            credit.
Sec. 102. Tax-exempt bond financing requirement.
     TITLE II--REAUTHORIZATION AND REFORM OF GENERALIZED SYSTEM OF 
                              PREFERENCES

Sec. 201. Modification of eligibility criteria for beneficiary 
                            developing countries.
Sec. 202. Supplemental reviews and reporting.
Sec. 203. Extension of Generalized System of Preferences.

                      TITLE I--AFFORDABLE HOUSING

SEC. 101. STATE HOUSING CREDIT CEILING INCREASE FOR LOW-INCOME HOUSING 
              CREDIT.

    (a) In General.--Section 42(h)(3)(I) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``and 2021,'' and inserting ``2021, 2023, 
        2024, and 2025,'', and
            (2) by striking ``2018, 2019, 2020, and 2021'' in the 
        heading and inserting ``certain calendar years''.
    (b) Effective Date.--The amendments made by this section shall 
apply to calendar years after 2022.

SEC. 102. TAX-EXEMPT BOND FINANCING REQUIREMENT.

    (a) In General.--Section 42(h)(4) of the Internal Revenue Code of 
1986 is amended by striking subparagraph (B) and inserting the 
following:
                    ``(B) Special rule where minimum percent of 
                buildings is financed with tax-exempt bonds subject to 
                volume cap.--For purposes of subparagraph (A), 
                paragraph (1) shall not apply to any portion of the 
                credit allowable under subsection (a) with respect to a 
                building if--
                            ``(i) 50 percent or more of the aggregate 
                        basis of such building and the land on which 
                        the building is located is financed by 1 or 
                        more obligations described in subparagraph (A), 
                        or
                            ``(ii)(I) 30 percent or more of the 
                        aggregate basis of such building and the land 
                        on which the building is located is financed by 
                        1 or more qualified obligations, and
                            ``(II) 1 or more of such qualified 
                        obligations--
                                    ``(aa) are part of an issue the 
                                issue date of which is after December 
                                31, 2023, and
                                    ``(bb) provide the financing for 
                                not less than 5 percent of the 
                                aggregate basis of such building and 
                                the land on which the building is 
                                located.
                    ``(C) Qualified obligation.--For purposes of 
                subparagraph (B)(ii), the term `qualified obligation' 
                means an obligation which is described in subparagraph 
                (A) and which is part of an issue the issue date of 
                which is before January 1, 2026.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to buildings placed in service in taxable years beginning 
        after December 31, 2023.
            (2) Rehabilitation expenditures treated as separate new 
        building.--In the case of any building with respect to which 
        any expenditures are treated as a separate new building under 
        section 42(e) of the Internal Revenue Code of 1986, for 
        purposes of paragraph (1), both the existing building and the 
        separate new building shall be treated as having been placed in 
        service on the date such expenditures are treated as placed in 
        service under section 42(e)(4) of such Code.

     TITLE II--REAUTHORIZATION AND REFORM OF GENERALIZED SYSTEM OF 
                              PREFERENCES

SEC. 201. MODIFICATION OF ELIGIBILITY CRITERIA FOR BENEFICIARY 
              DEVELOPING COUNTRIES.

    (a) In General.--Section 502 of the Trade Act of 1974 (19 U.S.C. 
2462) is amended--
            (1) in subsection (b)(2)--
                    (A) by inserting after subparagraph (H) the 
                following:
                    ``(I) Such country has failed, in a manner 
                affecting trade or investment--
                            ``(i) to effectively enforce its 
                        environmental laws or regulations through a 
                        sustained or recurring course of action or 
                        inaction; or
                            ``(ii) to adopt and maintain measures 
                        implementing its obligations under common 
                        multilateral environmental agreements.
                    ``(J) Such country engages in gross violations of 
                internationally recognized human rights in that country 
                (including any designated zone in that country).''; and
                    (B) in the text following subparagraph (J) (as 
                inserted by subparagraph (A)), by striking ``and (H) 
                (to the extent described in section 507(6)(D))'' and 
                inserting ``(H) (to the extent described in section 
                507(6)(D)), (I), and (J)''; and
            (2) in subsection (c)--
                    (A) in paragraph (6)(B), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (7)--
                            (i) by striking ``whether'' and all that 
                        follows through ``afford'' and inserting ``the 
                        extent to which such country is affording''; 
                        and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(8) the extent to which such country is effectively 
        enforcing its environmental laws and regulations and adopting 
        and maintaining measures implementing its obligations under 
        common multilateral environmental agreements;
            ``(9) the extent to which such country is achieving the 
        goals described in section 3(b) of the Women's Entrepreneurship 
        and Economic Empowerment Act of 2018 (22 U.S.C. 2151-2(b));
            ``(10) the extent to which such country has established, or 
        is making continual progress toward establishing--
                    ``(A) the rule of law, political pluralism, and the 
                right to due process, a fair trial, and equal 
                protection under the law;
                    ``(B) economic policies to reduce poverty, increase 
                the availability of health care and educational 
                opportunities, expand physical infrastructure, promote 
                the development of private enterprise, and encourage 
                the formation of capital markets through micro-credit 
                or other programs; and
                    ``(C) a system to combat corruption and bribery, 
                such as signing and implementing the Convention on 
                Combating Bribery of Foreign Public Officials in 
                International Business Transactions, done at Paris 
                December 17, 1997, and entered into force February 15, 
                1999 (TIAS 99-215); and
            ``(11) the extent to which such country--
                    ``(A) has refrained from imposing, or has 
                eliminated, digital trade barriers, including 
                unnecessary or discriminatory data localization or data 
                transfer restrictions; and
                    ``(B) has taken steps in the digital environment to 
                support consumer protections, the privacy of personal 
                information, and open digital ecosystems.''.
    (b) Modification of Withdrawal, Suspension, or Limitation 
Requirements.--Section 502 of the Trade Act of 1974 (19 U.S.C. 2462) is 
amended--
            (1) in subsection (d)(1), in the second sentence--
                    (A) by striking ``shall consider'' and inserting 
                the following: ``shall--
                    ``(A) consider'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(B) hold a public hearing or provide for a period 
                of not less than 30 days for submission of comments by 
                the public.''; and
            (2) in subsection (f)(2)--
                    (A) in the paragraph heading, by inserting ``or 
                suspension'' after ``termination'';
                    (B) by inserting ``or suspend'' after ``terminate'' 
                each place it appears; and
                    (C) by inserting ``or suspension'' after 
                ``termination''.
    (c) Publication of Determinations Relating to Petitions for 
Review.--Section 502 of the Trade Act of 1974 (19 U.S.C. 2462) is 
amended by adding at the end the following:
    ``(g) Publication of Determinations Relating to Petitions for 
Review.--The United States Trade Representative shall publish in the 
Federal Register a notice of, and the rationale for, any determination 
of the Trade Representative with respect to a petition for review of 
the eligibility of a country for designation as a beneficiary 
developing country, including a determination--
            ``(1) to accept or deny such a petition;
            ``(2) to continue to review the eligibility of the country; 
        or
            ``(3) to withdraw, suspend, or limit the application of 
        duty-free treatment under this title with respect to the 
        country.''.
    (d) Definitions.--Section 507 of the Trade Act of 1974 (19 U.S.C. 
2467) is amended--
            (1) in paragraph (4)--
                    (A) in subparagraph (D), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) the elimination of all forms of 
                discrimination with respect to occupation and 
                employment.''; and
            (2) by adding at the end the following:
            ``(7) Common multilateral environmental agreement.--
                    ``(A) In general.--The term `common multilateral 
                environmental agreement', for purposes of determining 
                the eligibility of a country for designation as a 
                beneficiary developing country under this title, means 
                any agreement specified in subparagraph (B) to which 
                both the United States and that country are full 
                parties, including any current or future mutually 
                agreed upon protocols, amendments, annexes, or 
                adjustments to such an agreement.
                    ``(B) Agreements specified.--The agreements 
                specified in this subparagraph are the following:
                            ``(i) The Convention on International Trade 
                        in Endangered Species of Wild Fauna and Flora, 
                        done at Washington March 3, 1973 (27 UST 1087; 
                        TIAS 8249).
                            ``(ii) The Montreal Protocol on Substances 
                        that Deplete the Ozone Layer, done at Montreal 
                        September 16, 1987.
                            ``(iii) The Protocol of 1978 Relating to 
                        the International Convention for the Prevention 
                        of Pollution from Ships, 1973, done at London 
                        February 17, 1978.
                            ``(iv) The Convention on Wetlands of 
                        International Importance, Especially as 
                        Waterfowl Habitat, done at Ramsar February 2, 
                        1971 (TIAS 11084).
                            ``(v) The Convention on the Conservation of 
                        Antarctic Marine Living Resources, done at 
                        Canberra May 20, 1980 (33 UST 3476).
                            ``(vi) The International Convention for the 
                        Regulation of Whaling, done at Washington 
                        December 2, 1946 (62 Stat. 1716).
                            ``(vii) The Convention for the 
                        Establishment of an Inter-American Tropical 
                        Tuna Commission, done at Washington May 31, 
                        1949 (1 UST 230).''.

SEC. 202. SUPPLEMENTAL REVIEWS AND REPORTING.

    (a) Assessment and Report on Compliance With Eligibility 
Requirements.--Section 502 of the Trade Act of 1974, as amended by 
section 201, is further amended by adding at the end the following:
    ``(h) Assessment and Report on Compliance With Eligibility 
Requirements.--
            ``(1) In general.--The President shall--
                    ``(A) on an annual basis--
                            ``(i) conduct assessments of the compliance 
                        of an appropriate number of countries 
                        designated as beneficiary developing countries 
                        for purposes of this title in meeting or 
                        continuing to meet the eligibility requirements 
                        under this title; and
                            ``(ii) make determinations with respect to 
                        whether to initiate full reviews of the 
                        practices of those countries to assess the 
                        continued eligibility of those countries for 
                        designation as beneficiary developing countries 
                        under this title; and
                    ``(B) submit to Congress a report consisting of the 
                results of such assessments and determinations.
            ``(2) Frequency.--The President shall conduct an assessment 
        described in clause (i) of paragraph (1)(A) and make a 
        determination described in clause (ii) of that paragraph with 
        respect to each country designated as a beneficiary developing 
        country for purposes of this title not less frequently than 
        once every 3 years.''.
    (b) Assessment of Effectiveness of Generalized System of 
Preferences in Strengthening and Maintaining Internationally Recognized 
Worker Rights and Women's Entrepreneurship and Economic Empowerment.--
            (1) Policy of the united states.--It is the policy of the 
        United States to support gender equality and worker rights by 
        promoting legal reforms that address legal, structural, and 
        social barriers that constrain the full and free economic 
        participation of all workers in the global economy.
            (2) Amendment to trade act of 1974.--
                    (A) In general.--Title V of the Trade Act of 1974 
                (19 U.S.C. 2461 et seq.) is amended by inserting after 
                section 504 the following:

``SEC. 504A. ASSESSMENT OF EFFECTIVENESS IN STRENGTHENING AND 
              MAINTAINING INTERNATIONALLY RECOGNIZED WORKER RIGHTS AND 
              WOMEN'S ENTREPRENEURSHIP AND ECONOMIC EMPOWERMENT.

    ``(a) In General.--Not later than 15 months after the date of the 
enactment of this section, and every 2 years thereafter, the United 
States Trade Representative and the Deputy Undersecretary of Labor for 
International Affairs, in consultation with the policy advisory 
committee on labor established under section 135(c)(1), shall jointly 
submit to Congress an assessment of the effectiveness of the 
administration of this title in maintaining or strengthening the 
efforts of beneficiary developing countries relating to the factors 
described in paragraphs (7) and (9) of section 502(c).
    ``(b) Methodology and Sources.--The assessment required by 
subsection (a) shall include--
            ``(1) an explanation of the methodology and sources used to 
        prepare the assessment; and
            ``(2) where relevant, citations to data, information, 
        studies, and assessments that were used to prepare the 
        assessment and were gathered, compiled, or developed by the 
        United States Government, foreign governments, multilateral 
        institutions, nongovernmental organizations, or educational 
        institutions.
    ``(c) Measurement of Women's Economic Empowerment.--To support the 
measurement of women's economic empowerment, the Trade Representative 
shall encourage and support the reporting by beneficiary developing 
countries of sex-disaggregated economic and business data, including 
the gathering of information consistent with the United Nations 
Sustainable Development Goals, particularly the goals relating to 
gender equality and decent work.''.
                    (B) Clerical amendment.--The table of contents for 
                the Trade Act of 1974 is amended by inserting after the 
                item relating to section 504 the following:

``Sec. 504A. Assessment of effectiveness in strengthening and 
                            maintaining internationally recognized 
                            worker rights and women's entrepreneurship 
                            and economic empowerment.''.
    (c) United States International Trade Commission Study.--Not later 
than July 1, 2026, the United States International Trade Commission 
shall submit to Congress a report that contains a study on rules of 
origin, utilization rates, and eligibility requirements for articles 
under the Generalized System of Preferences program under title V of 
the Trade Act of 1974 (19 U.S.C. 2461 et seq.), including an assessment 
of--
            (1) the rate of utilization of the program by countries 
        designated as least-developed beneficiary developing countries 
        under section 502(a)(2) of that Act (19 U.S.C. 2462(a)(2));
            (2) the effectiveness of the rules of origin of the program 
        in--
                    (A) promoting trade benefits to least-developed 
                beneficiary developing countries under the program; and
                    (B) preventing the transshipment of articles from 
                countries that are not designated as beneficiary 
                developing countries under section 502(a)(1) of that 
                Act (19 U.S.C. 2462(a)(1)); and
            (3) the requirements and procedures for designating 
        articles as eligible articles under section 503 of that Act (19 
        U.S.C. 2463), including--
                    (A) the competitive need limitation under 
                subsection (c)(2) of that section; and
                    (B) the process for waiving that limitation under 
                subsection (d) of that section.

SEC. 203. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.

    (a) In General.--Section 505 of the Trade Act of 1974 (19 U.S.C. 
2465) is amended by striking ``December 31, 2020'' and inserting 
``December 31, 2029''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to articles entered on or after the 30th day after the 
        date of the enactment of this Act.
            (2) Retroactive application for certain liquidations and 
        reliquidations.--
                    (A) In general.--Notwithstanding section 514 of the 
                Tariff Act of 1930 (19 U.S.C. 1514) or any other 
                provision of law and subject to subparagraph (B), any 
                entry of a covered article to which duty-free treatment 
                or other preferential treatment under title V of the 
                Trade Act of 1974 (19 U.S.C. 2461 et seq.) would have 
                applied if the entry had been made on December 31, 
                2020, that was made--
                            (i) after December 31, 2020, and
                            (ii) before the effective date specified in 
                        paragraph (1),
                shall be liquidated or reliquidated as though such 
                entry occurred on the effective date specified in 
                paragraph (1).
                    (B) Requests.--A liquidation or reliquidation may 
                be made under subparagraph (A) with respect to an entry 
                only if a request therefor is filed with U.S. Customs 
                and Border Protection not later than 180 days after the 
                date of the enactment of this Act that contains 
                sufficient information to enable U.S. Customs and 
                Border Protection--
                            (i) to locate the entry; or
                            (ii) to reconstruct the entry if it cannot 
                        be located.
                    (C) Payment of amounts owed.--Any amounts owed by 
                the United States pursuant to the liquidation or 
                reliquidation of an entry of a covered article under 
                subparagraph (A) shall be paid, without interest, not 
                later than 90 days after the date of the liquidation or 
                reliquidation (as the case may be).
            (3) Definitions.--In this subsection:
                    (A) Covered article.--The term ``covered article'' 
                means an article from a country that is a beneficiary 
                developing country under title V of the Trade Act of 
                1974 (19 U.S.C. 2461 et seq.) as of the effective date 
                specified in paragraph (1).
                    (B) Enter; entry.--The terms ``enter'' and 
                ``entry'' include a withdrawal from warehouse for 
                consumption.
                                 <all>