[Congressional Record Volume 150, Number 61 (Wednesday, May 5, 2004)]
[Senate]
[Pages S4918-S4920]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3117. Mr. BREAUX (for himself and Mrs. Feinstein) proposed an 
amendment to the bill S. 1637, to amend the Internal Revenue Code of 
1986 to comply with the World Trade Organization rulings on the FSC/ETI 
benefit in a manner that preserves jobs and production activities in 
the United States, to reform and simplify the international taxation 
rules of the United States, and for other purposes; as follows:

       On page 88, between lines 17 and 18, insert:
       ``(4) Dollar limitation.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     excess qualified foreign distribution amount shall not exceed 
     the lesser of--
       ``(i) the amount shown on the applicable financial 
     statement as earnings permanently reinvested outside the 
     United States, or
       ``(ii) the excess (if any) of--

       ``(I) the estimated aggregate qualified expenditures of the 
     corporation for taxable years ending in 2005, 2006, and 2007, 
     over
       ``(II) the aggregate qualified expenditures of the 
     corporation for taxable years ending in 2001, 2002, and 2003.

       ``(B) Earnings permanently reinvested outside the united 
     states.--
       ``(i) In general.--If an amount on an applicable financial 
     statement is shown as Federal income taxes not required to be 
     reserved by reason of the permanent reinvestment of earnings 
     outside the United States, subparagraph (A)(i) shall be 
     applied by reference to the earnings to which such taxes 
     relate.
       ``(ii) No statement or stated amount.--If there is no 
     applicable financial statement or such a statement fails to 
     show a specific amount described in subparagraph (A)(i) or 
     clause (i), such amount shall be treated as being zero.
       ``(iii) Applicable financial statement.--For purposes of 
     this paragraph, the term `applicable financial statement' 
     means the most recently audited financial statement 
     (including notes and other documents which accompany such 
     statement)--

       ``(I) which is certified on or before March 31, 2004, as 
     being prepared in accordance with generally accepted 
     accounting principles, and
       ``(II) which is used for the purposes of a statement or 
     report to creditors, to shareholders, or for any other 
     substantial nontax purpose.

     In the case of a corporation required to file a financial 
     statement with the Securities and Exchange Commission, such 
     term means the most recent such statement filed on or before 
     March 31, 2004.
       ``(C) Qualified expenditures.--For purposes of this 
     paragraph, the term `qualified expenditures' means--
       ``(i) wages (as defined in section 3121(a)),
       ``(ii) additions to capital accounts for property located 
     within the United States (including any amount which would be 
     so added but for a provision of this title providing for the 
     expensing of such amount),
       ``(iii) qualified research expenses (as defined in section 
     41(b)) and basic research payments (as defined in section 
     41(e)(2)), and
       ``(iv) irrevocable contributions to a qualified employer 
     plan (as defined in section 72(p)(4)) but only if no 
     deduction is allowed under this chapter with respect to such 
     contributions.
       ``(D) Recapture.--If the taxpayer's estimate of qualified 
     expenditures under subparagraph (A)(ii)(I) is greater than 
     the actual expenditures, then the tax imposed by this chapter 
     for the taxpayer's last taxable

[[Page S4919]]

     year ending in 2007 shall be increased by the sum of--
       ``(i) the increase (if any) in tax which would have 
     resulted in the taxable year for which the deduction under 
     this section was allowed if the actual expenditures were used 
     in lieu of the estimated expenditures, plus
       ``(ii) interest at the underpayment rate, determined as if 
     the increase in tax described in clause (i) were an 
     underpayment for the taxable year of the deduction.
       ``(5) Limitation on controlled foreign corporations in 
     possessions.--In computing the excess qualified foreign 
     distribution amount under paragraph (1) and the base dividend 
     amount under paragraph (2), there shall not be taken into 
     account dividends received from any controlled foreign 
     corporation created or organized under the laws of any 
     possession of the United States.
                                 ______
                                 
  SA 3118. Mr. ALLARD (for himself, Mr. Schumer, Mr. Miller, Mrs. 
Clinton, Mr. Chambliss, and Mr. Corzine) submitted an amendment 
intended to be proposed by him to the bill S. 1637, to amend the 
Internal Revenue Code of 1986 to comply with the World Trade 
Organization rulings on the FSC/ETI benefit in a manner that preserves 
jobs and production activities in the United States, to reform and 
simplify the international taxation rules of the United States, and for 
other purposes; which was ordered to lie on the table, as follows:

       On page 139, between lines 13 and 14, insert the following:

     SEC. __. BROWNFIELDS DEMONSTRATION PROGRAM FOR QUALIFIED 
                   GREEN BUILDING AND SUSTAINABLE DESIGN PROJECTS.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 (relating to the definition of exempt facility 
     bond) is amended by striking ``or'' at the end of paragraph 
     (12), by striking the period at the end of paragraph (13) and 
     inserting ``, or'', and by inserting at the end the following 
     new paragraph:
       ``(14) qualified green building and sustainable design 
     projects.''.
       (b) Qualified Green Building and Sustainable Design 
     Projects.--Section 142 (relating to exempt facility bonds) is 
     amended by adding at the end thereof the following new 
     subsection:
       ``(l) Qualified Green Building and Sustainable Design 
     Projects.--
       ``(1) In general.--For purposes of subsection (a)(14), the 
     term `qualified green building and sustainable design 
     project' means any project which is designated by the 
     Secretary, after consultation with the Administrator of the 
     Environmental Protection Agency, as a qualified green 
     building and sustainable design project and which meets the 
     requirements of clauses (i), (ii), (iii), and (iv) of 
     paragraph (4)(A).
       ``(2) Designations.--
       ``(A) In general.--Within 60 days after the end of the 
     application period described in paragraph (3)(A), the 
     Secretary, after consultation with the Administrator of the 
     Environmental Protection Agency, shall designate qualified 
     green building and sustainable design projects. At least one 
     of the projects designated shall be located in, or within a 
     10-mile radius of, an empowerment zone as designated pursuant 
     to section 1391, and at least one of the projects designated 
     shall be located in a rural State. No more than one project 
     shall be designated in a State. A project shall not be 
     designated if such project includes a stadium or arena for 
     professional sports exhibitions or games.
       ``(B) Minimum conservation and technology innovation 
     objectives.--The Secretary, after consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     ensure that, in the aggregate, the projects designated 
     shall--
       ``(i) reduce electric consumption by more than 150 
     megawatts annually as compared to conventional generation,
       ``(ii) reduce daily sulfur dioxide emissions by at least 10 
     tons compared to coal generation power,
       ``(iii) expand by 75 percent the domestic solar 
     photovoltaic market in the United States (measured in 
     megawatts) as compared to the expansion of that market from 
     2001 to 2002, and
       ``(iv) use at least 25 megawatts of fuel cell energy 
     generation.
       ``(3) Limited designations.--A project may not be 
     designated under this subsection unless--
       ``(A) the project is nominated by a State or local 
     government within 180 days of the enactment of this 
     subsection, and
       ``(B) such State or local government provides written 
     assurances that the project will satisfy the eligibility 
     criteria described in paragraph (4).
       ``(4) Application.--
       ``(A) In general.--A project may not be designated under 
     this subsection unless the application for such designation 
     includes a project proposal which describes the energy 
     efficiency, renewable energy, and sustainable design features 
     of the project and demonstrates that the project satisfies 
     the following eligibility criteria:
       ``(i) Green building and sustainable design.--At least 75 
     percent of the square footage of commercial buildings which 
     are part of the project is registered for United States Green 
     Building Council's LEED certification and is reasonably 
     expected (at the time of the designation) to receive such 
     certification.
       ``(ii) Brownfield redevelopment.--The project includes a 
     brownfield site as defined by section 101(39) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601), including a site 
     described in subparagraph (D)(ii)(II)(aa) thereof.
       ``(iii) State and local support.--The project receives 
     specific State or local government resources which will 
     support the project in an amount equal to at least 
     $5,000,000. For purposes of the preceding sentence, the term 
     `resources' includes tax abatement benefits and contributions 
     in kind.
       ``(iv) Size.--The project includes at least one of the 
     following:

       ``(I) At least 1,000,000 square feet of building.
       ``(II) At least 20 acres.

       ``(v) Use of tax benefit.--The project proposal includes a 
     description of the net benefit of the tax-exempt financing 
     provided under this subsection which will be allocated for 
     financing of one or more of the following:

       ``(I) The purchase, construction, integration, or other use 
     of energy efficiency, renewable energy, and sustainable 
     design features of the project.
       ``(II) Compliance with LEED certification standards.
       ``(III) The purchase, remediation, and foundation 
     construction and preparation of the brownfields site.

       ``(vi) Prohibited facilities.--An issue shall not be 
     treated as an issue described in subsection (a)(14) if any 
     proceeds of such issue are used to provide any facility the 
     principal business of which is the sale of food or alcoholic 
     beverages for consumption on the premises.
       ``(vii) Employment.--The project is projected to provide 
     permanent employment of at least 1,500 full time equivalents 
     (150 full time equivalents in rural States) when completed 
     and construction employment of at least 1,000 full time 
     equivalents (100 full time equivalents in rural States).

     The application shall include an independent analysis which 
     describes the project's economic impact, including the amount 
     of projected employment.
       ``(B) Project description.--Each application described in 
     subparagraph (A) shall contain for each project a description 
     of--
       ``(i) the amount of electric consumption reduced as 
     compared to conventional construction,
       ``(ii) the amount of sulfur dioxide daily emissions reduced 
     compared to coal generation,
       ``(iii) the amount of the gross installed capacity of the 
     project's solar photovoltaic capacity measured in megawatts, 
     and
       ``(iv) the amount, in megawatts, of the project's fuel cell 
     energy generation.
       ``(5) Certification of use of tax benefit.--No later than 
     30 days after the completion of the project, each project 
     must certify to the Secretary that the net benefit of the 
     tax-exempt financing was used for the purposes described in 
     paragraph (4).
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Rural state.--The term `rural State' means any State 
     which has--
       ``(i) a population of less than 4,500,000 according to the 
     2000 census,
       ``(ii) a population density of less than 150 people per 
     square mile according to the 2000 census, and
       ``(iii) increased in population by less than half the rate 
     of the national increase between the 1990 and 2000 censuses.
       ``(B) Local government.--The term `local government' has 
     the meaning given such term by section 1393(a)(5).
       ``(C) Net benefit of tax-exempt financing.--The term `net 
     benefit of tax-exempt financing' means the present value of 
     the interest savings (determined by a calculation established 
     by the Secretary) which result from the tax-exempt status of 
     the bonds.
       ``(7) Aggregate face amount of tax-exempt financing.--
       ``(A) In general.--An issue shall not be treated as an 
     issue described in subsection (a)(14) if the aggregate face 
     amount of bonds issued by the State or local government 
     pursuant thereto for a project (when added to the aggregate 
     face amount of bonds previously so issued for such project) 
     exceeds an amount designated by the Secretary as part of the 
     designation.
       ``(B) Limitation on amount of bonds.--The Secretary may not 
     allocate authority to issue qualified green building and 
     sustainable design project bonds in an aggregate face amount 
     exceeding $2,000,000,000.
       ``(8) Termination.--Subsection (a)(14) shall not apply with 
     respect to any bond issued after September 30, 2009.
       ``(9) Treatment of current refunding bonds.--Paragraphs 
     (7)(B) and (8) shall not apply to any bond (or series of 
     bonds) issued to refund a bond issued under subsection 
     (a)(14) before October 1, 2009, if--
       ``(A) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(B) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(C) the net proceeds of the refunding bond are used to 
     redeem the refunded bond not later than 90 days after the 
     date of the issuance of the refunding bond.


[[Page S4920]]


     For purposes of subparagraph (A), average maturity shall be 
     determined in accordance with section 147(b)(2)(A).''.
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) (relating to exception for certain 
     bonds) is amended--
       (1) by striking ``or (13)'' and inserting ``(13), or 
     (14)'', and
       (2) by striking ``and qualified public educational 
     facilities'' and inserting ``qualified public educational 
     facilities, and qualified green building and sustainable 
     design projects''.
       (d) Accountability.--Each issuer shall maintain, on behalf 
     of each project, an interest bearing reserve account equal to 
     1 percent of the net proceeds of any bond issued under this 
     section for such project. Not later than 5 years after the 
     date of issuance, the Secretary of the Treasury, after 
     consultation with the Administrator of the Environmental 
     Protection Agency, shall determine whether the project 
     financed with such bonds has substantially complied with the 
     terms and conditions described in section 142(l)(4) of the 
     Internal Revenue Code of 1986 (as added by this section). If 
     the Secretary, after such consultation, certifies that the 
     project has substantially complied with such terms and 
     conditions and meets the commitments set forth in the 
     application for such project described in section 142(l)(4) 
     of such Code, amounts in the reserve account, including all 
     interest, shall be released to the project. If the Secretary 
     determines that the project has not substantially complied 
     with such terms and conditions, amounts in the reserve 
     account, including all interest, shall be paid to the United 
     States Treasury.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2004.
       On page 365, between lines 3 and 4, insert the following:

     SEC. __. SUBSTANTIAL PRESENCE TEST REQUIRED TO DETERMINE BONA 
                   FIDE RESIDENCE IN UNITED STATES POSSESSIONS.

       (a) Substantial Presence Test.--
       (1) In General.--Subpart D of part III of subchapter N of 
     chapter 1 (relating to possessions of the United States) is 
     amended by adding at the end the following new section:

     ``SEC. 937. BONA FIDE RESIDENT.

       ``For purposes of this subpart, section 865(g)(3), section 
     876, section 881(b), paragraphs (2) and (3) of section 
     901(b), section 957(c), section 3401(a)(8)(C), and section 
     7654(a), the term `bona fide resident' means a person who 
     satisfies a test, determined by the Secretary, similar to the 
     substantial presence test under section 7701(b)(3) with 
     respect to Guam, American Samoa, the Northern Mariana 
     Islands, Puerto Rico, or the Virgin Islands, as the case may 
     be.''.
       (2) Conforming amendments.--
       (A) The following provisions are amended by striking 
     ``during the entire taxable year'' and inserting ``for the 
     taxable year'':
       (i) Paragraph (3) of section 865(g).
       (ii) Subsection (a) of section 876(a).
       (iii) Paragraphs (2) and (3) of section 901(b).
       (iv) Subsection (a) of section 931.
       (v) Paragraphs (1) and (2) of section 933.
       (B) Section 931(d) is amended by striking paragraph (3).
       (C) Section 932 is amended by striking ``at the close of 
     the taxable year'' and inserting ``for the taxable year'' 
     each place it appears.
       (3) Clerical amendment.--The table of sections of subpart D 
     of part III of subchapter N of chapter 1 is amended by adding 
     at the end the following new item:

``Sec. 937. Bona fide resident.''.

       (b) Reporting Requirements for Bona Fide Residents of the 
     Virgin Islands.--Paragraph (2) of section 932(c) (relating to 
     treatment of Virgin Islands residents) is amended to read as 
     follows:
       ``(2) Filing requirements.--
       ``(A) In general.--Each individual to whom this subsection 
     applies for the taxable year shall file an income tax return 
     for the taxable year with the Virgin Islands.
       ``(B) Information returns for certain taxpayers.--
       ``(i) In general.--Each individual--

       ``(I) to whom this subsection applies for the taxable year 
     or for any taxable year during the 5-taxable-year period 
     ending before the date of the enactment of the Jumpstart Our 
     Business Strength (JOBS) Act, and
       ``(II) to whom this subparagraph has not applied for the 
     preceding 2 taxable years,

     shall file an income tax return with the United States.
       ``(ii) Filing fee.--The Secretary shall charge a processing 
     fee with respect to the return filed under this subparagraph 
     of an amount appropriate to cover the administrative costs of 
     the requirements of this subparagraph and the enforcement of 
     the purposes of this subparagraph.''.
       (c) Penalties.--
       (1) In general.--Part I of subchapter B of chapter 68 is 
     amended by adding at the end the following new section:

     ``SEC. 6717. FAILURE OF VIRGIN ISLANDS RESIDENTS TO FILE 
                   RETURNS WITH THE UNITED STATES.

       ``(a) Penalty Authorized.--The Secretary may impose a civil 
     money penalty on any person who violates, or causes any 
     violation of, the requirements of section 932(c)(2)(B).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in subsection (c), 
     the amount of any civil penalty imposed under subsection (a) 
     shall not exceed $5,000.
       ``(2) Reasonable cause exception.--No penalty shall be 
     imposed under subsection (a) with respect to any violation if 
     such violation was due to reasonable cause.
       ``(c) Willful Violations.--In the case of any person 
     willfully violating, or willfully causing any violation of, 
     any requirement of section 932(c)(2)(B)--
       ``(1) the maximum penalty under subsection (b)(1) shall be 
     increased to $25,000 and
       ``(2) subsection (b)(2) shall not apply.''.
       (2) Clerical amendment.--The table of sections for Part I 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6717. Failure of Virgin Islands residents to file returns with 
              the United States.''.

       (d) Effective Dates.--The amendments made by subsection (a) 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

                          ____________________