Amends the Internal Revenue Code to allow the use of tax-exempt redevelopment bonds for the costs of environmental remediation. Defines "environmental remediation" as: (1) abatement or control of hazardous substances; (2) demolition of existing contaminated structures, permit fees necessary for remediation, and environmental audits; (3) health assessments or health effects studies related to a contaminated site; and (4) remediation of off-site contamination caused by activity on a contaminated site. Denies an income tax deduction for interest paid on redevelopment bonds for environmental remediation if the Administrator of the Environmental Protection Agency determines that a remediation plan financed with redevelopment bonds was not satisfactorily completed.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3891 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 3891
To amend the Internal Revenue Code of 1986 to provide for the use of
redevelopment bonds for environmental remediation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2004
Ms. Hart introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for the use of
redevelopment bonds for environmental remediation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. USE OF REDEVELOPMENT BONDS FOR ENVIRONMENTAL REMEDIATION.
(a) Environmental Remediation Included as Redevelopment Purpose.--
Subparagraph (A) of section 144(c)(3) of the Internal Revenue Code of
1986 (relating to redevelopment purposes) is amended by striking
``and'' at the end of clause (iii), by striking the period at the end
of clause (iv) and inserting ``, and'', and by adding at the end the
following new clause:
``(v) the costs of environmental
remediation (as defined in paragraph (9)(B))
with respect to a qualified contaminated site
(as defined in paragraph (9)(C)) if such costs
are incurred pursuant to an environmental
remediation plan which was approved by the
Administrator of the Environmental Protection
Agency or by the head of any State or local
government agency designated by the
Administrator to carry out the Administrator's
functions under this clause.''.
(b) Certain Requirements not to Apply to Redevelopment Bonds for
Environmental Remediation.--Subsection (c) of section 144 of such Code
is amended by adding at the end the following new paragraph:
``(9) Redevelopment bonds for environmental remediation.--
For purposes of clause (v) of paragraph (3)(A)--
``(A) Certain requirements not to apply.--In the
case of any bond issued as part of an issue 95 percent
or more of the proceeds of which are to finance costs
referred to in paragraph (3)(A)(v)--
``(i) paragraph (2)(A)(i) shall not apply,
``(ii) paragraph (2)(A)(ii) shall not apply
to any issue issued by the governing body
described in paragraph (4)(A) with respect to
the area which includes the site,
``(iii) the requirement of paragraph
(2)(B)(ii) shall be treated as met if--
``(I) the payment of the principal
and interest on such issue is secured
by taxes imposed by a governmental
unit, or
``(II) such issue is approved by
the applicable elected representative
(as defined in section 147(f)(2)(E)) of
the governmental unit which issued such
issue (or on behalf of which such issue
was issued),
``(iv) subparagraphs (C) and (D) of
paragraph (2) shall not apply,
``(v) subparagraphs (C) and (D) of
paragraph (4) shall not apply, and
``(vi) if the real property referred to in
clause (iii) of paragraph (3)(A) is 1 or more
dwelling units, such clause shall apply only if
the requirements of section 142(d) or 143 (as
the case may be) are met with respect to such
units.
``(B) Environmental remediation.--The term
`environmental remediation' means--
``(i) abatement or control of hazardous
substances (as defined by section 101 of the
Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42
U.S.C. 9601)),
``(ii) demolition of existing contaminated
structures, permit fees necessary for
remediation, and environmental audits,
``(iii) health assessments or health
effects studies related to the site, and
``(iv) remediation of off-site
contamination caused by activity on the site
(other than remediation activities of a type
permitted for the site).
``(C) Qualified contaminated site.--The term
`qualified contaminated site' means any contaminated
site if--
``(i) the condition of the contaminated
site is such that without funding under this
section redevelopment is unlikely,
``(ii) the contaminated site has not been
in productive use for at least 1 year before
such funding,
``(iii) there is a strong likelihood of
redevelopment of the site for industrial or
commercial use that will result in creation of
jobs and expansion of the tax base, and
``(iv) environmental remediation and
redevelopment are likely to be completed within
a reasonable period of time.''.
(c) Penalty for Failure to Satisfactorily Complete Remediation
Plan.--Subsection (b) of section 150 of such Code is amended by adding
at the end thereof the following new paragraph:
``(7) Qualified contaminated site remediation bonds.--In
the case of financing provided for costs described in section
144(c)(3)(A)(v), no deduction shall be allowed under this
chapter for interest on such financing during any period during
which there is a determination by the Administrator of the
Environmental Protection Agency (or by the head of any State or
local government agency designated by the Administrator to
carry out the Administrator's functions under this paragraph)
that the remediation plan under which such costs were incurred
was not satisfactorily completed.''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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