To amend the Internal Revenue Code of 1986 with respect to the eligibility of veterans for mortgage bond financing, and for other purposes.

March 26, 2001

Mr. KOHL introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 with respect to the eligibility of veterans for mortgage bond financing, 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. ALL VETERANS ELIGIBLE FOR STATE HOME LOAN PROGRAMS FUNDED BY QUALIFIED VETERANS' MORTGAGE BONDS.

(a) IN GENERAL- Section 143(l)(4) of the Internal Revenue Code of 1986 (defining qualified veteran) is amended--

(1) by striking `at some time before January 1, 1977' in subparagraph (A), and

(2) by striking subparagraph (B) and inserting the following:

`(B) who applied for the financing before the date 30 years after the last on which such veteran left active service.'.

(b) EFFECTIVE DATE- The amendments made by this section shall apply to financing provided and mortgage credit certificates issued after June 30, 2001.

SEC. 2. REVISION OF STATE VETERANS LIMIT.

(a) IN GENERAL- Subparagraph (B) of section 143(l)(3) of the Internal Revenue Code of 1986 (relating to volume limitation) is amended to read as follows:

`(B) STATE VETERANS LIMIT- A State veterans limit for any calendar year is the amount equal to--

`(i) $425,000,000 for the State of Texas,

`(ii) $537,000,000 for the State of California,

`(iii) $200,000,000 for the State of Oregon,

`(iv) $200,000,000 for the State of Wisconsin, and

`(v) $200,000,000 for the State of Alaska.'.

(b) EFFECTIVE DATE- The amendment made by this section shall apply to bonds issued after December 31, 2001.

SEC. 3. ELECTIVE CARRYFORWARD OF UNUSED LIMITATION.

(a) IN GENERAL- Section 143(l)(3) of the Internal Revenue Code of 1986 (relating to volume limitation) is amended by adding at the end the following:

`(D) ELECTIVE CARRYFORWARD OF UNUSED LIMITATION-

`(i) IN GENERAL- If--

`(I) a State veterans limit for any calendar year after 2000, exceeds

`(II) the aggregate amount of qualified veterans' mortgage bonds issued by such State,

such State may irrevocably elect to treat such excess as a carryforward for qualified veterans' mortgage bonds.

`(ii) USE OF CARRYFORWARD-

`(I) IN GENERAL- If a State elects a carryforward under clause (i), qualified veterans' mortgage bonds issued during the 3 calendar years following the calendar year in which the carryforward arose shall not be taken into account under subparagraph (A) to the extent the amount of such bonds does not exceed the amount of the carryforward so elected.

`(II) ORDER IN WHICH CARRYFORWARD USED- Carryforwards elected shall be used in the order of the calendar years in which such carryforwards arose.'.

(b) EFFECTIVE DATE- The amendment made by this section shall apply to bonds issued and carryforward elections made after December 31, 2001.

END