[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1165 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1165
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax to holders of bonds issued to finance land and water
reclamation of abandoned mine land areas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 2005
Mr. Kanjorski (for himself, Mr. Murtha, Mr. Holden, Mr. Udall of
Colorado, Mrs. Capito, Mr. Gonzalez, and Mr. Ney) 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 allow a credit against
income tax to holders of bonds issued to finance land and water
reclamation of abandoned mine land areas.
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 ``Abandoned Mine Land Area
Redevelopment Act of 2005''.
SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ABANDONED MINE LAND AREA
REDEVELOPMENT BONDS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 30B. CREDIT TO HOLDERS OF QUALIFIED ABANDONED MINE LAND AREA
REDEVELOPMENT BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified abandoned mine land area redevelopment bond on a credit
allowance date of such bond which occurs during the taxable year, there
shall be allowed as a credit against the tax imposed by this chapter
for such taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to credit allowance dates
during such year on which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified abandoned mine land area redevelopment bond is
25 percent of the annual credit determined with respect to such
bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified abandoned mine land area redevelopment
bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is the
rate equal to an average market yield (as of the day before the
date of issuance of the issue) on outstanding long-term
corporate debt obligations (determined under regulations
prescribed by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed.
``(c) Qualified Abandoned Mine Land Area Redevelopment Bond.--For
purposes of this section--
``(1) In general.--The term `qualified abandoned mine land
area redevelopment bond' means any bond issued as part of an
issue if--
``(A) the issuer is an approved special purpose
entity,
``(B) all of the net proceeds of the issue are
deposited into either--
``(i) an approved segregated program fund,
or
``(ii) a sinking fund for payment of
principal on the bonds at maturity,
``(C) the issuer designates such bond for purposes
of this section, and
``(D) the term of each bond which is part of such
issue does not exceed 30 years.
Not more than \1/6\ of the net proceeds of an issue may be
deposited into a sinking fund referred to in subparagraph
(B)(ii).
``(2) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds designated by an
approved special purpose entity shall not exceed the portion of
the national volume cap allocated to that entity by the
Administrator of the Environmental Protection Agency.
``(3) National volume cap.--The national volume cap is
$20,000,000,000. The Administrator of the Environmental
Protection Agency shall allocate such amount among the approved
special purpose entities, except that not less than
$2,000,000,000 of such amount shall be allocated to an entity
whose comprehensive plan only covers abandoned mine land areas
containing anthracite coal.
``(4) Approved special purpose entity.--The term `approved
special purpose entity' means a State or local governmental
entity, or an entity described in section 501(c) and exempt
from tax under section 501(a), if--
``(A) such entity is established and operated
exclusively to carry out qualified purposes,
``(B) such entity has a comprehensive plan to
restore and redevelop abandoned mine land areas, and
``(C) such entity and plan are approved by the
Administrator of the Environmental Protection Agency.
``(5) Approved segregated program fund.--The term `approved
segregated program fund' means any segregated fund the amounts
in which may be used only for qualified purposes, but only if
such fund has safeguards approved by such Administrator to
assure that such amounts are only used for such purposes.
``(d) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under part
IV of subchapter A (other than this section and subpart
C thereof, relating to refundable credits).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) for any taxable year exceeds the
limitation imposed by paragraph (1) for such taxable year, the
excess shall be carried to the succeeding taxable year and
added to the amount allowable as a credit under subsection (a)
for such succeeding taxable year.
``(e) Other Definitions.--For purposes of this section--
``(1) Abandoned mine land areas.--The term `abandoned mine
land areas' means lands and water eligible pursuant to section
404 of the Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1234) for expenditures from the Abandoned Mine
Reclamation Fund under title IV of such Act (30 U.S.C. 1231 et
seq.).
``(2) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified abandoned mine land area
redevelopment bond--
``(A) the purchase, restoration, and redevelopment
of abandoned mine land areas,
``(B) the cleanup of waterways and their
tributaries, both surface and subsurface, on abandoned
mine land areas from acid mine drainage and other
pollution,
``(C) the provision of financial and technical
assistance for infrastructure construction and
upgrading water and sewer systems on abandoned mine
land areas,
``(D) research and development relating to
abandoned mine land areas,
``(E) other environmental and economic development
purposes relating to abandoned mine land areas, and
``(F) such other purposes as are set forth in the
comprehensive plan prepared by the issuer and approved
by the Administrator of the Environmental Protection
Agency.
``(3) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(4) Bond.--The term `bond' includes any obligation.
``(f) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (d)) and the amount so
included shall be treated as interest income.
``(g) Bonds Held by Regulated Investment Companies.--If any
qualified abandoned mine land area redevelopment bond is held by a
regulated investment company, the credit determined under subsection
(a) shall be allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(h) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified abandoned mine land
area redevelopment bond and the entitlement to the credit under
this section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not to
the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified abandoned mine land area redevelopment
bond as if it were a stripped bond and to the credit under this
section as if it were a stripped coupon.
``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a
taxpayer by reason of holding a qualified abandoned mine land area
redevelopment bond on a credit allowance date shall be treated as if it
were a payment of estimated tax made by the taxpayer on such date.
``(j) Credit May Be Transferred.--Nothing in any law or rule of law
shall be construed to limit the transferability of the credit allowed
by this section through sale and repurchase agreements.
``(k) Reporting.--The issuer of qualified abandoned mine land area
redevelopment bonds shall submit reports similar to the reports
required under section 149(e).
``(l) Termination.--This section shall not apply to any bond issued
more than 10 years after the date that the first qualified abandoned
mine land area redevelopment bond is issued.''.
(b) Reporting.--Subsection (d) of section 6049 of such Code
(relating to returns regarding payments of interest) is amended by
adding at the end the following new paragraph:
``(8) Reporting of credit on qualified abandoned mine land
area redevelopment bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 30B(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 30B(e)(3)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary shall
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 30B. Credit to holders of qualified abandoned mine land area
redevelopment bonds.''.
(d) Deadline for Regulations.--The Secretary of the Treasury shall
prescribe the regulations required by section 6049(d)(8) of the
Internal Revenue Code of 1986 (as added by this section) not later than
120 days after the date of the enactment of this Act.
(e) Approval of Bonds, Etc., by Administrator of the Environmental
Protection Agency.--The Administrator of the Environmental Protection
Agency shall act on any request for an approval required by section 30B
of the Internal Revenue Code of 1986 (as added by this section) not
later than 60 days after the date such request is submitted to such
Administrator.
(f) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2005.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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