[Congressional Record (Bound Edition), Volume 151 (2005), Part 17]
[Senate]
[Pages 23486-23488]
[From the U.S. 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 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:


[[Page 23487]]


``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.
                                 ______
                                 
      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.
  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).

[[Page 23488]]

       (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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