S 250 IS1S
(Star Print)
107th CONGRESS
1st Session
S. 250
To amend the Internal Revenue Code of 1986 to allow a credit to
holders of qualified bonds issued by Amtrak, and for other purposes.
IN THE SENATE OF THE UNITED STATES
February 6, 2001
Mr. BIDEN (for himself, Mrs. HUTCHISON, Mr. LOTT, Mr. DASCHLE, Mr. KERRY, Mr.
BAUCUS, Mrs. BOXER, Mr. BREAUX, Mr. BURNS, Mr. BYRD, Mr. CARPER, Mr. CHAFEE, Mr.
CLELAND, Mrs. CLINTON, Mr. COCHRAN, Ms. COLLINS, Mr. CORZINE, Mr. DEWINE, Mr.
DODD, Mr. DORGAN, Mr. DURBIN, Mr. EDWARDS, Mr. FEINGOLD, Mrs. FEINSTEIN, Mr.
GRAHAM, Mr. HELMS, Mr. HOLLINGS, Mr. INOUYE, Mr. JEFFORDS, Mr. JOHNSON, Mr.
KENNEDY, Mr. KOHL, Ms. LANDRIEU, Mr. LEAHY, Mr. LEVIN, Mr. LIEBERMAN, Mrs.
LINCOLN, Ms. MIKULSKI, Mr. MILLER, Mrs. MURRAY, Mr. REID, Mr. ROCKEFELLER, Mr.
SANTORUM, Mr. SARBANES, Mr. SCHUMER, Ms. SNOWE, Mr. SPECTER, Ms. STABENOW, Mr.
TORRICELLI, Mr. WARNER, and Mr. WELLSTONE) 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 allow a credit to
holders of qualified bonds issued by Amtrak, 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; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE- This Act may be cited as the `High-Speed Rail Investment
Act of 2001'.
(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.
SEC. 2. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.
(a) IN GENERAL- Part IV of subchapter A of chapter 1 (relating to credits
against tax) is amended by adding at the end the following new subpart:
`Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak
Bonds
`Sec. 54. Credit to holders of qualified Amtrak bonds.
`SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.
`(a) ALLOWANCE OF CREDIT- In the case of a taxpayer who holds a qualified
Amtrak 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 an amount equal to the sum of the credits
determined under subsection (b) with respect to credit allowance dates during
such year on which the taxpayer holds such bond.
`(1) IN GENERAL- The amount of the credit determined under this
subsection with respect to any credit allowance date for a qualified Amtrak
bond is 25 percent of the annual credit determined with respect to such
bond.
`(2) ANNUAL CREDIT- The annual credit determined with respect to any
qualified Amtrak bond is the product of--
`(A) the applicable credit rate, multiplied by
`(B) the outstanding face amount of the bond.
`(3) APPLICABLE CREDIT RATE- For purposes of paragraph (2), the
applicable credit rate with respect to an issue is the rate equal to an
average market yield (as of the day before the date of sale of the issue) on
outstanding long-term corporate debt obligations (determined under
regulations prescribed by the Secretary).
`(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION- In the case of a bond
which is issued during the 3-month period ending on a credit allowance date,
the amount of the credit determined under this subsection with respect to
such credit allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month period during which
the bond is outstanding. A similar rule shall apply when the bond is
redeemed.
`(c) LIMITATION BASED ON AMOUNT OF TAX-
`(1) IN GENERAL- 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 part (other than this
subpart and subpart C).
`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under
subsection (a) exceeds the limitation imposed by paragraph (1) for such
taxable year, such excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a) for such taxable
year.
`(d) QUALIFIED AMTRAK BOND- For purposes of this part--
`(1) IN GENERAL- The term `qualified Amtrak bond' means any bond issued
as part of an issue if--
`(A) 95 percent or more of the proceeds of such issue are to be used
for any qualified project,
`(B) the bond is issued by the National Railroad Passenger
Corporation,
`(i) designates such bond for purposes of this section,
`(ii) certifies that it meets the State contribution requirement of
paragraph (3) with respect to such project and that it has received the
required State contribution payment before the issuance of such
bond,
`(iii) certifies that it has obtained the written approval of the
Secretary of Transportation for such project, including a finding by the
Inspector General of the Department of Transportation that there is a
reasonable likelihood that the proposed program will result in a
positive incremental financial contribution to the National Railroad
Passenger Corporation and
that the investment evaluation process includes a return on investment,
leveraging of funds (including State capital and operating contributions), cost
effectiveness, safety improvement, mobility improvement, and feasibility, and
`(iv) certifies that it has obtained written certification by the
Secretary, after consultation with the Secretary of Transportation,
that, in the case of a qualified project which results in passenger
trains operating at speeds greater than 79 miles per hour, the issuer
has entered into a written agreement with the rail carriers (as defined
in section 24102 of title 49, United States Code) the properties of
which are to be improved by such project as to the scope and estimated
cost of such project and the impact on freight capacity of such rail
carriers; Provided that the National Railroad Passenger Corporation
shall not exercise its rights under section 24308(a) of such title 49 to
resolve disputes with respect to such project or the cost of such
project,
`(D) the term of each bond which is part of such issue does not exceed
20 years,
`(E) the payment of principal with respect to such bond is the
obligation of the National Railroad Passenger Corporation (regardless of
the establishment of the trust account under subsection (j)), and
`(F) the issue meets the requirements of subsection (h).
`(2) TREATMENT OF CHANGES IN USE- For purposes of paragraph (1)(A), the
proceeds of an issue shall not be treated as used for a qualified project to
the extent that the issuer takes any action within its control which causes
such proceeds not to be used for a qualified project. The Secretary shall
prescribe regulations specifying remedial actions that may be taken
(including conditions to taking such remedial actions) to prevent an action
described in the preceding sentence from causing a bond to fail to be a
qualified Amtrak bond.
`(3) STATE CONTRIBUTION REQUIREMENT-
`(A) IN GENERAL- For purposes of paragraph (1)(C)(ii), the State
contribution requirement of this paragraph is met with respect to any
qualified project if the National Railroad Passenger Corporation has a
written binding commitment from 1 or more States to make matching
contributions not later than the date of issuance of the issue of not less
than 20 percent of the cost of the qualified project. State matching
contributions may include privately funded contributions.
`(B) USE OF STATE MATCHING CONTRIBUTIONS- The matching contributions
described in subparagraph (A) with respect to each qualified project shall
be used--
`(i) as necessary to redeem bonds which are a part of the issue with
respect to such project, and
`(ii) in the case of any remaining amount, at the election of the
National Railroad Passenger Corporation and the contributing
State--
`(I) to fund a qualified project,
`(II) to redeem other qualified Amtrak bonds, or
`(III) for the purposes of subclauses (I) and (II).
`(C) STATE CONTRIBUTION REQUIREMENT FOR CERTAIN QUALIFIED
PROJECTS-
`(i) IN GENERAL- Notwithstanding any other provision of law, with
respect to any qualified project on the high-speed rail corridors
designated under section 104(d)(2) of title 23, United States Code, the
State contribution requirement of this paragraph may include the value
of land to be contributed by a State for right-of-way and may be derived
by a State directly or indirectly from Federal funds, including
transfers from the Highway Trust Fund under section 9503.
`(ii) SPECIAL RULES REGARDING USE OF BOND PROCEEDS- Proceeds from
the issuance of bonds for such a qualified project may be used to the
extent necessary for the purpose of subparagraph (B)(i), and any such
proceeds deposited into the trust account required under subsection (j)
shall be deemed expenditures for the qualified project under subsection
(h).
`(D) STATE MATCHING CONTRIBUTIONS MAY NOT INCLUDE FEDERAL FUNDS-
Except as provided in subparagraph (C), for purposes of this paragraph,
State matching contributions shall not be derived, directly or indirectly,
from Federal funds, including any transfers from the Highway Trust Fund
under section 9503.
`(E) NO STATE CONTRIBUTION REQUIREMENT FOR CERTAIN QUALIFIED PROJECTS-
With respect to any qualified project described in subsection (e)(4), the
State contribution requirement of this paragraph is zero.
`(A) IN GENERAL- The term `qualified project' means--
`(i) the acquisition, financing, or refinancing of equipment,
rolling stock, and other capital improvements, including station
rehabilitation or construction, track or signal improvements, or the
elimination of grade crossings, for the northeast rail corridor between
Washington, D.C. and Boston, Massachusetts,
`(ii) the acquisition, financing, or refinancing of equipment,
rolling stock, and other capital improvements, including station
rehabilitation or construction, track or signal improvements, or the
elimination of
grade crossings, for the improvement of train speeds or safety (or both) on
the high-speed rail corridors designated under section 104(d)(2) of title 23,
United States Code, and
`(iii) the acquisition, financing, or refinancing of equipment,
rolling stock, and other capital improvements, including station
rehabilitation or construction, track or signal improvements, or the
elimination of grade crossings, for other intercity passenger rail
corridors for the purpose of increasing railroad speeds up to 90 miles
per hour.
`(B) REFINANCING RULES- For purposes of subparagraph (A), a
refinancing shall constitute a qualified project only if the indebtedness
being refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred by the National
Railroad Passenger Corporation--
`(i) after the date of the enactment of this section,
`(ii) for a term of not more than 3 years,
`(iii) to finance or acquire capital improvements described in
subparagraph (A), and
`(iv) in anticipation of being refinanced with proceeds of a
qualified Amtrak bond.
`(C) PRIOR ISSUANCE COSTS- For purposes of subparagraph (A), a
qualified project may include the costs a State incurs prior to the
issuance of the bonds to fulfill any statutory requirements directly
necessary for implementation of the project.
`(e) LIMITATIONS ON AMOUNT OF BONDS DESIGNATED-
`(1) IN GENERAL- There is a qualified Amtrak bond limitation for each
fiscal year. Such limitation is--
`(A) $1,200,000,000 for each of the fiscal years 2002 through 2011,
and
`(B) except as provided in paragraph (5), zero after fiscal year
2011.
`(2) BONDS FOR RAIL CORRIDORS- Not more than $3,000,000,000 of the
limitation under paragraph (1) may be designated for any 1 rail corridor
described in clause (i) or (ii) of subsection (d)(4)(A).
`(3) BONDS FOR OTHER PROJECTS- Not more than $100,000,000 of the
limitation under paragraph (1) for any fiscal year may be allocated to all
qualified projects described in subsection (d)(4)(A)(iii).
`(4) BONDS FOR ALASKA RAILROAD- The Secretary of Transportation may
allocate to the Alaska Railroad a portion of the qualified Amtrak limitation
for any fiscal year in order to allow the Alaska Railroad to issue bonds
which meet the requirements of this section for use in financing any project
described in subsection (d)(4)(A)(iii) (determined without regard to the
requirement of increasing railroad speeds). For purposes of this section,
the Alaska Railroad shall be treated in the same manner as the National
Railroad Passenger Corporation.
`(5) CARRYOVER OF UNUSED LIMITATION- If for any fiscal year--
`(A) the limitation amount under paragraph (1), exceeds
`(B) the amount of bonds issued during such year which are designated
under subsection (d)(1)(C)(i),
the limitation amount under paragraph (1) for the following fiscal year
(through fiscal year 2015) shall be increased by the amount of such
excess.
`(6) ADDITIONAL SELECTION CRITERIA- In selecting qualified projects for
allocation of the qualified Amtrak bond limitation under this subsection,
the Secretary of Transportation--
`(A) may give preference to any project with a State matching
contribution rate exceeding 20 percent, and
`(B) shall consider regional balance in infrastructure investment and
the national interest in ensuring the development of a nation-wide
high-speed rail transportation network.
`(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--
Such term includes the last day on which the bond is outstanding.
`(3) STATE- The term `State' means the several States and the District
of Columbia, and any subdivision thereof.
`(4) PROGRAM- The term `program' means 1 or more projects implemented
over 1 or more years to support the development of intercity passenger rail
corridors.
`(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) SPECIAL RULES RELATING TO ARBITRAGE-
`(1) IN GENERAL- Subject to paragraph (2), an issue shall be treated as
meeting the requirements of this subsection if as of the date of issuance,
the issuer reasonably expects--
`(A) to spend at least 95 percent of the proceeds of the issue for 1
or more qualified projects within the 5-year period beginning on such
date, and
`(B) to proceed with due diligence to complete such projects and to
spend the proceeds of the issue.
`(2) RULES REGARDING CONTINUING COMPLIANCE AFTER 5-YEAR DETERMINATION-
If at least 95 percent of the proceeds of the issue is not expended for 1 or
more qualified projects within the 5-year period beginning on the date of
issuance, an issue shall be treated as continuing to meet the requirements
of this subsection if either--
`(A) the issuer uses all unspent proceeds of the issue to redeem bonds
of the issue within 90 days after the end of such 5-year period,
or
`(B) the following requirements are met:
`(i) The issuer spends at least 75 percent of the proceeds of the
issue for 1 or more qualified projects within the 5-year period
beginning on the date of issuance.
`(ii) The issuer has proceeded with due diligence to spend the
proceeds of the issue within such 5-year period and continues to proceed
with due diligence to spend such proceeds.
`(iii) The issuer pays to the Federal Government any earnings on the
proceeds of the issue that accrue after the end of such 5-year
period.
`(I) at least 95 percent of the proceeds of the issue is expended
for 1 or more qualified projects within the 6-year period beginning on
the date of issuance, or
`(II) the issuer uses all unspent proceeds of the issue to redeem
bonds of the issue within 90 days after the end of such 6-year
period.
`(i) RECAPTURE OF PORTION OF CREDIT WHERE CESSATION OF COMPLIANCE-
`(1) IN GENERAL- If any bond which when issued purported to be a
qualified Amtrak bond ceases to be a qualified Amtrak bond, the issuer shall
pay to the United States (at the time required by the Secretary) an amount
equal to the sum of--
`(A) the aggregate of the credits allowable under this section with
respect to such bond (determined without regard to subsection (c)) for
taxable years ending during the calendar year in which such cessation
occurs and the 2 preceding calendar years, and
`(B) interest at the underpayment rate under section 6621 on the
amount determined under subparagraph (A) for each calendar year for the
period beginning on the first day of such calendar year.
`(2) FAILURE TO PAY- If the issuer fails to timely pay the amount
required by paragraph (1) with respect to such bond, the tax imposed by this
chapter on each holder of any such bond which is part of such issue shall be
increased (for the taxable year of the holder in which such cessation
occurs) by the aggregate decrease in the credits allowed under this section
to such holder for taxable years beginning in such 3 calendar years which
would have resulted solely from denying any credit under this section with
respect to such issue for such taxable years.
`(A) TAX BENEFIT RULE- The tax for the taxable year shall be increased
under paragraph (2) only with respect to credits allowed by reason of this
section which were used to reduce tax liability. In the case of credits
not so used to reduce tax liability, the carryforwards and carrybacks
under section 39 shall be appropriately adjusted.
`(B) NO CREDITS AGAINST TAX- Any increase in tax under paragraph (2)
shall not be treated as a tax imposed by this chapter for purposes of
determining--
`(i) the amount of any credit allowable under this part,
or
`(ii) the amount of the tax imposed by section 55.
`(j) USE OF TRUST ACCOUNT-
`(1) IN GENERAL- The amount of any matching contribution with respect to
a qualified project described in subsection (d)(3)(B)(i) or
(d)(3)(B)(ii)(II) and the temporary period investment earnings on proceeds
of the issue with respect to such project, and any earnings thereon, shall
be held in a trust account by a trustee independent of the National Railroad
Passenger Corporation to be used to the extent necessary to redeem bonds
which are part of such issue.
`(2) USE OF REMAINING FUNDS IN TRUST ACCOUNT- Upon the repayment of the
principal of all qualified Amtrak bonds issued under this section, any
remaining funds in the trust account described in paragraph (1) shall be
available--
`(A) to the trustee described in paragraph (1), to meet any remaining
obligations under any guaranteed investment contract used to secure
earnings sufficient to repay the principal of such bonds, and
`(B) to the issuer, for any qualified project.
`(k) 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
Amtrak 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) CREDITS MAY BE STRIPPED- Under regulations prescribed by the
Secretary--
`(A) IN GENERAL- There may be a separation (including at issuance) of
the ownership of a qualified Amtrak bond and the entitlement to the credit
under this section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to the person
who on the credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
`(B) CERTAIN RULES TO APPLY- In the case of a separation described in
subparagraph (A), the rules of section 1286 shall apply to the qualified
Amtrak bond as if it were a stripped bond and to the credit under this
section as if it were a stripped coupon.
`(4) 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 Amtrak 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.
`(5) CREDIT MAY BE TRANSFERRED- Nothing in any law or rule of law shall
be construed to limit the transferability of the credit allowed by this
section through sale and repurchase agreements.
`(6) REPORTING- Issuers of qualified Amtrak bonds shall submit reports
similar to the reports required under section 149(e).'.
(b) REPORTING- Subsection (d) of section 6049 (relating to returns
regarding payments of interest), as amended by section 505(d), is amended by
adding at the end the following new paragraph:
`(9) REPORTING OF CREDIT ON QUALIFIED AMTRAK 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.'.
(1) The table of subparts for part IV of subchapter A of chapter 1 is
amended by adding at the end the following new item:
`Subpart H. Nonrefundable Credit for Holders of Qualified Amtrak Bonds.'.
(2) Section 6401(b)(1) 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 September 30, 2001.
(e) MULTI-YEAR CAPITAL SPENDING PLAN AND OVERSIGHT-
(1) AMTRAK CAPITAL SPENDING PLAN-
(A) IN GENERAL- The National Railroad Passenger Corporation shall
annually submit to the President and Congress a multi-year capital
spending plan, as approved by the Board of Directors of the
Corporation.
(B) CONTENTS OF PLAN- Such plan shall identify the capital investment
needs of the Corporation over a period of not less than 5 years and the
funding sources available to finance such needs and shall prioritize such
needs according to corporate goals and strategies.
(C) INITIAL SUBMISSION DATE- The first plan shall be submitted before
the issuance of any qualified Amtrak bonds by the National Railroad
Passenger Corporation pursuant to section 54 of the Internal Revenue Code
of 1986 (as added by this section).
(2) OVERSIGHT OF AMTRAK TRUST ACCOUNT AND QUALIFIED PROJECTS-
(A) TRUST ACCOUNT OVERSIGHT- The Secretary of the Treasury shall
annually report to Congress as to whether the amount deposited in the
trust account established by the National Railroad Passenger Corporation
under section 54(j) of such Code (as so added) is sufficient to fully
repay at maturity the principal of any outstanding qualified Amtrak bonds
issued pursuant to section 54 of such Code (as so added), together with
amounts expected to be deposited
into such account, as certified by the National Railroad Passenger
Corporation in accordance with procedures prescribed by the Secretary of the
Treasury.
(B) PROJECT OVERSIGHT- The National Railroad Passenger Corporation
shall contract for an annual independent assessment of the costs and
benefits of the qualified projects financed by such qualified Amtrak
bonds, including an assessment of the investment evaluation process of the
Corporation. The annual assessment shall be included in the plan submitted
under paragraph (1).
(C) OVERSIGHT FUNDING- Not more than 0.5 percent of the amounts made
available through the issuance of qualified Amtrak bonds by the National
Railroad Passenger Corporation pursuant to section 54 of such Code (as so
added) may be used by the National Railroad Passenger Corporation for
assessments described in subparagraph (B).
(f) PROTECTION OF HIGHWAY TRUST FUND-
(1) CERTIFICATION BY THE SECRETARY OF THE TREASURY- The issuance of any
qualified Amtrak bonds by the National Railroad Passenger Corporation or the
Alaska Railroad pursuant to section 54 of the Internal Revenue Code of 1986
(as added by this section) is conditioned on certification by the Secretary
of the Treasury, after consultation with the Secretary of Transportation,
within 30 days of a request by the issuer, that with respect to funds of the
Highway Trust Fund described under paragraph (2), the issuer either--
(A) has not received such funds during fiscal years commencing with
fiscal year 2002 and ending before the fiscal year the bonds are issued,
or
(B) has repaid to the Highway Trust Fund any such funds which were
received during such fiscal years.
(2) APPLICABILITY- This subsection shall apply to funds received
directly, or indirectly from a State or local transit authority, from the
Highway Trust Fund established under section 9503 of the Internal Revenue
Code of 1986, except for funds authorized to be expended under section
9503(c) of such Code, as in effect on the date of the enactment of this
Act.
(3) NO RETROACTIVE EFFECT- Nothing in this subsection shall adversely
affect the entitlement of the holders of qualified Amtrak bonds to the tax
credit allowed pursuant to section 54 of the Internal Revenue Code of 1986
(as so added) or to repayment of principal upon maturity.
(g) EXEMPTION FROM TAXES FOR HIGH-SPEED RAIL LINES AND IMPROVEMENTS-
Notwithstanding any other provision of law, no rail carrier (as defined in
section 24102 of title 49, United States Code) shall be required to pay any
tax or fee imposed by the Internal Revenue Code of 1986 or by any State or
local government with respect to the acquisition, improvement, or ownership
of--
(1) personal or real property funded by the proceeds of qualified Amtrak
bonds (as defined in section 54(d) of the Internal Revenue Code of 1986 (as
added by this section) or any State or local bond (as defined in section
103(c)(1) of such Code), or revenues or income from such acquisition,
improvement, or ownership, or
(2) rail lines in high-speed rail corridors designated under section
104(d)(2) of title 23, United States Code, that are leased by the National
Railroad Passenger Corporation.
(h) ISSUANCE OF REGULATIONS- The Secretary of the Treasury shall issue
regulations required under section 54 of the Internal Revenue Code (as added
by this section) not later than 90 days after the date of the enactment of
this Act.
(i) ISSUANCE OF TAX-EXEMPT BONDS FOR RAIL PASSENGER PROJECTS-
(1) FUNDING STATE MATCH REQUIREMENT- Section 142(a) (relating to exempt
facility bond) is amended by striking `or' at the end of paragraph (11), by
striking the period at the end of paragraph (12) and inserting `, or', and
by adding at the end the following new paragraph:
`(13) the State contribution requirement for qualified projects under
section 54.'.
(2) REPEAL OF GOVERNMENTAL OWNERSHIP REQUIREMENT FOR MASS COMMUTING
FACILITIES- Section 142(b)(1)(A) (relating to certain facilities must be
governmentally owned) is amended by striking `(3),'.
(3) DEFINITION OF HIGH-SPEED INTERCITY RAIL FACILITIES- Section
142(i)(1) is amended by striking `in excess of 150 miles per hour' and
inserting `prescribed in section 104(d)(2) of title 23, United States
Code,'.
(4) EXEMPTION FROM VOLUME CAP- Subsection (g) of section 146 (relating
to exception for certain bonds) is amended by striking paragraph (4) and the
last sentence of such subsection and inserting the following new
paragraph:
`(4) any exempt facility bond issued as part of an issue described in
paragraph (3), (11), or (13) of section 142(a) (relating to mass commuting
facilities, high-speed intercity rail facilities, and State contribution
requirements under section 54).'.
(5) EFFECTIVE DATE- The amendments made by this subsection shall apply
to bonds issued after the date of enactment of this Act.
END