[Congressional Record Volume 148, Number 4 (Monday, January 28, 2002)]
[Senate]
[Pages S183-S186]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2723. Mr. DOMENICI proposed an amendment to the language proposed 
to be stricken by amendment SA 2698 submitted by Mr. Daschle and 
intended to be proposed to the bill (H.R. 622) to amend the Internal 
Revenue Code of 1986 to expand the adoption credit, and for other 
purposes; as follows:

       At the end, add the following:

     SEC. __. PAYROLL TAX HOLIDAY.

       (a) In General.--Notwithstanding any other provision of 
     law, the rate of tax with respect to remuneration received 
     during the payroll tax holiday period shall be zero under 
     sections 1401(a), 3101(a), and 3111(a) of the Internal 
     Revenue Code of 1986 and for purposes of determining the 
     applicable percentage under section 3201(a), 3211(a)(1), and 
     3221(a) of such Code.
       (b) Payroll Tax Holiday Period.--The term ``payroll tax 
     holiday period'' means the period beginning after February 
     28, 2002, and ending before April 1, 2002.
       (c) Employer Notification.--The Secretary of the Treasury 
     shall notify employers of the payroll tax holiday period in 
     any manner the Secretary deems appropriate.
       (d) Transfer of Funds.--The Secretary of the Treasury shall 
     transfer from the general revenues of the Federal Government 
     an amount sufficient so as to ensure that the income and 
     balances of the trust funds under section 201 of the Social 
     Security Act and the Social Security Equivalent Benefit 
     Account under section 15A of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231n-1) are not reduced as a result of the 
     application of subsection (a).
       (e) Determination of Benefits.--In making any determination 
     of benefits under title II of the Social Security Act, the 
     Commissioner of Social Security shall disregard the effect of 
     the payroll tax holiday period on any individual's earnings 
     record.
                                  ____

  SA 2724. Mr. HATCH (for himself and Mr. Bennett!) proposed an 
amendment to the language proposed to be stricken by amendment SA 2698 
submitted by Mr. Daschle and intended to be proposed to the bill (H.R. 
622) to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; as follows:

       At the end, add the following:

     SEC. __. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED 
                   FOR 7 YEARS.

       (a) In General.--Paragraph (1) of section 172(b) of the 
     Internal Revenue Code of 1986 (relating to years to which 
     loss may be carried) is amended by adding at the end the 
     following new subparagraph:
       ``(H) Special rule for certain losses.--
       ``(i) In general.--In the case of a taxpayer which has a 
     net operating loss for any taxable year ending during 2000, 
     2001, or 2002, subparagraph (A)(i) shall be applied by 
     substituting `7' for `2' and subparagraph (F) shall not 
     apply.
       ``(ii) Per year limitation.--For purposes of the 6th and 
     7th taxable years preceding the taxable year of such loss, 
     the amount of net operating losses to which clause (i) may 
     apply for any taxable year shall not exceed $50,000,000.''
       (b) Election To Disregard 7-Year Carryback.--Section 172 of 
     the Internal Revenue Code of 1986 (relating to net operating 
     loss deduction) is amended by redesignating subsection (j) as 
     subsection (k) and by inserting after subsection (i) the 
     following new subsection:
       ``(j) Election To Disregard 7-Year Carryback for Certain 
     Net Operating Losses.--Any taxpayer entitled to a 7-year 
     carryback under subsection (b)(1)(H) from any loss year may 
     elect to have the carryback period with respect to such loss 
     year determined without regard to subsection (b)(1)(H). Such 
     election shall be made in such manner as may be prescribed by 
     the Secretary and shall be made by the due date (including 
     extensions of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Such election, once 
     made for any taxable year, shall be irrevocable for such 
     taxable year.''
       (c) Temporary Suspension of 90 Percent Limit on Certain NOL 
     Carrybacks.--
       (1) In general.--Subparagraph (A) of section 56(d)(1) of 
     the Internal Revenue Code of 1986 (relating to general rule 
     defining alternative tax net operating loss deduction) is 
     amended to read as follows:
       ``(A) the amount of such deduction shall not exceed the sum 
     of--
       ``(i) the lesser of--

       ``(I) the amount of such deduction attributable to net 
     operating losses (other than the deduction attributable to 
     carrybacks described in clause (ii)(I)), or
       ``(II) 90 percent of alternative minimum taxable income 
     determined without regard to such deduction, plus

       ``(ii) the lesser of--

       ``(I) the amount of such deduction attributable to 
     carrybacks of net operating losses for taxable years ending 
     during 2000, 2001, or 2002, or
       ``(II) alternative minimum taxable income determined 
     without regard to such deduction reduced by the amount 
     determined under clause (i), and''.

       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning before January 1, 
     2003.

[[Page S184]]

       (d) Effective Date.--Except as provided in subsection (c), 
     the amendments made by this section shall apply to net 
     operating losses for taxable years ending after December 31, 
     1999.
                                  ____

  SA 2725. Mr. BINGAMAN submitted an amendment intended to be proposed 
to the language proposed to be stricken by amendment SA 2698 submitted 
by Mr. Daschle and intended to be proposed to the bill (H.R. 622) to 
amend the Internal Revenue Code of 1986 to expand the adoption credit, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC.  . ALLOWANCE OF ELECTRONIC 1099S.

       Except as otherwise provided by the Secretary of the 
     Treasury, any person required to furnish a statement under 
     any section of subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 for any 
     taxable year ending after the date of the enactment of this 
     Act, may electronically furnish such statement to any 
     recipient who has consented to the electronic provision of 
     the statement in a manner similar to the one permitted under 
     regulations issued under section 6051 of such Code or in such 
     other manner as provided by the Secretary.
                                  ____

  SA 2726. Mrs. LINCOLN submitted an amendment intended to be proposed 
by her to the bill H.R. 622, to amend the Internal Revenue Code of 1986 
to expand the adoption credit, and for other purposes; which was 
ordered to lie on the table; as follows:

       At an appropriate place, insert the following:

     SEC. __. AMORTIZATION OF REFORESTATION EXPENDITURES AND 
                   REFORESTATION TAX CREDIT.

       (a) Removal of Cap on Amortizable Basis.--
       (1) In general.--Section 194 (relating to amortization of 
     reforestation expenditures) is amended by striking subsection 
     (b) and by redesignating subsections (c) and (d) as 
     subsections (b) and (c), respectively.
       (2) Conforming amendment.--Subsection (b) of section 194, 
     as redesignated by paragraph (1), is amended by striking 
     paragraph (4).
       (b) Increase in Cap on Reforestation Credit.--Paragraph (1) 
     of section 48(b) (relating to reforestation credit) is 
     amended--
       (1) by inserting ``of the first $25,000'' after ``10 
     percent'', and
       (2) by striking ``(after the application of section 
     194(b)(1))''.
       (c) Effective Dates.--
       (1) Amortization provisions.--The amendments made by 
     subsection (a) shall apply to additions to capital account 
     made after December 31, 2001.
       (2) Tax credit provisions.--The amendments made by 
     subsection (b) shall apply to property acquired after 
     December 31, 2001.
                                  ____

  SA 2727. Mr. ROCKEFELLER (for himself, Mr. Kerry, Mr. Johnson, and 
Mr. Daschle) submitted an amendment intended to be proposed by him to 
the bill H.R. 622, to amend the Internal Revenue Code of 1986 to expand 
the adoption credit, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the appropriate place, add the following:

     SEC. __. BROADBAND INTERNET ACCESS TAX CREDIT.

       (a) In General.--Subpart E of part IV of chapter 1 
     (relating to rules for computing investment credit) is 
     amended by inserting after section 48 the following:

     ``SEC. 48A. BROADBAND CREDIT.

       ``(a) General Rule.--For purposes of section 46, the 
     broadband credit for any taxable year is the sum of--
       ``(1) the current generation broadband credit, plus
       ``(2) the next generation broadband credit.
       ``(b) Current Generation Broadband Credit; Next Generation 
     Broadband Credit.--For purposes of this section--
       ``(1) Current generation broadband credit.--The current 
     generation broadband credit for any taxable year is equal to 
     10 percent of the qualified expenditures incurred with 
     respect to qualified equipment providing current generation 
     broadband services to qualified subscribers and taken into 
     account with respect to such taxable year.
       ``(2) Next generation broadband credit.--The next 
     generation broadband credit for any taxable year is equal to 
     20 percent of the qualified expenditures incurred with 
     respect to qualified equipment providing next generation 
     broadband services to qualified subscribers and taken into 
     account with respect to such taxable year.
       ``(c) When Expenditures Taken Into Account.--For purposes 
     of this section--
       ``(1) In general.--Qualified expenditures with respect to 
     qualified equipment shall be taken into account with respect 
     to the first taxable year in which--
       ``(A) current generation broadband services are provided 
     through such equipment to qualified subscribers, or
       ``(B) next generation broadband services are provided 
     through such equipment to qualified subscribers.
       ``(2) Limitation.--
       ``(A) In general.--Qualified expenditures shall be taken 
     into account under paragraph (1) only with respect to 
     qualified equipment--
       ``(i) the original use of which commences with the 
     taxpayer, and
       ``(ii) which is placed in service,
     after December 31, 2001.
       ``(B) Sale-leasebacks.--For purposes of subparagraph (A), 
     if property--
       ``(i) is originally placed in service after December 31, 
     2001, by a person, and
       ``(ii) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in clause (ii).
       ``(d) Special Allocation Rules.--
       ``(1) Current generation broadband services.--For purposes 
     of determining the current generation broadband credit under 
     subsection (a)(1) with respect to qualified equipment through 
     which current generation broadband services are provided, if 
     the qualified equipment is capable of serving both qualified 
     subscribers and other subscribers, the qualified expenditures 
     shall be multiplied by a fraction--
       ``(A) the numerator of which is the sum of the number of 
     potential qualified subscribers within the rural areas and 
     the underserved areas which the equipment is capable of 
     serving with current generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with current generation broadband 
     services.
       ``(2) Next generation broadband services.--For purposes of 
     determining the next generation broadband credit under 
     subsection (a)(2) with respect to qualified equipment through 
     which next generation broadband services are provided, if the 
     qualified equipment is capable of serving both qualified 
     subscribers and other subscribers, the qualified expenditures 
     shall be multiplied by a fraction--
       ``(A) the numerator of which is the sum of--
       ``(i) the number of potential qualified subscribers within 
     the rural areas and underserved areas, plus
       ``(ii) the number of potential qualified subscribers within 
     the area consisting only of residential subscribers not 
     described in clause (i),

     which the equipment is capable of serving with next 
     generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with next generation broadband services.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Antenna.--The term `antenna' means any device used to 
     transmit or receive signals through the electromagnetic 
     spectrum, including satellite equipment.
       ``(2) Cable operator.--The term `cable operator' has the 
     meaning given such term by section 602(5) of the 
     Communications Act of 1934 (47 U.S.C. 522(5)).
       ``(3) Commercial mobile service carrier.--The term 
     `commercial mobile service carrier' means any person 
     authorized to provide commercial mobile radio service as 
     defined in section 20.3 of title 47, Code of Federal 
     Regulations.
       ``(4) Current generation broadband service.--The term 
     `current generation broadband service' means the transmission 
     of signals at a rate of at least 1,000,000 bits per second to 
     the subscriber and at least 128,000 bits per second from the 
     subscriber.
       ``(5) Multiplexing or demultiplexing.--The term 
     `multiplexing' means the transmission of 2 or more signals 
     over a single channel, and the term `demultiplexing' means 
     the separation of 2 or more signals previously combined by 
     compatible multiplexing equipment.
       ``(6) Next generation broadband service.--The term `next 
     generation broadband service' means the transmission of 
     signals at a rate of at least 22,000,000 bits per second to 
     the subscriber and at least 5,000,000 bits per second from 
     the subscriber.
       ``(7) Nonresidential subscriber.--The term `nonresidential 
     subscriber' means a person who purchases broadband services 
     which are delivered to the permanent place of business of 
     such person.
       ``(8) Open video system operator.--The term `open video 
     system operator' means any person authorized to provide 
     service under section 653 of the Communications Act of 1934 
     (47 U.S.C. 573).
       ``(9) Other wireless carrier.--The term `other wireless 
     carrier' means any person (other than a telecommunications 
     carrier, commercial mobile service carrier, cable operator, 
     open video system operator, or satellite carrier) providing 
     current generation broadband services or next generation 
     broadband service to subscribers through the wireless 
     transmission of energy through radio or light waves.
       ``(10) Packet switching.--The term `packet switching' means 
     controlling or routing the path of a digitized transmission 
     signal which is assembled into packets or cells.
       ``(11) Provider.--The term `provider' means, with respect 
     to any qualified equipment--
       ``(A) a cable operator,
       ``(B) a commercial mobile service carrier,

[[Page S185]]

       ``(C) an open video system operator,
       ``(D) a satellite carrier,
       ``(E) a telecommunications carrier, or
       ``(F) any other wireless carrier,

     providing current generation broadband services or next 
     generation broadband services to subscribers through such 
     qualified equipment.
       ``(12) Provision of services.--A provider shall be treated 
     as providing services to a subscriber if--
       ``(A) a subscriber has been passed by the provider's 
     equipment and can be connected to such equipment for a 
     standard connection fee,
       ``(B) the provider is physically able to deliver current 
     generation broadband services or next generation broadband 
     services, as applicable, to such subscribers without making 
     more than an insignificant investment with respect to any 
     such subscriber,
       ``(C) the provider has made reasonable efforts to make such 
     subscribers aware of the availability of such services,
       ``(D) such services have been purchased by one or more such 
     subscribers, and
       ``(E) such services are made available to such subscribers 
     at average prices comparable to those at which the provider 
     makes available similar services in any areas in which the 
     provider makes available such services.
       ``(13) Qualified equipment.--
       ``(A) In general.--The term `qualified equipment' means 
     equipment which provides current generation broadband 
     services or next generation broadband services--
       ``(i) at least a majority of the time during periods of 
     maximum demand to each subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no credit is allowed under subsection 
     (a)(1).
       ``(B) Only certain investment taken into account.--Except 
     as provided in subparagraph (C) or (D), equipment shall be 
     taken into account under subparagraph (A) only to the extent 
     it--
       ``(i) extends from the last point of switching to the 
     outside of the unit, building, dwelling, or office owned or 
     leased by a subscriber in the case of a telecommunications 
     carrier,
       ``(ii) extends from the customer side of the mobile 
     telephone switching office to a transmission/receive antenna 
     (including such antenna) owned or leased by a subscriber in 
     the case of a commercial mobile service carrier,
       ``(iii) extends from the customer side of the headend to 
     the outside of the unit, building, dwelling, or office owned 
     or leased by a subscriber in the case of a cable operator or 
     open video system operator, or
       ``(iv) extends from a transmission/receive antenna 
     (including such antenna) which transmits and receives signals 
     to or from multiple subscribers, to a transmission/receive 
     antenna (including such antenna) on the outside of the unit, 
     building, dwelling, or office owned or leased by a subscriber 
     in the case of a satellite carrier or other wireless carrier, 
     unless such other wireless carrier is also a 
     telecommunications carrier.
       ``(C) Packet switching equipment.--Packet switching 
     equipment, regardless of location, shall be taken into 
     account under subparagraph (A) only if it is deployed in 
     connection with equipment described in subparagraph (B) and 
     is uniquely designed to perform the function of packet 
     switching for current generation broadband services or next 
     generation broadband services, but only if such packet 
     switching is the last in a series of such functions performed 
     in the transmission of a signal to a subscriber or the first 
     in a series of such functions performed in the transmission 
     of a signal from a subscriber.
       ``(D) Multiplexing and demultiplexing equipment.--
     Multiplexing and demulti- 
     plexing equipment shall be taken into account under 
     subparagraph (A) only to the extent it is deployed in 
     connection with equipment described in subparagraph (B) and 
     is uniquely designed to perform the function of multiplexing 
     and demultiplexing packets or cells of data and making 
     associated application adaptions, but only if such 
     multiplexing or demultiplexing equipment is located between 
     packet switching equipment described in subparagraph (C) and 
     the subscriber's premises.
       ``(14) Qualified expenditure.--
       ``(A) In general.--The term `qualified expenditure' means 
     any amount--
       ``(i) chargeable to capital account with respect to the 
     purchase and installation of qualified equipment (including 
     any upgrades thereto) for which depreciation is allowable 
     under section 168, and
       ``(ii) incurred after December 31, 2001, and before January 
     1, 2003.
       ``(B) Certain satellite expenditures excluded.--Such term 
     shall not include any expenditure with respect to the 
     launching of any satellite equipment.
       ``(15) Qualified subscriber.--The term `qualified 
     subscriber' means--
       ``(A) with respect to the provision of current generation 
     broadband services--
       ``(i) a nonresidential subscriber maintaining a permanent 
     place of business in a rural area or underserved area, or
       ``(ii) a residential subscriber residing in a dwelling 
     located in a rural area or underserved area which is not a 
     saturated market, and
       ``(B) with respect to the provision of next generation 
     broadband services--
       ``(i) a nonresidential subscriber maintaining a permanent 
     place of business in a rural area or underserved area, or
       ``(ii) a residential subscriber.
       ``(16) Residential subscriber.--The term `residential 
     subscriber' means an individual who purchases broadband 
     services which are delivered to such individual's dwelling.
       ``(17) Rural area.--The term `rural area' means any census 
     tract which--
       ``(A) is not within 10 miles of any incorporated or census 
     designated place containing more than 25,000 people, and
       ``(B) is not within a county or county equivalent which has 
     an overall population density of more than 500 people per 
     square mile of land.
       ``(18) Rural subscriber.--The term `rural subscriber' means 
     a residential subscriber residing in a dwelling located in a 
     rural area or nonresidential subscriber maintaining a 
     permanent place of business located in a rural area.
       ``(19) Satellite carrier.--The term `satellite carrier' 
     means any person using the facilities of a satellite or 
     satellite service licensed by the Federal Communications 
     Commission and operating in the Fixed-Satellite Service under 
     part 25 of title 47 of the Code of Federal Regulations or the 
     Direct Broadcast Satellite Service under part 100 of title 47 
     of such Code to establish and operate a channel of 
     communications for distribution of signals, and owning or 
     leasing a capacity or service on a satellite in order to 
     provide such distribution.
       ``(20) Saturated market.--The term `saturated market' means 
     any census tract in which, as of the date of the enactment of 
     this section--
       ``(A) current generation broadband services have been 
     provided by one or more providers to 85 percent or more of 
     the total number of potential residential subscribers 
     residing in dwellings located within such census tract, and
       ``(B) such services can be utilized--
       ``(i) at least a majority of the time during periods of 
     maximum demand by each such subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no credit is allowed under subsection 
     (a)(1).
       ``(21) Subscriber.--The term `subscriber' means a person 
     who purchases current generation broadband services or next 
     generation broadband services.
       ``(22) Telecommunications carrier.--The term 
     `telecommunications carrier' has the meaning given such term 
     by section 3(44) of the Communications Act of 1934 (47 U.S.C. 
     153(44)), but--
       ``(A) includes all members of an affiliated group of which 
     a telecommunications carrier is a member, and
       ``(B) does not include a commercial mobile service carrier.
       ``(23) Total potential subscriber population.--The term 
     `total potential subscriber population' means, with respect 
     to any area and based on the most recent census data, the 
     total number of potential residential subscribers residing in 
     dwellings located in such area and potential nonresidential 
     subscribers maintaining permanent places of business located 
     in such area.
       ``(24) Underserved area.--The term `underserved area' means 
     any census tract which is located in--
       ``(A) an empowerment zone or enterprise community 
     designated under section 1391,
       ``(B) the District of Columbia Enterprise Zone established 
     under section 1400,
       ``(C) a renewal community designated under section 1400E, 
     or
       ``(D) a low-income community designated under section 45D.
       ``(25) Underserved subscriber.--The term `underserved 
     subscriber' means a residential subscriber residing in a 
     dwelling located in an underserved area or nonresidential 
     subscriber maintaining a permanent place of business located 
     in an underserved area.
       ``(f) Designation of Census Tracts.--The Secretary shall, 
     not later than 90 days after the date of the enactment of 
     this section, designate and publish those census tracts 
     meeting the criteria described in paragraphs (17), (20), and 
     (24) of subsection (e). In making such designations, the 
     Secretary shall consult with such other departments and 
     agencies as the Secretary determines appropriate.''.
       (b) Credit To Be Part of Investment Credit.--Section 46 
     (relating to the 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:
       ``(4) the broadband credit.''
       (c) Special Rule for Mutual or Cooperative Telephone 
     Companies.--Section 501(c)(12)(B) (relating to list of exempt 
     organizations) is amended by striking ``or'' at the end of 
     clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, or'', and by adding at the end the 
     following:
       ``(v) from the sale of property subject to a lease 
     described in section 48A(c)(2)(B), but only to the extent 
     such income does not in any year exceed an amount equal to 
     the credit for qualified expenditures which would be 
     determined under section 48A for such year if the mutual or 
     cooperative telephone company was not exempt from taxation 
     and was treated as the owner of the property subject to such 
     lease.''.

[[Page S186]]

       (d) Conforming Amendment.--The table of sections for 
     subpart E of part IV of subchapter A of chapter 1 is amended 
     by inserting after the item relating to section 48 the 
     following:

``Sec. 48A. Broadband credit.''.

       (e) Regulatory Matters.--
       (1) Prohibition.--No Federal or State agency or 
     instrumentality shall adopt regulations or ratemaking 
     procedures that would have the effect of confiscating any 
     credit or portion thereof allowed under section 48A of the 
     Internal Revenue Code of 1986 (as added by this section) or 
     otherwise subverting the purpose of this section.
       (2) Treasury regulatory authority.--It is the intent of 
     Congress in providing the broadband credit under section 48A 
     of the Internal Revenue Code of 1986 (as added by this 
     section) to provide incentives for the purchase, 
     installation, and connection of equipment and facilities 
     offering expanded broadband access to the Internet for users 
     in certain low income and rural areas of the United States, 
     as well as to residential users nationwide, in a manner that 
     maintains competitive neutrality among the various classes of 
     providers of broadband services. Accordingly, the Secretary 
     of the Treasury shall prescribe such regulations as may be 
     necessary or appropriate to carry out the purposes of section 
     48A of such Code, including--
       (A) regulations to determine how and when a taxpayer that 
     incurs qualified expenditures satisfies the requirements of 
     section 48A of such Code to provide broadband services, and
       (B) regulations describing the information, records, and 
     data taxpayers are required to provide the Secretary to 
     substantiate compliance with the requirements of section 48A 
     of such Code.

     Until the Secretary prescribes such regulations, taxpayers 
     may base such determinations on any reasonable method that is 
     consistent with the purposes of section 48A of such Code.
       (f) Effective Date.--The amendments made by this section 
     shall apply to expenditures incurred after December 31, 2001, 
     and before January 1, 2003.

                          ____________________