[Congressional Record Volume 143, Number 49 (Wednesday, April 23, 1997)]
[Senate]
[Pages S3551-S3552]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KOHL (for himself and Mr. Wyden):
  S. 632. A bill to amend the Internal Revenue Code of 1986 with 
respect to the eligibility of veterans for mortgage revenue bond 
financing, and for other purposes; to the Committee on Finance.


              mortgage revenue bond financing legislation

  Mr. KOHL. Mr. President, I rise today to introduce legislation with 
Senator Wyden that will help Wisconsin and several other States, 
including Oregon, Texas, Alaska, and California, extend one of our most 
successful veterans programs to Persian Gulf war participants and 
others. This bill will amend the eligibility requirements for mortgage 
revenue bond financing for State veterans housing programs.
  Wisconsin uses this tax-exempt bond authority to assist veterans in 
purchasing their first home. Under rules adopted by Congress in 1984, 
this program excluded from eligibility veterans who served after 1977. 
This bill would simply remove that restriction.
  Wisconsin and the other eligible States simply want to maintain a 
principle that we in the Senate have also strived to uphold--that 
veterans of the Persian Gulf war should not be treated less generously 
than those of past wars. This bill will make that possible.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 632

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

     SECTION 1. ELIGIBILITY OF VETERANS FOR MORTGAGE REVENUE BONDS 
                   DETERMINED BY STATES.

       (a) In General.--Paragraph (4) of section 143(l) of the 
     Internal Revenue Code of 1986 (defining qualified veteran) is 
     redesignated as paragraph (6) and amended to read as follows:
       ``(6) Qualified veterans.--For purposes of this subsection, 
     the term ``qualified veteran'' means any veteran--
       ``(A) who meets such requirements as may be imposed by the 
     State law pursuant to which qualified veterans' mortgage 
     bonds are issued,
       ``(B) who applied for the financing before the date 30 
     years after the last date on which such veteran left active 
     service, and
       ``(C) in the case of financing provided by the proceeds of 
     bonds issued during the period beginning July 19, 1984, and 
     ending June 30, 1997, who served on active duty at some time 
     before January 1, 1977.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 2. STATE CAP RESTRICTIONS.

       (a) In General.--Section 143(l) of the Internal Revenue 
     Code of 1986 (relating to additional requirements for 
     qualified veterans' mortgage bonds), as amended by section 
     1(a), is amended by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Subcap restrictions.--
       ``(A) In General.--An issue meets the requirements of this 
     paragraph only if the amount of bonds issued pursuant thereto 
     that is to be used to provide financing to mortgagors who 
     have not served on active duty at some time before January 1, 
     1977, when added to the amount of the aggregate qualified 
     veterans' mortgage bonds previously issued by the State 
     during the calendar year that is to be so used, does not 
     exceed the subcap amount.

[[Page S3552]]

       ``(B) Subcap amount.--
       ``(i) In general.--The subcap amount for any calendar year 
     is an amount equal to the applicable percentage of the State 
     veterans limit for such year.
       ``(ii) Applicable percentage.--For purposes of clause (i), 
     the applicable percentage shall be determined under the 
     following table:
                                                             Applicable
``Calendar year:                                            Percentage:
1998.................................................................10
1999.................................................................20
2000.................................................................30
2001.................................................................40
2002 and thereafter...............................................50.''

       (b) Restriction on Overall State Cap.--Paragraph (3)(B) of 
     section 143(l) of such Code (relating to State veterans 
     limit) is amended by adding at the end the following flush 
     sentence:
     ``But in no event shall the State veterans limit exceed 
     $340,000,000 for any calendar year after 1998.''
       (c) Conforming Amendment.--The matter preceding paragraph 
     (1) of section 143(l) of such Code is amended by striking 
     ``and (3)'' and inserting ``, (3), and (4)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 1997.
                                 ______