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

July 21, 2005

Mr. SMITH (for himself, Mr. KOHL, Mr. FEINGOLD, Mrs. FEINSTEIN, and Ms. MURKOWSKI) 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. SHORT TITLE.

This Act may be cited as the `American Veterans Homeownership Act of 2005'.

SEC. 2. 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) in subparagraph (A), by striking `at some time before January 1, 1977', and

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

`(B) who applied for the financing before the date 25 years after the last date 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, 2005.

SEC. 3. 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) $215,000,000 for the State of Texas,

`(ii) $265,000,000 for the State of California,

`(iii) $100,000,000 for the State of Oregon,

`(iv) $100,000,000 for the State of Wisconsin, and

`(v) $100,000,000 for the State of Alaska.'.

(b) Effective Date- The amendment made by this section shall apply to bonds issued after December 31, 2005.

END