Home > 105th Congressional Bills > S. 603 (is) To require the Secretary of Agriculture to collect and disseminate ...S. 603 (is) To require the Secretary of Agriculture to collect and disseminate ...
108th CONGRESS
1st Session
S. 602
To reward the hard work and risk of individuals who choose to live in
and help preserve America's small, rural towns, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 12, 2003
Mr. Dorgan (for himself, Mr. Hagel, Mr. Johnson, Mr. Brownback, Mr.
Daschle, Mr. Burns, Mr. Dayton, Mr. Rockefeller, Mr. Conrad, Mr.
Coleman, Mr. Durbin, Ms. Landrieu, and Mr. Miller) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To reward the hard work and risk of individuals who choose to live in
and help preserve America's small, rural towns, 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; ETC.
(a) Short Title.--This Act may be cited as the ``New Homestead Act
of 2003''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--NEW HOMESTEAD OPPORTUNITIES
Sec. 101. Loans for leadership initiative.
Sec. 102. Credit for certain rural homebuyers.
Sec. 103. Capital loss deduction allowed with respect to sale or
exchange of principal residence in certain
rural areas.
Sec. 104. Individual homestead accounts.
TITLE II--INCENTIVES FOR MAIN STREET BUSINESSES
Sec. 201. Rural investment tax credit.
Sec. 202. Qualified rural small business investment credit.
Sec. 203. Accelerated depreciation for rural investment property.
TITLE III--NEW HOMESTEAD VENTURE CAPITAL FUND
Sec. 301. New homestead venture capital fund.
TITLE I--NEW HOMESTEAD OPPORTUNITIES
SEC. 101. LOANS FOR LEADERSHIP INITIATIVE.
(a) Definitions.--In this section:
(1) Degree.--The term ``degree'' means an associate's or
bachelor's degree awarded by an institution of higher
education.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(3) Qualifying county.--The term `qualifying county' means
any county which--
(A) is outside a metropolitan statistical area
(defined as such by the Office of Management and
Budget), and
(B) during the 20-year period ending with the
calendar year preceding the date of enactment of this
Act, has a net out-migration of inhabitants from the
county of at least 10 percent of the population of the
county at the beginning of such period.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(b) Program.--
(1) In general.--The Secretary shall carry out a program of
assuming the obligation to repay, pursuant to subsection (c), a
loan made, insured, or guaranteed under part B, D, or E of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et
seq., 20 U.S.C. 1087a et seq., and 20 U.S.C. 1087aa et seq.),
excluding loans made under section 428B of such Act or
comparable loans made under part D of such Act, for any
borrower who--
(A) completes a degree;
(B) resides in a qualifying county; and
(C) is employed in a qualifying county.
(2) Regulations.--The Secretary is authorized to prescribe
such regulations as may be necessary to carry out the
provisions of this section.
(c) Loan Repayment.--
(1) In general.--The Secretary shall assume the obligation
to repay, after each of the first 5 years of the residency and
employment described in subparagraphs (B) and (C) of subsection
(b)(1) that occur after the date of enactment of this section,
10 percent of the total amount of all loans made to a student
under the provisions of the Higher Education Act of 1965 as
described in subsection (b)(1), up to a maximum amount of
$2,000 each year.
(2) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a loan
made under part B, D, or E of title IV of the Higher Education
Act of 1965.
(3) Interest.--If a portion of a loan is repaid by the
Secretary under this section for any year, the proportionate
amount of interest on such loan which accrues for such year
shall be repaid by the Secretary so long as the total amount
repaid by the Secretary in any 1 year does not exceed $2,000.
(d) Repayment to Eligible Lenders.--The Secretary shall pay to each
eligible lender or holder for each fiscal year an amount equal to the
aggregate amount of loans which are subject to repayment pursuant to
this section for such year.
(e) Application for Repayment.--
(1) In general.--An eligible borrower desiring loan
repayment under this section shall submit a complete and
accurate application to the Secretary at such time, in such
manner, and containing such information as the Secretary may
require.
(2) Conditions.--An eligible borrower may apply for loan
repayment under this section after completing each year of
qualifying residency and employment. The eligible borrower
shall receive forbearance while engaged in qualifying residency
and employment unless the borrower is in deferment while so
engaged.
(f) Definition of Eligible Borrower.--In this section the term
``eligible borrower'' means any borrower who is not in default on any
of the borrower's student loans under part B, D, or E of title IV of
the Higher Education Act of 1965.
(g) Authorization of Appropriations.--
(1) Loan repayment.--There are authorized to be
appropriated to carry out this section such sums as may be
necessary.
(2) Perkins loan funds.--There are authorized to be
appropriated such sums as may be necessary for Federal capital
contributions to student loan funds established under part E of
title IV of the Higher Education Act of 1965.
(h) Repayment Excluded From Gross Income.--Section 108(f)(1)
(relating to student loans) is amended by inserting ``or pursuant to
section 101 of the New Homestead Act of 2003'' after ``employers''.
SEC. 102. CREDIT FOR CERTAIN RURAL HOMEBUYERS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) is amended by inserting
before section 26 the following:
``SEC. 25C. PURCHASE OF RESIDENCES BY CERTAIN RURAL HOMEBUYERS.
``(a) Allowance of Credit.--In the case of an individual who
purchases a qualified residence in a qualifying county during any
taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the
lesser of--
``(1) 10 percent of the purchase price of the residence, or
``(2) $5,000.
``(b) Limitations.--
``(1) Limitation based on amount of tax.--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 this
subpart (other than this section and section 23) and
section 27 for the taxable year.
``(2) Married individuals filing jointly.--In the case of a
husband and wife who file a joint return, the credit under this
section is allowable only if the residence is a qualified
residence with respect to both the husband and wife, and the
amount specified under subsection (a)(2) shall apply to the
joint return.
``(3) Married individuals filing separately.--In the case
of a married individual filing a separate return, subsection
(a)(2) shall be applied by substituting `$2,500' for `$5,000'.
``(4) Other taxpayers.--If 2 or more individuals who are
not married purchase a qualified residence, the amount of the
credit allowed under subsection (a) shall be allocated among
such individuals in such manner as the Secretary may prescribe,
except that the total amount of the credits allowed to all such
individuals shall not exceed $5,000.
``(c) Definitions.--For purposes of this section--
``(1) Qualified residence.--The term `qualified residence'
has the same meaning as when used in section 163(h).
``(2) Qualifying county.--The term `qualifying county'
means any county which--
``(A) is outside a metropolitan statistical area
(defined as such by the Office of Management and
Budget), and
``(B) during the 20-year period ending with the
calendar year preceding the date of the enactment of
this section, has a net out-migration of inhabitants
from the county of at least 10 percent of the
population of the county at the beginning of such
period.
``(3) Purchase and purchase price.--The terms `purchase'
and `purchase price' have the meanings provided by section
1400C(e).
``(d) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) for any taxable year exceeds the limitation imposed by
subsection (b)(1) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section and
section 23), such excess shall be carried to the succeeding taxable
year and added to the credit allowable under subsection (a) for such
taxable year.
``(e) Reporting.--If the Secretary requires information reporting
under section 6045 by a person described in subsection (e)(2) thereof
to verify the eligibility of taxpayers for the credit allowable by this
section, the exception provided by section 6045(e)(5) shall not apply.
``(f) Recapture of Credit in Case of Certain Sales.--
``(1) In general.--Except as provided in paragraph (5), if
the taxpayer disposes of a qualified residence with respect to
the purchase of which a credit was allowed under subsection (a)
at any time within 5 years after the date the taxpayer acquired
the property, then the tax imposed under this chapter for the
taxable year in which the disposition occurs is increased by
the credit recapture amount.
``(2) Credit recapture amount.--For purposes of paragraph
(1), the credit recapture amount is an amount equal to the sum
of--
``(A) the applicable recapture percentage of the
amount of the credit allowed to the taxpayer under this
section, plus
``(B) interest at the overpayment rate established
under section 6621 on the amount determined under
subparagraph (A) for each prior taxable year for the
period beginning on the due date for filing the return
for the prior taxable year involved.
No deduction shall be allowed under this chapter for interest
described in subparagraph (B).
``(3) Applicable recapture percentage.--
``(A) In general.--For purposes of this subsection,
the applicable recapture percentage shall be determined
from the following table:
The applicable
recapture
``If the sale occurs in:
percentage is:
Year 1............................... 100
Year 2............................... 80
Year 3............................... 60
Year 4............................... 40
Year 5............................... 20
Years 6 and thereafter............... 0.
``(B) Years.--For purposes of subparagraph (A),
year 1 shall begin on the first day of the taxable year
in which the purchase of the qualified residence
described in subsection (a) occurs.
``(4) No credits against tax.--Any increase in tax under
this subsection shall not be treated as a tax imposed by this
chapter for purposes of determining the amount of any credit
under this chapter or for purposes of section 55.
``(5) Death of owner; casualty loss; involuntary
conversion; etc.--The provisions of paragraph (1) do not apply
to--
``(A) a disposition of a qualified residence made
on account of the death of any individual having a
legal or equitable interest therein occurring during
the 5-year period to which reference is made under
paragraph (1),
``(B) a disposition of the old qualified residence
if it is substantially or completely destroyed by a
casualty described in section 165(c)(3) or compulsorily
or involuntarily converted (within the meaning of
section 1033(a)), or
``(C) a disposition pursuant to a settlement in a
divorce or legal separation proceeding where the
qualified residence is sold or the other spouse retains
such residence.
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section with respect to the purchase of any
residence, the basis of such residence shall be reduced by the amount
of the credit so allowed.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016 (relating to general
rule for adjustments to basis) is amended by striking ``and''
at the end of paragraph (27), by striking the period at the end
of paragraph (28) and inserting ``, and'', and by adding at the
end the following:
Other Popular 105th Congressional Bills Documents:
|
| GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information. |
 |