| Home > 106th Congressional Bills > S. 2580 (rs) To provide for the issuance of bonds to provide funding for the construction of schools of the Bureau of Indian Affairs of the Department of the Interior, and for other purposes. [Reported in Senate] ...
S. 2580 (rs) To provide for the issuance of bonds to provide funding for the construction of schools of the Bureau of Indian Affairs of the Department of the Interior, and for other purposes. [Reported in Senate] ...
108th CONGRESS 2d Session S. 2580 To amend the Internal Revenue Code of 1986 to provide an income tax credit to holders of bonds financing new communications technologies, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES June 24, 2004 Mrs. Clinton introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide an income tax credit to holders of bonds financing new communications technologies, and for other purposes. 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 ``Technology Bond Initiative of 2004''. SEC. 2. FINDINGS Congress finds the following: (1) Access to high-speed Internet is as important to 21st Century businesses as access to the railroads and interstate highways was to businesses of the last century. (2) Up to one-third of the United States population lacks access to high-speed Internet. (3) Companies without access to high-speed Internet are unable to meet their market potential, just as a community cannot prosper if it doesn't have high quality roads and bridges. (4) Technology bonds would provide incentives to State and local governments to partner with the private sector to expand broadband deployment in their communities, especially underserved urban and rural areas. SEC. 3. CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS. (a) In General.--Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to credits against tax) is amended by adding at the end the following new subpart: ``Subpart H--Nonrefundable Credit for Holders of Qualified Technology Bonds ``Sec. 54. Credit to holders of qualified technology bonds. ``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS. ``(a) Allowance of Credit.--In the case of a taxpayer who holds a qualified technology 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 the amount determined under subsection (b). ``(b) Amount of Credit.-- ``(1) In general.--The amount of the credit determined under this subsection with respect to any qualified technology bond is the amount equal to the product of-- ``(A) the credit rate determined by the Secretary under paragraph (2) for the month in which such bond was issued, multiplied by ``(B) the face amount of the bond held by the taxpayer on the credit allowance date. ``(2) Determination.--During each calendar month, the Secretary shall determine a credit rate which shall apply to bonds issued during the following calendar month. The credit rate for any month is the percentage which the Secretary estimates will permit the issuance of qualified technology bonds without discount and without interest cost to the issuer. ``(c) Limitation Based on Amount of Tax.--The credit allowed under subsection (a) for any taxable year shall not exceed the excess of-- ``(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over ``(2) the sum of the credits allowable under this part (other than this subpart and subpart C). ``(d) Qualified Technology Bond.--For purposes of this part-- ``(1) In general.--The term `qualified technology bond' means any bond issued as part of an issue if-- ``(A) 95 percent of more of the proceeds of such issue are to be used for any or a series of qualified projects, ``(B) the bond is issued by a State or local government within the jurisdiction of which such project is located, ``(C) the issuer designates such bond for purposes of this section, ``(D) certifies that it has obtained the written approval of the Secretary of Commerce for such project, and ``(E) the term of each bond which is part of such issue does not exceed 15 years. ``(2) Qualified project.-- ``(A) In general.--The term `qualified project' means a project-- ``(i) to expand broadband telecommunications services in an area within the jurisdiction of a State or local government, ``(ii) which is nominated by such State or local government for a designation as a qualified project, and ``(iii) which the Secretary of Commerce, after consultation with the Secretary of Housing and Urban Development designates as a qualified project or a series of qualified projects. ``(B) Designation preferences.--With respect to designations under this section, preferences shall be given to-- ``(i) nominations of projects involving underserved urban or rural areas lacking access to high-speed Internet connections, and ``(ii) nominations reflecting partnerships and comprehensive planning between State and local governments and the private sector. ``(e) Limitation on Amount of Bonds Designated.-- ``(1) National limitation.--There is a national technology bond limitation for each calendar year. Such limitation is $100,000,000 for 2005, 2006, 2007, 2008, and 2009, and, except as provided in paragraph (4), zero thereafter. ``(2) Allocation of limitation.--The national technology bond limitation for a calendar year shall be allocated by the Secretary among the qualified projects designated for such year. ``(3) Designation subject to limitation amount.--The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (d)(1) with respect to any qualified project shall not exceed the limitation amount allocated to such project under paragraph (2) for such calendar year. ``(4) Carryover of unused limitation.--If for any calendar year-- ``(A) the national technology limitation amount, exceeds ``(B) the amount of bonds issued during such year which are designated under subsection (d)(1) with respect to qualified projects, the national technology limitation amount for the following calendar year shall be increased by the amount of such excess. ``(f) Other Definitions.--For purposes of this subpart-- ``(1) Bond.--The term `bond' includes any obligation. ``(2) Credit allowance date.--The term `credit allowance date' means, with respect to any issue, the last day of the 1- year period beginning on the date of issuance of such issue and the last day of each successive 1-year period thereafter. ``(3) State.--The term `State' means the several States and the District of Columbia. ``(g) 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 (c)) and the amount so included shall be treated as interest income. ``(h) Other Special Rules.-- ``(1) Partnership; s corporation; and other pass-thru entities.--Under regulations prescribed by the Secretary, in the case of a partnership, trust, S corporation, or other pass- thru entity, rules similar to the rules of section 41(g) shall apply with respect to the credit allowable under subsection (a). ``(2) Bonds held by regulated investment companies.--If any qualified technology 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. ``(3) 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 technology 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. ``(4) Reporting.--Issuers of qualified technology bonds shall submit reports similar to the reports required under section 149(e).''. (b) Reporting.--Subsection (d) of section 6049 of the Internal Revenue Code of 1986 (relating to returns regarding payments of interest) is amended by adding at the end the following new paragraph: ``(8) Reporting of credit on qualified technology bonds.-- ``(A) In general.--For purposes of subsection (a), the term `interest' includes amounts includible in gross income under section 54(g) and such amounts shall be treated as paid on the credit allowance date (as defined in section 54(f)(2)). ``(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 may 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) Clerical Amendments.-- (1) The table of subparts for 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 item: ``Subpart H. Nonrefundable Credit for Holders of Qualified Technology Bonds.''. (2) Section 6401(b)(1) of such Code is amended by striking ``and G'' and inserting ``G, and H''. (d) Effective Date.--The amendments made by this section shall apply to obligations issued after December 31, 2004. <all>
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