[Congressional Record Volume 151, Number 154 (Friday, November 18, 2005)]
[Senate]
[Pages S13379-S13381]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. CLlNTON:
  S. 2073. A bill to amend the Internal Revenue Code of 1986 to provide 
a tax credit for property owners who remove lead-based paint hazards; 
to the Committee on Finance.
  Mrs. CLINTON. Mr. President, I rise today to discuss a serious, 
persistent, and entirely preventable threat to the health and well-
being of our children.
  Lead is highly toxic and continues to be a major environmental health 
problem in the United States, especially for infants, children, and 
pregnant women. A CDC survey conducted between 1999-2002, estimated 
that 310,000 American children under 6 were at risk for exposure to 
harmful lead levels in United States. Childhood lead poisoning has been 
linked to impaired growth and function of vital organs and problems 
with intellectual and behavioral development. A study from the New 
England Journal of Medicine also found that children suffered up to a 
7.4-percent decrease in IQ at lead levels that CDC considers safe. At 
very high levels, lead poisoning can cause seizures, coma, and even 
death.
  The most common source of lead exposure for children today is lead 
paint in older housing and the contaminated lead dust it generates. 
Despite a ban on lead paint in 1978, there are still over 24 million 
housing units in the United States that have lead paint hazards, with 
about 1.2 million in New York State alone. According to 2000 census 
data, New York State has over 37 percent of homes that were built prior 
to 1950 and more pre-1950 housing units available for occupancy than 
any other State.
  Though New York State has made considerable progress in prevention 
and early identification of childhood lead poisoning, more needs to be 
done to minimize the risk of lead exposure in the home, by our kids. 
About 5 percent of New York children screened for lead

[[Page S13380]]

poisoning at age 2 were found to have elevated levels of lead in the 
blood, more than twice the national average. Minority and poor children 
are disproportionately at risk, as these groups are more likely to live 
in older housing with poor building maintenance, where the risk of lead 
paint hazards are greater. Low-income children are eight times more 
likely to develop lead poisoning than more affluent children, and 
African-American and Mexican-American children are five and two times 
more likely, respectively, to have toxic blood lead levels than white 
children. In New York City, about 95 percent of children with elevated 
blood levels were African American, Hispanic or Asian.
  I am glad that the U.S. Department of Health and Human Services 
considers lead poisoning to be a priority, and established a national 
goal of ending childhood lead poisoning by 2010. However, Federal 
programs only have resources to remove lead-based paint hazards from 
less than 0.1 percent of the 24 million housing units that have these 
hazards. At this pace, we will not be able to end childhood lead 
poisoning by 3010, let alone 2010.
  We will never stop childhood lead poisoning unless we get lead out of 
the buildings in which children live, work, and play. In Brooklyn, more 
than a third of the buildings in one community have a lead-based paint 
hazard. Parents of children with lead poisoning are being told that 
nothing can be done until their children's lead poisoning becomes 
worse. How can we ask parents to watch and wait while their sons and 
daughters suffer from lead poisoning before we remove the lead from 
their homes?

  That is why today, I am proud to introduce the Home Lead Safety Tax 
Credit Act of 2005 with my colleagues, Senators DeWine, Obama, and 
Smith. This legislation would provide a tax credit to aide and 
encourage homeowners and landlords to engage in the safe removal of 
lead-based paint hazards from their homes and rental units. 
Specifically, it would change the IRS Code of 1986 to provide a tax 
credit for 50 percent of the allowable costs paid by the taxpayer, up 
to a maximum of $3000 and $1000 for lead abatement and interim control 
measures, respectively. Interim control measures, which can include 
replacement of windows, specialized maintenance, safe repainting and 
renovation work practices to eliminate lead hazards, are a cost-
effective means of protecting the largest number of children in the 
near term. While total elimination of lead paint in housing is the most 
desirable, interim control measures typically cost three to nine times 
less and can be equally effective at removing the lead hazard.
  The credit is targeted to homes that contain children less than 6 
years of age or a woman of childbearing age, low-income residents, and 
to buildings built before 1960, as these include more than 96 percent 
of all units where lead-based paint is prevalent. In Massachusetts, a 
similar tax credit helped reduce the number of new cases of childhood 
lead poisoning by almost two-thirds in a decade.
  The Home Lead Safety Tax Credit Act of 2005 would help homeowners 
make over 80,000 homes each year safe from lead, which is more than 10 
times the number of homes made lead safe by current Federal programs. 
It would greatly accelerate our progress in ridding our Nation of the 
significant problem of childhood lead poisoning. I ask my colleagues to 
join me in supporting this legislation, which will provide needed 
incentives for property owners to ensure that our homes are safeguarded 
against environmental hazards that detrimentally affect the health and 
safety of our children.
  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. 2073

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

     SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.

       (a) Short Title.--This Act may be cited as the ``Home Lead 
     Safety Tax Credit Act of 2005''.
       (b) Findings.--Congress finds that:
       (1) Of the 98,000,000 housing units in the United States, 
     38,000,000 have lead-based paint.
       (2) Of the 38,000,000 housing units with lead-based paint, 
     25,000,000 pose a hazard, as defined by Environmental 
     Protection Agency and Department of Housing and Urban 
     Development standards, due to conditions such as peeling 
     paint and settled dust on floors and windowsills that contain 
     lead at levels above Federal safety standards.
       (3) Though the number of children in the United States ages 
     1 through 5 with blood levels higher than the Centers for 
     Disease Control action level of 10 micrograms per deciliter 
     has declined to 300,000, lead poisoning remains a serious, 
     entirely preventable threat to a child's intelligence, 
     behavior, and learning.
       (4) The Secretary of Health and Human Services has 
     established a national goal of ending childhood lead 
     poisoning by 2010.
       (5) Current Federal lead abatement programs, such as the 
     Lead Hazard Control Grant Program of the Department of 
     Housing and Urban Development, only have resources sufficient 
     to make approximately 7,000 homes lead-safe each year. In 
     many cases, when State and local public health departments 
     identify a lead-poisoned child, resources are insufficient to 
     reduce or eliminate the hazards.
       (6) Old windows typically pose significant risks because 
     wood trim is more likely to be painted with lead-based paint, 
     moisture causes paint to deteriorate, and friction generates 
     lead dust. The replacement of old windows that contain lead 
     based paint significantly reduces lead poisoning hazards in 
     addition to producing significant energy savings.
       (7) Childhood lead poisoning can be dramatically reduced by 
     the abatement or complete removal of all lead-based paint. 
     Empirical studies also have shown substantial reductions in 
     lead poisoning when the affected properties have undergone 
     so-called ``interim control measures'' that are far less 
     costly than abatement.
       (c) Purpose.--The purpose of this section is to encourage 
     the safe removal of lead hazards from homes and thereby 
     decrease the number of children who suffer reduced 
     intelligence, learning difficulties, behavioral problems, and 
     other health consequences due to lead-poisoning.

     SEC. 2. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     foreign tax credit, etc.) is amended by adding at the end the 
     following new section:

     ``SEC. 30D. HOME LEAD HAZARD REDUCTION ACTIVITY.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to 50 percent of the lead hazard 
     reduction activity cost paid or incurred by the taxpayer 
     during the taxable year for each eligible dwelling unit.
       ``(b) Limitation.--The amount of the credit allowed under 
     subsection (a) for any eligible dwelling unit for any taxable 
     year shall not exceed--
       ``(1) either--
       ``(A) $3,000 in the case of lead hazard reduction activity 
     cost including lead abatement measures described in clauses 
     (i), (ii), (iv) and (v) of subsection (c)(1)(A), or
       ``(B) $1,000 in the case of lead hazard reduction activity 
     cost including interim lead control measures described in 
     clauses (i), (iii), (iv), and (v) of subsection (c)(1)(A), 
     reduced by
       ``(2) the aggregate lead hazard reduction activity cost 
     taken into account under subsection (a) with respect to such 
     unit for all preceding taxable years.
       ``(c) Definitions and Special Rules.--For purposes of this 
     section:
       ``(1) Lead hazard reduction activity cost.--
       ``(A) In general.--The term `lead hazard reduction activity 
     cost' means, with respect to any eligible dwelling unit--
       ``(i) the cost for a certified risk assessor to conduct an 
     assessment to determine the presence of a lead-based paint 
     hazard,
       ``(ii) the cost for performing lead abatement measures by a 
     certified lead abatement supervisor, including the removal of 
     paint and dust, the permanent enclosure or encapsulation of 
     lead-based paint, the replacement of painted surfaces, 
     windows, or fixtures, or the removal or permanent covering of 
     soil when lead-based paint hazards are present in such paint, 
     dust, or soil,
       ``(iii) the cost for performing interim lead control 
     measures to reduce exposure or likely exposure to lead-based 
     paint hazards, including specialized cleaning, repairs, 
     maintenance, painting, temporary containment, ongoing 
     monitoring of lead-based paint hazards, and the establishment 
     and operation of management and resident education programs, 
     but only if such measures are evaluated and completed by a 
     certified lead abatement supervisor using accepted methods, 
     are conducted by a qualified contractor, and have an expected 
     useful life of more than 10 years,
       ``(iv) the cost for a certified lead abatement supervisor, 
     those working under the supervision of such supervisor, or a 
     qualified contractor to perform all preparation, cleanup, 
     disposal, and clearance testing activities associated with 
     the lead abatement measures or interim lead control measures, 
     and
       ``(v) costs incurred by or on behalf of any occupant of 
     such dwelling unit for any relocation which is necessary to 
     achieve occupant protection (as defined under section 35.1345 
     of title 24, Code of Federal Regulations).

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       ``(B) Limitation.--The term `lead hazard reduction activity 
     cost' does not include any cost to the extent such cost is 
     funded by any grant, contract, or otherwise by another person 
     (or any governmental agency).
       ``(2) Eligible dwelling unit.--
       ``(A) In general.--The term `eligible dwelling unit' means, 
     with respect to any taxable year, any dwelling unit--
       ``(i) placed in service before 1960,
       ``(ii) located in the United States,
       ``(iii) in which resides, for a total period of not less 
     than 50 percent of the taxable year, at least 1 child who has 
     not attained the age of 6 years or 1 woman of child-bearing 
     age, and
       ``(iv) each of the residents of which during such taxable 
     year has an adjusted gross income of less than 185 percent of 
     the poverty line (as determined for such taxable year in 
     accordance with criteria established by the Director of the 
     Office of Management and Budget).
       ``(B) Dwelling unit.--The term `dwelling unit' has the 
     meaning given such term by section 280A(f)(1).
       ``(3) Lead-based paint hazard.--The term `lead-based paint 
     hazard' has the meaning given such term by section 745.61 of 
     title 40, Code of Federal Regulations.
       ``(4) Certified lead abatement supervisor.--The term 
     `certified lead abatement supervisor' means an individual 
     certified by the Environmental Protection Agency pursuant to 
     section 745.226 of title 40, Code of Federal Regulations, or 
     an appropriate State agency pursuant to section 745.325 of 
     title 40, Code of Federal Regulations.
       ``(5) Certified inspector.--The term `certified inspector' 
     means an inspector certified by the Environmental Protection 
     Agency pursuant to section 745.226 of title 40, Code of 
     Federal Regulations, or an appropriate State agency pursuant 
     to section 745.325 of title 40, Code of Federal Regulations.
       ``(6) Certified risk assessor.--The term `certified risk 
     assessor' means a risk assessor certified by the 
     Environmental Protection Agency pursuant to section 745.226 
     of title 40, Code of Federal Regulations, or an appropriate 
     State agency pursuant to section 745.325 of title 40, Code of 
     Federal Regulations.
       ``(7) Qualified contractor.--The term `qualified 
     contractor' means any contractor who has successfully 
     completed a training course on lead safe work practices which 
     has been approved by the Department of Housing and Urban 
     Development and the Environmental Protection Agency.
       ``(8) Documentation required for credit allowance.--No 
     credit shall be allowed under subsection (a) with respect to 
     any eligible dwelling unit for any taxable year unless--
       ``(A) after lead hazard reduction activity is complete, a 
     certified inspector or certified risk assessor provides 
     written documentation to the taxpayer that includes--
       ``(i) evidence that--

       ``(I) the eligible dwelling unit passes the clearance 
     examinations required by the Department of Housing and Urban 
     Development under part 35 of title 40, Code of Federal 
     Regulations,
       ``(II) the eligible dwelling unit does not contain lead 
     dust hazards (as defined by section 745.227(e)(8)(viii) of 
     such title 40), or
       ``(III) the eligible dwelling unit meets lead hazard 
     evaluation criteria established under an authorized State or 
     local program, and

       ``(ii) documentation showing that the lead hazard reduction 
     activity meets the requirements of this section, and
       ``(B) the taxpayer files with the appropriate State agency 
     and attaches to the tax return for the taxable year--
       ``(i) the documentation described in subparagraph (A),
       ``(ii) documentation of the lead hazard reduction activity 
     costs paid or incurred during the taxable year with respect 
     to the eligible dwelling unit, and
       ``(iii) a statement certifying that the dwelling unit 
     qualifies as an eligible dwelling unit for such taxable year.
       ``(9) Basis reduction.--The basis of any property for which 
     a credit is allowable under subsection (a) shall be reduced 
     by the amount of such credit (determined without regard to 
     subsection (d)).
       ``(10) No double benefit.--Any deduction allowable for 
     costs taken into account in computing the amount of the 
     credit for lead-based paint abatement shall be reduced by the 
     amount of such credit attributable to such costs.
       ``(d) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under subpart A and 
     sections 27, 29, 30, 30A, 30B, and 30C for the taxable year.
       ``(e) Carryforward Allowed.--
       ``(1) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (d) for such taxable year 
     (referred to as the `unused credit year' in this subsection), 
     such excess shall be allowed as a credit carryforward for 
     each of the 20 taxable years following the unused credit 
     year.
       ``(2) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryforward under 
     paragraph (1).''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' in paragraph (36), by striking 
     the period and inserting ``, and'' in paragraph (37), and by 
     inserting at the end the following new paragraph:
       ``(38) in the case of an eligible dwelling unit with 
     respect to which a credit for any lead hazard reduction 
     activity cost was allowed under section 30D, to the extent 
     provided in section 30D(c)(9).''.
       (2) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 30C the 
     following new item:

``Sec. 30D. Home lead hazard reduction activity.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to lead hazard reduction activity costs incurred 
     after December 31, 2005, in taxable years ending after that 
     date.
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