To amend the Internal Revenue Code of 1986 to permit interest on Federally guaranteed water, wastewater, and essential community facilities loans to be tax exempt.

Amends the Internal Revenue Code to exempt from tax interest on federally-guaranteed bonds for the financing of water, wastewater, and essential community facilities.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2378 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2378

   To amend the Internal Revenue Code of 1986 to permit interest on 
    Federally guaranteed water, wastewater, and essential community 
                   facilities loans to be tax exempt.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 2005

  Mr. Lewis of Kentucky (for himself and Mr. Boucher) 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 permit interest on 
    Federally guaranteed water, wastewater, and essential community 
                   facilities loans to be tax exempt.

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

SECTION 1. TAX-EXEMPT INTEREST ON FEDERALLY GUARANTEED WATER, 
              WASTEWATER, AND FEDERALLY GUARANTEED ESSENTIAL COMMUNITY 
              FACILITIES LOANS.

    (a) In General.--Section 149(b)(3)(A) of the Internal Revenue Code 
1986 (relating to certain insurance programs) is amended by striking 
``or'' at the end of clause (ii), by striking period at the end of 
clause (iii) and inserting ``, or'', and by adding at the end the 
following new clause:
                            ``(iv) any guarantee by the Secretary of 
                        Agriculture pursuant to section 306(a)(1) of 
                        the Consolidated Farm and Rural Development Act 
                        (7 U.S.C. 1926(a)(1)) to finance water, 
                        wastewater, and essential community 
                        facilities.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
                                 <all>