[Congressional Record (Bound Edition), Volume 156 (2010), Part 3]
[Senate]
[Pages 3813-3815]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SPECTER (for himself and Mr. Casey):
  S. 3140. A bill to grant the Secretary of Health and Human Services 
authority to design, construct, and operate facilities for the purpose 
of developing and producing biological products in order to meet 
critical national needs for such biological products, in response to 
potential bioterrorist attacks or naturally occurring pathogens; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. SPECTER. Mr. President, I have sought recognition today to 
introduce the Biosecurity and Vaccine Development Improvement Act, 
which will ensure our country has the resources necessary to protect 
the American people in the event of a disease outbreak or terrorist 
attack.
  Last year, in preparation for flu season and concern about the H1N1 
virus, the Department of Health and Human Services set out to acquire 
120 million doses of vaccines. In August 2009, the department initially 
projected that these doses would be available by mid-October. However, 
only 11 million were obtained by that time, and the 120 million doses 
were not acquired until January 2010.
  The current system consists of government contracts with private 
vaccine manufacturers to produce vaccines. While this lowers overhead 
costs to the Government, the Government is not able to dictate when 
vaccines will be produced or which vaccines will be produced. The 
production of the H1N1 vaccine is good example of the problems that can 
arise without a dedicated Government manufacturing facility for 
vaccines. The delay was due to several problems with the supplying 
companies. For example, one company based in Australia had to produce 
vaccines to meet the needs in Australia before exporting doses to the 
U.S. Another company had to produce their regular seasonal flu vaccine 
before switching to H1N1 vaccine production. This demonstrates the 
critical need to examine the current vaccine system.
  The current system has limitations on the ability to produce vaccines 
related to bioterrorism such as smallpox, anthrax, ebola virus and 
botulism, leaving the U.S. without vaccines and susceptible to 
terrorist attacks. What we want to do is to avoid having the government 
come up short on something like what happened with Katrina where we are 
unprepared for the eventuality.
  I have long been concerned with these issues. Since 2004, when I 
chaired the Labor, Health and Human Services and Education 
Appropriations Subcommittee, with the joinder of Senator Harkin, who is 
now the chair, we appropriated $14.336 billion for pandemic 
preparedness. So you can see that we are talking about very substantial 
funds to meet a very substantial problem. Over the past year, I have 
held a number of meetings about the need for a facility, through a 
public/private partnership, that would afford the U.S. Government 
greater control over vaccine and countermeasure production and 
development. These meetings included Vice President Biden, Secretary of 
Health and Human Services Sebelius and Secretary of Homeland Security 
Janet Napolitano. On August 21, 2009, I chaired a hearing in 
Pittsburgh, PA, to examine the problems our current system faces and 
what can be done to remedy them.
  This legislation would provide funding for a public/private 
partnership vaccine developing and manufacturing facility, determined 
by a competitive bidding process. A public/private facility such as 
this would allow the government to determine what vaccines would be 
produced and would use new technology being developed by General 
Electric to allow rapid change in the vaccines produced. This process 
currently requires extensive cleaning and takes weeks, but this new 
technology includes disposable manufacturing equipment to change 
production quickly and would improve output and meet demand.
  This proposed facility would develop and manufacture medical 
countermeasures critical to this Nation's health and security and could 
greatly enhance the U.S.'s vaccine-producing abilities. I encourage my 
colleagues to work with me to move this legislation forward promptly.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Menendez, Mr. Kerry, Ms. 
        Cantwell, Ms. Stabenow, and Mr. Schumer):
  S. 3141. A bill to amend the Internal Revenue Code of 1986 to provide 
special rules for treatment of low-income housing credits, and for 
other purposes; to the Committee on Finance.
  Mr. BINGAMAN. Mr. President, among the many casualties of our 
economic downturn is the collapse of the primary form of private 
financing to construct affordable housing. I rise today to introduce 
the Low-Income Housing Tax Credit Recovery Act, which would restore 
investment in the Low-Income Housing Tax Credit program. In doing so, 
the bill will create tens of thousands of new affordable housing units 
and, in turn, thousands of construction jobs. I am grateful to my 
Finance Committee colleagues, Senators Kerry, Cantwell, Menendez, 
Stabenow, and Schumer for joining me in introducing this bill.
  Many of us are familiar with the Low-Income Housing Tax Credit 
program's importance; indeed, I consider it the most successful 
affordable housing production program in our nation's history. Since 
its enactment in 1986, the program has spurred the creation of more 
than 1.7 million units of affordable housing nationwide, including 
nearly 20,000 units in my home State of New Mexico.
  But today, the Housing Credit program is facing tremendous challenges 
in attracting private investment. Having incurred significant losses, 
many traditional investors cannot currently use these tax credits, and 
thus have temporarily exited the market. Moreover, Fannie Mae and 
Freddie Mac--which until recently provided a significant share of 
private investment in Housing Credit projects in New Mexico and 
nationwide--have pulled out entirely. Our bill will help attract new 
private investment to Housing Credit projects in New Mexico and across 
the country.
  First, the bill will permit existing investors to carryback their 
unusable existing housing credits for up to five years. A major 
impediment to new investment today is that traditional Housing Credit 
investors have incurred business losses that prevent them from 
utilizing tax credits on previous investments. Consequently, these 
traditional investors have become disinclined to make new investments--
as doing so would generate further credits they could not use for some 
time. But through a 5-year carryback, many of these traditional 
investors will be able to make use of accumulated credits. Only 
investors who are committed to creating additional affordable housing 
deserve this tax treatment. Accordingly, the bill makes the 5-year 
carryback election available only to the extent that carryback proceeds 
are entirely invested in new affordable housing credit investments.
  Additionally, the bill provides that Housing Credits generated from 
future investments can be carried back 5 years. With its 10-year credit 
stream and 15-year tax compliance period, the Housing Credit program 
faces hurdles lining up investors, as compared to other tax credit 
programs with shorter investment horizons. Without shortening the 
compliance period, a 5-year carryback will make the Housing Credit more 
competitive with other tax credits, by providing greater flexibility. 
This will result in more stable investor demand and thus more resources 
for affordable housing.
  Our bill is based on consensus proposals developed by a broad 
coalition of affordable housing organizations--including housing 
advocates, state housing finance agencies, developers, and investors--
to restore private investment in affordable housing. That these 
proposals will create tens of

[[Page 3814]]

thousands of affordable housing units and thousands of construction 
jobs was endorsed in studies by Harvard University's Joint Center on 
Housing and Ernst & Young's Tax Credit Advisory Services Center.
  I am grateful for the coalition's efforts, as well as input that New 
Mexico stakeholders--including the New Mexico Mortgage Finance 
Authority, Enterprise Community Partners, and the New Mexico Coalition 
to End Homelessness--provided as I developed this bill.
  We must act swiftly to ensure continued progress in constructing 
affordable housing, to meet our nation's affordable housing needs and 
create jobs. I look forward to working with my colleagues to see these 
provisions enacted into law.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3141

       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 ``Low Income Housing Tax 
     Credit Recovery Act of 2010''.

     SEC. 2. FIVE-YEAR CARRYBACK OF LOW-INCOME HOUSING CREDIT.

       (a) In General.--Subsection (a) of section 39 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) 5-year carryback of low-income housing credit.--
       ``(A) In general.--In the case of an applicable low-income 
     housing credit (within the meaning of section 38(c)(6)(C))--
       ``(i) this section shall be applied separately from the 
     business credit (other than the low-income housing credit), 
     and
       ``(ii) paragraph (1) shall be applied by substituting `each 
     of the 5 taxable years' for `the taxable year' in 
     subparagraph (A) thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007, and to carrybacks of credits from such taxable years.

     SEC. 3. CARRYBACK OF NEW INVESTMENTS.

       (a) In General.--Section 42(f) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(6) Special rule for certain investments in 2010 and 
     2011.--
       ``(A) In general.--In the case of a taxpayer who enters 
     into an agreement described in section 38(c)(6)(D)(i)(I) 
     (without regard to the applicable date), which satisfies the 
     requirement of section 38(c)(6)(D)(i)(II), after December 31, 
     2009, and before January 1, 2012, then solely for purposes of 
     determining the taxable year in which the low-income housing 
     credit under this section may be taken into account for 
     purposes of section 38, and the amount of the credit so taken 
     into account--
       ``(i) the preceding paragraphs of this subsection shall not 
     apply,
       ``(ii) the credit period with respect to the housing credit 
     dollar amount to be allocated under such agreement shall be 
     the 1 taxable year in which the taxpayer enters into such 
     agreement,
       ``(iii) subsections (b) and (c)(1) shall not apply, and
       ``(iv) the amount of the credit under this section which is 
     taken into account in the taxable year described in clause 
     (ii) shall be the housing credit dollar amount to be 
     allocated under such agreement.
       ``(B) Requirements of section unaffected.--Except as 
     provided in subparagraph (A), the provisions of this section 
     shall apply to any building to which an agreement described 
     in subparagraph (A) applies as if such subparagraph had not 
     been enacted.
       ``(C) Recapture of excess credit.--If, at the end of the 
     credit period with respect to any building (without regard to 
     subparagraph (A)), the amount of the credit taken into 
     account under subparagraph (A)(iv) with respect to such 
     building exceeds the total amount of the credit which would 
     have been allowed under this section with respect to such 
     building during such credit period but for the application of 
     subparagraph (A), then the amount of such excess shall be 
     recaptured as if it were included in the credit recapture 
     amount under subsection (j).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 4. ALLOWING LOW-INCOME HOUSING CREDITS TO OFFSET 100 
                   PERCENT OF FEDERAL INCOME TAX LIABILITY.

       (a) In General.--Subsection (c) of section 38 is amended by 
     adding at the end the following new paragraph:
       ``(6) Allowing low-income housing credit to offset 100 
     percent of federal income tax liability.--
       ``(A) In general.--In the case of applicable low-income 
     housing credits--
       ``(i) this section shall be applied separately with respect 
     to such credits,
       ``(ii) in applying paragraph (1) to such credits--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be the net income tax (as defined in 
     paragraph (1)) reduced by the credit allowed under subsection 
     (a) for the taxable year (other than the applicable low-
     income housing credits), and

       ``(iii) the excess credit for such taxable year shall, 
     solely for purposes of determining the amount of such excess 
     credit which may be carried back to a preceding taxable year, 
     be increased by the amount of business credit carryforwards 
     which are carried to such taxable year, to which this 
     subparagraph applies, and which are not allowed for such 
     taxable year by reason of the limitation under paragraph (1) 
     (as modified by clause (ii)).
       ``(B) Increase in limitation for taxable years to which 
     excess applicable low-income housing credits are carried 
     back.--
       ``(i) In general.--Solely for purposes of determining the 
     portion of any excess credit described in subparagraph 
     (A)(iii) for which credit will be allowed under subsection 
     (a)(3) for any preceding taxable year, except as provided in 
     clause (ii), the limitation under paragraph (1) for such 
     preceding taxable year shall be determined under rules 
     similar to the rules described in subparagraph (A).
       ``(ii) Ordering rule.--If the excess credit described in 
     subparagraph (A)(iii) includes business credit carryforwards 
     from preceding taxable years, such excess credit shall be 
     treated as allowed for any preceding taxable year on a first-
     in first-out basis.
       ``(C) Applicable low-income housing credits.--For purposes 
     of this subpart, the term `applicable low-income housing 
     credits' means the credit determined under section 42--
       ``(i) to the extent attributable to buildings placed in 
     service after the date of the enactment of this subparagraph, 
     and
       ``(ii) in the case of any other buildings, for taxable 
     years beginning in 2008, 2009, and 2010 (and to business 
     credit carryforwards with respect to such buildings carried 
     to such taxable years) to the extent provided in subparagraph 
     (D).
       ``(D) Previously placed in service buildings.--
       ``(i) In general.--Subparagraph (C)(ii) shall apply to such 
     credits for such a taxable year only--

       ``(I) if the taxpayer has entered into a binding commitment 
     to invest equity not later than the applicable date, with 
     respect to an investment in a future project (which is 
     binding on the taxpayer and all successors in interest) which 
     specifies the dollar amount of such investment, and
       ``(II) to the extent such credits do not exceed the dollar 
     amount of such proposed investment.

       ``(ii) Applicable date.--For purposes of this subparagraph, 
     the applicable date is--

       ``(I) in the case of taxable years beginning in 2008 and 
     2009, September 15, 2010, or
       ``(II) in the case of a taxable year beginning in 2010, the 
     due date (including extensions of time) for filing the 
     taxpayer's return for such taxable year.''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007, and to carrybacks of credits from such taxable years.
                                 ______
                                 
      By Mrs. BOXER (for herself and Mrs. Hagan):
  S. 3144. A bill to amend the Richard B. Russell National School Lunch 
Act to improve the health and well-being of school children, and for 
other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mrs. BOXER. Mr. President, as we prepare to reauthorize the Child 
Nutrition Act, it is critical that we address the need to invest in 
commonsense ways to improve the health and well being of our nation's 
most precious resource--our children.
  Childhood obesity threatens the healthy future of one-third of 
American children. Every year we spend $150 billion to treat obesity-
related conditions, and that cost is growing. Obesity rates tripled in 
the past 30 years, a trend that means, for the first time in our 
history, American children may face a shorter expected lifespan than 
their parents.
  Right now, the U.S. Department of Agriculture, USDA, spends more than 
$10 billion a year on school meal programs, but only a small fraction 
of that funding goes to fruits and vegetables.
  A recent report by the Institute of Medicine entitled School Meals: 
Building Blocks for Healthy Children, found that increasing the amount 
and variety of vegetables and fruits in schools is one of the best ways 
to make school meals healthier, and recommends that schools increase 
their offering of fruits

[[Page 3815]]

and vegetables to help keep kids healthy.
  That is why I am introducing the Healthy Food in Schools Act, which 
would improve school nutrition by providing more fresh fruits and 
vegetables in school breakfasts and lunches starting in elementary 
school, when children are developing healthy eating habits.
  A recent study was conducted by Dr. Wendy Slusser, director of UCLA's 
Fit for Health Program, and Harvinder Sareen, Director of Clinical 
Programs at WellPoint, a health benefits company that found children's 
consumption of fruit and vegetables increases dramatically when produce 
is made available in school meals. The data also shows that increasing 
availability of fruits and vegetables exposes children to new foods, 
which can affect their eating habits for a lifetime.
  The Healthy Food in Schools Act instructs USDA to put in place a plan 
to promote the use of salad bars in schools and provide $10 million for 
fiscal years 2011 and 2012 to help schools purchase salad bars and 
fruit and vegetable bars for their cafeterias.
  The Healthy Food in Schools Act also includes $100 million for 
overall cafeteria infrastructure improvements. Many cafeterias around 
the country are looking to move away from processed food and toward 
kitchens that can cook healthier meals from scratch, but they lack the 
funds to implement such a plan.
  The American Recovery and Reinvestment Act passed last year included 
$100 million in grants for cafeteria equipment, but the Department of 
Education received more than $650 million in requests for 
infrastructure improvements. This bill will help meet the needs of the 
many school districts that want to improve the meals they serve their 
students.
  This bill also provides competitive matching grants and technical 
assistance for schools to improve access to local foods. The bill 
directs $10 million a year for 5 years toward these farm-to-school 
programs.
  Farm-to-school programs are a proven, commonsense way to help improve 
the health of children while supporting local farmers and bolstering 
local economies. While many schools would like to incorporate fresh 
local food into their meals, schools often lack the startup funding and 
technical expertise to overcome barriers to making this change. These 
limited federal grants will give school districts and small- and 
medium-sized farms the help they need to develop new farm-to-school 
programs.
  With more than 31 million children participating in the National 
School Lunch Program and more than 11 million participating in the 
National School Breakfast Program, good nutrition at school is more 
important than ever. That is why I urge my colleagues to join me in 
support of including this commonsense bill in the upcoming 
reauthorization of the Child Nutrition Act.
  The Healthy Food in Schools Act will help ensure that our nation's 
children are not just eating, but also learning to eat healthy. The 
rise in the rates of children who are overweight or obese are a result 
of poor diets, a lack of physical activity, and insufficient nutrition 
education. A healthy school environment can help correct these problems 
and put our Nation's youth and our Nation on the path to a healthier 
and more sustainable future.

                          ____________________