[Congressional Record Volume 151, Number 135 (Friday, October 21, 2005)]
[Senate]
[Pages S11744-S11746]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DODD (for himself and Mr. Smith):
S. 1906. A bill to amend the Internal Revenue Code of 1986 to exclude
property tax rebates and other benefits provided to volunteer
firefighters, search
[[Page S11745]]
and rescue personnel, and emergency medical responders from income and
employment taxes and wage withholding; to the Committee on Finance.
Mr. DODD. Mr. President, I am pleased to rise today with my colleague
Senator Smith to introduce bipartisan legislation to improve important
tax relief to volunteer firefighters and emergency first responders.
Congressman John Larson of Connecticut has introduced similar
legislation in the House of Representatives.
Seventy-five percent of firefighters and emergency first responders
in our country today are volunteers. Statistics show that the number of
volunteer firefighters and emergency first responders has declined in
past years. Since 1983, the number of volunteer firefighters and
emergency first responders has declined anywhere between 5 and 10
percent. Meanwhile, the number of emergency calls made to these
volunteer services has increased sharply.
Many municipalities across the country, including those within the
State of Connecticut, offer stipends and property tax abatements to
volunteer firefighters, search and rescue personnel, emergency medical
technicians, paramedics and ambulance drivers. These incentives have
helped local fire departments and emergency first responder services
recruit and retain volunteers.
In 2002, the Internal Revenue Service, IRS, ruled that property tax
abatements to volunteers should be treated as wages and income. This
ruling significantly diminished the net value of tax abatements for
volunteer firefighters and emergency first responders.
The legislation that Senator Smith and I are introducing amends the
Internal Revenue Code to exclude property tax abatements and stipends
for volunteer firefighters and emergency first responders from the
definition of income and wages. This bill would allow State and
municipal governments to continue providing these incentives to their
volunteer fighters and emergency first responders without any adverse
federal tax implications.
I have long believed that our country should do more to encourage
Americans to volunteer in their communities. A modest tax break is not
a large repayment for the great services that volunteer firefighters
and emergency first responders provide to our communities. They
literally risk their lives daily for others. The least we can do is
allow States and municipalities to offer these modest incentives to
serve.
The current IRS rule--while on one level understandable--nevertheless
complicates the good intentions and creative efforts of many states and
municipalities. If our State and municipal governments are willing to
forgo their local tax revenues in order to ensure that they have enough
volunteer firefighters and emergency first responders to protect their
communities, then our country should in my view support those State and
local efforts. In so doing, our country will be acting to encourage and
award volunteers.
I hope that our colleagues will join us in supporting this bipartisan
legislation so that our national government can join with State and
local governments to design and implement recruiting and retention
initiatives that benefit not only volunteer firefighters and emergency
first responders, but also the communities they protect.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1906
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXCLUSION OF PROPERTY TAX REBATES AND OTHER
BENEFITS PROVIDED TO VOLUNTEER FIREFIGHTERS,
SEARCH AND RESCUE PERSONNEL, AND EMERGENCY
MEDICAL RESPONDERS FROM INCOME AND EMPLOYMENT
TAXES AND WAGE WITHHOLDING.
(a) Exclusion From Gross Income.--
(1) In general.--Part III of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to items
specifically excluded from gross income) is amended by
redesignating section 140 as section 140A and by inserting
after section 139 the following new section:
``SEC. 140. PROPERTY TAX REBATES AND OTHER BENEFITS PROVIDED
TO VOLUNTEER FIREFIGHTERS, SEARCH AND RESCUE
PERSONNEL, AND EMERGENCY MEDICAL RESPONDERS.
``(a) Exclusion.--Gross income shall not include a
qualified property tax rebate or other benefit.
``(b) Qualified Property Tax Rebate or Other Benefit.--For
purposes of subsection (a)--
``(1) In general.--The term `qualified property tax rebate
or other benefit' means a rebate of real or personal property
taxes, or any other benefit, provided by a State or political
subdivision on account of services performed as a member of a
qualified volunteer emergency response organization.
``(2) Qualified volunteer emergency response
organization.--The term `qualified volunteer emergency
response organization' means any volunteer organization--
``(A) which is organized and operated to provide
firefighting, search and rescue, or emergency medical
services for persons in the State or political subdivision,
as the case may be, and
``(B) which is required (by written agreement) by the State
or political subdivision to furnish firefighting, search and
rescue, or emergency medical services in such State or
political subdivision.''.
(2) Clerical amendment.--The table of sections for such
part is amended by striking the last item and inserting the
following new items:
``Sec. 140. Property tax rebates and other benefits provided to
volunteer firefighters, search and rescue personnel, and
emergency medical responders.
``Sec. 140A. Cross references to other Acts.''.
(b) Exclusion From Employment Taxes.--
(1) Social security taxes.--
(A) Section 3121(a) of the Internal Revenue Code of 1986
(relating to definition of wages) is amended by striking
``or'' at the end of paragraph (21), by striking the period
at the end of paragraph (22) and inserting ``; or'', and by
inserting after paragraph (22) the following new paragraph:
``(23) any qualified property tax rebate or other benefit
(as defined in section 140(b)).''.
(B) Section 209(a) of the Social Security Act is amended by
striking ``or'' at the end of paragraph (18), by striking the
period at the end of paragraph (19) and inserting ``; or'',
and by inserting after paragraph (19) the following new
paragraph:
``(20) Any qualified property tax rebate or other benefit
(as defined in section 140(b) of the Internal Revenue Code of
1986).''.
(2) Unemployment taxes.--Section 3306(b) of the Internal
Revenue Code of 1986 (relating to definition of wages) is
amended by striking ``or'' at the end of paragraph (18), by
striking the period at the end of paragraph (19) and
inserting ``; or'', and by inserting after paragraph (19) the
following new paragraph:
``(20) any qualified property tax rebate or other benefit
(as defined in section 140(b).''.
(c) Wage Withholding.--Section 3401(a) of the Internal
Revenue Code of 1986 (defining wages) is amended by striking
``or'' at the end of paragraph (21), by striking the period
at the end of paragraph (22) and inserting ``; or'', and by
inserting after paragraph (22) the following new paragraph:
``(23) for any qualified property tax rebate or other
benefit (as defined in section 140(b).''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
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By Mr. SMITH (for himself and Ms. Cantwell):
S. 1908. A bill to authorize the Under Secretary of Technology of the
Department of Commerce to award grants to establish up to eight
Nanoscience to Commercialization Institutes throughout the United
States to develop commercial applications for nanotechnology; to the
Committee on Commerce, Science, and Transportation.
Mr. SMITH. Mr. President, I rise today with Senator Cantwell to
introduce the Nanoscience to Commercialization Institutes Act of 2005.
Still in its infancy, nanotechnology is an exciting technology with a
bright future and the potential to have a significant impact on the
economy, global competitiveness and the quality of life for our
citizens.
The advent of nanotechnology is creating opportunities in any array
of industries with applications ranging from improving the performance
of sports equipment used in recreation activities to life-saving
medical applications used to combat deadly diseases such as cancer.
Many promising technological advances have already begun to take
shape in the world of micro- and nanotechnology and countless more
potential future applications exist in fields such as medicine,
electronics, energy to name a few.
However, many times innovative research becomes victim of the
``Valley of Death'' by failing to advance from the research labs to
application in commercial products and services.
[[Page S11746]]
My bill will establish up to eight Nanoscience to Commercialization
Institutes across the country, each focusing on a specific field of
expertise including areas such as energy, electronics, agriculture,
medical, textiles and transportation with the purpose of developing and
bridging research to the marketplace.
My bill is aimed at narrowing this so-called ``Valley of Death,'' by
focusing on bringing research to commercialization. To reach this
objective, my bill contains provisions requiring these institutes to
partner with private sector entities with experience in micro- and
nanotechnology and for each institute to develop and maintain business
plans.
My bill will create additional avenues for entities that are engaged
in micro- and nanotechnologies to develop research for application in
commercial products and services that will ultimately contribute to
sustained economic development, an improved quality of living and
increased U.S. global competitiveness.
The competitive landscape of nanotechnology is global in nature.
Other countries, such as Japan and China are making tremendous
investments and advances in various specialties of nanotechnology to
gain competitive advantages. It is critical the U.S. demonstrate its
global leadership role by further advancing opportunities to advance
micro- and nanotechnology to commercial applications.
The future of nanotechnology is a bright future and its potential
boundless. The legislation that I am introducing today with Senator
Cantwell supports and encourages the advancement of this exciting
technology. I urge my colleagues to support the Nanoscience to
Commercialization Institutes Act of 2005.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1908
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nanoscience to
Commercialization Institutes Act of 2005''.
SEC. 2. NANOSCIENCE TO COMMERCIALIZATION INSTITUTES.
(a) Grants Authorized.--
(1) In general.--The Under Secretary of Technology of the
Department of Commerce (referred to in this Act as the
``Under Secretary'') is authorized to award grants to
eligible entities to establish up to 8 Nanoscience to
Commercialization Institutes (referred to in this Act as
``Institutes'') throughout the United States to assist in the
commercialization of nanotechnology.
(2) Maximum amount.--The Under Secretary shall not award a
grant under this section in an amount which exceeds
$1,500,000 for any year of the grant period.
(3) Duration.--The Under Secretary shall award grants under
this section for a period not to exceed 3 years.
(4) Location.--The Under Secretary shall ensure that each
Institute is located at either a public university or Federal
laboratory.
(b) Use of Funds.--
(1) In general.--Grants awarded pursuant to subsection (a)
shall be used to establish at least 1 Institute in each of
the following areas of nanotechnology or microtechnology:
(A) Energy, including clean coal liquification,
gasification, and filtration, nuclear energy, biofuels, or
fuel processing.
(B) Printable electronics, including electronic displays.
(C) Medical, including diagnostics, imaging, or medical
devices.
(D) Transportation, including materials or coatings.
(E) Textiles, including heat resistance, waterproofing,
insulation, or fireproofing.
(F) Agriculture.
(2) Limitation.--Not more than 20 percent of each grant
award may be used for administrative expenses or other
overhead costs.
(3) Matching requirement.--For-profit manufacturing
companies conducting research and development in micro- and
nanotechnologies shall provide--
(A) not less than 20 percent of the funding for each
Institute; and
(B) in addition to the funding under subparagraph (A), in-
kind contributions equal to not less than 15 percent of the
operating costs of the Institute.
(c) Application.--
(1) In general.--Each entity desiring a grant under this
section shall submit an application to the Under Secretary at
such time, in such manner, and containing such information as
the Under Secretary may reasonably require.
(2) Collaboration.--The application submitted under
paragraph (1) shall include a business plan that--
(A) describes how each grant recipient will collaborate
with the private sector entities that will contribute
expertise and matching funds; and
(B) includes goals for the first year of the grant period.
(3) Ineligible entities.--Any institution of higher
education that has a federally funded nanotechnology center
or is the primary lead of a nanotechnology center is not
eligible for a grant under this section.
(4) Peer review committee.--The Under Secretary shall
establish a peer review committee, consisting of
representatives from the micro- and nanotechnology industry
and early stage venture capital firms, to review the goals
and progress made by each Institute during the grant period.
(5) Renewal of grants.--
(A) Each entity that receives an initial 1-year grant under
this section shall, as a condition of continued grant
funding, submit a report, not later than 1 year after the
beginning of the grant period and annually for the next 2
years, to the peer review committee established under
paragraph (4).
(B) The report submitted under subparagraph (A) shall
describe the Institute's accomplishments during the preceding
year and the Institute's goals for the subsequent year.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $24,000,000 during
the 3-year period beginning on the date of enactment of this
Act to carry out the provisions of this Act.
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