To amend the Internal Revenue Code of 1986 to modify the at-risk rules for publicly traded nonrecourse debt.

Revises, with respect to real property, Internal Revenue Code provisions concerning the treatment under the at-risk rules of publicly traded nonrecourse debt.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 451 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 451

To amend the Internal Revenue Code of 1986 to modify the at-risk rules 
                 for publicly traded nonrecourse debt.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2003

  Mr. Foley 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 modify the at-risk rules 
                 for publicly traded nonrecourse debt.

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

SECTION 1. TREATMENT UNDER AT-RISK RULES OF PUBLICLY TRADED NONRECOURSE 
              DEBT.

    (a) In General.--Subparagraph (A) of section 465(b)(6) of the 
Internal Revenue Code of 1986 (relating to qualified nonrecourse 
financing treated as amount at risk) is amended by striking ``share 
of'' and all that follows and inserting ``share of--
                            ``(i) any qualified nonrecourse financing 
                        which is secured by real property used in such 
                        activity, and
                            ``(ii) any other financing which--
                                    ``(I) would (but for subparagraph 
                                (B)(ii)) be qualified nonrecourse 
                                financing,
                                    ``(II) is qualified publicly traded 
                                debt, and
                                    ``(III) is not borrowed by the 
                                taxpayer from a person described in 
                                subclause (I), (II), or (III) of 
                                section 49(a)(1)(D)(iv).''.
    (b) Qualified Publicly Traded Debt.--Paragraph (6) of section 
465(b) of such Code is amended by adding at the end the following new 
subparagraph:
                    ``(F) Qualified publicly traded debt.--For purposes 
                of subparagraph (A), the term `qualified publicly 
                traded debt' means any debt instrument which is readily 
                tradable on an established securities market. Such term 
                shall not include any debt instrument which has a yield 
                to maturity which equals or exceeds the limitation in 
                section 163(i)(1)(B).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to debt instruments issued after December 31, 2003.
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