[Congressional Record Volume 154, Number 118 (Thursday, July 17, 2008)]
[Extensions of Remarks]
[Pages E1496-E1497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF LEGISLATION TO ALLOW FOR THE TAX-EXEMPT BOND FINANCING 
                     FOR EMERGENCY MEDICAL AIRCRAFT

                                 ______
                                 

                           HON. DOC HASTINGS

                             of washington

                    in the house of representatives

                        Thursday, July 17, 2008

  Mr. HASTINGS of Washington. Madam Speaker, today I am introducing 
legislation with my colleague from Washington state, Congresswoman 
McMorris Rodgers, that amends the Internal Revenue Code to allow tax-
exempt bond financing for airplanes that

[[Page E1497]]

exclusively provide emergency medical services.
  Our current tax code prohibits the use of tax-exempt bonds for the 
purchase of airplanes. This exclusion was meant to prevent the use of 
tax-exempt bonds for frivolous purposes, including corporate jets. My 
legislation would continue the ban on using tax-exempt bonds for 
extravagant reasons and simply allow tax-exempt bond financing for 
airplanes that exclusively provide emergency medical services.
  This issue is particularly important to my district because Inland 
Northwest Health Services (INHS), a non-profit organization based in 
Spokane, is looking to expand air ambulance service to rural areas by 
purchasing new planes. In 2007, INHS provided 2,891 emergency medical 
flights. INHS currently serves Central and Eastern Washington, as well 
as parts of Oregon, Idaho and Montana. In my district, INHS serves 
residents in Adams, Benton, Chelan, Douglas, Franklin, Grant, Kittitas 
and Klickitat counties.
  The IRS currently allows tax-exempt bonds to be used to purchase 
helicopters for air ambulance services. Some may wonder why then do we 
need to amend the tax code for fixed wing aircraft. In rural areas, 
such as my district, the use of helicopters is often impractical 
because of the long distances that patients must be transported. 
Airplanes are commonly the best mode of transportation for critically 
ill patients because they can travel longer distances and provide the 
safest and fastest mode of travel during inclement weather.
  While I have focused on why this legislation is important to the 
residents of my district, I want to be clear that my legislation does 
not only assist the non-profit INHS. Under this bill, any organization 
that would like to obtain tax-exempt bond financing for airplanes that 
are exclusively dedicated to providing acute emergency care would be 
eligible.
  I urge my colleagues to support this simple change to our tax code 
and I hope that this bill will become law in the very near future.

                          ____________________