[Congressional Record Volume 145, Number 108 (Wednesday, July 28, 1999)]
[Senate]
[Pages S9613-S9620]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      TAXPAYER REFUND ACT OF 1999

                                 ______
                                 

                ABRAHAM (AND OTHERS) AMENDMENT NO. 1390

  (Ordered to lie on the table.)
  Mr. ABRAHAM (for himself and Mr. Hatch, Mr. Shelby, Mr. DeWine, Mr. 
Robb, and Mr. Sessions) submitted an amendment intended to be proposed 
by them to the bill, S. 1429, supra; as follows:

       At the appropriate place in title XI, insert the following:

     SECTION 11.  PLACED-IN-SERVICE DEFINITION.

       (a) Section 1205 is amended by redesignating subsection (d) 
     as subsection (e) and inserting the following:
       (d) Section 29(g) is amended by adding new paragraph (3):
       ``(3) Coal based synthetic fuel facilities.--For purposes 
     of subparagraph (A) of paragraph (1) a facility producing a 
     qualified fuel described in subparagraph (C) of subsection 
     (c)(1) shall be treated as placed in service before July 1, 
     1998, if such facility produced such qualified fuel on or 
     before such date.''

[[Page S9614]]

                                 ______
                                 

                      BINGAMAN AMENDMENT NO. 1391

  (Ordered to lie on the table.)
  Mr. BINGAMAN submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       At the end of the bill add the following:

              DIVISION II--ENERGY SECURITY TAX INCENTIVES

     SECTION 1. DEPRECIATION TREATMENT OF DISTRIBUTED POWER 
                   PROPERTY.

       (a) In General.--Section 168(e)(3)(E) of the Internal 
     Revenue Code (classifying certain property as 15-year 
     property) is amended by striking `and' at the end of clause 
     (ii), striking the period at the end of clause (iii) and 
     inserting, `, and', and by adding the following new clause:
       ``(iv) any distributed power property.''
       (b) Conforming Amendments.--(1) Section 168(i) is amended 
     by adding at the end the following new paragraph:
       ``(15) Distributed power property.--the term `distributed 
     power property' means property--
       ``(A) which is used in the generation of electricity for 
     primary use--
       ``(i) in nonresidential real or residential rental property 
     used in the taxpayer's trade or business, or
       ``(ii) in the taxpayer's industrial manufacturing process 
     or plant activity, with a rated total capacity in excess of 
     500 kilowatts,
       ``(B) which also may produce usable thermal energy or 
     mechanical power for use in a heating or cooling application, 
     as long as at least 40 percent of the total useful energy 
     produced consists of--
       ``(i) with respect to assets described in subparagraph 
     (A)(i), electrical power (whether sold or used by the 
     taxpayer), or
       ``(ii) with respect to assets described in subparagraph 
     (A)(ii), electrical power (whether sold or used by the 
     taxpayer) and thermal or mechanical energy used in the 
     taxpayer's industrial manufacturing process or plant 
     activity,
       ``(C) which is not used to transport primary fuel to the 
     generating facility or to distribute energy within or outside 
     of the facility, and
       ``(D) where it is reasonably expected that not more than 50 
     percent of the produced electricity will be sold to, or used 
     by, unrelated persons.

     For purposes of subparagraph (B), energy output is determined 
     on the basis of expected annual output levels, measured in 
     British thermal units (Btu), using standard conversion 
     factors established by the Secretary.''.
       (2) Subparagraph (B) of section 168(g)(3) is amended by 
     inserting after the item relating to subparagraph (E)(iii) in 
     the table contained therein the following new line:
       ``(E)(iv) 22''.
       (c) Effective Date.--The amendments made by this section 
     are effective for property placed in service on or after the 
     date of enactment.

     SEC. 2. TAX CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
                   PROPERTY.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 48 the following new section:

     ``SEC. 48A. ENERGY CREDIT

       ``(a) In General.--For purposes of section 46, the energy 
     credit for any taxable year is the amount equal to the energy 
     percentage of the basis of each energy property placed in 
     service during such taxable year.
       ``(b) Energy Percentage.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the energy percentage is 10 percent.
       ``(2) Combined heat and power property.--The energy 
     percentage is 8 percent in the case of combined heat and 
     power property.
       ``(3) Period for which credit is allowed for combined heat 
     and power property.--In the case of combined heat and power 
     property, the credit under subsection (a) shall be allowed 
     only for the period beginning on January 1, 2000 and ending 
     on December 31, 2002.
       ``(4) Coordination with rehabilitation.--The energy 
     percentage does not apply to that portion of the basis of any 
     property which is attributable to qualified rehabilitation 
     expenditures.
       ``(5) Transition rules.--Rules similar to the rule of 
     section 48(m) (as in effect on the day before the date of the 
     enactment of the Revenue reconciliation Act of 1990) shall 
     apply for purposes of this subsection
       ``(c) Energy Property Defined.--
       ``(1) In general.--For purposes of this subpart, the term 
     `energy property' means any property--
       ``(A) which is--
       ``(i) solar energy property,
       ``(ii) geothermal energy property, or
       ``(iii) combined heat and power system property,
       ``(B)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such property commences with the taxpayer,
       ``(C) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable, and
       ``(D) which meets--
       ``(i) the performance and quality standards (if any), and 
     the certification requirements (if any), which have been 
     prescribed by the Secretary by regulations (after 
     consultation with the Secretary of Energy or the EPA 
     Administrator, as appropriate), and
       ``(ii) are in effect at the time the property is placed in 
     service.
       ``(2) Exception.--Such term shall not include any property 
     which is public utility property (as defined in section 
     46(f)(5) as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990). The 
     preceding sentence shall not apply to combined heat and power 
     system property.
       ``(d) Definitions Relating to Types of Energy Property.--
     For purposes of this section--
       ``(1) Solar energy property.--The term `solar energy 
     property' means equipment which uses solar energy--
       ``(A) to generate electricity,
       ``(B) to heat or cool (or provide hot water for use in) a 
     structure, or
       ``(C) to provide solar process heat.
       ``(2) Geothermal energy property.--The term `geothermal 
     energy property' means equipment used to produce, distribute, 
     or use energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2)), but only, in the case of 
     electricity generated by geothermal power, up to (but not 
     including) the electrical transmission stage.
       ``(3) Combined heat and power system property--
       ``(A) In general.--The term `combined heat and power system 
     property' means property comprising a system--
       ``(i) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(ii) which has an electrical capacity of more than 50 
     kilowatts or a mechanical energy capacity of more than 67 
     horsepower or an equivalent combination of electrical and 
     mechanical energy capacities,
       ``(iii) which produces--
       ``(I) at least 20 percent of its total useful energy in the 
     form of thermal energy, and
       ``(II) at least 20 percent of its total energy in the form 
     of electrical or mechanical power (or a combination thereof), 
     and
       ``(iv) the energy efficiency percentage of which exceeds 60 
     percent (70 percent in the case of a system with an 
     electrical capacity in excess of 67,000 horsepower (or a 
     combination thereof)).
       ``(B) Special rules.--
       ``(i) Energy efficiency percentage.--For purpose of 
     subparagraph (A)(iv), the energy efficiency percentage of a 
     system is the fraction--
       ``(I) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and
       ``(II) the denominator of which is the lower heating value 
     of the primary fuel source for the system.
       ``(ii) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under subparagraph 
     (A)(iii) shall be determined on a Btu basis.
       ``(iii) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(iv) Accounting rule for public utility property.--In the 
     case that combined heat and power system property is public 
     utility property (as defined in section 46(f)(5) as in effect 
     on the day before the date of the enactment of the Revenue 
     Reconciliation Act of 1990), the taxpayer may claim the 
     credit under subsection (a)(1) only, if with resect to such 
     property, the taxpayer uses a normalization method of 
     accounting.
       ``(v) Depreciation.--No credit shall be allowed for any 
     combined heat and power system property unless the taxpayer 
     elects to treat such property for purposes of section 168 as 
     having a class life of not less than 22 years.
       ``(e) Special Rules.--For purposes of this section--
       ``(1) Special rule for property financed by subsidized 
     energy financing or industrial development bonds--
       ``(A) Reduction of basis.--For purposes of applying the 
     energy percentage to any property, if such property is 
     financed in whole or in part by--
       ``(i) subsidized energy financing, or
       ``(ii) the proceeds of a private activity bond (within the 
     meaning of section 141) the interest on which is exempt from 
     tax under section 103, the amount taken into account as the 
     basis of such property shall not exceed the amount which (but 
     for this subparagraph (B).
       ``(B) Determination of fraction.--For purposes of 
     subparagraph (A), the fraction determined under this 
     subparagraph is 1 reduced by a fraction--
       ``(ii) the numerator of which is that portion of the basis 
     of the property which is allocable to such financing or 
     proceeds, and
       ``(ii) the denominator of which is the basis of the 
     property.
       ``(C) Subsidized energy financing.--For purposes of 
     subparagraph (A), the term `subsidized energy financing' 
     means financing provided under a Federal, State, or local 
     program a principal purpose of which is to provide subsidized 
     financing for projects designed to conserve or produce 
     energy.
       ``(2) Certain progress expenditures rule made applicable.--
     Rules similar to the rules of subsections (c)(4) and(d) 
     section 46 (as in

[[Page S9615]]

     effect on the day before the date of the enactment of the 
     Revenue Reconciliation Act of 1990) shall apply for purposes 
     of this section.'.
       ``(b) Conforming Amendments--
       ``(1) Section 48 of such Code is amended to read as 
     follows:

     ``SEC. 48. REFORESTATION CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     reforestation a credit for any taxable year is 10 percent of 
     the portion of the amortizable

     basis of any qualified timber property which was acquired 
     during such taxable year and which is taken into account 
     under section 194 (after the application of section 
     194(b)(1)).
       ``(b) Definitions.--For purposes of this subpart the terms 
     `amortizable basis' and `qualified timber property' have the 
     respective meanings given to such terms by section 194.''.
       (2) Subsection (d) section 39 of such Code is amended by 
     adding at the end the following new paragraph:
       ``(9) No carryback of energy credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the energy credit 
     determined under section 48A, except for the credit 
     determined with respect to solar energy property and 
     geothermal energy property, may be carried back to a taxable 
     year ending before the date of the enactment of section 
     48A.''.
       (3) Paragraph (3) of section 50(c) of such Code is amended 
     by adding at the end the following flush sentence:

     ``In the case of the energy credit, the preceding sentence 
     shall apply only to so much of such credit as relates to 
     solar energy property and geothermal property (as such terms 
     as defined in section 48A(e)).''.
       (4) Subclause (III) of section 29(b)(3)(A)(i) of such Code 
     is amended by striking ``section 48(a)(4)(C)'' and inserting 
     ``section 48A(g)(1)(C)''.
       (5) Subparagraph (E) of section 50(a)(2) of such Code is 
     amended by striking ``section 48(a)(5)'' and inserting 
     ``section 48A(g)(2)''.
       (6) Subparagraph (B) of section 168(e)(3) of such Code is 
     amended--
       (A) in clause (vi)(I) by striking ``section 48(a)(3)'' and 
     inserting ``paragraphs (1) and (2) of section 48A(d)'', and
       (B) in the last sentence by striking ``section 48(a)(3)'' 
     and inserting ``section 48A(c)(2)''.
       (7) Subparagraph (E) of section 168(e)(3) of such Code, as 
     amended by section 803(a), is further amended by striking 
     ``and'' at the end of clause (iii), by striking the period at 
     the end of clause (iv) and inserting ``, and'', and by 
     inserting after clause (iv) the following new clause:
       ``(v) any combined heat and power system property (as 
     defined in section 48A(d)(4)) for which a credit is followed 
     under section 48A and which, but for this clause, would have 
     a recovery period of less than 15 years.''.
       (8) The table contained in subparagraph (B) of section 
     168(g)(3) of such Code, as amended by section 803(b)(2), is 
     further amended by adding at end the following ``(E)(v) 11.''
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 of such Code is 
     amended by striking the item relating to section 48 and 
     inserting the following new items:
       ``Sec. 48. Reforestation credit.
       ``Sec. 48A Energy credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 1999, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).
                                 ______
                                 

                       SPECTER AMENDMENT NO. 1392

  (Order to lie on the table.)
  Mr. SPECTER submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       At the end of title XI, insert the following:

     SEC. ____. BIOTECHNOLOGY INVESTMENT TAX CREDIT.

       (a) Allowance of Credit.--Section 46(a) (relating to amount 
     of investment credit) is amended by striking ``and'' at the 
     end of paragraph (2), by striking the period at the end of 
     paragraph (3) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(4) the biotechnology investment credit.''
       (b) Amount of Credit.--Section 48 is amended by adding at 
     the end the following new subsection:
       ``(c) Biotechnology Investment Credit.--
       ``(1) In general.--For purposes of section 46, the 
     biotechnology investment credit for any taxable year is an 
     amount equal to 10 percent of the qualified investment for 
     such taxable year.
       ``(2) Qualified investment.--
       ``(A) In general.--For purposes of paragraph (1), the 
     qualified investment for any taxable year is the aggregate 
     of--
       ``(i) the applicable percentage of the basis of each new 
     biotechnology property placed in service by the taxpayer 
     during such taxable year, plus
       ``(ii) the applicable percentage of the cost of each used 
     biotechnology property placed in service by the taxpayer 
     during such taxable year.
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage for any property shall be 
     determined under paragraphs (2) and (7) of section 46(c) (as 
     in effect on the day before the date of the enactment of the 
     Revenue Reconciliation Act of 1990).
       ``(C) Certain rules made applicable.--The provisions of 
     subsections (b) and (c) of section 48 (as in effect on the 
     day before the date of the enactment of the Revenue 
     Reconciliation Act of 1990) shall apply for purposes of this 
     paragraph.
       ``(3) Biotechnology property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `biotechnology property' means 
     any property--
       ``(i) which is used in connection with applicable 
     biotechnology research, and
       ``(ii) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable.
       ``(B) Applicable biotechnology research.--The term 
     `applicable biotechnology research' means the use of 
     applicable technologies to benefit society by improving human 
     healthcare through--
       ``(i) producing or modifying products, and developing 
     microorganisms, for specific uses,
       ``(ii) identifying targets for small molecule 
     pharmaceutical development, and
       ``(iii) transforming biological systems into useful 
     processes and products.
       ``(C) Applicable technologies.--The term `applicable 
     technologies' means recombinant DNA techniques, biochemistry, 
     molecular and cellular biology, genetics and genetic 
     engineering, biological cell fusion techniques, and other 
     bioprocesses which use living organisms, or parts of such 
     organisms, for the purposes described in subparagraph (B).
       ``(4) Coordination with other credits.--No credit shall be 
     determined under this subsection for any amount taken into 
     account in determining the amount of any other credit 
     allowable under this chapter. A taxpayer may elect which 
     credit under this chapter shall apply to any amount.
       ``(5) Certain progress expenditure rules made applicable.--
     Rules similar to rules of subsections (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this subsection.''
       (c) Technical Amendments.--
       (1) Subparagraph (C) of section 49(a)(1) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and'', 
     and by adding at the end the following new clause:
       ``(iv) the basis of any new biotechnology property and the 
     cost of any used biotechnology property.''
       (2) Subparagraph (E) of section 50(a)(2) is amended by 
     striking ``section 48(a)(5)(A)'' and inserting ``section 48 
     (a)(5) or (c)(5)''.
       (3) Paragraph (5) of section 50(a) is amended by adding at 
     the end the following new subparagraph:
       ``(D) Special rules for certain property.--In the case of 
     any biotechnology property which is 3-year property (within 
     the meaning of section 168(e))--
       ``(i) the percentage set forth in clause (ii) of the table 
     contained in paragraph (1)(B) shall be 66 percent,
       ``(ii) the percentage set forth in clause (iii) of such 
     table shall be 33 percent, and
       ``(iii) clauses (iv) and (v) of such table shall not 
     apply.''
       (4)(A) The section heading for section 48 is amended to 
     read as follows:

     ``SEC. 48. OTHER CREDITS.''

       (B) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     the item relating to section 48 and inserting the following:

``Sec. 48. Other Credits.''
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     1999.
                                 ______
                                 

                    GREGG AMENDMENTS NOS. 1393-1394

  (Ordered to lie on the table.)
  Mr. GREGG submitted two amendments intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

                           Amendment No. 1393

       On page 235, strike lines 15 through 19, and insert:
       (1) In general.--Section 2031(c)(8)(A) (defining land 
     subject to a qualified conservation easement) is amended by 
     striking clause (i) and by redesignating clauses (ii) and 
     (iii) as clauses (i) and (ii), respectively.
                                  ____


                           Amendment No. 1394

       On page 235, strike lines 15 through 19, and insert:
       (1) In general.--Clause (i) of section 2031(c)(8)(A) 
     (defining land subject to a conservation easement) is 
     amended--
       (A) by striking ``25 miles'' both places it appears and 
     inserting ``50 miles'', and
       (B) striking ``10 miles'' and inserting ``25 miles''.
                                 ______
                                 

                SESSIONS (AND OTHERS) AMENDMENT NO. 1395

  (Ordered to lie on the table.)
  Mr. SESSIONS (for himself, Mr. Coverdell, and Mr. Craig) submitted an 
amendment intended to be proposed by him to the bill, S. 1429, supra; 
as follows:

       On page 371, between lines 16 and 17, insert the following:

[[Page S9616]]

     SEC. ____. CAPITAL GAIN TREATMENT UNDER SECTION 631(B) TO 
                   APPLY WHETHER OR NOT OWNER RETAINS ECONOMIC 
                   INTEREST.

       (a) In General.--Subsection (b) of section 631 (relating to 
     disposal of timber with a retained economic interest) is 
     amended--
       (1) by inserting ``and Outright Sales of Timber'' after 
     ``Economic Interest'' in the subsection heading, and
       (2) by striking ``such owner retains an economic interest 
     in such timber'' and inserting ``such owner either retains an 
     economic interest in such timber or makes an outright sale of 
     such timber''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to sales after the date of the enactment of this 
     Act.
                                 ______
                                 

                        LEAHY AMENDMENT NO. 1396

  (Ordered to lie on the table.)
  Mr. LEAHY submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       At the end of title XI, insert the following:

     SEC. ____. DEDUCTION FOR COSTS OF MAKING COMPUTERS AND 
                   COMPUTER SOFTWARE YEAR 2000 COMPLIANT.

       (a) In General.--
       (1) Property placed in service in 1999.--A taxpayer may 
     elect to treat the cost of a business Y2K asset placed in 
     service during the taxpayer's first taxable year beginning in 
     1999 as an expense which is not chargeable to capital 
     account. The cost so treated shall be allowed as a deduction 
     from gross income for purposes of the Internal Revenue Code 
     of 1986.
       (2) Property placed in service in 1997 or 1998.--A taxpayer 
     may elect to deduct from gross income an amount equal to the 
     unrecovered basis of a business Y2K asset placed in service 
     during the 2 taxable years preceding the first taxable year 
     beginning in 1999 and which is otherwise subject to 
     depreciation under such Code.
       (b) Limitations.--
       (1) In general.--The aggregate amount allowed as a 
     deduction under subsection (a) shall not exceed $40,000.
       (2) Application of business limitations of section 179.--
     Rules similar to the rules of paragraphs (2), (3), and (4) of 
     section 179(b) of such Code shall apply for purposes of this 
     section. For purposes of the preceding sentence, the cost of 
     property to which the limitation in paragraph (2) of such 
     section 179(b) applies shall be the sum of--
       (A) the amounts elected under subsection (a)(1) with 
     respect to property placed in service during the taxpayer's 
     first taxable year beginning in 1999, and
       (B) the amounts elected under subsection (a)(2) with 
     respect to the unrecovered basis of business Y2K assets 
     placed in service during the 2 taxable years preceding the 
     first taxable year beginning in 1999.
       (c) Definitions.--For purposes of this section--
       (1) Business y2k asset.--The term ``business Y2K asset'' 
     means an asset acquired by purchase for use in the active 
     conduct of a trade or business which is--
       (A) any computer acquired to replace a computer where such 
     replacement is necessary because of the year 2000 computer 
     conversion problem, and
       (B) any of the following items which are of a character 
     subject to the allowance for depreciation under such Code:
       (i) the modification of computer software to address the 
     year 2000 computer conversion problem, and
       (ii) computer software which is year 2000 compliant 
     acquired to replace computer software which is not so 
     compliant.
       (2) Computer.--The term ``computer'' means a computer or 
     peripheral equipment (as defined by section 168(i)(2)(B)) of 
     such Code.
       (3) Computer software.--The term ``computer software'' has 
     the meaning given to such term by section 167(f) of such 
     Code.
       (4) Unrecovered basis.--The term ``unrecovered basis'' 
     means the adjusted basis of the business Y2K asset determined 
     as of the close of the last taxable year beginning before 
     January 1, 1999.
       (d) Special Rules.--
       (1) In general.--Rules similar to the rules of subsections 
     (c) and (d) (other than paragraph (1) thereof) of section 179 
     of such Code shall apply for purposes of this section.
       (2) Treatment as deduction under section 179.--For purposes 
     of the Internal Revenue Code of 1986, the deduction allowed 
     under this section shall be treated in the same manner as a 
     deduction allowed under section 179 of such Code.
       (3) Ordering rule.--For purposes of section 179 of such 
     Code, subsection (b)(3)(C) of such section shall be applied 
     without regard to the deduction allowed under this section.
                                 ______
                                 

                       McCAIN AMENDMENT NO. 1397

       Mr. McCAIN proposed an amendment to the bill, S. 1429, 
     supra; as follows:

       At the appropriate place, add the following:
    TITLE ____--EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED CHILDREN
                 Subtitle A--Educational Opportunities

     SEC. ____01. PURPOSES.

       The purposes of this title are--
       (1) to assist States to--
       (A) give children from low-income families the same choices 
     among all elementary and secondary schools and other academic 
     programs as children from wealthier families already have;
       (B) improve schools and other academic programs by giving 
     parents in low-income families increased consumer power to 
     choose the schools and programs that the parents determine 
     best fit the needs of their children; and
       (C) more fully engage parents in their children's 
     schooling; and
       (2) to demonstrate, through a 3-year national grant 
     program, the effects of a voucher program that gives parents 
     in low-income families--
       (A) choice among public, private, and religious schools for 
     their children; and
       (B) access to the same academic options as parents in 
     wealthy families have for their children.

     SEC. ____02. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this title (other than section ____10) 
     $1,800,000,000 for each of fiscal years 2001 through 2003.
       (b) Evaluation.--There is authorized to be appropriated to 
     carry out section ____10 $17,000,000 for fiscal years 2001 
     through 2004.

     SEC. ____03. PROGRAM AUTHORITY.

       (a) In General.--The Secretary shall make grants to States, 
     from allotments made under section ____04 to enable the 
     States to carry out educational choice programs that provide 
     scholarships, in accordance with this title.
       (b) Limit on Federal Administrative Expenditures.--The 
     Secretary may reserve not more than $1,000,000 of the amounts 
     appropriated under section ____02(a) for a fiscal year to pay 
     for the costs of administering this title.

     SEC. ____04. ALLOTMENTS TO STATES.

       (a) Allotments.--The Secretary shall make the allotments to 
     States in accordance with a formula specified in regulations 
     issued in accordance with subsection (b). The formula shall 
     provide that the Secretary shall allot to each State an 
     amount that bears the same relationship to the amounts 
     appropriated under section ____02(a) for a fiscal year (other 
     than funds reserved under section ____03(b)) as the number of 
     covered children in the State bears to the number of covered 
     children in all such States.
       (b) Formula.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     specifying the formula referred to in subsection (a).
       (c) Limit on State Administrative Expenditures.--The State 
     may reserve not more than 1 percent of the funds made 
     available through the State allotment to pay for the costs of 
     administering this title.
       (d) Definition.--In this section, the term ``covered 
     child'' means a child who is enrolled in a public school 
     (including a charter school) that is an elementary school or 
     secondary school.

     SEC. ____05. ELIGIBLE SCHOOLS.

       (a) Eligibility.--
       (1) In general.--Schools identified by a State under 
     paragraph (2) shall be considered to be eligible schools 
     under this title.
       (2) Determination.--Not later than 180 days after the date 
     the Secretary issues regulations under section ____04(b), 
     each State shall identify the public elementary schools and 
     secondary schools in the State that are at or below the 25th 
     percentile for academic performance of schools in the State.
       (b) Performance.--The State shall determine the academic 
     performance of a school under this section based on such 
     criteria as the State may consider to be appropriate.

     SEC. ____06. SCHOLARSHIPS.

       (a) In General.--
       (1) Scholarship awards.--With funds awarded under this 
     title, each State awarded a grant under this title shall 
     provide scholarships to the parents of eligible children, in 
     accordance with subsections (b) and (c). The State shall 
     ensure that the scholarships may be redeemed for elementary 
     or secondary education for the children at any of a broad 
     variety of public and private schools, including religious 
     schools, in the State.
       (2) Scholarship amount.--The amount of each scholarship 
     shall be $2000 per year.
       (3) Tax exemption.--Scholarships awarded under this title 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.
       (b) Eligible Children.--To be eligible to receive a 
     scholarship under this title, a child shall be--
       (1) a child who is enrolled in a public elementary school 
     or secondary school that is an eligible school; and
       (2) a member of a family with a family income that is not 
     more than 200 percent of the poverty line.
       (c) Award Rules.--
       (1) Priority.--In providing scholarships under this title, 
     the State shall provide scholarships for eligible children 
     through a lottery system administered for all eligible 
     schools in the State by the State educational agency.
       (2) Continuing eligibility.--Each State receiving a grant 
     under this title to carry out an educational choice program 
     shall provide a scholarship in each year of the program to 
     each child who received a scholarship during the previous 
     year of the program, unless--
       (A) the child no longer resides in the area served by an 
     eligible school;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, 200 percent of the poverty line; or

[[Page S9617]]

       (D) the child is expelled or convicted of a felony, 
     including felonious drug possession, possession of a weapon 
     on school grounds, or a violent act against an other student 
     or a member of the school's faculty.

     SEC. ____07. USES OF FUNDS.

       Any scholarship awarded under this title for a year shall 
     be used--
       (1) first, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not the school to which the 
     child would be assigned in the absence of a program under 
     this title;
       (2) second, if the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the State determines is capable of providing such 
     services and has an appropriate refund policy; and
       (3) finally, for educational programs that help the 
     eligible child achieve high levels of academic excellence in 
     the school attended by the eligible child, if the eligible 
     child chooses to attend a public school.

     SEC. ____08. STATE REQUIREMENT.

       A State that receives a grant under this title shall allow 
     lawfully operating public and private elementary schools and 
     secondary schools, including religious schools, if any, 
     serving the area involved to participate in the program.

     SEC. ____09. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, 
     if a local educational agency in the State would, in the 
     absence of an educational choice program that is funded under 
     this title, provide services to a participating eligible 
     child under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.), the State 
     shall ensure the provision of such services to such child.
       (b) Individuals With Disabilities.--Nothing in this title 
     shall be construed to affect the requirements of part B of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this title shall be 
     considered to aid families, not institutions. For purposes of 
     determining Federal assistance under Federal law, a parent's 
     expenditure of scholarship funds under this title at a school 
     or for supplementary academic services shall not constitute 
     Federal financial aid or assistance to that school or to the 
     provider of supplementary academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this title shall, as a condition of 
     participation under this title, comply with the provisions of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) and section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       (B) Regulations.--The Secretary shall promulgate 
     regulations to implement the provisions of subparagraph (A), 
     taking into account the purposes of this title and the 
     nature, variety, and missions of schools and providers that 
     may participate in providing services to children under this 
     title.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to a State or to the parents of any child under this 
     title in determining whether to provide any other funds from 
     Federal, State, or local resources, or in determining the 
     amount of such assistance, to such State or to a school 
     attended by such child.
       (e) No Discretion.--Nothing in this title shall be 
     construed to authorize the Secretary to exercise any 
     direction, supervision, or control over the curriculum, 
     program of instruction, administration, or personnel of any 
     educational institution or school participating in a program 
     under this title.

     SEC. ____10. EVALUATION.

       The Comptroller General of the United States shall conduct 
     an evaluation of the program authorized by this title. Such 
     evaluation shall, at a minimum--
       (1) assess the implementation of educational choice 
     programs assisted under this title and their effect on 
     participants, schools, and communities in the school 
     districts served, including parental involvement in, and 
     satisfaction with, the program and their children's 
     education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC. ____11. ENFORCEMENT.

       (a) Regulations.--The Secretary shall promulgate 
     regulations to enforce the provisions of this title.
       (b) Private Cause.--No provision or requirement of this 
     title shall be enforced through a private cause of action.

     SEC. ____12. DEFINITIONS.

       In this title:
       (1) Charter school.--The term ``charter school'' has the 
     meaning given the term in section 10310 of the Elementary and 
     Secondary Education Act of 1965 (as redesignated in section 
     3(g) of Public Law 105-278; 112 Stat. 2687).
       (2) Elementary school; local educational agency; parent; 
     secondary school; state educational agency.--The terms 
     ``elementary school'', ``local educational agency'', 
     ``parent'', ``secondary school'', and ``State educational 
     agency'' have the meanings given the terms in section 14101 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 8801).
       (3) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (5) State.--The term ``State'' means each of the 50 States.
                     Subtitle B--Revenue Provisions

     SEC. ____21. PHASEOUT OF OIL AND GAS EXPENSING OF DRILLING 
                   AND DEVELOPMENT COSTS.

       Section 263(c) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new sentence: 
     ``This subsection shall not apply to the applicable 
     percentage of costs incurred in taxable years beginning after 
     December 31, 1999. For purposes of the preceding sentence, 
     the applicable percentage for any taxable year shall be 
     determined in accordance with the following table:

The applicable percentage is--ear beginning in--
  2000..........................................................20 ....

  2001..........................................................40 ....

  2002..........................................................60 ....

  2003..........................................................80 ....

  After 2003.................................................100.''....

     SEC. ____22. SUNSET OF ALCOHOL FUELS INCENTIVES.

       (a) In General.--The following provisions of the Internal 
     Revenue Code of 1986 are each repealed:
       (1) Section 40 (relating to alcohol used as fuel).
       (2) Section 4041(b)(2) (relating to qualified methanol and 
     ethanol).
       (3) Section 4041(k) (relating to fuels containing alcohol).
       (4) Section 4081(c) (relating to taxable fuels mixed with 
     alcohol).
       (5) Section 4091(c) (relating to reduced rate of tax for 
     aviation fuel in alcohol mixture, etc.).
       (6) Section 6427(f) (relating to gasoline, diesel fuel, 
     kerosene, and aviation fuel used to produce certain alcohol 
     fuels).
       (7) The headings 9901.00.50 and 9901.00.52 of the 
     Harmonized Tariff Schedule of the United States (19 U.S.C. 
     3007).
       (b) Effective Date.--The repeals made by subsection (a) 
     shall take effect on October 1, 1999.

     SEC. ____23. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

       Section 43 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following:
       ``(f) Termination.--In the case of taxable years beginning 
     after December 31, 1999, the enhanced oil recovery credit is 
     zero.''.

     SEC. ____24. REPEAL OF UNLIMITED PASSIVE LOSS DEDUCTIONS FOR 
                   OIL AND GAS PROPERTIES.

       Section 469(c)(3) of the Internal Revenue Code of 1986 
     (relating to working interests in oil and gas property) is 
     amended by adding at the end the following:
       ``(C) Termination.--This paragraph shall not apply with 
     respect to any taxable year beginning after December 31, 
     1999.''

     SEC. 25____. SUGAR PROGRAM.

       (a) Elimination of Authority To Use Sugar as Collateral for 
     Loans.--Section 156 of the Agricultural Market Transition Act 
     (7 U.S.C. 7272) is amended--
       (1) in subsection (d)--
       (A) by striking ``(d)'' and all that follows through ``A 
     loan under'' and inserting ``(d) Term of Loans.--A loan 
     under'';
       (B) by striking paragraph (2); and
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively, and indenting 
     appropriately;
       (2) by striking subsection (g); and
       (3) by redesignating subsections (h) and (i) as subsections 
     (g) and (h), respectively.
       (b) Elimination of Sugar Price Support and Production 
     Adjustment Programs.--
       (1) In general.--Notwithstanding any other provision of 
     law--
       (A) a processor of any of the 2003 or subsequent crops of 
     sugarcane or sugar beets shall not be eligible for a loan 
     under any provision of law with respect to the crop; and
       (B) the Secretary of Agriculture may not make price support 
     available, whether in the form of a loan, payment, purchase, 
     or other operation, for any of the 2003 and subsequent crops 
     of sugar beets and sugarcane by using the funds of the 
     Commodity Credit Corporation or other funds available to the 
     Secretary.
       (2) Termination of marketing quotas and allotments.--
       (A) In general.--Part VII of subtitle B of title III of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) 
     is repealed.
       (B) Conforming amendment.--Section 344(f)(2) of the 
     Agricultural Adjustment Act

[[Page S9618]]

     of 1938 (7 U.S.C. 1344(f)(2)) is amended by striking ``sugar 
     cane for sugar, sugar beets for sugar,''.
       (3) General powers.--
       (A) Designated nonbasic agricultural commodities.--Section 
     201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is 
     amended by striking ``milk, sugar beets, and sugarcane'' and 
     inserting ``and milk''.
       (B) Powers of commodity credit corporation.--Section 5(a) 
     of the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714c(a)) is amended by inserting after ``agricultural 
     commodities'' the following: ``(other than sugar)''.
       (C) Section 32 activities.--Section 32 of the Act of August 
     24, 1935 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), is 
     amended in the second sentence of the first paragraph--
       (i) in paragraph (1), by inserting ``(other than sugar)'' 
     after ``commodities''; and
       (ii) in paragraph (3), by inserting ``(other than sugar)'' 
     after ``commodity''.
       (4) Transition provisions.--This subsection and the 
     amendments made by this subsection shall not affect the 
     liability of any person under any provision of law as in 
     effect before the application of this subsection and the 
     amendments made by this subsection.
       (5) Crops.--This subsection and the amendments made by this 
     subsection shall apply beginning with the 2003 crop of sugar 
     beets and sugarcane.
                                 ______
                                 

                ABRAHAM (AND OTHERS) AMENDMENT NO. 1398

  Mr. ABRAHAM (for himself, Mr. Domenici, Mr. Ashcroft, Mr. Crapo, Mr. 
Enzi, Mr. Santorum, Mr. Grams, Mr. Allard, Mr. Frist, and Mr. 
Coverdell) proposed an amendment to the bill, S. 1429, supra; as 
follows:

       At the end of the bill, add the following:

TITLE ____--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. ____02. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,859,500,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. ____03. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2),''.

     SEC. ____04. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt obligation issued on a 
     discount basis that is not redeemable before maturity at the 
     option of the holder of the obligation is an amount equal to 
     the sum of--
       ``(i) the original issue price of the obligation; plus
       ``(ii) the portion of the discount on the obligation 
     attributable to periods before the beginning of such month.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,618,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,488,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,349,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,045,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,698,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,301,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $125,000,000,000;
       ``(B) for fiscal year 2000, $147,000,000,000;
       ``(C) for fiscal year 2001, $155,000,000,000;
       ``(D) for fiscal year 2002, $163,000,000,000;
       ``(E) for fiscal year 2003, $172,000,000,000;
       ``(F) for fiscal year 2004, $181,000,000,000;
       ``(G) for fiscal year 2005, $195,000,000,000;
       ``(H) for fiscal year 2006, $205,000,000,000;
       ``(I) for fiscal year 2007, $217,000,000,000;
       ``(J) for fiscal year 2008, $228,000,000,000; and
       ``(K) for fiscal year 2009, $235,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the

[[Page S9619]]

     amount calculated under subparagraph (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth (as measured by real GDP) for each of 
     the most recently reported quarter and the immediately 
     preceding quarter is less than 1 percent, the limit on the 
     debt held by the public established in this section is 
     suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(f) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means legislation that--
       ``(A) implements structural social security reform and 
     significantly extends the solvency of the Social Security 
     Trust Fund; and
       ``(B) includes a provision stating the following: `For 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act of 1999, this Act constitutes social security 
     reform legislation'.

     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this 
     paragraph.''.

     SEC. ____05. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. ____06. SENSE OF THE SENATE ON MEDICARE RESERVE FUND.

       (a) Findings.--The Senate finds that--
       (1) the Congressional budget plan has $505,000,000,000 over 
     ten years in unallocated budget surpluses that could be used 
     for long-term medicare reform, other priorities, or debt 
     reduction;
       (2) the Congressional budget resolution for fiscal year 
     2000 already has set aside $90,000,000,000 over ten years 
     through a reserve fund for long-term medicare reform 
     including prescription drug coverage;
       (3) the President estimates that his medicare proposal will 
     cost $46,000,000,000 over 10 years; and
       (4) thus the Congressional budget resolution provides more 
     than adequate resources for medicare reform, including 
     prescription drugs.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Congressional budget resolution for fiscal year 2000 
     provides a sound framework for allocating resources to 
     medicare to modernize medicare benefits, improve the solvency 
     of the program, and improve coverage of prescription drugs.

     SEC. ____07. SUNSET.

       This title and the amendments made by this title shall 
     expire on April 30, 2010.
                                 ______
                                 
      ABRAHAM (AND WYDEN) AMENDMENT NO. 1399
  (Ordered to lie on the table.)
  Mr. ABRAHAM (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by them to the bill, S. 1429, supra; as 
follows:

       On page 371, between lines 16 and 17, insert:

     SEC. ____. EXPANSION OF DEDUCTION FOR COMPUTER DONATIONS TO 
                   SCHOOLS.

       (a) Extension of Age of Eligible Computers.--Section 
     170(e)(6)(B)(ii) (defining qualified elementary or secondary 
     educational contribution) is amended--
       (1) by striking ``2 years'' and inserting ``3 years'', and
       (2) by inserting ``for the taxpayer's own use'' after 
     ``constructed by the taxpayer''.
       (b) Reacquired Computers Eligible for Donation.--
       (1) In general.--Section 170(e)(6)(B)(iii) (defining 
     qualified elementary or secondary educational contribution) 
     is amended by inserting ``, the person from whom the donor 
     reacquires the property,'' after ``the donor''.
       (2) Conforming amendment.--Section 170(e)(6)(B)(ii) is 
     amended by inserting ``or reaquired'' after ``acquired''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years ending 
     after the date of the enactment of this Act.

     SEC. ____. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits), as amended 
     by this Act, is amended by adding at the end the following:

     ``SEC. 45E. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS.

       ``(a) General Rule.--For purposes of section 38, the school 
     computer donation credit determined under this section is an 
     amount equal to 30 percent of the qualified elementary or 
     secondary educational contributions made by the taxpayer 
     during the taxable year.
       ``(b) Qualified Elementary or Secondary Educational 
     Contribution.--For purposes of this section, the term 
     `qualified elementary or secondary educational contribution' 
     has the meaning given such term by section 170(e)(6)(B), 
     except that such term shall include the contribution of a 
     computer (as defined in section 168(i)(2)(B)(ii)) only if 
     computer software (as defined in section 197(e)(3)(B)) that 
     serves as a computer operating system has been lawfully 
     installed in such computer.
       ``(c) Increased Percentage for Contributions to Schools in 
     Empowerment Zones, Enterprise Communities, and Indian 
     Reservations.--In the case of a qualified elementary or 
     secondary educational contribution to an educational 
     organization or entity located in an empowerment zone or 
     enterprise community designated under section

[[Page S9620]]

     1391 or an Indian reservation (as defined in section 
     168(j)(6)), subsection (a) shall be applied by substituting 
     `50 percent' for `30 percent'.
       ``(d) Certain Rules Made Applicable.--For purposes of this 
     section, rules similar to the rules of paragraphs (1) and (2) 
     of section 41(f), and section 170(e)(6)(A), shall apply.
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning on or after the date which is 3 years after 
     the date of the enactment of the Taxpayer Refund Act of 
     1999.''
       (b) Current Year Business Credit Calculation.--Section 
     38(b) (relating to current year business credit), as amended 
     by this Act, is amended by striking ``plus'' at the end of 
     paragraph (12), by striking the period at the end of 
     paragraph (13) and inserting ``, plus'', and by adding at the 
     end the following:
       ``(14) the school computer donation credit determined under 
     section 45E(a).''
       (c) Disallowance of Deduction by Amount of Credit.--Section 
     280C (relating to certain expenses for which credits are 
     allowable) is amended by adding at the end the following:
       ``(d) Credit for School Computer Donations.--No deduction 
     shall be allowed for that portion of the qualified elementary 
     or secondary educational contributions (as defined in section 
     45E(b)) made during the taxable year that is equal to the 
     amount of credit determined for the taxable year under 
     section 45E(a). In the case of a corporation which is a 
     member of a controlled group of corporations (within the 
     meaning of section 52(a)) or a trade or business which is 
     treated as being under common control with other trades or 
     businesses (within the meaning of section 52(b)), this 
     subsection shall be applied under rules prescribed by the 
     Secretary similar to the rules applicable under subsections 
     (a) and (b) of section 52.''
       (d) Limitation on Carryback.--Subsection (d) of section 39 
     (relating to carryback and carryforward of unused credits) is 
     amended by adding at the end the following:
       ``(9) No carryback of school computer donation credit 
     before effective date.--No amount of unused business credit 
     available under section 45E may be carried back to a taxable 
     year beginning on or before the date of the enactment of this 
     paragraph.''
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by this 
     Act, is amended by inserting after the item relating to 
     section 45D the following:

``Sec. 45E. Credit for computer donations to schools.''

       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to contributions 
     made in taxable years beginning after the date of the 
     enactment of this Act.
       (2) Certain contributions.--The amendments made by this 
     section shall apply to contributions made to an organization 
     or entity not described in section 45E(c) of the Internal 
     Revenue Code of 1986, as added by subsection (a), in taxable 
     years beginning after the date that is one year after the 
     date of the enactment of this Act.
                                 ______
                                 

                        KERRY AMENDMENT NO. 1400

  (Ordered to be lie on the table.)
  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       At the end of title XI, add the following:

     SEC. ____. LOANS USED TO ACQUIRE PRINCIPAL RESIDENCES FOR 
                   FIRST-TIME HOMEBUYERS.

       (a) Loans Used To Acquire Principal Residences for First-
     Time Homebuyers.--
       (1) Individual retirement plans.--Section 408(e) (relating 
     to tax treatment of accounts and annuities) is amended by 
     adding at the end thereof the following new paragraph:
       ``(7) Loans used to purchase a home for first-time 
     homebuyers.--
       ``(A) In general.--Paragraph (3) shall not apply to any 
     qualified home purchase loan made by an individual retirement 
     plan.
       ``(B) Qualified home purchase loan.--For purposes of this 
     paragraph, the term `qualified home purchase loan' means a 
     loan--
       ``(i) made by the trustee of an individual retirement plan 
     at the direction of the individual on whose behalf such plan 
     is established,
       ``(ii) the proceeds of which are used for the acquisition 
     of a dwelling unit which within a reasonable period of time 
     (determined at the time the loan is made) is to be used as 
     the principal residence for a first-time homebuyer,
       ``(iii) which by its terms requires interest on the loan to 
     be paid not less frequently than monthly,
       ``(iv) which by its terms requires repayment in full not 
     later than the earlier of--

       ``(I) the date which is 15 years after the date of 
     acquisition of the dwelling unit, or
       ``(II) the date of the sale or other transfer of the 
     dwelling unit,

       ``(v) which by its terms treats--

       ``(I) any amount required to be paid under clause (iii) 
     during any taxable year which is not paid at the time 
     required to be paid, and
       ``(II) any amount remaining unpaid as of the beginning of 
     the taxable year beginning after the period described in 
     clause (iv),

     as distributed during such taxable year to the individual on 
     whose behalf such plan is established and subject to section 
     72(t)(1), and
       ``(vi) which bears interest from the date of the loan at a 
     rate not less than 2 percentage points below, and not more 
     than 2 percentage points above, the rate for comparable 
     United States Treasury obligations on such date.

     Nothing in this paragraph shall be construed to require such 
     a loan to be secured by the dwelling unit.
       ``(C) Limitation on amount of loans.--The amount of 
     borrowings to which paragraph (3) does not apply by reason of 
     this paragraph shall not exceed $10,000.
       ``(D) Denial of interest deduction.--No deduction shall be 
     allowed under this chapter for interest on any qualified home 
     purchase loan.
       ``(E) Definitions.--For purposes of this paragraph--
       ``(i) First-time homebuyer.--The term `first-time 
     homebuyer' has the meaning given such term by section 
     4975(h)(3)(B).
       ``(ii) Acquisition.--The term `acquisition' has the meaning 
     given such term by section 4975(h)(3)(D)(i).
       ``(iii) Principal residence.--The term `principal 
     residence' has the same meaning as when used in section 121.
       ``(iv) Date of acquisition.--The term `date of acquisition' 
     means the date--

       ``(I) on which a binding contract to acquire the principal 
     residence to which subparagraph (B) applies is entered into, 
     or
       ``(II) on which construction, reconstruction, or 
     improvement of such a principal residence is commenced.''.

       (2) Prohibited transaction.--Section 4975(d) (relating to 
     exemptions from tax on prohibited transactions) 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 inserting after paragraph (15) the following new 
     paragraph:
       ``(16) any loan that is a qualified home purchase loan (as 
     defined in section 408(e)(7)(B)).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to loans made in years after 2001.
       (b) Offset.--Notwithstanding section 701(c) of this Act, 
     the effective date of the amendments made by section 701 
     shall be adjusted by the Secretary of the Treasury as 
     necessary to offset the decrease in revenues to the Treasury 
     resulting from the amendments made by subsection (a).
                                 ______
                                 

                  ROBB (AND OTHERS) AMENDMENT NO. 1401

  Mr. ROBB (for himself, Mr. Graham, Mr. Rockefeller, Ms. Mikulski, 
Mrs. Murray, and Mr. Bryan) proposed an amendment to the bill, S. 1429, 
supra; as follows:

       At the end add the following:
                   TITLE XVI--DELAY IN EFFECTIVE DATE
       Notwithstanding any other provision of, or amendment made 
     by, this Act, no such provision or amendment shall take 
     effect until legislation has been enacted that extends the 
     solvency of the Federal Old-Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund under 
     section 201 of the Social Security Act through 2075 and the 
     Federal Hospital Insurance Trust Fund under part A of title 
     XVIII of such Act through 2027.
                                 ______
                                 

                        KERRY AMENDMENT NO. 1402

  (Ordered to be lie on the table.)
  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       On page 371, between lines 16 and 17, insert the following:

     SEC. 1122. DISCLOSURE OF TAX INFORMATION TO FACILITATE 
                   COMBINED EMPLOYMENT TAX REPORTING.

       Section 6103(d)(5) of the Internal Revenue Code of 1986 is 
     amended to read as follows:
       ``(5) Disclosure for combined employment tax reporting.--
     The Secretary may disclose taxpayer identity information and 
     signatures to any agency, body, or commission of any State 
     for the purpose of carrying out with such agency, body, or 
     commission a combined Federal and State employment tax 
     reporting program approved by the Secretary. Subsections 
     (a)(2) and (p)(4) and sections 7213 and 7213A shall not apply 
     with respect to disclosures or inspections made pursuant to 
     this paragraph.''

                          ____________________